Project Original s1salu

65
Organisation Study Caress Beauty Care Pvt.Ltd CHAPTER 1 INTRODUCTION Page 1

Transcript of Project Original s1salu

Page 1: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

CHAPTER 1

INTRODUCTION

ABSTRACT

Page 1

Page 2: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Organisation study is identification of the working of a company. For the purpose of organisation study I selected the company Caress Beauty Care Pvt. Limited Chennai. This is a company in the Fast Moving Consumer Goods sector. It has been into the FMCG sector for the last 12 years. So a project in this organisation provides a clear understanding about the processing of sector to an extent.

In this project I cover the working of different departments in the organisation. Their independent and interdependent working contributes success to the growth and development of the company. Caress Beauty Care is a dynamic group company that manufactures high quality range of hair and skin care products for Hindustan Unilever Limited, one of the leading players in this sector.

The key strengths of this industry are transparency, quick responses and flexibility in operations. This project was an opportunity for understanding and experiencing an organisation and the trends in the market situation of a firm.

INTRODUCTION

Page 2

Page 3: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Meaning and definition of an organisation

According to Stephen P. Robbins, an organisation is “a consciously coordinated social unit,

composed of two or more people, which functions on a relatively continuous basis to achieve a

common goal or a set of goals”.

An organisation is a group of people who work together. A company, corporation, firm,

enterprise, or association, or part thereof, whether incorporated or not, public or private, that has

its own functions and administration are examples for business organisations.

Basically, an organisation is a group of people intentionally organized to accomplish an overall,

common goal or set of goals. Business organisations can range in size from two people to tens of

thousands.

There are several important aspects to consider about the goal of the business organisation.

These features are explicit (deliberate and recognized) or implicit (operating unrecognized,

"behind the scenes"). Ideally, these features are carefully considered and established, usually

during the strategic planning process.

Elements of an organisation

An organisation got both external as well as internal elements. External elements consist of the

business environment, technology, demographics, competitors, customers, suppliers, market

trends, economics, and regulations. The internal elements are core goals and values, people and

skills, business process, systems, strategy, culture and structure.

Elements of organisation

Page 3

Page 4: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Fig. 1.1 Elements of an organisation

Processes that Are Aligned With Achieving the Goals of an Organisation

Organisations have major subsystems, such as departments, programs, divisions, teams, etc.

Each of these subsystems has a way of doing things to, along with other sub systems; achieve the

overall goals of the organisation. Often, these systems and processes are defined by plans,

policies and procedures.

How you interpret each of the above major parts of an organisation depends very much on your

values and your nature. People can view organisations as machines, organisms, families, groups,

etc.

Organisation as a System

Page 4

Page 5: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

It helps to think of organisations are systems. Simply put, a system is an organized collection of

parts that are highly integrated in order to accomplish an overall goal. The system has various

inputs which are processed to produce certain outputs, which together, accomplish the overall

goal desired by the organisation. There is ongoing feedback among these various parts to ensure

they remain aligned to accomplish the overall goal of the organisation. There are several classes

of systems, ranging from very simple frameworks all the way to social systems, which are the

most complex. Organisations are, of course, social systems.

Systems have inputs, processes, outputs and outcomes. To explain, inputs to the system include

resources such as raw materials, money, technologies and people. These inputs go through a

process where they're aligned, moved along and carefully coordinated, ultimately to achieve the

goals set for the system. Outputs are tangible results produced by processes in the system, such

as products or services for consumers. Another kind of result is outcomes, or benefits for

consumers, e.g., jobs for workers, enhanced quality of life for customers, etc. Systems can be the

entire organisation, or its departments, groups, processes, etc.

Feedback comes from, e.g., employees who carry out processes in the organisation,

customers/clients using the products and services, eta. Feedback also comes from the larger

environment of the organisation, e.g., influences from government, society, economics, and

technologies.

Each organisation has numerous subsystems, as well. Each subsystem has its own boundaries of

sorts, and includes various inputs, processes, outputs and outcomes geared to accomplish an

overall goal for the subsystem. Common examples of subsystems are departments, programs,

projects, teams, processes to produce products or services, etc. Organisations are made up of

people who are also systems of systems of systems and on it goes. Subsystems are organized in a

hierarchy needed to accomplish the overall goal of the overall system.

The organisational system is defined by, e.g., its legal documents (articles of incorporation, by

laws, roles of officers, etc.), mission, goals and strategies, policies and procedures, operating

manuals, eta. The organisation is depicted by its organisational charts, job descriptions,

marketing materials, etc. The organisational system is also maintained or controlled by policies

and procedures, budgets, information management systems, quality management systems,

performance review systems, etc

Page 5

Page 6: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

CHAPTER 2

ORGANISATION AND

PROFILES

2.1 INDUSTRY PROFILE

Page 6

Page 7: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Fast Moving Consumer Goods industry, alternatively called as CPG (Consumer packaged goods)

industry primarily deals with the production, distribution and marketing of consumer packaged

goods. The Fast Moving Consumer Goods (FMCG) is those consumables which are normally

consumed by the consumers at a regular interval. Some of the prime activities of FMCG industry

are production, selling, marketing, financing, purchasing, etc. The industry also engaged in

operations, supply chain, production and general management

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the

economy. A well-established distribution network, intense competition between the organized

and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over

60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been

estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores

in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and

confectionery categories are estimated to be the fastest growing segments. Though the sector

witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then.

FMCG Category and Products

Category Products

Household Care Fabric wash (laundry soaps and synthetic detergents); household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish).

Food and Beverages Health beverages; soft drinks; staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates; ice cream; tea; coffee; soft drinks; processed fruits, vegetables; dairy products; bottled water; branded flour; branded rice; branded sugar; juices etc.

Personal Care Oral care, hair care, skin care, personal wash (soaps); cosmetics and toiletries; deodorants; perfumes; feminine hygiene; paper products

Growth Prospects

With the presence of 12.2% of the world population in the villages of India, the Indian rural

FMCG market is something no one can overlook. Increased focus on farm sector will boost rural

incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure

facilities will improve their supply chain. FMCG sector is also likely to benefit from growing

demand in the market. Because of the low per capita consumption for almost all the products in

the country, FMCG companies have immense possibilities for growth. And if the companies are

Page 7

Page 8: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

able to change the mindset of the consumers, i.e. if they are able to take the consumers to

branded products and offer new generation products, they would be able to generate higher

growth in the near future. It is expected that the rural income will rise in 2007, boosting

purchasing power in the countryside. However, the demand in urban areas would be the key

growth driver over the long term. Also, increase in the urban population, along with increase in

income levels and the availability of new categories, would help the urban areas maintain their

position in terms of consumption. At present, urban India accounts for 66% of total FMCG

consumption, with rural India accounting for the remaining 34%. However, rural India accounts

for more than 40% consumption in major FMCG categories such as personal care, fabric care,

and hot beverages. In urban areas, home and personal care category, including skin care,

household care and feminine hygiene, will keep growing at relatively attractive rates. Within the

foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth

categories in both rural and urban areas.

Indian Competitiveness and Comparison with the World Markets

The following factors make India a competitive player in FMCG sector.

Availability of Raw Materials

Because of the diverse agro-climatic conditions in India, there is a large raw material

base suitable for food processing industries. India is the largest producer of livestock,

milk, sugarcane, coconut, spices, and cashew and is the second largest producer of rice,

wheat and fruits and vegetables. India also produces caustic soda and soda ash, which are

required for the production of soap and detergents. The availability of these raw materials

gives India the location advantage.

Labor Cost Comparison

Low labor cost gives India a competitive advantage. India’s labor cost is amongst the

lowest in the world, after China and Indonesia. Low labor cost gives the advantage of low

cost of production. Many MNC’s have established their plants in India to outsource for

domestic and export markets.

Page 8

Page 9: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Fig. 2.1 Labor Cost Comparison

Presence across value chain

Indian Companies have their presence across the value chain of FMCG sector, right from

the supply of raw materials to packaged goods in the food processing sector. This brings

India a more cost competitive advantage. For example, Amul supplies milk as well as

dairy products like cheese, butter, etc.

Page 9

Page 10: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

2.2 COMPANY PROFILE

CLARION COSMETICS

When it comes to the manufacture of high quality personal care products and color cosmetics,

there is one name that leading organizations trust and rely on- Clarion Cosmetics.

Clarion is a leader in the manufacturing of cosmetics in India with an annual turn over of US$ 60

million. It all began as a small venture. Clarion the talcum manufacturing unit was established

in1993 by a professional team at Chennai in South India.

Over the past decade, the group has grown and diversified into manufacturing of various

cosmetic products. The range covers hair care, skin care, nail enamel, baby care and White

Petroleum Jelly Products. Apart from these, Clarion’s strategic diversification into the packaging

(tin containers) industry has helped widen the portfolio of products.

Behind Clarion’s rapidly growing basket of offerings are high quality standards and the

commitment to better the best. With a manufacturing facility for cosmetics with class100000

environment, Clarion has a fully equipped laboratory with advanced equipments, micro labs,

R&D labs and sachet, bottle, jar and tube filling lines conforming to GMP standard. Regular

quality and hygiene audits are conducted to maintain high standards of quality.

The group turnover in 1994 the first year of operations was about USD 220,000 and has since

grown to USD 44.5 Million in 2006. An ambitious expansion drive and diversification into new

growth areas will see Clarion cross USD 125 Million by the year 2010.

Built on a foundation of expertise

Clarion Cosmetics has been established by professionals with rich expertise in the manufacture

of cosmetics and personal care products. The Promoter’s in depth knowledge, wealth of

experience and deep routed commitment has seen Clarion grow form an enterprise with a single

manufacturing unit to a dynamic group with five state-of-the-art cosmetic manufacturing

facilities across India.

Clarion takes pride in the fact that group is the largest private label manufacturer of personal care

products in India besides being the largest manufacturer of Nail Enamel in South Asia.

Page 10

Page 11: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Handling Global Brands

With a vision to manufacture high quality products at zero environmental cost, Clarion’s

management work towards conforming to international standards in all products manufactured

and packaged. This delivery of superior quality products has won the trust of global giants like

Hindustan Unilever Limited, Sara Lee, Revlon, Yardley of London, Parfums Bleu, and Henkel

Spic India Ltd. Adherence to quality and high production standards has made them one of the

largest private label manufactures of India.

Clarion’s Clients

Hindustan Unilever

Godrej Sara Lee

Modi Revlon

Avon Beauty Products

Shahanaz Hussain Group

K K Modi Group

Parfums Bleu

ReAm GmbH

Appolo Hospital Groups

Group of companies

1. Caress Beauty Care

2. Lotus Beauty Care

3. Cool Cosmetics

4. Fiabila India

5. Nikita Metal Containers

CARESS BEAUTY CARE

The Clarion Group comprises of dynamic companies that manufacture high quality cosmetics

and personal care products by leveraging world class expertise at their state-of-the-art facilities.

Caress Beauty Care is another dynamic group company that manufactures high quality range of

hair and skin care products. Caress Beauty Care blends technological expertise with product

understanding to deliver high quality range of hair and skin care products to fulfill the stringent

requirement of brand owners like Hindustan Unilever Limited. A dynamic company, Caress is

equipped with ultra modern facilities and the latest machineries to meet the requirements of

India’s leading FMCG companies. Automation of operations such as cold cream jar capping

Page 11

Page 12: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

enables us to maximize productivity and maintain quality and produce 0.6 million units of cold

cream per day. Capacity expansion plans are on the anvil with a new, modern factory building

and enhanced facilities being part of the expansion drive.

Caress beauty Care covers an area of about 3400 square feet. The number of employees working

there is about 200 per day.

COMPANY STRENGTHS

Capability

Customers benefit from Caress Beauty Cares commercial and logistics expertise backed by

strong supply chain management capability.

Flexibility

With the flexibility to scale up operations, Caress delivers multi-product, multi-variant

manufacturing with a quick change over capability.

Cost and Variety

Caress Beauty Cares strong processes help achieve volume manufacturing at a competitive cost.

Customer Focus

Innovating through R & D to meet the current and expected needs of the customer is the priority

at Caress Beauty Care.

Quality

A strong culture of compliance is visible at all levels. Continuous training and technology up

gradation programs supported by independent audit systems results in continuous process and

product improvements.

Caress is committed to product safety and quality evident through the implementation of GMP &

HACCP. Multilevel quality assurance processes and total productive maintenance (TPM) enable

100% first time acceptance.

Caress has the capability to manufacture products to meet BIS, EEC and CFTA norms.

Page 12

Page 13: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

PLANT CAPACITY

Shampoo – 18000 ton per year

Ponds Moisturizing Cold Cream – 1000 ton per year

SAFETY HEALTH ENVIRONMENT POLICY (SHE)

A focus on these three aspects forms the cornerstone of Caress’ path to success.

The organization promotes a culture of safety by ensuring the quality of its equipments and

facilities. More importantly, the health and competence of personnel is ensured through routine

medical check-ups for all the employees.

CORPORATE SOCIAL RESPONSIBILTY

Going Green

Caress Beauty Care believes in being responsible towards the environment and has made a heavy

investment of time and resources to protect the same. About 40% of the power used for the

manufacturing activities is generated using windmills.

Social Conscience

Other social activities include weekend classes organized by executive level employees for the

students in the vicinity of manufacturing centers. During calamities the company volunteers to

help villages surrounding the factory. Distribution of saris and dress materials to destitute people

in the area is an ongoing activity.

LOTUS BEAUTY CARE

Lotus Beauty Care products is Clarion’s state of the art cosmetics manufacturing facility in

Haridwar (Uttarakhand).

In a smooth and seamless expansion, the annual installed capacity of this facility was recently

increased from 6000MT in 2004 to 25000MT in 2007. The enhanced volume meets the exclusive

demand of Hindustan Unilever Limited and was achieved without any interruption in ongoing

production activities.

The capacity is dedicated to Hindustan Unilever Limited and produces shampoos and Lakme

Lever’s premium range of hair-care and skin care products. Ponds and pears range of face

Page 13

Page 14: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

washes, Skin and Pore Care products, high end shampoos like Instant Bounce, Snap Shine and

color cosmetics like Perfecting Liquid Foundation and Souffle, are manufactured here.

Lotus is equipped with high speed packaging lines and handles varied packaging formats such as

sachets, tubes, plastic bottles and glass bottles in pack sizes ranging from 3.5ml to 400ml. Lotus

infrastructure is vast and this is being augmented continuously to maintain the standards on par

with contemporary international norms.

COOL COSMETICS

Cool Cosmetics manufactures Vaseline white Petroleum Jelly for Hindustan Unilever Limited.

The company has achieved amazing productivity and operating efficiency standards starting

from 50000 pieces per day in 2002 to 1.4 million pieces per day in 2008. Continuous plant level

R&D and automation have contributed to this record being achieved.

FIABILA INDIA

Fiabila India is a joint venture of Clarion Cosmetics set up by leveraging the expertise and

technical know-how of Fiabila France. A fast growing group company, Fiabila India

manufactures a wide range of Nail Care products including Base, Gel, Nail Enamel, Colour

Solution and Nail Care Products. Fiabila India’s bulk manufacturing capabilities for base and

shades, meets the requirements of leading names like Hindustan Lever Ltd, Avon Beauty

Products Pvt.Ltd, Oriflame, Modicare, Color bar, Revlon, Gala Of London, Amway, Biotique

and other brands.

Fiabila India’s state of art analytical laboratory enables it to monitor quality through stringent

test at various levels. The facilities are geared to offer range of more than 100000 shades of nail

polish and related products. It is the second largest manufacturer of nail polish and related

products. Fiabila has the distinction of producing patented formulations and environment

friendly products.

CLARION FOODS

Clarion, a leader in the manufacture of cosmetics, extended its capabilities to other segments.

The fact that Clarion entered into the food segment shows its strength in the safety and hygiene

aspects of manufacturing.

Using state-of- the art manufacturing facilities, Clarion foods manufactures squash, a fruit

flavored beverage for a leading Indian FMCG company. The unit has an installed annual

capacity of 8000 MT. It is equipped with best in class equipment for manufacturing, bottle

Page 14

Page 15: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

washing, filling, and capping. The unit has also an ETP with RO filtration designed keeping in

mind present and future needs.

NIKITA METAL CONTAINERS

The Clarion Group tryst with packaging goes back to the time of inception when it set up a unit

in Gujarat for Aluminium Collapsible Tubes. The success of the unit gave the confidence and

expertise.

Nikita Containers forerunners in custom tin packaging and decorative tin containers. Quality,

Delivery, Service is their motto. Devising new ideas to solve your specialty needs gives

satisfaction and pride to the company. They have state-of-the-art machinery and to offer custom

tin packaging and decorative designer. They have high-speed printing and assembly lines apart

from solid fabrication infrastructure.

In a short span of 12 years, Nikita containers have built a reputation for excellent quality, lead

time, delivery and customized solutions in tin packaging and that, too, at best available prices

Nikita was founded in 1995- promoted by Mr. K N Lakshmanan, a science graduate and Mr.

Yogesh Korani, a chartered accountant. The combined industrial experience of the promoters

and their unflinching commitment to quality has given Nikita the cutting edge over competition

in terms of Customer trust. A valued possession that drives Nikita to greater heights year after

year.

In the intermediary years the packaging industry witnessed a total revolution where traditional

packaging material gave way to plastics. Steadfast in their belief that the characteristics of tin-

especially in areas of perfume and flavor retention-will overcome temporary hiccups, Nikita

aggressively marketed the idea to customers and developed, over the years, a wide clientele with

varied end applications.

Today Nikita is on the threshold of a quantum leap both in technology and quantity. The new

state of the art factory near Chennai will, along with modernization of the existing facility at

Pondicherry which is set to get ISO certification, enhance Nikita’s capabilities in its ongoing

export initiative.

Page 15

Page 16: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

VISION

The vision of the company is to set new benchmarks in the manufacture of high quality

cosmetics and personal care products that will result in value for the customer.

MISSION

The mission of the company to deliver the benefits of innovation to the customer as a

manufacturer of high quality cosmetics products with a responsible approach to the environment.

MILESTONES

Year Achievements

1993 Clarion Cosmetics set up in a record 41 days(commercial production)

1994 Enter into tin packaging.

1996 Clarion achieves record production 5.08 million pieces/month.

1997 Caress Beauty Care set up to manufacture high quality shampoos and creams.

1999 Joint Venture established with Fiabila of France. Fiabila India is born.

2001 Cool cosmetics go on stream- Manufactures white petroleum jelly.

2003 Foray into retail- Franchise established for Lakme Lever’s Lakme beauty salons in

Chennai and Mumbai and Hindustan Unilever’s Ayush therapy centers in Chennai.

2004 Lotus Beauty Care commences production in Haridwar- group’s state of the art

cosmetics manufacturing facility.

2006 Caress touches the highest annual production of shampoo-13723 MT.

2007 New tin packaging unit near Chennai to go on stream.

2008 Lotus team has achieved a record of 512 tons than produced by any of the HUL 2p

factories in India.

2009 Lotus team has achieved the highest ever production that is 565 tons in stitch line.

PROMOTERS

Page 16

Page 17: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Caress Beauty Care is a privately - held company promoted by Mr. K N Lakshmanan, a science

graduate and Mr. Yogesh Korani, a chartered accountant. The combined industrial experience of

the promoters and their unflinching commitment to quality has given the company the cutting

edge over competition in terms of Customer trust.

TOP MANAGEMENT

The top management consists of Managing Director, Director and the Executive Directors.

Caress Beauty Cares current board of directors consist of

o K.N Lakshmanan

o Raji Lakshmanan

o Vaishali Korani

o Zaveerbeen Korani

The Board is ably assisted by a council of eminent professionals who provide guidance and

knowledge to the working directors as required.

2.3 PRODUCT PROFILE

Product/ services

Caress Beauty Care Private Limited manufactures high quality range of hair and skin care

products. Caress Beauty Care’s ultra modern facilities house the latest machinery that enables it

to fulfill the stringent requirement of brand owners like Hindustan Unilever Limited. These are

the products that are manufactured by the Caress Beauty Care.

1. Shampoo

Sunsilk Shampoo (7ml, 4ml)

Sunsilk Pink Shampoo (40ml)

Clinic Plus Protein Shampoo (3.5ml, 4.5ml, 9ml)

Lux Shampoo (8ml, 7ml, 4ml)

2. Ponds Moisturizing Cold Cream (PMCC)- 8gm

Page 17

Page 18: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

CHAPTER 3

ANALYSIS OF

ORGANISATION STRUCTURE

AND FUNCTIONS

Page 18

Page 19: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

3.1 PLANNING IN THE COMPANY

Planning is a process for accomplishing purpose. It is blue print of business growth and a road

map of development. It helps in deciding objectives both in quantitative and qualitative terms. It

is setting of goals on the basis of objectives and keeping in view the resources.

In Caress planning is done weekly. The factory receives the plan according to the capacity of the

factory. On every Tuesday HUL sent a plan to the store head and if he approves the plan, it was

given to the factory on every Thursday. Based on this plan they manufacture the products.

3.2 IMPORTANCE OF ORGANISATIONAL STRUCTURE

The importance of organizational structure is to provide order and accountability to an

organization. By creating specific job categories for specific task the efficiency of the Labor

needed to accomplish the task increases. It would not make sense to have your Accountants

repairing pumps at your facility while your Maintenance staff shipped out product. Dividing the

labor by function then adding employees to the organization by matching their skills with the

function needed is the way an organization can experience the highest level of efficiency.

Page 19

Page 20: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

ORGANISATIONAL STRUCTURE

`

Page 20

Page 21: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

3.3 FUNCTIONAL AREA ANALYSIS

According to the good vision of the Company and the modern managerial systems that the

Company follows in its organisational structure, it clarifies its all main departments and all the

sub-departments. The Company states the aims, objectives, activities, functions, and

responsibilities of each department so as to ensure clear and non-overlapping of the duties of the

various departments. This structure will positively be reflected in organisation and development

of work within the same department besides the development of work processes within the

Company in general.

The Caress Beauty Care is made up of ten functional Departments; each headed by a Manager

and segmented into Divisions.

The various departments of Caress are:

Production

Marketing

Finance

Human Resource

Purchase

Stores

Manufacturing

Safety

Maintenance

Logistics

The Procedures and Processes of each department will be explained in detail below

Page 21

Page 22: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

PRODUCTION DEPARTMENT

The Caress Beauty Care produces the following products:

1. Shampoo

Sunsilk Shampoo (7ml, 4ml)

Sunsilk Pink Shampoo (40ml)

Clinic Plus Protein Shampoo (3.5ml, 4.5ml, 9ml)

Lux Shampoo (8ml, 7ml, 4ml)

2. Ponds Moisturizing Cold Cream (PMCC)- 8gm

Production Planning

On every Thursday the production head receives plan from HUL. Before 3.30 pm he should

prepare a plan for production and he should conduct meeting with all the department heads. The

production head shows the plan for production to all department heads during the time of the

meeting and asked them to co-operate for executing the plan. This plan of production is issued to

all the departments.

Machineries

The machines that are used for production process can be classified as:

1. Machine for producing 5 tons of shampoo

2. Machine for producing 3 tons of shampoo

3. Machine for producing Ponds Moisturizing Cold Cream (PMCC)

There are two side pots for three and five tone capacity machines. There is one main mixture for

both each. There are six storage tanks. Out of those tanks, first three tanks is for storing

chemicals. Remaining three tanks is used for storing demineralised water (DM water). The

fourth tank is used to store 80 degree Celsius water and the fifth and sixth tank is used to store 65

degree Celsius. For PMCC two side pots and one main mixture is used for production process.

Source of Machineries

The machineries that are used in the factory are imported from other countries like China and

Honkong and they use the Indian made machineries also.

Page 22

Page 23: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Raw Materials

The important raw materials needed for manufacturing the shampoos are Texapone, Galaxy 100,

DC1788, HL999, Jasmeio perfume, perfume 6971 etc and for manufacturing PMCC are LLP,

Cresmer 72 SS, Lanolin, Trend Perfume, GMS etc. All this raw materials are purchased within

India and some from other countries like Thailand also.

Production Process

For the production of shampoo, the raw materials accepted by the lab after testing are used.

Batch wise production is taking place in the factory. As per the product changes, the time taking

for each batch will also change. The manufacturing department keeps the details of each batch.

After producing shampoo a sample given to lab for testing. The produced shampoo will be stored

in the storage tank till the completion of the testing.

If the sample is accepted by the lab, then it will be moved to the Form Fill Sealing Machine (FFS

Machine). The shampoo came from the manufacturing department was kept in a portion called

‘hopper’ from which it pumps the shampoo to the nozzles (total there are 8 nozzles in one

machine) and through this nozzles shampoo is filled in the packets. It is sealed and cut them

separately and then the packing takes place.

Totally there are 13 FFS machines. Out of that one to five is for 3.5ml and six to thirteen

machines are for 9ml.

Production Process Flow Chart

Page 23

Page 24: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Fig. 3.2 Production Process Flow Chart

Manpower Required

There are 13 machines used for the production purpose and the manpower required per shift is 26

workers for packing and re-working.

MARKETING DEPARTMENT

Page 24

Stores (Raw Materials)

Manufacturing Department

Bulk

Storage Tank

Production Machine(FFS)

Finished Goods Store

Despatch

Page 25: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Since Caress Beauty Care manufactures products for Hindustan Unilever Ltd they do not need to

market their products directly to the customers. It will be done by the HUL itself.

FINANCE DEPARTMENT

Finance Department is the vital department of the company. The Department is headed by the

financial controller. He is vested with the authority of governing the financial requirements of all

the departments of the organization. The top management of every department has to report

indirectly to the financial controller. He is followed by General Manager- Finance department,

Senior Manager Accounts and Senior Manager Treasury, Manager, Assistant Manager and

Assistants. They are responsible for arranging finance and monitor the Cash flow and allocation

of fund to each department of the company and controlling overall finance of the company.

Functions of Finance Department

The main functions of finance department are

Raise necessary fund for the company business operation

Arrange finance for each department

Prepare budget for every year

Take control measures in order to check accounts

Prepare Balance Sheet of the company for every financial year.

Finance Department shall be in charge of all matters relating to the service of loans or the

discharge of guarantees.

Ensure that proper financial rules are framed for the guidance of other departments and

that suitable accounts, including commercial accounts, whatever necessary, are

maintained by other departments and establishments subordinate to them.

Structure of Finance Department

The finance department of Caress Beauty Care is headed by the General Manager who controls

Accounts and Treasury Departments. The GM finance is followed by the Senior Manager

Accounts and Senior Manager Treasury. They are followed by Manager, Assistant Manager and

Assistants.

The structure of finance department of Caress is as follows:

Page 25

Page 26: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Fig 3.3 Structure of finance department

HUMAN RESOURCE DEPARTMENT

Page 26

General Manager Finance

Senior Manager Accounts Senior Manager Treasury

Manager

Assistant Manager

Assistant's

Page 27: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

At Caress Beauty Care, they believe that human resources are the most important valuable assets.

They ensure that the work environment provides ideal support for nurturing and grooming talent.

For this they have human resource policies that provide:

Equal opportunity without discrimination on grounds of gender, religion, etc.

Ample growth opportunities and rewards for performers.

Lateral repositioning opportunities for personnel requiring additional support.

Personal attention to individual problems.

An informal and inclusive atmosphere.

Continuous training to achieve individual and organizational goals.

A strong welfare policy and infrastructure.

Number of Workers

Cares Beauty Care consists of 90 regular employees, 90 temporary employees working in a shift

basis and 12 securities.

Factory Working Time

First Shift -6 am to 2 pm

Second Shift -2 pm to 10 pm

Third Shift -10 pm to 6 am

The office time is from 9.00 am to 5.30 pm.

Records and Registers

The factory is maintaining the following records and registers, according to the factory act:

According to the Factory Act:

The License Renewal

Plan Approval

Half-Yearly and Annual Returns

Other Records are:

Accident Records

Fine Records

Advance Register

Attendance Register

Leave Register

Page 27

Page 28: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Pay for the Workers

For the office staff the salary will be given at last day of every month and for the contract labors

the pay will be paid before seventh of every month. They also get the PF and ESI. The company

pay directly to the contract labors and the contractors receives a service charge. The contractors

enter with in a contract and it is signed once in a year. Every 3 months, free medical checkup is

available for all the employees. The records and registers under the factory act will be verified

monthly to make the renewals at the right time.

PURCHASE DEPARTMENT

Raw Materials

Page 28

Page 29: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

The company always store raw materials required for 15 days. Most of these raw materials are

purchased from other places like Mumbai etc and sometimes it is imported from countries like

Thailand also.

Process in Purchase of Raw Materials

Plan Receiving

The factory receives the plan according to the capacity of the factory. On every Tuesday

HUL sent a plan to the store head and if he approves the plan, it was given to the factory

on every Thursday.

Purchase of Materials

There is a procedure followed by the company to purchase the raw materials. The store in

charge daily updates the inventory and according to the next third week plan the store in

charge forward the demand to the Department Head. Department Head forwards the

requirement of raw materials to the Head Office and the Head Office forwards the

purchase order to the respective suppliers and organize materials to reach the factory on

time.

STORES DEPARTMENT

Workings

Page 29

Page 30: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Stores department always plan their works for the third week also. That means the store

supervisor plans for third week’s raw material and packing material.

Working for New Product

The company manufactures the product on the basis of the order given by HUL. Minimum 3

weeks are given by the HUL for manufacturing the new product because the store department

wants to collect the raw material for the product and they want to get the approval from the

Control Drug Inspector (CDI) for storing the drugs that is used in manufacturing the products.

Production Capacity Of The Machines

8 ml Shampoo – 45 tons/day

3.5 ml Shampoo – 10 to 12 tons/day

Stores

Factory is maintaining three types of stores. They are

1. Raw Material Store

2. Packing Material Store

3. Finished Goods Stores

Raw material store

Raw material store is able to store one month stock inside the store safely. The materials stores in

a raw material store have a minimum expiry date of six months.

Packing Material Store

Packing store has a capacity of storing 3 days carton and 15 days laminate inside the store.

Finished Goods Store

Finished goods store has a capacity to store three days production. All these finished goods are

stored compulsory for 48 hours for clearing the lab test.

Types of materials

There are three types of materials available in stores.

a) Raw Materials

Page 30

Page 31: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

b) Packing Materials

c) Finished Goods

Issuing Of Materials

Raw materials are issued to the store as per the demand of the manufacturing department.

Packing materials are issued according to the order which is given to the packing materials

stores by the production department.

Finished Goods are issued according to the plan which is given from the HUL. The factory

stores department gives the next day despatch available to HUL. According to that they issue the

despatch plan to the factory.

Registers and Records

The store has to maintain the following registers.

Manual

i. Stock register –FIFO

ii. Indent

iii. Weighing register

iv. Washing register

System

i. Receipt Note

ii. Purchase booking

iii. Stock maintenance

iv. Cartons and laminate rejection

Receiving of Raw Materials

At the time of receiving the goods which is sent by the suppliers an inspection notice is given to

the lab for checking the quality of the product. There are four types of stickers are used by the

store department. They are

a. Inspection pending

b. Accepted

c. Rejected

d. Hold do not use

Page 31

Page 32: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Receiving Process

Fig 3.4 Receiving Process

Expiry Information

Once in a month the lab department gives an expiry date details of the raw materials to the store-

in-charge. The store-in-charge works based on this information and three months before expiry

date the goods are sent to the needy ones.

Page 32

Materials get inside

Receipt note and inspection notice is issued

Inspection pending sticker is pasted for the remaining uninspected ones

If the inspection is

result ok 'Accepted’ sticker is

pasted and the material is ready to use

If the goods are in

controversy then ‘hold do

not use’ sticker is used and till up to

the controversy is over, goods are not used.

Page 33: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

QUALITY CONTROL

Caress Beauty Care was driven by high standards and they are producing superior quality

products that are very safe and trusted by end-users. They have a clearly laid out quality policy

Page 33

Page 34: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

that conforms to global standards of major players like Unilever, Sara Lee, Yardley of London,

Revlon, Oriflame, etc.

Highlights of Caress Beauty Care’s Quality Policy

Product quality that conforms to BIS.

Capability to meet EEC and CFTA standards.

Quality assurance system that guarantees 100% adherence to protocols, accommodates

continuous improvements, and emphasizes defect prevention and reduction of waste.

Multi-level quality assurance processes and Total Productive Maintanence (TPM)

enables 100% First Time Acceptance (FTA).

Routine Hazard Analysis Critical Control Points (HACCP) to eliminate the hazards of

physical, chemical and microbiological contamination.

Systematic and periodic audits and checks.

S.H.E POLICY

Caress Beauty Care is dedicated to the safety, health and welfare of its employees, stakeholders

and the community at large. The organization promotes a culture of safety by ensuring the

quality of its equipment, facilities and importantly, the health and competence of personnel.

The company believes in being responsible towards the environment and has made heavy

investment of time and resources in ensuring that it upkeeps the environment and does not in any

way contribute to the degradation of nature. The Group has an active afforestation program and

plants at least 300 saplings every year at its manufacturing facilities. Their Safety standards are

periodically audited to conform with British Safety Council’s Five Star Audit Management

System.

Page 34

Page 35: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Fig 3.5 Quality Control

Packing Material

The testing of packing material contains laminate testing and box testing.

Laminate testing contains the testing of the product cover.

Box testing is done by applying pressure on box used for packing.

Raw Materials

Once the raw material reaches the factory, an inspection notice is given to the lab for checking

the quality of the product. There are four types of stickers are used by store department such as

Inspection Pending

Accepted

Rejected

Hold do not use

Finished Goods

Line quality – It checks the color, print, batch number, manufacturing date, barcode etc of the

product.

Finished product quality –It checks certain features of the product such as smell, consistency,

pH of the product.

Page 35

Quality Control

Packing Material Raw Material Finished Goods

Line Quality

Finished Product Quality

Micro Testing

Page 36: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Micro Testing – It test the presence of micro organisms. The product should be free from micro

organisms.

Lab

All specifications of the product are given by Hindustan Unilever Limited. Testing is done for

both raw materials and for finished goods. Checking is done keep the products free from micro

organisms.

The things that are needed for proper checking are good water, good environment, good packing,

good personal hygiene, equipment design, and good raw material. By combining all these things

we get 100% micro free substances.

Rules followed by the lab

Disinfect the hands before entering the area for killing micros in hands. For disinfecting

hand 70% isopropyl alcohol and soap oil are using.

Raw materials and finished goods should not keep in the floor or close to the wall

directly, because the presence of moisture will help the micros to increase by 20%.

Page 36

Page 37: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

MANUFACTURING DEPARTMENT

The factory has the facility to manufacture the following products.

a) Shampoo

b) Ponds Cold Cream

Manufacturing Capacity

The machines have the following capacity to produce the shampoo and ponds cold cream.

Shampoo

There are two capacity machines are used. Each machine having two side pots, one mixture

machines and one storage tank. The two types capacity machines that are used for shampoo

production are

1) 5 tons manufacturing /batch

2) 3 tons manufacturing /batch

The time used for manufacturing 5 tons batch is about 2.45 hrs to 3hrs/batch and the time used

for manufacturing 3 tons batch is about 1.30 hrs to 2hrs/batch

Ponds Cold Cream

The machine capacity is to produce 1 tons per batch. Each batch consumes near 1 hr to 1.30 hrs.

Hierarchy

Fig 3.6 Hierarchy of Manufacturing Department

Page 37

Manufacturing In charge

Lab Chemist

Machine Operators

Page 38: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Manpower Required

The manufacturing department requires four workers are there to collect material from stores,

totally there are three chemists, one per shift and one in charge in general shift.

Process of New Batch

An official from HUL will come to the factory and then they start the new batch. There will be

six new batches and HUL takes the sample from six batches for their testing purpose and if the

product quality is good they give the approval within 10days.

Sanitation

Different products are manufacturing so after every change over these machines need to be

cleaned. If there is no change over sanitation is done once in a week. The sanitation is required

when the product is changed for instance that is from clinic plus to Sunsilk shampoo.

Difficulties

For manufacturing shampoo, hot water at 60 degree Celsius is needed. Sometimes it is very

difficult to maintain water at this temperature and this was the difficulty faced by the

manufacturing department. This is overcome by setting a timer. This timer will work according

to the sensor in the water heating tank.

Records and Registers

The manufacturing department maintains the following registers and records. They are:

Opening stock

Water stock

Batch record

Indent

Sanitation report

Accidents

Water splash – Hot water for manufacturing purpose is passing through the rubberized cotton

pipes and these pipes are tightened using single clip. But it is very dangerous and to avoid

accidents, where ever pipe connection is there, double clippings are used in that place.

Page 38

Page 39: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Using Hazardous Chemical – To avoid this type of accidents while dealing with this dangerous

chemicals the workers are use safety equipments like gloves, respiratory masks, helmets etc.

Audit

The manufacturing department in charge do an audit of the machines once in a week so that they

will give a report to the maintenance department and then if any machine parts need to be

replaced this will be done based on this report.

Achievements

The manufacturing department reduces a diesel cost during the time of PMCC manufacturing. So

that the cost more than a lakh per annum is saved.

Page 39

Page 40: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

SAFETY DEPARTMENT

As per the Indian Companies Act, the safety measures are there in the factory. The factory

manager, all the department heads and the entire security people in the factory constitute the

members of the safety department. There is an inward register which is kept by the security

officers and all the workers’ name is mentioned in it. If any accident occurs all the wokers

gathered at the safety point which is located in the factory entrance and this security people cross

check the name of the people with the register and this is to ensure safety of workers.

Safety Audit

A person will come from outside for audit that means for checking whether the factory should

have safety measures as per the rules and he will interview the safety department members and

these members are supposed to submit all the records regarding the safety measures in the

company to this person. If there any accidents occurred in the company, the details of that

accident and what measures are taken to prevent that accidents being happened again. All these

details should be maintained in those records.

MAINTENANCE DEPARTMENT

Maintenance department will take care of all the maintenance activities within the factory. If

there any problem with the machineries then it will looked up by this maintenance department

people. Some of the machineries that are used for the production purposes are imported from

other countries and if any problem with these machines occurs, these maintenance department

need to repair it. For this, the engineers will give special training to deal with this machine at the

time of Purchase.

LOGISTICS DEPARTMENT

Logistics department is related to the supply chain management. It deals with the movement ,

handling and stocking of goods. Sales forecasting is also done in this department. The target for

production is given based on the last year benchmark and planning team will plan and this plan is

given to the factory for production.

Page 40

Page 41: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

3.4 STAFFING

Recruitment Procedure

The recruitment procedure starts by giving resume by the applicant to the company. After

submitting the resume, HR manager will go through it and if satisfied they will send a call letter.

The applicant has to fill the application form given from the company. The applicant form

covers the details such as

Personal details

Education and training

Employment and attributes (experience)

Health and physical

General (hobbies, reference, social activities etc.)

After this interview will takes place and if the interview panel is satisfied they send one call

letter to the selected candidate and it include all the details regarding the salary. For temporary

appointment the procedure taking place is same but the format of application form is different.

Performance Appraisal

Yearly once the appraisal has been done on the performance of each employee and promotions

and increments are given on the basis of their performance. The increment will be decided by the

head of the HR department and this is done by using the Key Performance Information Report

(KPIR).

Job Training

On job training is providing in the company. In addition to this training programs such as Fire

and Safety Training, First Aid Training, Manufacturing techniques, sampling and testing etc.

3.5 BUDGETING

Budgeting is done both monthly and yearly. It is done by finance department. If the budget is

exceeding then review meetings are conducted for discussing about the exceeded budget and

actions will be taken for reducing the budget.

Page 41

Page 42: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

CHAPTER 4

SWOT ANALYSIS

Page 42

Page 43: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

4.1 SWOT ANALYSIS- INTRODUCTION

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats involved in a project or in a business venture. It involves specifying

the objective of the business venture or project and identifying the internal and external factors

that are favorable and unfavorable to achieving that objective.

A SWOT analysis must first start with defining a desired end state or objective. A SWOT

analysis may be incorporated into the strategic planning model. An example of a strategic

planning technique that incorporates an objective-driven SWOT analysis is Strategic Creative

Analysis (SCAN).

Strengths: attributes of the person or company that is helpful to achieving the

objective.

Weaknesses: attributes of the person or company that is harmful to achieving the

objective.

Opportunities: external conditions that are helpful to achieving the objective.

Threats: external conditions which could do damage to the objective.

Identification of SWOTs is essential because subsequent steps in the process of planning for

achievement of the selected objective may be derived from the SWOTs.

4.2 SWOT ANALYSIS OF CARESS BEAUTY CARE

Strengths

Caress Beauty Care’s ultra modern facilities and these latest machineries that they use

enable them to fulfill the stringent requirement of brand owners like Hindustan Unilever

Limited.

The organization promotes a culture of safety by ensuring the quality of its equipment,

facilities and importantly, the health and competence of personnel.

Quality assurance system that guarantees 100% adherence to protocols, accommodates

continuous improvements, and emphasizes defect prevention and reduction of waste.

Continuous training to achieve individual and organizational goals.

Weakness

Page 43

Page 44: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

Since Caress manufacture products only for HUL and they are the only one buyer of the

products.

Most of the customers do not know the fact that Clarion group is manufacturing these

goods for HUL.

There are no advertisements for the Caress Beauty Care products.

Opportunity

Usages of cosmetic products are increasing.

Market is moving towards quality and brand consciousness

Threat

Any downfall of HUL in the business, affects the firm.

New firms may do business with HUL.

Page 44

Page 45: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

CHAPTER 5

SUGGESTIONS AND

CONCLUSIONS

Page 45

Page 46: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

SUGGESTIONS AND CONCLUSIONS

5.1 Findings

The main findings of the study are

Caress Beauty Care manufactures products only for HUL.

The organisation chart of the company is functional.

Company follows strict quality policy.

Company conducts mock drill for employees.

Company is providing Personnel Protective Equipment (PPE) for ensuring the safety of

the employees.

Fire and safety training is not given to all employees.

5.2 Recommendations

Based on the study the following are the recommendations

Fire and safety training should be given to at least half of the employees.

Should market their products directly.

Proper advertisement should be given so that the customers should aware of the

company.

5.3 Conclusion

“The Organisation Study on Caress Beauty Care Pvt. Ltd.” was a general study regarding all

functions and aspects, giving more importance to its departments. It is found that the company

have a good working environment and cordial relationship is maintained between all departments

for the smooth functioning. They have achieved the enviable heights by their strong employer-

employee relationship, hard work and commitment of quality besides rendering quality services

at the right time to the clients. The study gave me an opportunity to experience, understand and

also to improve my practical knowledge about the internal functioning of an organization.

Caress Beauty Care Pvt Limited is one of the leading cosmetic manufacturing companies in the

respective field. They had established and is maintaining a system for monitoring and measuring

the process, product, activities and aspects. This will provide the information to confirm the

suitability, effectiveness of the system and efficiency of the resources. Management of Caress

Beauty Care utilizes this information to set objectives, targets and program for continual

improvement.

.

Page 46

Page 47: Project Original s1salu

Organisation Study Caress Beauty Care Pvt.Ltd

REFERENCES

Text Books

1. Chhabra T.N. (2007), “Principles and Practices of Management”, Dhanpat Rai & Co.

2. Koontz Harold, Wiehrich Heinz (2007), “Essentials of Management”, Seventh Edition,

An International Perspective.

3. Robbins P. Stephen, Judge A. Timothy and Sanghi Seema, (2008),“Organisational

Behavior”, Pearson Education.

4. Peter F Drucker (2007), “Management-Tasks,Responsibilities,Practices”; Allied

Publishers Pvt. Ltd.

Websites

1. www.clarionindia.com visited on 15/01/2009

2. www.nikitacontainers.com visited on 15/01/2009

3. http://managementhelp.org visited on 17/01/2009

4. http://wiki.answers.com visited on 17/01/2009

5. http://static.seekingalpha.com visited on 19/01/2009

6. http://indianeconomy.org visited on 21/01/2009

7. www.naukrihub.com/india/fmcg/scope visited on 24/01/2009

8. www.etstrategicmarketing.com visited on 02/01/2010

9. www.learnmanagement2.com visited on 02/01/2010

Page 47