1

CHAPTER I
INTRODUCTION
















2


1.1 INTRODUCTION

An organization is social arrangement which pursues collective goals, controls its own
performance, and has boundary separating it from its environment. Management is interested in
an organization mainly from an instrumental point of view. For a company, organization is an
end to achieve its stakeholders. Basically an organization in its simplest form is a person or
group of people intentionally organize to accomplish an overall. Common goal or seat of goals.
Business organization can range in size from one person to tens of thousands.
Organization study is the systematic study and careful application of knowledge about
how people as individuals and as groups act within organization. In any organization, managers
at all levels need to accurate and timely information for managerial decision making whether the
decisions made are at technical, tactical ,or strategic levels, good, accurate and timely
information always leads to a better decision.
Gathering of information is done through a sound and scientific research process .Each
year organizations spend enormous amounts of money for research and scientific research and
development in order to maintain their competitive edge .Accurate information obtained through
research leads to enormous benefits.
This study is conducted for the partial fulfillment of requirement for the DEGREE OF
MASTER OF BUSINESS ADMINISTRATION The organization study is conducted at The
Praga Marine PVT.LTD Aroor.










3


1.2 OBJECTIVES OF THE STUDY

The organizational study was carried out at TIERRA FOODS, ELAMANNOOR to achieve the
following specific objectives.
To understand the organizational framework and its functioning
To gain knowledge about different departments of the organization and the functions.
To study the interdependence of different department.
To make a SWOT analysis of the organization.
To understand the relationship between the employer and employee in the organization.
To get some practical experience from the field. by familiarizing the structure, systems,
procedures and functioning of an organization
To get touch with the industrial and organizational environment.
To understand the actual working conditions in the organization.
To find out various elements in manufacturing process.
To know the organizational structure.
To find out various departments in the organization
To study welfare measures of the company












4

1.3 SCOPE OF THE STUDY

The study aims at the overall organization structure. It helps to understand the manner in which
various tasks and activities are assigned to different people and department, the manner in which
separate activities are coordinated, the power, status and hierarchical relationship with in the
organization , the planned and formalized policies, procedures and controls, that guide the
activities and relationships and the flow of information and communication network.
























5


1.5 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research
problem. In it consists of various steps that are generally adopted by a researcher
in studying his research problem along with the logic behind them..
Methods of Data Collection
1.Collection of Primary Data 2. Collection of Secondary Data
Collection of primary Data. There are several methods of collecting the primary
data. Which are as follows:
Observation Method,Interview Method,Through Questionnaires
Through Schedules.
Collection of Secondary Data: Schedules
Qualitative: Semi-structured and structuredinterviews, focus
groups transcripts, field notes, observation records and other personal,
research-related documents.
From the above methods interview method, questionnaire method has been used in
this project for primary data collection and company reports,brochues






6



1.6 LIMITATIONS

Study was carried out over a short period of time.
Inter firm comparison wasnt possible because only one organization was
covered for study.
Available data was limited.























7







CHAPTER II
EXTERNAL ENVIRONMENT ANALYSIS



























8


2.1 Ship Manufacturing Industry




The ship building and repairing industry consists of establishments primarily engaged in building
and repairing ships, barges, and lighters, whether self-propelled or towed by other craft. This
industry also includes the conversion and alteration of ships and the manufacture of off-shore oil
and gas well drilling and production platforms The boat building and repair industry consists of
establishments primarily engaged in the building and repairing of craft such as fiberglass boats,
motor boats, kayaks, canoes, houseboats, and dinghies. Ship and boat building and repair
activities comprise some of the most hazardous work place operations. Hazards include exposure
to toxic substances, hazardous atmospheres, electrocution, falls, fires, and explosions.

According to employment data published by the Bureau of Labor Statistics (BLS), the average
total employment in U.S. private and public (Navy) shipyards for 2002 was 95,000. This total
reflects an increase of approximately 1% from the 2001 revised average total employment for the
shipbuilding and repairing industry. This is the first increase in the average total employment
since 1998. The 2002 employment level in the U.S. shipbuilding and repairing industry is down
44% from the 1982 level of 171,600 employees. BLS data show the total employment for the
boat building and repair industry to be 53,000 in 2002.










9

2.2 Global Scenario

As of December 31, 2002, ships on order or under construction in U.S. private shipyards totaled
39 naval (1,000 light displacement tons and larger) and 16 commercial vessels. In the present
marine industry Boat Manufacturing plays an important role. Regarding boat building, the
National Marine Manufacturers Association (NMMA), in their 2003 statistical abstract,
calculated total boat and water craft sales to be 1,276,800 units in 2003. This is an approximately
1% decrease from the 2002 figure of 1,289,300 units. These units include such diverse craft as
jet boats, inboard and outboard motor boats, canoes, sailboats, dories, skiffs, and kayaks.







2.3 Indian scenario


If we consider the Indian scenario of Boat Manufacturing industry we can see that there is high
growth in the present days. In our national industry the main players are Cochin shipyard,
Samudra industries, Praga Marine Pvt. Ltd. etc.. Marine industry is one of the major contributor
to our overall growth of the nation. So the importance of this industry is increasing day by day
because of this there are lots of such units are coming in to the industry. Praga Marine have
more than 20% share in the Indian industry and they had also acquired more than 30% of
another major player Samudra industries in kerala. This industry provides a large number of
employment for the people in our country. Praga marine is one of the major player in domestic
market they use modern technology in the production process. They also have a good
management team in the organization so there turnover is increasing every year.

10















CHAPTER III
INTERNAL ENVIRONMENT ANALYSIS














11







Company Profile


PRAGA MARINE PVT. LTD. AROOR


Company Name : PRAGA MARINE Private Limited

Type : Privately Held

Company Size : 51-150 employees

Website : http://www.pragamarine.in

Industry : Fibre Boat Manufacturing

Founded : 1945

Headquarters : Industrial Area, Aroor,
Alleppey District,
Kochi - 688 534,
Kerala, India
Specialties : Catamarans , Arrow boats




12











3.1 COMPANY PROFILE

13




3.1.1 History

Praga Marine Pvt Ltd is part of The Praga Group of Companies, consisting of :
Praga Industries, Praga Marine and Mdoplast, all closely held Private Limited Companies.
The parent Co., Praga Industries was founded by Mr. Josef Nejedly, a Czechoslovakian
expatriate, in 1944, to manufacture Buttons. The factory in Coimbatore was set up in 1945 and
the Company celebrated its Diamond Jubilee in 2005. Praga Marine also play an important role
in the boat manufacturing industry. It has achieved an un beatable growth due to this time.





3.1.2 Management




The Managing Director of the Company, Mr. L.R. Nejedly has over 45 years of Boat Building
experience having studied in UK in the field of Boat Building Technology and Yacht and
Boatyard Management Southampton. He has also studied Naval Architecture and Marine
Engineering. He is also the Chairman of the Indian Marine Federation.
In present management of Praga Marine consist of General Manager, Branch Managers,
Purchase Manager, Production Manager, Human Resource Manager, Finance Manager, Naval
Architect, Store Keeper, Supervisor.









14




3.2 Location

At Aroor, on the Cochin Alleppy National Highway and main Port Bachwater, 4 km from Port
by water & 6 km by road. Only 1 km from new Cochin/Trivandrum by-pass road. Can slip
vessels with draft up to 2.5m. Air Draft (height above water) limited by bridges to 6.5m.


3.3 BRANCHES & OFFICES
The company has its registered office and factory at Coimbatore, Thamilnadu. It has a branch
office at Aroor, Alappy, Kerala.



3.4 Competitors

When we consider the present Boat Manufacturing Industry we can see that there is high
competition is going on. So there are a large number of competitors for Praga Marine also some
of them are.
Samudra Pvt Ltd


Stingray Boat Manufactures


Matha Pvt Ltd

Bristual Boats


3.5 MILESTONES

The First Fibreglass Boats in India are made - In 1960.
The first 20m GRP Catamaran is delivered to the Kerala Department of Tourism
This is followed by four more 20m and two more 16m Catamarans In1989.
Construction of Aluminium boat is started with Australian collaboration In 2000
Indias first Live-Aboard Cruise vessel (largest GRP vessel built in Asia so far) delivered
In 2003
First Export order for Optimists, 23 nos to Libyan Olympic Committee In 2006.
Orders for 85 nos of International Enterprise sailing dinghies received from the Indian
Navy and NCC In 2010.
15


3.6 PRODUCT RANGE
All smaller GRP boats and all GRP moulding work is done at Coimbatore
where the climatic conditions are suitable and approved by the LRS, IRS and MMD.

1. Sailing Yachts and Dinghies. Three International Class Sailing Dinghies are built by the
Company under licence of the International Yacht Racing

Union, London. They are the only Company licensed in India. The sailing dinghies are, the
Enterprise, Cadet and Optimist. Over 1000 Nos of
Enterprise have been built over the past 30 years. All Together they build about 100 dinghies per
annum which are bought mostly by the Indian Navy, NCC Units, Sea Cadets and Tourism
Departments.
The boats are built to the highest International standards for Indian Yachtsmen.
Their abilities have been recognised world-wide and their dinghies have been used in the Asian
Games, Commonwealth Games and four World Championships.
They also build a small beach sailing Catamaran called the Go-Cat which has been a great
success for water sports at Tourist centres and Resorts.

2. Watersports: They make a wide range of boats and equipment for Water Sports, apart from
the Sailing Dinghies.
Rowing Boats of 8ft, llft & l3ft, Single & Double Kayaks, Windsurfers
Water Cycles -3wheel pedal cycles, Water Skis & tow ropes
Life-jackets, Pedal Boats 2 & 4 seaters


3. Catamarans: Their Catamarans are the largest GRP vessels currently built in India. The design
was commissioned from M/S DONTATE ASSOCIATES of the U.K. primarily as a
displacement tourist vessel & passenger ferry. The vessels are completed & launched at our
Aroor Yard. We have so far delivered Ten such vessels with another 16m Ferry under order.
Catamarans is the main product that that our company is developing. Because Paraga Marine
have the monopoly on this section.







16














ORGANIZATION STRUCTURE
17


MANAGING DIRECTOR
MD
CHIEF EXICUTIVE OFFICER
FINANCE DEPARTMENT
PURCHASE DEPARTMENT
HUMEN RESOURSE
DEPARTMENT
MARKETING DEPARTMENT
STORE & WAREHOUSING
DEPARMENT
FINANCE
MANAGER
CHIEF
ACCOUNTAN
T
ACCOUNT
CLERK
OPERATION DEPARTMENT
MARKETING
MANAGER
CHIEF MARKETING
OFFICER
MARKETING
SUPPERVISOR
HR MANAGER
HR RELATION
MANAGER
HR SUPPERVISOR
STORE MANAGER
STORE
SUPPERVISOR
STORE KEEPER
CHIEF ENGiENNER
ASST ENGENNER
WORK SUPPERVISOR
PURCHASE MANAGER
PURCHASE ACCOUNTANT
DEPARTMENT CLERK


18

















IV CHAPTER
FUNCTIONAL DEPARTMENTS


























19





LIST OF DEPARTMENTS

1.PRODUCTIONS DEPARTMENT

2..HUMAN RESOURCE DEPARTMENT

3.MARKETING DEPARTMENT

4.STORE DEPARTMENT

5.PURCHASE DEPARTMENT

6.FINANCE DEPARTMENT





























20












4.1 OPERATIONS DEPARTMENT
















4.1.1 DEPARTMENTAL STRUCTURE
21















































CHIEF ENGINEER
ASSISTANT ENGINEERS
WORK SUPPERVISORS
LOWRE WORKERS
22

4.1.2 PRODUCTION UNIT

The BackBone of the company is the Production department because it plays a vital role in the
overall working of the company. The department is directed by Chief engineer followed by Five
Assistant engineers and Work supervisors and Lower workers. The working of the department
starts from 9am to 5pm. All activities are controlled by the Chief Engineer. Any problem in this
department is reported to the head of department.


4.1.3 MAIN FUNCTIONS OF THE DEPARTMENT

Collecting the production order from top level managers.

Making detailed reports on the requirements for the project.

Deciding the production procedures for the project.

Dividing the main project into simple work units.

Reporting to the Store manager and Purchase manager about the needs of materials.


4.1.4 PRODUCTION PROCESS

1. Preparation of Mold

2. Arrangement of the Mold

3. Putting the Wax on the inner size of the Mold

4. Painting the base or outer color in it

5. Then start plastering the Fiber Mats one by one

6. Repeat this process for making the required thickness for the boat

7. When it over keep it for one week for making it set

8. Take of the boat from the Mold for Further works

9. Making other fittings.

10. Admit the boat for certifications.
23


11. Delivery of boat.

4.1.5RAW MATERIALS REQUIRED



Iron

Fiber Mat

Rexene

Wood

Gel coat

Tegument

Chemicals

Rubber Mat

Window Glass

Boat Engine




















24






















4.2 HUMAN RESOURCE DEPARTMENT
























25



4.2.1 HR DEPARTMENT STRUCTURE
HUMAN RESOURCE MANAGER
PRODUCTION ASSISTANT
HR RELATION MANAGER

HR SUPERVISOR
26




4.2.2 HUMAN RESOURCE UNIT


We all know Human Resource is one of the important base for every business.
Without HR business cannot work so it have that much important in every business. This
department is headed by the person known as HR Manager. He control all functions in this
department.




4.2.3 FUNCTION OF HR DEPARTMENT


1. Estimate the amount of HR required for the business.

2. Conducting interviews for appointing lower workers.

3. Recruiting and Training workers.

4. Maintaining good relationship with workers.

5. To claim salary, wages and allowances

6. To ensure statutory compliance of Provident Fund, Employee State Insurance.




4.2.4 TYPES OF EMPLOYEES


Managerial level

Permanent workers

Temporary workers

Contract workers

Part time workers


27

4.2.5 PROTECTION MESURES GIVEN



In this business the use of highly powered chemicals are large. So the need of safety measures is
also high. For that the company provides the follows



Leather Jackets

Mask

Glows

Cap

Hand wash facility with soap solution and tissue paper
First aid facilities
Fire extinguisher




4.2.6 FACILITIES


Half an hour lunch break, from 12:30 - 1pm and 15 minutes break during morning
and evening working hours.
All public holidays are considered as leave for the company.
Casual leaves are provided.
First aid facilities are there.
Toilet facilities are there.
Normally more than 13 casual holidays in an year.




28

4.2.7 ADDITIONAL BENEFITS


Provident Fund

Company provides 12% additional benefits to its employs as PF. This help the employees to
generate high amount of benefit for future.

Festival Allowances

Company also provides additional benefits to its employees as festival allowances. Like Onam ,
Christmas, etc.. Company provide rupees 800 for permanent employees and rupees 500 for
others.


EMPLOYEE STATE INSURANCE
Employees with a salary below 10000 are eligible for ESI 1.75%, is the contribution of
employees and 4.75% is employers contribution. Employee who is above this limit will get
medical allowance of Rs1000/year.



4.2.8 RECRUITMENT ,TRAINING AND DEVELOPMENT


The company normally conduct direct recruitment. The company also select workers on contract
basis. They also provide training for the new employees. Mainly through one way such as on the
job training.


















29





















4.3 MARKETING DEPARTMENT

























30

4.3.1 DEPARMENTAL STRUCTURE













































MANAGING DIRECTOR
MARKETING MANAGER
CHIEF MARKETING MANAGER
MARKETING SUPERVISOR


31


4.3.2 MARKETING UNIT

The main function or duty of marketing department is to create new customers and also to
maintain the existing customers by providing good quality product and accurate information
about the product. And also make the promotional techniques for the product.



4.3.3 FUNCTIONS OF MARKETING DEPARTMENT



Identifying the customers

Conducting the promotional activities.

Deciding price and discount revisions as appropriate from time to time.

Conducting regular customer surveys.

To meet the demand of the consumers

Successful distribution of the products



4.3.4 MARKETING DEPARTMENT GOALS


1.Develops production and sales strategy

2.Prepares market information enabling top management to make decision

3.Assist the promotional activities

4.Finding markets for the products prepares information for the marketing department regarding
sale and customer preference.




32







4.3.5 Sales promotion techniques
Development follows the various sales promotion techniques such as direct mail
campaigns, website, sales persons and also market research. But the most important techniques
are medical exhibitions and conferences.


4.3.6 Main competitors

At present the main competitor of Praga Marine is Samudhra The other competitors are
Notical Lines, valet, Bristual, Matha, etc.


4.3.7 Market Share

If we consider our domestic market Praga Marine have more than 30% percentage of
share. Because this company have the monopoly in some type of boats.












33














4.4 STORE DEPARTMENT





34

4.4.1 STORE DEPARMENT STRUCUTURE


STORE MANAGER
WORK SUPERVISIOR
STORE SUPERVISOR
STORE KEEPER
35


4.4.2 STORE DEPARTMENT

Sound stores management is a key to the running of every profitable and efficient organization.
The policy of the store is to store and preserve materials in good condition by maintaining
optimum level of inventory, issue the same to the user and manage the finished goods till it is
dispatched to the customer.


4.4.3 Functions
Receipt and storage of materials
Issue of materials
Preservation
Receipt and sale of scrap
Packaging of finished goods

4.4.4 Steps or Process of Store


1. Receives Order or Intent from the Production department.

2. Submitting this order to the Purchase department.

3. In third step store manager receives goods with the bill.

4. Record it in the Good Receipt Note.

5. Then issue it to the Production department for that purpose the store manager use
One record known as Stores Issue Note.

4.4.4.1 GATE PASS

Gate Pass is one of the main document which used by the Store department. It used to record
the transferring of goods into the factory and going out of the factory. There are mainly two type
of Gate Pass; such as Returnable (this type is used to record those item which is taken to the
outside of the factory for further work and need to return back to the factory ). Non-Returnable
(this is mainly used to record such item which taken out to the factory and that items are not need
to be return back. Eg: Finished products.)

36

4.4.5 VARIFICATION OF STOCK

In Praga Marine the stoke verification is done according to its usage like

Boat engines are verified Half yearly.

Fiber Mats and Chemicals are verified daily.

Other Iron materials are verified weekly.

Wood and Other materials are verified according to the project.



The Company also have computerized its store system. So it is very easy for the identification of
location of the item and also for the verification of purchased stoke with current stock in store.


37













4.5 PURCHASE DEPARTMENT













38

4.5.1 DEPARMENT CHART












PURCHASE MANAGER
STORE SUPERVISOR
PURCHASE ACCOUNTANT
DEPARMENTAL CLERK
39


4.5.2 PURCHASE UNIT

We all know purchase department is the area where most of the expenses are taking place.
So a proper Purchase Department is helpful to the business to make correct purchase any
minimum cost. The Purchase department in the Praga Marine coordinates all its purchasing
activities like
Receives order from the Store department
Identifying the best supplier of the material.
Collecting and supplying goods when it need.
Controlling the cost of purchase which help to increase profit.
Bill passing and release of payment

4.5.3 PROCEDURES OF PURCHASE DEPARTMENT

Purchase order execution :
This is the first step in the process of Purchase department. When the
Store department submit the order to the Purchase department they produce this to
the selected suppliers.

Receipt of materials :
The second step is collect the goods from the supplier with the bill
and given to the Store department.

Bill passing and release of payment :
In the third step the Purchase manager submit the bill to the Finance
department for getting the cash for the bill. and transferring fund to the supplier.



40



If we consider the Boat manufacturing industry we can see that the Purchase
Department plays a vital role in the overall growth of the company. Because the company need
to make changes in its raw materials according to the conditions by the higher authority like
certification authority and all. And in case of Praga Marine they have sufficient work order for
this year so the purchase department need to work according to the need of Production
department.






41

















4.6 FINANCE DEPARTMENT














42


4.6.1 DEPARTMENT STRUCTURE
MANAGING DIRECTOR
FINANCE MANGER
CHIEF ACCOUNTANT
ACCOUNT CLERK
43





4.6.2 FINANCE DEPARTMENT

We all know finance is the life blood of every organization. Finance department is responsible
for all financial matters of the company, such as acquiring funds and resources, recording all
incomes and expenses, maintaining books of accounts, planning and budgetary control, arranging
capital and borrowings with interest, remit statutory payments and for overall control of the
finance. Finance department is under the control of finance manager.



4.6.3 FUNCTIONS OF FINANCE DEPARTMENT



Budget preparation & Preparation of annual account.


Preparation of balance sheet and monthly profit and loss account.

Effective financial control.

To provide financial assistance to the various departments.

Relation with bank and financial institutions.

To collect money from debtors.

To provide management information


Taking financial decisions


Scale of pay and allowances , revision etc


44

4.6.4 BOOKS OF ACCOUNTS

Cashbook

Main ledger


Day book ( both for non cash and cash transactions)

Subsidiary ledger


Receipts and payment statement

Final Accounts




4.6.5 INTERSTING FIGURES


First investment of rupees 8 crore.

Company has computerized the accounting system and use Tally package for it.

Working capital is 20 lakh per day

Turnover is 10-25 crore last year

Completely having owner fund.

Lowest amount for a project is rupees 15 lakh.











45




















V CHAPTER
SWOT ANALYSIS
























46

5.1 SWOT ANALYSIS


SWOT stands for STRENGTH, WEAKNESS, OPPORTUNITIES, AND THREATS.
SWOT is a basic, straightforward model that assesses what an organization can and cannot do as
well as its potential opportunities and threats. In other words SWOT is a scan of the internal and
external environment is an important part of the strategic planning process. Environmental
factors internal to the firm usually can be classified as Strength or Weakness and those external
to the firm can be classified as Opportunities or Threats.

5.1.1 S - STRENGTH

Standard quality products.

Reasonable price and high quality.

Sound financial position.

Good image among the public.

Efficient quality control systems.

Praga Marine is the only one manufactures of CATAMARANS.

Praga Marine is the only one company which have high historical background.

Highly experienced workers.







47

5.1.2 W - WEAKNESS

Poor advertisement.

Sales representatives are less.

Lack of transportation facility.

Poor infrastructure facility.

Lesser chance of promotion.

Lack of arrangements in Store.

Not proper utilization of Human resource.


5.1.4 O - OPPORTUNITY


Company introduce promotional programmes.

Creation of new Yards.

Introducing High Speed Catamarans.

Building new molding Air Conditioned Work shop.

Growing international and domestic market.

Compete in the national market if there is good advertisement


48

5.1.3 T - THREATS

High competition because of large number of Boat manufacturing companies in
the existing industry.

Continues change in government policies.

Price rise of raw materials.

Liberal policy of other brands































49




















CHAPTER VI
FINDING, SUGGESTIONS & CONCLUSION























50

6.1 FINDINGS OF THE STUDY


The company has a sound financial position and a stable management.

The company spends only small amount of money for advertisement and sales
promotion.

The product quality and standard is high with respect to other companies.

The company concentrates on market in and out of Kerala, where its competitors are less
powerful.

The companies Turnover is increasing year by year.

It maintains very good after sales service with own service networks.

Workers are dedicated and have good coordination.
The decisions are taken after consulting the employee.

No trade unions are allowed in the organization.

Safety measures are also provided.

The decisions are taken after consulting the employee.

The company have regular customers.





51


6.2 SUGGESTION


Ensure proper utilization of all resources.

Make complete arrangement for all departments.

Appoint required amount of workers.

Identify another ways to control the waste of materials.

Try to introduce new methods for marketing of product.

Proper division of work & labor should b done.

Fill the managerial position with experienced workers.

Increase the amount of wages of the lower employees.

Maintain the website properly which will help to increase customers in international
market

The company should obtain financial assistance from the government and other financial
institutions.

Timely servicing and smooth handling of customer complaints can reduce additional cost
in closing complaints.










52

6.3 CONCLUSION


Praga Marine is one of the main Boat manufacture in the Indian market. They have high
turnover in this last years. They also have monopoly power in producing some types of boats.
The companys strategy for growth envisages further expansion of capacity, modernization of
processes assures boost in the manufacturing process. This study help to gain knowledge on
Managerial level as well as functional level of the company. It also help to know more about the
Fiber Boat Manufacturing industry. And also help to know what are the requirement for
maintaining a profitable business. This study has improved my confidence by its successful
completion to undertake such studies in the future.