Project Study on the Topic “ORGANIZATIONAL STUDY”


First and foremost, I thank GOD for giving me strength to finish this project successfully. My sincere thanks to My Honourable Founder and Chairman, Dr. PACHAMUTHU, for his sincere Endeavour in educating us in his premier institution. I wish to express my sincere gratitude to our beloved Dean, for his help and encouragement in successful completion of this project. I wish to convey my thanks and gratitude to my Head of the Department, Dr. NAGESH, Department of Master of Business Administration, for his support and by providing me ample time to complete my project. Indeed, I owe everything in this endeavour to my guide Mrs. GAYATHRI, whose illuminating guidance helped me to complete my work successfully. I wish to express my thanks to Mr. K.M. HAMEED SULTAN, The managing director of MANNAN COTTON SPINNING MILL LTD, for providing me the opportunity to work in their organisation. I greatest gratitude to Mr. SHARFUDEEN, the DGM of industry who helped me as a guide in training, educating me about the company and also for all the aspects of my project preparation and I also express my thanks to all other members and staffs of the above company. Last, but not the least, I thank once and all those who have rendered their assistance either directly or indirectly in making this project a successful one.


This Report is about an Organizational Study, which is based on the Summer Internship undergone by the student of MBA of SRM University. This report consists of practical exposure and study about various aspects which are prevailing in an organisation. The study comprises about all the departments activities and practical knowledge about the process, structure, culture, key areas etc. The organizational study is done as a part of summer internship training programme at Mannan Cotton Spinning Mill Pvt Ltd situated in Abiramam, Ramanathapuram District. The study in this organisation mainly concentrates on all the aspects of Production and operation and Marketing of the cotton yarns. This enables to understand the organisational structure. To understand the functions of the key departments of the company. To understand the process of all the departments of the organization To identify the major highlights in the organizational study.


large scale industries especially in consumer goods like cotton textiles. jute . jewels.CHAPTER – 1 INTRODUCTION 1. After independence.1 BACKGROUND The glorious Indian industrial past was related with cotton and silk goods. embroideries etc.

The cotton textile industry has three main divisions. is an eye opener to the various obstacles being faced and the future prospect of industry. Thereafter growth slowed to some extent but through the nineties. Among all the subsectors of the textile industry.205 million kg was pure cotton yarn and the rest was synthetics and blends. The spinning industry grew at a very rapid pace in the first half of the nineties.2 OBJECTIVES . which together works out to about a fifth of the total output. The industry exported about 540 million kg of cotton yarn and about 100 million kg of blended yarn. They are:1) The mill industry producing yarn & cloths 2) The power loom factories producing clothes from mill made yarn 3) Widely dispersed handloom units producing cloth both from mill made and hand spun yarn. The present study of an organization like MANNAN COTTON SPINNING MILL LTD. polyester/cotton and spun acrylics.049 million kg. Large scale industries are those which require huge capital investment and long growing period. 1. Large scale industrial sector is one of those sector that paved the way for economic growth in a country like India cotton industry is a major large scale industry and contributed one fifth or 20% of the total industrial output of the country. spinning is perhaps the most modernized segment. of which 2. India has installed nearly 15 million spindles. such as polyester/viscose. one of the leading cotton spinning unit in Ramanathapuram District.and sugar had registered significant growth. Production in fiscal 2008-09 (April-March) was 3.

• To know the Company Profile • To understand how the key business process are carried out in organizations • To understand about the functioning of each department in detail. referring the general activities of both the managerial and non-managerial level of the organization. • To understand the extent to which management theory matches with actual practices. .The project apart from a brief overall review of the organization. The other aspects of the study is enlisted below. • To make an analysis of the organization’s performance. • To study in detail the entire structure and functioning of the company. The main issue of concern related to the practical difficulties and management practices carried out during the entire process of the production of the product and also the organizational behavior towards various issues arising during the production activities are concentrated in this study.

e.3 NEED FOR THE STUDY This study is basically focused on understanding the practical exposure in the industry and not for data and information i. to experience the firsthand knowledge about how an organization is being run. • To interact with the personnel’s and workers (both external & internal) to find if there are problems with the process and record the findings. • To understand various practical difficulties faced in an organization and how its solved in a profitable manner. • To identify and understand the practical work process followed in an organization. • To study and prepare an organization chart of an organization and to understand the functions of the organization at various departments at each level.1. • To undergo a brief study on the following management aspects : .

5 SIGNIFICANCE OF THE STUDY . Production and Operation Management.  Marketing of the product. This create a handful of opportunity to get the first hand information and understand the functioning of an organization in the practical world. ABIRAMAM.4 SCOPE OF THE STUDY Good Management Practices and Organizational Functionality is an important factor for any Organization to achieve the desired goals and Objectives. RAMANATHAPURAM DIST. 1. As a part of MBA program at the end of 1st semester. 1. I had to carry out a project on an organization study in order to understand the organization structure and their functions.  Accounting and Finance Management. This study allows to know about the overall perspective and performance of COTTON SPINNING MILL Industries in India and a basic practical study on MANNAN COTTON SPINNING MILL (P) LIMITED.  Human Resource Management.

business has become more and more competitive and the technology has changed the nature of business and organization. The findings of this study would give valuable information for improving the overall performance of the organization. The information given by the persons may not be complete because of their busy information. and threats are arrived at. 1. work schedules .In today’s world. weakness. opportunity. The confidentiality restricted the collection of financial accounts. This study analyses in detail about the functions of different departments on the basis of which strength.6 LIMITATION • • • • The busy schedule of the department heads restricted the collection of detailed Time to time company meetings also restricted the visit to several departments.

. 1. Abiramam. Veeracholan Road.CHAPTER – 2 ORGANISATION STRUCTURE 2. Ramnathapuram District.1 ABOUT THE COMPANY HISTORY OF THE MILL Mill address MANNAN COTTON SPINNING MILL LTD. Pin: 623 601.

Manamadurai . .000 31. for itself in the textile industry producing diversified various type of yarns.1995 : 27.. was promoted in 1997 by old Indian companies Act. MANNAN COTTON SPINNING MILL LTD.05.. 1) Varatha Lakshmi Mill Ltd. In the same year the company started many mill all over south Tamil Nadu.832 24. 2) Ayyappan textile Mill Ltd. which started cotton textile mill in each south India.Date of Registration Date of Commencement Area of Operation Sanctioned Spindles Installed spindles Land area Covered Authorized share Capital : 21.000 : 11.Abiramam 3) Asia cotton Mill Ltd.1997 : Tamil Nadu and others : 30..10 acres : 13.750 62.. Ramanathapuram is one of the leading mill which is manufacturing high quality of yarn.000 : 0. In the recent years the MANNAN COTTON SPINNING MILL LTD.30 crores MANNAN COTTON SPINNING MILL LTD. At present the production capacities of the various mill are Spindles Mannan Cotton spinning mill ltd Varatha Lakshmi mill ltd Ayyappan Textile mill ltd Asia cotton mill ltd Total 11.050 7.932 192 192 Rotors .Ramnad .04.

92. ISO CERTIFICATION Mannan cotton spinning mill (p) ltd has acquired ISO 9001:2002 certification for its produces a system effective july 1997. 6. Hong Kong.K.11 Rs.South Korea. D. the company’s products are well received in the local as well as international market.15 Rs.82 Rs.20 Rs. The company exports its products mainly to U. Land Building Plant and Machinery Electrical fittings Furniture fittings Office equipment Vehicles Others Working Capital Rs. I. G. The company’s export turnover which was Rs.The company produces cotton carded and combed yarn as well as special yarn with counts ranging from 16s to 100s. E.. Italy etc. 1. F.10 Rs.10 Rs. B. 2. 2091 lakhs during the year 1991. 0.16 Total Rs. H.00 Rs. C. 205 lakhs during 1986-87 has increased steeply over the years to Rs. 0.66 Rs. 2. PROJECT COST A. Thus for further up gradation has now made the company to go for higher quality. The company identified to meet the thrust area in 1987 and strengthened its manufacturing facilities to meet the international quality requirements for exports.30 Crores Main objective : . 13. 0. 0. 0.

To give employment opportunity to Ramanathapuram (District) and to supply yarn to handloom weavers at reasonable price. 4. span yarn and open yarn. They improve performance show the company in next year. 42’s. Own power generation planning UNIT LAYOUT: . 60’s count cotton yarn. Increasing production quality 3. 2. This mill has manufacturing unit for the production of 40’s. This mill is produce thick. Machine modernization. FUTURE PLAN The textile industry is picking up from the latest quarter of 2010 – 11 the company will be able to show a better performance during the current year. Workers training program. 1. the mill products range 100% blended yarn.


Reeling Section 12. Cleaning Station 2 ( Combing and Drawing ) 7. Winding Section 15. Toilet 16. Simplex Section 9. Godown 2 ( Finished goods ) 4. Security Office 2. Canteen 14. Mixing Station 5. Godown 1 ( Raw Material ) 3. Spinning Section 11. Cashier 10. Cleaning Station 1 ( Blowing and Carding ) 6. Packaging Section . Workers Rest Section 13. Quality centre 8.1.

in order to give the employment to rural areas. The deficit of the workers is managed by appointing casual labors on daily wages. At present nearly 230 workers including permanent workers are working in this mill. Now the company has almost 170 casual labors on roll.. cotton fiber by taking the above raw materials as input and produced cotton yarn. Ichalkranji. Bhiwandi and in TamilNadu. STAFF: Technical staff Clerical staff General Manager :6 :4 :1 . LABOUR COMPONENTS WORKERS: a) b) c) Sanctioned strength Present Apprentice : 200 : 123 : 10 Total : 133 The actual requirement of the mill is 363 permanent workers for the full production. Chennai and Rajapalayam. like Mumbai. Karnataka. The main activities of this mill spinning of is yarn production.COMPANY ACTIVITIES This mill was started by Companies Act 1956 by the mill ltd. After taking production the mill is marketing its yarn of various leading weaving center’s in India. The mill is purchasing raw material such as cotton.

A & B are managerial categories and C & D are workers and staff categories. SELECTION After recruitment.Assistant spinning master Manager :1 :1 Total : 13 WORKER STRENGTH: Shift Day Shift Half shift Full Shift Total Male 15 45 45 105 Female 125 125 Total 140 45 45 230 RECRUITMENT The mill is being a sick industry. 2. and appointment of the officers. If the employees are divided into categories A. C & D. The selection is conducted on the basis of 1. which is sent to the concerned candidate or worker indicating his/her selection. 3. The recruitment in these categories is done through employment exchanges. selection is done by ascertaining the qualifications of the candidate with job requirements. the company has banned direct recruitment. Interview Medical examination Appointment After selection management will issue a memo. . B.

Shift General Shift : : : 7 a. this function is performed by personnel and production departments. I. 11 p. The time keeper will collect the required data relating to the person on the date of joining and keep it on the service record of the person. standing orders etc of the mills.m. 3 p. workers are sometimes asked to work overtime. WORKING HOURS Adult workers are not permitted to work more than 9 hours in a day and 48 hours in a week. TRAINING AND DEVELOPMENT Training and development becomes important as far as the growth of the company is concerned. INDUCTION After placement. the employee is given an induction by which he or she is introduced to the co-workers.m. 5 p.m. 8 a. As the mill does not have a separate training department.m. The personnel manager gives necessary instructions and guidelines regarding the work.m. SHIFT TIMING There are three shifts and general shifts for the workers STL. supervisor and exposed to process of production pattern.PLACEMENT Placement is assigning appropriate job to candidates in the organization. After this the newly appointed persons are guided by the head of the section.m. Since there is absenteeism in the mill. Shift . After joining the candidate must fill a bio-data from and an attestation from in his/her own handwriting. The wage given would be the rate of twice his ordinary salary or rate of salary. The timings of the shift are. discipline. to to to 3 p. Mill does not have a systematic implementation of induction program. II.

Attendance leaves The mill is protected by a boundary wall. Materials 4. SECURITY OFFICE The smooth functioning of the mill has direct connection to the security of the company. Registered as such. society may include in the charges to the made food stuffs served as up to 5% on its working capital employed in the running of the canteen.m. The charge per portion of the food stuff. Personnel 2. the security office is near the entrance with 24 hrs working condition. Information 3.III. INTERVAL FOR REST The period of work in the factory is fixed that no period shall exceed before he has an interval for the rest of at least ½ hour. to 7 p. The canteen is managed by a co operative society. . HOLIDAYS The workers are not allowed to work in the unit on the first day of week unless he has or will have a holiday or one of the three days immediately before or after the day. Shift : 11 p. PROHIBITION OF EMPLOYMENT No child who has not attained or completed his fourteen years is allowed to work in the unit.m. CANTEEN The canteen provides employees with good food in a subsidized rate. beverage and any other item served in the canteen shall be conspicuously displayed in the canteen. The security section consists of security inspector and under him one head security guard and two security guard in shift. The main objective of the security in this mill is the protection of: 1. with a sigle entrance .

which includes name. Identity card is provided to the workers.The security office is responsible for the safety of the mill. belongings are checked or searched while going out. its properties and raw materials and finished goods. time of visit. The security section has to keep certain records including: • • • Goods movement in & out register. They also look after the transport of materials both inward & outward. purpose of visit. Vehicles movement in & out register Visitor’s resistors. . They verify the incoming materials with the bill similarly the outgoing. The vehicles and the materials are controlled by pass system and checked clearly.

2 OPERATIONS Production department function directly under the factory manager. MANUFACTURING PROCESS PRODUCTION CHART . It consists of factory engineering department and stores department.2.

BLOWING The raw cotton received from the godown is opened and cleaned in the blow room to . The process is done in a special room called mixing room. which is in a lower tempter than that of the normal room temperature. MIXING At the first stage of production process hand stock mixing is done.i. The bales are taken in the ratio of 70:30. ii. The bales are arranged as layer by layer. ie 70% polyester & 30% of cotton.

MPM-8 receives cotton from MFC at 100% and supplied to ASTA at 20%. to bring about fiber to fiber separation and to remove short fibers. Silver from carding are stretched or down in states by passing them through a drawing frame. Eight carding silvers are converted into one silver through the drawing frame. Machines using here is FBK-553. MPM-8. v. Machines using here are BO-1200. Comber functions as to remove fiber hook and parallelize the fiber. These silver as a product is stored in cans. DRAWING The ‘silver’ lacks uniformity and so silvers are processed in the drawing frame. When the silver is passed through the comber machine.remove its impurities. LVSA-B. Doubling is done to improve the uniformity of the fiber. which mixes the cotton and is them converted into regular shells called lap by the blow room machinery. A colour is added to identify the polyester failure. KHL 600 and Lekshmi Rieter. and it is narrower in which fiber have been blended and aligned more closely. ASTA-800. For this purpose machines named Trutzchler and Lekshmi Reiter’s are installed. The minimum speed is 570rpm and maximum is 1000rpm. lambs and impurities present in card silver. These silvers are collected in coir cans. iv. CARDING This process separates the cotton fibers from impurities and removed short and immature fibers. CVT1-1600. parallelization of the fiber is achieved through drafting ie. without breaking continuity. MFC . There are 35 semi high production carding machines and 7 high production carding machines. iii. the short fibers are unmoved and thus larger staple length can be obtained. COMBER Objective of the comber is to remove short fibers. The CVT1 Machine runs at a speed of 690 rpm. The carding engine delivers cotton on a filling web which is collected together to form a loose rope of fibers called ‘Silver’. Carding machine used here is ‘Lekshmi Rieter . DK 800. Hence both doubling process and drafting process are taken places. Here the silvers are made uniform in thickness by doubling process and fiber gets drawn straightened by drafting process. Lekshmi Rieter model no .

. WINDING MACHINES There are eight machines and all are the automatic ones. 29 spinning machines are working in this section and 51 workers at day shift. Each machines have the capacity to produce 120. vi. There are six such machines. x. Simplex machines used are model JINGWEI. The product is known by the brand name ’Mohini warp’ 100% cotton yarn and has its market mainly in Maharashtra at present. SPINNING Spinning frames convert the roving received from simplex machine into yarn of received count. SIMPLEX The level of ‘Silver’ determines the quantity of the yarn spin. Autoconer machine have the speed of 1050ypm. Spinning frame need24000wts power for working. viii. The hank yarn is for handlooms only. The silver drawn from the drawing departments are to be thinned out into a bobbin to suit the yarn to the spin. The process of converting the silvers is done in the fry frame department. PACKING Cones are packed by using polythene bags of 50 in number and stitched with grows weight 52 Kg and net weight 50Kg. Spindle capacity of the present machine is 864. model No. HSR 1000 etc are used here as drawing machines.. JWF-146. Minimum is 80 and maximum is 720ypm. REELING MACHINE The yarn prepared by the reeling machine is called hank yarn.Do63 and Trutzchler. vii. Machines from Brad corner have the speed of 640ypm. Here each bowan is converted into 8 corps. The product here is called Rover and it is passed to spinning section. The machines used are from Textool and Brad corner. Each of the bowan has 2kg. The machines are known as autocones. ix.

conducts certain tests:• • • The test to find out sample length Strength test Fiber fitness test. The power supply of the entire mill is regulated by this department. By creating most congenial and healthy working environment. An Assist Engineer is the in charge of the department. In this section. Electricity is obtained from KSEB. The Electrical Section include a generator. The quality policy of the company reads:“To manufacture and supply yarn in conformity with agreed specifications maintaining delivery schedule to the full satisfaction to its customers. The measures adopted are:• • • By adhering to an effective quality management system. By creating awareness among all the employees about the importance of quality measurement system. The breakdown of the machines is prevented to an extent through preventive maintaince. The Electrical section looks after the power requirement of the mill. There is a separate transformer of good capacity inside the mill for this purpose. The quality department in order to maintain the quality of cotton which is in bale form. It has two section. The workshop undertakes all the maintaince functions and installations of machinery. Also a stand by generating set of capacity is installed and maintained by department . there are 11 workers.” The company aims at continual improvement of quality of yarn. The quality department supervises the quality from the blow room to the winding section. 5 workers in general shifts and 6 workers in each of the three shifts. a workshop and a power house.QUALITY CONTROL DEPARTMENT There is a statistical quality control department to check the quality of the yarn. ENGINEERING DEPARTMENT It is under the production department.

The receipt procedure of the stores is as follows:1. 3. Every organization aims to promote its products among the wholesalers through substantial sales orders. An indent is prepared by the concerned departments and sent to the stores. which is produced by the mill. after accepting the tenders. There are also some central stores purchase items which are purchased through the head office. Received goods are inspected by concerned departments which are certified by storekeeper on Good Receipt Inspection Report. The records are maintained on the basis of Weighted average method. and Asst Engineer. 2. Account managers. The store makes use of the bin card system. 4. purchasing orders are send to concerning parties. Some direct purchases are also being carried . The sale is carried out to a sister concern of the company named as SWATI COTTONS PVT LTD. MARKETING AND SALES DEPARTMENT Marketing consists of the strategies and tactics used to identify. A code number is provided for each material. MAHARASTRA who act as the main dealer for the cotton yarns produced by the company. is sold through whole sales. create and maintain satisfying relationships with customers that result in the value for both the customer and the marketer. 5. SWATI COTTONS PVT LTD carries out the local sale and export of the goods for the company.STORES The company maintains a store which has a storekeeper who is in charge and under him there is a Senior assistant and a Junior asst. Yarn. After collecting the indents quotations of lowest rate are accepted by a committee consisting of General Managers.

that is informed to the head office and after getting their suggestion to the sales could be made. Kannur Alagappa textiles mills. Trichy 3. The mill products range 100% blended yarn. 2. If any private parties are interested to buy the yarn for the price specified. 2. Trichy Kerala Leksmi mill. The market division gives information regarding the design of various policies. 4. Coimbatore Kannur Spinnig mill.3 PRODUCT PORTFOLIO MANNAN COTTON SPINNIG MILL PVT LTD produces thick yarns of two types which are as follows 1.out in the company. The mill is under the loss for the past six years as that of the other competitors. Span yarn. The textile industry itself is ailing due to the current and trend of high raw material price and considerably low price for the finished products. Open yarn. A policy that could be implemented for the profit making is to increase export. . SALES POLICY The success and failure of a business depends upon its various sales polices for the selling operation. 2. Now at present the company has no policy. COMPETITORS The mill is facing a high competition in the market. The product of the mill lost its market due to poor quality. Some of the competitors are:1. Muragan Mills.

The yarn types varies according to the requirement of the buyer and the type of cloth to be produced. . The various types of counts manufactured are as follows: • 40’s count cotton yarn.4 ORGANISATION STRUCTURE The management system of the organization is well organized and divided into various departments as enlisted below. 60’s count cotton yarn.This manufacturing unit produces yarns which acts as a fine raw material for Textile industries for the production of clothing materials. The type of yarn is described as count which is the increase in count gradually increases the softness of the garments to be manufactured in Textile industry. 42’s count cotton yarn. • • 2.




• The company has a strong management team which greatly influences the improved performance of the organization over the years.1 MAJOR OBSERVATIONS The following are the major observations made from the organizational study. • These problems have caused the company to reduce its work shifts from 3 shift per day to 2 shift per day. The fluctuating power supply has decreased the production capacity of organization which makes it unsuitable to fulfill the companies per day production requirement. Fluctuation in power supply. • The organization mainly suffers a drastic dropped down of its production activity on two aspects. • The major problem is the labor availability which has gone down drastically over the past 5 years which is due to the Governments scheme on 100days working which has drawn majority of the labor population which in turn reduced the work force availability for the production process. o o Scarcity of labor availability. Power acts as the main source of a production process.3. • The second most problem faced by the organization is the unstable and fluctuating power supply in that region. .

Due to various reason there is more of labor problem due to the 100 days work scheme by the state government which affects greatly on the production capacity of the company.3. The financial position is also not sound due to the loss incurring by the mill. The management is having a good control in the day to day functioning of the company. However it is not in position to control the workers absenteeism. . The structure of the mill is well planned and organized.2 CONCLUSION The organizational study under taken gives an insight in to the function of the MANNAN COTTON SPINNING MILL. The modernization program of introducing automated machineries and power generators will be an answer to these problems. The study has helped extensively to understand the various function and problem being faced by a manufacturing company. And also the fluctuation of power supply greatly affects the production process. the quality improvement if undertaken will boost the export and their by improve the financial position. The modernization programme will be an answer to this problem also to some extent.

http://www.nuspin. 13th Revised Edition.Shridhara Bhat WEB: 1. http://www. Prabal Kumar. : K. Principles of Yarn Production.asp 5. September 1. 2003.aspx K. 2. Production and Operation by Philip Kotler. Selecting Cotton Bales by Spinning Consistency Index. 2000 2. Article: India today: The spinning industry. http://cotcorp. http://www. Pearson Education.nustreet. 4. http://www.Aswathappa and K. Marketing Management.textileinfo.REFERENCES BOOKS: 1. industry/219276/ 7. Aswathappa. www.htm 6. Thomas Gries. http://yarnspinning. Burkhard Human Resource Management. Himalaya Abhijt Majumdar.