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SUBMITTED BY PANDIKUMAR.P 3511110506 Under the guidance of Dr. K.JEYARAMAN Professor
In partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION By SCHOOL OF MANAGEMENT SRM UNIVERSITY
FACULTY OF ENGINEERING AND TECHNOLOGY KATTANKULATHUR 1
This is to certify that the Research Project work titled “AnOrganizational Study in LOTTE INDIA CORPRATION” is a bonafide record of work done by PANDIKUMAR.P, Registration No.3511110506 Second year MBA, SRM UNIVERSITY, in partial fulfillment of the requirement for the award of degree “MASTER OF BUSINESS ADMINISTRATION” during the academic year 2011-2013.
Faculty Guide Dr.JEYARAMAN Professor
Dean Dr.jayshree Suresh
Submitted or viva voice to be held on
I, Mr.Pandikumar.P, a bonafide student of SRM University, hereby declare that project titled “AnOrganizational Study in LOTTE INDIA CORPORATION”submitted in partial fulfillment of the requirement for the award of the degree in “MASTER OF BUSINESS ADMINISTRATION”, of the SRM University is my original work.
I owe my sincere thanks to our respected Dean Mrs. JAYASREE SURESH who has given me an opportunity to do this project. My deepest thanks to Dr.k. jeyaraman Professor, encouragement for this project. I wish to express my deep sense of gratitude to Mr. Arivazagan (Head of the Production Department) and Mr. Sankaran (Executive of Production Department) who assigned me this project that helped me a great deal in enhancing my knowledge by virtue of practical application. Their guidance and support carried us all through the preparation of this Project. I am thankful to all the employees and well-wisher‟s who helped me intellectually in preparation of this project, directly or indirectly. for his valuable guidance and constant
TOPIC INTRODUCTION 1.1 ABOUT THE COMPANY 1.2 INDUSTRY PROFILE 1.3 COMPANY PROFILE 1.4 ORGANIZATION CHART
OBJECTIVE OF THE STUDY 2.1 SCOPE OF THE STUDY 2.2 METHODOLOGY OF ORGANIZATIONAL STUDY
3 4 5 6 7 8 9 10 11
MANUFACTURING PROCESS SWOT ANALYSIS HUMAN RESOURCE FINANCIAL ANALYSIS PRODUCTION AND OPERATIONS FINDING, LIMITATION SUGGESTIONS/RECOMMENDATIONS CONCLUSION BIBLIOGRAPHY
The internship training is an important and integral part of our MBA program, as it gives a practical knowledge of what I have learnt during our study period. As practical knowledge is very much important. And during this internship I was clearly able to see the how theories and knowledge are being practically implemented. This report is about LOTTE INDIA CORPORATION LIMITED. This report contains the complete organization study and also all the necessary information of the company. Development is a related process. It covers not only those activities, which improved job performance, but also those, which bring development of their personalities to help individual‟s progress towards the actualization of their potential capabilities. Training is the process of learning a sequence of programmed behavior. It is an application of knowledge. It gives people an awareness of the rules and procedures to guide their behavior. As a MBA student, I inspired for studying various department and their contribution to the successful running of the organization.
1.1 ABOUT THE COMPANY:
Lotte India Corporation limited, a subsidiary of lotte confectionery co. limited South Korean company. Lotte India corporation limited formally parry‟s confectionery), has its roots in the Indian confectionery market since 1914, a name that still finds a prominent place in the heart of consumers lotte confectionery is a $1. 5 billion global foods company and have a products range, which encompasses chewing gum, candy, biscuits, chocolates and snacks with business interests across the world. Our new plant for chocopie in Chennai, which are largest cakes producing plant in the world will start producing export range from the month of July 2010. Lotte India‟s key brand in confectionery includes coffybite, lacto king, lotte eclairs, caramilk and coconut punch, in gums boopro and spout and in snacks Chocopie.
QUALITY: Quality management system ISO 9001:2008 and Environmental management system ISO 14001:2004 certified.
FACTORIES: Factory 1 - Nellikuppam, Cuddalore district, Tamil nadu - candies & toffees line Factory 2 - Neman village, thiruvullur district, Tamil nadu - fully automated chocopie & gum production line.
1910-1911 Parry‟s acts as agents for M/s Glazebrook steel & Company of UK selling their sweets in Bombay, Karachi & Calcutta.
Till 1913 Parry‟s imports confectionery from C&E Morton Ltd. U.K.
1914 Factory set at Nellikuppam and EID Parry starts manufacturing Confectionery in a small way.
1920 Parry sweets develops an All India reputation for quality sweets.
1940 Parrys starts exporting sweets to countries like Africa & Singapore where they were well accepted.
1941 Supplies made to Red Cross (about 300 Tons) - in aid of war victims.
1954 Nellikuppam Confectionery plant of EID Parry spun off in to a newly formed company “Parry‟s Confectionery Ltd”
1960 Period of growth for PCL. Pioneers several new trade practices. First to introduce Indian made wrapped sweets.
100% of all Parry‟s sweets are machine wrapped.
1981 Murugappa Group takes over Parrys.
1982 Unit at Maraimalai Nagar near Chennai opens for packing small consumer packs.
1983 Coco Products and Beverages Limited taken over by Parrys.
1986 PCL developed its own IT Division - and undertakes computersation. PCL takes over the biscuits division that was a part of Parry & Co then.
1987 Modernization takes place at Nellikuppam once again.
1987 Modernization takes place at Nellikuppam once again. Maraimalai Nagar plant starts manufacturing confectionery to meet growing demand.
1988 Shift from the "King of Sweets" to focus on the Brands Commercials became product oriented.
1992 PCL Company crosses the Rs. 500 million mark. Nellikuppam crosses 8,00 tones production.
1993 R&D center opened at Manapakkam. CPBL stops cocoa processing totally and is into full-fledged production of confectionery. 9
1995 Establishes C & F Agents across the Country.
1996 State-of-art Manufacturing facility established by modernizing the entire plant.
2003 Nellikuppam Plant gets the certifications from BVQI- Bureau Veritas Quality International for its best Quality Management System, Environmental Management System and Food Safety Management System ISO 9001: 2001 , ISO 14001:1996 , HACCP:2002 Version
2004 Parrys Confectionery is now Lotte India Corporation Limited.
1.2 INDUSTRY PROFILE:
Confectionery Industry, a manufacturing sector made up of companies primarily involved in processing candies, chocolate and cocoa products and chewing gum. Confectionery manufacturing started to emerge as an important industry in the late 1800s. One of the earliest commercial operations, McCormick's Ltd, was established in London, Ont, in 1857. Robertson Brothers Ltd was in the candy business in Toronto by 1864, and Ganong Brothers opened in St Stephen, NB, in 1873. In 1873 Moirs Ltd, originally a bakery, commenced candy production in Halifax, NS. Robert Watson Co started in Toronto in 1874, and by 1879 Viau Ltée was in production in Montréal.
In Toronto, Patterson Candy Co was established in 1888, and the Cowan Co in 1890. Confectionery production greatly increased in Canada in the early 1900s with the establishment of several major producers, including William Neilson Ltd in Toronto in 1908, Willard's Chocolates Ltd, Toronto, 1914, and Fry-Cadbury Ltd, Montréal, 1920. Walter M. Lowney Co of Montréal and Walter Baker Co of Canada, Toronto, also became established during this period. In these formative years the industry was concentrated in Eastern Canada, a situation that prevails today, although in Western Canada a number of smaller manufacturers emerged during this period and new companies are still appearing.
During the past 2 decades, a considerable amount of plant consolidation has taken place. In 1961 the industry had 194 plants in production. By the end of the century Statistics Canada reported 94 plants in production: NS had 4; NB, 2; Qué, 29; Ont, 41; Man, 3; Sask, 0; Alta, 2; and BC, 13. As is the case in most other food sectors, the major cause of the reduction has been the steady phasing out of smaller, obsolete production facilities and their replacement with fewer, larger, highly efficient operations.
The confectionery industry is unique among segments of the Canadian FOOD AND BEVERAGE manufacturing system in that it is dependent on foreign supply for 2 of its primary ingredients: sugar and cocoa. Unfortunately, these commodities are subject to rapidly changing prices in spite of accords such as the International Sugar Agreement. This factor, in turn, can seriously affect the industry's sales volumes and profit margins.
Any sharp increase in the international price of raw sugarcane or cocoa beans is quickly translated into increased production costs and higher consumer prices; a downturn in production volumes usually follows.
Steadily increasing provincial sales taxes are another indirect cost that can have a negative effect on industry sales. However, over the long term, production volumes in most categories have shown slow, steady growth. For example, in 1973 the industry produced 68 895 t of all types of chocolate products, including chocolate bars, boxed chocolates, seasonal novelties and chocolate products sold in bulk and other forms. By 1984 the production of chocolate confectionery had increased to 90 003 t. Similarly, in 1971, 16 772 t of chewing-gum products came off the industry's production lines; by 1984 this amount had increased to 19 565 t. Trends in sugar confectionery, which includes hard candy, pan goods (hard and soft) and similar products, fluctuate. In 1971 the industry produced 49 114 t of sugar confectionery; in 1984 the volume was 52 264 t.
Importation of hard-candy products affects the trend. The UK has always been a major Canadian supplier of high-quality candies, but imports are increasing from S American countries, notably Brazil and Argentina.
Statistics Canada reported that in 1997 the industry made shipments valued at $1.48 billion. The industry is represented by the Confectionery Manufacturers Association of Canada, Toronto.
1.3 COMPANY PROFILE
Name of the company
Lotte India Corporation limited
Corporation Office in Chennai.
4/111, Mount Road, Poonamallee High road, Manapakkam, Chennai-600 089.
Number of Plants
Year started in Cuddalore : 1914
I shift - 6.00 am to 2.00 p.m. II shift - 2.00 p.m. to 10.00 p.m. III shift -10.00 p.m. to 6.00 am General Shift - 8.30 am to 12.30p.m / 1.30p.m to5.30 pm
Mr. Myung Ki Min
ICICI/ State Bank of India / Indian Bank
National Insurance Company
Nature of industry
“At the heart of the corporate purpose, which guides us in our approach to doing business, is the drive to serve consumers in a unique and effective way” It‟s a story born in the age of British Raj. When children in India found confectionery hard to come by. It had to be imported from across the seas until the year1914; When Parry‟s picked up the gauntlet and pioneered the manufacture of sweets - the first to do so in the country. Parry‟s sweets went on to become a household name- a name that people recollect with warmth and a smile. Ever since, the Parry‟s factory was set up in Nellikuppam, in the Cuddalore District of Tamilnadu in South India. Parry‟s has become synonymous with Sweets and Confectionery. With the penchant we Indians have for sweets is not surprising that this smooth, milky and irresistibly delicious confectionery is the best gift any child could get. And an obsession with quality ensured that children had a choice of nothing but the very best in confectionery.
In the nine decades since, the scenario has undergone a dramatic change. There are a number of offerings in the market today, each wooing children with a wide array of products. But Parry‟s still finds a prominent place in the heart of consumers. Parry‟s has always stayed at the top, having weathered the vicissitudes of change, with our ear close to the ground - and to the hearts of children, changing, adapting and growing with the times - But never losing sight of its values traditions and ethics. At the turn of this century, Parry‟s is poised on the threshold of greater challenges in a global village, where dynamism and innovation is the very law of survival.
In the backdrop of India joining the WTO, and the global giants eyeing the Indian Market with enthusiasm, the company needed to strengthen itself and broaden its base to delight customers across the country and abroad. With this vision in the mind, Murugappa Group, promoters of Parry‟s Confectionery Limited entered in to an agreement with Lotte Confectionery Limited, South Korea, by which the, entire shares which Murugappa Group, the founders of Parrys Confectionery Limited, held was divested to Lotte Confectionery Limited -A South Korean Multinational giant.
Lotte Confectionery is the first Company of the Lotte family of Companies founded by Mr. Shin Kyuk-ho. The three L‟s in the Lotte Emblem stand for Love, Liberty and Life. The Corporate philosophy and idealism of Lotte is driven by dream of a world full of Love where people care for each other and 14
respect each other‟s thoughts. The Lotte Group has presence in Food & Beverages, Distribution, Tourism and Leisure business; Heavy Chemicals, Construction and Machinery; Information, Communication and Electronics, Trading and Services apart from Welfare Research and Support Services. The Lotte Confectionery Co. Ltd. is the Lotte Group‟s flagship Company in Foods and Beverages category. Lotte Confectionery, Korea, was established with 500 employees in 1967 and today it has more than 6000 Employees. It has over 500 products produced at 5 large-scale plants in Korea. Lotte has been actively working towards establishment of overseas branches, production facilities and has a presence in more than 70 countries. Lotte Confectionery‟s annual Sales are over USD 900 million, Apart from Korea, Lotte has overseas investments in production facilities in China, Philippines and Vietnam. Lotte Confectionery‟s Main line products are Chewing Gum (Lotte Xylitol, Lotte Juicy & Fresh, Lotte Spearmint, Lotte Fresh Mint, Flavono, White & E, Spout Café Coffee) Candy, Biscuits, Chocolates, Snacks, Ice cream, and health care product. If the decades past are any indication, there‟s little doubt that even in the coming century, children grow up with the brands Parry‟s has established. Board of Directors
Mr. Myung Ki Min - Managing Director.
Mr. D.G.Rajan - Director.
LOCATION: Companies now days are shifting base to lower cost of production which make sense . Production base in cities or metros have become non-viable as cost of living , cost of raw material ,overhead cost and tranportation cost have gone above the roof . Companies are moving to low cost areas like CHINA , INDIA , UKRAINE ,IRELAND , VIETNAM ETC .. locally companies have shut operation in DELHI , MUMBAI , CHENNAI , KOLKATA and moved to areas like UTTARAKAND , JHARKHAND , JAIPUR , BADI , etc. . 15
Objectives: • • •
To identify, promote and sustain a set of business practices for orderly and fair conduct of
company business. To ensure compliance with requirements of Corporate Governance under the revised clause 49 of
the Listing Agreement. To comply with all applicable laws, rules and regulations, policies and procedures adopted by the
Company from time to time.
Applicability: • • • • •
Managing Director/Joint Managing Director. All Executive members of the SBU. All personnel serving in the role of Finance, Taxation, Accounting, Secretarial, Legal, Purchase,
Commercial, Internal Audit and investor relations. Also applicable to the committees to the Board and members of the Board of the company and its
subsidiaries if any. As the principles enumerated are general in nature the designated officers are requested to follow
the Standard Operating Procedures presently in place. Manufacturing Facility – Nellikuppam
A state of the Art Manufacturing plant at Nellikuppam. LOTTE India‟s manufacturing facility is located at Nellikuppam, South Arcot District, Tamil Nadu, which is in the southern part of India. The factory is housed in Buildings constructed in the British era; but refurnished inside to accommodate the state of the art equipments. . Apart from having our own factory at Nelllikuppam, Lotte India also has dedicated Sub-Contracting units at Kollenchery in Kerala and Sangli and Nasik in Maharashtra.
All the products are manufactured under the most hygienic conditions. Great care is exercised in the selection and quality control of Raw Materials and packing materials. Rigid quality controls are 16
implemented at every stage of the production process. Every batch of production is checked thoroughly using modern equipments.
The factory at Nellikuppam has been awarded with ISO 14001:1996 and HACCP awards by BVQI. Business locations: Zonal offices: Delhi, Kolkata, Mumbai, Chennai Stock offices: Jammu, Jaipur, Dehradun, Ghaziabad, Kanpur, Patna, Ranchi, Siliguri, Cuttack, Nagpur, Goa, Chennai, Bangalore, Dharwad, Lucknow, Trichy, Guwahati, Ahamadabad, Indore, Palghat, Coimbatore. Sub-contracting units: Nashik, Sangli, Chennai, Kollenchery, kanjikode. Brands: i) ii) iii) Gums- booproo, spout Candy- coffee bite Snaks- chocopie
MISSION: * We provide work environments where our employees can meet their potential and thrive in an atmosphere of excellence. * We strive to be the industry standard in service to customers. * We maintain a superior level of integrity in interactions with business partners and associates. * We appreciate our achieved success and we conduct our business as model corporate citizens. * To develop, manufacture and market high quality and innovative products for their consumers through efficient use of their resources and in partnership with their customers. * To create a fulfilling workplace for their employees built on trust, mutual respect and appreciation of their diversity
VISION: It will enhance its world leadership in confectionary by creating value for people through delightful andimaginative high quality products.
1.4 ORGANIZATION CHART:
2.OBJECTIVE OF THE STUDY
To examine job satisfaction in detail To examine that whether they have good communication between the employees To analyse whether the employees are satisfied with the welfare facilities given to them To examine whether the employees are satisfied with their job and benefits To examine whether the employees are satisfied in solving the problems by the top management
2.1 SCOPE OF STUDY
The study focuses on the overall structure of the organization. In this study, the researcher analyzed the overall functioning of the firm and also the financial performance of the enterprise. The researcher made a moderate attempt to have the SWOT analysis of the study.
2.2 METHODOLOGY OF ORGANIZATIONAL STUDY
The project methodology was based on the survey, i.e. data collection from the employees through structured questionnaire, observations and interviews.
1.PRIMARY DATA - Primary data were collected from discussions with the Managerial head of the various departments. 2.SECONDARY DATA - Secondary data were obtained from the annual report, from the website and other concerned books.
There are three stages of manufacturing process
FLOW DIAGRAM FOR PLAIN / MILK CANDIES
MATERIAL RECEIVED FROM VENDOR1 NOT OKAY INSPECTION & STORAGE 2
FILTERED WATER ISSUE TO PROCESS 3
ADDITION OF RAW MATERIALS 4
PRE COOKING 6
MAGNETIC FILTER CCP-15
FILTRATION CCP-1 8
TEMPERING 9 FORMING 10
STORAGE & DISPATCH 13
FLOW DIAGRAM FOR TOFFEE
MATERIAL RECEIVED FROM VENDOR1 NOT OKAY INSPECTION & STORAGE 2
FILTERED WATER ISSUES TO PROCESS 3
ADDITION OF RAW MATERIALS 4
PRE COOKING 6 6 COOKING CCP-27
MAGNETIC FILTER CCP-15
FILTRATION 8 CCP-1
STORAGE & DESPATCH 12
4. SWOT ANALYSIS:
STRENGTH: 1. Good brand poition and quality which is consumer favourites 2. Strong partnership with retailers 3. Stores are available in almost every market. 4. The shareholders have limited responsibility with regard to the debts or trials against the corporation. 5. Corporations can obtain more capital through the sale of their actions. 6. A corporation can deduct the cost of benefits (benefits package) that offers to its managers and employees. WEAKNESS: 1. No varieties other than chochlate candy like waffer,milk drinks has been introduced yet. 2. Packing is not attractive 3. The process of integration requires more time and money to compare to other models of organization. 4. The corporations are supervised and subject to rules of entities: federal, state and some local, and therefore might have to comply with many more requirements and administrative documents to demonstrate compliance. OPPORTUNITIES: 1. Increase personal relation in village. 2. Increase product range as -Toffees -Bars 3. As the harbor is near ,can export the products by increase quality and range to the small continue. THREATS: 1. Highly qualified employees in big brand. 2. Huge investment on advertisement by other brands.
5. HUMAN RESOURCE:
Job satisfaction describes how content an individual is with his or her job. The happier people are within their job, the more satisfied they are said to be. Job satisfaction is not the same as motivation, although it is clearly linked. Job design aims to enhance job satisfaction and performance, methods include job rotation, job enlargement and job enrichment. Other influences on satisfaction include the management style and culture, employee involvement, empowerment and autonomous work position . Job satisfaction is a very important attribute which is frequently measured by organizations. The most common way of measurement is the use of rating scales where employees report their reactions to their jobs. Questions relate to rate of pay, work responsibilities, variety of tasks, promotional opportunities, the work itself and co-workers. DEFINITION Job satisfaction has been defined as a pleasurable emotional state resulting from the appraisal of one‟s job; an affective reaction to one‟s job; and an attitude towards one‟s job. Job satisfaction is an attitude but points out that researchers should clearly distinguish the objects of cognitive evaluation which are affect (emotion), beliefs and behaviours. This definition suggests that we form attitudes towards our jobs by taking into account our feelings, our beliefs, and our behaviours. Job satisfaction can also be seen within the broader context of the range of issues which affect an individual's experience of work, or their quality of working life. Job satisfaction can be understood in terms of its relationships with other key factors, such as general well-being, stress at work, control at work, home-work interface, and working conditions.
MODELS OF JOB SATISFACTION
AFFECT THEORY Edwin A. Locke‟s Range of Affect Theory (1976) is arguably the most famous job satisfaction model. The main premise of this theory is that satisfaction is determined by a discrepancy between what one wants in a job and what one has in a job. Further, the theory states that how much one values a given facet of work (e.g. the degree of autonomy in a position) moderates how satisfied/dissatisfied one becomes when expectations are/aren‟t met. When a person values a particular facet of a job, his satisfaction is more greatly impacted both positively (when expectations are met) and negatively (when expectations are not met), compared to one who doesn‟t value that facet. To illustrate, if Employee A values autonomy in the workplace and Employee B is indifferent about autonomy, then Employee A would be more satisfied in a position that offers a high degree of autonomy and less satisfied in a position with little or no autonomy compared to Employee B. This theory also states that too much of a particular facet will produce stronger feelings of dissatisfaction the more a worker values that facet. DISPOSITIONAL THEORY
Another well-known job satisfaction theory is the Dispositional Theory .It is a very general theory that suggests that people have innate dispositions that cause them to have tendencies toward a certain level of satisfaction, regardless of one‟s job. This approach became a notable explanation of job satisfaction in light of evidence that job satisfaction tends to be stable over time and across careers and jobs. Research also indicates that identical twins have similar levels of job satisfaction. This model states that higher levels of self-esteem (the value one places on his/her self) and general self-efficiency (the belief in one‟s own competence) lead to higher work satisfaction. Having an internal locus of control (believing one has control over her\his own life, as opposed to outside forces having control) leads to higher job satisfaction.
TWO-FACTOR THEORY (MOTIVATOR-HYGIENE THEORY) This theory states that satisfaction and dissatisfaction are driven by different factors – motivation and hygiene factors, respectively. An employee‟s motivation to work is continually related to job satisfaction of a subordinate. Motivation can be seen as an inner force that drives individuals to attain 27
personal and organizational goals. Motivating factors are those aspects of the job that make people want to perform, and provide people with satisfaction, for example achievement in work, recognition, promotion opportunities. These motivating factors are considered to be intrinsic to the job, or the work carried out.
Hygiene factors include aspects of the working environment such as pay, company policies, supervisory practices, and other working conditions.
MEASURING JOB SATISFACTION
There are many methods for measuring job satisfaction. By far, the most common method for collecting data regarding job satisfaction is the Likert scale. Other less common methods of for gauging job satisfaction include: Yes/No questions, True/False questions, point systems, checklists, and forced choice answers. This data are sometimes collected using an Enterprise Feedback Management (EFM) system.
The Job Descriptive Index (JDI), is a specific questionnaire of job satisfaction that has been widely used. It measures one‟s satisfaction in five facets: pay, promotions and promotion opportunities, coworkers, supervision, and the work itself. The scale is simple, participants answer either yes, no, or can‟t decide (indicated by „?‟) in response to whether given statements accurately describe one‟s job.
The Job in General Index is an overall measurement of job satisfaction. It is an improvement to the Job Descriptive Index because the JDI focuses too much on individual facets and not enough on work satisfaction in general.
RELATIONSHIPS AND PRACTICAL IMPLICATIONS
Job Satisfaction can be an important indicator of how employees feel about their jobs and a predictor of work behaviours such as organizational citizenship, absenteeism, and turnover. Further, job satisfaction can partially mediate the relationship of personality variables and deviant work behaviors.
One common research finding is that job satisfaction is correlated with life satisfaction. This correlation is reciprocal, meaning people who are satisfied with life tend to be satisfied with their job and people who are satisfied with their job tend to be satisfied with life. However, some research has found that job satisfaction is not significantly related to life satisfaction when other variables such as non-work satisfaction and core self-evaluations are taken into account.
DEFINITION: Employee welfare defines as “efforts to make life worth living for workmen”. These efforts have their origin either in some statute formed by the state or in some local custom or in collective agreement or in the employer‟s own initiative. 1. To win over employee‟s loyalty and increase their morale. 2. To combat trade unionism and socialist ideas. 3. To build up stable labour force, to reduce labour turnover and absenteeism. 4. To develop efficiency and productivity among workers. 5. To save oneself from heavy taxes on surplus profits. 6. To earn goodwill and enhance public image. 7. To reduce the threat of further government intervention. 8. To make recruitment more effective.
PRINCIPLES OF EMPLOYEE WELFARE SERVICE
These principles to be followed in setting up a employee welfare service:
The service should satisfy real needs of the workers. This means that the manager must first determine what the employee‟s real needs are with the active participation of workers.
The service should such as can be handled by cafeteria approach. Due to the difference in Sex, age, marital status, number of children, type of job and the income level of 29
employees there are large differences in their choice of a particular benefit. This is known as the cafeteria approach. Such an approach individualises the benefit system though it may be difficult to operate and administer. The cost of the service should be calculate and its financing established on a sound basis. There should be periodical assessment or evaluation of the service and necessary timely on the basis of feedback.
TYPES OF WELFARE FACILITIES:
Which are provided within the establishment such as rest centres canteen, uniforms.
Activities which are undertaken outside the establishment such as child welfare, transport facility etc.
1. Drinking water 2. Crèches
Washing & bathing facilities
3. Rest shelters Uniforms and protective clothing 4. Recreating facilities 5. Subsidised food 6. Education facilities 7. Transportation 8. Leave travel 9. Holiday homes 10. Fair price shops Canteens Medical aid Housing
Maternity benefits Sports facilities Vocational training Cooperative stores Social insurance
EMPLOYEE WELFARE SCHEMES:
STATUTORY WELFARE SCHEMES: The statutory welfare schemes include the following provisions:
At all the working places safe hygienic drinking water should be provided. In every organization, especially factories, suitable seating arrangements are
FACILITIES FOR SITTING:
to be provided.
FIRST AID APPLIANCES:
First aid appliances are to be provided and should be readily assessable so that
in case of any minor accident initial medication can be provided to the needed employee.
LATRINES AND URINALS: A
sufficient number of latrines and urinals are to be provided in the office and
factory premises and are also to be maintained in a neat and clean condition.
Cafeteria or canteens are to be provided by the employer so as to provide
hygienic and nutritious food to the employees.
In every work place, such as ware houses, store places, in the dock area and office premises
spittoons are to be provided in convenient places and same are to be maintained in a hygienic condition.
Proper and sufficient lights are to be provided for employees so that they can work safely
during the night shifts.
Adequate washing places such as bathrooms, wash basins with tap and tap on the
stand pipe are provided in the port area in the vicinity of the work places.
Adequate changing rooms are to be provided for workers to change their cloth in
the factory area and office premises. Adequate lockers are also provided to the workers to keep their clothes and belongings.
Adequate numbers of restrooms are provided to the workers with provisions of water
supply, wash basins, toilets, bathrooms, etc.
NON STATUTORY SCHEMES Many non statutory welfare schemes may include the following schemes:
PERSONAL HEALTH CARE (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up
The main objective of the flexitime policy is to provide opportunity to employees to work
with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs
EMPLOYEE ASSISTANCE PROGRAMS:
Various assistant programs are arranged like external counselling
service so that employees or members of their immediate family can get counselling on various matters.
To protect an employee from harassments of any kind, guidelines are provided
for proper action and also for protecting the aggrieved employee.
MATERNITY & ADOPTION LEAVE
: Employees can avail maternity or adoption leaves. Paternity leave
policies have also been introduced by various companies.
MEDICAL-CLAIM INSURANCE SCHEME:
This insurance scheme provides adequate insurance coverage
of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy.
EMPLOYEE REFERRAL SCHEME:
In several companies employee referral scheme is implemented to
encourage employees to refer friends and relatives for employment in the organization.
SAFETY OF EMPLOYEES
FENCING OF MACHINERY - All dangerous and moving parts of a machinery shall be securely fenced. Screws, bolts and teeth shall be completely encased to prevent danger.
WORK ON OR NEAR MACHINERY IN MOTION-
Lubrication or other adjusting operation on a moving
machinery shall be done only by a specially trained adult male worker.
EMPLOYMENT OF YOUNG PERSONS ON DANGEROUS MACHINES-
No young person shall be allowed to
work on any dangerous machine (so prescribed by the state government) unless he is sufficiently trained or is working under the supervision of knowledgeable person.
DEVICE FOR CUTTING OFF POWER.
Suitable device for cutting of power in emergencies shall be
HOISTS AND LIFTS.
These shall be made of good material and strength, thoroughly examined at least
once in every six months and suitably protected to prevent any person or thing from being trapped.
WELFARE OF EMPLOYEES: There shall be separate and adequately screened washing facilities for the use of male and female employees. There shall be suitable places provided for clothing not worn during working hours and for the dying of wet clothing. There shall be suitable arrangement for all workers to sit for taking rest if they are obliged to work in a standing position. There shall be provided the required number of first-aid boxes or cupboard (at the rate of one for every 150 workers) equipped with the prescribed contents readily available during the working hours of the factory. The State Government may make rules requiring that in any specified factory employing more than 250 employees a canteen shall be provided and maintained by the occupier for the use of the employee. There shall be provided sufficiently lighted and ventilated lunch room if the number of employees ordinarily employed is more than 150.
Source of Funds-Under the Act gratuity is payable entirely by the Employer. For this purpose is required either (i) to obtain insurance with the Life Insurance Corporation, or (ii) to establish a gratuity fund. Thus it is his liability to pay the premium in the first case to make the contribution in the second case
BALANCE SHEET AS AT DECEMBER 31, 2011
(All amounts are in Indian Rupees in lakh, except share data and as stated)
Schedule No I SOURCES OF FUNDS Shareholders‟ Funds Share Capital Reserves and surplus Total APPLICATION OF FUNDS Fixed assets Gross block 3 Less: Accumulated depreciation /amortization Net block Capital work in progress Deferred tax asset (net) Investments Current assets, Loans and advances Inventories Sundry debtors Cash and bank balances Other current assets Loans and advances 18(C)(6) 4 5 6 7 8 9
As at December 31, 2011
As at December 31, 2010
956.00 43,571.99 44,527.99
956.00 43,087.46 44,043.46
47,943.09 9,069.52 38,873.57 842.01 39,715.58 3,868.98 751.24 3,745.51 6.11 1,242.26 9,614.10
48,390.21 8,265.38 40,124.83 26.67 40,151.50 2,890.14 483.11 3,058.10 7.24 1,388.37 7,826.96 3,862.39 72.61 3,935.00 3,891.96 44,043.46
Current liabilities and provisions Current liabilities Provisions Net current assets Profit and Loss account Total
4,749.82 51.87 4,801.69 4,812.41 44,527.99
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2011
(All amounts are in Indian Rupees in lakh, except share data and as stated)
Schedule No. INCOME Sales Less: Excise duty Less: Rebate / discount Other income EXPENDITURE Materials Employee costs Other expenses Depreciation Interest and finance charges Profit before tax Provision for tax - Current tax - Deferred tax charge Profit / (Loss) after tax Balance brought forward from previous year Balance carried to balance sheet Earnings / (Loss) per share Basic and Diluted (Rs) Par value of equity shares (Rs) 18(C)(6) 13
For the Year Ended December 31, 2011 28,873.79 1,603.50 1,567.98 25,702.31 320.96 26,023.27
For the nine months Period April 1, 2010 to December 31, 2010 17,386.01 794.79 1,091.14 15,500.08 92.32 15,592.40 9,993.25 1,226.71 3,352.11 952.75 11.29 15,536.11 56.29 11.50 662.58 (617.79) (82.79) (700.58)
14 15 16 3 17
16,389.46 1,875.30 5,421.64 1,714.31 7.53 25,408.24 615.03 130.50 484.53 (700.58) (216.05)
18(C)(19) 5.07 10 (6.95) 10
Notes to the financial statements: Amalgamation of Lotte Foods India Private Limited (‘Lotte Foods’ or the ‘Transferor Company’) with the Company (also referred to as the ‘Transferee Company’ or ‘the Company’ in this context) under Section 391 and 394 of the Companies Act, 1956.
Pursuant to a scheme of amalgamation sanctioned by the Hon‟ble High Court of Madras on 11 November 2010 („the Scheme‟), Lotte Foods was amalgamated with the Company with effect from April 1, 2010 („appointed date‟)
Pursuant to the scheme of amalgamation, the accounting for amalgamation has been recorded in the following manner.
Sl No A. Assets - Capital Work in Progress - Cash and bank balances - Other Current Assets- Interest accrued - Loans and advances B. Liabilities - Current liabilities and provisions C. D. Net assets taken over (A – B) Less: Face value of shares issued by the transferee Company pursuant to the above scheme of amalgamation 578.87 27,013.72 (2,646.50) 27,592.59 24,007.73 2,163.62 0.70 4,067.04 30,239.09 Particulars Amount Amount
Add: Funds received by Lotte Foods subsequent to April 2010, against which shares are allotted By Lotte Foods
Add: Adjustment arising from revaluation of land (Refer section (iii) below) 9,327.71 39,817.73
As per Accounting Standard - 14 (AS 14) on Accounting for Amalgamations issued under Companies (Accounting Standards) Rules, 2006 and other pronouncements of the Institute of Chartered Accountants of India, the difference between the amount recorded as share capital issued and the amount of the share capital of the Transferor Company is adjusted against capital reserves of the Transferee Company. However, the approved Scheme provided that such amount
shall be adjusted against general reserve. In situations, where the accounting treatment prescribed by the approved scheme of amalgamation varies from the method prescribed under AS-14, the approved scheme prevails. Accordingly, the difference between the amounts recorded as share capital issued and the share capital of the Transferor Company aggregating to Rs.30,490.02 is adjusted against the general reserve in accordance with the Scheme. Had the accounting treatment prescribed under AS-14 read with other pronouncements of the Institute of Chartered Accountants of India, been followed, the amount of Rs.30,490.02 would have been adjusted against capital reserve.
7. PRODUCTIVITY ANALYSIS:
Productivity is a measure of the efficiency of production. Productivity is a ratio of production output to what is required to produce it (inputs). The measure of productivity is defined as a total output per one unit of a total input. These definitions are short but too general and insufficient to make the phenomenon productivity understandable. A more detailed theory of productivity is needed, which explains the phenomenon productivity and makes it comprehensible. In order to obtain a measurable form of productivity, operationalization of the concept is necessary. In explaining and operationalizing a set of production models are used. A production model is a numerical expression of the production process that is based on production data, i.e. measured data in the form of prices and quantities of inputs and outputs. It is most advisable to examine any phenomenon whatsoever only after defining the entity the phenomenon under review forms part of. Then it will be possible to analyze the phenomenon as part of such an entity. Hence, productivity cannot be examined as a phenomenon independently but it is necessary to identify the entity it belongs to. Such an entity is defined as production process. Productivity is a critical factor of production process in one way or another. To define the way is the object of this article. The benefits of high productivity are manifold. At the national level, productivity growth raises living standards because more real income improves people's ability to purchase goods and services, enjoy leisure, improve housing and education and contribute to social and environmental programs. Productivity growth is important to the firm because more real income means that the firm can meet its (perhaps growing) obligations to customers, suppliers, workers, shareholders, and governments (taxes and regulation), and still remain competitive or even improve its competitiveness in the market place.
Productivity can be improved by: 38
Raising the skill level of the workers through training Using more technologically advanced equipment in the production process. Improving the motivation level of the employees By managing the available resource in a more efficient way. Any manufacturing unit would have a production facility where good are produced. Production comprises of man, machine and material.Proper allocation of jobs, layout and material results in cost efficient production.
HANDLING the handling of product and raw material should be reduced to minimum by either putting of conveyors or automatic transfer to the machine.
MOVEMENT to have minimum movement of manpower for getting material, tools and shifting.
REWORK To have zero defective and rework as it is nothing but pure waste. The first step towards elimination is to adopt standards like ISO -9000 & GMP or in house standards.
PHYSICAL STRESS Study the positions of worker while working and eliminate that position were worker feel uncomfortable or experience stress while working .This would productivity. help in better
10 Ways to improve manufacturing productivity •
Analyze causes for downtime and rejects
Record and analyze machine downtime and reject events to minimize interruptions and poor productivity. •
Monitor machines in real time
Detect problems before productivity and quality suffers: see real-time displays of efficiency, utilization, OEE, yield, rate, cycle time •
Automate production reporting
Implement automated production data collection and reporting from ALL types of production machines. Print standard and custom reports automatically and export data to Excel, 1-2-3 or your Enterprise systems •
Automate production scheduling, job tracking
Reduce time-consuming manual production scheduling and job tracking chores to just a few clicks of a mouse •
Schedule P.M. based on actual machine/tool use
Don't wait for your machinery to break or produce scrap before you perform maintenance. Instead, be proactive: schedule Preventive Maintenance based on actual machine/tool/component usage: run hours and cycle count. •
Analyze manufacturing process variable performance
Monitor temperature, pressure, cushion, shot size, stroke, shut height, tonnage, inject/fill/hold time, etc. Chart as X bar and R or export it to SQC/SPC applications.
Implement OEE/ISO/Continuous Improvement programsDevelop real-world production
standards to make your job costing accurate. Implement activity based costing, Continuous Improvement and OEE programs. •
Manufacturing data collection for ERP, MES, CMMS systems
Close the loop with your Enterprise systems: Automatically download production schedules into System's Job Queue, then upload production/performance/productivity and usage data at Shift and Job end •
Export cycle counts and run time to CMMS systems. Eliminate manual "meter" reading
and data collectionProduction ACE can export actual runtime and cycle counts to any third-party CMMS/EAM software during the production shift: cycle counts and runtime "meters" are updated in a real-time file •
Read and Print Bar Code labels at each machine as parts are made
Printed labels can contain your choice of information such as Product Description, Work Order #, Operator Name, Date/Time, Lot Number, etc.
8. FINDINGS AND LIMITATIONS:
Findings: In my research I have founded following things: Rework in productivity is more in the company The liquidity position is less compared to last year The inventory is more so it will lock the liquidity of the company In this year they have more debtors so it can lead to bad debts also Manpower efficiency is less in productivity.
Limitations: There are some limitations of my study, those are as Following: Time limitation: I had the shortage of time because of that I was not able to do my study in
a good manner. Awareness: This is the first time on study in Production Company. So, it is very difficult to construct right information from them. Could not get appointment with senior people in the company Limited time available for interviewing the respondents. As a result of this it wasnot possible to gather full information about the respondents. • When I interviewed children and teenagers, sometimes they used to give answersunder the influence of their parents or elders. • As summer training is going under summer season, so sometimes people are lessinterested in filling up questionnaire. And in this time schools are closed, so insurvey I can‟t fully interact with more children. • Non-cooperative approach and rude behavior of the respondents. •
My survey is based on only two cites i.e. Bhubaneswar and cuttack.i cant got fullinformation about other areas of Orissa.
9.RECOMMENDATIONS / SUGGESTIONS: In my study I have found some limitations. For that I can suggest both companies following suggestions or areas of improvement: The company has to give training to their employees to increase the manpower efficiency Reduce more debtors will reduces loss to the company They should check continuously for reducing the rework
I would like to conclude that LOTTE CORPORATION OF INDIA has good relations among the employees and they are providing good working conditions for the workers. This training has provided me a good experience.
OFFICIAL WEBSITES: www.lotteindia.com
Dr.S.N Maheshwari,Management Accounting. New Delhi, Sultan Chand&sons
LOTTE INDIA CORPORATION Brochure.
I did my summer project in lotte india corporation ltd, Orissa.an attempt was made to study on competitive analysis of confectionary industry. The data was collected from two city,i.e. Bhubaneswar and Cuttack.
In my two months summer training I got field experience like interacting with different trade person in these two cites and to know about the market share of the company in the confectionary market, how our company tackles with its competitor.
After the summer project I feel very energetic and enthusiastic as every part of it is filled with experience and learning. My summer internship project has increased my confidence levels and understands how professional life is to be maintained. An important lesson learnt is how to deal with the customer and convince them.
My visit to different areas made me to develop my contacts and know about different types of customer, understand the market conditions & other skills developed by me are convincing customers through different modes.
My summer project in Lotte India high lighted that if a person in order to be successful should carry the ability to learn new things with the changing environment and this was inspired by the company in which I completed my summer project.
INTRO: At the heart of the corporate purpose, which guides us in or approach to doing business, is the drive to serve consumers in a unique and effective way.”
It is a story born in the age of British raj. When children in India found confectionary hard to come by. It had to be imported from across the seas until the year 1914,when parry‟s picked up the gauntlet and pioneered the manufacture of sweets- the first to do so in the country .parry‟s sweets went on to become a household name –a name that people recollect with warmth and a smile. ever since, the parry‟s factory was set up in Nelikuppam, in the cuddalore District of Tamilnadu in South India. parry‟s has become synonymous with sweets and confectionary .with the penchant we Indians have for sweets is not surprising that this smooth ,milky and irresistibly
delicious confectionary is the best gift any child could get. and an obsession with quality ensured that children had a choice of nothing but the best in confectionary.
In the nine decades since, the scenario has undergone a dramatic charge. There are a number of offering in the market today, each wooing children, changing, adapting and growing with the times – but never losing sight of its values traditions and ethics. At the turn of this century, parry‟s is poised on the threshold of greater challenges in a global village, where dynamism and innovation is the very law of survival.
In the backdrop of India joining the WTO,and the global giants eyeing the Indian market with enthusiasm,the company needed to strengthen it self and broaden its base to delight customers across the country and abroad. With this vision in the mind,Murugappa group, promoters of parry‟s confectionary limited ,south korea,by which the entire shares which Murugappa group, the founders of parry‟s confectionary limited –a south Korean multinational giant .
Lotte confectionary is the first company of the lotte family of companies founded by Mr. Shin Kyuk-ho.the three L‟s in the Lotte Emblem stand for Love, Liberty and Life. The corporate philosophy and idealism of lotte is driven by dream of world full of love win here people care for each other and respect each other‟s thoughts. The lotte group has presence in food and beverages, distribution, tourism and leisure business ;heavy chemicals ,construction and machinery ;information ,communication and electronics ,trading and services apart from welfare research and support services. The lotte confectionary co.ltd. is the lotte group‟s flagship company in foods and beverages category.lotte confectionary,korea ,was established with 500 employes in 1967 and today it has more than 6000 employees.
It has over 500 products produced at 5 large-scale plants in korea.lotte has been actively working towards establishment of overseas branches ,production facilities and has a presence in more than 70 countries .lotte confectionary‟annual sales are over than USD 900 millions apart from korea ,lotte has overseas investments in production facilities in China ,Philippines ,and Vietnam.lotte confectionary‟ main line products are (chewing gum(lotte xylitol,lotte juicy & fresh,lotte spearmint,lotte fresh mint,flavono,white & E,spout case
coffe),candy,biscuits,chocolates,snacks,ice cream and health care products. If the decades past are any indication ,there is little doubt that even in the coming century ,children grow up with the brands parry‟s has established .The catalog of lotte‟s product are given below: