CHAPTER 1

INTRODUCTION

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1.1. INTRODUCTION

An organization is an entity where two or more persons work together to achieve a goal
or a common purpose. If there is an organization, then there must be some people who work as a
whole for a common purpose, so there must be defined purpose. If an organization does not have
any purpose, it will not survive in the long run. To achieve the purpose by using people, the
processes are needed.

Organization is a group of people working together for achieving a common objective

which is already defined by the organization. To run the organization properly without any
wastage of resources a proper structure and hierarchy is to be properly defined in an
organization.

The organizational study was conducted at RUBCO Rubberized Coir Mattress Division,
Poothukuzhi, Kottayam. It started its operation in 2001 November. The project realized with an
investment of Rs.280 Millions. The manufacturing plant is among very few in the country to
employ advanced Austrian Machinery, sourced from DOA, Austria.

Rubber is a polymer consisting of Hydrogen and carbon and is elastic in nature. It is

found in the fluid of some specific plants but it can also be produced synthetically. Naturally,
rubber is produced by the process of tapping of the plant called Hevea Brasiliensis.

Around 3/4th of the national rubber is produced in Kerala. So rubber has become the
backbone of our economy. Due to the bad impact of globalization the overall market of rubber
fell down in Kerala, that time instability in price of rubber was one of the major problem that
farmers faced in the market. The farmers were not getting fair price for their effort, but this
problem has come to an end since 1997, because the Kerala state rubber co-operative limited
came into existence in this year for the purpose of exporting the infinite possibilities of rubber. It
literally means that Kerala state rubber cultivator. RUBCO is incepted with prime objective of
effectively utilizing the abundant rubber resources of Kerala.

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 In a short span, RUBCO has successfully introduced a wide range of fast moving rubber
based product. Today the RUBCO group is manufacturing rubber footwear, casual shoes, cycle
tyre and tubes, two and three wheeler tyre, rubberized coir mattress process and rubber wood
based furniture, block rubber (ISNR) and pale latex crepe, apart from natural rubber trading.

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1.2. OBJECTIVES

 To have an understanding of the profile of RUBCO Mattress division and its various
activities.
 To acquire the knowledge regarding the functional as well as the managerial aspects of
the company.
 To find out the problem and to put forward some suggestions.
 To get an idea about the organizations various departments.
 To familiarize with the various activities of the company.
 To get feel of actual working environment and to get the acquainted with it.
 Learn and enrich by observations and by implementation of my knowledge.
 To learn and maintain good relationship with the organization.

1.3. SCOPE

This study is about the major functioning of the RUBCO Rubberized coir mattress
division, Pambady. This study mainly based on the details collected from each department. Each
and every activities of the department functions are studied carefully with the available data.
This study is beneficial to the future mangers as they are put into real life situation. A study on
all the department can help to improve the process and there by an overall improvements in the
companies performance can be made.

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1.4. REASONS FOR SELECTING THE COMPANY

For select this company because they are engaged in active performance in production
service and marketing. The prime consideration is the study is its tremendous growth during the
past few years. The major departments are Finance, marketing, Purchase, Production and
planning, Maintenance, Quality control, human resource and Exports.

1.5. METHODOLOGY

Primary Data:

 Having formal and informal interview and discussion with managers and official staffs.
 Personal visit to plant.

Secondary Data:

 Data collected from published records and unpublished sources.

 Official records.
 Office manuals.
 Department manuals.

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1.6. LIMITATION OF THE STUDY

The main limitations of this study are,

 Time limit:

To understand an organization and its working the period of one month is not at all enough.
So that time was the most important limiting factor in the study.

 Lack of data:

Some of the data are treated as confidential hence the researcher could not get the details of
the same.

 Lack of comparative data:

The details of other companies related to the same business was not available to take
comparative study.

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 CHPTER.2

INDUSTRY PROFILE

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 2.1 INDUSTRY PROFILE

Rubberized coir mattress segment is a high competitive. This segment having more than
50% of the market share in the mattress industry. They have more than 45 odd brands and over
200 different models. The major players of the industry are Kurlon, Duroflex, and Sunidra.

The birth of rubberized coir industry is quite amusing and interesting. Prior to the year
1960 people hardly had any idea of this novel and high quality of product. In those days the
world famous car manufacturer M/S Volks wagon of Germany, were using the horse hair as
cushion filling material for their car seats. As the production increased from100 cars per day to
300, there was a depth of raw material. This necessitated a suitable alternative products for
rubberization and which could suite to their specifications. Of various alternatives tried like Sisal
fiber, Jute fiber, the coir fiber was decidedly found to be the best. This was the beginning of the
rubberized coir industry. It is nearly four decades old. It was in 1964 M/S bharat Motors of
Chennai established its manufacturing unit.

After nearly one decades of its introduction, Government of India recognized Rubberized
coir mattress as a healthy and hygienic product. Slowly many state Government recognized
rubberized coir as “ Wealth from Waste” and advocated the use of rubberized coir mattress in
various activities such as hospitals, health, clinic etc. through issue of government circular.

Other type of Mattress

Cotton mattress

Form mattress

Spring mattress

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  Cotton mattress:

Cotton mattress mainly targets lower income groups. This is priced very low. The cotton
mattress industry has a market share of 50%.

 Form mattress

Form mattress segment comes as next place after rubberized coir mattress industry. This
industry have market share of 9 to 10% this industry mainly targets customers belonging upper
income and upper middle income group. The major players are MM form, sleepweell.

 Spring mattress

This industry targets consumers belonging to the upper income group. Major players are
Spring well, sealy, Kurl-on.

Growth During Last 4 Decades

From a handful manufacturers, during early 60s this product got some market recognition
in early 70s. in the next 3 decades over one hundred manufacturers have entered rubberized coir
field. Today rubberized coir products are increasingly used in many industries notably in
transport industry like railways and buses, packaging industry (pharmaceuticals, heavy
engineering, electronics etc), hospitals, theaters and auditoriums. The basic raw material for
Rubberized Coir industry is the brown coir fiber and the natural latex rubber. Over the last
decade, the brown coir sector has registered a tremendous growth.

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WORLD SCENARIO

There are three major players in the mattress industry and are as follows.

 Sealy corporation:

It is the major manufacturer and it got the name from the place it started, sealy, Texas.

 King koil

Founded in 1988, king koil has over a century of experience crafting high quality,
affordable bedding both the united states and through out the world.

 Simmons Bedding Company

Simmons bedding company is a major manufacturer of mattress and is one of the oldest
companies in the united States, for over125 years.

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INDIAN SCENARIO

The rubberized coir mattress market of India is estimated to be highly fragmented with
little brand loyalty. The major players are;

 KURL-ON LTD:

Kurl-on ltd, a Manipal group Company came into existence in 1962. Kurl-on Ltd is the
brand leader in the mattress industry has acquired major market share in the branded mattress
segment.

 DUROFLEX

Duroflex is the largest exporter of sleep and comfort product from India, started its
operation in 1963.

 CENTUARY MATTRESS:

Centuary Fiber Plates private ltd started its rubberized coir plant at Hydrabad in 1988
under the brand name “CENTUARY”. Centuary is the first mattress manufacturer with ISO
9001-2000 series and ISI certification.

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STATE SCENARIO

In India, the coir industry has developed very well especially in Kerala where they
produce ‘Retted Fiber’. Green husks of coconut are immersed in the salty backwaters for 10 to 1
months. The main players are;

DUROFLEX
DUROFLEX is the leading mattress manufacturer in India which started its
operation in 1963. It is the largest exporter of sleep and comfort products from
INDIA.

EASTERN SUNIDRA
Eastern mattress Pvt Ltd.is a park of Kerala’s renowned business conglomerate
the Eastern Group of companies.

RUBCO
Kerala State Rubber Co-operative Ltd(RUBCO) was set up in the year 1997. Its
prime objective is to effectively utilizing the abundant rubber resources in Kerala.

The Indian coir industry has a diversified structure, reflecting the broad range of r aw
materials and value added products involved. In the industry provides at least part time
employment to an estimated 40000 persons. At the beginning of the value chain are
approximately 300 fibers millers with usually less than 10 employees and an estimated 500
suppliers of coir pith, or dust. There output is either purchased or direct export or undergoes
manufacturing for twine, mats and brushes rubberized coir mattress and pots, geo textile and pith

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products. Product, which are technically more demanding or better suited for mass production,
such as high end twine, brushes, rubberized coir and erosion control blankets are predominantly
produced in larger facilities, employing more persons. Now, rubberized coir mattress industry
the competition is more and more, the demand for the product is in growth stage. So the only the
quality mattress industry can survive in the competitive World.

v. Future Of The Industry

now in rubberized coir mattress industry the competition is more and more the demand of
the product is in the growth stage. So only the quality mattress industry can survive in the
competitive world.

RUBCO GROUP

Kerala state rubber co-operated ltd(RUBCO) situated in Kannore. Kerala state is

promoted by the government of Kerala to promote rubber industries in the part of our country.

Today India enjoys 4 the position in the production of natural rubbers(NR) and the small
state of Kerala contributes 92% of it’s so it has become the backbone of our economy. Due to the
bad impact of globalization the overall market of rubber fills in Kerala and the instability in
price of rubber was one of the major problems that the rubber farmers faced. The farmers were
not getting fair price for their effort. But this problem came into an end since 1997 as the Kerala
state rubber co-operative ltd. (RUBCO) came into existence and here started a series of
possibilities for the utilization of rubber in multifarious sphere and fields. Since its inspection in
1997, RUBCO has travelled a long way. It has entered into various Rubber based industries.

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2.2. COMPANY PROFILE

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 ABOUT RUBCO

Kerala State rubber co-operative Ltd(RUBCO) was set up in the year 1997, with the
objective of effectively utilizing the abundant rubber resources in Kerala. RUBCO has in short
span, redefined the way the co-operative movement in Kerala. Today from a single unit company
‘RUBCO’ has grown into Rs. 280 crores conglomerate with well diversified operations and a
market presence extending beyond boundaries of Kerala.

Kerala State Rubber co-operative Ltd(RUBCO), is situated in Kannur, Kerala state, India
is promoted by the provisional Government of Kerala to promote Rubber based industries in this
part of our country.

Today India enjoys 4th position in the production of Natural Rubber(NR) in the world.
Among the total production, small state of Kerala contributes 92%. So the rubber has become the
backbone of our economy. Due to the bad impact of globalization the overall market of the
rubber fell down in Kerala that time instability in price of rubber is one of the major problem that
the farmers facing in the market. The farmers were not getting fair price for their effort. But their
problem came into existence. In this year on the purpose of exploring the infinite possibilities of
rubber. Since its inception in 1997, RUBCO has travelled long. It has entered into various rubber
and rubber wood based industries like Hawaii chappal with reputed Malaysian technology, cycle
tyres and tubes, Rubberized coir mattress, conventional and procured tread rubber, Block
rubber(SMR), Pale Latex crepe, Casual shoes etc. for at least over 16 decade with a vision to
become a Global leader in the production of natural Rubber and innovative product development,
RUBCO adopts the best and latest process in the production.

N their slogan it self they had mention that

“RUBCO means RUBBER and RUBBER means RUBCO”

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VISION

To ensure brand leadership in all manufactured and marketed.

MISSION

To develop brand equity and to ensure professional co-operative image through a

systematic working procedure.

RUBCO group has involved in a wide range of business such as;

 Foot wear
 Furniture
 Cycle tyre and Tube
 Rubberized coir mattress
 Natural Rubber
 Virgin coconut oil

New projects for Coconut Based Products

 Virgin coconut oil

 Activated carbon
 Coconut spray dried milk powder
 Packed tender coconut water
 Coconut water concentrate

Plant for casual/ sports shoe on progress

 Unit for automotive rubber components to be established

 RUBCO is in the process of setting up a project for the manufacture of tyres and tubes
for two/ three wheelers, passenger cars, heavy duty trucks and light commercial vehicles.
The project will be located in the proposed industrial growth center being

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 Organizational Goals and Objectives

Goal:

The organizational goal of RUBCO-RCM Division is to make RUBCO a leader in the

market of Rubberized coir mattress.

Objectives;

 Maximize the capacity of utilization of the existing.

 To increase the profitability of the company and to maximize generation of surplus to
enable RUBCO to finance its diversification projects.
 To execute production on time in accordance with the market demand of the product and
make available them to the distributors.
 To maintain and improve the existing cordial relationship between employees and the
management.
 To ensure strict quality control and ISI standards of products complete in the global
market.
 To maximize cost reduction.
 To introduce new varieties of mattress as to increase the wide range of mattress catering
to diverse segments of the market.

HISTORY OF THE ORGANIATION

Kerala State Rubber co-operative Ltd, (RUBCO) has in short span, redefined the way the
co-operative sector functions and set the pace for the co-operative movement in Kerala today.
RUBCO was set up in the year 1997 with the objective of effectively utilizing the abundant
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rubber resources in Kerala. RUBCO has also entered into technical alliances with the world
leader in the respective field, sourcing from them State-of-art technology. Substantial
investments in modern manufacturing facilities, coupled with well Organized market activities,
have been RUBCO’s products earn a reputation for quality and significant market shares.

RUBCO is the largest exporter of Natural Rubber in the country today. Even in the
domestic market, Rubco is a major supplier of natural rubber to all leading tyre companies in
India. RUBCO is also a Government intervention agency towards market stabilization and has
been serving the farming community directly and indirectly to get reasonable price, arresting
drastic fall in price during the peak production periods. Natural rubber trading has being a blend
of social obligation and commercial practicability led by a professional management team and
ably supported by a committed work force. RUBCO is now poisoned to enter a high growth
phase, with served new interactive that will take the group on a path of diversification and
expansion. Rubber holds immense potential for a wide variety of commercial uses which is yet to
be fully

Other Divisions Of RUBCO

RUBCO Footwear Division

RUBCO’s footwear division manufactures a range of quality casual rubber footwear. The
plant manufactured under the renowned Malasian technology RUBCO’s footwear range
presently comprises of three leading brands RUBCO Hawaii, RUBCO Rainbow and RUBCO
classic.

RUBCO Cycle Tyre & Tube Division

The plant has an annual installed capacity of 3 Million tyre and tube. RUBCO’s range of
cycle tyres & tubes has advanced features such as high non skid depth improved wet-skid
resistance and traction property and more mileage and puncture resistence.

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RUBCO Huat Wood Pvt.Ltd

The furniture manufacturing plant has a processing capacity of 40000 Metric tones per
year. The product are being exported to UK, USA, Japan and many other countries across the
globe. RUB WOOD, the furniture range, comprises of dining tables and chairs, designer
Wardrobes, futons kitchen cabinets and computer and office furniture and is available in the
choice of designs and finish.

RUBCO Sreekandapuram Latex Pvt Ltd

The company manufactures Block rubber (ISNR) and pale Latex Crepe(PLC). RUBCO
is in the process of expanding the scope of operations of this unit in line with market trends.

RUBCO Sales Inernational Ltd

RUBCO sales international(RSIL) is a public limited company promoted by RUBCO to

spearhead the sales and the marketing activities for RUBCO’s entire range of product in the
domestic and international market.

Administration and Management of RUBCO

The administration and management of RUBCO vests in the Board of Directors

consisting of fifteen members as follows.
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  Nine directors are elected by ‘n’ class shareholders from among themselves.
 Two directors elected by ‘B’ class shareholders from among themselves.

CHAIRMAN: Mr. E. Narayanan

He is a veteran co-operator and is holding various positions as chairman in central and

state level co-operative organization.

MD: Mr. Jacob D Mathew

He has more than 25 years of experience as CEO in corporate sector.

Other directors.

 Sri. V.N Vasavan

 Sri. George Mathew
 Sri. V Azeez
 Sri. Paneeri Mukhundhan
 Sri. M.V. koman Nambiar
 Sri. S.N. Chandran
 Sri. K.Manoharan
 Sri. V.P.Sadhasivan
 Sri. K.S.Gopi
 Sri. Jacob D Mathew
 Sri. Sthyabhama K.N

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2.3. PRODUCT PROFILE

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I. PRODUCT PROFILE OF RUBCO RCM DIVISION

Rubco manufacturers a wide range of mattress catering to diverse segment of the market. The
range consist of

Heaven

A premium model that provides unmatched sleeping comfort is available in 3 inch and 4 inch
thickness. Also available in customized dimensions and thickness for large quantities.

Heaven Plus

A luxury model that is elegant as well as comfortable which is 5 inch thickness.

Hitech

A hitech model with an accent of finish and luxury available in 5 inch thickness.

Hitech Pillow Top

Superior quality mattress finished to world class standard is available in 7 inch thickness.

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Dosth

An economy model that offers true value for money is available in 2 inch and 3 inches.

Safal

A regular mattress that combines comfort and durability is available in 3 inch and 4 inches.

Heal

This quality product is suitable for uses in the hospital. It is available in 3 inch and 4 inches
thickness.

Yathri

An elegant mattress mean for hotels, hospitals, tourist resort, etc. Yathri combines superior
sleeping comfort with perfect back support enabling a relaxed healthy sleep layer of
rubberized coir and latex enhance the comfort which soft and elegant quilting adds a
luxurious feel for use in hospitals is available in 3 and 4 inches thickness.

9.30 pm

It is economy model available in 3 inch and 4 inch thickness.

Other product from factory.

 Cushions

 Mats
 Cycle tyres

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 2.4. ORGANISATION STRUCTUTRE

ORGANIZATION STRUCTURE

Organization structure is the structure of the relationship among positions and the jobs created
for the purpose of accomplishing the objectives of the enterprise. It represents the pattern of the
relationships among the components of an organization. They are:

 The form of the structure

 The functions to be performed
 The human aspects

This pattern of relationship governs duties and activities of persons who are depend upon each
other for accomplishing the objectives of the enterprise. An organization structure should be
designed to clarify who is to do what tasks and who is responsible for what results, to remove
obstacles of performance caused by confusion and uncertainty of assignment, and to furnish
decision making and communication networks reflecting and supporting enterprise objectives.

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The company’s organizational structure is diagrammatically represented by an organization chart
(a diagram representative of the hierarchy of an organization’s personnel). The organization chart
shows the line of responsibility between the various departments of the company.

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 ORGANIZATIONAL STRUCTURE OF RUBCO RCM LTD

GENERAL MANAGER

A.P.O ACCOUNT OFFICER PRODUCTION MANAGER

STENOGRAPHER Jr. CLERCK

SHIFT IN CHARGE SHIFT IN CHARGE
PRODUCTION LAB

SECURITY WING PRODUCTION QUALITY

SUPERVISOR SUPERVISOR

TIME OFFICER
WORKERS WORKERS

RECEPTION

STORE KEEPER PURCHASE OFFICER ACCOUNTANT

Jr. CLERCK Jr. CLERCK Jr. CLERCK

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 CHAPTER 3

GENERAL MANAGEMENT PRACTICES

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3.1 THE PLANNING PROCESS

a) Financial planning

 Capital investment by board of directors

 Loan from bank
 Initial working capital for raw materials, labor salary and other expenses like electricity

b) Labor planning
 Incentives
 Accommodation
 Transportation
 Food
 Provident fund
 Medical
 Insurance
 Health inspection. (Periodical)

c) Production planning

 As per the requirement (demand).

 Material scheduling by increasing the size of the mattress.
 Work schedule for mattress , mainly mentioned the following details,
 Serial no, work order no, item, Quality, completion date, Dispatch date.
 Planning of purchasing raw materials for the month July will be taken on June.

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 3.2 Decision making process

 Decisions taken by board of directors.

 Mainly decisions taken for raw materials purchasing.
 And also discuss the variations in the rate of the raw materials purchasing.

3.3 Information system

 Mainly information getting through tenders & e-mail.

 Taking order through e-mail.
 Variations in raw material prices should passed through email.

3.4 Communication system

 Group mobile system.

 Inter communication.
 Direct communication.
 Letter
 Information registers. (each section wise)

3.5 General strategies

 Obey all instructions of organization.

Duties & responsibilities.

 Punching system
 Reporting the top management at any emergency circumstances.
 (E.g. during night hours)
 And if any maintenance is originated, that should also inform immediately.

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3.6 Control system
 Security
 CCTV (closed circuit TV)

3.7 Organization manual

A well equipped advanced manufacturing technology under one roof controlled by ERP
system throughout all departments.

3.8 Duties and responsibilities of top management

I. Senior manager

 Co-ordination with all the managers and MD/Directors.

 Prepare monthly production planning and targets.
 Ensure that all functions of RUBCO are progressed as planned and as required by the
directors.
 Ensure that production targets are met.
 Ensure that all purchases are done on time and economically.
 Ensure that all deliveries are done as per client requirement and as per schedule.
 Ensure that quality of materials as per purchase order.
 Employee’s welfare and safety is ensured.
 Ensure that proper liaison with various clients and government authorities are done as
required by concerned managers.
 Ensure the collection especially from the corporate orders.
 Update the costing of product and inform the concerned immediately.

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II. Human resource manager

 Manage all man power related activities.

 Liaise with local authorities and political parties.
 Ensure that proper records are maintained regarding employee welfare.
 Maintain salary records.
 In-charge of company security.
 Organize Board meetings.
 Manage canteen activities and labor accommodation.

III. Finance manager

 Supervise all accounts functions.
 Ensure that proper accounting practices are followed.
 Ensure that all taxes are paid on time and as per law.
 Proper sales tax and excise duty records shall be maintained.
 Follow up on payments from clients.
 Liaise with auditors and bank.
 Collection and issue of C forms.
 Ensure that cost escalation clauses of all contracts are properly followed up.
 Prepare management report on cash flow.
 Ensure that bank payments are done on time and without incurring penalties.
 Monthly outstanding collection statement to be prepared and inform/contact the client for
pending payment.
 Prepare monthly income and expenditure statement with separate head wise.

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IV. Sales manager

 Preparation of tenders for sales.

 Ensure that all tenders for mattress followed up and responded.
 Market the product and obtain sales orders.
 Prepare sales targets and ensure that sales targets are achieved.
 Ensure that production work orders are issued and delivery dates are met.
 Ensure that product quality is maintained by production as per clients orders.
 Follow up with clients for payments and sales promotion
 Ensure that good working relations are maintained with clients.
 Daily monitor the stock and orders.

V. Purchase manager

 Carry all purchase activities of the company.

 Ensure that all raw materials are purchased on time as per the requisitions raised by
production, maintenance and office.
 Ensure that all stationary items are purchased as required.
 Ensure the purchases are done on a competitive bid basis and most economically at the
optimum price.
 Inventory control
 Ensure that all requisitions and purchases are through ERP and proper approvals are
obtained.
 Ensure that payments are done as per the terms of the purchase order and checking of
GRN.
 Stock control to be checked with production manager and inventory to be maintained.

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VI. Production manager

 To ensure optimum machine utilization so as to attain production target.

 Man power allotment as per the requirement.
 Ensure statistical quality work.
 Work execution as per the requirements of the clients.
 Contract employee’s wages report.
 Daily fabric and bobbin stock checking.
 Work order analyze before the execution.
 Ensure the quality assurance.

VII. Manager maintenance

 Daily monitor power factor, energy unit, DG and diesel consumption checking.
 To ensure all the machines are engaged as daily maintenance, monthly maintenance and
preventive maintenance.
 To check all the running machineries, trouble shooting and rectification.
 Erection and commissioning (looms) and other machineries as and when required.
 Daily UPS overload checking.
 Machine wise load checking.
 To ensure all the machineries are on working condition.
 To attend the entire break downs at the earliest without affecting the production.
 To ensure placement of intent for spare parts in advance.
 Maintenance report to be prepared and submit the same daily to the management.

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 CHAPTER. 4

DEPARTMENT PROFILE

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 FUNCTIONAL DEPARTMENTS

Departmentalization is the method of arranging activities to facilitate the accomplishment

of organizational objectives. The organizational process of determining how activities are to be
grouped is called departments. These departments show the horizontal differentiation in an
organization.

The main departments are

1. Administration cum personnel department

2. Finance and accounts departments

i. Stores department
ii. Purchase department

3. Production department

i. Production (main plant)

ii. Production (furnishing)
iii. Production development
iv. Production planning and control
v. Lab and quality department
vi. Engineering department

4. Marketing department

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ADMINISTRATIVE CUM PERSONNEL DEPARTMENTS

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 5 A. ADMINISTRATIVE CUM PESONNEL DEPARTMENT

Human Resource Management

HRM is the process of acquiring, training, appraising, compensating employees and

attending to their labor relations, health and safety and fairness concern. In other words HRM is
the people concern dimension in management. Since every organization is made up of people,
acquiring their services, developing their skills, motivating them to the higher level of
performance and ensuring that they continue to maintain commitment to the organization are
essential to achieve organizational objectives. This is true regardless of the type of the
organization, government, business, education, health, recreation and social action.

The main functions are:

 Conducting job analysis

 Planning about needs and recruiting job candidates
 Selecting job candidates
 Conducting orientation and training program for new employees
 Managing wage and salaries
 Providing incentives and benefits
 Appraising the performance
 Communication with employee (interviewing, counseling, discipline)
 Training and developing managers
 Building employee commitment

Human resource is the greatest of all resources RCM division have the total strength of employee
and staff of Rubco RCM factory is 218, out of which permanent are alone will come up to 147. It
is a high to manage this large resources. For that efficient functioning of administrative cum

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personnel department needs special mention. The department comes under administrative cum
personnel officer

STRUCTURE OF HR DEPARTMENT

.
A.P.O

STENOGRAPHER Jr. Clerk

TIME OFFICER SECURITY WING RECEPTION

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 RESPONSIBILITIES OF HUMAN RESOURCE MANAGER

a. The human resource manager is responsible for the manpower planning recruitment,
selection, training compensation, package, performance appraisal maintaining, discipline
harmonious relation training, optimum use of HR achieving the targeted production etc.
b. He is responsible for providing advices and guidance or assistance to the officers and
staff working in the unit of control of General Manager in the matter connected with
performance appraisal discipline harmonious relation training optimum use of human
resources achieving the targeted production.
c. HR manager is responsible for the creation of posts pay scale and other required
sanctions from managing director chairman for filling up manpower requirements from
time to time.
d. HR manger shall be responsible for complying with various labor legislation.
e. Hr manager is responsible for formulating HR policies and interpretation of different
labor laws.
f. The HR manager is responsible for preparation of wage and salary bill and passing to
finance department for disbursement.

5.A(i). The Functions of Administrative cum Personnel Department

The functions of administrative cum personnel department can be divided into two heads.

 Administrative function
 Personnel function

~ 39 ~
ADMINSTRATIVE FUNCTION

 Liaoning with government and local bodies.

 Correspondence with various government and non-government organization. All the
internal and external mail, letter and memo, registered item handled by this department.
 Security A well equipped security forced is provided for safeguarding everything inside
the factory complex.
 Monitoring the daily inwards and outwards dispatch.

PERSONNEL FUNCTION

MANPOWER PLANNING

The main object of manpower planning in Rubco RCM division

 To ensure optimum use of human resource employed.

 To determine further recruitment level
 To forecast further skill requirements that will serve as a basis for training and
development programmers.

MANPOWER PLANNING PROCESS

Following are the steps involved in manpower planning at RUBCO RCM division

o Analysis of current system

o Forecasting the time horizon of the plan
o Reconciliation of action plan

~ 40 ~
JOB ANALYSIS

Job analysis is the procedure through which a HR manager has to determine the duties of the
positions and characteristics of the people to hire for them.

RECRUITMENT

Recruitment is the process of searching right persons and stimulating them to apply for job in the
organization. Rubco RCM division follows a centralized system of recruitment at head office
level. Only recruitment of casual workers is directly done by RCMs division in itself.

SELECTION

Selection is the process of differentiating between applicants in order to identify and those with
a greater likely hood of success in a job selection is concerned with picking the right candidates
from a poll of applicants. Selection is a negative in its applicants as it’s seeks to eliminate as
many unqualified applicants as possible in order to identify the right candidate. In RUBCO RCM
division selection of employees are done at two levels at the workers level are at managerial
level. The workman are divided into 3 levels based on their skills. They are:

 Skilled workers
 Semi skilled workers
 Un skilled works

JOB DESCRIPTION

Job description is preparing for a number of different purposes in an organization. The area
follows:

 To define the responsibilities of the job

 To review the organization structure and distribution of duties with the organization for a
the job evaluation.
 To provide information about a post to be filled recruitment or selection purpose.

~ 41 ~
INDUCTION

The main function of induction process at RUBCO RCM is to make the worker understand the
relevance of his or he in the overall organization in the set up, apart from the general orientation
programmed concerning all aspect of the company operation given by personal department
specific induction programmed are also conducted depending upon necessity

EMPLOYEE REMUNARATION AND COMPANSATION

At RUBCO RCM employees are remunerated well considering its year of inception was just 3
years back. The average wage of permanent workers is more than 150per day allowances. The
wage is given on a monthly basis. The employee compensation for accidents happening in the
factory is also handled by personnel department.

TRAINING AND DEVELOPMENT

Training is a learning activity, which is directed towards the acquisition of specific knowledge
and skills for the purpose of an occupation or task. Development can be considered as any
learning activity, which is concerned more with career growth than immediate performance. The
factory rigorously follows its training and employee developing activities focusing on up its
training and employee development activities focusing on up gradation of technical and
behavioral skill.

The training officers of concerned programs include both internal as well as external training
personnel. External agencies include personnel from worker educational centers as well as from
professional training agencies. Internal training includes both in house training and on the job
training. The development programmers for top manage are done by head office which is mostky
external.

~ 42 ~
EVALUATION OF TRAINING PROGRAM

Evaluation is done to determine whether or not the objectives and content of the training courses
are consistent with the aim and current needs of the company and whether these objectives
being reached in the most effective and economical manner. Evaluation of training program is
conducted through internal assessment, evaluation is based on measuring the performance of
employees before and after training periods.

PERFORMANCE APPRAISAL

Performance appraisal is a systematic and objective way of judging the relative worth or ability
of an employee in performance his job. The performance appraisal in RCM division of RUBCO
is normally conducted for:

a) Identifying employees for further increment in salary or position.

b) Determining training needs for further improvement s in performance.
c) Motivating employees by indicating their performance level.

WELFARE EMPLOYEES

 All employees in the organization are covered under the employee’s state insurance
scheme.
 Festival advances are given to the employees on the occasion of notified festivals.
 Annual bonus/incentives are paid out to the employees as per the company rule.
 Drinking water
 Latrines and urinals.
 Canteen
 Transportation

~ 43 ~
HEALTH AND SAFETY

Safety- company is very much aware of the safety needs of the worker. RUBCO RCM division
has a very good safety policy in which it was envisaged to make it an accident free organization.
The company has identified the probable area of accidents and the worker working over there are
given extra training and proper caution boards displayed at accident prone areas. First aid
facilities are provided in the factory for all employees.

Health- Health is wealth for employees as well as for managers. RUBCO RCM division has done
enough measures to ensure mental as well as physical health of employees. Precautions are taken
to avoid dust in factory complex.

INDUSTRIAL RELATION

Administrative cum personnel department looks after the key area of union and management
relationship. The department has set in place on effective system to speedy sort out any
difference and disputes. The department gives updated reports on the labor situation to the head
office time to time.

EMPLOYEE RETENTION

Most of the employees are young who are gaining experience at RUBCO. So after going enough
experience they may opt for other companies. So in order to retain them and build loyalty
towards the organization administrative cum personnel department has drawn clear cut plan and
are working towards the plan by implementing it on a step by step basis.

~ 44 ~
ABSENTEEISM

Absenteeism rate in RUBCO is normal only. More than 94% attendance are maintained.
Management has initiated many steps as the absenteeism in coming down.

GRIEVANCE REDRESSAL

A very grievance redressal system is there in the factory. An employee ha s full freedom to take
up any grievance with his immediate supervisor, who tries to solve it to the extend possible. If
the employee still feel aggrieved, then he can take up the a matter with the next higher authority
up to the level of administrative cum personnel officer.

TRADE UNION

The trade union in RUBCO RCM division is Rubco union. In the factory there exists a good and
healthy relationship between management and trade union. The union is lead by C.I.T.U.

~ 45 ~
FINANCE AND ACCOUNTS DEPARTMENT

~ 46 ~
 5 B. FINANCE AND ACCOUNTS DEPARTMENT

I. Financial management

Financial management, also to as corporate finance or managerial finance, emerged as a distinct

field of study at the turn of 20th century. Finance theory in general, rests on the premise that the
goal of financial management should be to maximize the wealth of shareholders.

Finance is the lifeblood of the business of the entire organization. Accounts department at
RUBCO RCM division is responsible for all financial decision in the division, which involve
decision regarding financing, investment and working capital. All financial activities in the
division routed through the accounts department. The accounts department RUBCO RCM gets
fund from financial department of head quarters. The stores and purchase department also comes
under this department.

II. Finance Management Department

Finance refers to the application of skills in the manipulation is the use and control of money.
The finance in the modern business world is the life blood of the business economy. We cannot
imagine a business without finance because it is a central point at all business activities.

Responsibilities of financial manager

 Financial planning
 Raising of necessary funds
 Disposition of profits
 Tax planning
 Internal audit
 Profit planning

~ 47 ~
III. Financial Functions
 Passing and settlement of all miscellaneous advances.
 Perform all works connected with insurance coverage of fixed asset.
 Keeping personnel file of employees relating to salary computation and annual
increment.
 Prepare profitability trend reports and wage analysis.
 Quarterly and yearly financial report preparation.
 Making bank statement.
 Preparation assisting the coordination at all works connected with finalization of
accounts.
 Assisting statutory/ vigilance/ auditors from head quarters.
 Make internal and external purchase.

STRUCTURE OF FINANCE DEPARTMENT

FINANCE MANAGER

ACCOUNTS STORE KEEPER PUECHASE OFFICER

JR. CLERK JR. CLERK JR. CLERK

~ 48 ~
IV. FUNCTIONS OF FINANCE DEPARTMENT

 Exercise control over cash

 Passing and settlement of all miscellaneous advances
 Performing all work connected with insurance of fixed assets
 Settlement of telephone and electricity bill
 Keeping personnel files of employees relating to salary computation and annual
increment.
 Preparation and maintain of accounts and book up-to-date, that are required under
different acts
 Preparation of financial statements
 Over view of internal and external purchase
 Preparation of profitability trend report and wage analysis
 Preparation of monthly profit and loss account and cash flow statement and present them
monthly to top level managers meeting of whole RUBCO Group at RUBCO
headquarters.

BANKERS OF RUBCO

RUBCO RCM bankers are:

 District Co-operative Bank, Kottayam

 State Bank of Travancore

~ 49 ~
PROFITS

2003-2004 - 100 lakh

2004-2005 - 145 lakh

2005-2006 - 100 lakh

2006-2007 - 10 lakh

2007-2008 - 50 lakh

2008-2009 -58 lakh

Financial highlights of the organization

Current 2004-05 2005-06 2006-07 2006-07 2007-08 2008-09

assts
Drs 25 60 40 50 40 50
Finished 20 60 40 30 100 110
goods
Cash 25 10 8 5 2 6
Raw 80 40 40 50 70 70
material
WIP 65 60 60 40 35 40
Total 215 260 188 175 247 276

~ 50 ~
 MANAGEMENT INFORMATION SYSTEM

It is computer based system that provides flexible and speedy access to accurate data. A
set of computer based system and procedure implemented to help managers in their crucial job at
decision making. The actual process involved collecting data, organizing data discrimination of
data and storage of data. These data will be used for managerial analysis and control. It focuses
on accuracy of data and takes the user into confidence.

CAPITAL BUDGETING

Capital budgeting is done at the beginning of the year itself. The requirement of capital will be
specified clearly for the approval during the budgeted year. If any other requirement of capital is
faced then proper justification has to be made. If the requirement is seen as on important one of
them approve of the capital is sanctioned.

CASH MANAGEMENT

Cash management system is one of the key areas in any business. Apart from the fact it is the
most liquid current asset can be reduced. Cash is the common denominator to which all current
assets can be reduced because that other major liquid asst receivable and inventory get eventually
converted in to cash.

FIXED ASSETS

Fixed assets are the major working of any company. Depreciation of fixed assets is charged on
diminishing balance method.

~ 51 ~
Credit control system

A trade credit arises when a company sells its product or services on credit and does not receive
cash immediately.

A company grants credit to protect it sales from the competitors and to attract the potential
customers to buy its product at favorable terms. Credit period allowed is 60 days to 90 days. It
can be extended to 180 days. The collection of credit will be handled over to the factory
manager. The company will give the creditors on further extension on one month legal action
will be taken against the person or company. If the company has submitted the cheque or person
for the credit due and the cheque has bounces or dehorned the company can be take legal action
against the person or the company. Trade creditors receivable which the company is expected to
collect in the near future.

Planning Funds

Planning funds is a careful estimate made by the manager about the total finds required. This is
the estimation done by the observation over the physical activities of the company.

Allocation of funds

Providing at funds to proper place at proper time is also an important task to be done by financial
manager studies the cash requirements of each department and then funds are distributed.

~ 52 ~
Recording of transaction

Each and every transaction that takes place in the company has to be recorded properly for the
purpose of having better control over the funds. All the transaction are recorded in journal and
then posted to the ledgers.

Cost control

The costs are controlled in row material and reduction to expenses as there is limitation of
utilization of funds. The company will always have a comparison of budgets and actual.

Stock in store

Stores department is an auxiliary department of financial department. The major purpose of this
department is to be having row material from suppliers to different departments and there after
verify the bill/invoice to ensure of incoming material and confirm the quality and value with
purchase order.

~ 53 ~
 A. STORES DEPARTMENT

Stores department is an auxiliary department. It functions under accounts

officer.

STRUCTURE OF STORES DEPARTMENT

STORES DEPARTMENT

STORES KEEPER

STORES CLERK

SEMISKILLED LABOUR

Functions of Stores department

 Receipt of incoming material.

 Efficient and orderly record keeping of all material storage.
 Issue of material against written authority.
 Stores of material in safe and conventional location.
 Timely intimation to proper authorities regarding out of stock conditions.

~ 54 ~
  Prevention of damages, losses and unauthorized uses etc.
 Rejected material requirements.
 Sales return management.
 Maintenance of accounts.

Material documents of this department are produced in coordination with the production
department. Monthly check and other periodical checks are done to certify the actual inventory
value in quantities. There is a separate section for rejected products. Rejected products are stored
in stores department itself. Such products are inspected before and after by the quality control
department. Such products are sold out as separate sale items.

Classification of materials

Raw materials

 Latex
 Coir
 Chemicals
 Cloths
 Fabrics

General Engineering Materials

 Electrical items
 Mechanical items
 Capital item tool etc

Statutory Items and Furniture

 Furniture
 Paper
 Bill books

~ 55 ~
 B. PURCHASE DEPARTMENT

This is the department, which purchases the required raw material for the production of mattress.
So this department can be said as the backbone of Rubco. The store keeper verifies the material
and if it goes beyond minimum required level, he will inform it to the accounts officer and he
will pass on the information to the general manager. The general manager then doe’s further
action to buy the required raw materials. The main function of purchasing department is to
ensure uninterrupted flow of production.

STRUCTURE OF PURCHASE DEPARTMENT

PURCHASE OFFICER

JR. CLERK JR. CLERK

Purchase Functions:

 Source identification

Source identification involves the identification of suppliers from which purchase are to be
made.

 Source selection

Source selection involves selecting the best supplier from different suppliers, which is based on
desired quality, price, service etc.

~ 56 ~
  Vendor rating

This responsibility lies with RUBCO head office. Vendor rating is done on the basis of the
product, price of the materials and the reports from the production department in case of latex or
chemicals.

 Receipt of materials

Materials are collected by the receipt store and the details will be given to the section for
inspection. Number of item passed, rejected and the reason for rejection if any will be specified.
Receipts store will then prepare materials receipt report and then send it to the concerned section
i.e; purchase and accounts. The original will be retained by the receipt store.

CLASSIFICATION OF MATERIAL

The materials used in RUBCO RCM division are broadly classified as:

RAW MATERIALS

Latex, coir rubber chemicals, cloths and qualified fabrics, PU forms and threads.

GENERAL ENGINEERING ITEMS

Electrical items, Mechanical items, spare parts and capital item tools.

STATIONARY ITEM AND FURNITURE

Office requirements, paper and bill books, cleaning products.

~ 57 ~
PURCHASE PROCEDURE

 Requisition

The power of approving material requisition is with Rubco head quarters.

 Purchase proposals

After the purchase requisition has been approved by the head office, the order is placed.

 Purchase order

After fixing the right supplier, purchase order is prepared and placed with proposed party. The
order rate, quantity, delivery schedule and terms of payment will be mentioned.

 Vendor rating

The responsibility lies wit the RUBCO head office. Vendor rating is done on the basis of
product, price of the material and reports from the production department in the case of Latex or
chemicals.

 Receipt of material

Materials are collected by the receipt store and the details will be given to the section for
inspection. Number of items passed and reason for rejection if any will be specified. Receipt
store will then prepare materials receipt report to be send to the concerned srction. Original
copy will be retained by the receipt store.

~ 58 ~
PRODUCTION DEPARTMENT

~ 59 ~
 4 C PRODUCTION DEPARTMENT

RUBCO RCM division ha progressively recorded high productivity and profitability. Production
department is equipped with managers and supervisors. The machine used in the production
department are of high cost and mainly imported from foreign countries like U.S.A and U.K. it is
the largest functional department in RUBCO RCM division. The whole production department
comes under factory manager.

Structure of production department

PRODUCTION MANANGER

Production plant Production furnishing Product development

Lab and quality department Production Planning Control Engineering Department

~ 60 ~
Raw materials used

The main raw materials used for the production of bare mattress are

 Latex & chemicals

 Curled coir

The chemical used with latex are

 Sulphur
 Zink oxide
 Zmbt
 ZDC
 Dispersal F
 China clay
 B-rods
 TDQ

Final product from this department

The final product from this department is bare rectangle shaped rubberized coir block.
Rubberized coir block is resilient and because of resilient of the curled fiber. The purpose of
rubber latex is to bond the resilient coir fibers together and impart shape of the product.

Number of workers of this department

The skilled workers at this department comes to 33. There are 46 semi skilled and 35 unskilled
workers. Casual workers will come to 42. Temporary workers are 12 in number.

The production process of RUBCO RCM division consist of following stages:

~ 61 ~
 4.C.(i). production (main plant)

 Processing of coir

Coir is one of the major raw material for the rubberized coir mattress, which is purchased as
bundles (140 bundles= 1 load). This purchased bundle may contain moisture in them. To
eliminate this moisture content it is kept in the coir drier machine & and by using steam from
boiler it is heated for three days, where specific temperature is maintained. This moisture
content in coir is brought down allowable limit of 5% or below.

 PROCESSING OF LATEX ( COMPOUNDING SECTION)

The raw latex processing consist of two steps:

 Ceramic Ball milling

Ceramic ball milling a process in which chemical required for the compounding is grinded with
ceramic balls to make it dispersion. There is three ceramic ball milling machine of Rubco RCM
factory.

 Compounding

In this stage the above model chemical dispersion is mixed with latex stirrer machines. Sufficient
quantity of stabilizers also added into the above mixture at this stage.

 SHEETFORMING SATGE

The production of rubberized fiber sheets are done by the computer controlled sheet forming
machine. The 7 crores investment machine generally called DOA is imported from Austria. This
section has under it.

o Untwisted unit
o Distributor and first spraying section
o Drier and second spraying section
o Cutting table

~ 62 ~
Here completely dried and tempered rope are fed into the untwisted unit were the untwisted unit
were the ropes are opened up to make it coir fiber and curled coir fiber are thrown by a
‘cyclone’ into a feeding conveyor. Fibers are opened further with air from compressors and
supplied to a sheet former. The second sheet former takes the fiber over and pragmatically
produces sheet with partly vertical fiber orientation adjustable width and surface weight. The
sheet is sprayed with compounded latex from the top in the automatic spraying section called
spraying gun. The sheet is then dried in its passage through the tunnel drier. After drying in its
first passage, the sheet is automatically turned over and sprayed with compounded latex on the
other side. After the final drying the sheets are cut to the required size in automatic cutting
machine.

 PRESSING STAGE

The sheet from DOA machine are piled up and progressed in a continuous roller press to get the
desire weight. Then these sheets and the hand sprayed in a spraying booth compounded latex
these progressed parts are in a hydraulic hot press to active the required dimensional stability.

 VULCANIZING STAGE

The pressed parts are then loaded in a trolley and further processed in a Vulcanize to give the
desire resilience to the product. On vulcanization properties such as tensile strength, heat
resistance and resistance to ageing of rubberized coir are improved.

 TRIMMING

After vulcanization the bare blocks are cut in machine called band saw to form rectangular bed
like a block of desired length and width.

 FINAL INSPECTION

After final inspection and checking this bare block are given the furnishing department to further
processing.

~ 63 ~
 STRUCTURE OF PRODUCTION PLANT

Production Department

Coir Ropes Cenex and Dislodged Latex

Compounding(latex mixed
Coir Drier
with chemicals

Untwisting machine Sheeting plant Conveyer Drier

Pre-press Pilling and weighing Cutting machine

Surface spraying Hot press vulcanize

Inspection Trimming

Sending to furnishing Quality control

department

dispatch

~ 64 ~
 4.C.(ii). Production (furnishing)

Furnishing department comes under factory manager. At furnishing department the ‘bare’
mattress from production-plant is brought to furnishing department and it is fabricated with
Rexene and cloths and packaged and made ready to dispatch. The major machinery in furnishing
department is all are imported one. Furnishing department works as per the daily work order
given by planning department. According to work order only labor is deployed every day.

Functions of furnishing department

 Furnishing at different models of mattress, cushions and pillows as per the set standards.
 Final inspection of mattress, cushions, pillows and other bedding accessories.
 Labeling, packing and dispatching mattress and cushion.
 Preparation of furnishing material.
 Dispatch – dispatch of mattress, cushion and pillows as per planning department
instruction.
 Reworking of rejected mattress after referring the condition.

Furnishing process steps

 Corner cutting
 Adding

Feeding

 Stitching
 Quality checking and inspection
 Labeling

~ 65 ~
 MAJOR MACHINES USED IN FURNISHING DEPARTMENT

OUILTING MACHINE

This machine produces over covering PU from ponds for Heaven, Relief, Hi-Tech,
Heaven plus, Hi-Tech pillow top. This machine is fully computerized and imported from UK. It
is capable of producing thousands of variety of design.

BOARDER STICHING MACHINE

PU form together with the upholstery is feed to this machine where the machine stitches
the boarders in which are rolled and passed to the stitching section.

TAPE EDGE MACHINE

Quilted tapster with the boarders kept on rubberized coir pad is feed in to the machine,
which stitches on the sides, and mattress are now ready for packing.

OTHER MACHINES

 Corner Cutting Machine

 Sewing machine
 Fabric cutting machine
 Sealing machine
 Handle stitching machine

~ 66 ~
 STRUCTURE OF FURNISHING DEPARTMENT

SHIFT IN CHARGE

PRODUCTION PRODUCTION PRODUCTION

SUPERVISOR

HIGHLY SKILLED SKILLED WORKERS UNSKILLED WORKERS SEMISKILLED WORKERS

WORKERS

~ 67 ~
4.C.(iii). Product development

The product development carried out is concerned with the identification of the most
economically feasible method for applying the principle through research. It involves design,
redesign and fabrication of new or modified product and testing it to find its usefulness. Product
development essentially involves developing product to suit their customers needs and
conditions. The purpose is to ensure that it meets the requirement and quality slandered. This is
applicable to all product modification of the existing company.

4.(iv). Production planning and control

It is done on the basis of specification or orders placed by RUBCO sales international and
based on domestic order placed by authorized distributors. The required quality and quantity is
specified through production planning and the production is done according to this planning.
Operation planning involves the organization of an overall manufacturing operating system to
produce a product. Objective of production planning is to provide a physical system together
with a set of operating guidelines for efficient conversation of raw materials, human skills and
other inputs into finished goods.

4.(v). lab and Quality Control Development

RUBCO’s product have domestic and international acceptance due to stringent quality
maintenance. A well equipped lab functions at RUBCO RCM division to assure the quality
maintenance produced here. This department comes directly under factory manager. The
adoption of quality management system should be a strategic decision of an organization. The
design and implementation of an organization’s quality management system is influenced by
varying needs, particularly the objectives the products provide to sustain an dwin products
acceptability in the market.

~ 68 ~
The functions of Lab and Quality Assurance department

They are classified into two:

 Quality assurance function

 Laboratory function

Quality Assurance Function

 Strive to achieve international quality standards to the products through various quality
inspection models.
 Ensure quality of raw materials purchased.
 Ensure the quality online process of production.
 Supervise the production process at various stages to make sure that quality policy of
Rubco is strictly maintained throughout the manufacturing process.
 Ensure the quality of finished products.
 Assure quality of packing and selling.
 Assure quality of transport.
 Carry out research and development activities with product development department.

Laboratory functions and Quality Assurance Department

 Testing of material this include testing and analysis work of raw materials like Latex and
Coir, furnishing materials like cloth, PU foam cotton, blanket, threat etc and finished
product.
 Effluent treatment plant.
 The effluent treatment functions also come under lab
 Testing of sub-contract material
 Testing of packing and selling
 Customer relation management

 Here lab works in tandem with marketing department

 Vendor analysis

~ 69 ~
Effluent Treatment Plant

At the effluent treatment plant rubber and latex is separated from the effluents and this
water is used for irrigation purpose in the garden at RUBCO RCM factory compound.

Personnel in Lab

Only shift-in-charge (lab & Q.A) quality supervisor lab and a clerk are the permanent
staff. The rest of lab technicians, lab assistance etc. are all temporary employees. Shift-in-charge
(lab &Q.A) is at freedom to appointment these technicians, and assistance according to the need.

QUALITY TEST FOR RAW MATERIALS

TEST FOR COIR

 Moisture content test:

The purchase-curled coir may contain moisture from atmosphere. To detect this moisture
content test is carried out. The permitted level of moisture in coir is 5% of below

TEST FOR LATEX

To measure whether the quality of purchased latex meets with the specific standards
following test are conducted:

 Dry rubber content test

 Total solids test
 Test for ammonia
 Volatile fatty acid content test
 Mechanical stability test

~ 70 ~
QUALITY CONTROL PROCEDURE

To maintain the quality policy of RUBCO and assure the quality of bare mattress block
as well as raw material, various quality control procedures and tests are adopted in the lab. They
are:-

 Indentation Hardness Test

This test is conducted using indentation hardness apparatus. A 10cm x 10cm sample
block is taken fro the bare mattress and this block is compressed to 40% of its original
thickness by applying a load of 500gm per minute.

 Flexing Test

This test is done to check the internal hardness of bare mattress. The bare mattress block
is kept in flexing apparatus and subjected to 250000 times of flexing to check the
hardness.

 Compression Test

This test is also done to check the hardness of bare mattress. It si kept in for 22 hours. 3
hours after the release of the load reading is noted from the compression test apparatus
under the following conditions.

o At atmosphere condition
o In hot air oven(70%)
 Aging Test

This test is done to test the durability performance of the mattress.

 PH Test
PH test is conducted to analyze the durability performance of the mattress.

 Sulphate Test
To estimate the sulphate content the extract of rubberized coir sheet.

~ 71 ~
 STRUCTURE OF THE QUALITY ASSURENCE DEPARTMNET

Shift in charge

Quality supervisor Production supervisor

workers workers

ENGINEERING DEPARTMENT

Functions of engineering department:

 Instrumentation
 Electrical maintenance
 Maintenance and utility

~ 72 ~
MARKETING DEPARTMENT

~ 73 ~
 4 D. MARKETING DEPARTMENTS

Marketing is the foremost function that gives the management hopes for their integrated
task through making profits. It is a social and managerial process by which individuals and
groups obtain what they need want through creating and exchanging products and value with
others.

Marketing of RUBCO mattress is done by Rubco sales International ltd (RSIL) at H.O.
Kannur. Rubco sales International ltd (RSIL) is a public limited company promoted by Rubco to
spear head the sales and marketing activities for Rubco’s entire range of products in the domestic
and international markets. Within a short span of its inception, RSIL could effectively develop a
competent network domestically as well as globally and undertaken the successful launch of
Rubco’s product. Its efficient and effective marketing strategies helped the organization to build
up a very strong brand name.

4.B.(i). Functions of Marketing Department

The functions of marketing department are given below;

 Conducting seminar/ exhibition for the purpose of launching new product to the market and
also make the people aware of their existing products.
 Conducting retailers meet for the purpose maintain cordial relationship between
management and distributors dealers, retailers.
 Conducting consumer survey for the purpose of collecting information from customers for
the product development and evaluation of existing position of product in market.
 Formation of effective marketing competition increase market share launching of new
product entering into a new market with different product formulation of sales strategies
in order to achieve the target turnover.
 Formulation of sales strategies in order to achieve the target turnover.
 Orientation given to leader and distributors to make awareness about the quality of
products.
 Product development is based on the feedback from customers and retailers.

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 STRUCTURE OF MARKETING DEPARTMENT

Highly skilled workers

Highly skilled workers

Highly skilled workers

4.B.(i). MARKETING STRATEGIES

Rubco mattress attained wide market coverage in Kerala within a short period of it being
established. Now Kerala market is dominated by Rubco mattress industry. The effective
marketing strategy that they have adopted is the reason behind this explosive growth of Rubco.
Expansion of existing market into other geographical areas, i.e, now Rubco is the market leader
in Kerala mattress industry and they are about to expand their market all over South India in
order to attain their target turnover. Planning for introducing new products into market and
entering untapped segment is their innovative strategy.

Marketing Mix

Marketing mix is the set of marketing tools that RUBCO RCM division uses to pursue its
marketing objective the target. It is classified as the 4 the P’s of marketing i.e, product, price,
place and promotion.

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FUNCTIONS OF RSIL

 Gather market information

 Monitoring of supply chain system
 Nurturing and sustaining excellent customer relation
 Helps to achieve product innovation and modification by way of conducting marketing
R&D and customer survey.
 Through better and effective distributors network expansion as well maintains it ensures
improved product availability at reduced cost.
 To help the production units to better and improve the quality of output.

RSIL is a separate Department to spear head the marketing activities of Rubberized Coir
Mattress product at its factory in Pambady. The sales personnel of Rubco Marketing
Department.(RCM) include two Jr. Sales Officer and 6 sales executives. In the highly
competitive sector of rubberized coir mattress where there are almost 120 odd as well as half a
dozen organized sector players are existing, the marketing Department (RCM) had done an
excellent job in making the Rubco almost a market leader in the state within a short span of 3
years. RUBCO mattress has also entered Tamil Nadu with setting up of distribution channel in
Chennai and Erode. With the aggressive market expansion plans and the domestic sales turnover
of RUBCO Rubberized Coir Mattress are all poised to doubles. As Rubco has entered in to
expert deal with some with the European Unions nations and the shipment already flagged off,
the current year’s sales figures may even go up further.

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 ORGANIZATIONAL STRUCTURE OF RSIL

Chair man

M.D

Company secretary GM Cost accountant

(administrative officer of RSIL) (RSIL) (accounts officer of RSIL)

Mktig sales mgr Mktig sales mgr Mktig sales mgr Advt sales
promotion dept
(RCM) (F&P) (F&C)

Area managers

Jr. sales officer

Sales Executives

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 NEW MARKETING INITIATIVES

The marketing initiatives other than maker expansion include the function of new
innovative products like.

 Budget matters
 Foldable matters
 Mattress protector (comforter)
 Hi-tech pillow top mattress with 7 inches thickness
 Latex pillows

1. Pricing
The price denotes the value of a product or service expressed in money. Rubco’s pricing strategy
on its mattress is largely competitor based(going rate price). Rubco charges the price as per
Duroflex price.

The pricing policies of RUBCO RCM also include

 The price quoted is inclusive of transportation charges.

 The margin of distributor is 11% on transfer price and margin for retailer in 20% on MRP
in Tamil Nadu. The retailer are at freedom to sell below MRP

2. Promotion

To win the battle of competition every manufacturer has to choose a number of promotion tools
which can be classified as advertising, publicity and sales promotion.

3. Advertising

The advertising of Rubco rubberized mattress is done through ‘Maabozell communication Ltd’
Ernakulum, an advertisement agency.

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 4. Packing

Packing of the product plays vital role in success or failure of a product. Packing strongly affect
the purchase decision. Packing is the covering given to a product to a product for protecting it.
On the plastic covering of Rubco mattress contain information regarding its unique 3-D
technology.

5. Exports

Exports is not a function of Marketing Department (RCM) at Kannur. This function is done by
RCM factory Pambady itself. This year Rubco has started exporting of its mattress to some
European Union Countries. Rubco RCM divisions also receives enquiries from Sri. Lanka,
U.S.A.and other middle east centers. As Rubco RCM decision strictly follows its quality and
product satisfaction of the customer the exports opportunities are plenty.

STRUCTURE OF SALES NETWORK

RUBCO

(manufacturer)

DISTRIBUTOR

RETAILER

CUSTOMERS

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 CHAPTER 5

SWOT ANALYSIS

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 SWOT ANALYSIS – RUBCO MATTRESS

The evaluation of company’s strength, weakness, opportunities and threats is called

SWOT

1) Strength
 Rubco mattress division wide range of different mattress in different range.
 Relationship between employee and top level management and among dealers and
distributors is in harmony.
 Through effective marketing Rubco products could have acquired wide market
acceptance and customer within a short period of being time established.
 Leadership style that company following is through dedication and coordination. That
encourages employees of the organization to work towards their organizational goals.
 Products with high quality, wide range of products are manufactured which is capable
to challenge variable environment condition, goodwill, and customer service,
technical advice, marketing intelligence, wide network, and interaction with
customers.
 Effective managerial system is on of their strength.
 Good financial management system that exist in the organization.

2) Weakness

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  Higher price compared to their competitors.
 Company should conduct more training and development programs to the employees
and the workers.
 Lack of promotional activities abroad
 Transportation facilities are available but not to the extend as desired.

3) Threats
 Fluctuating price of raw materials is a main threat that is faced by the company.
 Lack of raw material, coir resources are now scarce it will affect the productivity of
the company.
 The company have high competition with others.
 Customers taste and preference are always varies, so it will mainly affect the firm.
 Differentiation in product is a main threat that faced by the company.
 For the past several years company is facing severe competition
 RUBCO ensure high quality products due to which the price of the product is
comparatively high compared to its competitors. So there is possibility that customer
can switch to competitors.

Opportunities

 Demand for the product is very high, the companies product have high demand in the
market.

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 Company mainly adopting new technologies for production, so it will lead the product
different from others.
 RUBCO rubberized coir mattress industry have huge growth in Indian market.
 Good result in out side nations also
 Maintaining good relation ship between trade union and the top management

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 Chapter.6

FINDINGS AND SUGGESTIONS

FINDINGS

1. Presence of good industrial relations with local unions and there is greater co-operation
management and employees.

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 2. Wages system is fair in RUBCO.
3. Workers health and safety are given prime importance.
4. A good co-ordination exists between different departments.
5. Labor turnover is very low.
6. Trade union play a vital role as bargaining agents.

SUGGESTIONS

1. Increase promotional activities could enhance building brand image.

2. More automation should be done so as to reduce the number of workers.
3. Increased production for increased profits.
4. The company has to engage in production of variety products.
5. RUBCO should adopt a strategy that would result in lowering the production and
distribution cost than of its competitors to win the market.
6. The company has to engage in production of variety products. It has to add new product
line thus widening its product mix ie, cousions and furniture upholstery. That way it can
acquire a strong reputation in the single field.
7. The company has to make strengthen their supply chain in other states, in order to tap the
target market

CONCLUSION

The rubberized coir mattress industry has a great market in India. There are number of
mattress manufactures in the market who are struggling hard to make an impact in the mind of
customers. Branded and unbranded mattresses are there in the market, unbranded ones are
concentrated on the local market. They are mainly giving attention to provide customized

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product, who cannot afford to branded mattress at comparatively high price. At present, mattress
market has become one of the most competitive markets in India, which spend huge amounts of
money for advertisement and other promotional activity. RUBCO is a major player in this
industry.

The internship study is helped to make a valuable conclusion through the analysis of different
functional departments of the RUBCO. Presently it is ranked at the top with consideration to
quality. The core competencies of the organization can listed as below:

 Professional management
 Effective Leadership
 Cordial relationship between employees and top level management.
 The company has well established network in industry with sound manufacturing and
marketing experience.

The company had adequate resources available for expansion.

BIBLIOGRAPHY

www.rubcogroup.com

www.rubcomattress.com

www.rubcoindustry.com

www.rubcorcm.com

www.google.com

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Reference Books

Journal : Rubber AIS vol .17, aug2010

Vroom V.H (1964), “ Work and Motivation”

Koontz and O’Donnell, “Essentials of Management”

Philip Kotler and Kevin, “Marketing Management”

VSP RAO, “Human Resource Management”

Martin, “ Organizational Manual”

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