This action might not be possible to undo. Are you sure you want to continue?
REPORT ON ORGANISATION STUDY OF Glenrock Rubber Products Pvt. Ltd. Pala, Kottayam
Submitted in partial fulfillment of the requirements for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Of the Mahatma Gandhi University.
Submitted by VEENA S Reg.No : 21284 Under the guidance of Ms. Meghana JUNE 2010
DC School of Management and Technology
Pullikkanam, Vagamon , Idukki 685503 Tel: 04869 – 248322, 248323
I VEENA S hereby declare that this report entitled “ ORGANISATION STUDY OF GELROCK RUBBER PRODUCTS PVT LTD, PALA, KOTTAYAM” has been prepared by me, under the supervision and guidance of MS. MEGHANA, Faculty Member of DC SCHOOL OF MANAGEMENT AND TECHNOLOGY, PULLIKANAM and now being submitted to MAHATMA GANDHI UNIVERSITY, for the partial fulfillment of the university regulation for the award of the degree of Master of Business Administration. Further, I declare that this project report is based on the original project study undertaken by me and has not formed a basis for the award of any other degree / diploma at any other university.
This is to certify that the organization study titled ………………................................ …………………………………………………………………………………………………. is a bonafide record of the work done by Ms………………………………………. , 3rd
semester MBA Student of DC School of Management and Technology, submitted in partial fulfillment of the requirements for the award of the Masters Degree in Business
Administration of Mahatma Gandhi University , Kottayam, Kerala.
Institutio n Seal
Date: Place: Pullikkanam
Signature Name Date
Signature Name Date
Certificate from the Company
First of all, I thank the God Almighty for his blessings to complete my Organization Study successfully. I would like to express my heartiest gratitude to Mr. Johny Abraham, head of
Human Resource Management of Glenrock Rubber Products Pvt Ltd for
giving me an opportunity to associate myself in the organization and to carry out my Organization Study. I would also give special thanks to all the department heads and staff of Glenrock
Rubber Products Pvt Lt for their support, information, co-operation, advice to complete
my OS. I would like to thank my Organization Study guide Mr. Meghana, Faculty DCSMAT for her guidance, constant interest and encouragement which has enabled to complete my OS successfully. In addition, I express my gratitude to my beloved parents, friends & all my colleagues for being so encouraging and supportive throughout the study.
Findings, Suggestions And Conclusions
LIST OF FIGURES GRAPHS
PAGE NO :
Overall Organisation structure
Flowchart of Production Process
General Marketing Process
Graph of Exports
This organizational study has been undertaken pursuant to the Project requirement of the MBA program I am pursuing at DC School of Management and Technology,Vagamon, affiliated to the Mahatma Gandhi University. The study educates the students with the know how of the realities of the corporate world. Glenrock Rubber Products Pvt Ltd is one of the pioneer companies engaged in the manufacture and export of rubber moulded goods. Established in 1995 on the rubber flourished banks of the Meenachil river in palai, in kottayam district.Their focus in delivering high quality rubber products like rubber mats, rubber tiles and industrial mats in rolls in India. Today Glenrock Rubber Products Pvt Ltd has grown up to become a leading rubber tiles and mats manufacturers in Kerala, India. The company caters to the specific needs of customers in rubber from all over the globe. It has achieved a commendable position in the global market. Innovative products in rubber is its hallmark, Glenrock has developed and supplied about 200 custom made products to customers all over the world. The study begins with the organizational profile of the company, followed by the history, growth, business operations, the domains in which the organization has ventured its performance in the recent years and its SWOT analysis with regards to its prevailing competitors,etc. The project work is titled as “An Organizational Study of Glenrock Rubber Products Pvt Ltd Pala, Kottayam”.It is intended to analyze comprehensively and understand thoroughly the various departments, services and functions of “Glenrock Rubber Products Pvt Ltd , Pala, Kottayam ” in order to gain more knowledge regarding all aspects of business in a manufacturing company.
Chapter 1 INTRODUCTION
Organizations have gained momentum over the past few decades as an inevitable source to sustain business activities. An organization is a powerhouse of resources through which manufacturing and production operations are efficiently carried out. It comes into existence when several minds are bound together through effective and efficient communication along with harmonious interpersonal relations for contributing toward a common endeavor. Organization can thus be aptly defined as a “collectivity with relatively identifiable boundary, a normative order, authority ranks, communication system and member co-coordinating the system that collectively exists on a relatively continuous basis in an environment and engages in activities that are usually related to a goal or set of goals”. The rubber industry in India is basically divided in two sectors - tyre and non-tyre sector produces all types of auto tyres, conventional as well as radial tyres and exports to advance countries like USA.
The non-tyre sector comprises the medium scale, small scale and tiny units. It produces high technology and sophisticated industrial products. The small scale sector accounts for over 50% of production of rubber goods in the non-tyre sector. Going by share of rubber consumption, automotive tyre sector is the single largest sector accounting for about 50% consumption of all kinds of rubbers, followed by bicycles tyres and tubes 15% footwear12%, belts and hoses 6%, camelback and latex products 7%. All other remaining rubber products put together account for 10% Glenrock Rubber Products Pvt Ltd is one of the pioneer companies engaged in the manufacture and export of rubber moulded goods. Established in 1995 on the rubber flourished banks of the Meenachil river in palai, kottayam district. The company‟s primary focus is in delivering high quality rubber products like rubber mats, rubber tiles and industrial mats in rolls in India .Today Glenrock Rubber Products Pvt Ltd. grown up to become a leading rubber tiles and mats manufacturers in Kerala, India.
1.1 IMPORTANCE OF THE STUDY
Organisation Study project report is a work-study report and a vital training program, by the help of which students learn all the aspects of practical business scenario during the course of study. The Organisation Study and its report work is one of the most important aspects the Master of Business Administration program. This study is generally meant to develop student‟s aptitude towards business environment practically and theoretically. It is like a practical training given which will make me prepared for a future job as a manager of an organization. So it is observed that the project work is an invaluable part of the educational curriculum. Management theory provides the scientific technique to deal with various situations and problems in the area of business management. To emphasize this very aspect of management studies and to make its students acquainted with the organizational structure and working, M.G University has introduced this Organisation Study program at a very beginning of III semester for the studies is no exception. It has imparted enthusiasm amongst its MBA students from the very beginning about the importance and utility of this Organisation Study work. During this Organisation Study work, students come across real life situations under the domain of business and organizational world. In the process they get to interact with various personnel and departments in the organization where he/she is completely a new entrant. This helps him/her to sharpen the communication and interpersonal skills and get inspired by the working of the organization. He/She gets acquainted with the problems and advantages faced by the organization in the competitive business world and thus gets to know the what, why and how‟s of the management principles. In the present business world, manufacturing industry has grown significantly since last few decades and is also faced by the cut-throat competition in every area.
A lot of Research and Development is also being carried out to keep abreast in the industry and produce innovative products. The manufacturing affair has become more institutionalized and modernized with the advent of electronic and computer technologies. Manufacturing is the typical industry to study to gain knowledge about the application of management principles, customer orientation, service efficiency, quality compliance, financial management, competitive strategies and other important aspects that an MBA student should get knowledge of.
During the study, I gathered information relating to Organizational structure, various departments and their functions, products, quality policies, procedures and SWOT analysis of the company. Various methods were applied in order to make my study effective and wholesome. The study has certainly helped me to add one more dimension in my pursuits to understand the management theories, principles and practices.
1.2 OBJECTIVE OF THE STUDY
To know about the Glenrock Rubber Products, Pvt .Ltd. To study the organizational structure of Glenrock Rubber Products, Pvt .Ltd. To study about the various departments and their functions. To know the major functions of Glenrock Rubber Products, Pvt .Ltd.
1.3 SCOPE OF STUDY
The organizational study at Glenrock Rubber Products, Pvt Ltd, Kottayam restricted the exploration of all the functions of each department but an overview of the important functions was scrutinized. A better understanding at the functional level of each department was imparted. The HR department provides greater avenues for collecting sufficient information associated with the organization and in defining the newly adopted policies and strategies. The study is based on the relevant data and materials given from organization.
OBJECTIVIES To know about the Glenrock Rubber Products, Pvt .Ltd. To study the organizational structure of Glenrock Rubber Products, Pvt .Ltd. To study about the various departments and their functions. To know the quality standards. To know the major functions of Glenrock Rubber Products, Pvt .Ltd.
SOURCE OF DATA The data collected are represented in two ways. They are: 1. Primary Data The primary data is collected mainly through 1. 2. Direct observation Interviews
2. Secondary Data The secondary data refers to the data, which have already been collected by the researcher. In this project most of the data are collected by referring different books, magazines and by researching the internet. DATA REPRESENTATION Data have been represented through tables, charts, diagrams and graphs.
1.5 LIMITATIONS OF THE STUDY
1. 2. 3. The duration of the study is limited for four weeks. The study is limited to „organisation study‟. Information of certain departments like financial data, balance sheet copy from the financial department was not available because of its confidential character.
Chapter 2 INDUSTRY PROFILE
2.1 HISTORY OF INDUSTRY
Rubber is an organic substance obtained from natural resources or synthesized artificially which has the described properties of extensibility, strechability and toughness. The scientific name of rubber “Heaves brasiliensis‟‟. Natural rubber is produced from latex or field coagulum obtained from rubber trees planted in plantations. The most important forms in which natural rubber is processed and marketed are the following: sheets, creeps, block rubber and preserved latex concentrates. In India, sheet rubber designated as RSS 1 (Rubber Smoked Sheets), RSS2, RSS3, RSS4and RSS5 are the most commonly produced and marketed. Block rubber is designated in the grades of ISNR.
2.2 PRESENT STRUCTURE OF THE INDUSTRY
Thailand, Indonesia, India, China, Malaysia, Vietnam are the major producers of rubber in the world. The global production fluctuates between 6-8 million tons , with the production of 7.9 million tons in 2003 , of which Asian countries have produced 6.76 million tons On the consumption front, global natural rubber consumption is 7.89 million tons of which 1.9 million ton was consumed in India and China alone. The total synthetic rubber consumption was 1.13 million ton.
Around 60% of the global rubber production is used by the transportation sector. In this
sector, natural or synthetic rubber cannot be used individually and has to be blended.
Major World Markets Global natural rubber output is estimated to be around 8.6 million tons with Thailand, Indonesia, Malaysia and India leading the pack. China, US, Japan and India are the leading consumers of natural rubber. Global natural rubber output is slightly lower than consumption and that has helped rubber prices to touch high levels during 2005 and 2006.
Tokyo Commodity Exchange, Singapore Commodity Exchange and Agriculture Futures Exchange in Bangkok are the major global rubber futures market. The three national commodity exchanges in India offer futures contracts in rubber.
B) INDIAN RUBBER INDUSTRY
With around 6000 unit comprising 30 large scale, 300 medium scale and around 5600 SSI/tiny sector units, manufacturing 35000 rubber products, employing 400 hundred thousand people, including around 22000 technically qualified support personnel, with a turnover of Rs.200 billions and contributing Rs.40 billions to the National Exchequer through taxes, duties and other levies, the Indian Rubber Industry plays a core sector role in the Indian national economy. The industry has certain distinct advantages like:
An extensive plantation sector Indigenous availability of the basic raw materials, like natural rubber, synthetic rubber,
reclaim rubber, carbon black, rubber chemicals, fatty acids, rayon and nylon yarn and so on.
A large domestic market. Availability of cheap labor. Training facility in various technical institutes. On-going economic reforms. Improved living standards of the masses.
India and the world
India is the third largest producer, fourth largest consumer of natural rubber and fifth largest consumer of natural rubber and synthetic rubber together in the world. Besides, India is the world's largest manufacturer of reclaim rubber. In fact, India and China are the only two countries in the world which have the capacity to consume the entire indigenous production of natural rubber and thereby obviate the compulsion and over dependence on
exports of surplus quantity of natural rubber. The plantation sector with an estimated production of over 630 hundred thousand tones of natural rubber and a projected production of more than one million tones in near future, helps radical and rapid growth of the Indian rubber industry. The growth prospect is further enlarged by a boom in the vehicle industry, improved living standards of the masses and rapid over-all industrialization.
The per capita consumption of rubber in India only 800 grams against 12 to 14 kilos in Japan, USA and Europe. This envisages tremendous growth prospects of the industry in the years to come as India is far from attaining any saturation level, so far as consumption of rubber products is concerned.
Range of Products
The wide range of rubber products manufactured by the Indian rubber industry are
automobile tyres automobile tubes automobile parts footwear beltings hoses cycle tyres and tubes cables and wires
battery boxes latex products pharmaceutical goods
The products manufactured also cover hi-tech industrial items.
The important areas which the industry caters to include are All the three wings of defense
India's exports of rubber products, including tyres exceed Rs.2000 Crores.
The range of products exported are
Automotive tyres and tubes Rubber and canvas footwear Cycle tyres Pharmaceutical goods Rubber hoses, cots and aprons Belts and beltings Sheeting
These products are exported to over 85 countries, including
USA Germany France U.K. Italy UAE Saudi Arabia Africa Afghanistan
Market Influencing Factors The rubber production fluctuates between months and it is normally low during the rainy season. Growth in industrial production: automobile industry. The ratio of utilization of domestic production and imported rubber by tyre manufacturers. Government policies have a profound influence on rubber prices. These include subsidies, restrictions on ports etc. International rubber price movements, have a slow influence. Stockists and speculators also play a significant role in influencing prices.
KEY PLAYES IN KERALA
Deluxe Rubber Industries: Deluxe Rubber Industries is a leading supplier and manufacturer of all types of ebonite rollers and industrial rubber rollers for the past 40 years and the company has a long list of satisfied customers in different states of the country. Some of their products in the rubber industry includes plastic machine roll, steel rolling mill roll, paper mill roll, textile roll, mini off-set printing roll and other printing rolls. In their production of rubber, they are using different machines like rubber extruder machine, lifting crane, cylindrical grinder, lathe machine, 3 roll builder and rubber mixing machine in their workshop. Madras Rubber Factory: Madras Rubber Factory shortly and popularly called as MRF is a major manufacturer in the tyre manufacturing industry in India and they are operating from their headquarters in the city of Chennai in Tamil Nadu. The company came into existence in the year 1949 and from the year 1952 they have ventured into the manufacture of tread rubber. In the year 1995, the company earned the Top Export Award from the All India Rubber Industries Association of India. Rubco: The Kerala State Rubber Co-operative Limited is shortly called as RUBCO and it is a market invention agency of Government of Kerala for processing natural rubber directly from farmers. Right from its inception, the company has been acting as the major supplier of natural rubber to most of the popular tyre companies not only in India, but also in foreign countries. These companies contribute towards the development of rubber industry in India and in India the rubber manufactured by these companies are consumed in the manufacture of different products like bicycles tyres and tubes, footwear, automotive tyre sector, latex and camelback products, hoses and belts and several other products.
2.3 PREDICTED SCENARIO OF THE INDUSTRY IN INDIA
With the saturation in rubber consumption in Western countries and the shift in consumption of rubber to the Asia Pacific region, the focal points for this decade for development will be India. The industry is expected to grow at over 8% p.a. in the coming decade. Taking into account the above prospects, the industry envisaged annual growth rate of 8% and the per capita consumption of rubber at 0.8 kg against 14 kg. There exists tremendous scope for expansion and development in coming years provided basic raw materials, particularly natural and synthetic rubber, are made available in adequate quantity and at reasonable prices.
Asia is now the focus of growth in the rubber industry. All the world's natural rubber is grown in this region namely Thailand, Indonesia, India, Malaysia, Sri Lanka etc. The fastest growing economies in the world are here namely China, India, Korea, Malaysia etc,
World's powerhouse Japan is here. The largest investments in new synthetic rubber plants are coming up in Asia. Production of all auto majors is shifting to Asia, even as consumptionwise Asia's share in the worlds auto market grows.
Highest growth and availability of technically trained manpower for the rubber industry is in this region. While EU and US have now become a saturated market for the rubber industry all the action is shifting to Asia.
Low demand growth for the growth for end products, high labour costs, very strict environmental norms, non availability of NR in the backyard are all propelling the worlds major input suppliers for the rubber industry to look towards Asia.
CHAPTER 3 COMPANY PROFILE
3.1 COMPANY OVERVIEW
GLENROCK RUBBER PRODUCTS PVT LIMITED
Glenrock Rubber Products Pvt Ltd is one of the pioneer companies engaged in the manufacture and export of rubber moulded goods. Established in 1995 on the rubber flourished banks of the Meenachil river in palai, in kottayam district. Their focus in delivering high quality rubber products like rubber mats, rubber tiles and industrial mats in rolls in India .Today Glenrock Rubber Products Pvt Ltd has grown up to become a leading rubber tiles and mats manufacturers in Kerala, India. The company caters to the specific needs of customers in rubber from all over the globe. It has achieved a commendable position in the global market. Innovative products in rubber is its hallmark, Glenrock has developed and supplied about 200 custom made products to customers all over the world.
Company's products ranging from Holomats, Studmats, Stable & Cow mats, Gym & Playground mats, Oil resistant coloured & Black mats, Antifatigue mats, Health mats, Poultry mats,
Golf mats, Dogs & other Pet mats, Pathway anti-skid Interlocking tiles, Horse runner & Side wall mats, Industrial mats and Studmats in rolls etc.
Apart from this, they also produce miscellaneous rubber goods like rubber buckets, engine mountings, bushes, o-rings, automobile components, traffic calming items such as speed breakers, humps, kerbs etc. The patented Rubber Pavement Tile and Roofing Sheets are the latest innovative products in the line of High tech products. In line with international standards, company has a full fledged R&D centre with in house testing facilities for all quality parameters requisite for rubber products. As an ISO 90012008 certified Company; every precaution is taken with regard to quality from procurement of raw materials to the despatch of goods to the customers store.
“To work toward being the proffered source of custom made and high tech rubber products.”
“We at Glenrock shall strive to offer quality products in a timely and effective manner to meet the exacting needs and demands of our customers, through the use of innovative practices and technology.”
3.1.d COMPANY VALUES
“We will work for customer satisfaction as they are the core of our business. We will work as a team focusing on a common goal , communicate openly and treat all individuals with equal respect. We will work innovately by constantly upgrading our skills and knowledge. We will achive our targets in a timely and cost effective manner by increasing productivity and minimizing wages. We will take the appropriate decision within our authority while keeping our superiors informed. We will be responsible for our actions and results”.
3.1.e POLICIES OF GLENROCK RUBBER PRODUCTS PVT.LTD
QUALITY POLICY OF GLENROCK RUBBER PRODUCTS PVT.LTD is to provide cost effective products and services with planned quality, reflected by customer’s confidence achieved through innovation and continual improvement by involving all our employees.
To achieve this goal, all the GLENROCK RUBBER PRODUCTS PVT.LTD plants and cocorporate office pay attention to the following. Product/process improvements by field/plant performance monitoring and prompt service
to the customer Up grading of machinery to meet the increasing needs of the customer Continuous training of all the employees in order to acquire necessary skills and
knowledge. At the plant level the respective senior general manager / general managers are assigned
the responsibility of carrying out the quality systems by collaborating with corporate functions.
SAFETY POLICES OF GLENROCK RUBBER PRODUCTS PVT.LTD
It is the policy of the company that the SAFTY AND HEALTH of the employees shall be the first priority. It is the responsibility of every one in this organization, regardless of the position he occupies, to ensure that everyone in the organization returns home without injury today and everyday. The company strives to observe this policy not only in letter but also in sprit and offer “ACCIDENT FREE SAFE PRODUCTION” for the benefit of one and all.
ENVIRONMENT POLICY OF GLENROCK RUBBER PRODUCTS PVT.LTD is to manufacture the products in an environment friendly and safe manner. To achieve this goal all the GLENROCK RUBBER PRODUCTS PVT.LTD plants ,
together with corporate office shall Minimize the impact of manufacturing activities on the environment especially the air,
water and soil. Comply with all applicable regulatory requirements. Optimize the consumption of resources (water, energy and raw materials) by minimizing
wastage, recovering and recycling wherever possible. Up gradation of the machinery and pollution control requirement when required. Train all the employees to perform their activities in an environmentally responsible land
safe manner. At the plant level, the respective Senior Manager/ General Manager are assigned the
responsibility of carrying out the environmental system by collaborating with company functions.
TRAINING POLICY OF GLENROCK RUBBER PRODUCTS PVT.LTD
provide and develop knowledge skills and behavior of the employees to continuously improve the performance.
To achieve this goal, all GLENROCK RUBBER PRODUCTS PVT.LTD plants together with the office shall
Identify and document training needs of each employee, through competence evaluation
of each year. Design and publish training calendar and schedule. Provide training periodically based on identified needs and as per the documented
schedule. Monitor and evaluate training processes and outcomes to assess and to decide the next
training cycle requirement.
Glenrock have associate establishments supplying all type of Natural Rubber & tools for moulding products always at our services.A full fledge laboratory working round the clock ensures products quality.
Heveacrumb Rubber Pvt. Ltd., is a group owned - professionally managed company. Heveacrumb is one of the leading processors of Technically specified Block Rubber (TSR). More than 30 years of quality service coupled with unmatched customer care has made our company the first choice of our buyers. Heveacrumb specializes in the processing and marketing of specific quality grades of Technically specified Block Rubber (TSR) like ISNR 5, ISNR 10 and ISNR 20. The processing envisions an optimum quality to go on par with any international standards. The company also market RSS at a macro level.
Hevea Operations and maintenance Works (P) Ltd. manufactures moulds for rubber products and machinery such as hydraulic presses, Mixing mills, Rubber mat hole punching machines etc etc... Also supplies machinery for rubber processing such as Electric/Diesel Thermic Fluid Dryers, Creepers, Hammer Mills, Hydraulic bailing press, Pre-breakers, etc.
Glenrock Group owns a guest house in Kerala, "The Misty Mountain Plantation Resort" at Kuttikanam, which is 3500 ft. above sea level, which is located in the District of Idukki, which is on the eastern side of Kottayam District. Located in the Western Ghats, Idukki is amongst the more beautiful areas in Kerala, one of India's greenest states and provide traditional keralite hospitality in a salubrious mountain ambience. These resorts try to take guests as close to nature as possible. Guests of the Glenrock Group are usually accommodated in these resorts.
3.1.f COMPETITION AND COMPETITOR ANALYSIS
KEY PLAYES IN KERALA Deluxe Rubber Industries: Deluxe Rubber Industries is a leading supplier and manufacturer of all types of ebonite rollers and industrial rubber rollers for the past 40 years and the company has a long list of satisfied customers in different states of the country. Some of their products in the rubber industry includes plastic machine roll, steel rolling mill roll, paper mill roll, textile roll, mini off-set printing roll and other printing rolls. In their production of rubber, they are using different machines like rubber extruder machine, lifting crane, cylindrical grinder, lathe machine, 3 roll builder and rubber mixing machine in their workshop. Madras Rubber Factory: Madras Rubber Factory shortly and popularly called as MRF is a major manufacturer in the tyre manufacturing industry in India and they are operating from their headquarters in the city of Chennai in Tamil Nadu. The company came into existence in the year 1949 and from the year 1952 they have ventured into the manufacture of tread rubber. In the year 1995, the company earned the Top Export Award from the All India Rubber Industries Association of India. Rubco: The Kerala State Rubber Co-operative Limited is shortly called as RUBCO and it is a market invention agency of Government of Kerala for processing natural rubber directly from farmers. Right from its inception, the company has been acting as the major supplier of natural rubber to most of the popular tyre companies not only in India, but also in foreign countries. These companies contribute towards the development of rubber industry in India and in India the rubber manufactured by these companies are consumed in the manufacture of
different products like bicycles tyres and tubes, footwear, automotive tyre sector, latex and camelback products, hoses and belts and several other products.
3.2.a OVERALL ORGANIZATION STRUCTURE
A hierarchical organization is an organizational structure where every entity in the organization, except one, is subordinates to a single other entity. This arrangement is a form of a hierarchy. In an organization, the hierarchy usually consists of a singular/group of power at the top with subsequent levels of power beneath them. FUNCTIONS Manager: He is the one who controls and coordinates the activities done by the Assistant Managers or chief officers in each department. General Manager: He is the one who collects all the activities done by the Departmental Managers and sends it to the Chief General Manager. Foreman: They are the technical and non-technical assistants of the company and they are being rated as the lowest grade.
3.3. DEPARTMENT ANALYSIS
The various departments are Production department Quality assurance department Operations and maintenance department Lab and R & D department Shipping (Dispatch) department Security and safety department Marketing department Human resource department Accounts and Finance department
3.3.c.(1) PRODUCTION DEPARTMENT
Among all the functional areas of management production is considered to be crucial in any industrial organization. Production is a process by which, raw material and other inputs are converted into finished products. Production is one of the four major functions of any organization apart from marketing, finance, human resources. It knows how goods and services are produced. It is to understand what production managers do. Production Management refers to the application of management principles to the production function in a factory. It involves application of planning, organizing, directing and controlling to the productions process.
PRODUCTION FUNCTION- AREAS OF PRODUCTIVITY
Improving volume of production Reducing rejection rate Minimizing re-work date. Maintaining delivery schedules Controlling idle machine and manpower hours Controlling overtime Automation Total Quality Management
Production Processes Products are the goods and services produced and processes are the facilities, skills and technologies used to produce them.
A product is anything that is capable of satisfying a felt need. A new product is the one, which is truly innovative and is significantly different from other existing products.
The main functions of the production department in Glenrock in the stepwise manner is explained below
a. Finding Customer requirements
The requirements of customer are first studied and analysed. Various surveys and market study are done for this. After finding the requirements manufacturing the product are scheduled with appropriate specifications.
b. Product development
A sample of miniature of the product is made in the lab according to the specific specifications given by the customer and is then send to the customers for approval. After getting the approval the moulds for the required products are ordered with advance payment. After that the plan for the product production is scheduled.
c. Planning for Production Process
Every month, a monthly plan is given to the plant by central planning department. Based on this monthly plan, production department will prepare a simulation plan by dividing the month in to 3 segments 10days each. The simulation plan for the month is taken as a guideline and each plant plans the production. For each process the available inventory and the priority of dispatch are taken in to consideration while daily schedule is given. Slight changes are made in the simulation plan to reduce the number of sizes running at a time and also to reduce the number of size changeovers with the objective of improving production efficiency.
d. Material Indent and receipt
The daily requirement of raw materials is calculated at each plant after considering the available inventory and the scheduled production for the next day. Raw material indent is made to raw material store. The raw material store makes arrangements to deliver the indented materials at the plant .The receipt of materials is acknowledged to the RM stores by production department by signing all the copies of the transfer / issue certificates. In case of in – process materials, indent is given in advance (1 to 3 days advance) to the concerned plants, which produce that material.
Processing is carried out as per the technical specification, BSP (Basic Standard Practice), and the work instruction of the respective department. Set up verification is done for each product and each run. Once the process is stabilized, the process parameters are checked and recorded. If the parameters are as specification, production is continued. If any parameter is not confirming to
the specified limits, then necessary correction is made and then production process is resumed. Production department ensures that all the necessary instruments and equipments are calibrated by checking calibration sticker on the instrument. Cases in which the instruments are over due for calibration is informed to instrumentation department through „AVO‟ (avoid Verbal Order). The supervisor stops the usage of such equipments depending on the criticality of the system violation.
Whenever a machine / equipments are behaving abnormally, it is informed to the operations and maintenance department. If the process variation is abnormal, production supervisor / quqlity supervisor / technical supervisor stops the production, till the operations and maintenance department rectifies the anomaly and the machine is handed over to production. If any non – conformance is noticed in the product, it is held using NCM (non conforming material) tag. Whenever operations and maintenance department notices a machine behaving abnormally, they request production stoppage through a maintenance request.
g. Production control
The success of an enterprise greatly depends on the performance of its production control department. The production control department generally has to perform the following functions:
Provision of raw material, equipment, machines and labour. To organize production schedule in conformity with the demand forecasts. The resources are used in the best possible manner in such a way that the cost of production is minimized and delivery date is maintained.
Determination of economic production runs with a view to reduce setup costs. Proper co-ordination of the operations of various sections/departments responsible for production.
To ensure regular and timely supply of raw material at the desired place and of prescribed quality and quantity to avoid delays in production. To perform inspection of semi-finished and finished goods and use quality control techniques to ascertain that the produced items are of required specifications. It is also responsible for product design and development.
h. Product Identification and Trace ability
The objective of a product identification and trace ability is to prevent mix up products and to ensure trace ability of products at various stages. The primary responsibility to ensure this lies with production; this applies to raw materials, in process materials and finished goods.
The activity of inspection covers raw materials, process parameters, in – process materials and finished goods. Inspection is done to ensure that the materials, equipment and storage area are free from any contamination. Visual checking is done on in process materials for defects like wrinkles, improper cutting, improper splicing etc. Process parameters like temperature, pressure, water flow etc. are also checked. Visual inspection of product is carried out by concerned employees of production finished
j. Control of non – conforming products During processing, if any non – conformance is noticed in the product, it is held with a NVM tag, which is filled up in duplicate with details like the material that has been held, size/code, defect, quantity held and the location where material is kept. It has separate space for writing down the disposal and also the deposal follow up.
The red copy is tied to the non – conforming material and the white copy is given to production supervisor who in turn gives it to technical department for disposal. The disposal for non conforming product is given by technical department and this is written on the red copy, which is attached to the material. The disposal is effected by production and it is written in the disposal follow up column. After this is done the red copy of the NCM (non conforming material) tag is returned to plant quality assurance office.
k. Corrective and Preventive Action
Corrective Action : when non – conformity is noticed either in process or product immediate corrective action is taken to rectify the defect, so that the process or product is not affected any further. Prevention action : Recurring non – conformities, which are noticed in process by production, quality, technical or operations and maintenance are taken up for discussion in the weekly QA (Quality Assurance) meeting to initiate preventive action in consultation with the concerned departments. In case of occurrence of non conforming process or product due to operational lapse, the concerned people are trained. In other cases, the proposed preventive action is recorded in the minutes of the meeting and the responsibility of implementing it is a ssigned to the concerned departmental person as decided in the meeting. This is followed up in the subsequent meetings and reviewed for its effectiveness. If the preventive action calls for a change in procedure / work instructions, this is discussed in the weekly QA meeting and a joint decision is taken by the department heads.
PRODUCTION PROCESS The main steps in the production process includes a) Issuing raw material from raw material store.
The daily requirement of raw materials is calculated at each plant after considering the available inventory and the scheduled production for the next day. Raw material indent is made to raw material store. The raw material store makes arrangements to deliver the indented materials at the plant.
b) Raw material testing.
The raw materials issued from the raw material store is then tested in the lab to ensure quality and customer specification. The lab should sign the approval document of that particular products‟.
c) Compounding The rubber product manufacturing process begins with the production of a rubber mix from raw and / or synthetic rubber, carbon black (the primary filler used in making a rubber mixture), oils and miscellaneous chemicals. Rubber mixture differs depending upon the desired characteristics of the products being manufactured. Production of the rubber mixture involves weighing and loading of appropriate ingredients into an external / openmixer known as a "Banbury" mixer which is used to combine these ingredients. The area where the chemicals are weighed and added to the machine is called the compounding area.
Masterbatch is the normal way of adding colourant to bulk, uncoloured resin.
It comprises highly concentrated pigment, mixed with a carrier plastic, in a granule/pellet form. The granules/pellets are the same size and shape as natural (uncoloured) resins so are easy to handle (pigments are normally powder or liquid) and mix. e) Refining and finaling The refining process depends upon the specifications of the particular products. f) Sheeting to required size As per the specifications the rubber after the refining and finagling process is sheeted to the required size. g) Moulding With the help of hydraulic press the sheeted rubber is moulded to desired shapes h) Inspection, finishing and packing The initial steps of inspection are carried out in the production department itself, by the staff from the quality assurance department. The following finishing and packing works are done in the quality assurance department. g) Despatch After the final packing and the concerned documentation the last process of dispatch is done by the shipping (dispatch) department.
ORGANISATION CHART OF PRODUCTION DEPARTMENT
Assistant Production Manager
3.2.c (2) QUALITY ASSURANCE DEPARTMENT
Auditing is the heart and soul of quality assurance activity. Based on auditing reportage and subsequent corrective and preventive action, the process stabilizes corrective sand preventive action.
QUALITY ASSURANCE Quality is considered as the most effective tool to improve productivity, to achieve cost effectiveness, to improve profitability and market share and to remain competitive in the global market. In the business environment of toady, quality impacts not only products and services but also many other relevant entities such as process, systems, people and organization. When a person buys our product, he has certain expectations. These are determined by several factors and it depends on intended use of the product. The expectations can be performance , price , dependability , consistency of performance active the product fulfils the customer‟s expectations when it is used, he will be pleased with the product and will say that the product is of food quality . Therefore we can define quality of a product is of low quality. Therefore we can define quality of a product as its ability to full fill the customers, expectations. In other words it is also defined as fitness for use.
Functions of Quality Assurance Department
The quality system requirements of the customers are collected and all efforts are taken to ensure that the requirements are met. This is done employing statistical process control techniques and by training the operators. The main functions of quality assurance department include
To improve the profitability of the company by reducing defects and waste generation
The main function of quality assurance department is process audit and final product
A document called Basic Standard Practice is also available which says how the process
is to be carried out, what are the „do‟s and „don‟ts of each process etc.
Quality assurance department checks whether the process is carried out in concurrence
with the laid down specifications and the basic standard practice.
Whenever a process or product does not meet the specifications, the process is stopped
and the defective products are kept held using a tag called the NCM (Non Conforming Material) tag.
The performance of the products (first quality yield, scrap, seconds and repair level) are
recorded and monitored on a daily basis so that any abnormal deviation can be easily detected and attacked.
Quality assurance also initiates studies for implementing new systems and procedures on
the principle of continuous improvement .FEMA (Failure Mode Effect Analysis is carried out and control plan is also prepared to ensure that the causes of failure are avoided before they happen.
Whenever a tool change is done, the relevant parameters are checked by QA and
certification is done before commencing production.
Whenever new machinery is installed QA carries out the process of industrialization of
machinery, in collaboration with operations and maintenance and technical departments. 10. Audit on suppliers and outside godowns are conducted periodically to ensure that the materials that we procure improve the profitability of the company by reducing defects and waste generation
11. Whenever a finished product is retuned to the factory due to any defect (called new defectives), those products are inspected, and the reasons found out and communicated to everybody concerned. It is then disposed in a suitable manner and recorded.
12. Slow moving and non moving items are checked at regular intervals to avoid material getting deteriorated due to prolonged storage and to avoid producing material which is not needed by the market.
The main processes involved in the quality department are the follows
a) Arrival of Products from Production Department The products arrive from the production department in a sequential manner. A staff from the quality assurance department is appointed in the production centre to check the quality from there itself. b) Sorting of the products The products are further sorted based on their quality and sorted as first grade, second grade etc. They are then transferred to the respective stores with appropriate tagging and documentation. c) Fumigation Fumigation is the process by which a lethal chemical is released into an enclosed area to eliminate infestation of pests. It is used when rubber products are being processed for export in order to rid the goods of exotic pests and organisms.
d) Finishing works All sort of finishing works are done here itself. This includes scrapping off the protruded rubber parts from the rubber products, side trimming, punching for rubber mats and painting any uncoloured area in the finished products. All these works are done by hand by workers, mostly female workers. e) Arranging the products to the specified pallets. After all sort of finishing works the rubber products are arranged in the concerned pallets and packed suitably according to the customer specification. All the pallets are ordered and purchased from the nearby distributers. According to the staff of this department, Australia is the country which gives the greatest preference and accuracy in the pallets and its hygiene. The required documentation processes are also done at this stage. f) Carrying the pallets to the containers The properly packed pallets are then carried to the specified containers and dispatched. Both quality and quantity checking and documentation procedures are done at this stage too.
The risk factor This department claims that they are facing the greatest risk because they have to answer any sort of discrepancy in the product and the customer specification.
The instruction manual The instruction manual gives a quality assurance format to be followed. It is as follows:1. Join the interlocking mats and verify whether the joints are correctly suiting 2. Check the measurement and weight of the product 3. Check the hardness as per the specification given by the customer 4. In case of any doubt about the grade of the product advice from the LAB and R & D is taken to decide the grade of the product.
ORGANIZATIONAL CHART OF QUALITY ASSURANCE DEPARTMENT
Quality assurance officer Quality inspector
3.2.c (3) OPERATIONS AND MAINTENANCE DEPARTMENT
OPERATIONS DEPARTMENT The operation department has the overall control of the whole production process, from the initial step of receiving an order from the customer till responding to the customer feedback. The main activities carried out in this department are a) Receiving order from customers The customers are mostly regular customers. They include both from Indian and foreign. After the enquiry they will give the specification. If the specification requested is available the samples are sent to the customer and get their approval. Otherwise the requested specification is made in the lab and R &D. At the same time the sample of specified moulds and raw materials for it are ordered. After getting customer‟s approval for all these the large scale production starts. b) Control and regulate the production All the production works in the production department are controlled and regulated by the operation department taking into consideration various factors like market boom, recession in world market, current as well as future demand etc. c) Monitor and regulate the production procedure in the industry The production procedure is an interconnected and interdependent function of different departments like production department, quality assurance department, and dispatch & shipping department etc .The sequence of the production function is monitored and regulated by the operations and maintenance department. The whole process is represented in the following flowchart.
RECEVING CUSTOMER ORDER
CHECKING THE CUSTOMER SPECIFICATION
IS THE CUSTOMER SPECIFICATION AVAILABLE NOW
THE SPECIFIED SAMPLE, RAW MATERIAL AND MOULD ARE ORDERED
THE SAMPLE OF THE RAW MATERIAL IS MADE
THE SAMPLE OF THE RAW MATERIAL AND PRODUCT IS SEND TO THE CUSTOMER FOR APPROVAL
APPROVAL OF CUSTOMER
MAKING THE SUITABLE IMPROVEMENT
LARGE SCALE PRODUCTION STARTS
MAINTENANCE DEPARTMENT The functions of maintenance department are divided into mechanical, electrical, instrumentation, civil and environmental maintenance. The main functions are new machinery lay out preparation, erection and commissioning of new machinery , preventive maintenance , break down maintenance , condition monitoring , and over hauling of machinery and other related equipments. Erection , commissioning , operation and maintenance of utility items like generator , boilers , compressors , pumps, freezer , lines and cooling towers and maintenance of material handling systems like lift , hoist , check block , gantry and forklifts are done by operations and maintenance department . The maintenance of equipments at pump house and training centers are also done.
Mechanical Maintenance Preventive Maintenance: All equipments that need preventive maintenance are listed out. It is ensured that equipments history and manuals are available for all machines. A preventive maintenance schedule is prepared after a careful analysis of break downs in the machine and based on the personal experience of the maintenance personnel. The annual maintenance personnel scheduled thus prepared is divided in to weekly schedules.
Preventive maintenance schedule for the particular week is taken and the necessary materials, tools, manpower and spares are arranged. Necessary clearances are obtained and the machine is released for maintenance. The scheduled maintenance activities are carried out based on work instructions and experience. Then the machine is checked and handed over to production.
Based on the number and nature of breakdown in each machine during the year, the preventive maintenance schedule is reviewed and new schedule is prepared for the next year.
Breakdown Maintenance: Glenrock have a PPM (plant preventive maintenance) facility for handling the breakdown maintenance. All the machines and plants are thoroughly checked daily before the daily production and corresponding functioning starts. The time consuming maintenance works are done on Sundays. Glenrock have in–house maintenance experts. The defective machinery is identified either by production or by operations and maintenance department, and repair request is generated. After that arrangements are made for tools, maintenance personnel and spare parts. The machine is then released for maintenance .The required maintenance job are carried out and the machine is thoroughly checked. If the machine is OK, then it is handed over to production. Otherwise necessary corrections are again done. Major break down maintenance works are done outside, either from kottayam or eranakulam. A through feasibility study with sufficient comparison is done before the maintenance work starts. Procedure followed for repairing For repair of equipment and machinery, intend is raised and it is authorized by operations and maintenance manager and item is send to the party from operations and maintenance store through gate pass. The item is dismantled and the exact nature of the work to be done is finalized and quotation is raised by the outside party. This is communicated to the intender. After getting the approved repair quotation from the intent/department, necessary work order is released by purchase department. Copies are distributed as in the case of spares. Indenter has to follow up the repairs of the
machinery and again when it comes back after repair; it is routed through operations and maintenance store. Every month, down time analysis is done and permanent corrective actions are initiated in case of recurring facilities. Instrumentation When a new instrument is purchased, it comes to the operations and maintenance stores. They intimate instrumentation department about the receipt of the instrument. The material is received and commissioned as per the instructions in the instruction manual. The necessary calibration is done before instrumentation and is handed over to production or testing. In case of any problem with the running machinery, in the area of instrumentation, it is communicated to instrumentation department and it is corrected.
Civil engineering and maintenance Civil engineering and maintenance department does the work of preparation of project proposals. Drawings and estimates as per requirements for construction and extension of new factory, buildings, equipments foundation, plant offices (aluminum partitions and false ceiling) construction of cable and pipeline trenches. Construction of roads, storm water drains and site development work 9 using mechanical means). Maintenance of all civil structures is the function of civil operations and maintenance. Periodic repair of concrete floor ,A/c sheet roofing‟s and valley gutters , maintenance of plumbing and sanitary fittings such as toilets , washing facilities etc., de –silting of storm water drains and annual repainting of buildings (white washing and colour washing )are the maintenance activities.
Environmental maintenance This branch of maintenance is mainly concreted with monitoring of factors which affect environment (as a result of manufacturing activity) and findings ways by which they are minimized or eliminated. Water pollution, air pollution and sound pollution are the main factors that come under the preview of environmental operations and maintenance in the present context.
Water Treatment: Effluent water is sent into anaerobic digester (where it does not have any contact with air). Here 85% to 90% suspended solids settle down to form the sludge. The water from which suspended solids are removed and then sent to an aerator and clarifier where 90% to 95% of suspended solids are removed. This is then chlorinated and it is called treated water. Treated water is used for roof cooling and for irrigation .300 kiloliters of water is treated per day in this process. Another 300 kiloliters of water is treated per day using a parallel process which is as follows – Effluents are sent to SAFF (Submerged aerated fixed film) tank where a bio film is developed on PVC media. Diffusers provided below the media aerate the systems. This leads to a reduction of 90% to 95% of suspended solids. It is then parallel plate separator tank where the suspended solids are further removed. It is then chlorinated and used for roof cooling and irrigation. A wet land is also crated on trial basis where the effluent water is aerated by the roots of a special type of reed (plant) which degrades the organic matter and thus purifies water. The capacity is 20 to 25 liters of water per day.
Air Pollution is being monitored by engaging and outside agency. Particulate matter in air is measured and compared against standards of permissible levels.
Sound Pollution is measured in terms of decibels and compared with the standards of permissible levels. This is done at specified spots twice a year.
Other sub-departments under operations and maintenance department. 1.) PLANT PURCHASE DEPARTMENT The items purchase by the plant can be categorized under four heads namely; Items which come under the head capital expenditure. Items which come under spares parts.(non capital expenditure) Stationery and miscellaneous item Services ( repairing of machinery )
Procedure followed for purchasing Any person who needs a material can make a purchase requisition but it has to be authorized by the department head. In case of items involving capital expenditure, it should have capital authorization number. In case of plant spare parts of non-capital nature, this is not required. Based on the indent, necessary quotations are invited and purchase orders are released. The copy of the purchase order is send to the supplier, intender, accounts, stores, to office of production operations and maintenance manager and a file copy of plant purchase.
2) RAW MATERIAL STORES Raw material stores will receive a copy of the raw material requirement for the month which is prepared and sent by production department. This is also sent to central planning and central purchase department. Based on the requirement, central purchase department arranges for procurement of materials and issues a delivery schedule to the production department. Delivery schedule is the schedule by which the supplier will release the specified quantity of material at the specified date to the production department.
Raw materials, consumables, fuels etc are received at the factory gate in line with the delivery schedule and purchase orders .The documents are verified to ensure that the materials are from approved sources and the correct quantity as ordered is delivered. Weighment of the load is done properly .GAE (Goods arrival entry) is made and the load is redirected to the unloading point through the security department. The unloading point is usually the raw material godown, but some times the materials are unloaded at the plants where it is consumed. In the case of fuel, oil etc it is unloaded at the storage area.
Sample transfer/ visual inspection report is prepared and samples are collected for testing as per the documented sampling plan. The sample bag is identified and the sample is sent to lab for testing. GRN (goods received note) is prepared at this point.
After testing the samples, Lab and R&D department informs the test result through the material release/ rejection /hold note printed at the bottom portion of the sample transfer/visual inspection report. Based on the test result, green coloured sticker captioned “O.K “ is affixed if the material is OK , red colour sticker captioned “REJECTED” is affixed if the material is not fit for use and ORANGE colour sticker captioned “HOLD” is affixed if it needs further tests to arrive at a concrete decision. Materials are issued to production as per the indent by production in each plant. Stock inventory and stock status report are prepared every month. Rejected materials are send back to the suppliers and the cost is recovered. Transferring of materials to other plants is also monitored.
3.2.c (4) LAB AND R&D DEPARTMENT
It carries out testing and R&D activity and the results of their activities are transferred to the production department. Main activities carried out 1. 2. 3. 4. 5. 6. 7. New product development New compound development Designing and inspection of new moulds Selection & Evaluation new and alternatives materials. Selection & evaluation of alternative materials Finishes product listing & analysis Arresting plants in problem solving.
Raw materials testing Raw materials are tested as per BSP (basic standard practice), standard test procedure and is compared with the specification issued by corporate technical. If the material confirms to the specification, the material is released for production .If the material does not confirm to specification, more samples are tested and released if it is OK. If any of the re – tested samples are not OK, then the samples are sent to corporate lab and the material is accepted or rejected based on corporate advice. If the material is rejected, then raw material rejection note is prepared and the material is returned to the supplier by raw material stores. Positive recall This is a process in which raw material / work – in – process materials are released for production without testing in case of urgency. In such cases, head – plant technical will issue letters to stores, production and quality assurance with all relevant details.
In – Process material testing In process materials are tested by technical as per the plan to check whether any deviation from the specification has happened either in the material used or in the process. Finished product testing Finished product testing is done both in the plant and lab. This is done to ensure that the product produced confirms to the required standard Process control Process control is effected by surveillance checks or tests conducted regularly. The data generated during tests and surveillance audits are used to control the process. Changes are made if required in the specification to achieve process ability targets. The changes are documented through plant change letters. If there is any problem, the process / product will be analyzed for variations in raw material, or process conditions. Any deviations found will be corrected or alternative source of raw material will be tried. Process will be repeated to check whether it is OK. New product introduction Whenever a new product is introduced, a TPOR (Technical Programme opening report) is received from R&D department along with specifications, project schedule and new size production plan. Based on the TPOR, a micro plan will be prepared by Head – plant technical in –charge who prepares the activity plan. Plan specification is generated based on the specifications. Trail production is scheduled and products are manufactured under follow up. Analysis of the finished product is done and necessary corrections if any are incorporated into the specification. The product is released for re –evaluation or for completion of the project schedule. The product is sent for in – plant testing, corporate testing and performance report is published. Based on design review by the connected product group, bulk evaluation is published. Then if it is satisfactory, the product is released for regular production in consultation with technical heads, and is documented through a TA (Technical authorization) or PCL (plant change letter).
Heat operations and Maintenance Heat operations and maintenance is a process by which we arrive at the curing specifications and fix cure time. Validation of cure time is also done periodically to find out whether any variation has occurred compound properties which necessities a change in cure time. Below point study and thermocouple study are normally used as tools in heat operations and maintenance. Control of non–conforming product Non – conforming materials should be disposed in a suitable manner.Non conforming materials are tied with a red tag ( Non conforming material tag) which contains all the relevant details like the Glenrock code of the held material , quantity ,reason for holding , date and shift of production , date and shift of holding etc. Lab staff in-charge in charges reviews the non – conformance and takes a decision on the method of disposal and this is recorded on the non conforming materials tag. The disposal is then followed up by production. Main machines used in lab 1. Rheometer 2. Tensile strength meter 3. Sample cutter 4. Specific gravity balance 5. Abrasion tester 6. Muffleur furnace 7. Hydrolic presser 8. Mixing mill 9. Raw material weighing machine 10. Grinder
ORGANIZATIONAL CHART OF R & D AND LAB DEPARTMENT
R & D Officer
Quality Control Officer Assistent Quality Control Officer
3.2.c (6) SHIPPING (DISPATCH) DEPARTMENT
Finished goods will be received from inspection /packing area of the quality assurance department sidewise, batch wise or lot wise on the basis of production transfer note. Physical verification of goods is done and receipt tags are put. Proper storage and identification of finished goods is the responsibility of the shipping department.
Finished goods will be stored sidewise on pallets with transfer slips showing the size, quantity, date of receipt etc. Stalking norms for finished goods wherever specified will be followed.
Production department will give the production stimulation plan for ten days period and allocation for ten days period will be given by central planning based on marketing requirements. Shipping department will publish daily dispatch simulation plan. Copies of daily dispatch simulation plan will be sent to production planning, central planning and QAD (Quality Assurance Department). Daily dispatch plan is prepared based on simulation plan, allocation plan and urgency as intimated by central planning/marketing, transportation time required, availability of truck, shelf life of the product etc. Trucks are ordered based on the daily dispatch plan. Trucks are checked before loading to ensure that damages will not occur to goods.
Loading bay form is prepared based on daily dispatch plan and materials are brought to loading bay with dispatch slips, which are checked for quality, quantity, size, batch etc and if found OK , materials are loaded into the truck. First in first out principle is followed while dispatching. Based on loading bay form, TM (Transfer Memo) and allied dispatch documents covering excise, sales tax etc are prepared and given to carriers and “way bill” acknowledging receipts of goods is received and documented.
Shipping will publish daily shipping report wherein finished goods inventory as on date, daily cumulative receipts and dispatches are shown. Copy is sent to production planning.
Daily production receipts and transfer are fed in to the computer and reports are generated. Daily details are transmitted to Central Planning/Marketing and data are consolidated for report generation and monitoring. Allocation vs. dispatch report is published for every ten day period or otherwise as required and sent to Central Planning, Production Planning, Plant Head etc,
Non-moving /slow moving items report is published monthly and distributed to Central Planning, QAD, Production Department Head, and Marketing etc. Shipping co-ordinates with central planning to get allocation for non- moving and slow moving items.
Statutory registers & returns as required are properly maintained and submitted. New defective products are brought for repair from outside godowns and inspection by central authorities are made. They are dispatched after necessary repairs. Arranging sales tax permits from H.O is a shipping department function. Preparation of sales tax declaration and road permits are also done
Central excise/ sales tax rules and regulations are observed and prompt payment of duty is ensured.
ORGANIZATIONAL CHART OF DISPATCH DEPARTMENT
3.2.c (6) SECURITY AND SAFETY DEPARTMENTS
The main responsibility of this department is to safe guard company property. This includes safe guarding the men, material and machine to prevent theft and to maintain good public relations. The inflow and outflow of inventory and personal are regulated and monitored by security department.
Safety departments The factories Act 1948 say that a safety department is a must in all organizations where the numbers of workers is more than 500. Hence it is a statutory requirement. This department takes care of plants safety. It identifies the causes of accidents and creates awareness among the employee for reducing accidents. Glenrock has one safety officer to prevent accident and to achieve and assist the management which includes top level manager to menial workers. Glenrock strictly follows all the rules and regulations for accident free safe production. At Glenrock the Production Manager is responsible to implement the safety policy at manufacturing level. This responsibility has been further re- delegated to Department Managers or Department in Charges, plant managers and supervisors or assistants.
ORGANIZATIONAL STRUCTURE OF SECURITY DEPARTMENT
3.2.c (7) MARKETING DEPARTMENT
Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others. For a managerial definition, marketing has often been described as “the art of selling products”. But people are supervised when they bear that the most important part of
marketing is not selling. Selling is only the tip of the marketing iceberg. Peter Drucker a leading management theorist put it this way: “Their will always one can assume, be need for some selling. But the aim of marketing is to make selling super flows. The aim of marketing is to know and understand the
customer so well that the product or services fits him and sells it. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available”.
Rubber market in kottayam The rubber industry of kottayam is one of its most important industries, accounting for the major amount of rubber production in kerala. Rubber is the major agriculture product of kottayam and almost 90% of the total rubber production in india is accounted by the state kerala. The rubber industry in kottayam also provides employment to a large number of people of this region. Almost 15% of the total industrial units are engaged with the production of rubber in kottayam.
Changanassery is home to training centre, common facility service center and field testing laboratory for the rubber and plastic industry. The chief aim behind this project is to improve the techniques and method that are adopted for the rubber production and processing in kottayam. Ettumanoor is the base of rubber production cum training center of the central government. The manufacturing industry in kottayam are in turn of two kinds, based in the type of raw material that are used by the industries.
One set of industries that are engaged with the process of rubber and include mostly the centrifugal factories, the crumb rubber industries and industries engaged with creaming of rubber. These industries are mainly known as the capital intensive industries and produce tubes and tyres, eraser, automobile parts and molding goods.
The other group of industries are engaged with the manufacture of rubber. These industries base themselves on dry rubber or latex.
Apart from these, the manufacturing based industries are further divided into two categories based on the type of raw materials used by them. One section depends on latex, for the production of balloons, gloves, rubber band and latex foam. The other section use dry rubber sheets for the production of tubes and tyres, erasers, automobile parts and molding goods.
The world bank has conceived of a project by which it would finance these manufacturing industries. A total of 35,000 products could possibly made by the manufacturing industries of rubber. For the purpose of rubber processing in kottayam, some of the latest techniques are utilize. The establishment of the rubber tyre industry in kottayam has resulted in the growth of the rubber industry as whole and has also increased the rubber production. The rubber Board, which is a research institute owned by the central government, is situated at kottayam. Apart from being a major producer, Kottayam is also one of the most important traders of rubber abd rubber products. There are some major rubber industries in kottayam, which form the basis of kottayam rubber industries. These rubber units are listed below Rubco. Midas Rubber Pvt. Ltd. Intermix Factory. Glenrock Rubber Product Pvt. Ltd. MRF Ltd.
Products of Glenrock Rubber Product Pvt. Ltd. Products of Glenrock rubbers were earlier marketed under the brand name „stomper‟. But now it is marketed in the same name – „Glenrock rubber products‟. There are mainly two types of market for Glenrock rubber products – local/ indigenous market and foreign /export market.
Local/indigenous market Local or indigenous market consumes about 7 % of the products. Local market includes marketing in almost all districts in Kerala and states like Tamil nadu, Karnataka, Maharashtra, orrisa, Bihar etc. the suppliers of the marketing department supplies in the local market. Revenue from the local market is comparatively low.
Foreign market Foreign market consumes about 93 % of the products. The major countries to which Glenrock exports are Ireland, Australia, Leabanon,USA, Nepal, Germany, Spain, France, Newzealand, Australia, South Africa. The following gives the chart of export percentage to different countries.
Percentage Of Export Country Wise
40% 35% 30% 25% 20% 15% 10% 5% 0%
Percentage Of Export Country Wise
Advertisement The major means of advertisement are advertisements in journals, magazines and websites in the particular field, conducting stalls in foreign countries etc. For marketing Glenrock depend on direct marketing and the facilities provided by ecommerce. For the marketing needs in foreign countries staff from this department visit foreign countries often.
Functions The main functions of the marketing department can be summarized as Customer identification Contract review Customer feedback Complaint handling
ORGANIZATIONAL CHART OF MARKETING DEPARTMENT
3.2.c (8) HUMAN RESOURCE DEPARTMENT
Of all resources, the “Human Resources ‟‟ is the most significant and the only active factor of production. All other factors like capital, materials, plant and machinery etc. remain inactive unless there are competent people utilize them for producing good sand services designed by the society. Major Functions of HR Department 1. Recruitment and Selection 2. Performance Appraisal 3. Industrial Relation And Labour Management 4. Disciplinary Actions and Proceedings 5. Statutory and Non Statutory Welfare Measures 6. Training 7. Contract Services.
In the case of management staff, the functions of recruitment, selection, and placement is done by corporate HR department. Vacancies are notified as and when they occur in the Leading news papers. Introduction and orientation is given by plant HR. This is to align the objectives and goals of the individual with that of the company, so that the synergy produces benefits to the company as well as to the individual. In the case of workmen, selection is done by plant HR department through an
interview. Then they are given introduction and orientation before being sent to the plant for on the job training. Introduction and orientation for workmen is given for one day in which they given inputs on the following. Recent trend in recruiting workers is hiring workmen from other states on contract basis. The major states from workmen are hired include Bengal, Orissa, Bihar, Assam etc.
Workers are selected at 100% merit basis. Experience is considered as an additional qualification .GLENROCK provides the tradition of selecting the relatives of the existing employees wherever vacancy arises provided the relative is fit and suitable for the job. The main procedures in selection process involves 1. 2. 3. 4. 5. 6. 7. 8. 9. Application Blank Antecedent Verification Medical Checkup Blood Group testing Reference Letter Recommendation Letter Physical Examination Selection Interview Appointment
TRAINING POLICY OF GLENROCK RUBBER PRODUCTS PVT.LTD Identify and document training needs of each employee, through competence evaluation
each year. Design and publish training calendar and schedule Provide training periodically based on identified needs as per documented schedule. Monitor and evaluate training process and outcomes to assess and to assess and to
decide the next training cycle requirements.
Procedure for Training HR department maintains records of education, experience and training of all personnel. Departmental heads along with the section heads determine the necessary competence required for the personnel whose work affects product quality. The competencies of those who perform significant jobs are evaluated and the area in which training is to be imparted is determined for those who fall below the competency level. The details are send back to the HR department by the concerned department heads.
HR consolidates the training requirements and training calendar is prepared. For external training programs wherever required HR arranges the approved training programs. Internal training programs are conducted with either internal or external facilities. Training programs are conducted in accordance with the identified training needs of the employees and also the company needs (wherever required). Training details are recorded in the training register. The details of the training program attended by each employee are entered in the database after the training program. Wherever feasible, per training and post training tests are conducted to evaluate the effectiveness of the training programs. Wherever pre and post training tests are feasible, training evaluation forms are filled by the participants and sent to the HR department. New entrants are given orientation training as per the Orientation schedule. Monthly reports of the training activities are sent to department. HR.
Mode of Training
1. Knowledge Based Training ( Conceptual Training)
This training comprises of training processes known as conceptual training. In this method, the employees are taught they are implemented in the organization so as to improve the proper functioning of the organization. 2. Skill Based Training
This type of training includes mainly technical training. On the Job training This training is usually meant for work place as well as supervisors. This included activities, assignments, operation, machinery etc.
Off the Job Training This type training is usually given to all employees from General Manager to Workmen. This consists of: 1. Class room classes: this method is used to impart information regarding the technical aspects of each process
2. Training: The employees are informed about the safety habits to be done.
3. Quality Training: This is based on improving the quality. This included brain storming sessions. a. Meetings: This included Quality management review to highlight targets etc. Seminars Workshops
b. Behavior Based Training This is mainly used to improve the personality development of the employees the topics covered are:
Leadership Team Building Inter Personal Skills Self Development Ethics Assertiveness Motivation & Communication
4. External Training In this type of training outsiders are brought to give training to the employees of the company.
5. Intra Department training This type of training is emphasized at the importance of knowledge, of topics of mutual concern among the various departments of the organization. The training normally involves inside the organization. TIME OFFICE The time office comes under HR department. It keeps track of the attendance of the employees. The time office carries out the following functions. Attendance details Leave details Wage calculation Daily reports
Attendance is very strictly provided in the organization. Attendance is marked and signed by the employees. LEAVE Leave for employees are given as per the factory act. An employee is supposed to work for a minimum of two hundred and eighty days in a year. For every twenty working days there is a leave. The leave facility include earned leave and privilege leave. FILE MAINTENANCE The HR department is responsible for storing and safe keeping all personnel files and records. These are stored as per the number wise of employees. Personal files are maintained for all employees including management, staff, workmen, and laborers. They are kept in shelves so that they can easily retrieve when required. OTHER FUNCTIONS Ensuring compliance by contractors regarding statutory requirements like ESI,PF ,upkeep of various registers , submission of periodic returns, payment of minimum wages etc.
WAGES AND SALARY ADMINISTRATION Wages of the workmen is fixed based on the long term agreement. It is paid to the workmen based on the work done on each day as piece rate system. The work done on each day is recorded on work sheets and is routed through time office to the accounts section where wages is to be paid are calculated and paid. Wages to be paid for the casual workmen is fixed and revised from time to time. PERFORMANCE APPRAISAL In case of management staff, salary is fixed as per corporate HR. Plant HR co-ordinates the periodic appraisal of performance which is the basis of attendance and this is monitored by time office which is a function of HR. Time office does the functions of time keeping, attendance monitoring and upkeep of leave records. ALLOWANCE The workmen are provided dearness allowances, fringe benefits, bonuses and other payments according to the rules and regulations of the company. There are also overtime wages and attendance bonuses. Overtime bonuses are given to a person who normally works beyond their time, such as lunch time, night shifts etc. Allowances include attendance bonuses. PROMOTION AND TRANSFER Promotion means shifting an employee to a position in the same hierarchy. This may be due to seniority and performance. Promotion depends upon the parameters such as seniority, merit, suitability of the job etc. For an employee transfer from the organization he is paid his gratuity benefits as required by statutory standards. A farewell party is given to the employees. He is paid his benefits that he can get from the organization. DISCIPLINARY ACTIONS Absenteeism is dealt in Glenrock in a very strict manner. An employee who absents himself regularly is fist called and advice to improve the attendance. After that if he is not improving , a show cause notice issued and asked for written explanations, which has to be submitted within 48 hours of notice . If here still continues to be absent, he is issued a first warming,
then a second warming. After this he will be suspended and if he still has not changed, he will terminated. This procedure also applies for action against violations like quality violation / compounding violation.
Labour welfare is the statutory code controlled by the Factories Act for the benefit of the employees within the exiting industrial systems, working and sometimes living and cultural conditions of the employees beyond that which is required by the law, keeping in par with the custom of the industry and the conditions of the market.
Labour welfare aims at proving the physical, psychological and general well being of the working population. Labour welfare officer takes care of the physical and general well being of the employees.
The Functions of the Welfare Officer is as Follows To maintain harmonious relationship between the factory management and workers by establishing contact and holding consultations. To notice the grievance of the workers to the management and act as a liaison officer between manager and labour. To study and understand the problems of labour at work place in order to help the factory management to shape and formulate labour policies to the workers in their language. To help the factory management to ask relating to the training of new workers , Apprentices , supervisors and control of notice board and information bulletins to further the education of workers and to encourage their attendance at technical institutes. To advise on provision for welfare facilities such as Housing facilities, food stuffs, recreational facilities etc. To promote the relation between the concerned departments of the factory and workers, this will bring about efficient productivity. And to advise the workers to adapt or adjust themselves to their working environment.
To watch industrial relations in a view by using his influence in an event of dispute between factory management and workers and help to bring down settlement by persuasive efforts. To encourage provisions for amenities such as Canteen, shelters, Drinking water, Benevolent scheme in payments, Pension funds, gratuity payments granting and legal advice to the workers. To assist and help management in achieving the objectives. Suggest the workers to raise their living and to promote their well being. To study absenteeism and labour turnover and to take strict measures to prevent them.
Every employee and his family members are covered under some or other Health Scheme based on the wage package. At the moment if it is below Rs.7,500/- they will be covered under ESI Scheme. If it is above the limit then a special Medical Insurance Scheme is arranged for them covering the expenses in connection with Hospitalization and personal accident.
OTHER WELFARE FACILITIES
Loans are given to employees to purchase vehicles for themselves. Basic essential facilities such as food, shelter, sanitation, recreational facilities, reading facilities etc are also provided. Workers in the factory are provided with safety gloves, shoes, masks for the accident free working environment.
The officers visits the houses of the employee as per the convience which includes general visits, visits based on problems visits , courtesy visits, weddings, functions, funerals and
other need based visits. Such visits help the shop floor personnel to understand the cause of the employee‟s behavior for any problem committed by him. Even the disciplinary proceedings for absenteeism and other violation are proceeded only after hearing the report based on such home visits.
The canteen is also run under the human resource department. Quality food twice a day with snacks and tea is provided to the employees through subsidized rates.
ORGANIZATIONAL CHART OF HUMAN RESOURCE DEPARTMENT
Human Resource Manager
Human Resorce Officers
3.2.c (8) ACCOUNTS AND FINANCE DEPARTMENT
FINANCE Finance is one of the major elements, which activates the overall growth of the economy. Finance is the lifeblood growth of the economy. It will knit financial systems directly contributing to the growth of the economy. FUNCTIONS OF FINANCIAL MANAGEMENT Estimation of financial requirement of a firm. Selection of right and appropriate sources of funds for raising the funds. After selecting the right source, rising of the funds required by the firm. Effective working capital management to ensure smooth running of business. The financial management also ensured fulfilling social obligations of business.
.According to J.F.Bradley “financial management is the area of business management devoted to a judicious use of capital and a careful selection of sources of capital in order to enable a business firm to move in the direction of reaching its goals.
OBJECTIVES OF FINANCIAL MANAGEMENT
Maintaining of adequate liquid assets. Maximization of profit. Maximization of wealth.
Financial Institutions refers to those business organizations who play the role of surplus mobilizes, credit providers and bodies that provide various financial services. This department keeps accounts of all the financial transactions of the company. The accounting period of Glenrock Rubber Products Pvt.Ltd is from October 1st of one year to September 31st of the next year. Glenrock Rubber Products Pvt.Ltd has a fully computerized
accounting of production unit starting from the issue of goods received to the final documentation is computerized. Funds obtained for capital structuring from both internal and external sources. The internal sources include capital reserved debentures; shareholders etc. and the external sources include banks such as SBI, Canara Bank etc. The strategy that the company has adopted is to go for credit transactions and payment will be made with in one month time. Account manager is in full charge of various activities done by the accounts departments he verifies functions done in each section. He takes decision for maximizing the profit and minimizing the expenses. All the costing, taxation, salaries and wages, fringe benefits, turnover details etc are computed and posted periodically. The functions of accounts department been divided into: Financial Accounts Cost Accounts Wages and Salaries Sales tax
Financial Accounts This branch deals with all types of cash payments and receipts. This will include payment for operations and maintenance and raw material purchase , petty cash payments , operation and reconciliation of bank accounts , payment to the government in the form of taxes and levies , payment of PF, deduction from salary and payment of loan outstanding and insurance premium of employees , freight payments , payment in lieu of travel bills of employees , canteen expenses, payment to contractors , payment of leave travel allowance, medical reimbursement etc. Cash receipts in the case of scarp sales and any other cash receipt will also come under this branch of accounts.
Cost Accounts This branch deals with forecasting, budgeting, analyzing and reporting the income and expenditure of the company. The budget for expenditure is prepared using standard costing principles and it is compared with the actual expenditure. Any variation from the budget (whether positive or negative) is analyzed to find the exact reason and it is reported to the top management. Wages and salary Computation of wages and salaries is done by this section of accounts department. Wages of workmen are fixed in the long term agreement and is calculated on a daily basis depending on various factors like grade, number of hours worked , the output achieved etc.. It is paid to the workmen based on the work done on each day as piece rate system. The work done on each day is recorded in work sheets and it is routed through time office to the accounts section where wages to be paid are calculated and paid. Wages paid for the casual workmen is fixed and revised from time to time. In the case of management staff, salary is fixed by corporate HR .Production HR coordinates the periodic appraisal of performance which is the basis for salary revision. Salary for staffs are paid on the basis of attendance and this is monitored by time office which is a functions of timekeeping, attendance monitoring and up keep of lave record. Sales Tax All matters related to a sales tax are handled by this section. Monthly returns for the sales tax filed behalf of sales depots. VAT (Value Added Tax) system has been introduced and all matters related to this is also looked after by this branch of accounts. “C‟‟ forms are issued for purchase from outside the state and “F” forms are issued for receipt of goods from depots.
SOURCE OF FINANCE
Share Holders Funds 1 2 Share capital Reserves and Surplus
Loan Fund 2 3 Secured Loan Unsecured Loan
Application of Finance 1 2 3 4 Fixed Assets Investments Current Assets Loans and advances
ORGANIZATIONAL CHART OF ACCOUNTS DEPARTMENT
Chapter 4 SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research.
Strengths: attributes of the person or company that is helpful to achieving the objective(s).
Weaknesses: attributes of the person or company that is harmful to achieving the objective(s).
Opportunities: external conditions that is helpful to achieving the objective(s). Threats: external conditions which could do damage to the objective(s).
Identification of SWOTs are essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.
1. Unique Brand Name 2. Highly Recognized 3. Quality Product (ISO 9001- 2008 Certification) 4. Locally available raw materials 5. Large Reserves 6. Aggressive Marketing Policies 7. Highly Evolved Research & Development wing 8. Computerized system
1. Employee and workers shortage 2. Location of the industry is in a remote area. 3. Marketing focuses on existing customers and not much is done to extend the customer base. 4. Sales promotion/advertisement are not imaginative and efficient. 5. After sales services and follow up is not satisfactory due to shortage of trained personnel.
1. Since the company uses both natural and synthetic rubber to manufacture its products, it has vast opportunities for further product enhancement. 2. The aim of the company is to meet global standards. This provides the opportunity to create world-class products. 3. The company can utilize the railway to transport its materials. Thus they can reduce the overall cost of transport.
4.4 THREAT 1. The cost of raw materials is hiking day by day and product cost can‟t be increased beyond a particular limit.
2. Altering and wavering policies of government in policies like import, export, tax etc is always a threat for the company.
Chapter 5 FINDINGS, SUGGESTIONS AND CONCLUSIONS
The study was conducted for a period of 6 weeks at Glenrock Rubber Products Pvt Ltd, Pala < Kottayam. The main objectives of the study were to learn about the overall operations of the company, its products and services, various departments and also to understand and perform SWOT analysis of the company. Both primary and secondary data were used to prepare the study report. Every departments were visited and the study of major operations,was carried out through direct observation of the plant and interaction with the company staff.
1. Glenrock Rubber Products Pvt.Ltd exports its products to more than 15 countries worldwide. 2. The company is providing good working environment. 3. GLENROCK RUBBER PRODUCTS PVT.LTD have got the following awards All India Rubber Industries Association (Airia) Top Export Awards 2008-2009 Winner Of Capexil Awards 2006 Department Of Industries & Commerce District Award Best Entrepreneur 2000-2001 4. Profit is comparatively low because of the rapid variations in the cost of the raw materials.
1. The company needs to move and update itself according to new technologies in the market to maximize quality production. 2. The company should utilize railways to transport its materials which would reduce the overall logistics cost. 3. More attractive advertisements in Visual Media would help in Marketing 4. Introduce new brand 5. Company should try to produce the raw material (rubber) by their own, rather than depending entirely on the local market. 6. Value added training programs on regular basis would increase responsibility, commitment and sense of belongingness among the workers. 7. More investment has to be made in Research and Development.
Glenrock Rubber Products Pvt.Ltd is one of the main rubber products exporting company in Keralaj. Its location is practically an ideal one because of the abundant availability of main raw material, the natural rubber. The plant runs round the clock with each department playing crucial roles in its smooth running and together they maintain the market leadership meeting global standards. The company offers vast employment opportunities for skilled laborers in the locality and has been the so ever since it started. The HR department of the company takes excellent care of its employees with various schemes, medical care assistances, financial aid and provisions for assistance in developing basic amenities. The company meets all the statutory requirements. Even without any trade union the company ensures that the rights of all workers are fulfilled and demands are met.
Thus, the organization study conducted at Glenrock Rubber Products Pvt.Ltd, helped to gain knowledge and insight into the working of the organization. It helped me to familiarize with different departments in the organization and their functioning‟s. This study helped me to understand the relationship between management principles and practical applications. It also helped me to know the threats and opportunities faced by the company and the industry. I was also able to maintain an amiable relationship with employees as well as with the managers.
DeCenzo A. David and Robbins P. Stephen, Personnal/ Human Resource Management,
New Delhi, Prentice-Hall of India Private Limited, 2008, 3rd Edition
Kothari C.R., Research Methodology, New Delhi, New Age International (P) Limited
Publishers, 2004, 2nd Edition
Kotler Philip, Marketing Management, New Delhi, Prentice-Hall of India Private
Limited, 2004, 11rd Edition
Annual Report of the company
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.