AN ORGANIZATION STUDY ON

KARLUX SPINNING MILL

Summer training report submitted to the

ANNA UNIVERSITY,COIMBATORE
for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

K.PRAKASH

Reg.No:-098001117037
Under the supervision and Guidance of

Dr.V.GOVINDARAJU, M.A., MBA., M.Phil., Ph.D-MMM., M.Com., B.G.L.,

D.L.L.

DIRECTOR

DEPARTMENT OF MANAGEMENT STUDIES

PARK COLLEGE OF ENGINEERING AND TEKHNOLOGY

COIMBATORE-641 659

AUGUST 2010
 BONAFIDE CERTIFICATE

This is to certify that the summer training report, titled AN ORGANISATION

STUDY at KARLUX SPINNING MILL., submitted to the ANNA UNIVERSITY,

COIMBATORE in partial fulfillment of the requirements for the award of Degree of

MASTER OF BUSINESS ADMINISTRATION is a record of original work done by

PRAKASH.K (098001117037), during the period (june to july 2010) of study in PARK

COLLEGE OF ENGINEERING AND TEKHNOLOGY,COIMBATORE under the

supervision and guidance of Mr.V.Govindaraju,M.A.,MBA.,M.Phil., Ph.D-MMM.,

M.Com., B.G.L., D.L.L, Director DEPARTMENT OF MANAGEMENT STUDIES,

PARK COLLEGE OF ENGINEERING AND TEKHNOLOGY, COIMBATORE

and the training report has not formed the basis for the award of any Degree / Diploma /

Associateship / fellowship or other similar title to any candidate of any university.

_____________________________ __________________

DIRECTOR STAFF-IN-CHARGE

Viva Voce Examination held on___________________________

Internal Examiner External Examiner

 DECLARATION

I, PRAKASH.K hereby declare that the summer training report, titled AN

ORGANISATION STUDY ON KARLUX SPINNING MILL., submitted to the Anna

University,Coimbatore in partial fulfillment of the requirements for the award of the

Degree of MASTER OF BUSINESS ADMINISTRATION is a record of original and

independent research work done by me during June-July 2010 under the supervision and

guidance of Dr.Govindaraju.V, M.A., MBA., M.Phil., Ph.D-MMM., M.Com., B.G.L.,

D.L.L, Director, DEPARTMENT OF MANAGEMENT STUDIES, PARK

COLLEGE OF ENGINEERING AND TEKHNOLOGY, COIMBATORE and the

training report has not formed the basis for the award of any degree / Diploma /

Associateship / fellowship or other similar title to any candidate of any university.

Place:

Date : Signature of the student

(K.Prakash)
 ACKNOWLEDGEMENT

I extend my wholehearted thanks to Chairman Dr.P.V.RAVI, M.A(Lit), B.sc.,

B.Ed., Ph.D.,MISTE., Park College of Engineering and Tekhnology for giving me the

opportunity to study in this esteemed institution.

I record my sincere thanks to our Principal Dr.G.MOHAN KUMAR, B.E.,

M.E., MBA.,Ph.D., for giving me the permission to do the project.

I am extremely grateful to Dr.V.GOVINDARAJU M.A, MBA, M.Com,

BGL, DLL, M.Phil, Ph.D, Director, Department of Management studies and

Prof.Dr.M.PRINCE MANICKAM,B.Sc(Agri)., CAIIB., MBA., M.Phil., Ph.D,

Head of the Department, Management studies for their guidance and enthusiasm provided

to me throughout the Project work.

Finally, I express my heartfelt gratitude to my beloved Parents and Friends for

their continuous support and encouragement throughout my project work and I would

also like to acknowledge the help and co- operation rendered by all the unseen hands in

caring out this course of study.

PRAKASH.K
 TABLE OF CONTENTS

Chaptr Description Page

No No

1 INTRODUCTION
2 Company Profile
3 Industry Profile
4 Organisational Structure
Functional departments
5
5.1 Production
5.2 Marketing

5.3 Finance
5.4 Stores
5.5 Human resource
5.6 R&D Department
5.7 Sales Department
6 SWOT Analysis
Findings & Suggestions
7
6.1 Findings
6.2 Suggestions
8 CONCLUSION
INTRODUCTION
INTRODUCTION

KARLUX SPINNING MILL manufactures several kinds of cotton yarns

in cone,in technical specification it is termed as counts which is a unit of yarn specified

by the Textile Industries. The yarn produced here meets the necessity of the local Sizing

units and as well high quality yarns travel all over India through Buyers.

It was established in the year 2007 with a capital of 5 crore. The Managing

Director of the concern is Mr.Karthikeyan.P; he obtained his BE degree under Anna

University, Chennai in the stream of Mechanical Engineering which urged him to

become a Entrepreneur in his relevant stream. The main aim of him to start the Industry

is to establish a major Industry where the competition is less and ofcourse which offers

him a high profit being a monopoly in the local market.

The turnover of the concern is Rs.50Lakh by 2008 and have increased to Rs.75

Lakh as of 2009. The employees of the company are well trained for their work. The

management follows strict rules and regulations. The job done here is very perfect.

India's textile & apparel (T&A) industry (domestic and exports) is expected to

grow from Rs.3.27 lakh crore ($70 billion) to Rs.10.32 lakh crore ($220 billion) by 2020,

according to a research report by Technopak Advisors, a leading management

consultancy.
COMPANY PROFILE
 COMPANY PROFILE

A brief profile of the company is given below:

Name of the Company : KARLUX SPINNERS (P) LIMITED

Year of Establishment : 2007

Address of the company : K.Ayyampalayam,

Palladam(post), Coimbatore-641662.

Installed capacity : 8200 spindles

Nature of the Business : Manufacturing of cotton Yarn in cone

Type of Industry : Textile

Location : K.Ayyampalayam,Palladam

Paid up capital : Rs.4 Crores

Loan from Bank : Rs.1Crores

Product : Yarn

Quality : 40’s,30’s

Number of workers : 100

INDUSTRY PROFILE
 INDUSTRY PROFILE

Product Profile

With its strict operating principles the company manufactures yarns of the

following specification as ordered by the buyer/sizing units.

 40’s count

 30’s count

 20’s count

 10’s count

COUNT = Thickness of the Yarn Produced from cotton

Count >> = Yarn Thickness <<

Manufacturing Facility

With the turnover of around 5 to 10 Million every year, we have equipped with the

latest technology, machineries and devices. We are completely dependent and capable of

producing 30000Kgs every month, (approximately 600bags).

1 Bag = 40 Cons

1Con = 1.3 Kgs

Some of the machinery installed in our manufacturing unit comprises of the following:

 Blowroom Unit

 Carding Unit

 Drawing Unit

 Simplex Unit

 Spinning Unit

 Winding Unit

 Packaging Unit

2.1 RECENT DEVELOPEMENT

The machines are being upgraded every year or so to get the maximum quality

output. Thus the Industry now have upgraded all the units as a part of this measure.

Currently the company is doing business in and around Tamilnadu and is about to start a

Textile mill, a project value of 10 crores which is expected to start its operations by

march 2011. This project is targeted for 2020 ie., the time the textiles industry are

expected to grow by 6.4% from the present market situation.

The company’s growth can be attributed to the untiring dedication, hard work and

professional management of the promoters and executives ably supported by the team of

officers and employees at all levels.

2.2 PRODUCT OF THE CONCERN

The company’s main production is Yarn which is to be upgraded as cloth

manufacturer out of yarn by the quarter month of next year.

2.3 MISSION:

 Be the leader in quality yarn production

 Implementing a worker friendly environment

 Be the leader in innovation and research & development

 Selling goods at the lowest possible price

2.4 VISION:

 Aim to become a world-class company

 Enter into the international company with wide ranging value added

products by implementing strategies and employing the resources

 Optimum use of R&D to improve quality and to give a better value for the

money of the customer

ORGANISATION STRUCTURE
 ORGANISATION STRUCTURE

MANAGING DIRECTOR

FACTORY OFFICIER ADVISOR

SPINNING MASTER POWER HOUSE

SHIFT SUPERVISORS ELECTRICAL

SUPERVISORS

FITTERS
MASTRIES

LABOURERS
PRODUCTION DEPARTMENT
5.1 PRODUCTION DEPARTMENT

A business unit is established for the production and distribution of goods or

services, production management. Under takes planning, organization, direction

coordination and control of the production function be produced at the right time in right

quantity and at the right cost.

PRODUCTION PROCESS

BLOWROOM

CARDING

DRAWING

SIMPLEX

SPINNING
DEPARTMENT

WINDING
DEPARTMENT
The spin plan or the counts to be manufactured will be decided well in advance according

to the market demand or the demands of the customer. Again it depends upon the raw

material availability and balancing of the process in each department.

 Job production

 Mass production

 Small batch production

GINNING

A cotton gin (short for cotton engine) is a machine that quickly and easily

separates the cotton fibers from the seeds, a job previously done by hand. These seeds are

then used to grow more cotton, produce cottonseed oil, or, if badly damaged, are disposed

of. It uses a combination of a wire screen and small wire hooks to pull the cotton through

the screen, while brushes continuously remove the loose cotton lint to prevent jams.

The ginned cotton fibre, known as lint, is then compressed into bales which are

about 1.5m tall and weigh almost 220 kg. Only 33% of the crop is usable lint.

Commercial cotton is priced by quality, and that broadly relates to the average length of

the staple, and the variety of the plant. Longer staple cotton (2 1/2 in to 1 1/4 in) is called

Egyptian, medium staple (1 1/4 in to 3/4 in) is called American upland and short staple

(less than 3/4 in) is called Indian.

BLOW ROOM

Blow room installations consists of a sequence of different machines to

carry out the above said operations.Moreover Since the tuft size of cotton becomes

smaller and smaller, the required intensities of processing necessitates different

machine configuration.
Basic operations in Blowroom :

 Opening

 Cleaning

 Mixing/Blending

 Microdust removal

 Uniform feed to the carding machine

 Recycling the waste

 Opening in blowroom means opening into small flocks.Technological

operation of opening means the volume of the flock is increased while the

number of fibres remains constant. i.e. the specific density of the material is

reduced.

 The larger the dirt particle , the better they can be removed

Since almost every blowroom machine can shatter particles, as far as

possible a lot of impurities should be eliminated at the start of the

process.Opening should be followed immediately by cleaning, if possible in

the same machine.

 The higher the degree of opening, the higher the degree of cleaning. A very

high cleaning effect is almost always purchased at the cost of a high fibre
 loss. Higher roller speeds give a better cleaning effect but also more stress

on the fibre.

 Cleaning is made more difficult if the impurities of dirty cotton are

distributed through a larger quantity of material by mxing with clean cotton.

The raw cotton arrives in the form of large bales. These are broken open and a

worker feeds the cotton into a machine called a "breaker" which gets rid of some of

the dirt. The cotton may not be consistent in quality from bale to bale and samples

will be taken. This machine cleans the cotton of the remaining dirt and separates the

fibres. The cotton emerges in the form of thin "blanket" called the "lap". An

important quantity is called the "tex" which basically measures the mass per metre.

Ideally the tex of the emerging lap should stay more or less the same. The final end

product of the mill, the yarn, needs to be of constant quality and character and this

is achieved by checking the cotton through all the preceding stages.

Tex is the weight in grams of 1 km of yarn

CARDING

"Card is the heart of the spinning mill" and "Well carded is half spun" are

two proverbs of the experts.These proverbs inform the immense significance of

carding in the spinning process.

 High production in carding to economise the process leads to reduction in

yarn quality.Higher the production, the more sensitive becomes the carding

operation and the greater danger of a negative influence on quality.The

technological changes that has taken place in the process of carding is remarkable.

Latest machines achieve the production rate of 60 - 100 kgs / hr, which used to be 5

- 10 kgs / hr, upto 1970.

Purpose of Carding :

 to open the flocks into individual fibres

 cleaning or elimination of impurities

 reduction of neps

 elimination of dust

 elimination of short fibres

 fibre blending

 fibre orientation or alignment

 sliver formation

The two main ways to card fibers are by

 Hand

 Machine
 HAND CARDING

To card by hand, the person carding holds a carder in each hand. The

carder in their non-dominant hand rests on their leg. They place a small amount of

fiber on this card and pull the other carder through, while taking care to catch some

of the fibers. By catching some fibers on the moving card, the fibers are separated,

which allows vegetable matter to fall out, and they are aligned. Once all the wool

has been transferred, the person carding repeats this process until all the fibers are

aligned and the fiber is satisfactorily clean of debris. They then roll up their carded

wool into a neat rolag.

 MACHINE CARDING

Machine carding is done on a device called a drum carder. These

devices vary in size from small to large. Depending on the size of the carder, the

number of rollers varies. In Kitchen type carders, they have two drums, or rollers.

One is small, and used to catch the fibers and feed them in. The other drum takes

the fibers from the first drum, and, in the process of transferring them from one

drum to another, the fibers are straightened out and made more orderly.

In Carding the fibres are separated and then assembled into a loose strand

called sliver or tow. The carders line up the fibres nicely to make them easier to
spin. The cotton leaves the carding machine in the form of a sliver; a large rope of

fibres.

There are two types of feeding to the cards

1. feeding material in the form of scutcher lap

2. flock feed system (flocks are transported pneumatically)

SIMPLEX

In this process the output of drawing is drafted, twisted to make roving bobbin

form.In simplex section, sliver is fed and roving is produced. Finisher sliver is drafted

and very low twist is inserted to form Roving. Roving is final preparatory shape of yarn

in Back process stage, which will be converted into yarn in ring department.

SPINNING

The spinning machines take the roving thins it and twists it, creating yarn which it

winds onto a bobbin. The term "spinning" is sometimes used to denote this final

process in the production of the yarn. This involves attenuating (stretching) the yarn

to the required tex. There by giving the thread strength by adding twist and winding

it on to a bobbin.

There are two main methods

 Mule spinning
  Ring spinning

 MULE SPINNING

The MULE was originally developed by Samuel Crompton from the

"jenny". In mule spinning the roving is pulled off a bobbin and fed through some

rollers, which are feeding at several different speeds. This thins the roving at a

consistent rate. If the roving was not a consistent size, then this step could cause a

break in the yarn, or could jam the machine. The yarn is twisted through the

spinning of the bobbin as the carriage moves out, and is rolled onto a cop as the

carriage returns. Mule spinning produces a finer thread than the less skilled ring

spinning. The mule operated in two stages. In one stage the whole 'front' of the

machine is moved away from the back part stretching and twisting the thread as it

did so. It would move several feet (say 5 feet). In stage two the front carriage

moved back and at the same time wound the stretched yarn on to a bobbin (or cop).

Mules would be placed in lines so that the front of one faced the front of the

next. As the carriages moved forward, towards each other, only a narrow gap would

be left between them for the spinner to walk between. The mules were tended by

spinners, piecers, doffers.

 Piecers would mend broken threads and

 doffers would remove the full cops

Doffing is a separate process. The attendant winds down the ring rails to

the bottom. The machine stops. The thread guides are hinged up. Removing the

bobbin coils thread around the spindle, and placing the new bobbin on the spindle
 firmly traps the thread between it and the cup in the wharf of the spindle. This

done, the thread guides are lowered and the machine restarted.

 RING SPINNING

Ring spinning is a method of spinning fibres, such as cotton, flax or wool, to

make a yarn. The ring frame developed from the throstle frame. Ring spinning is a

continuous process, unlike mule spinning which uses an intermittent action. In ring

spinning, the roving is first attenuated by using drawing rollers, then spun and wound

around a rotating spindle which in its turn is contained within an independently rotating

ring flyer. Traditionally ring frames could only be used for the coarser counts- but they

could be attended by semi-skilled labour.

The ring was a descendant of the Arkwright water Frame 1769. It was a

continuous process; the yard was coarser, had a greater twist and was stronger so

was suited to be warp. Ring spinning is slow due to the distance the thread must

pass around the ring, other methods have been introduced. These are collectively

known as Break or Open-end spinning.

A ring frame was constructed from cast iron, and later pressed steel. On each

side of the frame are the spindles, above them are the draughting (drafting) rollers and

on top is a creel loaded with bobbins of roving. The roving (unspun thread) passed

downwards from the bobbins to the draughting rollers. Here the back roller steadied the
incoming thread, while the front roller which was moving much faster pulled thread out

(attenuated) forcing the fibres to mesh together. The rollers are individually adjustable,

originally by mean of levers and weights. The attenuated roving now passes through a

thread guide that is adjusted to be exactly above the spindle. Thread guides are on a

thread rail which allows them to be hinged out of the way for doffing or piecing a broken

thread. The attenuated roving passes down to the spindle assembly, where it is threaded

though a small ring called the traveller. It is this that gives the ring frame its name. From

here it is attached to the existing thread on the spindle.

Like the hour and minute hands on a mechanical clock, the traveller, and the

spindle share the same axis but travel at different speeds. The spindle travels faster. The

bobbin is fixed on the spindle. In a ring a frame, the different speed was achieved by drag

caused by air resistance and friction. The spindles rotate at 7000 to 8000 rpm, this spins

the yarn. The traveller, winds the yarn on the bobbin. The ring on the traveller is fixed on

a lifting ring rail which guides the thread onto the bobbin in the shape required: ie a

cop. The lifting must be adjusted for different cotton counts.

CONE WINDING

Ring spinning produces yarn in a package form called cops.Since cops

from ringframes are not suitable for further processing, the winding process serves

to achieve additional objectives made necessary by the requirements of the

subsequent processing stages.

Following are the tasks of winding  process

 Extraction of all disturbing yarn faults such as the short, long thick ,long thin,

spinners doubles, etc

 Manufacture of cones having good drawing - off properties and with as long a 

length of yarn as possible

 paraffin waxing  of the yarn  during the winding process

 introduction into the yarn of a minimum number of knots

 achievement of a high machine efficiency i.e high produciton level

BEAMING

The beam is a long cylinder with flanges and perhaps 600 threads are

wound on to it side-by-side. The machine is watched over by a "beamer". The full

beam is very heavy. In early days beaming was often done in the weaving mill but

then tended to be transferred to the spinning mill which would send the full beams

to the weavers. Note that this is more specifically called a "warper's beam"

SIZING

The yarn is a little fragile for the rough treatment imposed by the weaving

process and a "size" is applied to make it more robust. A number of warper's beams

(as above) are placed at the back of the sizing machine and the yarn is drawn
through and wound on to a "weaver's beam". If the machine is fed by 8 warper's

beams of 500 threads each then the weaver's beam will have 4000 parallel threads.
 MARKETING DEPARTMENT

5.2 MARKETING DEPARTMENT

Marketing management refers to the identification of consumer’s needs and

supplying their goods and services which can satisfy these works. It involves the

following activities.

 Marketing me search to determine the needs and expect of consumers.

 Planning and developing suitable products.

 Setting appropriate prices.

 Selecting the right channel of distribution and

 Promotional activities like adder testing and salesmanship to communicate

with the customer purchase and stores purchase.

  The Marketing department creates the report for strategic planners, marketing

executives and export managers whose primary concern is to market the yarn

manufactured at high returns. 

 With the globalization of this market, managers can no longer be contented with a

local view. Nor can managers be contented with out-of-date statistics that appear

several years after the fact.So the managers should be focused on the new

technology machines that are being upgraded every now and then.

 The report begins by summarizing the world exporter’s market for yarn. The total

level of exports on a worldwide basis is based on a model that aggregates across

over 150 key country markets and projects these to the current year.

 There are more requirements in the market due to the growth of textile industry.

So it doesn’t need the aggressive market.

The company is supplying its materials to the companies like

 Sowndarya Textiles,

 Adheeswara Tex,

 K.M.N Textiles.,

FUNCTIONS
MARKETING CONCEPT

The term marketing concept pertains to the fundamental premise of modern

marketing. This can be laid out as recognizing consumer needs/wants, then designing

products and services that correlate with consumer desires.

MARKETING ORIENTATIONS
 An orientation, in the marketing context, relates to a perception or attitude a firm

holds towards its product or service, essentially concerning consumers and end-users.

There exist several common orientations

 Product Orientation

 Sales Orientation

 Production Orientation

 Marketing Orientation

PRODUCT ORIENTATION

A firm employing a product orientation is chiefly concerned with the quality of

its own product. A firm would also assume that as long as its product was of a high

standard, people would buy and consume the product. This works most effectively when

the firm has good insights about customers and their needs and desires.

SALES ORIENTATION

A firm using a sales orientation focuses primarily on the selling/promotion of

a particular product, and not determining new consumer desires as such. Consequently,

this entails simply selling an already existing product, and using promotion techniques to

attain the highest sales possible.

 Such an orientation may suit scenarios in which a firm holds dead stock, or

otherwise sells a good that is in high demand, with little likelihood of changes in

consumer tastes diminishing demand.

PRODUCTION ORIENTATION

A firm focusing on a production orientation specializes in producing as much

as possible of a given good. Thus, this signifies a firm exploiting economies of scale,

until the minimum efficient scale is reached.

A production orientation may be deployed when a high demand for a good exists,

coupled with a good certainty that consumer tastes do not rapidly alter.

MARKETING ORIENTATION

The marketing orientation is perhaps the most common orientation used in

contemporary marketing. It involves a firm essentially basing its marketing plans around

the marketing concept, and thus forging products to suit new consumer tastes.
 As an example, a firm would employ market research to gauge consumer

desires, use R&D to develop a good attuned to the revealed information, and then utilize

promotion techniques to ensure persons know the good exists. The marketing orientation

often has three prime facets, which are:

 Customer orientation

 Organizational orientation

 Mutually beneficial exchange

 FINANCIAL DEPARTMENT

5.3 FINANCE DEPARTMENT

Financial management is that part of the management which is concerned with

the planning, directing and controlling of all activities relating to procurement and

utilization of the financial resources of an enterprise for business process.

 Finance is a much more important of every business firm to run production and

marketing activities. So finance is life blood of the company. In the company finance

department to organize financial activities may be created under the direct control of the

board of directors. In the department head is financial manager. The manager financial

policy matters will be decided by the finance committee while routine activities are

delegated to lower levels.

The Finance Department is responsible for the financial functions and

activities of the Council and for the administration of the Council's fiscal policy.

Financial statements (or financial reports) are formal records of the

financial activities of a business, person, or other entity. In British English, including

United Kingdom company law, financial statements are often referred to as accounts,

although the term financial statement is also used, particularly by accountants.

The finance manager raise capital from capital market (i.e. shares,

debentures, loan from banks, financial institution and public).

 The Company has started with the capital of Rs.5 Crore but now it has

more than Rs.7 Crore as its capital is increasing since established.

 Fund arising from the operations are increasing during the year except 2009-

10.The liquidity of the company is decreasing. The average of liquid ratio

 throughout the period is above the standard (1:1), which is good for the

company.

 Current assets are properly utilized to affect the given quantity of sales. The

Gross Profit ratio is good except the year 2008-2009.More fluctuations are

found in Net Profit ratio.

 Though there is an increase in production and sales, it is not proportionate

with the increase in fixed assets. Inventories are cleared fast in the concern.

Thus the inventory is managed efficiently by the concern.

 The debtor’s collection period is somewhat high; this indicates the receivable

management is not effective. The Gross Profit and Net Profit are increasing

throughout the study period. There is a steady increase in the production and

sales of the company.

Financial statements may be used by users for different purposes:

 Employees also need these reports in making collective bargaining agreements

(CBA) with the management, in the case of labour unions or for individuals in

discussing their compensation, promotion and rankings.

 Owners and managers require financial statements to make important business

decisions that affect its continued operations. Financial analysis is then performed

on these

statements to provide management with a more detailed understanding of the

figures. These statements are also used as part of management's annual report to

the stockholders.

 Prospective investors make use of financial statements to assess the viability of

investing in a business. Financial analyses are often used by investors and are

prepared by professionals (financial analysts), thus providing them with the basis

for making investment decisions.

 Financial institutions (banks and other lending companies) use them to decide

whether to grant a company with fresh working capital or extend debt securities

(such as a long-term bank loan or debentures) to finance expansion and other

significant expenditures.

 Government entities (tax authorities) need financial statements to ascertain the

propriety and accuracy of taxes and other duties declared and paid by a company.

 Vendors who extend credit to a business require financial statements to assess the

creditworthiness of the business.

  Media and the general public are also interested in financial statements for a

variety of reasons.

Finance department is running with the help of efficient and experienced manager.

SOURCE OF FUNDS

The source of funds in Karlux Spinners are as follows:

 Deposits from promoters/directors

 Financial Institutions

 Loan from banks

FUNDS UTILISATION

The funds raised through the above ways are utilized as follows:

 Repayment of loans

 Acquisition of fixed assets, immovable properties

 Production, Selling and distribution activities

 Investments

 Reserve fund creation

 Payment of taxes

ACCOUNTING SYSTEM
 The company is using “Tally ERP” module Version 7.2 accounting software for its

accounts Maintenance. Also the company has developed its own separate software for

wages, Inventory (both raw materials and stores).

All the transactions are recorded in the respective books such as

 Sales Book

 Purchase Book

 Cash Book
 STORES DEPARTMENT

5.4 STORES DEPARTMENT

Store plays a vital role in the operations of a company. It is in direct conduct

with the user department in its day-to-day activities. The most important objectives of
store are to provide is located nearer to the production with to save material cost in as

effective manner.

The following are the important function of stores section.

 Management of receipts.

 Issue control on material.

 Documentation received.

 Inspection of materials.

 Computerization of the data received from user department.

 Codification of materials.

 Physical verification of stores.

 Stock vacation.

These stores thus get the raw material one after tools and raw punch through EOQ

(Economic Ordering Quantity) method and also by requires demand in the market.
 HUMAN RESOURCE DEPARTMENT

5.5 HUMAN RESOURCES DEPARTMENT

In organizations, human resource is important to determine both current and

future organizational requirements for both core employees and the contingent workforce

in terms of their skills/technical abilities, competencies, flexibility etc. The analysis

requires consideration of the internal and external factors that can have an effect on the

resourcing, development, motivation and retention of employees and other workers. The

external factors are those largely out-with the control of the organization and include

issues such as the economic climate, current and future trends of the labor market e.g.

skills, education level, government investment into industries etc. On the other hand

internal influences are broadly within the control of the organization to predict determine

and monitor, for example the organizational culture underpinned by management

behaviors (or style), environmental climate and the approach to ethical and corporate

social responsibilities.

Framework

Human Resources Development is a framework for the expansion of human

capital within an organization or (in new approaches) a municipality, region, or nation.

Human Resources Development is a combination of training and education, in a broad

context of adequate health and employment policies that ensures the continual

improvement and growth of the individual, the organization, and the national human

resourcefulness.

Recruitment & Selection

 In order to fill the worker class cadre, the requirements are notified to a HR

broker. The broker himself have well established framework of subunits, which

makes search for the suitable employees.

  The maximum employees working here are from the outskirts of southern Tamil

Nadu, who mostly are uneducated and seek job for their family survival.

Training

 The Human resource thus obtained are then well trained on their job profile and

re-training programmes are arranged for under performers.

Labour Management

 A canteen functions within the company premises which satisfies the basic

requirements of the emplooyes.

 Vehicle facilities are arranged and are ready at any time to the nearby town for

shopping,hospital etc....

ADVISOR

SUPERVISOR

SECTION SUPERVISOR
 LABOURS

Time office is under the control of personnel department, maintaining shift wise

workers attendance register and staff registers. The mill is functioning continuously

except the national holidays and local festivals. All the employees of the mill are

provided with medical facility. Personnel department is responsible to maintain the

discipline of the mill and directly reporting to the top-level management. Engagement of

daily casuals for the leave and absenteeism are dealt by Time-keeper in the time office.

The working is under Triple Shift

12.00 am to 7.00 am – First shift

7.00 am to 3.30 pm – Second shift

3. 30 pm to 12.00 am – Third shift

This personnel department creates close relationship between the management and

the workers. The workers should feel that they are working in a friendly environment.

Thus the personnel department is very essential for every organization.

MEDICAL FACILITY

Actual medical expenses are reimbursed to the employee in case of accident

occurs in the company while performing duty.

 R&D DEPARTMENT

5.6 R&D DEPARTMENT

R&D has a special economic significance apart from its

conventional association with scientific and technological development. R&D investment

generally reflects a government's or organization's willingness to forgo current operations

or profit to improve future performance or returns, and its abilities to conduct research

and development.

In 2006, the world's four largest spenders of R&D were the United States

(US$343 billion), the EU (US$231 billion), China (US$136 billion), and Japan (US$130

billion). In terms of percentage of GDP, the order of these spenders for 2006 was China

(US$115 billion of US$2,668 billion GDP), Japan, United States, and EU with

approximate percentages of 4.3, 3.2, 2.6, and 1.8 respectively.

The product range is developed so that production processes are as efficient as possible

and the products are technically superior, hence possessing a natural advantage in the

market place.

 Research and development is nowadays of great importance in business as the

level of competition, production processes and methods are rapidly increasing. It

is of special importance in the field of marketing where companies keep an eagle

eye on competitors and customers in order to keep pace with modern trends and

analyze the needs, demands and desires of their customers.

 Unfortunately, research and development are very difficult to manage, since the

defining feature of research is that the researchers do not know in advance exactly
 how to accomplish the desired result. As a result, higher R&D spending and does

not guarantee "more creativity, higher profit or a greater market share.

 The company will support the worker more and they pay more offers through the

company growth and they will give a special care to the employees.
 SALES DEPARTMENT

5.7 SALES DEPARTMENT

 The organization of the sales department will depend, of course, upon the size of

the company and the nature of the business. The principles underlying its organization

remain much the same, however. The nature of the organization depends somewhat upon

whether the salesmen travel out of the home office or from divisional headquarters or

branches. In the latter case there will be a general sales manager at headquarters who

exercises supervision over the branch sales managers.

The following are the functions of sales department in the company

 to increase the sales volume considering a particular period of time.

 to find appropriate persons/ agencies to carry out the sales activities.

 to help marketing department in meeting the sales volume fore casted by

then.

 to analyze the demands of markets.

 to study the consumer's psychology, study market fluctuations, prepare

sale budgets, explore new markets and the process begins again - attract

and retain customers, etc.

SWOT ANALYSIS
SWOT ANALYSIS :

STRENGTHS :

 Abundant Raw Material availability that helps industry to control costs and

reduces the lead-time across the operation.

 Availability of Low Cost and Skilled Manpower provides competitive advantage

to industry.

 Growing Economy and Potential Domestic and International Market.

 Industry has Manufacturing Flexibility that helps to increase the productivity.

WEAKNESS :

 Industry is highly dependent on Cotton.

 Lack of Technological Development that affect the productivity and other

activities in whole value chain.

 Higher Indirect Taxes, Power and Interest Rates.

 Lacking to generate Economies of Scale.

OPPORTUNITIES :

 Growth rate of Domestic Textile Industry is 6-8% per annum.

 Increased Disposable Income and Purchasing Power of Indian Customer opens

New Market Development.

 Emerging Retail Industry and Malls provide huge opportunities for the Apparel,

Handicraft and other segments of the industry.

 Greater Investment and FDI opportunities are available.

THREATS :

 Competition from other developing countries, especially China.

 Continuous Quality Improvement is need of the hour as there are different

demand patterns all over the world.

 Threat for Traditional Market for Powerloom and Handloom Products and forcing

them for product diversification.

 To make balance between price and quality.

FINDINGS & SUGGESTIONS
 FINDINGS & SUGGESTIONS

5.1 FINDINGS

The problems are identified in the following areas:

1. Scarcity of Labour

2. Power shortage which affects the production process

3. Increase in fuel cost according to changes in International rates

4. Interest rates are high

5. Changes in Government policies/ restriction and control measures with

respective wages, taxes, license and power etc.,

5.2 SUGGESTIONS

1. Goverment should provide power without any delay and restriction

2. Incenitves to farmers for cotton cultivation

3. Living standards for the residential workers should be improved

4. Having a strict control over the fuel prices

CONCLUSION
CONCLUSION

The organization study has been done to know the overall process of the Karulux

Spinning Mill. From the study they are producing yarn according to the required counts

ordered by the customers. The wastage of the production is 2%. The quality of the

product is good. The capital will be provided directly from the managing director. They

are marketing their product to the company by their own vehicles. The short term as well

as long term financial position of the company is sound, hence the overall study reveals

that the efficiency and effectiveness of the company in managing the firm is good.