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Chapter I
INTRODUCTION
Organization definitely is the backbone of the management and without its proper care at the
higher, middle and lower level of administration, it would be practically impossible for any
management to run the show smoothly. It is a means by which problems of the enterprise
connected with policies, operations and administrations can effectively be solved. Sound
organization can contribute greatly to continuity and success to the enterprise.
Management is one of the prominent professional courses in the Twentieth Century. When we
consider Management as a profession it is imperative that the product of the management
education would be a management professional. Management as a subject can be taught in the
classroom, but apart from the theoretical study the student also requires practical knowledge and
experience, which can be achieved only through continuous exposure. The purpose of including
such a project in the management education is to satisfy this need. This gives students the
practical experience and knowledge about major functional areas in management, their working,
interlinking, inter departmental conflicts, etc
To familiarize myself with the different Functional divisions, their coordination, control
activities, etc. of an organization I have chosen Nitta Gelatin India Limited. (NGIL), Panampilly
Nagar, Ernakulam for my final project. NGIL is a one of the multi location company. It enhances
customer confidence through a better quality product and better public services.
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1.1 Objectivesy To get familiarized with the different departments in the organization and their functioning.y To understand how key business processes are carried out in organizationsy To understand how information is used in organization for decision making at various levelsy To understand the strength and weakness of the firm
y To understand the opportunities and threats of the firmy To relate theory with practice.
1.2 Scope
This project aims at generating a practical awareness of the functions and management of the
company NGIL. The study covers a general understanding of the organization, its culture,
departments, and its business activities.
1.3 Methodology
This part explains how various information about the organization was collected.
Secondary data:
These were obtained from the official documents of the organization such as the annual reports,
records and other department manuals. Good amount of information were obtained also through
the website of the company and other related sites.
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Chapter- II
INDUSTRY PROFILE
2.1 Gelatin
Gelatin is produced from Collagen which is a main protein found in animal skin and bones. The
raw materials are first carefully selected and refined and extracted. Gelatin is thus made up of
extremely pure protein. Gelatins are of three grades (edible, pharmaceutical, and
Photographic.)
2.1.1 Gelatin in Food Industry
There are many versatile uses for gelatin in modern food production. The main reason for this is
its unique ability to react under heat. Gelatin melts at 37 degrees Celsius and becomes firm again
when it cools down. Its pleasant eating properties make it irreplaceable for the food sector.
Just by the way, gelatin is a source of high-quality protein, low in calories, free of cholesterol
and sugar and containing practically no fat. It is easy to digest and completely broken down by
the human organism. On top of that, gelatin has hardly any potential for causing allergies.
Many half-fats, low fat or light products would not be possible without gelatin. Whether half-fat
margarine or butter, low-fat pates or reduced-fat cheeses gelatin is used everywhere. It is
neutral in taste, binds large quantities of water, forms gels and gives food that great mouthfeels.
Sweets
Edible gelatin is indispensable for gummy bears, wine gums, liquorices, chocolate marshmallows
and many other treats
Baked Goods
Gelatin stabilizes the butter cream and cream filling.
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Milk Products and Desserts
Dairy products are very popular. Gelatin plays an extremely important role in their preparation
and in the development of ever more new varieties. The right dose and the right type of gelatin
ensure creamy-light yogurts or more solid dairy products, such as curd cheese.
Meat and Fish
In pates and aspic, gelatin ensures a delicious appearance. Many salami or pepper sausage
varieties are protected from drying out with a protective coating of gelatin.
In fish products, gelatin is mainly used in the manufacture of jelly products. Here, gelatin
protects against light and oxygen as well as enhancing appearance.
To increase protein enrichment in pates, ready-meals and other delicacies, special gelatins are
gaining in importance.
Drinks
Gelatin also enhances our drinking pleasure. Wines, juices, cider and, in some countries, beer are
subjected to a gelatin treatment to clarify them. In the process, gelatin reacts with the tannins and
bitter substances and absorbs cloudy elements that then sink to the bottom and can be separated
from the drink.
2.1.2 Pharmaceutical Gelatin:
Gelatin is used in myriad ways in the pharmaceutical industry. It is used for the manufacture of
capsules, tablets, and prevents drugs being damaged by air and light
Capsules and Tablets
As a component of hard and soft capsules, gelatin protects the drugs against harmful influences,
such as light or oxygen. Soft capsules are mainly used for vitamins and food supplements while
hard capsules are mainly used for medicines. Gelatin helps to keep t he active pharmaceutical
agents together reliably and for a long time. Thanks to careful selection and dosage, even the
release speed of active medical agents can be enhanced with the use of capsules.
Gelatin-coated tablets (caplets) are a new technological development. The external coating with
gelatin ensures that patients can swallow the caplets easily and without any problem.
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2.1.3Ph otogra hi c a icat ioSil ver alt pho t ograph i c ma ter ials consist o
up to 15 layer s con taining ge lati n that are coa t ed
ont o
il m or paper. ere ge lati n ac ts as a b ind ing agen t
or li ght-sensiti ve sil ver ha lid es . ue t o
their sw elli ng proper ti es , the d evel oping agen ts can pene trate the layer s and be remove d aga in by
w ater ing. elati n is an impor tant componen t
or t his comp lex layer techn ique. I t has the ab ilit y
t o
orm a s oluti on d ur ing hea ti ng that sets t o a ge l again on coo li ng d ow n and can be kep t a
ter
w ater remova l . elati ns proper ti es are nee d ed t o prod uce pho t ograph i c ma ter ials such a s
ama teur
il ms , co l or paper, graph i c
il ms and X-ray
il ms , in ind ust r ial volume s . elati n is als o
indis pen s able
or di git al pho t ography. The ink-je t pr inter paper coa ted wit h ge lati n guaran tees
br illi
ant
color
san
dc
lear
shape
s. Th
isre
su
lts in pr
in
tso
the h
ighe
stqua
lity.
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CHAPTER- 2
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Chapter - III
COMPANY PROFILE3.1 Introduction
NITTA GELATIN INDIA LIMITED
Formerly KERALA CHEMICALS & PROTEINS LIMITED
Registered Office
Post Box: 4262
50/1002 SBT Avenue
Panampilly Nagar
Cochin 682036
Kerala State, India.
Tel: 0484 2317805
Fax: 0484 2310568
Email: [email protected]
Nitta Gelatin India Limited (NGIL), one of the most successful Indo-Japanese industrialventures, was incorporated in 1975 and started commercial production in 1979. NGIL is
managed by a professional team. The Managing Director is appointed by KSIDC and a whole
time Technical Director by NITTA. Through its collaborators NGIL has access to state of the art
technology and process inputs that help the company achieve its global vision.
Today NGIL is one of Keralas leading exports company, manufacturing Ossein, Gelatin, and Di
Calcium Phosphate. The companys exceptional performance in the export sector has also earned
it a Registered Export House status.
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3.2 NGILs Philosophy
y The companys philosophy of Corporate Governance aims at excellence in every sphere
of operation consistent with the highest ethical standards.
y The Core Value underlying NGIL Corporate philosophy is "trusteeship". We believe, this
organization has been handed over to us by the various stakeholders in 'trust' and we are
the "trustees" of these stakeholders. It is therefore our responsibility to ensure that the
organization is managed in a manner that protects and furthers the interest of our
stakeholders. We recognize society as an important stakeholder in this enterprise and it is
part of our responsibility to practice good corporate citizenship.
y NGIL is committed to conduct its business in accordance with the applicable Laws, Rules
and regulations and with highest standards of business ethics. This code is intended to
provide guidance and help in recognizing and dealing with ethical issues, provide
mechanism to report unethical conduct and to help foster a culture of honesty and
accountability. Each director, officer and employee is expected to comply with the letter
and spirit of this code.
y We are committed to continuously reviewing and updating our policies and procedures.
Therefore, this code of business conduct and ethics is subject to modification.
The Directors, officers and employees of the Company must not only comply with applicable
Laws, rules arid regulations but should also promote honest and ethical conduct of the
business. They must abide by the policies and procedures that govern the conduct of the
company's business. Their responsibilities include helping to create and maintain a culture of
high ethical standards and commitment to compliance and to maintain a work environment
that encourages the stakeholders to raise concerns to the attention of the management.
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V isi o :
y To become a prem ier ind ust ry in Indi a wit h a g l oba l per s pec ti ve, w or ld class st and ar ds o
e i ci ency an d pro essi ona lis m an d core instit uti ona l values .
y R each the po siti on a s the lead er in elati n manu ac ture in Indi ay M aximi ze shareho ld er va lue through h i gh s ust ained earn ings per s hare.y C onti nue a s an instit uti on wit h a cu lt ure o mu tua l care an d comm it men t , a satisf ying w ork
environmen t and con ti nuou s learn ing oppor tun iti es .
3.3 r ief is tory of t h e om a y
The company w as incorpora ted on 30th pr il 1975 an d began the commerc ial prod uc ti on
( ss ein) on 1 st ct ober 1979 wit h f ull -fl ed ged plan t at oratt y, Thr iss ur t ., erala. The
company acqu ired its ow n bu ildi ng ( C orpora te ffi ce) f or ad minist rati ve purpo s es in the year
1988 a t anamp ill y nagar, och i .
I covere d an impor tan t mil est one, w hen it commence d the
prod uc ti on o f elati n.
elati n i visi on a t akkana d , rnaku lam t ., erala st ar ted its commerc ial pro d uc ti on on 8th M arch 1999.
I is manage d by a pro f essi ona l team. Through its coll abora t or s
I ha s
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access to state-of-the-art technology and process inputs that help the company achieve its globalvision.
Major Milestones
1979 Started Comm. Production of Ossein 1996 Limed Ossein Plant Commissioned 1997 Formed Bamni Proteins Ltd. (a subsidiary company) 1999 Gelatin Plant Commissioned 1999 ISO 9002 Certification 2002 EDQM Certificate of Suitability 2004 Capacity expansion at Gelatin Plant 2007 Capacity expansion at Gelatin Plant
Community Development Activities
The Company has been actively participating in community development activities right from
the beginning. The major community development projects sponsored by the Company are:
1. Construction of a 10-bedded hospital building, near the Ossein Factory.
2. Construction of a Reading Room under the name and style of Panampilly SmarakaVayanashala.
3. Co-partnership in the construction of Krishi Bhavan in Kadukutty Panchayat.
4. Sponsoring of prizes for the Best Students in SSLC exams, in General stream and in
Scheduled Castes stream, from the Kadukutty and Koratty Panchayat area.
5. Better services to the public.
6. Sponsoring of prizes in the sports activities in the area surrounding the Ossein Division.
3.5 Manufacturing Locations:
1) Ossein Division, at Koratty in Thrissur district,2) Gelatin Division, at Kakkanad, Ernakulam district,
3) Subsidiary: Bamni Proteins Ltd.,at Maharashtra,
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3.6 Share Position
The percentage of share held by its promoters can be illustrated with following figure.
Shareholders pattern of Kerala Chemical and Protein Ltd as on 31.03.2007
SL
NO.
CATEGORY NO OF SHARES
HELD
PERCENTAGE OF
SHAREHOLDING
A PROMOTERS HOLDING
1. INDIAN PROMOTER KERALA STATE
INDUSTRIAL
DEVELOPMENT
CORPORATION LTD
TRIVANDRUM
2860000 34.07
2 FOREIGN PROMOTERS
NITTA, GELATIN INC,
JAPAN
3900300 46.43
SUB-TOTAL 6762520 80.50
B OTHERS (INCLUDING
PUBLIC)
1637480 19.50
GRAND TOTAL 8400000 100.00
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3.7 Products and its Applications
3.7.1 Products:
Ossein (intermediary product)
Gelatin (edible, pharmaceutical & photographic Grade)
DiCalcium Phosphate
3.7.2 Ossein
The bones are received crushed -- broken into small pieces no larger than one-half inch. Crushed
bone is loaded into wooden tanks, each of which holds greater than 10 tons. The bone is
demineralized by soaking it in Hydrochloric Acid. Demineralized bone is called ossein, or
collagen. NGIL manufactures Ossein under the technical guidance of NITTA. Besides using
Ossein for the manufacture of Gelatin, NGIL exports its Ossein to NITTA on a buy-back
arrangement.
With demand for Gelatin going up, NGIL has stepped up production capacity of Ossein to 7000
MT and set up facilities to produce 5000MT of Limed Ossein.
3.7.3 Gelatin
NGIL today is one of the major manufacturers of premium, export quality Gelatin in India.
Functioning in technical collaboration with NITTA, the company has a production capacity of
3300 MT. The special feature of NGILs Gelatin is the new concept of offering customer specific
products and solutions. Product features include:
y Consistent quality meeting USP standardsy Highly flexible product specifications. Viscosity, Gel strength etc. as per customer
requirements
y Prompt and timely deliveryy Packaging: 20kg paper bags or bulk bags, palletized and stretch wrapped
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y Ready for vendor audit requirementsy GMP implemented
3.7.4 Di Calcium Phosphate (DCP)
NGIL plant has the capacity to manufacture 15000 MT of Di Calcium Phosphate (DCP). NGIL
exercises stringent quality control not only in the selection of raw material but also through every
stage of production, until the product is finally delivered into your hands. Besides its own
research and quality control facilities, NGIL is uniquely placed to draw on the vast resources of
its collaborators to ensure products of consistently high quality.
Crushed bones are treated with HCL at concentration around 4% for 7 days to remove calciumand phosphorous. The minerals dissolved in HCL and form mono calcium phosphate and are
treated with lime slurry to form di-calcium phosphate. The concentrated slurry is filtered, dried
using hot air and stored in bin. The material is the packed in 50 Kg HDPE bags with liner.
DCP is mainly used in 4 sectors:
1. Poultry Farms
2. Mineral Mixtures
3. Feed Manufactures
4. Industries (for manufacture of ceramic products)
Di Calcium Phosphate (DCP) from NGIL is already used worldwide in diverse products
especially in Poultry feeds. NGILs Di Calcium Phosphate is made exclusively from animal
bones and thus enjoys these critical advantages absent in similar products made from other
sources.
y Higher content of easily digestible phosphorous and calciumy Better bio-availability of phosphorousy Lower fluorine contenty Excellent storage life.y Fine, free flowing, powdery form
y No genetic problems on usagey Technical support for farmers and end users.
Formatted: Indent: Left: 0", First line: 0",Outline numbered + Level: 1 + NumberingStyle: 1, 2, 3, + Start at: 0 + Alignment: Left + Aligned at: 0" + Indent at: 0"
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Chapter IORGANIZATION STRUCTURE
Organization is the foundation upon which the whole structure of management is built. It is the
backbone of management. The term Organization refers to a mechanism which enables men to
live together. In a static sense an organization is a structure manned by group of individuals who
are working together towards a common goal. In a dynamic sense organization is process of
welding together a framework of positions, which can be used as a management tool for the mosteffective pursuit of an enterprise. Organization is coordinative and unifying and concerns itself
with a well-planned division of the numerous functions and the devolutions of duties and
responsibilities to the individual executive and subordinate official supported by a rigid system
of supervision and coordinated control, in order to ensure the effective execution of the plans as
formulated by those in administrative authority. Some regard it as a network of relationships, a
blue-print of how the management will like the various functions and activities to be assigned
and connected together. Some others look upon it as a system with inputs (men, materials and
machines in cases of business), and processes through which these are converted into outputs
(e.g.: goods and services, profits etc.).
4.1. Organization Chart:
The pattern of network of relations between the various positions in an organization as well as
between their persons who hold those positions is referred to as Organization Chart.
Organization data are often shown in the form of graphic chart. According to Harold Koontz and
Cyril ODonnell, every organization can be charted, for a chart is nothing more than an
indication of how departments are tied together along their principal lines of authority. In the
words of George R Terry, A chart is a diagrammatical form which shows important aspects of
an organization including the major functions and their respective relationships, the channels of
supervision, and the relative authority of each employee who is in charge of each respectivefunction.
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n organ i zati on char t can be d raw n in diff eren t f orm s li ke i) Top d ow n char t , ii ) eft t o r i ght or
hor i zon tal t ype o f char t and iii ) C ircu lar C har t . In the Top- d ow n-char t the major f unc ti ons are
s how n a t the t op wit h s ubor di na te f unc ti ons in s ucce ssi ve l ow er po siti ons . S uch t ype o f an
rgan i zati ona l C har t of !
" I is d es cr i bed be l ow exp laining the li ne of author it y an d the name s
of concerne d per s onne l w ho ho ld var i ous res pon si biliti es . S ee annexure.
#
h art $ o:1
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Chapter 5 DEPARTMENTS AND THEIR FUNCTIONS
5.1 arious Departments
Corporate Office:
MDs Office
P&A Dept.
Commercial Dept.
Finance Dept.
Secretarial Dept.
Marketing and Business Dept.
Divisions
o y Ossein Division:o
Productiono Central Engineering Services (Maintenance)o QA/QCy o Stores-General Stores and Engg. Stores
y Gelatin Division:o Productiono Central Engineering Services (Maintenance)
o QA/QC
o Stores-General Stores and Engg. Stores
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0" + Tabafter: 0.25" + Indent at: 0.25"
Formatted: Bulleted + Level: 1 + Aligned at:0.5" + Tab after: 0.75" + Indent at: 0.75"
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0.5" +Tab after: 0.75" + Indent at: 0.75"
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0.5" +Tab after: 0.75" + Indent at: 0.75"
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0.5" +Tab after: 0.75" + Indent at: 0.75"
Formatted: Bulleted + Level: 1 + Aligned at:0" + Tab after: 0.25" + Indent at: 0.25"
Formatted: Bulleted + Level: 2 + Aligned at:0.5" + Tab after: 0.75" + Indent at: 0.75"
Formatted: Outline numbered + Level: 2 +Numbering Style: Bullet + Aligned at: 0.5" +Tab after: 0.75" + Indent at: 0.75"
Formatted: Outline numbered + Level: 2 +
Numbering Style: Bullet + Aligned at: 0.5" +Tab after: 0.75" + Indent at: 0.75"
Formatted: Outline numbered + Level: 2 +Numbering Style: Bullet + Aligned at: 0.5" +Tab after: 0.75" + Indent at: 0.75"
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ORGANISTIONAL ART - OD %
h art & o:2
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ORGANISATIONAL ART - GD '
h art ( o:3
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5.2 Detailed study of Departments
5.2.1 Personnel and Administration Department (P&A)
Production is the combined output of the efforts of the big agents, viz., land, labor, capital,
enterprise and management. Although all these factors occupy a significant place in production,
yet labor or manpower is the most important. It is the foundation or the edifice of every
manufacturing unit. There may be a mass of land, capital and entrepreneurs, but they cannot
function without the active force of Labor. That is why it is deemed as an indispensable factor
of production. The following arguments may be added in support of the suggestions for having a
separate department of personnel management.
y Job analyzing for aiding managementy Reduction in cost of production
y Necessity of a contented manpower y Necessity of trained and efficient labour forcey Scientific recruitment of manpower
y Scientific promotion, demotion, transfers etc.y Cordial subordinate-boss relationships.
It may be remarked that the department of personnel administration and management should be
under the charge of a capable and experienced senior officer of the concern. He may be
designated as the General Manager or Director of the Department of personnel administration
and management. There may be several Deputy
Directors/Managers under him for his assistance, who may be entrusted with different activities
and functions, which may be undertaken by the department of personnel administration and
management
The P&A departmental structure of NGIL is illustrated in the following chart
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0" + Tabafter: 0.25" + Indent at: 0.25"
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Chart no: 4
DD EE PP AA RR TT MM EE NN TT AA LL OO RR GG AA NN IISS AA TT IIOO NN CC HH AA RR TT PP && AA
ED(HR&G Admn)D . RA ) EENDRANATH
Manager Training Head (HR), GD
Personal Secretary
Head (HR) OD
Advisory Officer
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Functions of Personal Administration Department
. PERSONNEL ADMINISTRATION
Manpower Planning Wage & Salary Administration
Recruitment Welfare Functions
Selection Social Security Functions
Placement Liaison with Government Departments
Induction General Administration:-
Training Repairs & Maintenance of Office Building
Performance Appraisal V ehicle Running & maintenance
Compensation Planning D ispatch of mail
Succession Planning Renewal of Licenses under various Statutes
Industrial Relations T elephones
Discipline and Disciplinary Finalization of Miscellaneous contracts proceedings Management of security
The following are the important functions of the P&A Department
Recruitment:
y Liaison with sources of labor supply
y Interview applicantsy Tests and Physical Examinationy Maintenance of Personnel statisticsy Granting of Increments to employees
Training
y Training of new starters, apprentices, employees for transfer and promotion, instructors,
supervisors, etc
y Encourage additional education, qualification, and other necessary skillsy Work tours
Formatted: Indent: Left: 0", First line: 0",Numbered + Level: 1 + Numbering Style: Bullet + Start at: 0 + Alignment: Left + Aligned at: 0"+ Indent at: 0"
Formatted: Outline numbered + Level: 1 +
Numbering Style: Bullet + Aligned at: 0.25" +Tab after: 0.5" + Indent at: 0.5"
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0.25" +Tab after: 0.5" + Indent at: 0.5"
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Internal Managementy Promotion of employeesy Transfer of employeesy Demotiony Termination of services
W ages and Salary Administration
y Job analysisy Job evaluationy Wages surveysy Employee trainingy Wage incentivesy Profit sharingy Workers participation in management
Industrial Relations
y Workers morale and discipliney Labor legislation interpretationy Attending labor grievancesy Labor management co-operationy Arbitration
Social security and Labour W elfare
y Provision of labor amenitiesy Implementation of social security legislation
y Other social security measures, like provident fund, old-age pension, employees
insurance, etc.
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0.25" +Tab after: 0.5" + Indent at: 0.5"
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0.25" +Tab after: 0.5" + Indent at: 0.5"
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0.25" +Tab after: 0.5" + Indent at: 0.5"
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0.25" +Tab after: 0.5" + Indent at: 0.5"
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Recruitment PolicyThe qualification and other requirements for recruitment in NGIL are explained in table shown in
the annexure. (Annexure- 2)
Sources of recruitment:
Internal
Promotion
Promotion involve change from one job to another job that is better in terms of status and
responsibility. with the help of promotion the recruited will be conducted the firm.
TransferTransfer means shifting of an employee from one job to another job.
Routine Applications
With the help of routine application the recruitment will be conducted by the firm.
External
3. Employment ExchangesWith the help of employeement exchange the candidate to be selected in the NGIL.
4. Professional Institutions (Engg colleges, Business Schools )
With the help of various business school ,engg college the candidate will be recruited in the
NGIL.
5. References from well-wishersReference from other industries, local bodies etc the candidate will be recruited in the NGIL.
6. ITIs, Supervisory Development Centres, Related Instruction centresWith help of ITI, related instruction centers,the candidate will be recruited in the particular
firm.
7. Campus selectionThis is the another important external sources recruitment. with the help of campus selection the
candidate will be selected in the particular firm. During this period, the employee will be allowedto exhaust the leave standing to his credit.
Formatted: Bulleted + Level: 1 + Aligned at:0" + Tab after: 0.25" + Indent at: 0.25"
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Terminal Benefits Mode of Recruitment for Fresher:y Written testy Psychological testy Physical Endurance Testy Group Discussionsy Preliminary Interviewy Final Interview
Pre-Employment Medical Checkup done by Companys approved medical institution . Selection is based on the fitness certificate issued by the approved medical institution. The
medical institute provide the fitness certificate on the basis of urine normal test, blood test
etc
The appointment order will be issued by the personal and administration or by managing
director. The appointment order will include the -
Date of joining the duty
Period of probation
Duties and responsibilities etc
Methods of the recruitment
With the help of three methods the employs will be recruited in the NGIL
Direct method
With the help of campus recruitment the employees will be selected in the particular
organization.
Indirect method
With the help of journals, magazines. The advertisement will be provided by the NGIL.
Third party method
With the help of a third party the employs will be recruited in the particular organization.
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AD ATAGES OF CENTRALISED RECRUITEMENT
It has the benefit of centralized promotion.
It has the benefit of centralized transfer.
It is very helpful for uniformed recruitment.
It is very helpful for reducing the advertising cost.
AD ANTAGES OF DECENTRALISED RECRUITMENT
With the help of decentralized recruitment the unit can understand the real background of the
candidate.It is helpful for placing the right person.
Placement/Induction:The appointee will report to the Head(P&A) who will brief the appointee regarding the general
information about the Company and introduce the appointee to the concerned Division Head. After meeting the Division Head, the appointee will report to the Admn.-in-Charge of the
concerned division where hell be required to fill up various forms regarding PF, ESI,
gratuity etc. The appointee will also fill up a joining report form. The Admn.-in-Charge will
brief the appointee on the various procedures to be followed and will direct him to the
concerned Department Head. Subsequently, the appointee will undergo an induction training programme.
Performance Appraisal: The appointee will be assessed by his immediate superior, and the Department Head while
hes undergoing the Training/probation. At the end of the training/probationary period, a performance appraisal format will be
forwarded by the P&A Department to the concerned Department. The concerned Department
will do the Performance Appraisal and send back the Appraisal Form to the P&A Dept. with
specific recommendations. On receipt of the recommendations, the P&A Dept. will process the necessary papers for the
regularization/confirmation/ extension of the training/probation as the case may be. However,
the appointee will be given a feedback on the Performance Appraisal by the concerned
Division Head in the presence of the Admn.-in-Charge, especially upon an adverse remark.
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Confirmation: On completion of the stipulated probation period, the appointee will be confirmed in the
service of the Company in writing. The confirmation order will be issued by the Head(P&A) and will be served on the appointee
through the Department/Division Head. In the absence of a Confirmation order in writing, the appointee will continue as a
probationer, till such time the confirmation order is issued.
Promotion Policy
Upgradation within the Level: In the normal course upgradation from lower grade to the next higher grade within one level
will be given within a timeframe.
Promotion from Lower Level to Higher Level: Promotion from lower level to next higher level will be based on the following criteria.
(1) Availability of a position in the higher level.
(2) Suitability of the candidate in terms of experience in the lower level, prescribed
qualification and aptitude.
In case more number of candidates are available for promotion to a post in the next higher
level the promotion will be based on written test and/or interview. Promoters shall be entitled to a applicable fitment benefit and a promotion increment in the
higher grade.
Internal promotions:
y To the extent possible recruitment by internal promotions will be resorted to, subject to
availability of suitable candidates with required experience in the lower grade. Promotion
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y Holiday/LTA depending upon the eligibility criteria Biennialy Reimbursement of Annual membership fee of Professional Bodies
W elfare Measures Housing Loan Interest subsidy Provision of Uniform and Shoes. Medical reimbursement scheme
Reimbursement actual medical expenses based on production of bills subject to a
maximum of one month Basic Pay plus Dearness Allowance per year with facility for
accumulation on the unexpired balance without any upper ceiling. Loans for purchase of Computer systems at a nominal rate of 2% per annum
Interest free loans facility for professional education of the Management Staff
subject to certain conditions. Mediclaim cover for self and dependents on contributory basis for covering
hospitalization medical expenses. Personal Accident coverage Policy Leave Benefits
Casual Leave...10 days/yr
Sick Leave..10 days/yr
Earned Leave30 days/yr
Mediclaim Insurance Coverage
This scheme is mainly intended for employees who go out of the purview of the coverage of ESI.
y All employees covered by the medical reimbursement scheme, shall be covered under a
group Mediclaim Open policy for meeting the medical expenses on account of
hospitalization.
y 50% of the premium will be borne by the Company.y Benefits under the Mediclaim policy will be available only for treatment connected with
hospitalization for a minimum period of 24 hours.
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y The claims under the Mediclaim Policy will be forwarded to the insurers through theCompany and the amount realized will be released to the concerned employee through
the Company.
The candidate will be provided the better training policy with the probation period. it help to
enhance the good morale of the employees in the particular organization.
Training Policy
Standard Operating Procedure for Training Programs
1.Identification of Training Needs: -
Needs will be identified by the concerned Department Heads. While identifying the needs, the
suggestions put forth by the participants in the previous years training programs, will also be
taken into account. Manager (Training) will convene meetings at the Divisions /R. O. in the
month of January every year to assist the Department Heads to assess the training needs.
Manager(Training) will consolidate the Training needs and evolve a draft training plan in
consultation with ED(HR&G) and circulate the draft to the Division Heads, by the 3 rd week
February every year
2. Preparation of the Final Training Plan:-Manager(Training) will discuss with the Division Heads regarding the draft training plan. He
will incorporate the changes, if any, in the plan and a final training plan will be prepared and
submit to ED (HR&G) for inclusion in the Training Budget. After obtaining the Training
Budget approved, Manager(Training) will send copies of the Training plan to all concerned,
latest by the third week of March every year.
3. Conducting of the Training Program :-
Manager(Training) shall ensure that all the Training Programs are conducted as per the
schedule drawn up. Main steps to be followed are:
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(a) Identifying Faculty
Internal - As suggested by the Division Heads.
External - From the panel of faculties available in the Training Department or
. specific faculty suggested by the Division Heads
(b) Structuring the Program
Fixing the date of training program and venue in consultation with the
Department/Division Heads. Drawing up the list of participants in consultation with all
concerned and issuance of formal notice. Getting course material from the facultyconcerned and making sufficient no. of copies for circulation among participants.
c) Conducting of the Training Program
Manager(Training) will make arrangements for the smooth conduct of the programme on the
dates/at the venue.
4. Getting Feedback on the Effectiveness of the Program
Manager(Training) will get the feedback on the effectiveness of the Training Program by
a 3-Tier assessment method as follows:-
(a) Feedback from Individuals
At the end of the Training Program a questionnaire will be circulated to all participants
wherein the following parameters will be evaluated on a five point scale i.e. Excellent, Very
good, Good, Average, Poor.
(i) Usefulness of the program to the participants.
(ii) Depth of the program content.
(iii)Rating of the faculty in terms of his/her presentation skills, ideational fluency, knowledgeof the subject, ability in bringing about attitudinal changes in the participants.
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(b) Feedback from the Department/Division Heads
After three months of conducting the Training program, Manager(Training) will send an
evaluation sheet to the concerned Department/Division Heads to assess the effectiveness of
the training program with specific reference to the following areas.
(1) Application of the new skills acquired - By immediate superior
(2) Behavioral/attitudinal changes visible - By Middle Managers as a result of the Training
program
(3) Overall evaluation of the participants. - By the Division Head
5. Corrective Action
Based on the evaluations made by the participants as well as the Division Heads
Manager(Training) will initiate appropriate corrective action with focus on the following aspects.
(a) Reviewing the course content/duration.
(b) Changing the faculty if needed.
(c) Retraining the participants to make up the shortfall in
performance/for bringing about the desired attitudinal changes.
(d) Restructuring the training program to increase the usefulness to
the participants.
6. Preventive Action:
In case of non-conformities, suitable preventive action is initiated to avoid recurrence of such
non-conformities in future. Such cases are reported in the Corrective and Preventive Action
Committee Meetings. The effectiveness of the corrective/preventive action is regularly
monitored.
7. Improvements:
Continuous improvement being the backbone of TQM HR strategy, the systems and procedures
are periodically improved and revamped if found necessary. Such improvements are reported at
the Corrective and Preventive Action Committee Meetings.
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Retirement
Age of retirement
Every employee shall retire on the attainment of 58 years of age.
Date of retirement
An employee will retire from the service on the last day of the month in which he superannuates.
Notice of Superannuation
An employee attaining superannuation shall be given a prior written notice 1 month in advance,
indicating the date of his superannuation.
During this period, the employee will be allowed to exhaust the leave standing to his credit.
Terminal Benefits
An employee on superannuation shall be entitled to the following terminal benefits:
a) Gratuity@15 days pay for every completed year of service.
b) Encashment of earned leave: the entire earned leave standing to the credit of the employee as
on the date of superannuation will be allowed to be encashed
c) Salaries/wages up to the date of retirement
Service certificateAn employee who superannuated shall be entitled for a service certificate on the date of
superannuation.
Settlement of PF, pension schemes etc
The papers regarding settlement of the PF, pension scheme etc will be processed well in advance
and forwarded to the authorities immediately after the superannuation of the employee
concerned. The Company will follow up the matter and will ensure that the superannuated
employee gets the benefits without much delay
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Manpower Strength
Table no: 1
Ossein
Division
Gelatin
Division
Registered
Office
Bamni Plant total
Mgt. Staff 32 46 35 18 131
Workmen 116 106 21 112 355
Total 148 152 56 130 486
Shift Working
Shift Timings:
a) Ossein Division :
Relay shift: A shift7:00 am to 3:00 pm
B shift3:00 pm to 11:00 pm
C shift11:00 pm to 7:00 am
b) Gelatin Division:
Relay shift: A shift7:30 am to 3:30 pm
B shift3:30 pm to 11:30 pm
C shift11:30 pm to 7:30 am
c) Registered Office:
Only general shiftMonday to friday .. 9:00am to 5:00 pm
Saturdays9:00 am to 1:00pm
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Human Resources Information System
A human resources information system (HRIS) is a system of software and supporting
computer hardware specifically designed to store and process all HR information. Also known as
HRMS, human resources management systems or less commonly, HRIMS, these systems are the
mainstay of modern HR departments. Traditionally, human resources departments relied on
multiple programs in each department. An HRIS integrates all of these programs through a
common database and single-user interface. An HRIS combines separate HR systems into a
centralized database that performs the majority of HR transactions. HRIS are particularly useful
for payroll and benefits administration.
HRIS in NGIL consists of
1. Employee profiles
2. Training details
3. Reminders
4. Reports
5. Master forms
6. Miscellaneous forms
7. Payroll- MIS
8. Administration details etc
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5.2.2 Commercial Department
The objectives of commercial department are:
y 1. To procure the necessary materials, supplies etc., of proper quality
y 2. To procure them at the lowest possible ultimate cost.
The task of the purchasing department is to have on hand necessary goods to ensure
uninterrupted production of a product of satisfactory quality is the lowest possible expense. More
briefly summarized, it is to obtain what is wanted, when it is wanted, where it is wanted of the
right quality and the right cost.
Functions of the Commercial Department
1.y Locating and selecting sources of supply for materials required
2.y Interviewing suppliers, representatives, arranging conferences and plan visit
3.y Verifying quality and quantity received
4.y Maintaining records necessary for proper operation of its function
Salient features of Commercial functions of NGIL
y Hygiene and sanitationsy Concept of trace abilityy Assurance of safe raw material for manufacture of safe gelatiny certificate of Veterinary Doctors
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ORGANISATIONAL ART - OMMERCIAL DE P ARTMENT
C h art 0 o:5
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5.2.3 Marketing Department
Marketing is fundamental organizational function, basic for its survival, sustenance and growth.
It has philosophical and strategic overtones for the individual organization, to the extent that this
function aims at achieving some of the basic organizational objectives. Peter Drucker says, The
purpose of business is to create a customer. This statement highlights the basic reason for the
existence of any business organization.
Marketing can be identified into types retail and corporate business. NGIL follows corporate
business marketing.
NGILs products are marketed directly to the customer or through dealers to the customers.
Marketing Functions
1)1. Identifying new markets
2)2. Sales
3)3. Sales review
4)4. Ensuring customer satisfaction
5)5. Business Development functions
5.6.Conceptualising new business Opportunities
6.7.Project Identification and Feasibility Study
7.8.Sourcing Know-how, preparation of action plan, selection of site, compliance to
regulations
8.9.Plan, co-ordinate, implement and monitor the individual projects
Gelatin
Gelatin is produced from collagen which is a main protein found in animal skin and bones.
Gelatin contains 84-90% protein, 1-2% mineral salts and the rest is water.
Gelatin is specified and classified to three types according to their application. They are:
1.1) Edible Gelatin2.2) Pharmaceutical Gelatin
3.3) Photographic Gelatin
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Edible Gelatin : The most common form of Gelatin is edible Gelatin. Edible Gelatin is used in
confectionery, Gelatin Desserts, diary products, Beverages& Juices
Pharmaceutical Gelatin : Gelatin is used as an ingredient to manufacture two-piece hard
capsules, soft gelatin capsule, tablets & tablet coating.
Photographic gelatin : this grade gelatin is used in applications of paper , film and inkjet paper
Major Competitors of NGIL Gelatin
Global Indian
D&F, Germany SterlingGelice, Japan Pioneer
P.B., UK IGCL
Rousselot Narmada Gelatin
Nippi, Japan Raymon
K&K, US CJ
The plant capacity of G.D is 3300 MT and 3000 MT of Gelatin is produced by NGIL in a year.
Of which 70% of Gelatin is exported and the remaining 30% is sold in the domestic market. The
major customer of Gelatin in the export market is Nitta Gelatin Inc. Major countries where NGIL
exports gelatin are Japan, Jordan, Iran, Turkey, Dubai, Oman, Srilanka, Singapore, Netherlands,
US, Canada, Australia, Egypt, Thailand, and Indonesia. Domestic market share covers the main
cities like Bangalore, Mumbai, Pune and Chennai.
Ossein
NGIL manufactures ossein under the technical guidance of NITTA & exports Ossein to Nitta,
Japan on a buy-back agreement. Also Ossein is used to manufacture Gelatin. NGIL is having is
having an Ossein production capacity of 7000MT and set up facility to produce 5000MT Limedossein
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Ossein comes in two types:
1. Dry Ossein
2. Wet Ossein(limed ossein)
Dry Ossein is exported to NGI and limed Ossein is sent to the gelatin plant for manufacturing
gelatin. Ossein is an intermediary product and not sold in the market directly. Under the business
collaboration with NITTA, NGIL supplies 70% of Ossein to NITTA on a 100% buy-back
agreement; Remaining 30% is transported to Gelatin Division as a raw material for the
production of Gelatin. There is a special transport arrangement to carry Limed Ossein from
Koratty (Ossein Division) to Kakkanad (Gelatin Division).
Di-Calcium Phosphate (DCP)
Di Calcium Phosphate is a by-product which is extracted while manufacturing ossein from
crushed bone.
NGIL is the market leader in the production of premium DCP (animal feed grade). With over
twenty years of expertise, NGIL produces and supplies premium quality DCP to all major
poultry and animal feed manufacturers in India. The plant capacity of Di Calcium Phosphate is
15,000 MT .50% DCP is sold in domestic market through agents and also by direct selling. The
States where DCP sold are AP, Karnataka, Tamilnadu, Maharashtra, Orrisa, Chattisgarh. In AP
and Karnataka there are appointed agents to sell the DCP. Nearly 50% of the production is
exported to countries like Thailand, Malaysia, Indonesia, Philippines, Singapore, Sri Lanka and
so on, for the same purpose.
NGIL DCP Sales :
1. Through the consignment agencies
2. Export
3. General
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Promotional Efforts
Advertising and sales promotion activities: The nature of the product of NGIL is such that they
dont require any aggressive sales promotional activities. Products are targeted to a particular
group of customers and it is easy to identify and spot the customers and they are constantly being
in touch with their customers. However on requirement basis NGIL conducts sales promotion
activities by advertising the products through posters, event sponsorships, and sales exhibitions
and in Pharmacy Journals.
Apart from these frequent market visits are conducted to study new market entries. Test
marketing and marketing share analysis are carried out to check the status of their products in the
market.
Marketing Strategy
Market- oriented strategic planning is the managerial process of developing and maintaining a
viable fit between the organizations objectives, skills and resources and its changing market
opportunities. The aim of strategic planning is to shape the companys business and products so
that they yield target profits and growth.
The main marketing strategies adopted by NGIL are:
y Customization: customization is the art of tailoring the product according to the needs of the customers. It is the ability to prepare individually designed products and
communication to meet each customers requirements. Today customers are taking more
individual initiative in determining what and how to buy. They log on to the internet;
lookup information and evaluations of product or service offers; dialogue with suppliers,
users and product critics; and make up their own minds about the best offer. NGIL
believes in the strategy of customization. To achieve this objective the marketing
department of NGIL undertake following activities.
y Preparation of marketing plan (periodically both in short term & long term)y Modification of product to suit the customers needs.y Delivering the products in time
y Contact with Q.A to meet the standard of the product.
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y Analyzing the competitiony Attending customers complaintsy Keeping alert with global scenarioy Analysis of sales performance
y Collection of marketing information (from customers, competitors and regulatory
authorities. The methods of collecting marketing information are through market surveys,
telephonic conversation, direct meetings, and from the media.)
y Advertising and sales promotion activities: (the nature of the product of NGIL is such
that they dont require any aggressive sales promotional activities. Products are targeted
to a particular group of customers and it is easy to identify and spot the customers andthey are constantly being in touch with their customers. However on requirement basis
NGIL conducts sales promotion activities by advertising the products through posters,
sales exhibitions and in Pharmacy Journals.
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ORGANISATIONAL CHART - MARKETING DE P ARTMENT C h art 1 o:6
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5.2.4 Finance Department
Finance is the lifeblood of any business. It is an important section in the finance department. It
plays an important role in the overall accounting procedure of the organization. All the major
works are done in the finance and accounts section.
Functions of Finance and Accounts Department:
y To check whether accounting system is properly maintained or noty To see that posting of ledgers, passing of vouchers etc are properly done.
y Total analysis of income and expenditure accounts.
y Preparation of yearly budgets such as capital budget, revenue budget etc.y Capitalization of the assets
y Confirmation of balance of deposits, advances, if anyy Preparation of Trial Balance, Profit & Loss account and Balance Sheety Reconciliation of inter unit accountsy Attending all audits like statutory audit and preparation of all schedules related to Profit
& Loss account and Balance sheet.
y Disbursement of wages / salaries.
y Scrutiny and approval of funds needed by various departments of the organizationy Loan recoveries
y Tax remittancey P.F contribution remittancey Leave encashment, retirement benefits, welfare, recoveries and remittances, medical
facility for accident compensation etc are provided.
Budgeting
The company follows historical budgeting and prepares yearly budgets for the company as a
whole. And also separate for Registered office, Ossein and Gelatin divisions.
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Investment Proposals
Company is right now implementing a capital project on capacity expansion of gelatin plant to
capitalize on the economies of large scale production. In addition to the above the company is
also contemplating massive investments on related areas of business to take care of any
eventualities in the export market.
Significant Accounting Policies:
Basis of Accounting: The financial statement are prepared under the historical cost convention
on accrual basis expect as otherwise stated and in accordance with the applicable AccountingStandards
Uses of Estimated: The presentation of financial statements in conformity with the generally
accepted accounting principles requires estimated and assumptions to be make that affect the
reported amount of asset and liabilities on the date of the financial statement and the reported
amount of revenues and expenses during the reporting period. Differences between the actual
result and estimated are recognized in the period in which the results are known/materialized
Depreciation:
Depreciation on plant and Machinery (other than service equipment) is provided on straightline method. The rates adopted are as prescribed in Schedule 2 IV of the companies act, 1956
read with circular no/1/1/86 dtd 21.5.86 of the Department of company affairs, Government of
India except, in respect of the items having value in excess of Rs.5000/-, which are depreciated
at higher rates of the basis of technical evaluation by the management.
Research and development:
Research and development cost is expensed in the year in which it is incurred unless the future
benefit thereon is certain
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Income tax:
The provision for current tax is made based on the tax payable under the income tax act 1961
Deferred tax assets/ Liabilities representing timing differences between accounting income and
taxable income are recognized to the extent considered capable of being reversed in subsequent
years
Export incentives:
Export incentives are recognized on exports based on the estimated realizable value of such
entitlements.
Foreign currency Transactions :
Monetary items denominated in foreign currency are reported at the exchange rate prevailing as
at the date of the Balance sheet and the resultant exchange gain/loss if any has been adjusted to
profit and loss account to the extent they related to items other than liabilities incurred for
acquiring fixed assets and those relating to liabilities for fixed assets which have been adjusted to
the carrying cost of such assets.
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ORGANISATIONAL CHART - INANCE AND ACCOUNTS
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5.2.5 Secretarial Department
Duties of Company Secretary:
The duties of a secretary may be classified into two divisions. Statutory duties and General
duties.
Statutory or legal duties:
y Maintenance of statutory books of the company, such as Register of members, Share
Transfer Book, The Minute Book, Register of Charges, Register of investments, Register
of Directors, Managing Director, Manager and Secretary
y Supervising the issue of allotment of shares, share transfers and forfeiture of share, stock,
bonds and debentures of the company and the issue of share certificates and other legal
documents
y Keeping the common seal of the company in safe custody and using it only when
authorized by the Articles and the Board of Directors
y Ensuring that the activities of the company are not ultra vires the Memorandum of
Association, or the Company Law.
y Sending out copies of Balance Sheet, Profit and Loss Account and Auditors report.
General Duties:
y He has responsibility of properly organizing the officey The secretary acts as a connecting link between the company and the shareholders
y It is his duty to project the companys image in the minds of the public at large
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ORGANISATION CHART SECRETARIAL DE P T ..
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5.2.6 Production department
Manufacturing in its broadest sense is decidedly an art. There are three important phases of
modern manufacturing.
y Planning of Production
y Supplying of men, machines and materialsy Controlling of production quality and process.
The production department sets targets during the periodical common division meeting. From
this plan, daily production target is determined. The daily production detail is given to
commercial department for procurement of raw materials. For the smooth going of production,
the production department is always in contact with commercial department, and stores
department. The main objectives of production are:
y To ensure that all the products will have consistent qualityy To achieve maximum customer satisfactiony To foster team work for optimum productivity of men and machineryy To meet the environment regulations with emphasis on safety of all the employees and
maintain the best house - keeping standards.
5.2.6.1 Production processThe main raw materials used for the production of gelatin are Crushed bone, Hydrochloric Acid,
and Hydrated Lime. Ossein (intermediary product) becomes the raw material in the gelatin
division after the de-mineralization process of crushed bones.
The production process of gelatin is described below:
Demineralization:
The bones are received crushed -- broken into small pieces no larger than one-half inch. Crushed
bone is loaded into concrete tanks, each of which holds greater than 10 tons. The bone is
demineralized by soaking it in hydrochloric acid. Demineralized bone is called O ssein .
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0" + Tabafter: 0.25" + Indent at: 0.25"
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0.25" +Tab after: 0.5" + Indent at: 0.5"
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In this demineralization step, phosphate is dissolved out of the bone and collected. In asubsequent step it is converted into Dicalcium Phosphate , which is used as an animal feed
supplement and as fertilizer.
Liming:
The Ossein which became pliable during the demineralization process, is washed and placed in
liming tanks where it remains for a period of weeks.
Extraction:
After the liming process is completed, the Ossein is washed and treated with acid. It is then
placed in large stainless steel tanks where several hot water extractions are made from each batch. Each extract is, in reality, a gelatin solution at this point.
Refinement:
The solutions are filtered and concentrated in evaporators. They are chilled, set and forced out
through a nozzle in spaghetti-like strands onto a conveyor made of wire mesh screen.
Drying and Grinding:
This solidified gelatin is then conveyed through an air tunnel. Heated air is blown through it and
it becomes out dry and brittle. It is put through a grinder, and ground into a fine powder. This
powder is stored in large boxes until quality tests can be made.
Lab Testing:
After drying, lab testing will be conducted.
Post Processing: After testing, the different gel batches (each with its special characteristics)
are blended to meet the requirements of user - whether it's for photographic film or paper,
pharmaceutical use, or edible.
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Th e fo 5 5 ow 6 7 g c h ar 8 grap hi ca 5 5 y de 9 cr ib e9 8 hei r ge 5 a 8 in prod @ c 8 i on proce 9 9 :
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Engineering Services Department (Maintenance)
According to Alfred and Beaty, Maintenance in an industrial plant is the upkeep, repair,
renewal and replacement of worn, damaged, or obsolete parts of buildings, machinery and
equipment. Maintenance aims primarily to keep in efficient operating condition the productive
plant and equipments, their auxiliaries, general engineering services, material handling units etc,
as well as to keep in good state of repair the buildings and structures. Maintenance also aims at
keeping to the minimum possible level down-time of such plant and equipment so as to ensure
their higher availability for production.
There can be two types of maintenance: Preventive and Corrective .
Preventive Maintenance implies frequent inspection to detect minor faults and the early
correction of them, supplemented by periodic overhauling in accordance with a plan so that the
possibility of a major breakdown is almost entirely eliminated. On the other hand, corrective
Maintenance means that action is taken only when the need for it becomes obvious, and therefore
gives no assurance that a major breakdown will not occur.
CES in NGIL is responsible for equipment and plant maintenance, breakdowns and
improvements. For maintenance to be done by external contractors approval from MD & Finance
department are to be sought.
Duties and responsibilities
Deputy manager Bring machine breakdowns to zero Track schedules for maintenance of machines Prevention of equipment failures
Senior Engineer
y Maintenance planning activityy Planning materials for shut down and daily works
Engineer
Formatted: Bulleted + Level: 1 + Aligned at:0.25" + Tab after: 0.5" + Indent at: 0.5"
Formatted: Bulleted + Level: 1 + Aligned at:0.25" + Tab after: 0.5" + Indent at: 0.5"
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5.2.6.2 Quality Assurance and Quality Control
NGIL gives paramount importance to the quality of the product. To suite the customers needs
Q.A/Q.C department of NGIL regularly evaluate the production process starts from raw material
inspection and assessment of the finished product whether the product has met all the standard
quality requirements.
Quality Control stands for the systematic control of those variables, which affect the excellence
of the ultimate product. The general quality control process involves:
y Establishment of quality standards
y Ascertainment of quality deviationy Evaluate the methods of process of production and suggest improvementsy Accelerate the sale by presenting only the quality goods
The main functions of this department are
y Control of raw materials
y Standards and specificationsy Control over production operations
y Testing the quality of the equipment and other devices
y Gaining control of quality through location of inspection points
y Amount of inspection desired
y Development of quality consciousnessy Quality control of products through standardization of products and prior shipmentsy Application of statistical methods of quality control through the devices such as
sampling, frequency distribution, quality control charts, standard deviation, range,
probability theories etc.
y Maintenance of adequate inspection and control record.
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0.25" +
Tab after: 0.5" + Indent at: 0.5"
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0.25" +Tab after: 0.5" + Indent at: 0.5"
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Quality Assurance certifications
With the objective of providing credibility and quality assurance to their customers the company
has been certified
ISO 9001:2000 - Ossein Division, Gelatin Division andBamni Proteins Limited
HACCP - Gelatin DivisionOssein Division
Drug Manufacturing License - Gelatin Division
WHO-GMP - Gelatin Division
EDQM - Ossein Division, Gelatin Divisionand Bamni Proteins Limited
USFDA - Gelatin Division
IFANCA & MUI Halal - Gelatin Division
KOSHER - Gelatin Division Completed Inspection by European Union Certification in October2008 Poised for ISO 14001 Certification for GELATIN Division
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Quality policy
We in NGIL are committed to enhance customer confidence through continual improvement of
product quality, safety and service . It is this simple realization that urged them on across the
last twenty years to focus solely on quality. Perhaps it is this preoccupation with quality that won
them rich dividends- awards for quality and performance, discerning clients across the world and
a steady growth rate, NGIL combines the best technology, marketing expertise and most
importantly, dedicated human resource. All of which go a long way to ensure their clients
absolute quality.
y Sustained quality through advanced technology : Their association with NITTAgives them access to the latest technologies in the industry. A whole time Joint Managing
Director from NITTA heads technical operation. Gelatin quality control is directly under
a Quality Control Manager for NITTA. A full-fledged R&D department focuses on
innovation, improvisation and process development.
y Quality Customer Service: Comprehensive customer orientation is one of NGILs
entrepreneurial guidelines. We believe that technically demanding products are only as
good as theyre accompanying services. Excellent customer support service and prompt
delivery has helped them establish a long-term relationship with customers. Their support
services include after-sales guidance, technical advice and usage related solutions.
5.2.6.3 Stores Department
A store keeping is defined as that aspect of material control concerned with the physical storage
of goods. It is the connecting link between the planning and production department and the
shops. The main facets of the stores keeping services are receiving, recording, storing and
preserving, issuing, replenishing and controlling the materials.
Stores department of NGIL is segregated into two namely, general stores and the engineering
stores. General stores concentrates the storing of raw materials needed for production and
engineering stores is concerned with the storing of tools and material equipments.
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0.25" +Tab after: 0.5" + Indent at: 0.5"
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0.25" +Tab after: 0.5" + Indent at: 0.5"
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Objectives of storekeeping :
There are three principal objectives of stores keeping:
y To safeguard all goods in storage against losses
y To have available all such goods ready for prompt delivery when properly authorized, andy To provide maximum stores keeping service to the manufacturing and sales department at a
minimum cost.
Function of storekeeping department:
1.y Receipt of materials into store
2.y Record keeping of materials in store
3.y Storage of materials
4.y Maintaining stores
5.y Issuing stores
6 .y Co-ordination of storekeeping with materials control
Formatted: Outline numbered + Level: 1 +Numbering Style: Bullet + Aligned at: 0" + Tabafter: 0.25" + Indent at: 0.25"
Formatted: Outline numbered + Level: 2 +Numbering Style: Bullet + Aligned at: 0" + Tabafter: 0.25" + Indent at: 0.25", Tab stops: Not at 1"
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Chapter- 6DATA ANALYSIS AND INTERPRETATION
6.1 Financial Highlights
Table no: 2
Particulars 2008-2009Rupees
2007- 20078
Rupees Profit before depreciation
And Income Tax
Less: DepreciationLoss/ Profit before Tax
Provision for income tax /FBT
Provision for Tax under(current year)
Provision for Tax of earlier years
Profit/Loss after tax
Balance profit available for appropriation
Transfer to general reserve
Proposed Dividend
Dividend Tax
Balance of profit/ loss brought forward
from previous year
Balance Profit/Loss
carried to Balance Sheet
1,617,864,172
64,979,838
246,637,566
1,524,745
27944036
1324956
150193829
150193829
40000000
25200000
4282740
51746023
28965066
1,385,706,643
64,375,61072,890,851
1400000
8258533
(3375169)
66607487
66607487
3400000
12600000
2141370
100212140
(51746023)
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.
In 2008-09, sales has increased by 25% over the previous year to Rs 182.48Crores as
result of increased demand of Ossein from collaborators, increased production and sales of
Gelatin and also better sales realization of DCP. Ossein turnover increased by 20% mainly on
account of increase in price and depreciation of rupee against US Dollar. Gelatin turnover
increased by 30% to Rs. 84.06Crores compared to 64.89Crores during the previous year
mainly on account of increase in sales quantity and weakening of Rupee against US Dollar.
DCP sales increased by 21% to Rs. 52.31Crores compared to Rs.43.18crores mainly on
account of increase in volume and price.The Gross profit (earnings before interest, depreciation and taxes) for the current year was
Rs. 34.49Crores as against Rs. 17.61Crores in the previous year. The operating profit
(including other income) was Rs. 31.16Crores as against Rs.13.73Crores in the previous
year.
The interest expenses and depreciation for the current year was Rs. 3.34Crores and Rs.
6.50Crores as against Rs.3.88Crores and Rs.6.44crores of the previous year.
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FINANCIAL ANALYSIS
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F i gH
reI
o: 1
INTER P RETATION :
The curren t rati o of fi rm mea s ures its s hor t-term s ol vency. In a s ound bu si ness a curren t rati o
of 2 P 1 is con sid ered an id ea l one.The curren t rati o of the company f or the pa st f our year s w as
qu it e f avorab le. It indi cates that the company ha s a f avorab le li qu idit y positi on.It prov id es a
marg in o f saf et y t o cre dit or s . It als o s hows an a d equa te w ork ing cap it al
2) Q UICK RATIO Qui ck ra ti o est ab lis hes a re lati onshi p be tw een qu ick or li qu id ass ets and curren t li abiliti es .
Quick R ati o = C urren t ass ets Inven t or ies C urren t li abiliti es
T aQ
R e S o: 4
YEAR 2004 2005 2006 2007 2008
R A TI T 1.55 1.45 1.29 1.46 0.94
F ig U re S o:2
0
0 .20 .40 .60 .8
1
1 .21 .41 .61 .8
2004 200V
2006 2007 200 8
Q UIC W RAX
IO
rat Y `
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INTER P RETATION :
Qui ck a ss ets ref er s t o curren t ass ets w hi ch can be conver ted int o ca s h immedi atel y. Qui ck
rati o o f 1 a 1 is consid ered s atisf ac t ory a s a fi rm can ea sil y mee t all its curren t li ab iliti es . b or
the pa st year s excep t the last year the ra ti o is grea t er than 1 a 1. c ut f or the last year the ra ti o is
0.95 a 1. Th is indi cates the fi nanc ial positi on is not s ound .
TURNO VER RATIOS :
Th is rati o h i ghli ghts upon the ac ti vit y and opera ti ona l effi ciency o f the bu si ness concern.
Turnover ra ti os mea s ure ho w effi cientl y the a ss ets are emp l oyed by the fi rm. The s e ra ti os
indi cate the s peed wit h w hi ch a ss ets are be ing conver ted int o s ales . The sera ti os are a ls o
call ed effi ciency ra ti os or ac ti vit y rati os
3 ) DEBTOR S TURNO VER RATIO
Th is rati o indi cates how much o f the t otal sales are o f credit
d ebt ors turnover ra ti o =e
et S ales
A verage d ebt ors T a f
g
e h o: 5
YEAR 2004 2005 2006 2007 2008
R ATI
i
15.56 17.11 17.99 13.27 15.53
0
2
4
6
810121416182 0
2 00 4 2 00 5 2 00 6 2 007 2 00 8
DrS TURNOVER RATIO
p q t r s
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F i gt
reu
o: 3 4 ) F IXED ASSETS RATIO
The ra ti o o f fi xed ass ets t o ne t w or th indi cates the ex ten t to w hi ch the s hareho ld er s f unds are
s unk int o the fi xed ass ets .
v ixed A ss ets t ow
et w or th R ati o = v ixed ass ets (aft er d eprec iati on)x ong term f und
Tay
e u o:6
YEAR S 2004 2005 2006 2007 2008RA TI 1.397 1.6899 2.505 2.7187 3.16
F ig t re u o:4
INTER P RETATION :
The ra ti o indi cates tha t in the initi al year s the company w as maintaining its fi xed ass ets
mainl y by the ou tsid ers f unds . The ra ti o ha s i mprove d over the pa st fi ve year s . In the last
tw o year s , company w as able t o ma intain a goo d propor ti on be tw een o w ner s f und and
outsid er s f und in ma intaining fi xed ass ets .
0
0 .5
1
1.5
2
2 .5
3
3 .5
2004 200 5 2006 2007 2008
F IXED A SS E
RA
IO
rat
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P RO F ITABILITY RATIOS
The pro fit abilit y ra ti os are ca l cu l ated t o mea sure the opera ti ng e ffi ciency o f the company.
rofit abilit y ra ti os may be c lassifi ed int o the f oll owi ng, gro ss pro fit marg in, ne t pro fit
marg in.
5 ) GROSS P RO F IT RATIO
Th is rati o indi cates the average s prea d be tw een the co st of goods s old and sales revenue.
ross rofit R ati o = ross pro fit x 100S ales
Ta
e o:7
YEAR 2004 2005 2006 2007 2008RA TI 0.26 -0.41 7.90 7.19 18.95
F ig re o :5 I
TERPRE TA TI
-5
0
5
10
15
2 0
2 004 2 00 5 2 006 2 007 2 00 8
G RO SS PROFIT RATIO
t
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6 ) NET P RO F IT RATIO
Th is rati o is the overa ll mea s ure o f the fi rms ab ilit y t o turn each rupee o f s ales int o ne t
profit .
et P rofit R ati o = P rofit aft er tax x 100S ales
Ta
e o:8
YEAR 2004 2005 2006 2007 2008
RA TI -2.53 -3.68 4.34 4.38 7.95
F ig re o:6
INTER P RETATION :
-6-4-2
0
2
4
6
8
10
2 004 2 00 5 2 006 2 007 2 00 8
N E
RO F I
RA
IO
rat j
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W ORKING CA P ITAL TURN O VER RATIO
Work ing cap it al turnover ra ti o = e t s ales Work i ng cap it al
Tak
l e m o:9
YEAR 2004 2005 2006 2007 2008
RA TIn
2.82 3.18 3.58 3.95 4.81
F ig o re m o:7
INTER P RETATION :A s the year pa ss es the company a tt ains increa si ng w ork ing cap it al . The increa s e in the w ork ing
cap it al indi cate the company is hav ing less expen s es and hi gh s ales
0
1
2
3
4
5
6
2 004 2 00 5 2 00 6 2 00 7 2 00 8
TURNOVER RATIO
rat
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7 3
6.2 SW OT AnalysisThe overall evaluation of a companys strengths, weakness, opportunities and threats is called
SWOT analysis. In general, a business unit has to monitor key macro environment forces
(demographic, economic, technological, political-legal, and social-cultural) and significant
microenvironment actors (customers, competitors, distributors, suppliers) that affect it s ability to
earn profits. The business unit should set up a marketing intelligence system to track trends and
important developments. For each trend or development, management needs to identify the
associated opportunities and threats. A major purpose of environmental scanning is to discern
new marketing opportunities. Each business needs also to evaluate its internal strengths and
weaknesses periodically. It can do so by using a Memo or checklist for performing strengths,Weakness Analysis. Management reviews marketing, financial, manufacturing and
organizational competencies and rates each factor as a major strength, minor strength, neutral
factor, minor weakness, or major weakness.
Strengths
y Technology: The technology used in the production of Gelatin by NGIL is world class
and there is a competitive technological support and assistance by the NITTA Inc, Japan.
y Collaboration with W orld Class performers : NGIL has an excellent tie-up withleading companies of the world
y K SIDCs Assistance : KSIDC is a fully owned company of the State Government and for
the business development and industrial promotion NGIL gets professional, technical and
financial assistance from this governmental agency.
y A vast global clientele y Dedicated, technically qualified peopley Committed to improving the quality of the society
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W eakness
Raw material transportation and availability: Raw material transportation is one of the
main problems that the company faces. Major part of the cattle bones is brought from North
India and they are being transported by trucks. Earlier raw materials were brought by
Railway goods service but often there were delays in getting the material on time since the
Railway Transportation Board gives last preference to such materials. Hence bringing entire
raw ma