CHAPTER 1

CHAPTER 1

INTRODUCTION

This organisational study is to understand how a company functions and to familiarise ourselves with the practical side of various management concepts. This report is prepared by me as a result of my organisational study conducted at Kitex Ltd Kizhakkambalam.Objectives of the study

1. To learn about the Textile Industry

2. To understand the Organisational Structure

3. Working of each Functional Areas

4. To carry out SWOT Analysis.

CHAPTER 2

INDUSTRY PROFILE]

Anna Group of Companies

More than 3- decades ago in 1968 when Mr. M.C.Jacob formed the Anna Aluminium Company, he made break with the past, belonging to an affluent family of plantation owners, he ventured in to the risky world of manufacturing industry and hoped for the best, by working very hard to make his maiden venture a success. Today the group is involved in the manufacture of aluminium sheets, vessels and utensils from aluminium, spices, fabrics, garments, bags etc The Anna range of vessels and utensils are highly popular in domestic market and in the Middle East, USA, Africa, and Australia. The group turn over is 200 crore or more

3.1- Anna Aluminium Company

Anna Aluminium is the flagship company of Anna Group. Engaged in the manufacturing and marketing of vessels and utensils as per ISI standards for the past three decades, it is presently the only company having ISI Certification for vessels in Kerala. The company manufactures vessels only using 99.5% pure aluminium ingots. The brand ANNA has become a household name in Kerala due to its high standards of quality and workmanship. The Company has more than 525 different varieties of vessels and utensils, marketed through more than 1200 dealer outlets in India.

Anna Aluminium has a wide range of vessels to cater to all necessities of a modern day kitchen. Depending on the various types of cooking and dishes, Anna provides more than 525 varied vessels and utensils. All the products are made of high standards and strict adherence to quality is kept. To maintain this quality, vessels and utensils are made using 99.5% pure aluminium. The Bureau of Indian Standards awarded ISI hallmark for all Anna Aluminium products. CHAKSON' is the brand name under which Anna Aluminium Company markets its range of packaged household products. CHAKSON brand Pressure Cooker commenced production in 1993, and the product captured one fourth market share within a short span of 4 years. As a hallmark of quality, Chakson Pressure Cooker is also approved by the Bureau of Indian Standards with its ISI certification. The company intends to expand the capacity of the unit and produce new items like Teflon coated utensils and Hard Anodized aluminium utensils. Chakson Thermal cookers were introduced in the market with the primary idea of conserving energy and saving considerable fuel and money while cooking. For those who believe in nutritious food the company have Chakson Multi steamers. Unlike conventional cooking utensils multi steamer preserves nutrition with the aid of innovative technology. Following the huge success story of CHAKSON Pressure Cooker in the inner lid pressure cooker segment, ANNA group has ventured into the outer-lid pressure cooker segment under the brand name ANNA Pressure Cooker with a product promise of safe and easy cooking. Unlike other outer-lid pressure cookers, Anna comes packed with its unique 4-way safety system to ensure that cooking with Anna is safer and easier than the rest.

3.2- Kitex limited Anna Groups weaving unit, KITEX LIMITED was established in 1975. The company is engaged in the production of fabrics made of cotton and other blends; Grey cloth, Bed sheets, and Lungies. Through the years, the company has carved a niche for itself in this highly competitive industry with its tradition of world class quality for its products. The Kitex range of garments manufactured in multi crore factories is a popular brand that is recognized not just within India, but abroad too, catering to the fashion conscious markets across the world. Made from 100% combed cotton, Kitex bed Sheets are suitable for all climates and comes in a variety of shades and designs. Some of the important products available under kitex are:

1. Dago Bert Shirting and Suiting.

2. Agna and Adonis Inner Wear

3. Scoobee Day Bags

4. Trawellday Bags

3.3 Kitex garments limited The 100% Export Oriented Unit under a separate name- KITEX GARMENTS LTD is devoted solely to the manufacture and export of readymade garments, as per export standards. The products include Ready made garments like hosiers, shirts woven, polar fleece, t-shirts, kids wear, nylon, jackets, pants/T/C fleece, shorts, night wear and cotton undergarments like innerwear, outwear and knitted cotton wears. The highly equipped and flexible manufacturing system makes KITEX GARMENTS extremely capable of adapting vigorously to the changing needs of the world fashion market. The unit is equally competent to execute tailor-made customer specifications along with standardized production. Moreover every single finished piece reflects kitex insistence on superior quality.

3.5 Sara spices Spices have been intimately bound up with the very fabric of Indian life and culture. This has been so since human civilisation began. Indian spices have been witness to, and often participants in history being made and unmade. They have inspired perilous adventures, fuelled human greed, triggered momentous wars, forged lasting friendships and caused the discovery of unknown lands. To this day, Indian spices hold sway over millions around the world. SARA SPICES is the condiment producing unit of the Anna Group. It is involved in the production and exporting of Curry powders, whole Spices, etc. for the past two decades. Since its inception in the year 1976, Sara Spices have come a long way, tingling the palates of gourmets the world over with its delicious range of Spices and Masala powders.

Sara Spices and curry powders are known for its high standards of quality and hygiene and have won accolades at home as well as abroad. It was awarded the AGMARK, the hallmark of quality in India. Sara curry powders include Jeera, Cardamom, Ginger, Turmeric, Red Chilly and Coriander. A wide range of masala powder are also available under this brand; which include Meat masala, Sambar powder, Rasam powder, Fish masala, Idli Chutney, Garam masala, Pickle mix, Chicken masala, Vegetable masala, Channa masala, Pav Bhaji masala, Biriyani masala and Vindaloo masala. Saras is bringing out Ready to cook (RTC) gravies as the modern sequel to curry powders in terms of ease of cooking. Saras ready to eat products offer the convenience of anytime food. The variety of products on offer are traditional Kerala meat, fish, vegetable and fish curries, payasam, biriyani, etc.

Acclaimed for the highest standards of quality, Sara Whole Spices and Curry Powders have been approved by:

FOOD AND DRUG ADMINISTRATION (FDA) of USA.

AGMARK of INDIA.

RECOGNISED BY SPICES BOARD OF INDIA.

SPICE HOUSE CERTIFICATE

3.6 Latest ventures Recently Anna Group has ventured into a number of areas. These include manufacture of instant food and hard products. It has also started fashion technology institute to cater to the increasing demand for qualified person in the world of fashion. Chapter- 4COMPANY PROFILE

4.1 OWNERSHIP PATTERNThe company Kitex Ltd was incorporated in 1975. It is a public limited company. The shares of the company are all internal shares .The company is not listed in the stock market Founder is Shri M.C.Jacob. The company doesnt have any promoter group. The duties of a promoter are carried out by the Board of Directors itself. Shri M.C. Jacob is the Chairman and Managing Director of the company. The other directors of the company include Mr. Bobby M Jacob and Mrs. Mini Bobby.

4.2 COMPANY HISTORYAnna Group's weaving unit,KITEX LIMITEDwas established in 1975. The Company is engaged in the production of fabrics made of Cotton and other blends, Grey Cloth, Bed sheets and Lungies. Kitex is engaged in the production of fabrics made of Cotton and other blends, Grey Cloth, Bed sheets and Lungies. Kitex lungies are available in four various types- Executive, Medium Super medium and Economy all priced differently. Kitex White' gives you an array of white dhotis single as well as double. It comes with streaks of colour and gold to add to the looks of your dhoti. They also have beautiful and wide range of bedspreads under the label of Sweet Dreams. Through the years, the company has carved a niche for itself in this highly competitive industry with its tradition of world class quality. Kitex markets its products through a network of over 2000 authorized dealers. KITEX fabrics are now exported to many parts of the world. KITEX is going in for a major expansion plan to augment the production capacity.

4.4 LEGAL FRAME WORK OF THE ORGANIZATION Legal frame work of the company means the rules and regulations which governs the company. To be more precise it means the rules and regulations that each and every Individual employee or employer of an organization should perform. Kitex Limited has a well structured legal frame work which can be considered to be the most important factor for the success of the organization.

A standing order has been issued to each and every members of the organization. This standing order prescribes the manner in which every member should perform; it also contains a detailed report on the rights of each individual in the organization.

An employer cannot dismiss a particular employee in the organization with out following certain procedures and they must act with in the legal frame work of the organization. It contains details regarding how an employee should perform in the organization or details of how an employee must behave in the organization.

4.5 VISION, MISSION &OBJECTIVES OF THE COMPANY

A world class manufacturing company focusing on all round business excellence through a Total Quality Management system with committed leadership, effective team work, delighted customers, and satisfied employees in an environment friendly organisation.

Vision To reach excellent quality standards in the coming years.To keep in pace with modern technologies and concepts.To organize supply of material at minimum cost without any compromise in quality.A world class manufacturing company focusing on all round business excellence through a total quality management system with committed leadership, effective team work delighted customers and satisfied employees in an environment friendly organizationMission To manufacture Fabrics and Processed fabrics as per the customer specification, efficiently in a professional and environment friendly manner, on time, and at the right cost with at most customer satisfaction to become a world class organization through continuous improvement.

Objectives1. Increase the production by 60% from the existing level by adding essential machinery, manpower and solving space constraints.

2. Increase sales of value added item by 20% from the existing level.

3. Increase product range by introducing new kids garments.

4. Reduce rejection by 10% from the present level.

5. Reduce customer complaint by 50% by improving the quality of the products and services.

6. Reduce the specific fuel and electricity consumption.

4.6 ACHIEVEMENTS OF KITEX LTD Mr. Jacob, the managing director of Kitex Limited has won several awards for his meritorious contributions in the field of business. To mention a few:

He has won the TRANSWORLD TRADE FARE Gold medal in the year 1975.

He has awarded the UDYOG PATHRA Award by the then Vice President of India Sri. B. D .JETTI in the year 1979.

A Memento was presented to Mr. Jacob in December, 1992 for his valuable contribution to the Evangelistic Convention held at Puthencruz.

Considering his outstanding contribution as an Industrialist Mr. Jacob was awarded the BUSINESS MAN OF KERALA 1999 award by the BUSINESS DEEPIKA, the business daily from one of the oldest Malayalam Newspaper Group.

KRISTHU JAYANTHY award for the year 2000 was conferred to Mr. Jacob during the 82nd ALL KERALA CATHOLIC CONGRESS for his noteworthy contribution to the economy of kerala.

For the meritorious services of Mr. Jacob to the community, he was awarded by Major Arch Bishop Mar VARKEY VITHAYATHIL in the year 2000, on behalf of the Most Gracious IGNATIUS MOOSA 1st, PATRIARCH OF VATICAN.

AKSHAYA AWARD 2000 for his outstanding contribution to Malayanma.

The Ernakulum Chamber of Commerce the Joseph Chakola Memorial Vyavasaya Jyothi Award to Mr. Jacob for the year 2000-2001.

Department of Catechism Ernakulam-Angamaly has recognized his contribution by giving a Memento for special service rendered to Catechism Teachers.

Bharat Aluminium Company Ltd (A Government of India Enterprise) Service recognition Award.

Samman Patra of Government of India, Ministry of Finance, Department of Revenue for outstanding revenue performance.

Advertising Industries media presented a Memento Kerala Adifest 2007.

Dhanam Brand Promotion Award (Scoobee day) for 2009.

ISO certification

Kitex got ISO 9001-2008 certification. They are committed to manufacture and deliver quality products. Kitex Limited is the leading manufacturer with ISO 9001 - 2008 in South India of all varieties of Grey Fabrics, Yarn dyed fabrics, Dobby and Leno dobby fabrics made of Cotton, Polyester cotton, Cotton Nylon, Cotton Flax, Linen, Cotton Linen, Cotton Lycra, Polyester Lycra etc. They can do any weaves / qualities like cambrics, sheetings, poplins, mulls, casements, drills, twills, linos, satins, bed fords, oxfords, stripes etc. They have 360 running Looms of Sulzer, Dornier & Simco making around 13, 00,000 Metres of fabrics every month. Chapter 5

PRODUCT PROFILEKitex is engaged in the production of fabric made of cotton of other blends, gray cloth, bed sheets and Lungies.

5.1 LungiesKitex lungies are available in various varieties like executive, medium, medium super, standard, economy etc.5.2 Dhotis

Kitex White gives the customers an array of white dhotis- single as well as double. It comes with streaks of colour and gold to add to its look. It is available in the rate between Rs.100/- to Rs.310/-.

Some of the varieties of dhotis available in Kitex are:

5.3 Bed- Spread

Kitex also have beautiful and wide range of bed spreads in the range between Rs.150 to Rs.550/-. Through the years, the company has carved a niche for itself in this highly competitive industry with its tradition of world class quality.5.4 Mull

Price ranges from Rs.40/- to Rs.60/-. Mulls are basically produced in two

Classes in Kitex. They are:

5.5 Scoobee Day Bags

At the dawn of new millennium the new generation was presented with an innovative school bag from Kitex, the main offshoot of Anna Group. ScooBee Day bags are compactly designed with unique features that make it durable, colourful, comfortable and easy to carry. The bag features anti strain shoulder paddings and acupressure buds specially designed to minimize the strain on the back and shoulders. Race through the features and see your heart fall in love with ScooBee Day.

Scoobee became a close companion to all school going kids. With shoulder strap cushions and rear padding for added comfort, scoobee day bags come in various colour combinations. Using Ribstob fabric and Leak proof material scoobee day bags are attractively priced. The unique features include special pouch for water bottles, Tiffin boxes and even a secret pocket.

Features Made from imported Dineer Nylon for durability

Shoulder strap cushion to prevent shoulder pain

Soft padding and acupressure buds on the rear side to cushion your back

Unique stitching using strong nylon threads

Quality zip with zip guard to prevent water leaking into the bag

Secret pocket to hold chocolate and money

15 different colour combinations

Special leak proof Tiffin box pouch at attractive price

Bags for college and travel purposes also available

5.6 Trawellday bags The Renowned Anna-Kitex Group-manufactures of quality consumer products forayed into the travel bag segment with its TRAWELL DAY BAGS- wide range of luggage and baggage products. Coming up with latest designs and models, these travel and everyday travel luggage needs are designed to meet the modern trends and requirements of the customers. Made from the imported materials, the bags are available in attractive styles and different colour combinations.

Trawell Day offers:-

Travel Bags

Trolley bags

Business Bags

Lap-Top Bags

Back-Pack Bags

Beauty Case Bags.

Trawell Day bags caters to our every day needs and is most suitable for individuals and families for travelling both by train and bus. Another speciality of these bags are they are fully lined with water proof nylon material, and it is spacious, capable of accommodating the luggage that would require 4 to 5 bags in just 1 Trawell Day bags.

The product range consists of Soft Trolley (H20, Gladiator, and Premium), wheeler Duffels (Maxima), air Duffels (Aurora and Orient), Back packs (Platinum and Fair), and Executive Bags (E-bags and Unique) are rated from Rs.635 /- to Rs.2970 /- available in various models and sizes.

5.7 Dago Bert Shirting and Suiting

Dago Bert Shirtings and suiting are woven from the finest cotton, using the toughest materials that are soft to touch when draped on your body. Featuring the most contemporary designs along with the latest weaving techniques, Dago Bert shirting and suiting are available in variety of colours and shades.

5.8 Inner Agna and Adonis Wear

Kitex has made its foray into the untapped lingerie segment with brand names Adonis and Agna. ADONIS innerwear for men; and AGNA innerwear for ladies. With Anna Groups promise of quality, both ADONIS and AGNA comes competitively priced and ensure complete value for money.

Adonis a range of refined vests and briefs; and AGNA a range of Bras and Panties ensure seamless fit and finish. Both brands use specially processed fabric which feels smooth and healthy even on the soft skin of newborns. It provides ample space for stretching, bending and rigorous exercise without tearing.

Anna Aluminium

ChaksonVesselsChakson non Stick CookWareAnna Outer Lid PCEllys Saras

Ready to EatReady to CookCurry Powder COMPETITORS

From the marketing department we can get an idea about their products, marketing strategies, strengths and weakness, competitors, competitors strategy, attraction weakness etc.

Major competitors are;

MCR

ANGEL

JANSON

VBC

KKB

RAM RAJ

The competitors strategies are advertising, promotion through film stars etc. This is very high in case of MCR. The variety of KARAS are introduced in case of MCR dhotis and they also sell different colour lungies in market for attracting customers.

In case of KITEX LIMITED, the margin is comparatively low. The major problems of competitors products are poor color dyeing, poor quality etc. Compare to KITEX products other products are cheaper. Most of the customers choose KITEX products.

Kitex lungies have good brand image. The competitors of lungies are;

Angel

Bombay Dyeing

Jansons

KKB

Chapter 6ORGANISATIONAL STRUCTURE

ORGANISATIONAL STRUCTURE

KITEX Limited follows line military organisation structure. Span of management in organisation is narrow span which has various advantages such as reinforce authority relationship by the emphasis of status, preventing cross communication and providing opportunities for promotion because of many positions.

The present organisation structure has been effective in conducting the operation at its optimum level. It has encouraged team work and has helped to maintain good internal relationships. Unity of command is maintained throughout the organisation. Managing director is at the top most position and the general manager is next to him. The various functional managers come under the general manager. The chairman and the managing director who are the representatives of the share holders take the important decisions of the group concerns. They perform strategic planning and policy making functions of KITEX limited.

The model of the organisation design is a mechanistic model. An efficient management system plays a dominant role in the success of all business units. It is this section that deals with the level of output, its production pattern, prizing techniques, marketing style and even the mode of conduct to its executives. General Manager is responsible for the smooth, efficient and productive functioning of the unit from the production to the marketing

The middle level management comprises of production manager, marketing manger, financial manager, personnel manager, purchase manager ,store manager and quality controller.

Qualification of Employees

a) Top Level: Professionally qualified having sufficient industry experience.

b) Middle Level: Graduation and above with experience in the relevant areas (both technical and managerial)

c) Junior Level / First line management: Diplomas / industrial training certification in the textile industry and experience.

6.1GROWTH PROFILE

Kitex Limited, a prominent prodigy in the field of textile industry began its spectacular display in 1975 at Kizhakkambalam, Aluva, and Ernakulam. This prestigious company, one of the vibrant divisions of Anna-kitex group of companies is a celebrity among industrial giants in our country. This weaving unit is engaged in the production of fabrics made of cotton and other blends, greige cloth, bed sheets, dhotis, mull and lungies. They are marketed through a network of over 2000 authorized dealers. Through the years, the company has carved a niche for itself in this highly competent industry with its tradition of internationally accepted products.

The company was established to set up an efficient industrial estate to provide technical, industrial, financial and marketing facilities to power loom owners and to create job opportunities to educate unemployed. About 400 power looms were established in the premises under the banner of Kizhakkambalam Textiles Limited, which has been later renamed as Kitex Limited.

Kitex markets its products through a network of over 2000 authorized dealers. KITEX fabrics are now exported to many parts of the world. KITEX is going in for a major expansion plan to augment the production capacity.

6.2 FUTURE PLAN

Weaving capacity is doubled from 500000 to 1000000 by adding 120 shuttle looms. Now the company is planning to import raw materials Dornier and Pecanor. Diversification of new products is being added.

6.3 ORGANIZATIONS CONTRIBUTION TO SOCIETY

MANAGEMENTT RESPONSIBILTY

To design the quality policy and objectives, responsibility, authority and organizational interface of the management. Personnel methodology for preparation of business planning analysis of company level data and measurement of which customer satisfaction index.

To define Environmental policy and rules, responsibilities and authorities of personnel with respect to environmental management, system.

ENVIRONMENTAL POLICY

Effective utilization of resources to reduce waste.

Abide by environmental laws and regulations.

Continual improvements of environmental performance.

Establish awareness among employees and business associates.

GENERAL

As a part of the organizations contribution towards the society, the Kitex Ltd, provides:

1. An ambulance service is provided to the common people. Those who need the help of this facility any one can call at any time.

2. A medi claim facility is provided to all BPL families of kizhakkambalam Panchayat up to 50000.

3. The company has strict pollution controlling measures.

4. Pension is provided to all BPL families.

5. Scoobee day bags are provided to ankanavadi.

Chapter 7

FUNCTIONAL DEPARTMENTS

7.1 PURCHASE DEPARTMENT The purchase department plays a very important role in the company and it has its effect on every vital factor concerning the manufacture, quality, cost efficiency, and prompt delivery of goods to customers. Its function is to procure materials, supplies, services, machines, and tools for favourable terms in accordance with the desired standard of quality. Purchasing is the important function of materials management. The company is having a centralized purchase department headed by the General Manager (Materials). Under him comes the Purchase Manager. He is assisted by 2-purchase officers and office assistants. The purchase manager coordinates the entire purchase activities. In case of local purchase or purchase of minor items which are frequently required, it is the responsibility of the purchase officers to ensure the timely procurement of materials as per the purchase requisitions issued by the stores when the items have reached the re-ordering level. The purchase manager reports the details to General Manager and Managing Director.Structure of Purchase Department

7.1.a) Duties and Responsibilities of Purchase Manager1. To identify and choose the best suppliers for supplying materials

2. To ensure the quality of materials purchased and procure it at the most economical price

3. To make continuous availability so that there may be uninterrupted flow of material for production.

4. To make purchases of the right quantity at the right time to keep investment in materials minimum.

5. To purchase proper quantity and good quality material inorder to minimise wastage and loss in production.

6. To develop alternative source of supply so that material can be purchased from those alternative source if a particular supplier fails to supply the material.

7. To adopt the most advance method of purchase to ensure smooth delivery of material from supplier and to avoid the chances of any dispute and financial loss.

8. To serve as an information centre of the materials purchased ,its source of supply, specifications and mode of supply.

7.1.b) PoliciesInternal control measures adopted by the purchase department In fixing contracts for purchase, price variation clauses are also included in the terms and conditions of purchase. All purchase order forms are pre-numbered and strict control is exercised over unused forms. All materials, supplies are measured in the receiving section of purchase department.

7.1.c)Purchasing procedure

1. Identifying the materials

2. Exploring the sources of suppliers.

3. Issuing purchase order.

4. Receiving and inspecting materials.

5. Checking and passing of Bills for payment.

Flow chart of Purchase procedure

7.1.d)Purchase ProcessWhen the store dept is in need of goods, the dept head will send a purchase requisition to purchase dept showing the quantity, quality, and the time by which the goods are required. After ascertaining the requirements, the purchase department should invite tenders from approved vendors. After accepting the best suitable tender, the purchase department places orders. The details of order placed should be recorded in the purchase order book.

The purchase order should be prepared in quadruplicate. One copy should send to the supplier. The second copy should send to the department requisitioning the goods and the third copy to the accounts department and the purchase department should retain the last copy.

On receipt of goods, the gate keeper, after examining them properly, should enter the particulars of goods received in the goods inward book. Then, he should send the goods to the store department, where they are kept. After receiving the goods, the stores should prepare a goods received note and send a copy to the purchase department . After receiving the note, the purchase department should compare it with the purchase order to ensure that they are of the same quantity and quality ordered.

Then another clerk should check the details of the invoice and calculations made there in. After proper verification, the invoice should be handed over to the accounts department for payment. The accounts department should compare the invoice with the purchase order and verify the calculations. If the goods received are according to the order and calculations found correct, the accounts department should record the same in the purchase book. Then the invoice should be passed for payment.

In the case of goods returned to the supplier, a proper record should be maintained in the Purchase Return Book. A credit note should be obtained for the amount and for other allowances claimed from the suppliers.

7.1. e)Factors considering while selecting supplier

1. Manufacturing capacity.

2. Reliability of suppliers.

3. Financial condition of the suppliers.

4. The management of the supply firms.

5. Price quoted.

6. Terms of payment

7. Terms of delivery.

8. Whether the products supplied satisfies all the Specifications

7.1.f )Materials purchased

1. 100% cotton yarn of different specifications.

2. Sizing chemicals Alpanol, tapioca starch, adhesives, Fabproof (Fungus Resistant) etc.

3. Loom Spares.

4. Electrical equipment and accessories.

5. Packing materials and office stationary.

7.2 Production department Among the all functional areas of management, production is considered as a crucial in an industrial organization like kitex Limited. Production is the process by which raw materials and other inputs are converted in to outputs. In Kitex mainly the production of grey clothes takes place under the production department.The process of textile industry is divided into two:-

1. Spinning

2. Weaving

In spinning, yarns of various counts are manufactured. Count is the measure of fines of the yarn. The process of manufacturing the pure cotton grey cloth from this cotton yarn is called weaving.

In Kitex Limited, the weaving of cotton grey cloth is the major process. The basic output of this unit is 100% cotton grey cloth, which is the raw material of most of the cotton textile industries. About 85% 0f the total sales of these units are from the sales of lungies, mull, bed sheets, and dhoties prepared from this cotton grey cloth.

The product manufactured by the company is industrial goods and consumer durable goods. 85% of the goods (Grey cloths) are sold to other companies or Production units in the textile industry, where the same are converted into useful consumer durable textile or garments. 15% of the grey clothes manufactured by the company are converted into lungies, dhotis, mulls, bed sheets. The conversion is done by various units at coimbatore. The conversion process includes bleaching, dying, resizing, printing etc After the work is done the goods are recovered back, quality checked, packed and marketed by the company.

Structure of production department

7.2. a) Functions of Production ManagerThe main function of production manager is as follows:-

Overall supervision and control of all sections in the production area of Kitex and to produce quality fabrics in accordance with the requirements to maintain high productivity standards.

Prescribing required quality control measures and implementing the same.

Planning, scheduling, and coordinating work of different sections of the department.

Raw materials indenting/scheduling and coordinating with purchase department.

Implementing preventive maintenance system for all equipments and machineries installed.

To control waste to the minimum, both in the finished goods as well as raw material consumption.

7.2. b) Functions of Production Department The following are the main functions of production department.

Design of product

Design of production system

Production planning and control

Layout of plant

Selection of location

Selection of plant and equipment

Maintaining the Law book of the Department

Research and development

7.2.c) Raw Materials Used 100% of cotton yarn of different specification forms the major raw material used in production. The main supplier of yarn is GTN Pallakkad. The other raw materials are sizing chemicals, Starch, adhesives.

The company never faced any raw material shortage. This is due to efficient supply chain management, scientific estimation of raw materials requirements and timely procurement of raw materials. The purchase department plays an active role in the effective and timely procurement of raw materials.

Safety is of greater importance in any industrial undertaking. The company has established safety measures as provided in the Factories Act, 1948. The company regularly conducts safety awareness programs and training classes for its plant workers or supervisors. The production units have several safety mechanisms like fire fighting equipments, alarming systems, first aid facilities etc.. The company has its on ambulance service to face any emergency. As a result of the strict safety measures adopted, the company has never come across any major accidents or break downs. The production unit is properly ventilated and has sufficient exhaust fans and good working conditions.

7.2.d) Pollution control

The company does not have any pollutant products or bye-products. The only pollutant may be the cotton particulars that may get spread in the loom shed. To prevent this, the factory is having sufficient humidifier to help the cotton particles settle on the ground. In addition to this the factory and premises are cleaned in regular basis .The company also has an effluent treatment plant to control pollution.

Production process- flow chart

KITEX LIMITED7.2. e) Production Process

There is a lot of process to be done to the cotton yarn before it undergoes the process, Weaving, and the whole department is known as weaving preparatory. It is the heart of weaving mill. In preparatory department the yarn undergoes the process, namely warping, sizing, pirn winding, and beam drawing and knotting.1. Warping

The yarn from the spinning mill comes in the form of cones, copes, etc. Inorder to weave this yarn has to be winded into warping beams. Warping is the process of winding of threads on a warping beam from the cones according to the number of ends specified for each fabric. There is a limit for the number of ends to be taken in a warping beam, it is known as the Creel Capacity of the warping machine .In Kitex Limited the warping machine is the make of Amrita Lakshmi Machine works, Mumbai. Its creel capacity is 560. 2. Sizing (to weave well and size well)

It is the process of strengthening the yarn wound on beam (warp). In this process, the warp is passed through sizing chemical. This sizing chemical is known as Alpanol which consists of corn powder and tapioca powder. A fungus resistant called Fabproof is also added inorder to keep the yarn in good condition. This process makes the yarn more rigid and this prevents from breaking while weaving. The purpose of sizing is to ensure processing of warp in looms with minimum breakings. In sizing, the weavers beam are wound of creel in zigzag manner and all the beams are compared together and passed through the boiled starch materials filled in the saw box. In the saw box the impregnation occurs due to squeezing of yarn by squeezing roller, and then the starch- impregnated yarn will pass over the cylinder dryers for drying the yarn. Drying of sized yarn is of great importance for the quality of the warp, the output capacity and technical and economical characteristics of the machine. Then the sized layers of the yarn undergo the process known as Leasing. In this process the sized layers of yarn are splitted into single ones and then wound on the beam according to the width of the beam. This is to prevent sticking of yarns with one another.

3. Beam Drawing

The warp ends from sized beam is first drawn through drop wires, heads, eyelets, and then into different reeds according to the design or weave (plain, twill, drill, satin, weave etc).

4. Beam gating/knotting

These drawn beams are knotted in the loom for weaving. Trained and experienced beam drawers are appointed to do this work manually.

5. Pirn Winding Pirn Winding is the process of winding yarn on pirns for preparation of weft yarn for weaving.

There are two types of winding machines in Kitex Limited:

I. Automatic Pirn Winding Machine

II. Circular winding Machine.

6. Weaving

It is the process in which two distinct sets of yarns or threads, called the warp and the weft are interlaced with each other to form a fabric or cloth. The warp threads run lengthways of the piece of cloth, and the weft runs across from side to side.

Checking

The woven fabric cut from the loom is again un-winded and the quality is checked under the supervision of trained checkers . The checking inspection is as per American-4-point system.

7. Grading and Sorting

In sorting or grading, the grey fabrics are checked confirming that all the technical conditions stipulated for fabrics for each style are strictly satisfied. At the same time piece length is measured and the production of fabrics per shifts are registered. Cleaning the fabrics from thread ends, knots, and tray, putting a special marking with a pen on the ends of the fabric piece indicating the fabric style, measure and grade.

8. Folding

After classification the fabrics is folded by a machine (1 meter pinning) and the length of the fabric is measured and marked.

9. Bailing (packing)

The graded or sorted fabric packed in bailed condition under the supervision of bailing supervisor on the basis of quality. The standard packing in one bale contains 1000 meters. For bailing, the company has a bailing press, which is in good working condition. Production is undertaken on the basis of the orders received for grey cloth since the company is having regular orders; there is continuous production throughout the year. About 85% of the grey cloth produced in selling as such to parties. The remaining portion of the grey cloth produced is converting into lungies, dhotis, bed sheets, and mull of various varieties. All the printing activities are outsourced. After printing, the cloth is returned to the company which under goes thorough checking .In the next stage the cloth is cut into specified sizes and then packed under the supervision of trained supervisors and workers.7.3 QUALITY DEPARTMENT Company practice strict quality control through customer satisfaction. It is very important to understand the customer requirements, to provide value (q s p- quality, service, price)to the customers ,manage the customers satisfaction for retention and creation of new customers, laboratory testing, which in turn makes a confidence in dealers and customers. It involves those activities which assure that quality creation is performed in such a manner that the result in product will perform its intended function. The quality control system ensures economical production of products of uniform quality which is acceptable to the customer.

Structure of Quality Control Department

7.3. a) Quality Policy

The company is committed to manufacture and deliver quality grey fabric ,processed fabric and readymade garments as per the customer specification and requirements, efficiently in a professional and environment friendly manner on time and at the right cost with utmost customer satisfaction, while driving to become a world class organization through continual improvement.

The quality policy of Company is as follows: - We are committed to manufacture and deliver quality Grade Fabric.

7.3. b) Benefits of Quality Control1. Minimum scrap or work due to reduced number of defectives

2. Reduced cost of labour and materials as a result of reduced effectiveness

3. Uniform quality and reliability of product help in increased sales turn over

4. Less inspection and reduced inspection cost

5. Increase quality consciousness among employees

6. Higher operation efficiency

7. Better utilization of resources8. Customer satisfaction7.3. c) Programs

7.3. c.I) Total Quality Management (TQM) Total quality a management journey started at ANNA group on 6th June 2005. It is a long journey towards success. The following ensures the TQM,

VISION & MISSION

ISO- 9000

STRUCTURED COMMUNICATION

CUSTOMER SATISFACTION

TRAINING

EMPLOYEE WELFARE

SOCIETY WELFARE

5 S ( GOOD HOUSE KEEPING)

POLICY & STRATEGY

POLICY DEPARTMENT

TEI ( TOTAL EMPLOYEE INVOLVEMENT)

SUGGESTIONS, SMALL GROUP ACTIVITY KAIZEN

The company got this certification by successfully implementing following 8- key elements:-

1. Ethics

2. Integrity

3. Trust

4 .Training

5. Team work

6. Leadership

7. Recognition

8. Communication

5S of house keeping

SEIRI Sorting SEITON Systemizing SEISO -- Shining SEIKETSU - Standardizing SHITSUKE Self discipline1. Sorting

Segregate required, usable, rework able and absolute items

Dispose off unwanted items

2. Systemizing

Use labels, colours, codes for easy identification

Use index for files, records, drawings etcto facilitate

3. Shining

Inspect and clean the supply lines, godowns, scrap yards and gardens

Identify the root cause of loud noise vibration heat build up in equipment and take medical action

4. Standardizing

Develop standards

Establish checking procedures

Care visual controls

5. Self disciplines

Develop action plan for maintain the set standards

Conduct self audit

There is a 5s committee in the company which does internal inspections.7.3. d) Quality Objective

1. Increase the production by 60% from the level by adding essential machinery, manpower and solving space constraints.

2. Reduce the present product rejecting by 50%.

3. Reduce the specific fuel and electricity consumption.

4. Reduce the customer complaints by 50% by improving the quality of the products or services.

7.4 FINANCE DEPARTMENT Finance is the life blood of any business. Finance department consists of all the managerial activities which include raising of funds and proper allocation of it. Finance department takes all decisions regarding investments, finance and dividend. Finance department also allocates funds for the activities of all other departments. Assistant General Manager is the head of the finance department in Kitex. He decides when and where to acquire funds to meet the firms investment needs. He should determine the proposition of equity debt. The finance department should strive for obtaining the optimum capital structure for the organization. Under the AGM Finance there are two Managers for Finance and Accounts. The Finance Manager is assisted by an Assistant Manager and two executives. Two Assistant Managers and Executives assist the Accounts Manager to deal with the transactions related to Central Excise, Tax and AuditStructure of finance and accounts department

Books Maintained by the Finance Department Cash Book

Bank Book

Sales Pay Book

Purchase Pay Book

Journal Register

7.4 a) Duties of Finance Manager

Ensuring proper maintenance of books of accounts

Preparation of budget estimates

Preparation of administrated reports Preparation of monthly and annual accounts

Verification of all proposal related to finance

Strict adherence to bill of material during purchase

7.4 b) Major Functions of the Finance Department Preparation of various statement regarding stock, receivables etc. which are to be submitted to various authorities.

Planning and controlling of the expenses/funds for production.

Approving and making payments to different parties creditors/suppliers.

Receiving payments from customers/dealers in specified time.

Raising short-term loans/credit from banks and other financial institutions.

Preparation of sales budget/revenue budgets and expenditure budget on a quarterly basis.

Preparation and maintenance of cost records.

Preparation of fund flow and cash flow statements for every month.

Timely preparation and filing of financial records.

Preparing and filing of quarterly and final income tax return

Preparation and implementation of cost reduction and cost control Takes decisions regarding what type of Capital structure the company needs to have.

To raise sufficient long term funds to finance fixed assets The finance manager needs to ensure the supply of adequate, timely and cheap fund to the various parts of the organization

That there is no excessive cash idling around

To constantly review the financial performance of the various units of organization generally in terms of ROI (return on investment). Such review assists management in seeing own the funds have been utilized in the various divisions and what can be done to improve it.

7.4.c) Programs

The programs of finance department includes preparation of reports, auditing of accounts etc..

7.4.c.i) ReportsThe following reports are prepared by the finance department;

Annual reports containing past performance and current financial figures

Profit and loss account

Balance sheet

Fund flow statement

Cash flow statement

Cost sheet

Cost variance report

Bank reconciliation statement

Comparative statements

Budget reports etc

7.4. c.ii) AuditThe company focuses on conducting basically two types of audits. They are as follows.

Internal Audit

Statutory Audit

7.5 PERSONNEL AND ADMINISTRATION DEPARTMENT

Now days, HR is considered as one of the important asset of an organization. Behind every successful company there is need of experienced people making recruitment and retention. Companies must find new ways to engage the knowledge, experience and talents of the employees to find the hidden values in organization and leverage that value to achieve strategic goals.

Kitex Ltd has a good HR Department and it maintains good relations with the employees. This has helped the company to achieve tremendous growth. All the employee related activities are managed by this department. The company has over 350 workers which are the permanent employees. These employees are divided into different groups according to their position in different departments. There dont have any trade union problems. The workers and management sit together and negotiate their demands and rights, workers participation are also considered in decision making process. A good working culture prevails in the company.

Working Time: 9am to 5pm

: 9am to 4pm (Saturdays)

Structure of Personnel and Administration department

7.5.a) Functions of p & a departmentThe main functions of personnel manager and Administration manager are as follows:1. Advisory Role: Industrial psychology and Sociology.

2. Operative and Service role.

3. Conciliators Role.

4. Specialist advisory Role.

a. Formulation of HRD function and suggesting the HRD needs of the organization.

b. To find out ways and means of implementation of HRD Function.

c. Monitoring the HRD activities of the organization.

d. Total commitment towards implementation of HRD.

7.5.b) Role of personnel manager1. To create necessary infrastructure for HR development activities.

2. To laise with HR manager in identifying areas for HR development.

3. To arrange proper placement to trained employees.

4. To activate association and employees to take part in HR development activities which are beneficial to both employee and management.

7.5.c ) Programs

Kitex limited has undertaken the following programs under P & A department.

7.5.c.i) HRD services HRD activity is undertakes in an integrated manner. It is one of the several organizational process evolved to cope with the changing environment and to maintain the organization at its best. The focus is on the overall development of a personality rather control. Their responsibility starts right from recruiting the right person at right place at the right time till the retirement. It also includes training and development, provision for good working conditions up to retirement plans.

HRD department of the company is based on three aspects;

1. Competency building This is usually done by improving the knowledge of employees and creating the right attitude in the mind of them. For this they will be given training and development programmes.

2. Culture building

It is having a great importance, as right culture will create employee satisfaction. Every employee of KITEX LIMITED loves to work in the organization because of the good work culture prevailing in the organization. Culture mainly indicates the good attitude towards employees and vice versa.

3. Motivation building

Enhancing the motivation of employees and thus enabling the organization to achieve its goals is another inevitable function of this department. The employees are being motivated by providing various monetary benefits and also morale boost like promotion etc. Industrial relations are yet another major area coming under HRD department. And also good relationships are maintained within the organization. 7.5.c.ii) Human Resource Planning Human resource planning is understood as the process of forecasting an organization future demand for, and supply, of the right type of people in the right number. In Kitex Ltd, the concerned department is always updating the list of people (after all preliminary formalities).

a) Recruitment

Recruitment is a process of searching for and obtaining applicants for jobs from among whom the right candidate can be selected. Recruitment process is done after the job analysis and job design which specifies the taste and duties of job and qualification expected from the respective job holders.

In Kitex Ltd, the personnel and administration department have a clear cut recruitment planning. For this they give advertisement in news paper and other medias. After collecting all application, department sorts these application and call up the right candidate for the interview. This process comprises of 5 interrelated stages. They are:

Planning

Strategy Development

Searching

Screening

Evaluation and control

In Kitex Ltd, internal recruitment also takes place. This includes present employees, employee referrals, former employees. For the recruitment of office staff and managerial personnel, external sources like advertisement in news papers, employees weekly etc are used. Other sources are advertisement in company website, employee references and resumes of the candidates which the company passes. While selecting the weaver trainees and helpers, qualification along with sufficient experience in the industry is also required. They can directly appear for interview. Some times selection order is on the basis of the recommendation from the known person. For skilled jobs like fitter, electrician, instrument technician, jobber, etc information is passed through advertisement. For this, required qualification along with experience in respective field is a good advantage.

Interview and Selection

Selection is the process of picking individuals who have relevant qualifications to fill jobs in the organization. The basic purpose is to choose the individuals who can most successfully perform the job from the pool of qualified candidates. The selection takes place through interview with reference of application and sometime walk-in-interview is also conducted. The company does not have any specialized interview board. They hire the services of the expert when it is needed . Skill test is conducted for the certian posts.

Selection Procedure Before appointing a person to any levels of management job analysis of the post is done. Vacancies are informed to the prospective employee through print media. Usually, candidates with sufficient or prescribed qualification and experience in the relevant field are selected for employment. For some managerial positions, the company conducts interviews, written tests and other tests and workers selection is done by assessing his or her experience and skills.

b) Training and Development With basic commitment in developing human resources, KITEX offers complete training programmes. The company believes that quality is by conscious design and not by accident. Committed and trained personnel can only achieve this. Training is offered in all fields including scientific field management, administration and personnel management. The training and development programmes are given by considering individual as well as aspects of the organization. They offers a number of training programmes to suit the need of the fresh as well as existing personnel. The company undertakes introduction of various HRD programmes and also concept of quality circles etc. Mainly three months training programme is given, it changes with the job positions. Training is mending to influence all the characteristics of a person. This is through companys own community college. The company also conduct on-the-job training methods.

c) Performance Appraisal

Yearly evaluation of performance is done for the employees. The evaluation criteria for the managerial and supervisory levels are:

1. Conceptual skills ability

2. Decision making skills ability

3. HR skills ability

4. Organizational skills ability

5. personal characteristics

6. Job ability

7. Integrity and honesty.

Performance Appraisal is done by the immediate supervisor and the top level management.d) Employee Remuneration

Remuneration of the employee occupies an important place. Remuneration is the compensation that the employee receives in return for his or her contribution to the organization. In Kitex Ltd, the organization provides all remuneration insisted by the govt of India and Government of Kerala. This includes:

Wages and salary

Incentives

Fringe benefits

Perquisites

Non- monitory benefits.

Wages and Salary

The company follows time rate system and piece rate system. The employees other than the office staff and plant general workers come under this system in which payment is made according to quantity produced on a monthly basis. Salary is paid along with pay slip, which contains details of the pay. At the time when an employee receives salary he should sign on the copy of the pay slip and it is filed in the department.

The compensation package consists of:

Basic pay + DA + HRA + Conveyance + Childrens educational allowance.

Incentives

Besides the above package the employee will get other incentives like production incentives, monthly incentives etc.

e)Promotion

Promotional activities contribute to the employees satisfaction and motivation. If mishandled it leads to discontentment, frustration among employees and culminates in a high rate of labour turn over. In Kitex Ltd within the limitation the personnel department, it lays down a sound promotional policy and ensures its implementation.

f)Transfer

Transfer involves a change in the job (accompanied by the change in the place of the job) of an employee without change in responsibilities or remuneration.

g)Separation

Layoff, resignation and dismissals separate employee from their employer. Separations are painful to both the parties and should therefore administer carefully. They are:

Lay Off:- Temporary separation

Resignation:- Termination of employment at the instance of the employer

Dismissal or Discharge:- Termination due to excessive absenteeism, serious misconduct, false qualification statement, theft of company property

VRS:- A novel scheme or golden hand shake plan

7.5.c.iii) Employee Welfare Measures In India labour welfare measures can be divided in to statutory welfare measures and non-statutory or voluntary welfare measures.a. Statutory Welfare Measures

I. Accident Benefit

If the employee, who is covered under the Employee State Insurance Scheme (ESI), during the works, suffered with an accident he will be paid as per ESI scheme. If the employee is not covered under ESI, the company will meet all expenses and grant him special leave in case of any accident. A group accident policy is also taken by the company by which all the employees will be benefited.

II. Annual Bonds

The company pays annual bonds to its employees based on the companys performance in the previous year. 8.33% to20% of the profit is given as bonus every year.

III. Canteen

The company has separate canteen for male and female employees. For drinking water, coolers are also installed in the company wherever necessary.

IV. Gratuity

Kitex Ltd maintains a gratuity scheme for its employees who have completed 5 years of experience including training period.

V. Provident Fund

The company contributes 12.5% in the employee P.F scheme.

b. Voluntary Welfare Measures

i. cAttendance Allowanceii. Uniform Allowanceiii. Childrens education allowanceiv. Free tea and coffee for office staffv. Funeral expenses on the death of family members of the employeesvi. Saving schemes for employeesvii. Stands as guarantee for the employees to buy vehicles and house on hire purchaseviii. Leave- Earned leave for 15days is granted to employees. Maternity leave of 12weeks is granted to the female employeesix. Free accommodation is granted to female employeesx. Night shift allowances and OT allowancexi. One day tour program is conducted once in every 2 yearsxii. Health and Safety measures.Security Department For the security and discipline of Kitex Ltd, the organization provides a security department under the P & A Department. This includes a security officer and staff. The main function of the security officer is to check the baggage and carriers coming into the organization and the products delivered from the packing section. The security department marks and register the quantity of the product, place, time etc.

Trade Unionism

There are companies which are non- unionized. Kitex Ltd is such a company. In Kerala we can see a lot of trade unions and problems created by them. In this case this is great privilege for the company as a union free company. This is maintained in Kitex through good employee relation.

Hostel

In Kitex Ltd, organization provides separate hostel facilities for the ladies and gents. It includes canteen, accommodation, and entertainment facility. For the purpose of administration of ladies hostel, organization has appointed a hostel warden and two assistant warden and hostel staff. In every weekend the P&A manager or personnel officer visits and check the facilities and function of the hostel. Also the department conducts annual day celebration for the employees.

Statutory Rules for Employees

EPF, ESI, Medi-claim insurance and maternity benefit also provided for employees

Leave Rules

Earned leave is calculated at one leave per 20 days and it will be less than 15 days per year. In addition to casual leave, 16 annual holidays

Shifts

The company is undertaking production on job order basis. The production department works in 3 shifts

Ambulance and Bus facilities

Company has its own ambulance for emergency use for both workers and public medical facility in the organization is also good

Drinking water facilities

Water coolers are installed in the company where ever necessary for the employees. This company is very cautious about the health of their employees who faithfully work for their company. Employees strictly agreed that drinking water provided by the organization is very good

7.6 MARKETING DEPARTMENT Marketing is the process by which companies determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Marketing is used to identify the customer, to keep the customer, and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that Marketing Management is one of the major components of business management.

The marketing department of kitex is very efficient. It scans the environment, analyses the marketing opportunities, designs marketing strategy, implements and controls all the marketing functions. Kitex enjoys large customer base especially in South Indian markets in which it has high demand. It has more than 2500 dealers spread all over Kerala, TamilNadu and Karnataka. The head of the marketing department is the General Manager (marketing).Under him there are managers for Grey Fabrics ,Processed Fabrics ,Advertisement and Sales promotion. These managers are assisted by Marketing Executives and Sales Representatives.

Structure of Marketing Department

7.6.a)Coordination of Marketing Activities The marketing executive in kitex follows certain procedures.

The Assistant Manager and Marketing manager are in constant touch with the sales executive who are in the field .There are weekly meetings of sales executives where they have to report the sales of the week on daily basis. Meeting of all sales personnel in the marketing department is presided by the general manager. In this meeting all the activities and achievements are discussed. New plans are formulated and issues regarding sales are also considered.7.6.b)Marketing Policy Kitex has a dealer network of more than 2500 dealers spread all over Kerala, Karnataka and TamilNadu. There have direct outlets in Kerala and Tamil Nadu. Dealership are allotted only after assessing credit worthiness, efficiency etc. The Companys sales representatives deliver the goods to the dealers at their places as per the orders placed by them. The company motivates the Sales Executives by providing them classes of Expert Trainers in sales. The dealers get 10% interest on their trade deposits annually. The company also do various activities for motivating the dealers. If a dealer achieves The targets placed by the company he gets various gifts such as free domestic tours, foreign tours, prize coupons etc: The company also conducts dealer meets where all the dealers along with their families get together and celebrate. Salesmen are also motivated by the company by giving prize coupons which will be deposited in the boxes of the orders.7.6 c) Role of marketing manager

Monitoring of orders taken and to ensure the prompt delivery of goods. Occasional field visit to follow up sales executive. Direct enquiries to be dealt with. Attending marketing meeting chaired by the General manager and implement the decision taken. Maintenance of customer relationship. Market survey report analysis. Supply of products based on the order taken and handling all collection of cash, Cheque, DD, money, etc, from dealers, outstanding collection etc.7.6.d) Marketing Strategy

Marketing department of kitex is very vigilant of the external and internal environment and well aware of the market potential, major competitors, strength and weakness of the company etc. As a result of stiff competition, the top management has appointed a General Manager (marketing) who looks over all the activities very efficiently.

The company uses various promotional tools such as advertisements in print media, television. Earlier the company used to advertise in FM radio .But now after doing research the company officials have found that the effect of these radio advertisements is not up to the mark. The company has got various Ad agencies like Chavara Agencies, Xodus C Factory etc: In all promotional activities emphasis is on the quality of the products. The company also gives one year guarantee for its products.7.6 e) Marketing Mix

It consists of everything a firm can do to influence demand for its product. Kitex also follows the ideas of marketing mix, they are:

Place Mix Location of plant is one of the early decisions an entrepreneur has to make for earning maximum profit. Location determines the survival as well as prosperity of business in free market economy. The unit is located in Kizhakkambalam, Aluva. The total extend of land is around 1650000 square feet. It is well connected with the road. The availability of skilled and unskilled labour also a factor in selecting the location.

Product Mix The gray fabrics produced are of finest quality and is mostly used for export purpose. They provide grey fabric lungies, bed sheets, mull in various quantities as per customer specification. The kitex product is reputed for its quality and free from weaving defects up to greater extent. The special feature is that raw materials are passed through strict inspection.

Price Mix The company maintains stable price for a long period of time. Price of product depends on the price of yarn. It maintains constant price and concentrates on equality of product and so it requires less investment in advertisement and sales promotion and also a very well formulated pricing policy is provided.

Promotion Mix To promote its products advertisements are used by Kitex. The basic function of an advertisement is to influence and motivate people to buy products. In kitex various advertisement agencies are called up on and brief idea is given about what to advertise and these agencies prepare a pre- demonstration.

TV : Dooradarsan, Asianet, Surya etc

Video : CEE Videos, SAN communications

Closed Circuit : KSRTC, Railway station

Print Media : All Malayalam Daily, Vanitha, Grihalakshmi

Demonstration : Club and Exhibition

Ad Agency : TVC Factory Ernakulam

Paper Ad : Chavara Agency, X dousShow rooms

The company has show room sales in addition to sales to its authorized dealers and franchisees. There are about 20 show rooms spreaded all over the major towns in kerala.

Customers

The companies customers are average and above average income earners. Agriculturalists constitute a large portion of the customers.

7.6 .f) KITEX Channels of Distribution

Distribution is the act of carrying goods or services from the producer to the consumer.

Distribution of Consumer GoodsProducer Consumer

Producer Retailer Consumer

Producer Whole Saler Retailer Consumer

Distribution of Industrial GoodsProducer Industrial consumers

Producer Industrial Distributors Industrial consumers7.7 STORE DEPARTMENTThe stores manager heads the stores department. He is assisted by 4 persons; 2 in general shift and one each in another 2 shifts. The store department in Kitex stores all the materials and controls the movement of the materials to different departments.

Storage of all items of raw materials including sizing chemicals, yarn of different specifications, adhesive, spare parts, electrical items, lubricants, tools, office stationery, packing materials etc are the responsibility of the stores department. Functioning of stores department is controlled and administered by the stores manager. Materials stored are planned by the stores manager with the help of the purchase or production department. Yarn and packing materials are stored in the production department godown and packing section respectively; due to lack of sufficient space in the store and to facilitate easy handling of both the items. But the stores department controls the issue of both these items.

STRUCTURE OF STORE DEPARTMENT

7.7.a) Functions of Store Manager

Prepares purchase requisition according to the needs of materials.

Ensures the sufficient quantity of stock that there may be uninterrupted flow of production.

Ensures the quantity and quality of materials received in the store.

Ensures the materials ordered to be reached in correct time.

7.7.b) Programs

The following are the programs:

7.7. B.i) Recording of Stock Perpetual stock records are kept for raw materials, spares, work in progress and finished goods. These records are periodically reconciled with accounting records. This is a periodical reporting of storage of excess. If differences are there, they are investigated and necessary adjustments are made in the final accounting records and store ledger accounts maintained in the stores. The store department is fully computerized. A special software package is designed and installed for inventory management in the stores. All the receipts and issues are recorded in the computer. ABC analysis of inventory is done on regular basis of the physical stock and it is checked once in every month by the store department and internal auditors.

7.7. b.ii) Store Keeping

The quantity, quality and other specifications of the item issued are recorded in the store ledger control account prepared and maintained by the stores, issue and usage of cotton yarn and packing materials are recorded in stores ledger control account even though they are not stored in the stores.

The stores department is fully computerized. A special software package is designed and installed for inventory management in the stores. All the issues and receipts are recorded in the computer. ABC analysis of inventory is done on regular basis; physical stock check is done once in every month by the store department and internal auditors. This is in addition to the quarterly stock taking by statutory auditors. The stock verification is done independent of the storekeeper and stores manager.

Special care is given to materials to free them from deteriorating in quality due to rust, fungal attack etc with the help of eco friendly chemicals. All stocks of raw materials and spare parts are stored in assigned areas only. Access to these areas is restricted. A record is maintained for the insurance policies and are duly compiled with. Perpetual stock records are kept for stores, spares, work-in-progress and finished goods. These records are periodically reconciled with accounting records.

7.7. b.iii) Material Control System

Techniques: The following are the main techniques of material control used by the stores department.

Level setting and Economic order quantity.

ABC Analysis and VED analysis.

Perpetual inventory system.

Material turnover ratio.

Material cost reports.

The company does not have any stock in public warehouse or with consigns. Some stocks are lying with job workers, which are given to them for processing.

Benefits of material control:

Continuous availability of all types of materials in the factory.

No excessive investment in stock of materials.

Materials are purchased at reasonable price.

There is minimum wastage while the materials are being stored in the godown.

Information about availability of materials is continuously made available by the stores manager.

As part of material control system there exists an internal check of material so as to avoid misappropriates use of store items.

7.7. b.iv) Inventory Control Analysis

In Kitex the major technique used in controlling the inventories in ABC analysis. Also VED and EOQ technique, Turn over ratio is calculated It is done regularly. All the stocks are kept in assigned areas and the access to these areas are strictly restricted. It is designed in such a manner that production is not interrupted in any way.

PROCESS OF STORES DEPARTMENT

PROCEDURE FOR ISSUE OF RAW MATERIALS

When particular item of raw material/spare parts is required for production, the supervisor of the concerned section of the production department issued a Material Requisition Note to the store department. On the receipt of the note or material indent, the store manager check whether the item demanded is stored in the stores. If the required item is stored in the store, it is issued to concerned department and the acknowledgement for the same is obtained and filed in the stores.

If the particular item is not available with the stores or the same has reached there ordering level, the stores department informs the purchase department and issues purchaseChapter 8SWOT ANALYSIS8.1 SWOT ANALYSIS

The basic objective of SWOT analysis is to provide a frame work to reflect on the firm ability to overcome barriers and to avail of opportunities emerging in the changing environment, the diagnosis of strength and weakness can be fruitfully on if the environment factors and market conditions are considered always with the internal capabilities. SWOT analysis is an important tool to find strength, weakness, opportunities and threats.

STRENGTHS1. One of the oldest manufacturers of textile products in Kerala.-Kitex is one of the oldest textile manufacturers who started operations since 1975this has actually contributed to the credibility by standing to the test of time.2. Effective distribution channel-Kitex has a dealer network of more than 2500 dealers spread all over Kerala, Karnataka and TamilNadu. They have direct outlets in Kerala and Tamil Nadu.3. ISO certification - Kitex received the ISO 9001-2008 certification for their commitment to manufacture and deliver quality products. Kitex Limited is the leading manufacturer with ISO 9001 - 2008 in South India of all varieties of Grey Fabrics, Yarn dyed fabrics, Dobby and Leno dobby fabrics made of Cotton, Polyester cotton, Cotton Nylon, Cotton Flax, Linen, Cotton Linen, Cotton Lycra, Polyester Lycra etc4. Highest market share for lungies- The market share of Kitex lungies in Kerala will come to around 68% as quoted by the company officials.WEAKNESS1. High labour attrition- Due to lack of skilled workers the labour attrition rates are very high. When workers get jobs in a shop or in a DTP centres they leave their jobs because they get the same pay without taking so much effort.

2. High rate of absenteeism- From the official records the rate of absenteeism is very high. This shoots up just after the monthly pay is given.3. Huge variations in the incentives with change in season During seasons there is huge variations in pay. When more orders are to be met the company has to adjust with the existing employees. So the company pays the employees huge amounts in the form of overtime pay.4. No 100% utilization of the installed capacity- Many machines in the plant lay idle.5. Lack of modern weaving machines and quality checking machines. There are no fully automated and sophisticated weaving and quality checking machines.OPPORTUNITY

1. High demand for cotton material. Now due to increase in temperature more and more people prefer to use cotton outfits.2. India with large cotton cultivation has a great scope in textile market -India is the 2nd largest cotton producer followed by China. India produces 23.5 million bales annual production3 Increase opportunities -in export market due to globalization

THREATS

1. Change in the fashion is a factor of preference of customers. Now a days even people in villages have reduced the usage of lungies and the younger generations have switched on to Bermudas and shorts.2. Flexibility of government policy the government makes frequent changes in regulations3. Availability of cheaper products in the market. Today lot of cheap substitutes are available in the market.Chapter 9

FINDINGS & SUGGESTIONS FINDINGS1. Kitex has got an effective distribution channel with an effective dealer network of more than 2500 dealers spread all over Kerala, Karnataka and TamilNadu. They have direct outlets in Kerala and Tamil Nadu.2. Due to lack of skilled workers the labour attrition rates are very high. When workers get better oppurtunities they leave their jobs.

3. The company does not make 100% utilization of the installed capacity. Many machines in the plant lay idle.4. The company does not have modern weaving machines and quality checking machines. There are no fully automated and sophisticated weaving and quality checking machines in the company.5. There are variations in pay due to changes in seasons. During peak seasons inorder to meet the orders the company has to go for overtime production which leads to variations in pay. SUGGESTIONS1. The organisation should try to retain their available skilled workforce through various retention strategies suitable for the firm.2. The organisation should increase the pay for the workers working in the production unit other wise the workers will keep on leaving the organisation for choices which they feel better.

3. The organisation should provide continuous training and up gradation programs for the plant workers so that they can contribute their best to the organisation.

4. The company should purchase fully automated and sophisticated weaving and quality checking machines which will inturn help to increase the quality of their products.

5. The company should also take necessary steps to make 100% utilization of the installed capacity. CONCLUSION

The study was conducted at Kitex Ltd, Kizhakkambalam, and Alwaye. The project work titled organizational study was an attempt to study about the organizational structure and the department functions and to make some recommendations and suggestions for the improvement and development and smooth functioning of the organization. The data regarded to the study was collected from Kitex which helped to understand the process of production of textiles. Each department in Kitex was analysed in detail. Various processes are controlled and monitored under skilled supervision.

The study gives information about the manufacturing products, organizational structure of the company and the departmental functions. The co- operation and interaction extended by the employees and management of Kitex have made it possible for the depth of the organizational study which would be used to the research in the future.

SITES

www.annaaluminium.com

www.google.comwww.textileindustry .com

www.kitexltd.netwww.annagroup.net

Quality process and people

Policy strategy

Customer

World Class Manufacturer

Checker

Bailing

Jobber

Fitter

Maintenance supervisor

Rechecker

Assistant Inspector

Quality inspector (FinishedFabrics)

Production manager

Folding

Quality inspector (Grey Fabrics)

General Manager

Managing Director

Shift in charge

Shift Supervisor

Checking & Grading

Weaving

Beam drawing

Checker

Pirn Winding

Quality control Manager

Quality inspector (Raw Materials)

First Piece Inspector

Leadership, Team work and TEI

General Manager

Managing Director

Sizing

Weaver

Chairman

Warping

Cotton yarn

Chairman

Production Planning (1)

Executive (ESI/ PF)

Executive (salary)

Canteen Supervisor

Hostel Warden

Canteen Supervisor

Asst. Warden

Asst. Supervisor

Asst.

supervisor

Cook

Helper

Cook

Helper

Front Office Executive

Welfare Officer

Time Officer

Stenographer

Security

Driver

Executive ERP

Office Asst.

Office Asst.

Asst.Manager (T&D)

Administration Manager

Personnel Manager

Chairman

Managing Director

Purchase Requisition (2)

Purchase (4)

Inspection Report (11)

Purchase Department (3)

Invoice

Store (10)

Account department (12)

Suppliers (5)

Material (9)

Payment (13)

Inspection (8)

Receiving Section (7)

Material (6)

Executive (Bank)

Executive (Data Entry)

Executive (Data)

Executive (Central Excise)

Executive (Tax)

Executive (Audit)

Executive (Company)

Assistant

Manager

Assistant Manager

Assistant Manager

Manager (Accounts)

Assistant General Manager

Marketing Executives

Sales Executives

Executive Media

Executive

Art

Sales Executives

Marketing Executives

Assistant Manager

Manager (grey fabrics)

Assistant Manager

Manager (Processed Fabrics)

Assistant Manager

General Manager (Marketing)

Chairman

Manager (Advertisement & Sales Promotion)

Managing Director

Chairman

General Manager

(Materials)

Managing Director

Purchase Officer

Purchase Manager

Office Assistant

Manager (Finance)

General Manager

Managing Director

Chairman

CHAIRMAN & M.D

GENERAL MANAGER

STORE MANAGER

OFFICE ASSISTANT

OFFICE ASSISTANT

OFFICE ASSISTANT

OFFICE ASSISTANT

Stock Order

Production Control

Stock Measures

Store Section

Store Account Section

Work Order

Materials

Materials

Receiving Report

Stock Delivery

Store Issuing Section

Stores Receiving Section

CHAIRMAN

ASSISTANTS

PERSONNEL OFFICER

ASSISTANT MANAGER

HR MANAGER

MARKETING OFFICER

CLERICAL STAFF

FINANCE

CLERICAL STAFF

EXECUTIVES

EXECUTIVES

ACCOUNTS

ASSISTANT MANAGER

ASSISTANT MANAGER

CHECKER

SHIFT IN CHARGE

WEAVING MASTER

WORKER

FOREMAN

SUPERVISOR

OFFICE ASSISTANT

ASSISTANT INSPECTOR

MANAGING DIRECTOR

GENERAL MANGER

MARKETING MANAGER

FINANCE MANAGER

STORE MANAGER

PURCHASE MANAGER

QUALITY MANAGER

PRODUCTION MANAGERGER

OFFICE ASSISTANT

PURCHASE OFFICER

QUALITY INSPECTOR

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