An Organization Study

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SPINNER PIPES

PROJECT REPORT
ON AN

ORGANIZATION STUDY AT SPINNER PIPES


TRATION (MBA) (BANGALORE UNIVERSITY)

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER OF BUSINESS ADMINIS-

(2009-2010) SUBMITTED BY SANGEETH M S REG NO: 09MJCMA083 UNDER THE GUIDANCE OF Mr. GANAPATHY Faculty

T.JOHN INSTITUTE OF MANAGEMENT AND SCIENCE

BANGALORE-560083 (2010)

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DECLARATION

I declare that the project report entitled An Organization study At SPINNER PIPES, Thrissur, Kerala submitted by me for the award of the degree of Master of Business Administration of the Bangalore university is my own work. The report has not been submitted for the award of any other degree of this University or any other University.

Place: Bangalore Date:

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ACKNOWLEDGEMENT

I would like to acknowledge the people who helped me to develop this project and who made it possible to do so. I deeply indebted to my project guide Mr. GANAPATHY, Faculty, MBA (BU Department), TIMS Bangalore and our Director Mr. mental in making the project reality. I further express my deep sense of gratitude to Mrs. BHAMA SANKAR, Manager of Spinner pipes, Thrissur for her constant encouragement and valuable help. I also express my deep sense of gratitude to the management of spinner pipes, Thrissur for the permission and to undertake this study in their organization and also to all the staff members of spinner pipes, Thrissur for the encouragement that I received throughout my project. I express my sincere thanks for all friends, parents & well wishers for their help & encouragement. Last but not the least; I thank the Almighty for His blessings without which this project would have never been completed whose constant guidance, encouragement and resourceful help with personal touch were immensely instru-

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SPINNER PIPES TABLE OF CONTENTS

CHAPTER 1 2 3 4 5 6

TITLE INTRODUCTION INDUSTRY PROFILE COMPANY PROFILE ORGANISATION STRUCTURE PRODUCT PROFILE FUNCTIONAL DEPARTMENT 6.1 Human resource department 6.2 Statistical quality control department 6.3 Production department 6.4 Purchase department 6.5 Finance department 6.6 Marketing department 6.7 Sales department

PAGE NO: 9 14 17 22 29 31

7 8 9 10 11

SWOT ANALYSIS FINDINGS SUGGESTION CONCLUSION BIBILIOGRAPHY

51

53 56

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DECLARATION

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SPINNER PIPES CERTIFICATE

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SPINNER PIPES CERTIFICATE

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SPINNER PIPES ACKNOWLEDEGEMENT

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CHAPTER 1 INTRODUCTION

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SPINNER PIPES INTRODUCTION Spinner pipes is one of the leading manufacturers of Pipe industries in the southern states in India. Spinner Pipe located at Athani Industrial Estate in Thrissur District, Kerala State. The company is the largest manufacturers of High Density polyethylene Pipes and Low Density polyethylene Pipes in Kerala. Spinner pipes won good position in the minds of the people. The company established in 1996 by Sri. P.J. George Kutty. The company has made amazing contribution towards social development and rural upliftment and has strived for excellence in all sphere of its activities. The company has received Gandhi Puraskaram awardfor the Best Small Scale Industrial unit in Kerala for the year 2008-2009 from the Mahatma Gandhi Peace Foundation, Thiruvanathapuram and Best Performance in Energy Conservation award for the year 2009-10 from the Energy Conservation Society. Now regarding the customer satisfaction, it has won customers confidence. Since the early days, spinner pipes have endeavored to supply its products to customers through retailers and dealers, which form a dedicated force behind the success of spinner pipes. Now they adopt direct sales for the product.

SCOPE OF THE STUDY


This study is conducted to know the structure and department of the Organization of spinner pipes. This study would prove a base for future plans and it would help to get as full picture of the organization. This study would prove a base for future plans and it would help to get as full picture of the organization. This study mainly focuses on the organization, its products and its various departments. This study would help to know about history of the company and the find out about the products and market share of the company and to understand the organizational structure as well as the working of the departments of the organization. The researcher shall encounter practical situations which require immediate trouble shooting and fast and prudent solutions, there by researcher can relate numerous concepts and theories into practice.

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SPINNER PIPES The researcher can indulge in a fresh and novel approach to a problem which may not be the case to the personnel already employed in the firms as they already tend to have an indelible platform on an issue. Researcher can come up with an unbiased in partial suggestions and recommendations.

OBJECTIVES OF THE STUDY


The primary objectives of the study are : To learn and understand the vision of the organization. To know the organization structure of the spinner pipes. To get information about the department of the organization

Secondary objectives of the study are: To get an idea about the history objective of the company. To analyze the competitors and trade unions of the company To understand the financial position of the Organization To assess the working performance of the employees. To understand the service provided by the Organization to the society.

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CHAPTER 2 INDUSTRY PROFILE

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INDUSTRY PROFILE
The Indian pipe Industry is among the top three manufacturing hubs after Japan and Europe. However, the penetration level of pipelines in oil & gas transportation is low at 32% in India as compared to 59% in USA and 79% globally. The pipeline network of India for oil & gas transport stood at 13,517 kms in April 2006. Sanitation levels are also lower at 33% in India compared to 91% in Sri Lanka and 100% in France. Of 140 mm hectares of cultivable land in India, only 40% of the land is irrigated. The low penetration levels represent the huge scope for growth for the pipe industry. The industry is highly Raw Material (RM) intensive with the RM cost accounting for more than 70% of the total cost for steel and PVC pipe companies. These companies depend heavily on imports and hence many steel companies have integrated backward to reduce dependency on imports and price volatility. Freight cost is another key cost component due to higher imports and exports. With the fall in commodity prices and Baltic Dry Index (a barometer for shipping (freight rates), pipe companies will be benefited in the coming quarters. Indian companies produce a wide range of steel, cement and PVC pipes which are used in various critical and non-critical applications. Indian steel pipe manufacturing companies have won several certifications and accreditations from major oil & gas companies across the globe in the recent past. With the low-cost quality products and various certifications, Indian companies have augmented their export sales over the last three to four years. CARE Research expects the positive trend in the Indian pipe industry to continue in the next 3-5 years on the back of high oil and gas discoveries worldwide, increased efforts by the Government of India (GOI) on infrastructure development for laying pipelines for oil & gas transport, replacement demand from US and European countries water & sewage transport and irrigation facilities. Pipe Industry In the world The world needs pipe to survive for water, oil, gas & sewage. Pipes have been a fundamental part of civilization since 3,000 BC & as the world have developed, both in terms of population & infrastructure; the demand for pipe has expanded & is set.

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Overview Pipe systems were first developed from clay & wood, but since the industrial revaluation, materials such as steel, ductile iron, plastic & concrete have become more prevalent. Fiber glass followed in the 1950 s with the development of downstream petrochemical products. Today the world needs pipe to survive. We are reliant on water, gas, oil, & electricity & Pipes carry these materials from their source to their users. Pipes also carry away waste & sewage, from categories & homes. Utilization Pipes are used across a diverse number of end markets for transmission & distribution or as engineering & manufacturing components. Historically, certain pipe materials have been associated with particular end-markets & applications e.g. steel pipes for gas transmission, however fiberglass has gained increasing acceptance in many end-markets.

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CHAPTER 3 COMPANY PROFILE

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COMPANY PROFILE
History The company was started in 1996 with the name of spinner pipes. It is established for manufacturing HDPE pipe, LDPE Pipe, PVC conduit pipe & plumbing pipe. At first they started the company with workers, 20 male and 15 female workers. Now they have more than 250 workers. They have other companies Spinner Polymers Pvt. Ltd., Spinner Extrusions Private Ltd. and PeeJay industries. Spinner Polymers Pvt. Ltd. established for the manufacturing of LDPE Pipes and PVC conduit pipes and fittings. Spinner Extrusion Private Ltd., established for the manufacturing of Rigid PVC Pipes and PeeJay Industries established for the manufacturing of Power Transmission Equipments for the KSEB. VISION The vision of the company is to maintain leadership in pipes industry and develop complementary products and services to strengthen the business. Mission & Goal of the company 1. To maintain the market leadership 2. To maintain the product quality 3. To be competitive at all markets. 4. To be complaint to all global quality standards 5. To maintain the top position in the industry 6. To utilize the new technological changes for the benefit of the company. 7. To minimize the cost incurring in production process.

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OBJECTIVES OF THE COMPANY:-

The Organization ensures that these objectives are aimed at meeting the requirements of products and the customers. It also ensures that the objectives set are relevant to the functions and levels of the Quality Management system and are Measurable. The relevance and updation of the Quality objective itself is carried out once in six months and where a change is required they are suitably done by MR( Management Responsibility). To achieve 10% growth in Sales Value. To achieve 100% on-time delivery. To achieve NIL Customer Complaint. To achieve Excellent Rating from customers during customer satisfaction survey. To achieve ISI standards for HDPE Pipes up to 110mm within 1 year. To Identify and establish the business other than drinking water / Irrigation purpose pipes to new areas and regions within 1 year. QUALITY POLICY:SPINNER PIPES is committed to meet or exceed customers requirements by producing and providing high quality HDPE and LDPE pipes, which shall delight the customers and raise their confidence for its reliability and value. This shall be achieved through continual monitoring and improvement is spinners work processes. ADMINISTRATION OF SPINNER PIPES Spinner pipes, is a proprietorship firm of having 15,00,000 capital investment in its operations. The proprietor manages the firm. The firm borrowed a loan from the catholic Syrian Bank Ltd., Thrissur. The 35% of capital is owned and 65 % is borrowed capital. All major policy and business decision of the company are taken by the proprietor. Overall responsibility of the firm lies with the proprietor. The employees suggestions are welcomed while making decisions.

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SPINNER PIPES AWARDS AND RECOGNITIONS 1. Best Entrepreneur in small scale industries sector from Mahatma Gandhi, Peace foundation. Thiruvanathapuram-2008-09. 2. Trade Mark Registration 3. Onicra- NSI credit rating rate (SE2A) 4. ISO 9001-2008 certification. 5. ISI Certification in 2009. 6. Energy Conservation Award in 2009-10.

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CHAPTER 4 PRODUCT PROFILE

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PRODUCT PROFILE
The main products marketed are 1. High Density polyethylene Pipe:Grades of PE63, PE80, PE 100 and Commercial quality. DN 16mm - 110mm. Working pressure PN 2.5 to PN10. 16 mm (1/2) 20 mm (5/8) 25mm (3/4) 32 mm (1) 40mm (1 1/4) 50mm (1/2) 63mm (2) 75mm (2 1/2) 90mm (3) 110mm (4) 2. Low Density polyethylene Pipe:It includes. 16 mm (1/2) 20 mm (5/8) 25mm (3/4) 32 mm (1) 40mm (1 ) 50mm (11/2) 63mm (2) 75mm (21/2) 90mm (3)

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CHAPTER 5 ORGANISATION STRUCTURE

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ORGANISATION STRUCTURE
Spinner pipes has established its organization structure and defined the designation of each employee. Responsibilities and authorities of the employees is defined. The Manager of the company is Mrs. Bhama Sankar; Accountant of the company is Smitha Sunil. Quality controller of the company is Sini Joshy, Office assistant of the company is Preeja Rajan, Sudha Krishnan and Deepa Haridas, Shift in charge is Rajeev E.M. and Devassy P.L., Chief Operator of the company is Biju M, and other operators are Sudheesh K.S, Vineesh P.C, Kannan C.M. etc.

Organization Structure

Proprietor

Manager

Accountant Quality Controller Assistant Office Assistant

Shift in charge
Operators & Helpers

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Responsibilities and authorities:

Responsibilities and Authorities of each employee from top level Lower level is defined and communicated to the respective person and within the organization to ensure that the activities are carried out effectively. Responsibilities and Authorizes of Top Management is defined here and for others it is printed in the Job Responsibilities from for each person and given to them after the approval of proprietor. Responsibilities and Authorities of Proprietor and other partners include; o Provision of Resources required for smooth functioning of the organization and order processing o Decision making and Approval of Material Purchases, capital purchases and Monitoring and controlling of purchasing activities. o Strategic planning for Business Development o Planning, Monitoring and controlling of Financial and Marketing activities. o Order planning, Production planning and monitoring of production activities. o Monitoring and controlling of Administration and Maintenance activities.

MANAGEMENT REVIEW:Spinner pipes, conducts the Management review meeting at least two times a year to ensure the continuing stability, Suitability, adequacy and effectiveness of the implemented Quality Management system. Management Review forwards the Agenda of the meeting to all Head of the departments. The Agenda generally includes:

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SPINNER PIPES Review Input: Results of the internal audits / Certification body audits, any customer/interested parties audits and action taken. Results of supplier evaluation and rating Customer complaints and feedback. Review of Quality policy and Quality objectives Process performance and product conformance consolidated through statistical analysis (Quality objectives Monitoring Report) Status of corrective and preventive actions. Follow up action from earlier management review Changes that could affect the Quality Management Systems. Training conducted and its effectiveness Resource requirements and recommendations for improvement. Review Output:The issues discussed during the Management review are recorded as Minutes of the Management review meeting. The minutes shall include decision taken related to. Improvement of Quality management systems and its processes. Improvement of the product / service related to customer requirements Resource needs.

Internal Communication:By way of establishing organization structure, responsibilities and authorizes, ensures that the appropriate communication processes are established and happens within the Organization. The documented procedures and the records also details/ indicates the process of communication for information /review/approval of the Quality Managements system including authorities for evaluation and disposition of non-conformities. T JOHN INSTITUTE OF MANAGEMENT & SCIENCE Page 24

SPINNER PIPES Communication methods include, circulars, Memos, Performance Reports, Minutes of the Meetings and Notice Boards. The organizations also conduct management review at least two times in a year for reviewing the effectiveness of the implemented Quality Management system. Such review meetings acts as a tool of communication to the personnel the effectiveness of the Quality Management system and also as a process for continual improvement.

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CHAPTER 6 FUNCTIONAL DEPARTMENTS

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Functional Departments
6.1 Human resource department

6.2 Statistical quality control department


6.2 6.1

Production department Purchase department

6.2 Finance department 6.3 Marketing department

6.7 Sales department

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6.1 HUMAN RESOURCE DEPARTMENT

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1. HUMAN RESOURCE DEPARTMENT Human resource department is important because in any organisation management of personnel has great significance. The existence of an organisation depends upon the human beings working there. So it should be managed carefully. The development of industries into larger and complex units employing various categories of employees created special problems. Hence a separate department specialized in the knowledge of human relations in inevitable Personnel department of spinner pipes leads to the maximum utilization of indi vidual ability, promotion of team spirit, development of job satisfaction, and reduction in labour turnover and thus improves productivity.

FUNCTIONS OF HUMAN RESOURCE DEPARTMENT


1. RECRUITMENT AND SELECTION Recruitment and Selection is one of the most important function performed by the personal manager recruitment is the process of searching for prospective employees and stimulate them to apply for jobs in the organisation selection is the process of finding out the most suitable and promising candidates to full up the vacancies recruitment is the process of inviting application from probable candidates, but selection is the process of elimination. Recruitment & selection procedure: Whenever need arises new employees are recruited based on the requirements like Education, skill, Experience and knowledge required for the vacant position People are invited to apply for the job through advertisement on the paper. Personal reference by other employees and other people are also considered. Applicants are filtered on the basis of their eligibility for the requirements. Then selected applicants are called for a personal interview before the General committee of the board.

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SPINNER PIPES Suitable person is appointed and basic details about them are collected and filed in the Employee records. Initial training on the Quality management system is given to the new recruits by the management Responsibility and recorded in the Training recorded. On the Job training is given by the respective HOD (Head of the Department) 2. TRAINING Training is the process of increasing the knowledge and skills for doing a particular job. It is an organised procedure by which people learn knowledge and skill for a definite purpose. The main purpose of training is to bridge the gap between job requirements and present competence of an employee. Training procedure: Employees are evaluated in their competency and performance Evaluation and Training needs are identified. Identified training is noted in the Annual planner. If necessary employees are also sent for seminars/workshops conducted by government bodies or non-government bodies related to their job. All training details are recorded in the Training Recorded. After the training /Seminar/ workshop the trainee is evaluate by the MR/Department Head on Evaluation of Training 3. WELFARE ACTIVITIES The welfare activities provided by the company are as follows: 1. ESI 2. Provident fund 3. LIC policy to workers /staff 1. EMPLOYEES STATE INSURANCE :It is formed under Employees state insurance plan. Employer contribution is 4.75% and employee contribution is 1.75% of basic salary to this fund.

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2. PROVIDENT FUNDS:Contribution to provident fund and employee welfare is charged to profit and Loss A/c employer and employee contribution to Provident fund is 12% of basic salary. 3. LIFE INSURANCE CORPORATION:The Company takes a life insurance policy for every employee. After their retirement either the policy amount or the policy document is handed over to the employees. WORKING TIME The office time starts from 9 am to 5pm production is in three shifts. First shift 8am to 4 pm Second shift 4 pm to 12 am Third shift 12am to 8 am

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STRUCTURE OF HUMAN RESOURCE DEPARTMENT

HR Manager

Supervisor

Clerk

Security

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GRIEVANCE PROCEDURE All complaints of individual nature regarding payment of wages, wage calculation, confirmation, transfer, grant on leave, overtime, work assignment , working conditions, interpretation of service agreement and other complaints of similar nature arising in course of employment may constitute grievances and the same shall be redressed in the following manner. 1. 2. Any employee/ workman having a grievance shall first report to his immediate supervisor who will decide it within two working days. If the employee / workman is not satisfied with the decision of the immediate supervisor he shall be given his complaint in written to the head of the department who will give his decision within three working days. 3. 4. If the head of the department fails to give his decision within three working days he may then make a written complaint to the manager. The manager shall discuss the matter and submit his views to the managing partner with a work, who will give his final decision in the matter within a week. The decision of the managing partner will be communicated to the concerned employee with information to the Head of the Department. There are two types wages earners: A. UNSKILLED BUT PERMANENT WORKERS - Gets daily wages. B. OFFICE STAFF - Salary on the last working day of every month.

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6.2 STATISTICAL QUALITY CONTROL DEPARTMENT

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2. STATISTICAL QUALITY CONTROL DEPARTMENT Spinner Pipes, with its endeavor towards Continual Improvement is implementing the Quality Management system in-line with ISO 9001: 2008 Standards. To demonstrate its ability to consistently provide product that meets customer and applicable regulatory requirements, and To enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable regulatory requirements. It covers Manufacturing and selling of HDPF, LDPE, and other PVC Pipes. Application: All the requirements of ISO9001:2008 except the exclusions justified below is applicable to Spinner Pipes at: Exclusions and Justifications: The following requirements are excluded from the Quality Management System of Spinner Pipes due to the fact that. Design and Development- The Organization is not involved in any design and development activities in their products/process and do processing only based on conventional standards. Validation of Processes for Production and Service Provision- There are no processes in the organization where the resulting output cannot be verified by subsequent monitoring and measurement. Processes: Spinner Pipes , has identified the Processes, their sequences and interactions, criteria, methods, resources and information needed to monitor and control these processes effectively for, Manufacturing of HDPE and LDPE pipes as per the Customer requirements to enhance their Satisfaction and continually improving the effectiveness of the Quality Management System. These Processes include processes for Management activities, Provision of Resources. Product Realization and Measurement. T JOHN INSTITUTE OF MANAGEMENT & SCIENCE Page 35

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Quality management System Processes:

Customers
Customer Feed Back

Establish Quality Policy & Measurable Quality Objectives And Management Review

Monitoring Measurement and Analysis through Checking/ Inspections/Evaluation/IQA/ Feedback

SPINNER PIPES Quality management System Resources Planning, Provision, Training and Maintenance and Calibration

Production planning, Process Control and Delivery of Gods

Evaluation and Rating of Suppliers

Suppliers
Process Flow Information Flow

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Functional Process : Enquiry/Orders Market Forecast Eva luation and Rat ing of Sup pli-

Enquiry Processing /Order Review and confirmation

Raw materials Requirement Planning

Procurement of Reprocess HD/ LD Granuels and Virgin Granuels

Incoming Inspection Production Planning


HDPE LDPE Mixing LDPE RP

PVC/ Garden Hose

Mixing HDPE RP Granuels and Virgin Granuels and other

Granuels and other materials

Feed PVC Compound

Extrusion

Measuring and Packing

Extrusion Checking 1st mtr/length

Checking 1st mtr

Final Checking Loading and Delivery

Production

Production

Maintenance of Machines Take Action on Non-conformities

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SPINNER PIPES Documentation: Spinner Pipes has established Documentation for the Quality Management System in line with the requirements of ISO 9001:2008. The Documents are divided in to various Levels as applicable. Level l Quality management system Manual Consists of the Scope , Exclusions and Justifications, Quality Policy, Quality Objectives, Process Interactions and reference to various procedures required by the Quality Management System. Level II- Procedure Manual Procedures includes documented procedures required by the Standards viz, Document and Data Control, Internal Quality Audit , Control of Non Conforming Products and corrective & Preventive Action. Procedures required to effectively implement the Quality management system into the organization viz , Order Processing, Purchasing, Stores, Production, Quality Assurance and Administration. Level III-work Instructions Work instructions consists of the method of operations covering the activities like Mixing & Extrusion, Preventive Maintenance & Calibration. Level IV- Quality Plan Quality Plan explaining spinners Quality requirements for HDPE, LDPE, PVC pipes and Garden Hose during various stages. Level V-Forms and Records Forms and records as required by the Standards and as identified by the organization for effective implementation of the Quality management System. Quality Management System Planning. Spinner Pipes has established a broad process flow, its interaction and its application throughout the organisation, which acts as a basic guideline for planning the Quality management system. The process flow is documented in the quality management system manual and the control measures needed for the effective functioning and continual improvement of these processes is detailed in the respective procedures and work instructions.

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SPINNER PIPES The quality management system is planned in such a way that it will provide as mechanism to analyze the achievement of quality objectives and further review. Such documentation and their approvals aid in maintaining the integrity of the quality management system when changes occur.

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6.3 PRODUCTION DEPARTMENT

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3 .PRODUCTION DEPARTMENT Production department is important because this department is directly related to production process. All functions related to production process has an output. Main production process involved in spinner pipes is the manufacturing of HDPE pipe LDPE pipe , PVC conduit pipe and plumbing pipe. Production process is controlled by the production department. Production department is headed by the production manager. The production department have will equipped and modern machine for producing HDPE pipe, LDPE pipe PVC conduit pipe and plumbing pipe. Raw materials required for producing the products are purchased by the purchase department. Order is placed when the raw materials in a lot reaches the recording level, Recording level is the level at which stock of a particular raw material in store approaches the store keeper should initiate the purchase requisition for the fresh supplies of that material. The production of HDPE pipe requires raw material such a HD granules, Jet black master batch, Raw materials required for LDPE pipes are LD granules and Carbon black. Production planning is done before the production of the product. It is done by the production manager. Production Process It includes the following steps 1. Production Planning 2. Production 2. Packing and delivery 1. PRODUCTION PLANNING :a.Orders received from the outsourced marketing agency is reviewed and registered in the order register. Production planning for the received order is done and job card is raised for each order. b.Seasonal demand for HDPE, LDPE, PVC conduit pipes and Garden house are forecasted by the partners as per the market demand production planning for the forecasted demand is also done and job card is raised T JOHN INSTITUTE OF MANAGEMENT & SCIENCE Page 41

SPINNER PIPES c.Job card is prepared with the following details i. ii. iii. iv. v. vi. Order details or demand Details Pipe specifications Quantity Quality Requirements Job card is forwarded to the production department for facilitating the smooth flow of production and delivery of the pipes. During production, first meter of HDPE and LDPE pipes is inspected and the quality requirements are ensured as per the Job card. Inspection result is recorded in the Job card. vii. viii. ix. During the production of HDPE/LDPE pipes air is compressed inside the pipe and the damages are monitored and corrected. First length of PVC conduit pipe/ First meter of Garden hose is inspected and approval is given for the bulk production. Final Inspection of HDPE/LDPE pipes/ Garden hose are done as per the Quality plan before loading and delivery- Inspection results are recorded in the Final Inspection Report. 2. PRODUCTION Raw materials require for the production of pipes is procured and stored as per the purchasing and stores procedure. Authorized inspector ensure that the raw materials received fulfills the quality requirements of spinner for the production of HDPE, LDPE and Garden hoses. RP Granuels /Virgin granuels and other chemicals required for the production of HDPE and LDPE pipes are mixed in a ratio as specified in the job card Machine setting is checked or modified as required for the production of the pipe specifications mentioned in the job card. Mixed materials are feeded in to the machine and pipe production is started and done as per the work instruction In process inspection is carried out and the quality requirements are ensured in bulk production.

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3.

PACKING AND DELIVERY

HDPE/LDPE pipe are measured and packed during production . PVC conduit pipes/ Garden hose are also packed and kept ready for final inspection and delivery. All the products are inspected finally and loaded in trucks and delivered as per the order requirements. Invoice is prepared and forwarded along with the product . Billing and follow up of payments is carried out by the Accounts department. HDPE pipes are differentiated from LDPE pipes with a lining on the pipes. All pipes are identified with Length or weight and a code which is traceable to the Job card for the specifications regarding manufacturing date and other details. HDPE pipes are identified with an embossment on the pipes with length, company name, product name, month, year, dimension and pressure gauge. Materials and pipes are stored at the designated area with proper identification. Any non-conformities identified during any stage is analyzed and corrective and preventive action is taken. Details are recorded in the Non-Conformity and Corrective & preventive Action Report. Production details of all pipes are consolidated in the production Register.

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6.4 PURCHASE DEPARTMENT

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4. PURCHASE DEPARTMENT In Spinner Pipe the purchase department mainly deals with purchase of raw materials . In addition to raw material purchasing the purchase department also purchases stores and spares stationery items and capital items. Several factors are considered while placing purchase order. These factors are god own capacity space allotted for each item, Labour availability and financial capacity. Purchase Procedure. It includes the following steps Supplier Evaluation and Rating Purchase of Materials. Receipt and Verification of purchased Materials Storage and Issue Materials Maintenance of stock 1. SUPPLIER EVALUATION AND RATING: All suppliers (Existing or New) are evaluated Evaluation form-suppliers and included in the Approved list of suppliers as per the result. Approved list is approved by Managing partner Customer nominated suppliers are not evaluated but rated on their performance as other suppliers The criteria for selection, evaluation & revaluation is established in the respective evaluation form and rating forms. The suppliers are rated for their performance once in a year through Rating form suppliers. Based on the rating results, the decision is taken either to retain or eliminate a supplier from the approved list by the MPI / Partner 2& 3 The rating form is approved by the MPI. These results of ratings and subsequent action taken forms as an input to the management review for reviewing corrective action and identifying preventive measures.

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2. PURCHASE PF MATERIALS o Raw materials (RP Granuels, Virgin Granuels , PVC compound) required for the production of HDEP, LDPE and other PVC pipes are planned in the Material requisition Form and procured in bulk quantities. Other materials and packing materials are also planned in the material requisition form and procured . o Suitable suppliers are selected from the approved List and quotation is sought from the suppliers for placing the order. If necessary, samples are made and approved before bulk order to ensure quality and other requirements are met. o Based on the quotation, suitable supplier is selected and purchase order is issued along with all specifications of the materials, required date of delivery and other necessary terms and conditions. Orders are also placed directly just after selecting a supplier without any quotation o A copy of purchase order is sent to the stores for reference during material receipts.

3. RECEIPT AND VERIFICATION OF PURCHASED MATERIALS A list of Authorized Inspector is established to inspect the incoming materials, in process materials and finished goods. Quality plan rial receipt Note. Any deviations from the requirements specified in the purchase order is resolved with the supplier by requesting them to reprocess, resend or to take back the materials after delivering new materials as per the requirements after discussing with respective authorities. Inspection result and receipt details are recorded in the mateRaw materials are received at the stores which is verified by the authorized inspector for its hardness and other characteristics as per the

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SPINNER PIPES In the event of verification required at suppliers place before the products are released, suitable instructions are provided to the supplier either a part of purchase information or as a special notification. Any deviations from the requirements specified in the purchase order is resolved with the supplier by requesting them to reprocess, resend or to take, back the materials after delivering new materials as per the requirements after discussing with respective authorities. In the event of verification required at suppliers place before the products are released , suitable instructions are provided to the supplier either as part of purchase information or as a special notification Similarly where the customers require to verify the products at the suppliers premises the same is informed to the supplier through similar arrangement as explained above. Receipts and Issue register is maintained for all materials by the operators.

4. STORAGE, ISSUE AND MAINTENANCE OF STOCK Materials received are verified as per the procedure and stored in the respective bins/area with proper identification All materials are issuer on request from respective persons . All issue are recorded in the Receipt and Issue Register maintained for each material. Receipt and Issue Register is updated after every transaction.

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6.5 FINANCE DEPARTMENT

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5. FINANCE DEPARTMENT In Spinner pipes finance department mainly deals with the various kinds of payments such as purchase payment and general payment , Daily payments, receipts , Loan facility, Insurance etc. For the purchase payments mainly three documents are necessary- materials receipt note, purchase order & Bill. Purchase includes the purchase of raw materials for the production materials receipt note is produced for storing the item received . If the Quality of the item is satisfactory the payments may be paid in full, Otherwise rebate is changed. They are single , double , or triple rebate according to the quality degradation General payments mainly include salary dispersement, ESI, PF, In spinner pipes monthly salary is paid with in 5ht day of every month . 20% of salary received in advance. Those whose were in needed of money can gather it. It is not compulsory. 4.75% of ESI of every employee is paid by the company. and 1.75% of it is paid by the employee. For provident fund 12% of salary from both employer and employee. Daily payments include daily wages to unskilled but permanent workers. Spinner pipes has currently banking with the Catholic Syrian Bank Ltd., Thrissur. All the receipts and payments are through the bank only. Prudent financial management and a futuristic outlook has been the abiding principle of turning around the initial setbacks into the strengths. The companys constant investments in growth have been producing good returns. The financial future of spinner pipes is secure and bright.

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SPINNER PIPES KEY OPERATIONS OF FINANCIAL DEPARTMENT 1. Management of firms asset structure manages the liquid assets. a. Determining the capital budget. b. Establishment the credit policy. c. Controlling the level of investments. 2. Financial analysis, planning and control with a. Assessing the financial performance b. Forecasting the financial structure c. Estimating the financial future 3. Management of firms financial structure a. Establishing debt equity ratio b. Determining the dividend policy c. Negotiating and developing relations with suppliers of capital.

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Structure of finance department

Finance Manager

Accountant

Clerk

Computer Operator

Cashier

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6.6 MARKETING DEPARTMENT

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6. MARKETING DEPARTMENT All the marketing activities of spinner pipes is done in this department. The company-has dealers all over Kerala. The dealers of the company collect orders from the market and sent this orders to the marketing department. The marketing department process this orders and collect payments from the buyers. Sometimes direct sales from the factory premises is also done. The company concentrating its sales mainly in Kerala. The important market locations in Kerala are. Idukki Thrissur Kottayam Ernakulam Alappuzha Palakkad Malapuram Kozhikode Kannur Kasarcode Wayanad Pathanamthitta

Idukki Kannur Kasarcode Kottayam Alappuzha Thrissur

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ADVERTISING STRATEGIES Wall paintings Cloth banners Display boards

The price of product is determined by considering factors such as raw material cost, production cost , demand of the product, and price of the competitors

STRUCTURE OF MARKETING DEPARTMENT

Marketing Manager

Assistant Marketing Manager

Marketing Executives

Dealers

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6.7 SALES DEPARTMENT

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SPINNER PIPES SALES DEPARTMENT In Spinner pipes sales are done through dealers . The company have wide dealer network. They have dealers in Idukki,Thrissur, Kottayam,Ernakulam, Alappuzha, Palakkad, Malapuram, Kozhikode, Kannur , Kasarcode , Wayanad, Pathanamthitta The sales of the last year was 14620000. The following graph shows the sales of past years.

100 80 60 40 20 0 20042005 20052006 20062007 20072008 20082009 Series1

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INTERNATIONAL ORGANISATION FOR STANDARDIZATION ISO 9000 is a family of standards for Quality management system. ISO 9000 is maintained by ISO, International organisation for standardization and is administered by accreditation and certification bodies. Some of the requirements in ISO 9001-2008(which is one of the standards in the ISO 9000 family) includes. A set of procedures that covers all key processor in the business Monitoring processes to ensure they are effective. Keeping adequate records Checking output for defects, with appropriate corrective action where necessary Regularly reviewing individual process & the quality system itself for effectiveness & facilities continual improvement. Now a days the concept of Quality is undergoing a great change. Quality control often involved testing well during & after production. Today ISO 9000 certification is becoming almost essential for Indian business house to export their products. One of the requirements of ISO standard is an effective management representative who would be responsible for the effective documentation, implementation & co-ordination of activities of all senior activities. The standard requires that the management of the organisation must clearly define its quality policy, the intentions & directions of the organisation etc. Everybody in the organisation must understand the policy & work towards its implementation & maintenance. ISO certification is applied to quality management system, encompassing quality in all its functions. ISO, certification is the mechanism by which a customer can have confidence in a company & is most effective when carried out by a national certification body. The ISO 9000 series of standards serve as a basic for ensuring to all providers of goods & services.

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CHAPTER 7 SWOT ANALYSIS

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SWOT ANALYSIS
SWOT ANALYSIS is an important aid for the management when it comes making critical decisions. SWOT is an acronym for strength, weakness, opportunities shows the positive aspects where as the weakness and threats represent negative aspects that the company should be important in the future for the organization. Every successful firms success lies how it implements the outcomes of SWOT analysis. A company and its performance can be analyzed in many aspects. STRENGTH Experience in the field over 10 years Leadership in the market Reputation & image of the company Good network of dealers Efficient employer- employee relationship Capable Marketing personnel Good quality management SPINNER provides fairly good after sales service to customers, thereby ensuring the loyalty towards the product

WEAKNESS High raw material cost Inadequate promotional activities High transportation cost Non availability of raw materials Quality control requires a huge investment in time and manpower, this involves a considerable dead time before the products are approved for marketing.

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OPPORTUNITIES Expanding its distribution areas Growing demand of its products Adopting new promotional strategies Widespread market & in neighboring states. THREATS Competition from other manufacturing units Govt. rules & regulations Shortage of skilled and un skilled workers Increasing the price of raw materials

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CHAPTER 8 FINDINGS

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FINDINGS:

Largest HDPE Pipe manufacturing unit in Kerala State. The department follows open door policy in setting grievances. All departments work related to the finance department. Proper cash management is the function of finance department. Since the company is ISO certified. The raw material used should have the required quality. Inventory control and warehousing are the major function of production department. The company bears good relation with the employees, customers, dealers and suppliers making them good entry to deal with. Excess demand for the products.

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CHAPTER 9 SUGGESTION

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SUGGESTION
To maintain good relationship between employees and management. The company should take necessary steps to increase their production capacity to meet the additional demand for their product. Provided direct and indirect employment. Promote the dealers through proper marketing strategies. Provide proper safety equipment to protect them from hazards

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CHAPTER-10 CONCLUSION

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CONCLUSION
Spinner Pipe is one of the leading manufactures in pipe industry. The company is facing tough competition from other manufactures. The organisation study is very helpful to me to understand and to get knowledge about the functioning of the organisation. The top management of the company is well experience efficient dynamic with clear vision in their objectives. The industrial relations with the competitors are fairly good and there is greater co-operation between management and the employees.

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CHAPTER 11 BIBILIOGRAPHY

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BIBLIOGRAPHY
Modern Marketing:- Philip Kotler Manual of the Department Human resource Management:- K. Venugopal K. Abdul Assis

Website www. spinnerpipes.com www.google.com

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