an organization study

SPINNER PIPES

PROJECT REPORTON

“AN ORGANIZATION STUDYAT

SPINNER PIPES”SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIRE-

MENT FOR THE AWARD OF MASTER OF BUSINESS ADMINIS-

TRATION (MBA)

(BANGALORE UNIVERSITY)(2009-2010)

SUBMITTED BY

SANGEETH M SREG NO: 09MJCMA083

UNDER THE GUIDANCE OF Mr. GANAPATHY

Faculty

T.JOHN INSTITUTE OF MANAGEMENT AND SCIENCEBANGALORE-560083

(2010)

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE

SPINNER PIPES

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 Ad-

ministration of the Bangalore university is my own work. The report has not been submit-

ted 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 De-

partment), TIMS Bangalore and our Director Mr. whose con-

stant guidance, encouragement and resourceful help with personal touch were immensely

instrumental 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


SPINNER PIPES

TABLE OF CONTENTS

CHAPTER TITLE PAGE NO:

1 INTRODUCTION 9

2 INDUSTRY PROFILE 14

3 COMPANY PROFILE 17

4 ORGANISATION STRUCTURE 22

5 PRODUCT PROFILE 29

6 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

31

7 SWOT ANALYSIS 51

8

FINDINGS

9 SUGGESTION

10 CONCLUSION 53

11

BIBILIOGRAPHY

56


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DECLARATION


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CERTIFICATE


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ACKNOWLEDEGEMENT


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CHAPTER 1

INTRODUCTION


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INTRODUCTION

Spinner pipes is one of the leading manufacturers of Pipe industries in the south-

ern 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 so-

cial 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 Founda-

tion, 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 cus -

tomers 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 fu-

ture 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 work-

ing of the departments of the organization.

The researcher shall encounter practical situations which require immediate trou-

ble shooting and fast and prudent solutions, there by researcher can relate numer-

ous concepts and theories into practice.


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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 recommenda-

tions.

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.


SPINNER PIPES

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. Sani-

tation 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 compa-

nies. 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 commod-

ity 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. In-

dian steel pipe manufacturing companies have won several certifications and accredita-

tions 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.


SPINNER PIPES

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 petro-

chemical products.

Today the world needs pipe to survive. We are reliant on water, gas, oil, & elec-

tricity & 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 & distri-

bution or as engineering & manufacturing components. Historically, certain pipe materi-

als have been associated with particular end-markets & applications e.g. steel pipes for

gas transmission, however fiberglass has gained increasing acceptance in many end-mar-

kets.


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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 require-

ments 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 rele-

vance 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 pur-

pose pipes to new areas and regions within 1 year.

QUALITY POLICY:-

SPINNER PIPES is committed to meet or exceed customers requirements by pro-

ducing and providing high quality HDPE and LDPE pipes, which shall delight the cus-

tomers 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 employee’s suggestions are

welcomed while making decisions.


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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.


SPINNER PIPES

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 ¼”)

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 des-

ignation 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


Accountant

Quality Controller

Manager

Office AssistantAssistant

Shift in charge

Operators & Helpers

Proprietor

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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 Mon-

itoring 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 imple-

mented 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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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, en-

sures 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 in-

cluding authorities for evaluation and disposition of non-conformities.


SPINNER PIPES

Communication methods include, circulars, Memos, Performance Reports, Min -

utes 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 effec-

tiveness of the Quality Management system and also as a process for continual improve-

ment.


SPINNER PIPES

CHAPTER 6

FUNCTIONAL DEPARTMENTS


SPINNER PIPES

Functional Departments

6.1 Human resource department

6.2 Statistical quality control department

6.2 Production department

6.7 Purchase department

6.8 Finance department

6.9 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 de-

velopment of industries into larger and complex units employing various cate-

gories of employees created special problems. Hence a separate department spe-

cialized 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 re-

duction 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. Per-

sonal 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 commit-

tee of the board.


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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 re-

quirements 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-gov-

ernment 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/Depart-

ment 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 retire-

ment 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 calcula-

tion, confirmation, transfer, grant on leave, overtime, work assignment , working condi-

tions, 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. Any employee/ workman having a grievance shall first report to his immediate su-

pervisor who will decide it within two working days.

2. If the employee / workman is not satisfied with the decision of the immediate su-

pervisor he shall be given his complaint in written to the head of the department

who will give his decision within three working days.

3. 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.

4. The manager shall discuss the matter and submit his views to the managing part-

ner 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 em-

ployee 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 Spin-

ner Pipes due to the fact that.

Design and Development- The Organization is not involved in any design and de-

velopment activities in their products/process and do processing only based on

conventional standards.

Validation of Processes for Production and Service Provision- There are no pro-

cesses in the organization where the resulting output cannot be verified by subse-

quent monitoring and measurement.

Processes:

Spinner Pipes , has identified the Processes, their sequences and interactions, cri-

teria, 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 en-

hance their Satisfaction and continually improving the effectiveness of the Quality

Management System.


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These Processes include processes for Management activities, Provision of Re-

sources. Product Realization and Measurement.

Quality management System Processes:

Customer Feed Back

Evaluation and Rating of Suppliers

Process Flow

Information Flow


Customers

Establish Quality Policy &Measurable Quality Objectives

And Management Review

Monitoring Measurement andAnalysis through Checking/Inspections/Evaluation/IQA/

Feedback

Resources Planning, Provision,Training and Maintenance and

CalibrationProduction planning, ProcessControl and Delivery of Gods

Suppliers

SPINNER PIPESQuality management System

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Functional Process :

Maintenance of Machines

Take Action on Non-conformities


Enquiry/Orders Market Forecast

EnquiryProcessing

/OrderReview

andconfirma-

tion

Raw materials RequirementPlanning

Evalua-tion and Rating of Suppli-

Procurement of Reprocess HD/LD Granuels and Virgin

Granuels

IncomingInspection

ProductionPlanning

Mixing HDPE RPGranuels and VirginGranuels and other

Mixing LDPE RPGranuels and other

materials

Feed PVC Com-pound

ExtrusionMeasuring and Packing

Extrusion

Checking 1st mtr Final CheckingChecking 1st mtr/length

ProductionLoading and De-

livery Production

HDPELDPE

PVC/Garden Hose

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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 Ob-

jectives, 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, Docu-

ment and Data Control, Internal Quality Audit , Control of Non Conforming Prod-

ucts 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 spinner’s 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 organiza-

tion for effective implementation of the Quality management System.

Quality Management System Planning .

Spinner Pipes has established a broad process flow, its interaction and its applica-

tion 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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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 depart-

ment 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 pur-

chase 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 ap-

proaches 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 regis-

tered in the order register. Production planning for the received order is done

and job card is raised for each order.


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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

c. Job card is prepared with the following details

i. Order details or demand Details

ii. Pipe specifications

iii. Quantity

iv. Quality Requirements

v. Job card is forwarded to the production department for facilitating the

smooth flow of production and delivery of the pipes.

vi. 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. During the production of HDPE/LDPE pipes air is compressed inside the

pipe and the damages are monitored and corrected.

viii. First length of PVC conduit pipe/ First meter of Garden hose is inspected

and approval is given for the bulk production.

ix. 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 re-

quirements 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


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In process inspection is carried out and the quality requirements are ensured in

bulk production.

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 deliv-

ery.

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 Cor-

rective & 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 pur-

chases stores and spares stationery items and capital items. Several factors are consid-

ered 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 perfor-

mance as other suppliers

The criteria for selection, evaluation & revaluation is established in the re-

spective 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 subse-

quent action taken forms as an input to the management review for review-

ing corrective action and identifying preventive measures.


SPINNER PIPES

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 require-

ments 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 deliv-

ery and other necessary terms and conditions. Orders are also placed di-

rectly 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.

Raw materials are received at the stores which is verified

by the authorized inspector for its hardness and other characteristics as per

the Quality plan

Inspection result and receipt details are recorded in the ma-

terial receipt Note.

Any deviations from the requirements specified in the pur-

chase order is resolved with the supplier by requesting them to reprocess, re-

send or to take back the materials after delivering new materials as per the

requirements after discussing with respective authorities.


SPINNER PIPES

In the event of verification required at suppliers place be-

fore the products are released, suitable instructions are provided to the sup-

plier either a part of purchase information or as a special notification.

Any deviations from the requirements specified in the pur-

chase order is resolved with the supplier by requesting them to reprocess,

re-send 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 be-

fore the products are released , suitable instructions are provided to the sup-

plier 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 mate-

rial.

Receipt and Issue Register is updated after every transaction.


SPINNER PIPES

6.5 FINANCE DEPARTMENT


SPINNER PIPES

5. FINANCE DEPARTMENT

In Spinner pipes finance department mainly deals with the various kinds of pay-

ments such as purchase payment and general payment , Daily payments, receipts , Loan

facility, Insurance etc.

For the purchase payments mainly three documents are necessary- materials re-

ceipt 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 ad-

vance. 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 prin-

ciple of turning around the initial setbacks into the strengths. The company’s constant in-

vestments in growth have been producing good returns. The financial future of spinner

pipes is secure and bright.


SPINNER PIPES

KEY OPERATIONS OF FINANCIAL DEPARTMENT

1. Management of firm’s 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.


SPINNER PIPES

Structure of finance department


Finance Manager

Accountant

Clerk

Computer Operator Cashier

SPINNER PIPES

6.6 MARKETING DEPARTMENT


SPINNER PIPES

6. MARKETING DEPARTMENT

All the marketing activities of spinner pipes is done in this department. The com-

pany-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 con-

centrating 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

SPINNER PIPES

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

SPINNER PIPES

6.7 SALES DEPARTMENT


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.


0

20

40

60

80

100

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

Series1

SPINNER PIPES

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 effective-

ness & 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 be-

coming almost essential for Indian business house to export their products.

One of the requirements of ISO standard is an effective management representa-

tive who would be responsible for the effective documentation, implementation & co-or-

dination 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 im-

plementation & 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 na-

tional certification body. The ISO 9000 series of standards serve as a basic for ensuring to

all providers of goods & services.


SPINNER PIPES

CHAPTER 7

SWOT ANALYSIS


SPINNER PIPES

SWOT ANALYSIS

SWOT ANALYSIS is an important aid for the management when it comes making criti -

cal decisions. SWOT is an acronym for strength, weakness, opportunities shows the pos-

itive aspects where as the weakness and threats represent negative aspects that the com-

pany should be important in the future for the organization. Every successful firms suc-

cess lies how it implements the outcomes of SWOT analysis. A company and its perfor-

mance 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.


SPINNER PIPES

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


SPINNER PIPES

CHAPTER 8

FINDINGS


SPINNER PIPES

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 re-

quired quality.

Inventory control and warehousing are the major function of production depart-

ment.

The company bears good relation with the employees, customers, dealers and sup-

pliers making them good entry to deal with.

Excess demand for the products.


SPINNER PIPES

CHAPTER 9

SUGGESTION


SPINNER PIPES

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


SPINNER PIPES

CHAPTER-10

CONCLUSION


SPINNER PIPES

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.


SPINNER PIPES

CHAPTER 11

BIBILIOGRAPHY


SPINNER PIPES

BIBLIOGRAPHY

Modern Marketing:- Philip Kotler

Manual of the Department

Human resource Management:- K. Venugopal

K. Abdul Assis

Website

www. spinnerpipes.com

www.google.com


an organization study

Documents

catholic syrian bank

energy conservation award

pvc conduit pipes

quality management systems

material requisition form

quality management system

spinner pipes certificate

applicable regulatory requirements