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ALLEPPY CO-OPERATIVE SPINNING MILL
CHAPTER- 1
INTRODUCTION
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ALLEPPY CO-OPERATIVE SPINNING MILL
1 .1 Introduction to Study
As per the MBA curriculum organization study is the necessary one. It provides
an opportunity to apply knowledge and skill in the real world. Organizational structure refers
to the formal established pattern of relationships amongst the various Parts of a firm or any
organization.
In this study at the alleppy co-operative spinning mill, is an attempt made to study
and to understand about the basic element of an organization including the functional and
managerial aspects. This study throws light in to the textile industry in general, structure and
the functioning of different departments in the spinning mill.
This study helped to me to understand about the production prevailing in the textile
sectors and the constraints which are being faced by the millions now present in Kerala. The
important of textile industry is the single most exporter earner (around30%) of the gross
exports earning for India and it is the second most employment provider after agriculture
sector. Thus the study will enable a more tangible and efficient way.
1.2 Objectives of the study
1) To make theoretical belief in to practical knowledge
2) To get in touch in and communicate with all the people or worker from top to
bottom of the organization.
3) To understand about the origin, history and future plans of the company.
4) To understand about the product & services provided by the company.
5) To know the functioning of various departments.
6) To understand SWOT of the organization &there by providing suggestions for the
company to improve its efficiency.
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1.3 Significance of the study
As a management student this organizational study helps to understand various
functional and managerial aspects of the firm. It gives theoretical as well as of the firm and
knowledge regarding the management of the firm.
This industrial exposure has enables to understand the practical use of these various aspects.
The organizational study about various functional & managerial aspects of the organization.
1.4 Scope
The report related with the study of organizational structure and over the following aspects
a) History of the company
b) Relation between the management and the workers
c) The planned polices, the procedures, controls that guide activities & relationships
communication networks etc.
d) Position and performance of the company.
This organizational study provides an insight in to the fascinating world of management
study. It helps to incorporate the theoretical knowledge with practical knowledge and also
this is a sleeping stone for the final project.
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1.5 Research Methodology
Methodology is a procedure or technique in research study or investigation. There are
mainly two sources of data collected they are:
A) PRIMARY SOURCE
In this type data collected mainly through direct observation, formal interview with
Managers, department `heads, interaction with different levels of employees. There are also
called first hand information.
Primary data are also collected through the following methods
1) Experimental method
2) Survey method
The above methods including following techniques for the collection of data
1) Direct observation.
2) Unstructured interviews.
3) Listening to the general talks by the department heads.
B) SECONDARY SOURCES
Secondary data can be defined as data collected by someone else for the purpose other
than solving problem. The data in published & unpublished sources depends on these
secondary data.
They are two types
1) Internal sources
2) External sources
The secondary data can be obtained from
Technical and trade journals
Books, magazines &newspapers
Journals published by him
Annual report of the company
Operating manuals of various departments
Company website, Unpublished sources are also available
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1.6 Limitations of the study
Time constraint was limiting factor.
ACSM were dealing all the market with agents no direct marketing So it is difficult to
find out the making situations
Finding customer attitude about the product is a difficult task.
The study was conducted in a single organization; hence comparison with not possible.
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CHAPTER-2
INDUSTRY PROFILES
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INDUSTRY PROFILE
Textile is derived from Latin word ’TEXERE’which means to weave. It was originally
applied only to woven fabrics, but now a general term for fibers yarn and other materials. The
major cotton producing states are Punjab, Haryana, Gujarat, Maharashtra, Rajasthan and Andra
Pradesh. India has the largest hector age in the world amounting to a million hectors or 25% of
the textile industry in Kerala is rather small compared to the best of the country. In Kerala in
order to satisfy the raw materials needs of waves, government of Kerala stated 5 spinning mill
under co-operative sector.
The public sector units in textile sector where mainly engaged in the activities of yarn
manufacturing. The 9 units including the 4 companies owned by employee around 5979
personnel accounts for 10% of total employment in enterprise under industries development. The
major problems of textile one is
1 Cotton export and price.
2 Delay in cotton yarn exports.
3 Non-availability of credit.
4 Low productivity.
5 Change of fashion.
6 Power problems.
PROCESS
In spinning process, separate fibers are trusted together to bind them in to a stronger long yarn
vary based on the material used, fibers length and alignment, quantity fibers used and degree of
twist. The direction in which the yarn is spin is called twist and yarn are characterized on 2 twists
or 5 twists according to the direction of spinning rightness of twist is measured in twist per inch
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(IPI). Two or more spun yarn may be twisted together or piled to form a thicken yarn. Generally
hands Spun single piles one spun with a Z-twisted and playing is done with an S-twist.
CONTEMPORARY HAND SPINNING
With the recent part, many new spinners have joined into this ancient process
innovating the craft and creating new technologies from using many new applicants of dying
before wouldn’t be in a traditional yarn, to crafting techniques like coiling, this craft is
constantly evolving and shifting.
A woollen yarn is contrast hand spun from a role where the fibers aren’t as strictly aligned to
the yarn created. The woollen yarn captures much more air and makes for a soften to
convene and generally bulkier yarn. A spinner will spin using varying techniques for
handcrafted and roles based yarn and thus make a semi-worsted yarn. Woollen can be dyed at
any time, but is often dyed before carding due.
HISTORY OF TEXTILE IN INDIA
Cotton mill first attempt by bowery cotton mills near Kolkata by English enterprises
1st mill as established by C.N. DAVER in1854, Mumbai. Textile is the second largest
industry in India after agriculture industry.
TEXTILE INDUSTRY IN NATIONAL SCENARIO
The industrial growth of the country was piloted by textile industry even before
independence and occupied a very unique position by its contribution to the national product,
export and final consumption expenditure. Cotton played a dominant role in the growth of
the industry in the country. The major cotton producing states are Punjab, Haryana, Gujarat,
Maharashtra, Rajasthan, and Andhra Pradesh. Through India has the largest cotton hector age
in the world around 9million hectors, the production in the country is hardly 20% of the
world production. The textile sector is major contribution to the foreign exchange earning of
the country for 35% of the total export. There are 1767 textile mill in the country of which
192 are in public sector, 151 in co-operative sector and 1424 in private sector.
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THE KERALA SCENARIO
The size of the textile industry in Kerala is rather small compared to the rest of the
country. It comprises 30 textile mills. The textile industry in Kerala comprises of handloom,
power loom and mill sector. Handloom is one of the major traditional industries in the state.
40 Power loom in co-operative sector and 170 in private sector together it’s constitutes. 10%
of the total employment in the industrial sector. Total spindlege as follows, Central sector-
130208, State sector-109174.
MAJOR PROBLEMS IN INDUSTRY.
1. Cotton export and prices.
2. Decline in cotton yarn export.
3. Lack of modernization.
4. Non availability of credit.
5. Increase in cost of production.
6. Low productivity.
7. Power problem.
GENERAL CONDITION OF TEXTILE MILL.
The public sector units in textile sector where mainly engaged in the activities of yarn
manufacturing. The 9 units including the four companies owned by employee around 5979
personnel and accounts for 10% of total employment in enterprise in under industries
department.
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Raw material
Bale Board
Mill
Spinning mills Composite Mills
Yarn
Knitting
Knitted Cloth
Market
Consumers
ALLEPPY CO-OPERATIVE SPINNING MILL
Process flow chart of textile industry.
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Handloom Power loom
ALLEPPY CO-OPERATIVE SPINNING MILL
HISTORY OF COTTON
Prior to the manufacturing process being mechanized textile where produced in
the home and excess sold for extra money. Most cloth was made from wool. Cotton or flax,
depending on the era and location.
During the late medieval period, cotton become known as an imported fiber in
northern Europe, without any knowledge of what is come from other than that was a plan.
Nothing it’s similarities to wool, people in the region could only imagine that cotton must be
produced by plant born sheep.
John Mandeville, writing in 1350, started as fact that the now preposterous belief.
“There grew there (India) a wonderful tree which hooraying lambs on the ends of its
branches. These branches were so pliable that they bent down to allow the lambs to feed
when they are hungry”.
“Tree wool” by the end of 16th century, cotton was cultivated throughout the
warmer regions in Asia and America. In Roman Times, wool and leather clothed the
European populations, the cotton of India was curiosity that only naturalized had heard of,
and silk, imported along the Silk Road from china, was an extra-vagant luxury. The use of
flax in the manufacturing of cloth in northern Europe dates back to Neolithic Times. Cloth
was produced in the home and the excess woolen cloth was sold to merchant called clothiers
who visited the village with their trains of pack horses. Some of the cloth was made into
clothes for people living in same area and a large amount of cloth was exported.
The process of machining cloth depends slights on the fiber being used, but there
are three main steps: Preparation of fibers for spinning and weaving or knitting. The
preparation of the fiber differs the most depending on the fibers used flex requires ratings and
dressing, while wool requires carding and washing. The spinning and weaving process are
very similar between fibers through spinning is the process of creating yarn or thread, rope,
cable from various rope fiber material, yarn can be made from a wide variety of materials.
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They are;
Plant fibers-Cotton, flax, bamboo, coconut husk, soy.
Animal fibers-Wool, goat, rabbit, dog, camel, yack and silk.
Artificial fibers-Nylon, rayon, polyester, tinsel.
Spinning involved from twisting the fibers by hand, to use of a
drop spindle to a spinning wheel spindles or parts of them have been found in very old
archaeological sites they may present one of the earliest pieces of technology available to
humankind was invented in India between 500 and 100 AD. It reached Europe via the Middle
East in the European middle ages.
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CHAPTER -3
COMPANY PROFILE
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COMPANY PROFILE
The textile industry is divided in to four sectors .They are National Textile
Corporation (NTC), Kerala State Textile Corporation (KSTC), Kerala State co-
operative Textile Federation Limited (TEXFED) and private sector.
TEXFED was established during 1992 with the objective to plan, advice, &co-
ordinate, assist, monitor, supervise, setup manage and to facilitate the working of the
organization. ACSM is under TEXFED. Spinning mills under the membership of
(TEXFORD) are;
a. Malabar co-operative textiles kuttipuram
b. Priyadharshini Co-operative Spinning Mills, Meenadom, Kottayam.
c. Mala Co-operative Spinning Mill ,Trissur
d. Kannannore Co-operative Spinning Mills ,Kannur
e. Malappuram Co-operative Spinning mills,Mallappuram
f. Trissur CO-operative Spinning Mills ,Vazhani,Trissur
g. Quilon CO- operative Spinning Mills ,Chathannur ,Quilon
h. Alleppy Co-operative Spinning Mill ,Kayamkulam
Alleppy Cooperative Spinning Mill registered on 21-07-1981 by number DI/7934/81
was commissioned on 30-10-1999 with a capacity of 6000 spindles. The Govt. acquired
7.9 hectors i.e., 19.5 acres of land in pathiyoor village, Kareelakulangara, Kayamkulam in
Alleppy District with an estimated value of 26.9 lakhs.
This Mill was set up by the All India Federation OF Cooperative spinning Mills Ltd,
Mumbai. The total estimated cost requirement for the mill was 1136.00 lakhs as per the
SITRA standard. The initial membership of the society was 34 members and registered
under Kerala Cooperative sector and registered under Kerala Co-operative Societies Act
1969.
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When the Alleppy Co-operative Spinning Mill started functioning there
were seven spinning machines. The capacity of the machines is 864 spindles
which make up a total of 6048 spindle. The company had a debt of about six core
in the Alappuzha district Co-operative bank, in order to clear this debt the
company had sold its 10 acres of land . The money they got after clearing the
debt was used for expansion purpose. From 15 Dec 2010 ACSM has 13 spinning
machines which make up a total of 12000 spindles. The master plan of this firm is
to increase the number spindles to25000 and ACMS started. With the help of
Kerala grand ACMS started a project called hank yarn project for hand loom. The
Kerala State Industrial Reconstruction and Internal Audit Board (RIAB) have
selected ACSM as model in 2010.
Objectives of the company
The object of the Mills is to carry on the business of cotton &staple fiber spinning.
For the purpose of attaining the aforesaid object it shall be completed for the Mill.
1. To purchase, take on lease or acquire any property & to construct
erect, maintain or other woks necessary for the purpose of Mills.
2. To purchase or acquire and deal in cotton &other raw materials
The production process of Yarn yields wide verities of wastes which can be used for
Noil used as yarn by allowing it to re processing process
Hard waste used for workshops
Flat strips used for surgical cotton
Peneumafiles can be used again by allowing in reprocessing process
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DEPARTMENT OPERATIVE EMPLOYEE
1) Electrical
2) Watch & word
3) Attender, office boy, peon mill
4) Store keeper mill
5) Canteen
1) Per 1000 spindle per shift
2) Per 1000 employees
3) Depends on the size of the
4) Depends on the size of the
5) Depends on the size of the
VISSION & MISSION
Vision is to produce the highest quality of fine and super fine yarn in the world. And also provide the
beast customer service in the industry.
Vision towards public: Ginning of cotton gives cattle field to the market, spinning of yarn from
cotton is exported to domestic markets.
Vision towards quality: It is the policy to provide quality cotton yarn in a competitive rate to
ensure customer satisfaction
Vision towards employees: Provision of continuous employment and welfare to the employees
attached with ACSM.
ACSM is continued to operate a successful business by developing, manufacturing, marketing, and
supporting quality yarn products for the world textile industry. It can be achieved by;
Developing long- term relationship with customers and suppliers.
Providing superior quality products at competitive prices.
Exceeding industry standards with exceptional customer and technical service.
Maintaining competitive position through leading edge technology.
Providing a safe, fulfilling and recording work environment for the employees
Serving supporting the communities which they operate.
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The company works on all days in the week except on Sundays. The Company works for 24 hours in
shifts and a general shift. The time of the three shifts and general shifts will be as follows:
WORK SHIFT TIME
General Shift 9:00 AM- 5:00 PM
First 7:00 AM – 3:00 PM
Second 3:00 PM - 11:00 PM
Third 11:00 PM – 7:00 AM
Out of 12 days of casual leave women are allowed to take leave for two days in a week. And in case of
men they are allowed to take only one
Day leave in a week. Both of them are given separate rest rooms and
Canteen facilities provided in the mill itself with a cheap rate. Other
Benefits provided by the company are provident fund, ESI and night
allowances.
Co-operative governance
The board of directors periodically reviews the company’s strategic decision. Business plans and
targets are set by the Chief executive and reviewed by the board. The board is committed to
Maintain a high standard of co operative governance. The board has reviewed the code of co operative
governance and confirms that: -
* Financial statements, prepared by the management of the company present fairly state of affairs, the
result of its operations, cash flows, and changes in equity.
* The company can maintained books of accounts
* Appropriate accounting policies have been consistently applied in preparation of financial statements
and accounting estimates are based on reasonable and prudent judgment
* The system of internal control, which was in place, is being continuously
reviewed by the internal audit and other such procedures
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* All the liabilities in regard to payment on account of taxes,duties,levies and charges have been fully
provided and will be pair in due course of where claim was not acknowledged as debt the same is
disclosed as Contingent liabilities in the note to the accounts.
* The board in complaints to the code of co- operate governance has Established an audit committee
and the following directors are its Members
# General Manager
# Finance Manager
# HR Manager
* The company operates an un -funded gratuity scheme for its employees’ and provision has been made
in the accounts accordingly
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CHAPTER -4
PRODUCT PROFILE
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PRODUCT PROFILE
Raw materials being used are cotton taken from the flower and processed to convert it in
to Yarn. Raw materials are purchased from Andra Pradesh, Tamilnadu, and, Maharashtra. The
quality of raw materials and those of Yarn is based up on SITRA standard .The mill follows
centralized purchase strategy. The raw materials are collected in the form of bale.
The Yarn produced in ACSM is marketed through Dippo marketing with the help of
agents in Mumbai. They are Ramaninkal Nndalal brothers and Sathyam Enterprise, other than
this group The Kerala state Handloom Development Co-operation (HANDWEAVE), National
Handloom co-operation ,Kerala state weavers co-operative society(HANTEX)buys the yarn at
subsidy rate and distributes it to the customers. The mill also do direct sale to affirm called
salvias.
In ACSM the functional norms and rules are expressed/ stated by the south Indian Textile
Department Research Association, Coimbatore being followed in the mill.
In ACSM yarn is produced from the cotton which is extracted from the flowers of cotton
which are purchased from various parts of our nation. A single fibred of cotton should have the
length of minimum 30mm.other short length cotton fibers are waste which are selling to other
mills on quotation basis (6 months or 1 year) for manufacture less quality yarn .This provides
mainly types of Yarn. They are.
4.1 CARDED YARN
Carding removes tangles in fibers but does not fully align the fibers so they are all the
going in exactly the same direction. Most may be going in one direction but there will always be
some going off in their own direction.
More compact , smoother yarn can produced if the fiber is spun with most of its fibers going in
one direction of spinning.(i.e., toward the spinning wheel).If it is spun with most of its fibers
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perpendicular to the spin , it will produce fluffier ,airier yarn . In ACSM, Carded yarn has the
quality count as 62’s. It has less cleaning &strengthening methods compared to Combed Yarn.
4.2 COMBED YARN
Combing is much more labor intensive. Fine toothed combs are used to straighten and
align each individual fiber is being spun. Combed yarn has the quality count as 60’s, which has
high quality compared with carded yarn. It is more regular and expensive than carded yarn.
When cotton or another fabric is “combed”, the shortest, additional fibers of a batch are
removed. The result produces high-quality, extra soft yarns with excellent strength and softness.
4.3 HANK YARN
In the textile industry, a hank refers to a unit of yarn or twine that is in a coiled form.
This is often the best form for use with hand looms, compared to the cone from needed for power
looms. Hanks come in a fixed length depending on the type of material, so the term is sometimes
used as a measure. For instance, a hank of listen is 270 meters, and a hank of cotton or silk is 768
meters.
The quality is based on some standards laid down by SITRA (South Indian Trade
Research Association) .Both carded and combed yarn is tested these standards. Carded yarn has
the quality count as 62’s and Combed yarn has the quality as 60’s possess the highest demand in
the market. The product of ACSM is marketed through Dippo marketing with the help of agents
in Mumbai.
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CHAPTER -5
ORGANIZATIONAL STRUCTURE
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Chairman
Board of Directors
Administrative Manager
General Manager
Mill Manager
Production Manager
Spinning Master
Assistant Manager
Supervisor
Employees
Marketing Manager
Assistant Manager
Dealer
Agents
Customer
Finance Manager
Accountant
Cashier
Personal Manager
Assistant
Store keeper
ALLEPPY CO-OPERATIVE SPINNING MILL
ORGANIZATION CHART
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CHAPTER -6
DEPARTMENT STUDY
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DEPARTMENT STUDY
Organization is a roof under with group of people join together as a team towards common
objectives. This is achieved when there is an organized effort from all concerned. The organizational
objectives are the desired state of affairs which an attempts to realize.
Realization of objectives is sought through the coordinated efforts of the people and resources
which constitute an organization. Resources include money, machine, materials, and people. Essence of
management is the integration of various organizational departments.
In every organization there are mainly four departments which co-ordinate the work and
maintain a god relation with the superior and subordinate. In ACSM, the functions of management are
divided in to five departments.
1 Personnel Department
2 Production Department
3 Finance Department
4 Marketing Department
5 Quality Control Department
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PERSONNEL MANAGER
ASSISTANT PERSONNELMANAGER
TIME KEEPER
OFFICE ATTENDER
ALLEPPY CO-OPERATIVE SPINNING MILL
6.1 PERSONNEL DEPARTMENT
HR PLANNING ATTENDENCE
HIRING LEGAL
GRIEVANCE CANTEEN
COMPENSATION MEDICAL
APPRAISAL WAGE& SALARY
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Personnel department is the key department of every organization because successful functioning
of an organization is mainly due to the proper behavioral pattern of personnel’s in organization. The
main function of this department is to guide human resource to attain the organizational goal with a high
degree of morale and enthusiasm.
The personnel department of ACSM is mainly concerned with problems regarding the
development of staff and labor force of the organization. The personnel department is concerned
with the procurement, development, compensation, integration and maintenance of the personnel for the
purpose of the accomplishment of the ACSM’s major roles and objectives. The personnel details of the
employees are collected and stored in this department
RECRUITMENT, SELECTION AND PLACEMENT
Recruitment stands for generating a pool of applicants for a job. The success and failure of an
organization depends to a great extent upon this as to how much efficient, experienced and capable
employees are procured and recruited.
Selection is the process of choosing the right candidates for the job and it is essentially a
process of comparing skills, capabilities ,attitudes etc. of prospective employees with that of the
standards stipulated by the job analysis .
Induction is concerned with the problem of introducing or orienting the new employee to the
organization.
In ACSM the workers are selected through advertisement. The vacancies are published in the
papers. Selection based on the level of skill, qualification, intelligence, values etc
TRAINING AND DEVELOPMENT
Training is the systematic program of the organization which aims at increasing the aptitudes,
skills and abilities of the workers to perform specific jobs. It is not the act of increasing the
knowledge skills of an employee for doing a job it is also concerned with the purpose of
introducing an employee towards the rules and norms of the organization.
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In ACSM the training program is given to their personnel to
Make them aware of standards of performance.
To meet the needs of the emerging situations such as damage in any of the machines.
To make further development in their ISO 9000series of standards.
Training programs in alleppy Cooperative spinning mill Ltd, implement this in three levels.
They are.
Plant level operations
middle level operations
Higher level operations
PROMOTION
In ACSM, the scope of both promotion and transfer is low .In case of promotion; it is based on
qualification, seniority and vacancy. It is also based on the rules of the approved promotion polices.
ACSM doesn’t have any independent transfer policy as part of its HR procedures.
In Alleppy Co-operative spinning mill Ltd, the employees are mainly posted as trainees of the
mil for carrying out various productions related activities. After completing certain period they are
promoted to the next grade based upon certain rules and norms for promoting any employee from
the present level to the next level.
The declaration came in to effect from 1Dec 2001 and followed in the mill to promote the newly
appointed as well as previously employed for this follows.
Trainees should have at least 60% attendance in total to the working days, otherwise the
trainees are not allowed to work thereafter.
Paid trainees should be able to do the work load of the permanent worker after six months in
range of 50-75% and must have attendance percentage of 90% of the total working days
then he/she will considered for the next grade.
After second six months of training the paid trainees shall be able to do 75-100% of the
workload of permanent worker and he should have attendance above90% of the total
working days then only he/she will be considered for the next grade.
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After second six months of training the paid trainees shall be able to do 75-100% of the
workload permanent worker and he should have attendance above 90% of the total working
days then only he/she will be considered for higher grades.
After the third level of training the paid trainees would be able to handle three different
machines and he/she must be able to do 75-100%of the workload of permanent worker and
he should have attendance above 90% of the total working days then only he/she will be
considered for higher grades.
After fourth level of training the trainee will be given training to carry on the full workload of
a permanent employee and if he/she is able to do the work Without much strain and he/she
has developed in such a manner that he/she is maintaining his/her attendance above 90%
then they considered to higher grade.
Even through all the above conditions are satisfied, but he/she is not physically fit to carry out
the workload given then they will not be considered for the higher grade.
If there is any reasonable cause for the absence of trainee from the work then he/she will be
allowed to work in the same grade and then he/she will be exposed to same rules and
regulations which regulate the promotion system exist in the mill.
EMPLOYEE STRUCTURE
Employees are categorized in to:-
Employees under staff regulation.
Employees understanding order.
Total number of employees – 250
Permanent employees -92
Workers category- 79(comes under standing order)
Officers -13(comes under staff regulation)
Temporary Employees
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WELFARE MEASURES
Personnel department in ACSM gives importance in providing Welfare measures to their
personnel. Welfare measures include both statutory and non-statutory.
Welfare measures include Provident fund, Gratuity, ESI, Bonus and Dearness Allowances,
Leave with wages, Family Fund, Overtime Allowances and Night Allowances. These are mainly
given in the form statutory and non-statutory measures.
WAGE AND SALSRY STRUCTURE
WAGE
The employees in the production unit are employed basically as trainees The Wages given to
them are administrated.
For newly appointed Rs.75/day
Below 2 Years Rs 110/day
Below 3Years Rs 130/day
Below 4 Years Rs 150/day
SALARY
Salary administration in ACSM is done on a grade basis. Salary structure comprises of basic
pay, DA HRA, Salary for the office staff is according to the scale of pay, i.e., Salary for the
office staff is according to the scale of pay, i.e., Salary for the office staff is according to the
scale of pay, i.e., BASIC+DA=HRA. Industrial DA is 5700 which is paid on a monthly basis.
ACSM follows salary in payment of wages as per long term agreements.
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WAGES D.A HRA LTC STIPEND
TRAINEES NIL NIL NIL NIL YES
PERMANENT
WORKERS
YES YES YES YES NIL
BONUS
All employees who are considered eligible as per the bonus act will get a bonus of 8.33% (min).
EMPLOYEE STATE INSURANCE (ESI)
It is the social welfare act enacted to give worker and his family medical treatment at the
time of illness. 1.75% of worker total salary is deducted towards ESI. The employer contributes
4.75% of worker’s wages towards this scheme. Worker whose salary is less than Rs25/- per day
need not contribute 4.75% . If he contributes for a period of 6 months , he is eligible for benefit
in the corresponding months . Maximum benefits and employee can is ‘91’days. If the worker is
a deserving candidate he will be given 306 days benefit.
PROVIDET FUND
Both the employer and the employee contribute to P.F. at the rate of 12% of their earnings
per month. It includes administration charges ‘linked insurance charges and charges for family
pension.
LABOUR WELFARE FUND
Currently labor welfare fund is not present in ACSM but, initiatives are taken to make it a
reality.
LEAVE
There will be 12 days casual leave for a worker every year.
31 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
ACCIDENT BENEFIT
If the employees are covered under ESI schemes meet with any sort of accident on duty,
he/she will get the claim amount from the ESI contribution made by them and as from the mill.
VOULENTARY RETIREMENT
During voluntary retirement the employees is confined to get a sum of money from the
gratuity and an equivalent amount from the organization.
FESTIVAL ADVANCE
Permanent workers will get certain sum amount based up on the salary which he gets
normally as festival advance . This amount is recovered from the salary after the payment of
advance in equal five installments.
HEALTH AND SAFETY
In every organization for efficient working process requires the sound health of the persons
engaged there in. Unless the workers are physically and mentally healthy they cannot perform
their duties effectively. The environment of the factory where workers are working must be clean
and free from infection, insanitation, and dust fumes artificial humidification, overcrowding and
other conditions injurious to the health of the workers.
In ACSM the safety officer’s functions are carried out mainly by the assistant manager in the
personnel department. The provision regarding these aspects is followed to the best in order to
maintain both mental and heath conditions of the worker in the mil. They are as follows:
CLEALINESS
With respect to this the following measures are taken in to consideration:
Accumulation of the dirt and refuse are removed daily from the floors of the work rooms
and passengers.
The floor of the work room is cleaned in every week using disinfectant.
Machines are cleaned in every week.
32 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
DISPOSAL OF WASTES AND EFFLUENT
Effective arrangements are made in the mill for the treatment of wastes and effluent arising
after the spinning process of cotton as approved under the prescribed rules.
OVER CROWDING
In order to prevent overcrowding the following measures are adopted in the mill every
worker is separated from each other in every section of the production unit with at least 14.2
cubic meters. After considering this aspect in the workers are given instructions about the
maximum number of workers to be accommodated in each section.
LIGHTING
Every part of the mill is provided with sufficient light and also effective measures are taken
to avoid the formation of glare and the formation of shadows which will cause eye strain.
LATRINES AND URINALS
Sufficient facilities are provided to both workers with sufficient lighting and ventilation is
provided in the mill. Adequate number of sweepers is maintained in the mil for cleaning the
latrines urinals daily
DRINKING WATER
In the mill effective arrangement are made for the purpose of drinking such as
Water facilities are provided at convenient place which will be easily accessible to everyone.
CANTEEN
The canteen service rendered by ACSM is run by the company directly to provide quality
service to the employees. The canteen cost of all the employees are deducted from their salary.
Food is provided free of cost the in the night shift. The subsidy system is utilized by 45%
contribution from the employee.
33 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
SEURITY SERVICE
The security service by the ACSM is under contract from omega security services. The
security personnel are hired from a private company. There are two securities during day time
and during night.
TRADE UNION
Trade union is basically an association of workers in and more professions. It is an
association carried on mainly for the purpose of protecting and advancing the members
economic interest in connection with their daily work.
Profit maximization by exploiting labor resulted in the formation of trade unions to make the management aware of their of their responsibilities towards the most important resources of the organization. Thus Trade unions are formed to protect the interest of the employees.
Trade union is basically an association of workers in one/more professions. It is an association carried on mainly for the purpose of protecting and advancing the members economic interest in connection with their daily work.
In ACSM there are mainly two main groups of trade unions.
Indian National Trade Union congress (INTUC) Centre of Indian Trade unions(CITU)
PUNCHING SYSTEM
In ACSM the regular attendance of the staff and the workers is done through punching
machine. There are three shifts for the workers.
First shift – 7:00 AM to 3:00 PM
Second shift- 3:00 PM to 11:00 PM
Third shift- 11: PM to 7:00 AM
For the office staff, timing is from is 9:00 AM to 5:00 PM.
Every day each employee works for eight hours in which 30 minutes is considered as break.
34 ORGANIZATIONAL STUDY
PRODUCTION MANAGER
SPINNING MASTER
ASSISTANT PRODUCTION
MANAGER
ASSISTANT MAINTENANCE
MANAGER
SUPERVISOR
WORKERS
ALLEPPY CO-OPERATIVE SPINNING MILL
6.2 PRODUCTION DEPARTMENT
STRUCTURE OF PRODUCTION DEPARTMENT IN ACSM
35 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
In every organization production department is concerned with the activities related to the
production process carried on by the organization. Production process includes the process of
converting raw materials &other inputs in to usable out puts. i.e., as final finished product which
in return produces profit for the organization? .
Functions involved
Fixation of the standard upon which yarn must be produced, ie. It is usually represented
as Hank.
Operation of purchase and storage of materials.
Planning and controlling the operations.
Inventory and qualitative control.
In ACSM the yarn is produced from the cotton which is extracted from flowers of cotton
which are produced from various part of our nation. The production process includes the process
of converting raw materials and other usable and stable outputs as final finished product which in
return produces profit for the organization.
Yarn is made up of a number of plies, each ply being a single spun yarn. These single plies
of yarn are twisted in the opposite direction (plied) together to make a thicker yarn. Depending
on the direction of this final twist, the yarn will be known as S-twist or Z- twist. For a single ply,
the final twist is same as its original twist.
Two main type of yarn are; 1) Filament Yarn 2) Texturised Yarn
Production process of yarn is carried out by using various types of machines. Each process is
considered and carried out as separate units or sections. They are;
1. Blow Room
2. Carding Units
3. Comber
4. Simplex
5. Ring Frame
6. Cone Winding
7. Packing Unit
36 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
Each unit consists of wide variety of machines which are placed in this mill based upon the
sequence in which the process progress in producing yarn from varieties of cotton. In this mill
layout being followed for production process is process layout.
Process layout means the alignment of similar machines and equipment which performs similar
function is placed in plant locations which are linked to other machines for completing the cycle
of production.
RAW MATERIALS OF ASCM
The Cotton required for the Alleppy co-operative spinning mill LTD mainly come from
Tamil Nadu and Andhra Pradesh cotton is the main raw material which is purchased by Kerala
state textile cooperation on behalf of the mill.
Raw material which reaches the mill in bundle from and it is carried bale. When the load
reaches the mill, authorities check, take samples from selected bundle and sent it to the head
office KSTC for testing to ensure the quality. The mill sent every day stock statement of cotton
to KSTC.
WASTE
Production process of yarn yield wide variety of waste which can be used for,
1. Noil used as yarn by allowing it to reprocessing process.
2. Hand waste used for workshops.
3. Flat strips used for surgical cotton.
4. Pnenumafils can be used again by allowing in reprocessing process
YARN
Yarn consists of strands of materials twisted together. Each strand is made up of fibers all
shorter than the piece of yarn.
A fairy high degree of twist produce strong yarn a low degree of twist produce softer, more,
custrious yarn and a very tight twist produces crape yarn. Yarn are classified any their number of
parts. A single yarn is made from a group of filament fibers twisted together.
37 ORGANIZATIONAL STUDY
Mixing & Blending
Blow Room
Combed Yarn
CARDING
Silver Lap Drawing
Ribbon lap Lap Former
Combing
Drawing 1
Drawing 2
Simplex
Spinning
Double
Market
Winding
Packing
Reeling
Bundling
Barling
ALLEPPY CO-OPERATIVE SPINNING MILL
PROCESS FLOW CHART
38 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
PRODUCTION PROCESS
The main production process flow chart is shown in the figure the raw material used in
cotton. It is processed through various sections and final product is cones of different sizes.
(Generally 40’s 50’s). The production process takes place the following section.
MIXING
Cotton of different varieties is mixed together in a certain ratio according to its quality. The
mixed cotton for processing contains the desired quality in required ratio. The mixed cotton is
kept without disturbance for a maximum period of 24 hours for conditioning.
While mixing the following things should be kept in mind
Micronaire range as well as average of the cotton bales used should be same for all the
mixing of a lot.
Range as well as average color of the cotton bales used should be same for all the mixing
of a lot.
Range as well as average maturity coefficient of the cotton bales used should be same for
all the mixing of a lot.
BLOW ROOM
Blow room separates heavy foreign mattes like cotton seeds, leaf particles etc. by beating
and blowing. The mixed cotton is fed in the lattice of first machinery manually. The blow room
consists of 5 machines considered as the beating points connected each other pipelines. The
cotton beats up with spikes and lags thus the impurities are separated out of cotton. The cleaned
opened cotton pusses to the next department through chute.
CARDING SECTION
Carding machine cards cotton and clean it further with the help of rotating sharp wire points
and thus removes the hooks and wastes remaining in the cotton. The cleaned cotton condenses
and passes out through trumpet. The product is called sliver.
SLIVER LAP
39 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
This machine is considered as the preparatory machine of comber. Silver from the card is fed
by giving 16 doubling is called Sliver Lap.
RIBBON LAP
Lap from the sliver lap is fed here and produces Ribbon Lap ,6 ends doubling is giving here.
COMBER
Thus machine removes short fibers from cotton y combing action with help of unicombs and
top combs. Combed sliver is the final product . The wastes extracted from comber, called noils
are a saleable product.
DRAW FRAME
The main function of this department is to parallelize the sliver and makes it even by drafting.
The card sliver lacks on regulating the fibers are also in a crisis condition.
SIMPLEX (SPEED FRAME)
This machine consists of 120 spindles and each spindle is a point of production. Sliver from,
120 cans fed to 1230 spindles respectively and by giving certain draft the silver is drafted to
some length. The sliver is passed through the drafting zone 12 to 13 times. Certain amount of
twist is imported on the body of drafted material, which is called ROVE EACH full bobbin of
40’s combs normally weight 1.25kg.
SPINNING (RING FRAME)
In the spinning department bobbins that are brought from the simplex department are reeled
on the ring frame reel and the Rove is drawn through the drafting zone. The main object of
spinning is drafting , twisting and winding . Rove is drafted to a thinner form of yarn. It is
drafted to 20 to 27 according to be spun.
CONE WINDING
The yarn cops carried to the winding department to produce yarn cone. In the cone
department all types of defects in yarn is rectified and also yarn on cone will be defect free. Yarn
from the cops is wound to bare paper cone .The standared weight of full cone is 1.25 kg . A
40 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
winder has to look after 15-30 runs according to cone of 1.25 kg is removed and collected by the
winder and then it is stacked in the bins count wise in the packing department.
CONE PACKING
In this department the final product of yarn on cones are packed in polythene bags. One such
bag contains 40 cones and the Net weight of 1 bag is 50 kg. They put necessary details like
count, gross weight, month and year of packing, bag numbers in lot numbers .Then these bags
are ready for dispatch to the market or depots.
41 ORGANIZATIONAL STUDY
FINANCE MANAGER
SENIOR ACCOUNTANT
JUNIOR ACCOUNTANT
CASHIER
CLERCK
PEON
ALLEPPY CO-OPERATIVE SPINNING MILL
6.3 FINANCE DEPARTMENT
STRUCTURE OF FINANCE DEPARTMENT
42 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
Finance may be defined as the provision as the money at the time is wanted. Finance is
regarded as the life of the blood of an organization. In current economy, finance is one of the
basic foundations of every kind of economic activity which is concerned with the planning and
controlling of the firm’s financial resources.
Finance department is headed by finance manager assisted by Senior Officer, and cashier.
The department is fully computerized and hence manpower is limited since all receipts and
payments are computerized. All the purchasing/quotation works are handled through online as
result of distance the financial transactions in ACSM are carried out with the help of computers.
The records maintained in the department include
Journal, LEDGER AND SUB LEDGER
Cash Book
Profit and Los Account
Balance Sheet
All the planning and controlling of firms financial resources are carried out by the finance
manager. The responsibilities of Financial Manager include.
Arrangements of funds from financial institutions
Managing funds raising program
Arrangements of funds through financial instruments such shares, debentures, bond etc.
The manager deals with the supervision and control of finance clerk deals with the sales
account and cash book and the laisoming officer is the cashier. Sum total the function performed
by finance departments in ACSM are
Preparation of balance sheet and cost sheet
Verification of vouchers bills etc
Preparation of budget and its analysis.
Budgetary control
Verification of cash balances
Passing all payment bills
43 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
Preparation of various books and records
Preparation of bank vouchers and books
Maintenance of sales ledger and stores ledger
Maintenance of all subsidiary books like cash book, debtors’ book and sales ledger
STATUTORY ACTIVITIES
1. Contract payments and income tax payments.
2. Sales tax and vat collection and remission
3. Employee state insurance(ESI)
4. Income tax filling of queerly income tax return.
STORES
The stores department is under the control of finance department. The store is maintained by
the store keeper. In stores the employee will maintain frequents stock records and they will
inform to the finance department about the present inventory level and also the information will
be passed to the respective departments.
ACSM makes purchase through local purchase. In local purchase, the concerned officer in
charge sends enquiries to the different suppliers and invites a quotation. After that they will be
short listed and purchase order will be send to the supplier who had place the lowest price.
Stores department had provided separate go downs for both raw materials and finished goods.
Based on the need, material is purchased. Goods receiving wing receives the goods at the site
and verifies the same copy with the copy of purchase orders. If the goods received are as per the
description or purchase order. The stores department prepares the note called gods received note
and sends the same to stores department along with the materials.
44 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
There is another receipt called the Stores Receipt Note (SRN) .This document is prepared
after the materials received are as per the order. The stores department prepares two copies of
SRN, the stores department retains one and the other is send to the finance department for
making payment to the suppliers. Once SRN is raised and materials are accepted the next step of
stores department is to take them to respective storage areas and they are issued to the
production department as and when the requisition is made by the later.
LIST OF ITEMS MAINTAINED IN THE STORES
PACKING MATERIALS
WOVEN SACKS
POLYTHENE COVER
BUNDLE LABEL
CORD LABEL
SUTHALI
PAPER CONE
CAP WITH SCREW
ENGINEERING GOODS
ELECTRICAL MACHINERY SPARE PARTS
MECHANICAL MACHINERY SPARE PARTS
LIST OF BOOKS MAINTAINED IN THE STORES
STORES LEDGER
STORES REGISTER
BILLS WITH CONCERNED GOODS RECEIVED NOTE
FUNCTIONS OF STORES
1. MAKE PROPER ARRANGEMENTS TO RETAIN THE GOODS IN PERFECT
CONDITION TILL THEY ARE NEEDED BY ANY OF THE USER SECTION.
2. MAINTAIN MONTHLY UPDATED STOCK LEDGER
45 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
3. BRINGING TO NOTICE THE LOWER AMOUNT OF STOCK OF ANY KIND IN
STORES
46 ORGANIZATIONAL STUDY
OPENING STOCK
INWARD/ GOODS RECEIPT
NOTE
ISSUES/INDENTS
LEDGER LEDGER
MAINTAINING CLOSING STOCK ON WEIGHTED
AVERAGE METHOD
INTERNAL VOUCHER FOR
ISSUES
INTERNAL VOUCHER FOR
ISSUES
PROFIT AND LOSS ACCOUNT
ALLEPPY CO-OPERATIVE SPINNING MILL
DIAGRAMATIC REPRESENTATION OF DEPARTMENT FUNCTION
47 ORGANIZATIONAL STUDY
MARKETINGMANAGER
ASSIATANT MANAGER
DEALERS
AGENTS
CUSTOMERS
ALLEPPY CO-OPERATIVE SPINNING MILL
6.4 MARKETING DEPARTMENT
STRACTURE OF MARKETING DEPARTMENT
The target market of ACSM is the Mumbai market from there these products are
purchased by business concentrated on textile sectors. In order to avoid the ware housing and
storage in Mumbai these products are transferred to agents present in Mumbai that is ACSM
products are marketed through “Depot marketing”.
Depot marketing means the agents act as intermediaries. ACSM provides 1.5% of
commission to these agents .they sell the yarn o0n the basis of the present market value. the
agent purchases yarn from the mill and provides this yarn to the concerned parties. the payment
is made only after the selling procedure is complete
ACSM has 2 agents in Mumbai .they are Ramalingalkaland Nandalal brothers and
sathyam enterprise. ACSM market their product to certain parts of Kerala like kottayam,
Ernakulum and alleppy.
The cotton purchased from various state of India such as Punjab, Maharashtra etc. it is
mainly done by inviting quotation through online. The main products of ACSM are carded yarn,
48 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
combed yarn and hank yarn .among the combed yarn possesses the highest demand in the
market.
MARKETTING RESEARCH
A research about the marketing opportunity of the product of ACSM inside Kerala is not
worth because the firm is marketing its products mainly outside Kerala and that to through depot
marketing. But research is being done under the supervision of SITRA in various parts of north
India mainly in the markets of Punjab, Karnataka and tamilnadu. These led to the conclusion that
cotton mills in Kerala, has to market standardized machineries for facing competition from other
states.
MARKETING INFORMATION SYSTEM
Agents placed outside our state are the main source of marketing information for ACMS.
Since no marginal retail price can be fixed on the fiber yarn produced in ACSM , the changes in
the market price and the condition are known in advance to the firm by the agents . Other than
these marketing opportunities for the products in ACSM.
PRICING STRATEGY
One of the most important factors relating to fiber yarn is that no fixed marginal retail
price(MRP ) can be printed on the fiber yarn. Thus the firm is forced to sell the product at the
market price of the fiber yarn. Having known the changes that can happen in the market well in
advance, the firm is able to stock raw materials to be used in favorable conditions and thus
maintains the profit.
49 ORGANIZATIONAL STUDY
SPINING MASTER
ASSISTANT SPINNIG MASTER
DEPARTMENT TECHNICIAN
TESTING LAB
SUPERVISORS
ALLEPPY CO-OPERATIVE SPINNING MILL
6.5 QUALITY CONTROL DEPARTMENT
STRACTURE OF QUALITY CONTROL DEPARTMENT
QUALITY MANAGEMENT
Quality management is the watch word in modern industry as it affects the user need as
well as profitability. To help efficient functioning of quality control, the method and procedure
that need to be adopted have been well formulated and systemized for long.
In ACSM, the quality management is carried out with the help of SITRA Coimbatore.
The ultimate quality yarn is based on the raw material ie, quality of cotton used. The quality of
cotton purchased is given to the Central Testing Centre Trivandrum
50 ORGANIZATIONAL STUDY
ASSISTANT SPINNING MASTER
TESTING LAB
DEPARTMENT TECHNICIAN
SUPERVISORS
SPINNINGMASTER
ALLEPPY CO-OPERATIVE SPINNING MILL
The basic problem in ACSM is the manufacture of a standard product from an
essentially nonstandard and highly variable raw material. The quality of yarn should conform to
certain accepted norms depending on the end use . It is equally important that this is achieved at
the minimum cost possible. Norms and standards for quality are fixed by the mill for quality is
fixed by the mill for all the raw material.
In order to have effective quality control there should be an officer exclusively in charge
of quality control. Here in ACSM spinning master who looks after this aspects along with him
there are two laboratory testing assistant and for data collecting from various departments.
The communication pattern followed in ACSM with regard to control is as follows:-
Quality management is the act of screening the defective before they reach the customer. Quality
control is done as a cycle taking place in the production department. Scientific sampling , design of
experiments, the analysis, the presentation and interpretation of data through statistical techniques all
these creates the cycle the process taking place during the process of quality management.
Statistical techniques are useful in determining sample size, fixing natural limits of variations of
the process, deciding frequency of inspection, testing conformity of sample to specification as provided.
51 ORGANIZATIONAL STUDY
GENERAL MANAGER
ALLEPPY CO-OPERATIVE SPINNING MILL
In many manufacturing process the two articles produced willn’t be the same all the time. So therefore in
every unit the process control test are applied in order to check the quality of yarn produced at each stage.
Generally the unevenness of the yarn is expressed in terms of U%/CV%. The short term
irregularity of yarn is determined by assessing the user U% which is a measure of the variation in the
weight of 8mm cut length of the yarn. CV is the coefficient of variation of mass with cut length of 10mm.
The SITRA has specified some norms with respect to short term irregularity of yarns.
TYPE COUNT GOOD AVERAGE POORCARDED 20S 12 13.5 15
30S 12.5 14 15.540S 14.5 16 17.560S 15 17 1880S 16 12 19
COMBED 30S 11 12 1340S 12 13 1460S 12.5 13.5 14.580S 13 14 15100S 13.5 14.5 15.5
QUALITY SYSTEM STANDARD
A spinning mill where yarn is produced as per the customer’s requirement implemented
ISO 9002 and ISO 9003 models. ISO 9001 model is more appropriate for mills producing special
yarns and fabrics for industrial applications where the fabrics have to be engineered to meet very
string requirements. Here in ACSM both these ISO 9000 standard are being applied with respect
to the production of yarn.
ISO 9002
This standard is applicable for the industries where the specified requirements of
products/services are stated in terms of established design parameters. The ACSM, which
is involved in the manufacturing process of yarns, fabrics etc as per the customers
requirement follows the path these standards.
ISO 9003
This standard specifies quality system requirements for situations which require demonstration
of suppliers capability to detect and control the disposition of any non conformality during final
inspection and test .ACSM, which is involved in purchasing of raw material, testing the samples
52 ORGANIZATIONAL STUDY
TQM
ALLEPPY CO-OPERATIVE SPINNING MILL
is grading them as per the properties and selling them to the market. All these process are done
according to ISO 9003.
The quality management system implemented in ACSM Ltd, kayamkulam is Total Quality
Management (TQM). Basically TQM is the process of achieving customer requirements
at the lowest effective cost by bringing out talents of the employees. TQM stands for
management approach of an organization, centered on quality based on the participation
of all its members and aiming at long term success through customer satisfaction and
benefits to all members to the organization and society.
The quality management under TQM involves several steps. These steps are being
implemented in ACSM as management system. They can be schematically showed as;
ISO 9000 BPR AND BPB
IMPLEMENTATION
IMPROVEMENT TEAM CHANGE MANAGEMENT
1. BPR –BUSINESS RE-ENGINEERING
2. BPB-BUSINESS PROCESS BENCH MARKETING
53 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
.
CHAPTER -7
ANALYSIS
54 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
SWOT ANALYSIS
In SWOT analysis the Strength, Weakness, Opportunities, Threats of ACSM Ltd, kayamkulam is
analyzed and noted.
It is a tool that identifies the strength, weakness, opportunities and threats of an organization.
Specifically, SWOT is a basic, straightforward model that assesses what an organization can and
cannot do as well as its potential opportunities and threats.
The method of SWOT analysis is to take the information from an environmental analysis and
separate it into internal (strength, weakness) and external issues (opportunities, threats). Once
this is completed, SWOT analysis determines what may assist the firm in accomplishing its
objectives, and what obstacles must be overcome or minimized to achieve desired results.
STRENGTHS
Goodwill of the company
Government Co-operative
Good employer-employee and employee-employer relationship
Only few competitors in India
Leaders are available round the clock in case of plant emergencies
Service oriented
Most of non-core areas outsourced canteen, excellent housekeeping practices, restrooms
etc.
Good relation with the distributors and customers
Highly committed staff
Attendance time punching including all
Computerization in each and every department
Kept technical document for all technical policies
55 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
WEAKNESS
Mill is highly depending on the availability of cotton as raw material from other state of
India
The main customer of ACSM is in Mumbai business man’s who deals with the textile
sectors
There is no fixed MRP like every other product
Transportation charge block its proper functioning
Production work will be shut down due to lack of raw material, cotton due to
unpredictable natural causes
OPPORTUNITIES
Prosperity of the industry in both domestic and export front
Helpful to framers can increase income from cotton cultivation
The decision of the government to start working up of 6000 spindles only at first stage
Financial assistance provided by TEXFED
Most advanced automatic power law and competent technical man power
The local market should be utilized to promote sales
THREATS
The main threat of ACSM is its competitors especially from the china and srilanka in these
countries labor charge is very less compared to India
Decline in cotton yarn export
Lack of modernization
Lack of local market for raw materials and finished goods
Non-availability of credit
Low availability of raw material
Increase in cost of production through dual transportation
Labor shortage due to pay scale provided by the company
Trade Liberation
56 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
CHAPTER -7
FINDINGS AND SUGGETIONS
57 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
Findings and Suggestions
Customer is fully satisfied with the product quality
Product distribution is going very fastly and there is no delay in supply of products to the
markets
Cost of production is high
Rate of interest of loan is very high as compared to agricultural industry
The company is environment friendly
Better industrial relationship
Qualified and skilled workers
No suggestion boxes for employees
There are only few competitors in India
Most of the employees are appointed on the basis of contract, therefore no job security
among them
Low availability of raw materials
Good refreshment facility in the organization
During harvest season huge amount have to be paid for cotton
SUGGESTIONS
Provide more job security by appointing workers on permanent basis
Provide suggestion boxes
ACSM should be computerized and linked with all departments
Provide uniforms for the employees that may help to create feeling of uniformity
Effort should be taken to maintain a sound balance between tradition and modernization
Provide mask and head cover
Since office not fully furnished the space requirement of each department is not met
To increase the availability of cotton in various sources.
58 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
CHAPTER -8
CONCLUSION
59 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
CONCLUSION
In this organization study at ACSM gave a lot to study and understand the
mannerism of putting theoretical frame work in to practice. The objectives of this study
were acquiring knowledge about the functional as well as managerial aspects and the
origin and history of the company. Through this organization study a practical experience
in the different organizational activities was made.
The organization study has helped to understand more about textile industry and the
major threat faced by the industry. It also helped me to understand the fact that textile and
clothing industry is the single most earners around 30% of gross export earnings for India
holds the second position in the world market in the field of yarn. This organization is
absolutely suitable for the climate of Kerala. In 2010ACSM was selected as model Mill
by RIAB
But the number of textile industry in south India declining day to day. It mainly due
to the non-availability of credit and lack of modernization in the field of production. The
uncertain risk behind the raw material that is cotton is one of the main threads of this
industry. In ACSM the raw materials being brought from Andra Pradesh, Maharashtra
Tamil nadu, Punjab etc at the same time the finished goods is also transported outside the
state which lead to the high production cost.
If the industry is able to overcome these threats then it this sector would provide
more job opportunities in the industrial as well as agricultural sector.
60 ORGANIZATIONAL STUDY
ALLEPPY CO-OPERATIVE SPINNING MILL
BIBLIOGRAPHY
BOOKS
Philip Kotler, Marketing Management, Pearson prentice Hall
Dr. Madhur B.S, Co-operation India, Sathiya bhavan publication Distribution Pvt Ltd.
Pandey I.M., Financial Management, Vikas Publication.
Websites
www.ask.com
www.cotton. Com
www.textile.com
61 ORGANIZATIONAL STUDY