slp-project report

Sri Lakshmi Plywood’s

DECLARATION

I hereby declare that this summer report on industrial training entitled a study on

Market Share of “SRI LAKSHMI PLYWOODS, submitted to department of Management studies,

Malla Reddy Institute of engineering and technology in partial fulfillment of the requirement for

the award of the degree of MASTER OF BUSINESS ADMINISTRATION is a original work done by

me during the period of my study at the college under the supervision and guidance of

Department of management studies

(Signature)

ACKNOWLEDGEMENT

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SERIAL

NO

CONTENTS PAGE NO

1 INTRODUCTION 1

2 INDUSTRYPROFILE 5

3 COMPANY PROFILE 8

4 FUNCTIONAL DEPARTMENT 16

5 SWOT ANALYSIS 56

6 FINDINGS 59

7 SUGGESION 60

8 CONCLUSION 61

9 BIBLIOGRAPHY 62

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INTRODUCTION

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INTRODUCTION

Management is the process by which people, technology job tasks and other resources are

combined and coordinated so as to effectively achieve organizational goal.

The organizational study conducted at ‘SRI LAKSHMI PLYWOODS.’ Is to study about

organizational structure communication channel, span of control, organizational culture etc. of

the organization .The relevance of the study is to understand the above mentioned facts through a

real organizational scenario.

The chief objective of the organizational study is to familiarize with the working of

various departments for a particular period, so that one can have exposure to the practical side.

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Objective of the study

To have general awareness of the functioning and management of the organization.

To understand the organization structure and working of various functional departments.

To analyze the overall performance of the company.

To understand the extent to which management theory matches with actual practices

observed.

To understand and study the organization objectives and goals.

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METHODOLOGY

The methodology used for this organization study is mainly in two ways. They are;

PRIMARY DATA,

SECONDARY DATA.

PRIMARY DATA

Primary data are those data which are collected first hand and thus happen to be in

original character. The primary data includes the data by questionnaires, by observing

and by interviews with the company personnel at different levels of management.

From the managers

From the office staff

Rom the workers.

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SECONDARY DATA

Secondary data are those data which have already been collected from the company such

as

Business journals

Quality manuals

Annual report

Magazines broachers.

LIMITATIONS OF THE STUDY

1. Due to shortage of time and other constraints, interviews with workers were short.

2. Both managers and employees are not ready to fully reveal the data required for

the project and the document of the company are not open for the public scrutiny.

3. Lack of availability of secondary data from published journals and reports.

4. Another limitation faced was the respondents sometimes were too busy to answer

questions in detail.

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INDUSTRYPROFILE

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INDUSTRY PROFILE

Trees are nature’s greatest bounty to man. They provide shelter, fuel, medicines and tools

for war or commerce or transport. It was a timber from trees, which in the early days helped man

to conquer the oceans and to fly in the air.

Nature develops trees as a mother brings up children, making each one a separate

individual. It is an amazing sight to see the natural abstract rhythm of line, colour and texture in

wood. Nothing from nature indoors gives such a long lasting enjoyment as the natural beauty of

wood. Flowers fade, but the beauty of decorative wood is enhanced by age.

GROWTH AND DEVELOPMENT OF PLYWOOD INDUSTRY

In India the modern sector of Small, large scale manufacturer have played a significant

role in the socio-economic development of the country. Our county is blessed with immense

stock of natural resources both above and beneath the soil surface. Forest is one of the important

natural assets of India.

Of the various areas of wood processing plywood manufacture is an important sector

wing to its employment potential and value addition. In India plywood as a product was

commercially developed first in Assam and its neighboring area by enterprising industrialist.

Nearly a century ago during those days when the India tea was introduce to Europe, many

complaints such as tanning of the tea, change of odour, lack of resistance of boxes to withstand

transport.

landings were received. To overcome these complaints Indian association set up a committee to

go up into the details of tea packing and it was found that tea chest made from plywood could be

used for packing tea.

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The art of veneering was in existence as early as 1500 BC in Egypt. Veneering is a thin layer of

sheet of wood uniform in thickness. Veneer is used in Greek during early period to beautify the

furniture. The Roman also used veneer during the time of 63 BC. During the reign of LUOIX

XV in 1760 good decorative furniture was made in France using veneer. The plywood which are

seen in the present form was developed after 1860 this veneer machine was first upgraded by

French mechanic in 1812. The factory for manufacturing of veneer was first established in

Germany in the middle of 19th century. Nowadays a rapid development is taking place in this

field.

At present wood products are used for manufacture of modern kind of furniture, Building

material, material for interior decoration, ship building, automobile manufacturing, and

refrigerator and meant for many other purpose.

PLYWOOD INDUSTRY IN INDIA

The Indian plywood industry owes its origin to the development of tea industry in the state

of Assam, West Bengal, Kerala and the difficulty created by the two World wars in the way of

imports of tea chest plywood. Except for the setbacks suffered in the post war period, the

plywood sector was booming since 1947.

In 1947 India was a net importer of plywood, mainly tea chest plywood of approximately

Rs.2 crore per annum. During 1992 India manufactured 150 million sq. meters of plywood types

that earned approximately Rs.1000 crore. The industry has grown both in medium, large scale

and small-scale sector. The plywood industry consumes about 15 million m3 timbers of primary

and secondary species. In fact the plywood industry has provided main outlet for the maximum

utilization of secondary species of timber there by making available contribution in the forest

economy. Later, the plywood industry aided for the development of farm forestry sector

plantation, which benefits the ordinary farmers in the country.

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The other main raw material required by the plywood industry is synthetic resin, which is

available within the country. The materials required for manufacturing resins are Urea, Phenol

and Formaldehyde. This industry also pays excise duty to the extent as Rs.50 crore; provides

employment to about 30000 people and has total investment as Rs.400 to 500crores.

INDUSTRY TRENDS

Competition is keen in the furniture industry. Furniture manufacturers and exporters are

suffering from decreasing profit margins. Many companies strive to reduce their cost of

production and increase efficiency. Some relocate their manufacturing operations to other areas

with lower operation cost, such as the Chinese mainland. On the other hand, foreign

manufacturers are taking steps to strengthen their domestic production through product

specialisation.

To stay globally competitive, Hong Kong furniture manufacturers strive to reduce costs,

initiate quality control, improve design concepts and capability, and upgrade management skills

and increase marketing and sales effectiveness. Many manufacturers have obtained or are

applying for ISO 9000/9002 certification.

Hong Kong's furniture makers also started to develop their own brands. Furniture

manufacturers also become more careful about the choice of raw materials to meet international

standards, such as compliance with legal or other environmental requirements in their target

markets. China is the largest furniture exporter to many countries, including the US and Japan.

The total furniture exports of China exceeded US$6,683 million in 2002, with the US being its

largest market. Guangdong province is the major manufacturing centre of furniture on the

Chinese mainland. Apart from Hong Kong, manufacturers from Taiwan and even the US have

also set up production plants on the mainland. In China, most of the production is on an OEM

basis. China also offers a huge potential market for furniture maker

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COMPANY PROFILE

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COMPANY PROFILE

BACKGROUND AND INCEPTION OF THE COMPANY

Sri Lakshmi Plywoods is associated with the largest integrated wood-processing

complex in the country as well as in southern Asia. It was established in 1945 and it started

manufacture of sawn timberland plywood on a modest scale with a few indigenous and lend

lease machinery. The founder of Sri Lakshmi Plywoods Plywood was Mr. P.N.Srinivas company

The Company made progress through the years and expanded to its present status. The company

grew over the next two decades into a well integrated wood processing unit with finely tuned

skill in new product development and manufacturing.

Plywood manufacturing was stepped up steadily by addition of new machinery, mostly

imported. They also diversified from the production of the Tea-Chests and Commercial plywood

to manufacture of decorative plywood, block board, flush door, shuttering plywood, and aircraft

plywood etc.

The hard board manufactured by the company found ready acceptance in the market so that

the company decided on an expansion project in 1977 to increase the output of the hardboard to

24700 tons per year. The expansion project was completed in 1980. Recently in 1990, the

company added pre finished hard board and plywood to its impressive product range. A state of

art production line imported from Italy utilizes technology from the market leaders in the field of

U.V curable paints TREFFERT of Germany. Process employed in plant is totally environment

friendly and does not involve any harmful emission. The company is the first in the country to

put up a plant for irradiating wood in collaboration with Bhabha Atomic Centre Mumbai in order

to aggregate the low-grade timber

.

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NATURE OF BUSINES

SLP is the fourth biggest plywood factory in Asia. The factory is situated in Kannur

district in Kerala state. SLP collects timber and firewood through import from Malaysia, Africa,

Burma, Russia etc. and local purchase. Thus it is being processed at the factory and converts into

various finished products such as different varieties of plywood, hardboard, furniture, wood floor

etc. SLP exports 80% of total production to Germany, USA, Canada, Italy, Australia, Japan,

Sweden, Middle East and Gulf Countries regularly. The rest of 20% is being through retail

outlets and Company’s sales depots throughout the country SLP Ltd., the largest integrated wood

processing complex in the country, was incorporated in 1945 immediately after second world

war. The SLP is a widely held public ltd., company listed in cochin and Madras Stock Exchange.

Thanks to the dynamism and vision of its founder – managing director Mr. A K

KADERKUTTY, who is the acknowledged doyen of the Indian wood working industry? SLP

grew over two decades into a well integrated wood processing unit with finally tuned skills in

new product development and manufacture. Though its 60 years of existence, SLP has been

singularly responsible for the most significant product innovations in the Indian plywood panel

industry.

A HARDBOARD plant with an installed capacity of 12.5 tones was set up in 1959-60

with West German technical collaboration. Today SLP’s hardboard division is the market leader

in hardboards with state of the art production lines manufacturing over 120 tones today. SLP’s

hardboard like its plywood products, commands a premium in the market, due to its intrinsic

quality which is recognized by loyal customers.

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VISION, MISSION AND QUALITY POLICY

VISION

Continue to remain the best plywood panel corporation in India with a growth in allied

areas

MISSION

To provided utmost satisfaction to the consumer through best quality and customer care.

To continusly upgrade the product through innovation and convergence of new

technology and to produce the best quality product.

To safe guard and enhance share holders value

To respect the dignify of all employees and together to become instrumental in the

development of the country while protecting the environment.

To utilizes the surpluses for the welfare of employees and the society at large.

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QUALITY POLICY

Quality policy of SRI LAKSHMI PLYWOODS PLYWOODS is to manufacture products

as per national/international standard and make them available to customers as per requirement.

SRI LAKSHMI PLYWOODS PLYWOODS endeavor to upgrade the quality of its

products and related services on a continual basis through regular improvement

effort.

A well defined quality management system has been implemented. This system is

continuously revised to enhance its effectiveness and updated to meet changing needs.

QUALITY OBJECTIVES

Suitable equipments and machinery for process control at all stages.

Provision of adequate resources including raw materials and personnel to ensure constant

product quality.

Well defined process and product characteristics to enable monitoring analysis and

continual improvement

Communication of requirement of products including customers’ requirement,

statutory/regulatory requirements as per aspect of QMS including policy and objective

among all employees.

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ORGANISATIONAL CHART

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Chief Management

Executive

GM (administration) GM

(production)

Company Chief Accountant officer

Technical Development Manager

Marketing Head Works Manager

Central Excise Plant Manager

Sales Manager DWD

HD/PFP/PCPB

Store/P&A

Electrical

Densified Wood

Products

Plywood, Flush door, Block board


PRODUCT PROFILE

The major product for which the company has been the leaders in quality since 1945 is just

because of its finest quality products produced as per international standards. The products of the

company are globally accepted. Over the last 50 years, through its close knit co-ordination of

various processing units, professional management and maximum utilization of facilities

available, the company has made an indelible mark in the wood industry – a mark of glorious

achievements

SLPWOOD

Densified wood is used in the manufacturing of textile & jute mill accessories

SLPLAM

Densified wood is used in the manufacture of insulation components for transformers &

switchgears

SLPCHECK

Densified compressed floor board, with both chequred and plain surfaces, building &

chemical industries

SLPROC

Densified wood used in the manufacture of high precision jig formatting tools in

aeronautical industry & neutron shields in reactors.

SLPBEAR

Densified wood used in the manufacturer of bearing and gears

SLPCHEM

Densified wood used in manufacture of electrical insulation components like studs, nuts,

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cleats & other segments

SLPRESS

Rigid and high purity densified wood with excellent electrical and mechanical properties,

for use in the transformer industry.

SLPLAC

Pre-finished plywood & hard board, used in the manufacture of panel coiling and

furniture.

ULTRACLICK

Engineered wood flooring

COMPREG SLATS.

Used for railway coaches, paneling and as a building material.

DENSIFIED MOULDED SEATS

Used for railway coaches, auditoriums & restaurant.

WESTINDPLY

Decorative finished and commercial finished BWR and BWP grade plywoods,

manufactured from selected species of timber, water proof quality used for boat building,

concrete shuttering, furniture, partitions, paneling etc.

HARDBORDS

Used extensively by automobile industries, fiber drum manufactures, shoe manufactures,

photo frame backing, clock manufactures, school writing parts and also for partitions.

FURNITURE

All type of furniture including molded a knock down furniture

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FUNCTIONAL DEPARTMENTS

1) HUMAN RESOURCE DEPARMENT

2) PRODUCTION DEPARTMENT

3) PURCHASE DEPARTMENT

4) MARKETING DEPARTMENT

5) SALES DEPARTMENT

6) CENTRAL EXCISE DEPARTMENT

7) RESERCH AND DEVOLEPMENT DEPARTMENT

8) EXPORT- IMPORT DEPARTMENT

9) FINANCE DEPARTMENT

10) TOTAL QULITY MANAGEMENT ( T.Q.M )

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HUMAN RESOURCES DEPARTMENT

An organization is a human grouping in which work is done for the accomplishment of

specific goal or mission. The goal of a manufacturing concern might be to produce and supply

the goods and services to satisfy the demand of market.

SLP LTD., aims at producing plywood, hardboard, and furniture to meet the demands of

both national and international market. SLP, is having the best governed Human Resource

Department, which is the heart and soul behind the success of the gigantic establishment.

Managing Director is the head of the department followed by the factory executive who deals

with all the matters in the personnel department. He is assisted by the Personnel Officer and

Welfare Officer.

JOB ANALYSIS

This is the process determining, by observation and study and reporting pertinent

information relating to the nature of a specific job. It is the determination of the task which

comprise the job and of the skills, knowledge, the and responsibilities required of the worker for

a successful performance and which differentiates one job from all other.

JOB SUMMARY

Monitoring the works of timekeepers

Processing of joining and separation of employees

Process contacts and reemployment.

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Processing of disciplinary action

JOB ACTIVITIES

Supervise and coordinate the daily work of timekeepers.

Monitor and control the attendance recording to eliminate chance of proxy

Verify for correctness the statutory documents concerning attendance and other work

recedes of employees.

Verify documentation of leave of absence; overtime given, weekly off,

compensatory off etc., verification as to conforining to norms laid down.

Monitor the preparation of wage/salary statements for each month, ensuring

incorporation of allowed deduction in respect of each employee.

Advance intimation of personnel retiring for services and process the papers connected

with the separation and payments of befits associated with the same.

Prepare appointment orders for fresh recruitments and the process the joining papers,

including issue of identity cards and arranging for enrollment under PF, ESI etc.

JOB RESPONSIBILITY

Ensure recording and documentation of attendance of employees at all levels.

Ensure maintenance of leave records, overtime records, weekly off, compensatory off

records etc.

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Ensure monthly salary wages statements in time.

Issue of appointment orders, conformation orders, separation orders etc for all categories

of employees.

Ensure the disciplinary proceedings are followed up till the issue of punishment orders.

JOB ENVIRONMENT

Reporting to factory executive/head of personnel functions; however keep rapport and

liaison with section in chargers in all functional areas.

Current informal ways of working ;practice of working on oral instructions and

getting such actions ratified in due course

Want of documentation by way of proper system and procedures.

Habitual cases of absenteeism and in discipline.

The slow pace of work among the staff, as a part of past work practice.

RECRUITMENT AND SELECTION

In SLP the sources of recruitment includes both internal and external. Whenever any

vacancy occurs somebody from within the organization is upgraded, lie outside the organization,

which includes new entrants to the labor force, retired experienced person’s etc. For the selection

process a panel of interviewers interviews candidate. The apt candidate is then selected for the

job.

TRAINING24 | P a g e


One – year training is given to the new entrance. Training is restricted not restricted just

for a specific work but an overall training is given to workers so that they can fill in the post of

absentee. This makes the worker more versatile. Stipend is given to the employees during the

training period.

CLASSIFICATION OF WORKERS

In SLP Ltd., workers are classified as follows;

1. Permanent

2. Probationers

3. Substitutes

4. Temporary

5. Casual

6. Apprentice

Ticket or Attendance Card:

Every workman shall be given a ticket or attendance card, free of cost, showing his

number or name, classification etc. Every workman shall punch his attendance card at the

punching machine and deliver up his card or ticket at the

place provided in the time office before the commencement of each session of the shift in a day.

Entrance and exit

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The workman shall not enter or leave the premises of the factory except by the gate or

gates appointed for the purpose.

Leave and Holidays

1. Leave with wages will be allowed to workmen as provided for in the chapter of

Factories Act.

2. Leave for sickness, maternity and accident will be allowed to the workmen as

provided for in the Employees State Insurance Act.

3. National and festival Holidays with wages will be allowed to the workmen as

provided for in the Kerala Establishment Act.

Wage and Salary administration

In SLP Ltd., the managers analyze and interpret the needs of the employees so that

reward can be individually designed to satisfy their needs. Here the workers are paid wages and

the staff officers managers etc are paid salary. The wage /salary system which SLP which

follows is time rate system. Under this system workers are paid according to the work done

during a certain period of time. He is paid at the settled rate as soon as the time contracted for is

spent. The basic purpose of salary administration is to establish and maintain an equitable wage

and salary structure.

Disciplinary Action

Any workman who is found guilty of misconducts is liable to be summarily dismissed

without notice or compensation in lieu of notice or alternatively to be suspended for period not

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exceeding 4 days or to be fined up to 2% of his wages in a wage period in accordance with the

provisions of the Payment of Wages Act.

Wages and other dues, if any, due to workman whose service is terminated by way of dismissal

or discharge or retrenchment shall be paid to the workman within 2 days of termination of his

service.

Retirement

Any workman who is declared mentally unfit or found to be on continued ill- health or

reached the age of 58 (fifty eight years) shall be retired from the service according to the

Gratuity Act.

Benefits

Statutory benefits including ESI, PF, Gratuity etc. are provided to all the employees.

Besides that SLP Ltd., provides food at subsidized rate to the workers. Whenever any employees

meet with any accident, all the expense in the course of treatment borne by the company.

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Various acts followed by the company

1. The Companies Act 1956

2. The Factories Act, 1948

3. The Industrial Disputes Act, 1947

4. The Minimum wages Act, 1948

5. Payment of Wages Act, 1936

6. The Contracts Labor (Regulation & Abolition) Act, 1970

7. Employees’ State Insurance Act, 1948

Editions of the following statutory/regulatory requirements guide SLP

PERSONNEL AND WELFARE FUNCTIONS

Job Design

Evaluation and Selection of Candidates.

Placement.

Induction, On-the job training

Training and development

Appraisal

Increment, promotion .

Welfare activity

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The following welfare facilities are there in our Organization:

E.S.I. Scheme.

`Workers Canteen at subsidized rates.

Staff Mess

Co-operative Credit Society.

Medical Re-imbursement for those not covered under E.S.I

Ambulance

Festival Advances

Book Advance

Staff Recreation Club

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PRODUCTION DEPARTMENT

Production involves conversion of raw material into finished products/ goods. It can be

briefly explained as follows.

Input Conversion process Output

In the Sri Lakshmi Plywoods the raw material that are used to the output is steam wood,

and chemicals. After introducing these raw materials to a series of process the finished goods

are obtained. SLP produce three categories of products, namely, plywood, hardboard and

furniture. The wood that is required for the production is acquired from both local as well as

international markets. SLP imports wood from Malaysia, South Africa, and South America etc.

In India wood is obtained from Kashmir, Mysore, Wayanad, Andaman Iritty etc.

PRODUCTION PROCESS

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Log yard

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Log yard

Drying

Cross cutting

Assembling

BoilingFlitching

Slicing

Slicing

Pressing

Drying

Edging

Conditioning

Glueing

Boiling

Clipping

Peeling

BOILOR

Trimming

Sanding

Finishing


It is the place where the wood is kept. Following are the woods that are used: Welapine,

Pali, Pashupali, Kalpine, Padapine, Mango, Badam, Silver, Neeli, Redcedar, White cedar,

Swisspine etc.

Cross Cutting

The wood from the log yard is brought in for cross cutting. The long wood is cut into

block of varying sizes ranging from 3 to 8 feet as required. Chain saw is used for cutting the

logs that works on a hydraulic system.

Boiling

In order to make the hardwood soft and to remove its oil content, the block are boiled

with the help of steam at a temperature ranging from 1200 C to 1800C. The wood is boiled for a

minimum of 24 hours. The steam that is required is produced in boilers.

SLP has 4 types of boilers. They are;

1. Saw dust boiler

2. Firewood Boiler

3. FBC (Fuel Bed Combusting)

4. IAEC (Industrial Agricultural and Engineering Corporation)

Peeling

After boiling, the logs are peeled with the help of the peeling machine. The output is

called the veneer. Two kinds of veneers are obtained – Face and core. Both of them have the

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same quality, but the soft and smooth part is known as face and the hard and the rough is called

as core. The thickness of veneers ranges from 0.4 mm to 2.8mm. Sometimes the slicing

machine is used instead of a peeler. This is mainly used in decorative plywoods.

Clipping

The next process is called clipping. Here the veneer produced from the peeler is passed

through clipper. In clipping the veneer of the required length is cut.

Drying:

Drying is the next process. Drying process is conducted by considering time, steam, and

thickness of wood. The machine used for this process is known as Dryad..

Edging & Joining

In this process of edging and joining, three two sides of veneers are cut and removed for

avoiding damages. After this, the veneers are joined by using gum.

Gluing

In this section glue is applied over the core veneers, the glue spreading machine consists

of 2 rollers rotating in opposite direction between which the glue is kept. The glues used are –

Urea formaldehyde, Areolyte, Melanine formaldehyde.

Assembling

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In assembling the core veneers are places in between the face veneers. The adjacent

veneers are placed in such a way that the gains are across each other. Minimum three plies

should be there in plywood. In this process, several boards are pressed in certain temperature.

The main element that should be taken as important in this process are steam, thickness and time.

Conditioning

Conditioning is the process in which the pressed plys are treated with chemical water to

avoid termites and fungal attacks.

Trimming

In trimming the plywood is passed into the trimming machine for cutting the sides

according to the sizes required.

Sanding

This is the process in which the trimmed surface of the plywood is smoothened and

softened by using sandpaper or belt sender or drum sander.

Finishing

Finishing is the final step in the plywood production process. All the finishing works are

done in this step. The boards are sealed and labeled and made ready for dispatch.

The following are the important products produced with the help of plywood.

Cold Water Resistant (CWR)

Boiled Water Resistant (BWR)

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Boiled Water Proof (BWR)

Warm Water Resistant (WWR)

Warm Water Proof (WWP

Aircraft plywood

Marine Plywood

Shuttering Plywood

Fireproof Plywood

Flush door plywood

Inlay board

High Density Plywood

Medium Density Plywood

Low Density Plywood

Super Block Board

COMPREG STATES

These are resin impregnated and compressed wood based laminates. They are

manufactured from selected veneers obtained from quality timber specious. The veneers are

seasoned to optimum moisture content, treated, passed through evaporation chambers, assembled

in the required grain construction and pressed

Under high pressure and temperature to produce the Compreg stats. Compreg stat is a

uniform homogenous material free from surface defects, checks, splits, discoloration, blisters,

overlaps gaps etc. Compreg stats is a unique material having strength of metals, resistance of

natural timber and the surface finish, stability and hardness of modern plastics. Both surfaces

have the uniform phenolic resin coating with excellent resistance against abrasive action.

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HARDBOARD

Hardboard manufacturing involves a series of well-designed sequential process which

with the intake of wooden pieces from one end and formation of Hardboard at the other end

ready for supply.

Following are the various machinery and process involved:-

Chipping Machine for the formation of wooden chips:

These chips are transferred to the head tank for washing it using conveyor belts.

Cleaning of chips:-

This is done using boiling water. It also provides sufficient softness for the chips.

Passing through sieve does the separation of water from the chips.

Cyclone

Chips from the deliberating machine are transferred to a conical chamber called cyclone

using steam.

Defibrator

The Defibrator used in the plant is the aspluent Defibrator. The moisture content in the

chips is removed by increasing the temperature and the cleaned chips are converted into fine

powder. After grinding it with two grinding wheels of which one is kept stationary while the

other is rotating.

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Pulp formation:

The power form of wood is converted into pulp by adding sufficient quantity of water

and chemicals. The chemicals used are dilute sulphuric acid, paraffin wax and certain resin. The

pulp is then pumped into board forming section.

Board Forming Section

There are three sets of machines that are used in the plant.

I Press

II Press

III Press

The first and second presses are under the electrical pneumatic control and the third is

computerized. The percentage of pulp in the mixture is above 20 % and the rest 80% of water

which is absorbed by suction box. It is then passed through

the pulp roller press where boards having thickness 2.5 mm to 6mm are obtained which are

called wet laps. The wet laps are then places over the sieve net and transferred to the press. After

pressing for the required time, the board is taken out and is transferred to the edging and

trimming section. The cleaning of net is performed by a washer which uses a water jet of

pressure 300 Kg/cm3. The intake of wet lap feeding in to the press and then transferring it to the

edging section is automatically performed by the belt conveyor. Main difference between

Plywood and Hardboard is that resin is not coated in hardboard as in the case of Plywood

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FURNITURE

Furniture is another product which is produced in SLP. The furniture is used by using

decorative woods like Teak, Mahagony, and Rosewood etc. The veneers are molded in various

shapes to make different types of furniture. All the furniture are long-lasting and are with best

quality. Along with this, the wastes of decorative veneers are used to make various handicrafts

products. Inlay board is an example .

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PURCHASE DEPARTMENT

The Sri Lakshmi Plywoods Plywood Ltd., has well-developed and efficient purchase

department, which deals with the purchasing of raw materials. Company usually makes three

kinds of purchasing:

Local Purchase.

Direct Purchase.

Purchase through Bank.

Company has broadly classified its purchase department into Timber purchase department

and all other purchase departments. Other department does the buying of all other items other

than wood i.e. timber. It is involved in purchasing of consumer product, spares, oils, acids,

chemicals and other ancillary raw material used for manufacturing its products.

Timber purchasing department deals only with the purchase of Timber. Timbers are

purchased through bank or direct purchasing. An intend will be received from the stores

department about the item to be purchased. The production manager should sign it. An enquiry

will be made and following that the quotation will receive. Suitable quotations will be selected

and it will be sent to the production department mentioning the criteria of selection. After

receiving the quotation the purchase department will make order with specified conditions. If the

goods are sending through bank, intimation will receive from the bank that the goods are ready

for delivery. The money is paid as per the terms and conditions and the goods are delivered. In

the case of direct purchasing money is directly paid to the supplier and the goods are received.

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PURCHASE PROCEDURE

Invites for quotation from various parties.

From the quotation the actual buyers will be identified based on price and quality.

Order for the goods.

Goods will be sent to the nearest parcel offices from there the customer company will

collect the consignment.

Documentation through bank or direct supplier. Some time advance payment is also

undertaken.

Emergency purchases can be authorized by MD/ED by passing the above step.

MARKETTING DEPARTMENT

Marketing is the art of selling products. It is also defined as societal process by which

individual and groups obtain what they need and want through creating, offering and freely

exchanging products and services of value with others.

Due to the high standard of quality maintained by the quality control department of this

company, the product of the company have found ready acceptance in markets both in India and

abroad. The company has succeeded in arranging manufacturing programs on the basis if firm

orders, which in regularly for all types of products. The plywood manufactured by the company

is being regularly used for manufactures of T.V cabinets, bus bodies, building constructions,

railways, furniture industry etc. The hardboard is used for partition walls, false ceiling, furniture

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industry etc. The densified wood is being supplied to the electrical industries in various forms

and also to the textile and chemical industries in the form of filter plates and as checkered boards

for flooring in buses and railway coaches. The DAP and FRP compounds are being used by the

electronic and molding industries. The furniture manufactured by the company is being absorbed

the market in drawing rooms, bedrooms, schools, office etc. The products of the company are

being exported West Germany, France, U.S.A Sweden, West Asia and South Asian countries

regularly.

MARKET SEGMENTATTION

SRI LAKSHMI PLYWOODS PLYWOOD is well-established organization

manufacturing high quality goods. Company believes in quality. In order to ensure the quality

each batch of the products will undergo quality tests. Company has an efficient marketing

strategy. The prices of SLP’s products are comparatively high, but of high quality. The company

is targeted at the high income as well as at the low-level income groups SLP is marketing more

than 300 products.

Products are segmented as;

1. Domestic

2. Institutional

3. Automotive

4. Export

Brand and quality are the main marketing strategy followed by SLP.

The SLP has a unique product range that cannot be duplicated.

The SLP has gained 70% market share on Hardboard itself. SLP is the price leaders in

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hardboard marketing.

Almost all Car Manufacturers like TATA, Ford, Toyota, Hyundai and Maruthi are the customers

of SLP. Automotive segmentation is followed by SLP towards this

car manufactures. The main sales promotion followed by SLP is direct contact by Architects,

Builders etc. The SLP also issue national magazines as promotion tools. Marketing segmentation

adopted by SLP is niche is DAP manufacturing SLP has got marketing leadership in the World

after Japan and America.

STRUCTURE OF THE DEPARTMENT

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SALES DEPARTMENT

SLP market their products through agencies and depots. They use sales representative

also. Their main promotion method is direct contact by Sales representatives to canvass govt.

and railway. Enquiries are made through tenders. The main tool used to catch the government

orders is by the lowest quotation.

The main advantage received from the govt. is 95% ready cash payment. Generally the

SLP gives 15 to 20 days are credit for parties. Even though timber world is facing crisis, the

SLP is able to with stand by marketing variety of products like plywood items (Fire Resistant,

Marine Wood, Densified Wood, DAP, Hardboard, Furniture)

The main sales promotion method used by SLP is direct contact. The SLP has many

dealers throughout India. SLP also conduct exhibitions and issue international magazines. The

SLP outstand for their quality. This quality of product is maintained by laboratory testing.

Every batch of product will go to testing for identifying glue failure and other defects.

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Managing DirectorMarketing managerMarketing co-ordinatorBusiness manager

Marketing officer

Executives


Even though the timber world is facing scarcity, the SLP withstand with decorative board

wood. The SLP has achieved ISI certification for their products. The regular customers of SLP

are India Railway, Toyota, Hyundai, Fibre Drum Manufacturers, Shoe heals, Jolly board is the

only competitor of the SLP in Hardboard. So Hardboard manufacturing is mainly profitable as

far as SLP is concerned.

.

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EXPORT / IMPORT DEPARTMENT

Purpose

To popularize the products to the international level. Export carries out as per the export

policy of govt. of India and responsibilities lies on the hands of the Import / Export Executive.

Procedure

Quotations are sending along with the product details. In some cases samples are sent.

Once the price is approved of, the customer opens the letter of credit that contains details

regarding value, quantity, destination of supply, specification, etc once the order is confirmed

and placed; the product is not sent to the production department and production requirements.

Once the cargo is ready, it is taken to the nearest port for shipment.

In Sri Lakshmi Plywoods Plywood’s there is an arrangement called house stuffing where

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in the factory brings the container from the port to the companies work. The clearing agents

carry out all the customer formalities in order to get the clearance. This includes getting back

AR4 from the customs after the shipment for submission to the central excise. Once the shipment

is effected and the bill of loading is obtained the document for the buyers are negotiated through

the SLP’s bank. Once the cargo reaches the destination the customers retrieve the original

documents from their banks. The payment is then made accordingly.

Records maintained

Filing system; separate file is opened against each enquiry. All correspondence and

relative shipping documents are filed separately for ready as well as future reference.

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TOTAL QUALITY MANAGEMENT ( T.Q.M )

SLP Ltd. has separate department for total quality management and is well known for its

quality throughout the world it has recognition of ISO 9001-2000 for one of best and

standardized production system in the world. ISO provides a lot of standard for the quality

assurance.

SLP has both internal and external auditing system. Internal auditing is done every six

month by the concerned department head. External auditing is conducted mainly by the external

certifying body. They received all the procedure and document which includes.

Quality manual

Work instruction

The requirement satisfied by the SLP in order to get ISO certification is the following.

o Quality manual

o Control quality

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o Resource management

o Product realization

o Measurement analysis and improvement

o In order to assure the quality sec. technique like control chart are used

and the mainly used chart employed by the SLP Ltd. are X chart and

R Chart. The plan capacity utilization. Plant stoppage analysis break down

analysis are done using bar chart

The main reasons for plant stoppage are

Mechanical break down

Electrical break down

Blockage of Pulp

Blockage of chip

Shortage of fuel

Shortage of timber

The non conformance of both process and product are Analyzed by the mean of the cause

and effect diagram and the corresponding corrective /preventive action are taken

Quality Policy

To manufacture product as per national or international standards. We made them

available as per the customer requirement.

SLP endeavor to upgrade the quality of its product related service on a continuous basis

through regular improvement efforts.

A will defined quality management system has been implemented. This system is

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continuously reviewed to enhance its effectiveness and update to meet the changing need.

Quality objective

Suitable equipment and machinery for process control at all stage.Provision of adequate

resource including raw material & personnel to ensure consistent product quality will define

process and product characteristics to enable monitoring analysis and continual improvement.

Communication of requirement of product including customer requirement statutory, regulatory

requirement aspect of quality management system includes policy and objectives among all

employees.

The following is the structure of the T.Q.M.

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MANAGING DIRECTOR

Management Representative

Quality Engineer

Trainee


SWOT ANALYSIS

SWOT stands for Strength, Weakness, Opportunities and Threats. Strengths and

Weakness are the internal factors of the company where as Opportunities and Threats are

external factors. SWOT Analysis is the tool for auditing an organization and its environment. It

is the first stage as planning and helps marketers to focus on key issues have been identified, they

feed into marketing objectives. It can be used in conjunction with other tools as audit and

analysis.

STRENGTH

The company has been maintaining a high quality for its products and as its products are

well accepted in the market by quality conscious customers, it does not anticipate any

marketing problem. They are considered to be the “The Leaders in Quality Since

1945”.

The company has a well established R&D unit, one of the best kinds in the wood based

industry.

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The company is duly equipped to develop new products to meet the requirements of the

market.

The products of SLP are certified by ISO.

WEAKNES S

There is an acute shortage of good raw materials which has forced the company to

import a substantial portion of its main raw material viz. timber, which has also seen a

considerable increase in price.

Lack of good distribution network as compared to the competitors.

Promotion of competitors is better to that of SLP. The Company concentrates only on

Industrial Market.

The price of SLP’s products is high as compared to its competitors.

OPPORTUNITIES

The company is a leading supplier to Railways, Defense, Automobile, Electrical,

Transport, Civil Aviation and other industries.

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Several products have been developed for the specific requirements of the Automobile,

Transport and communication sectors such as Densified wood etc. and these products

which have technological advantages over competitive products.

The Company diversified from the production of chest and commercial plywood to

manufacture Decorative Plywood, Block Boards, Shuttering Plywood and Aircraft

plywood.

The products of the Company are being exported to Germany, France, U.S.A, Sweden,

West Asia and South Asian countries.

THREATS

The high power tariff and increasing cost of furnace oil and other petroleum products and

chemicals.

There are many medium scale and small scale plywood industries. They fix low price for

their products.

In some product ranges, imported items are available at lower cost than is currently

produced in India.

In general, the working of the company has been adversely affected by the effects of

Globalization.

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FINDINGS

Because of the increasing demand, now the company has changed their distribution

system in order to reach more parts of the state.

Due to the high standard of quality maintained by the company, its production costs are

relatively high so that company facing a serious problem and wants to reduce the price.

The company’s various operations on raw material performed in sequence and the

machines are placed along the product flow line. Because of this, the company’s products

get completed in lesser time and also have a smooth and continuous work flow.

The company gets 25% of the profit from the exporting.

Company concentrate all over the market.

Still the company is not computerized fully.

The company maintaining 0 % wastage.

Promotional expense is very less.

SLP focus on quality

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SUGGESTIONS

It is desirable to launch an advertising campaign to attract more customers

It is advisable to maintain and efficient market intelligence system and

advice mgt of the changing needs of the market.

The company may introduce more measures such as fencing of machineries,

which will protect the workers from accidents.

The company may prepare budgets for each activity which will provide it a

better control and coordination mechanism. This will aid in reduction of

production costs.

The company can save time and cost through the computerization.

The company have to follow more safety measures because there is a risk of

fire in the factory layout.

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CONCLUSION

.

The SLP Ltd., achieved 100% utilization of raw materials due to its integrated production

system. Therefore, it would be apt to call SLP, ‘ a company with a conscience ’. SLP, stands for

superior product performance and provides value for money to its customers. It is backed by

SLP’s commitment to harness the latest technology in wood processing industry and

continuously upgrade its processes and machinery. Due to the high quality maintained, the

company has found a ready market both India and abroad. The company does not aim at

competing with the local manufactures but wants a main player in the plywood export.

Now the company is producing more quantity is hardboards than plywood, because of the

development of technology. Presently the company is operating in loss- the major cause being

globalization. Another reason is the pricing policy of the company. The price level of the

products is higher as compare that of other companies manufacturing similar products. The

company should try to create brand awareness in the local market by advertising in medias and

conducting exclusive exhibitions etc.

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BIBLIOGRAPHY

1. K. Aswathappa, production & operation mgt, 2007

2. K Aswathappa, human resources and personnel management, 2007

3. Khan and Jain, financial management

4. Quality Management hand book- K K Anand

(MUHSIN.T.P……[email protected],09042101862)

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slp-project report

Documents