INTRODUCTION
Kerala state Rubber Co-operative Ltd. (Rubco) has, in a short span, redefined the way the co-operative sector functions and set the pace for the co-operative
movement in Kerala today. Rubco was set up in the year 1997 with the objective of effectively utilizing the abundant rubber resources of kerala. Today, from a single unit company, Rubco has grown into a Rs.280 crore conglomerate with well-diversified operations and a market presence extending beyond the boundaries of Kerala. Rubco manufactures and markets a variety of products from footwear to furniture, from mattresses to virgin coconut oil. Rubco has also entered into technological alliances with world leaders in the respective fields, sourcing from them the latest in technology. Substantial investments in modern manufacturing facilities, coupled with well organized marketing activities, have seen Rubcos products earn a reputation for quality, as also significant market shares. Led by a professional management team and ably supported by a committed workforce, Rubco is now poised to enter a high growth phase, with several new initiatives that will take the Group on a path of expansion and diversification. Rubco is started for promote the rubber plantation in kerala. Rubber plantation in India is large. Our country is the one of the largest national rubber producers in the world, now it occupies the fourth most position in the production of natural rubber. Thailand, Indonesia and Malaysia occupy the first, second and third position respectively, accounting for more than 9% of the global output. India has rank 5th in terms of acre age, 4th in terms of production and first in terms of productivity in the world. The rubber plantation sector in the country is dominated by small holdings, almost 10 lakhs in number, 88% of the area and production come from small holdings. Rubber plantation provides raw material for the product manufacturing industry. Rubber cultivation in India has been traditional confined to the hinder lands of south west cost mainly the kerala state and Kanyakumari district of Tamilnadu. The nontraditional regions cultivating runner includes costal Karnataka, Goa, and Konkan region of Maharashtra, costal Andrapradesh, Orissa , the North eastern states and Andaman niccobar islands.
Page 1
An organizational study report of Rubco Huat Woods Pvt Ltd. The rubber plantation employees about 4 lakh persons and a good number of them are women. Being tree crops it has tremendous potential in eco-restoration. Rubber plantations also provide a variety if auxiliary product like honey, seed oil, rubber wood and scope for rearing honey bees. Commercial cultivation of rubber in India was started in 1902. The state of kerala adjoins Kanyakumari district of Tamilnadu and traditional and major rubber growing area of the country. It is also grows in Tripura, Assam, Meghalaya, Mizoram, Manipura and Goa over 5.71 lakhs hector of area spread; over 15 states and one of the union territory of the country is under rubber plantation. The rubber plantation sector in India is dominated by small holdings almost 10 lakh in number, covering 88% of total area; about 71 lakh of people derive their employment from the plantation sector directly or indirectly. The main purpose of rubber plantation is the production of latex which is the main raw material for all rubber product manufacturing industries. In India, 72.2% f the product is processed as ribbed smoked sheet (RSS). Block rubber, concentrated latex, crepe rubber and other account for 9.8%, 10.5% and 7.77% respectively. A rubber tree with a useful economic life span of 23-30 years will yield high production latex. In this background, the Kerala state rubber co- operative Ltd., otherwise known as rubco, purpose to launch a comprehensive scheme to interact with the farmer directly with the processing and other support facilities so that small and marginal farmers can avoid the cumbersome process of sheet making in their small holding. Since small holdings are only between 0.5 to 2 Ha, generally, and do not have infrastructure facilities, it is very difficult for them to make quality sheets. In the international market the quality of the sheet are very important. For this purpose rubco also started a marketing plan with the farmers for making the sheets with international quality.
Page 2
It refers to the data that was collected first hand directly from the sources. By interviewing managers. Discussion with workers. Interviewing staffs.
The data previously collected by others for some other purpose. It includes, Company booklets. Organizational websites Annual reports and journals.
Page 3
Page 4
An organizational study report of Rubco Huat Woods Pvt Ltd. With its large population base India is emerging as a large market for rubber products and with the opening up of the economy, import of rubber products has also been increasing in recent years The rubber product mix in India is based mostly on the dry forms of rubber dictated by the requirement of the domestic market
Page 5
An organizational study report of Rubco Huat Woods Pvt Ltd. population and the large manufacturing further investments in r&d and infrastructure ,the country is poised to become a leader in rubber product manufacture in the years a head
Page 6
Page 7
Directly and indirectly to get responsible price, arresting drastic fall in price during peak production period, rubco policy in natural rubber has been a harmonious blend of social obligation and commercial practicability led by a professional management team and ably supported by a committed work force. RUBCO is now poised enter a high growth phase, with new several initiatives that will take the group on a path of expansion and diversification. Rubber holds immense potential for wide variety of commercial use which is yet to be fully tapped into. By realizing this potential, Rubco hopes to create opportunities and bring industrial progress to a land that accounts for 92% of countrys natural rubber production. In the process rubco also aims to achieve its vision of turning in to multi-faced, globally competitive organization, excelling in its every sphere of activity. RHW Ltd is located at chonadam near telicherry, kannur district kerala. RHW was inaugurating in 6 may 2000 and started its commercial production in January 2001.
Page 8
CAPITAL Authorized share capital of RUBCO as per the byelaw is Rs. 3000 lacks made up of A class share of Rs1000 each B class share of Rs 25000 each C class share of Rs 100000 each D class share of Rs 10 each Total
2500
Rs 2500 lakh
5600
1400 lakh
26000
26000 lakh
1000000
100 lakh
3000 lakh
BOARD OF DIRECTORS The administration and management of the company rests in the hands of board of directors consisting of 15 members as followers. 1. nine directors elected by A class share holders among themselves 2. two directors elected by B class share holders 3. three ex-office directors by registrar of co-operative societies, Kerala The term of office directors shall be five years from the date of assumption of the office. The co-operative cannot receipt deposit or loans in excess of 50 times the paid a share capital plus reserve fund of co-operative societies. This limit is not applicable to funds received from the central and state Govt. or other agencies like NCDC, Rubber Board etc.
Page 9
PRODUCT PROFILE
PRODUCTS
The rub wood furniture range introduced by RUBCO HAUT comprises of elegantly designed, modern furniture fashioned out of eco friendly rubber wood. Manufactured in technical and financial collaboration with M/s long haut group Berhand of Malaysia. The following are the various ranges of products offered by the RUBCO HAUT
Page 10
COMPUTER TABLE
The computer table offered by rubco hut wood thoughtfully designed to provide the room for all peripheral accessories and offer unmatched convenience. It is also available in different colors like honey, northern rosewoods, natural, west antique pine and pigment red.
TV STAND
The TV stands are simply designed but they do not nearly serve their purpose by stand out as elegant pieces of home dcor as well.
COT
Page 11
RUBCO HAUT manufactures both single and double cot and elegant wardrobes that make bedrooms all most beautiful and comfortable. It is also available in a range of colors honey, northern rosewoods, natural, west antique pine and pigment red.
MARKETS
Market of the rubco is divided in to two parts they are; Domestic market and foreign market. Domestic market is spread all over the kearla. While considering foreign market, company exports products to UK, USA, JAPAN, and GULF COUNTRIES.
COMPETITORS
RUBCO is enjoying monopoly in the market. They has no major competitors in market.
FUTURE EXPANSION
RUBCO is in the process of setting up a project for the manufacture of tyre and tubes for two/ three wheelers, passengers, cars etc. The project is located in the proposed industrial growth center being developed at valiyavelicham, about 35 km from kannur city. RUBCO invested Rs 96 million in the casual shoes project. Its location is in Thalassery. The new plant has a capacity of 1.55 million per annum.
Page 12
An organizational study report of Rubco Huat Woods Pvt Ltd. Virgin coconut oil project is the next one. The project envisages establishment of 100 cooperate coconut processing unit in kerala, to start with, which will be increased to 200 units subsequently for the production of coconut oil directly from green coconut nuts with uot going through conventional copro or milk route. The process methodology is commonly known as direct micro expelling technology. Capacity of plant is 4000 liters per day and packing capacity is 40 kilo liters of virgin coconut Oil per day.
ANCILLARY PRODUCTS: beverage from coconut water activated carbon Confectionary products.
RUBCO has a thread rubber project also the first product is conventional thread. The plant will have a capacity of 1200 tons per annum. Second product is precured thread. The plant will have capacity of 1200 tons per annum
Page 13
VISION
To become a global leader in the production of natural rubber and innovative production and development.
MISSION
Right information to all customers at all the time.
Page 14
ORGANIZATION CHART
Purchase Officer
Account Officer
Management represent
Store Keeper
Time Officer
Account clerk
Selection in charge QC
Maintain manager
Supervisors
Supervisors
Workers
Workers
Workers
Page 15
DEPARTMENTAL STUDY
PRODUCTION DEPARTMENT
INTRODUCTION
RUBCO RUB WOOD division has progressively recorded high productivity and profitability production department in equipped with efficient and qualified managers and supervisors.
FUNCTION
The main function come under production department are 1 production planning 2 furniture production 3 product development
PRODUCTION PLANNING
It is done on the basis of specification or orders placed by Rubco SALES INTERNATIONAL LTD and based on domestic order placed by authorized distributor. The required quality and quantity is specified through production planning and production is done according to this planning quality is ensured by quality control department. production planning involves an organization of an overall manufacturing Operating system to produce a product. Objective of production planning is to provide a physical system together with a set of operating guideline of efficient conversion of raw material human skill and other input to finished product.
The production planning procedure are varies from company to company. Production planning may begin with product idea and a plan for the design of product and the entire production system to manufacturing of a modified version of existing product, using the existing facilities. The major factors determine production planning procedures are;
Page 16
An organizational study report of Rubco Huat Woods Pvt Ltd. nature of production process nature of operation
Page 17
An organizational study report of Rubco Huat Woods Pvt Ltd. molding composing end cutting sanding finishing
The wood panel boards are creating in this section by using wood pieces. The furniture manufacturing unit uses only these types of panels. There is no large size wood piece. Each and every log is cutting in to small pieces. There are lots of processes involved in this section.
Planning area
It is area in which the wood processes are planning in to two sides. This is the first process in this section. Wood pieces are taken for joining purpose after keeping wood in klin drying room for particular period of time. The wood pieces will to having plain or smooth surfaces. So for the manufacturing purpose it must plain the surface of all wood pieces. Machine name: top and bottom plainer This area is also used for re work of defected material.
Finger joining
For the manufacturing of the furniture the woods must have a certain level of length and width. So it is important that the wood pieces must join together. So a special type of process for the joining the wood pieces is involved, it is called finger joining. Two machines are using together for this purpose. One is male part and other is female part. First machine cuts the edge of the wood in the teeth shape but the second one cut and attaches the glue to the edge. After that the wood pieces are passes horizontally through the machine and pieces are automatically joins. A particular length is fixing in the machine and it
Page 18
An organizational study report of Rubco Huat Woods Pvt Ltd. automatically cut the joint woods in the same line. The minimum length we can adjust in the machine is 1539 and maximum 4578
Molding
There are two types of machine used for molding purpose. 7 head molder and 5 head molder. This is used for the molding of two sides.
Composing
This is an important in EGP. It is the process of joining the finger joint wood pieces in a panel format. In this process edge of the wood pieces will not cut. The finger joined wood pieces are keeping in the composing machine by using the glue in the rip side.
Cutting
The length of the wood pieces may vary in small difference. So we have to cut the end of panels for getting correct shape.
Sanding
The wood panels are again sanding by using special type of machine which will have 3 sanding paper inside. It gives a smooth and plain surface.
Finishing
This is the last section of EGP .some defects or whole may appear in between the production process. One all the process are completed the defected wood panels are taking for finishing purpose. For removing the holes in the board wood powder mixing with glue and fill the gap.
Furniture
The colonial furniture collections from Rubcos are the ideal way to add splendor and comfort homes. Than Rubcos range of finished furniture comes in varied shades coated with several layers lacquers. The furniture ranges offered by Rubco haut woods are: dining table with chair T V stand sofa set with divan cot
Page 19
An organizational study report of Rubco Huat Woods Pvt Ltd. rocker chain cot
There are different sections and machines in furniture departments are narrow and band saw auto copy shaping machine wide belt sander single head double head tenoner jump saw back knife lathe turning sander single spinning shaper double spinning shaper mortiser router drilling spindle sander edge sander oscillating drum sander brush sander lathe sander multiple purpose drilling machine hydraulic multipurpose mortiser
ASSEMBLING
It is the section in which the different furniture materials are joining together for making the furniture. in furniture section the woods are shaping, sanding, turning and drilling. These wood pieces are assembling in order to make the exact furniture. Packing work is also doing in assembling department.
Page 20
BOARD OF DIRECTORS
MANAGING DIRECTOR
GENERAL MANAGER
SHIFT ENGINEER
PRODUCTION SUPERVISOR
WORKER
Page 21
CHANNELS OF DISTRIBUTION
A channel of distribution is the path through which products move from the place of production to the place of ultimate consumption. The company distributes its products through dealers. The company has around 150 dealers throughout India . Rubco factory Dealers Customers
Page 22
MARKET SEGMENTATION
A market consists of large number of buyers and they are widely scattered. They are different in their wants, purchasing power, buying attitude, buying practices etc..therefore it is desirable to group the buyers on the basis of location, income , education, age, sex etc.so as to enhance the satisfaction of the customer and profit to the market. This grouping of buyers is called market segmentation. Rubco haut wood follows geographical segmentation .it is divided in it two.
Home segmentation
It consist of state of kerala
PROMOTIONAL TOOLS
Once the product is manufactured, price fixed and distribution channels are selected, the next task is informing the prospective customer. The customers of rubco are informed through the following tools: Advertising Dealers meet Carpenters meets Discounts, offers, gift packs during festival season. Sales man gift scheme.
Page 23
An organizational study report of Rubco Huat Woods Pvt Ltd. Laminated boards
BRANDING OF PRODUCTS
Branding gives a name, sign, symbol, design or combination of so as all to distinguish the products from other similar product. The products produced in the company are sold under the brand name Rubco furniture and Rub wood EGP board and beams Rubco home series
TRANSPORTATION
This is the physical movement of goods from one place to another. Transportation function of rubco is undertaken by sales and shipping division. The company usually uses the modes like train, road, and ship for the purpose of transportation.
PRICING POLICY
Pricing policy provides the guidelines within which pricing strategy is formulated and implemented. Rubco follows cost based pricing policy. The price of the product is computed by adding certain percentage of profit to the cost of the product per unit.
DISCOUNTS
The company provides 2% trade discount on colonial furniture and panel bards. If the per purchase value exceeds Rs 8 lakh then 10% discount is given.
MARKETING RESEARCH
Marketing research is concerned with obtaining information regarding market.it is study of market its self. The marketing research is conducted by the company regarding changes in price, quality, design, and customer satisfaction level and after sales service etc
Page 24
PRODUCT PACKAGE
Rubco elegance Rubco welcome Rubco home nest Rubco captain Rubco marshal Rubco honey comb
Page 25
GM
KERALA
SALES EXICUTIVE
SALES EXICUTIVE
Page 26
QUALITY PARAMETERS
Minimum girth should be 28 inch and length should be 4 feet Tapping mark should be very less Branches and humps should be avoided Dead knots and nails should be avoided Irregular shapes and fungal attacked woods should be avoided
QUALITY OBJECTIVES
High capacity utilization Enhancing competence of employees High level of profitability Low level of rejection
Page 27
An organizational study report of Rubco Huat Woods Pvt Ltd. High yield from input materials Low level of break down Least possible customer complaints
QUALITY POLICY Rubcos quality policy is to give enhanced satisfaction to their customers through the manufacture and supply of rubber products by the use of modern manufacturing facilities. They voluntarily meet the entire product and process related regulatory requirements. The employees at Rubco are committed to continuously improve their performance in all sphere of activity. INSPECTION The act of determining the conformance or non conformance of the expected performance is the function. Here, the manufacturer seeks to determine the acceptability of the product or part of it. The basis for the inspection is usually a certain specification, which is called an inspection standard. Comparing the quality of the product to the standard makes inspection. In rubco, the inspection standards of every product and process are predetermined based on these standards. Inspection is carried at all stage of production. Quality control department conduct three types of inspection for maintain quality of materials they are INCOMING INSPECTION It is conducted when the purchase department purchases the materials to the production. At the time of production the required quality of to each accepted or it is rejected. IN PROCESS INSPECTION The quality checking is done according to the production process the quality supervisor inspect entire product production. Then the material is passed of it is satisfied the required quality otherwise it is send file work. FINAL INSPECTION
Page 28
An organizational study report of Rubco Huat Woods Pvt Ltd. After completion of production process the supervisor conducts its last inspection if the supervisor is satisfied on the quality of material produced, the materials are send to dispatch or otherwise they are given to re work.
The quality checking procedures in company are; Boiling water soak De Lamination test Cold water soak De Lamination test Dry salt retention test. Reagent test Moisture content test Concentration check.
Page 29
Managing Director
General Manager
Quality supervisor
Skilled worker
Unskilled worker
Page 30
FUNCTIONS
Conducting job analysis Planning labors needs and recruiting job candidates Selecting job candidates Conducting orientation and training programs for new employee Managing wages and salaries Providing incentives and benefits Appraising performance Communication with employees Training and developing managers Building employees commitment
RESPONSIBILITIES OF MANAGER
He is responsible for manpower planning recruitment, selection, training, compensation package, performance appraisal, maintaining discipline. He is providing advice and guidance to the officers and staffs working in the unit under the control of GM in the matter connected with the performance appraisal, discipline, training etc.
Page 31
An organizational study report of Rubco Huat Woods Pvt Ltd. He is responsible for obtaining necessary function for certain of posts, pay scale, and other required sanctions from managing director or chairman for filling up manpower requirements at time to time. He is responsible for proper administration of statutory and non statutory welfare programs in the company. He is responsible for preparation of wages salary bull and passing it to finance department for disbursement. He is responsible for identifying training needs of employees and arranges various training programs for employees.
a. Specialized workers
They are carpenters; they concentrate on work like final sanding, assembling etc. the spray finish also come under this category. The specialist workers have a pay scale of Rs 350 per day.
b. Skilled workers
They are those who have specialized in a particular job they are basically ITI and diploma holders. They have pay scale of 320 per day
c. Unskilled workers
They are third category and include those who have undergone 6 months initial training in the company. They have a pay scale of Rs 250 per day
a. Learners
Learners category includes the newly selected workers, they are actually under training for the first 6 months, then promoted to unskilled category based on their performance. They have pay scale of Rs 200 per day.
Page 32
Page 33
PERFORMANCE APPRISAL It is the process of evaluating the employees performance of a job in terms of requirements. It is considered as the most in dispensable tool for an organization, for the information it provide is highly useful in decision regarding various personal aspects such as promotions and merit increases performance measures also link information gathering and decision making process which provide a basis for judging the effectiveness of personnel sub division such as recruiting, selection, training, and compensation. Rubco huat woods are using grading method for performance appraisal. Supervisor appointed to evaluate the performance of workers. According to their performance, they are given grade as below; A grade B grade C grade excellent good satisfactory
Following factors are taken into consideration for fixing grades: Attendance Responsibility Ability to grasp things Work performance Quality of output
TIME OFFICE The main functions of time office are; To prepare shift schedule on monthly basis To prepare and display notice of various safety and other matters To oversee the conduct of staff and the workers, to ensure the general discipline etc To maintain out pass register fir proper recording duly sectioned out pass od employees To maintain an accident register To issue visitors pass as per company rules
Page 34
An organizational study report of Rubco Huat Woods Pvt Ltd. Rubco haut woods make use of smart card for recording the time of arrival and departure of the employees.
If there is any additional work, it is treated as over time and workers get double of the usual rate of pay. The second shift of workers will get night allowance of Rs 10 and the third shift workers will get an allowance of Rs 15 each.
REMUNERATION
In Rubco woods, the workers are paid n time rate system. The remuneration of workers is paid as per minimum wage Act of 1948 and the managerial persons remuneration as per the kerala service rule. Company uses the method of paying double wage in case of overtime and triple wage in public holidays.
COMPENSATION
Compensation means something done by the company to make up for the loss, deficiency or a fault. The different components of compensation include the following.
a.
Bonus
Bonus means something given or paid by the company in addition to what is usual
or expected. In other words, bonus is the sum of the money or equivalent given to the employee in addition to the employees usual compensation. Bonuses are provided to the employees in the festival seasons and for occasions happen in the company.
b.
to the employees. The employers contribution to ESI is 1.75% and employees contribution is 4.75% . The employees contribution to the P F is 12% and employers contribution is 13%.
Page 35
WELFARE ACTIVITIES
The following are some well fare activities given to employees;
Labor welfare
Labor well fare funds are given by the company to increase the standard of living.
Canteen
The company providing quality foods to the employees. kudumbasree unit with the company complex runs rubcos canteen.
Rest room
Change room
For the workers to change their dress, a change room is established in the factory premises.
Safety
Safety measures like ear plug, glows, cooling, glass and masks are given to the employees who work in the factory.
LEAVE PROVISIONS Leave with wages will be allowed to the workers as provided for the factories Act. The company allows an annual leave of 12 days to these employees having as service of 240 days, in the plant excluding other leaves. As per ESI Act, 10 days sick leave and maximum of 30 days in the case of hospitalization are also there. HOLIDAY Festival holiday fixed as per national festival Act. Now 13 days are allowed for festival holidays. National holidays will be allows to the workmen on provided for in the kerala industrial establishment Act.
Page 36
RETIREMENT On attain the age of 58, the entire employee made to retire from their service. Various benefits like pension, gratuity are sanctioned on retirement. All the rules regarding retirement in Rubco are governed by standing order. A standing order is an act, which guides the service rules of employees and employers.
2 Demotion
In the case of misbehavior on the part of employee the concerned employee will placed in the lower position. Demotion begins with the reporting the management about the misconduct and management will appoint an enquiry committee and the disciplinary actions for him are depend up on the nature of misconduct. TRADE UNION The trade union is a inevitable part of modern industrial setup. Trade union influences industrial democracy morale and productivity. Rubco haut wood has only one trade union that is Rubco employees union (REU), which is affiliated to CITU. Since there is only one trade union there is no inter union rivalry.
Page 37
Structure of HR department
MD
GM
APO
TIME OFFICER
COMPUTER PROGRAMMER
STENO
JUNIOR CLERK
HEAD GUARD
RECEPTIONIST
TYPIST
SECURITY GUARD
DRIVER
ATTENDER
Page 38
Page 39
An organizational study report of Rubco Huat Woods Pvt Ltd. Book keeping and accounting Internal audit &Profit planning
CAPITAL BUDGETING
Capital budgeting is done at the beginning of the year itself. The requirements of capital will be specified clearly for the approval. During the budgeted year, if there is any further requirement of capital is faced then the proper justification has to be made. If the requirement is seen as important on then approve of the capital is sanctioned the
requirement of additional capital may arise due to change in price of raw materials, packing materials, transportation cost etc
CASH MANAGEMENT
Cash management system is one of the key areas in any business, apart from the fact it is the most liquid current asset can be reduced. Cash is the common denominator to which all current assets can be reduced because that the other major liquid asset receivable and inventory get eventually get converted in to cash.
PLANNING OF FUNDS
Planning of funds is a careful estimate made by the manager about the total funds required, which includes both fixed and working capital requirements. This estimation is done by the observation over the physical activities of the company. ALLOCATION OF FUNDS Providing the funds to proper place at proper time is also an important task to be done by financial manager studies the cash requirements of each department and funds are distributed.
RECORDING OF TRANSACTIONS
Page 40
An organizational study report of Rubco Huat Woods Pvt Ltd. Each and every transactions of the company are recorded first in journal and posted to ledgers.
WORKING CAPITAL
Working capital refers to the amount required to meet the day to day operations of the business the working capital of the company is 80 lakh per month complete rise working capital in the following ways Cash Inventories Accounts receivable.
FIXED ASSET
It is the major part of working of a company. Depreciation of fixed asset is charged on the diminishing balanced method. Vehicle Plant and machinery Generator Building
COST CONTROL
The costs are controlled in raw material and reduction to expense there is limitation of utilization of funds. The company will all ways have the comparison of budget actual.
AUDITING
The accounts of the company should be compulsorily audited. The auditing work is done by m/s Varma & Varma, kannur. There is an internal auditing system which is done by the internal auditor.
TAX STRUCTURE
Company pays sales tax, income tax and excise duty ( 14%) VAT 12.5% to the kerala Govt.in accordance to change in state budget.
Page 41
MD
GM
A/C OFFICER
JUNIOR CLERK
JUNIOR CLERK
Page 42
purchasing has effects on every vital factor concerning the manufacture, quality, cost, efficiency, and prompt delivery of goods to customers. The purchasing department is responsible for the efficient purchase of all goods of proper quality required for the different department. Purchasing is the most important function of material management as the moment an order is placed for the purchase of materials; a substantial part of the company finance is committed which effects the cash flow position of the company. The head of the department is usually known as purchase manager.
Page 43
As a substantial portion of the companys finance is used for purchasing the rubber wood, the purchase department should keep in mind the following specifications at the time of purchasing rubber wood The logs must have a minimum of 24 inch diameter It must have minimum of 4 feet to 8 feet length There must be no tapping mark, bending, nails etc Logs having excess fiber should be rejected
At present suppliers of rubber wood are from; Kerala Karnataka : : Perumbavoor, Taliparanba, Kasargod, Iritty Sullys, Manglore
PURCHASE PROCEDURE
Rubco is following a purchase procedure which is very systematic and scientific. The main objective of this purchase procedure is to ensure all material to confirm to the specific requirements. The following are the various purchase procedure which are followed by rubcu huat Pvt Ltd.
2 Inviting quotations
The company calls tender for purchase of materials from approves and provisional vendor. In responds to this tender the company gets the quotation from various suppliers that they are ready to supply goods by specifying the quality and price.
Page 44
4 Selections of suppliers
After the preparation of comparative statement, this comparative statement is forwarded to purchase committee. The purchase committee select the most favorable supplier by considering the person who is supplying good at least cost with prescribed quality and with in the prescribed time.
Page 45
Managing Director GM
Purchase Manager
Stock Keeper
Page 46
Page 47
An organizational study report of Rubco Huat Woods Pvt Ltd. To coordinate/ follow up with the bank to ensure that the payment has been received in time Maintenance of register of export for each unit.
EXPORT PROCEDURE
Locating the potential buyer by searching through various portal, trade journals, foreign visit export promotion councils and also by responding enquiries. Contract thus by mail, telephone and intimating the company intention. Negotiating prices terms of payment and delivery terms. Sending sample brochure and other requests If price and terms are approved, awaiting their purchase order/ contracts. Filling shipments documents through the(custom home agent). Providing necessary advice to buyer Follow up the cargo till it reaches the destination. Effort for the order. Obtain buyer feedback and product quality.
Page 48
GENERAL MANAGER
JUNIOR SALES
JUNIOR SALES
SALES EXECUTIVE
SALES EXECUTIVE
SALES EXECUTIVE
SALES EXECUTIVE
Page 49
Timber
Page 50
An organizational study report of Rubco Huat Woods Pvt Ltd. Polish materials Miscellaneous
The purchasing department must be very careful regarding purchasing of everything and to ensure that all items conform to their quality standards. This purchasing department must want to take care in the cost of product also.
3. Threat of Substitute
Furniture made of steel; plastic, fiber etc. are threat to companies like Rubco furniture which make their furniture out of wood. Such furnitures are less costly compared to those made of wood and are also available in a number of designs. They are long lasting and easily portable from one place to another. So, there is a chance that customers may get attracted towards such furnitures. So the threats of substitutes are more
5. Existing Competition
At present RUBCO is having no major competitor at its market place and enjoying almost monopoly like situation, Furniture industry in India has started growing in a vast manner. Furniture being a necessity its need have risen to a large extent. Now days they have started developing the industry.
Page 51
7s McKINSEY MODEL
BACK GROUND OF THE MODEL The 7s model is better known as Mc Kinseys 7s. This is because the two persons who developed this model. It is developed by tom peters and Robert waterman. They published their 7s model in their article structure is not organization (1980) and in their books the art of Japanese management (1981) and in search of excellence (1982).
Structure
Strategy
System
Staff
Mckinseys 7s model
Page 52
An organizational study report of Rubco Huat Woods Pvt Ltd. The 7s model is a tool for managerial analysis and action that provides a structure with which to consider a company as whole. So that the organizations problems may be diagnosed and a strategy may be developed and implemented. The 7s of Mckinseys model are: Strategy Structure System Style Staff Skill Shared values
These are the 7 s elements are distinguished in so called hard Ss and soft Ss. The hard elements are feasible and easy to identify. They can be found in strategy statements corporate plans organizational charts and other documentations. The four soft Ss however, are hardly feasible. They are difficult to describe since capabilities values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organizations. Although the soft factors are below the surface, they can have a great impact of the hard structure, strategies and system of the organization.
Strategy
Page 53
An organizational study report of Rubco Huat Woods Pvt Ltd. Actions a company plans in response to or anticipation of changes in the external environment.
HRM strategy of Rubco Huat Woods Pvt Ltd To provide social welfare measures to work force To make the best and efficient To recruit and select right person for the right job at the right time in the right place.
Production strategy of Rubco Huat Woods Pvt Ltd Producing high quality of goods Quick production of products or goods Efficient use of raw materials Minimize the waste in the production process
Financial strategy of Rubco Huat Woods Pvt Ltd Maintaining the perfect accounting and auditing system Reducing the block of capital Maintaining the cash receivables
Marketing strategy of Rubco Huat Woods Pvt Ltd To create new customers To motivate the sales team Making profit through customer satisfaction Develop a pricing strategy
Page 54
Structure
Organizational hierarchy - RUBCO rubber wood division.
Chairman
Managing Director
General Manager
Purchase Manager
Account s Officer
Marketing Manager
Productio n Manager
Store Keeper
Junior Clerk
Time Officer
Sales Executiv e
Shift Engineer
Clerical Staff
Computer programmer
Head Guard
Clerical Staff
Quality Superviso r
Section Supervis or
Maintenance Engineers
Sales Executive
Skilled/unskilled workers
Page 55
System
The formal and informal procedure that support the strategy and structure.
System of HR in Rubco Huat Woods Pvt. Ltd The system oh HR undertaken by Rubco is enough competent for leading their employees towards the ultimate objectives. Below given the diagram briefly explain the system of HR in Rubco.
Resource Requirement
Resource Planning
HR budgeting
Resource allocation
Selection process
Responsibilit y allocation
Performance verification
Appraisal employees
Training on job
Page 56
Skill
The Rubcos recruitment is mainly through advertisement in leading newspaper based on the recruitment of the organization. The MD consulting with administrative personnel officer to decide the number and type of people needed for the organization.
Qualification required for the personnel Technical staff Office staff : ITI/Diploma and 1or 2 years experience : Degree, sufficient computer knowledge, Fluency in English and minimum 2 years Work experience. Managerial personnel : Minimum 5 years of work experience, Qualified from reputed institution and have a relevant knowledge in the latest Computer terminologies and MBA
Style
It says about how the decisions are made and the flow of authority in the organization. The Rubco was using the participative leadership style order to take the decision is taken by the management by discussing with concerned supervisors or workers. The organization is taking the day to day decision such as the quality of output usage of materials, purchasing etc are determined by the production manager to concerned supervisors or workers. So the decision making is decentralized.
Staff
The term staff refers to the way organization introduce young recruits into the main stream of their activities. Around 775 workers are working in the company. They are Specialist / highly skilled workers 35
Page 57
An organizational study report of Rubco Huat Woods Pvt Ltd. Skilled workers 146 Unskilled workers 347 Semi skilled workers 31 Learners 54 Casuals 73 Saw workers 35 Staff (including managerial staff) 54
Shared values
These are the guiding principles, fundamental ideas around which a company is built. It must be simple usually stated at the abstract level, have great measuring inside the organization even through outside may not understand them. These are the main values on which the company is built. These values are shared by the members in the organization. It remains customer focused by providing the quality cost and through manufacturing excellence, adopts a continuous of all organization activity to meet dynamic requirement of customers. It empowers all employees across the organization to achieve total quality. The company aims at customer delight by exceeding expectation blend of qualitycost-delivery of the companys products and services that company provides.
Page 58
SWOT ANALYSIS
The overall evaluation of companys strength, weakness, opportunities and threats is called SWOT analysis.
STRENGTH
Rubco mattress division has lot of product variety and price range. In the company there exist a cordial relationship between employee and top level management and among dealers and distributors. Through effective marketing the rubco products could have acquired with market acceptance and customer preference with in a short period of being established. Rubco has well developed corporate strength; this is one of their major strength. Style of leadership that company is leadership through dedication and coordination. That encourages employees of organization to work towards their organizational goals.
Page 59
An organizational study report of Rubco Huat Woods Pvt Ltd. Strength of the company lies in the quality of products, wide range of products capable to challenge variable environment conditions, goodwill, and customer service, tech advice, marketing intelligence, wide network, and interaction with customers. Effective material management system. Ability of top level management to manage strategic change Good financial management system.
WEAKNESS
The company is newly established. There for most of the employees are fresher. There for company has to be conduct lot of training program to make the employees suitable for the work environment. So large volume of productive time consumed is to make enable there in experienced worker to familiarize with their work procedure to be followed. The weakness appearing most conspicuous to make their product acceptable By customer in the higher price compared to their competitors. Rubco going to expand their market overall in south India but transportation from kerala to other market will be a big burden they are facing in the marketing. When comparing to their competitors they can easily supply goods in to market according to market demand because they are having manufacturing plant in their states.
OPPORTUNITIES
The company has introduced lot of product variety in the market there for customers having lot of alternatives to make their on decision. Rubco rubwood division is not yet fully tapped their hundred percentage utilization of existing machine capacity so opportunities lies there. In factory to undertake new project regarding project diversification. Opportunity of identifying the region where introducing more and more quality products so that product structure can withstand and different regional environment.
Page 60
An organizational study report of Rubco Huat Woods Pvt Ltd. Rubco is not facing high level of competition, so their products having higher demand in the market, it is because of the quality policy that they are also adopting in the production process. Rubco furniture has customer in European countries also.
THREATS
Each and every company facing threats in the market because customers requirements are changing day by day rubco is also facing the same problem A lot of unauthorized companies are came in to existence in the market they are providing product of low quality at few ever price and attracting small customers Lack of raw material is also a major threat faced by the company
Page 61
FINDINGS
o Kerala state rubber corporation has in short span, redefining cooperative sector functions and set the place for the cooperative movement in Kerala today. Rubco was set up in year 1997 with the objective of effectively utilizing the abundantly available rubber in Kerala. o Majority of worker having 6- 10 years of experience o Workers are satisfied with the motivational level provided by the company. o More skill based activities are there in the company so educational qualifications of workers are mostly till sslc and +2.
Page 62
CONCLUSION
During this period I understood that the rubber wood has very good future and its furniture will have demand in the market. It can compete with other wood based furniture product many countries are trying to improve their productivity, in India Rubco board (under Govt of India) plays a major role for helping the farmer for improving their Rubber plantation. During the past few years the production were increased and the states like Kerala. It is a success. The Kerala state rubber cooperation has 5 division and more than 2000 people are working there. The industrial relation atmosphere is cordial and the focus is also on training at all levels including workman.
Rubco is in developing stage, and due to heavy expansion plans taken by the company has declining trend of profit but this position will be recovered in long run
Page 63
BIBLIOGRAPHY
BOOKS KOTLER , PHILIP MARKETING MANAGEMENT RAO , V S P HUMAN RESOURCE MANAGEMENT RAM CHARAN -LEADERS AT ALL LEVELS
Page 64