AN ORGANISATIONAL STUDY

IN
ANNA CO-OPERATIVE SPINNING MILLS LIMITED
ANDIPATTI, TAMILNADU

A PROJECT REPORT
Submitted By
PANDEESHWARAN A
Register Number : 721018631026
In partial fulfilment for the requirement of the award of degree of
MASTER OF BUSINESS ADMINISTRATION
IN
NEHRU INSTITUTE OF TECHNOLOGY
COIMBATORE 641105
ANNA UNIVERSITY : CHENNAI 600025
OCTOBER– 2019
 BONAFIDE CERTIFICATE

This is to certify that the Summer Internship Training Report titled ”AN ORGANISATIONAL
STUDY IN ANNA CO-OPERATIVE SPINNING MILLS LIMITED, ANDIAPATTI,
TAMILNADU”, submitted to Anna University, Chennai in partial fulfilment of the
requirements for the award of the degree of MATER OF BUSINESS ADMINISTRATION is a
record of original research work done by PANDEESHWARAN A during June 2019 to July
2019 of his study in NEHRU INSTITUTE OF TECHNOLOGY, COIMBATORE, under the
supervision and guidance of Mr. S.R.SATHYANARAYANAN Assistant professor, Department
of Management Studies, Nehru Institute Of Technology, Coimbatore and the training report has
not formed the basis for the award of any Degree/Diploma/Associate ship/Fellowship or other
similar title to any candidate of any university.

Mr.S.R.SATHYANARAYANAN Dr.S.NAGANANDINI
INTERNAL GUIDE HOD I/C
Department of Management Studies Department of Management Studies
Nehru Institute of Technology Nehru Institute of Technology
Kaliayapuram Kaliayapuram
Coimbatore Coimbatore

Viva-Voce examination held on……………………………………………….

Internal Examiner External Examiner

Date:
Place:
 ACKNOWLEDGEMENT

I utilize this opportunity to thank ”ALMIGHTY GOD” for helping me to complete the
Summer Internship Training Programme successfully. I am profoundly thankful to
Adv.DR.P.Krishnadas, Managing Trustee, NEHRU GROUP OF INSTITUTIONS,
DR.P.Krishnakumar, CEO And Secretary, NEHRU GROUP OF INSTITUIONS,
Dr.K.P.Arul Shri, Principal, Nehru Institute of Technology, Coimbatore for giving me the
opportunity to undertake this work.

I would like to express my sincere thanks to Dr.S.Naganandini, Director I/C,

Department of Management Studies, Nehru Institute Of Technology, Coimbatore for her
support and encouragement for the completion of my Summer Internship Training Programme.

I extend my gratitude to Mr.S.R Sathyanarayanan, Assistant Professor, Department

of Management Studies, Nehru Institute Of Technology, Coimbatore my faculty guide for
providing valuable suggestions and continuous guidance throughout the execution of the
Summer Internship Training Programme.

I also extend my gratefulness to Mrs.N.Subha, Assistant Professor, Department of

Management Studies, Nehru Institute Of Technology, Coimbatore, and
Mr.A.Balasubramanian, Assistant Professor, Department of Management Studies, Nehru
Institute of Technology, Coimbatore, for giving proper guidance and instructions during this
Summer Internship Training Programme.

I also express my sincere thanks to Mr.C.Vijabarath, Personnel Manager, Anna Co-

operative Spinning Mills Limited Andipatti who allowed to perform the study in the
organisation.

Finally I express my sincere thanks to my parents and friends who have helped me
directly and indirectly to make this organisational study a great success.

PANDEESHWARAN A
 DECLARATION

I PANDEESHWARAN A, do here by declare that the “AN ORGANISATIONAL

STUDY IN ANNA CO-OPERATIVE SPINNING MILLS LIMITED ANDIPATTI,
TAMILNADU” has been prepared by me under the supervision & guidance of
Mr.S.R.Sathyanarayanan, Assistant Professor in Department of Management Studies, NEHRU
INSTITUTE OF TECHNOLOGY,COIMBATORE.

I also declare that the report has not been submitted by me for the award of any Degree,
Diploma or other similar title of any other university earlier.

NAME : PANDEESHWARAN A

REGISTER NUMBER : 721018631026

I certify that the declaration made above by the candidate is true.

PLACE : Mr.S.R.SATHYANARAYANAN
DATE : ASSISTANT PROFESSOR
CHAPTER NO. CONTENTS PAGE NO.
INTRODUCTION
1.1 Introduction to the Organizational study
CHAPTER - 1 1.2 Objectives of the study
1.3 Scope of the study
1.4 Limitations of the study
1.5 Methodology
INDUSTRY & COMPANY PROFILE
2.1 Industry Profile
2.2 Company Profile
2.2.1 History
CHAPTER - 2
2.2.2 Mission, Vision And Business Strategy
2.2.3 Board Of Directors & Top Management
2.2.4 Business Heads
DEPARTMENTAL PROFILE
3.1 Organizational Structure
3.2 Various Departments
3.2.1 Human Resource Department
3.2.2 Finance Department
CHAPTER – 3 3.2.3 Marketing & Sales Department
3.2.4 Production Department
3.2.5 Stores & Purchase Department
3.2.6 Maintenance Department
3.2.7 Electrical Department
3.2.8 Welfare Measures
CHAPTER - 4 4.0 SWOT Analysis
FINDINGS SUGGESTIONS AND
CHAPTER – 5
CONCLUSION
Bibliography
Annexure
TABLE OF CONTENTS
Chapter 1
Introduction
 Chapter 1: Introduction to the Organisational Study

1.1 INTRODUCTION
Organization study is the understanding of the behavior of the organization in all
dimensions. Organization study is mainly undergone to know the actual happenings inside and
outside the organization. It also helps to know how the organization survives in the competitive
world and also how it manages to attain a position in the market. The most important thing every
organization must do is to analyze the market, the product, market segmentation and target
customers.

Identifying and satisfying our customer is an essential element to staying in business in

this modern world of global competition. We must satisfy and even delight our customers with
the value of our products and services to gain their loyalty and repeat business. Customer
identification and satisfaction is therefore a primary goal of process improvement programs.

This study will help to understand the various functions of each department. It will also
gain insight into various management styles, various types of communication used within an
organization (such as using old or conventional methods, new methods using internet and
emails), cultural diversity, types of technology used and also politics, because no organization
can work in complete isolation as they are living in a global village.

1.2 OBJECTIVES OF THE STUDY

 To study and understand about various departments and their functions
 To know the roles and responsibilities of Managers
 To analyze various aspects involved in establishing and running the organization
 To know how to serve customers
 To know how to manage time, provide quality service and plan the overall process
 To study about the organisation structure.
 To perform SWOT Analysis

1.3SCOPE OF THE STUDY

 Understanding they key features of every department
 Able to know the opinion and interest of various personnel working
  Work climate and environment study
 The study will help in giving a good understanding about structure, system, procedure,
and functioning of an organization.
 Relate theory into practice.

1.4 LIMITATIONS OF THE STUDY

 Limited time period to explore the whole organization
 Some important concepts were not revealed by the organization to maintain data
confidentiality
 Difficulty in meeting the officials because of their busy schedule

1.5 METHODOLOGY
The study was undertaken by visiting the plant. For the purpose of study, both primary
data and secondary data were collected and used.

SOURCES OF DATA COLLECTION

The primary data were collected from the employees in the organisation. The secondary
data were collected from the official records, websites of the organization and other publications.
 CHAPTER - 2

INDUSTRY AND COMPANY PROFILE

 CHAPTER-II

INDUSTRY PROFILE AND COMPANY PROFILE

2.1 Industry Profile

A Co-operative society is an association of persons established for the purpose to service
the members in the society. Cooperative aims at development of the idea “ each for all and all
for each”

Co-operative role is to avoid monopolistic tendencies. It produces social changes in

peaceful manner. It improves the dignity of the individual and makes well being of the society.
Cooperative is an organization where a person undertaking associates with others on basis of
equality for the promotion of their economic interest by honest means.

Spinning is an ancient textile art in which plant, animal or synthetic fibers are twisted
together to form yarn. For thousands of years, fiber was spun by hand using simple tools, the
spindle and distaff. Only in the high middle ages did the spinning wheel increase the output of
individual spinners, and mass production only arose in the 18th century with the beginning of the
industrial revolution. Hand spinning remains a popular handicraft.

In Tamil Nadu, there are 18 Cooperative Spinning Mills situated in various Districts,
which are started between 1958 and with an objective of providing un-interrupted supply of
quality hank yam to the Cooperative Handloom Weavers at concessional rates. The installed
capacity of 4.69 lalch spindles have since been downsized to 2.86 lakh spindles.
The 18 Cooperative Spinning Mills are situated in prominent Districts of Tamil Nadu as
detailed below:-
1. South India Cooperative Spinning Mills, Pettai, Tirunelveli.
2. Srivilliputhur Cooperative Spinning Mills, Srivilliputhur, Virudhunagar District.
3. Tiruchendur Cooperative Spinning Mills,Ikazareth, Thoothukudi District.
4. Salem District Cooperative Spinning Mills, Salem.
5. Erode District Cooperative Spinning Mills, Dharapuram, Erode District
6. Katur District Cooperative Spinning Mills, Karur.
7. Kanyakumari District Cooperative Spinning Mills, Aralvaimozhi, Kanyakumari District.
8. Kancheepuram Kamatchiamman Cooperative Spinning Mills, Kancheepuram.
9. Villupuram District Cooperative Spinning Mills, Saram, Villupuram District.
10.Vellore District Cooperative Spinning Mills, Ariyur, Vellore District.
11.Nagapattinam District Cooperative Spinning Mills, Manalmedu, Nagapattinam District.
12.Madurai District Cooperative Spinning Mills, Melur, Madurai District.
13.Dharmapuri District Cooperative Spinning Mills, Uthangarai, Dharmapuri District.
14.Anna Cooperative Spinning Mills, Andipatti, Theni District.
15. Bharathy Cooperative Spinning Mills, Ettayapuram, Thoothukudi District.
16.Ramanathapuram District Cooperative Spinning Mills, Achanlculam,
Ramanathapuram District.
17. Pudukottai District Cooperative Spinning Mills, Aranthangi, Pudukottai District.
18. Misereor Cooperative Spinning Mills, Madurai.
The Government have constituted a Committee to decide the modalities for privatization
of loss making Cooperative Spinning Mills (except Anna and Bharathy) and to begin with, four
non functioning Cooperative Spinning Mills (viz) Misereor, Vellore, Villupuram and Madurai
Cooperative Spinnning Mills would be privatized and the land and building of Vellore
Cooperative Spinning Mills could be used by the Government for setting up of Medical College
and the other assets of the mill may be sold an the proceeds utilised for Voluntary Retirement
Scheme of the workers.

This apart, the committee have also decided to appoint Inspection Officers for the
remaining 12 Cooperative Spinning Mills (except Anna and Bharathy Cooperative Spinning
Mills). Accordingly, Inspection Officers have been appointed in respect of 12 Cooperative
Spinning Mills under Section 82 of the Tamil Nadu Cooperative Societies Act, 1983. Based on
the recommendations of Inspection Officers and the Committee, proposals of the Director of
Handlooms and Textiles is under consideration of the Government.
Out of 18 Cooperative Spinning Mills set up in Tamil Nadu, the following 5 Cooperative
Spinning Mills are functioning at present.
1. Bharathi Cooperative Spinning Mills, Ettayapuram.
2. Anna Cooperative Spinning Mills, Andipatti.
3. Dharmapuri District Cooperative Spinning Mills, Uthangari.
4. Pudukottai District Cooperative Spinning Mills, Aranthangi.
5. Kanyakumari District Cooperative Spinning Mills, Aralvaimozhi.
2.2 COMPANY PROFILE

Anna Co-operative Spinning Mills is a manufacturing company which

commenced its Operation in the year 1984. The company functions with one
plant located in Tamilnadu. The company is involved in the spinning of
cotton.
Name of the company Anna Co-Operative Spinning Mills Limited
Location Kanavilaku, Andipatti, Theni(Dt).
Inaugurated by Mr. M.G.RAMACHANDIRAN
(Former chief minister of Tamilnadu)
Company type Co-Operative.
Founding period VI Plan period.
Date of the registration of the mills
Under the cooperative societies act 22/02/1984.
Category Cotton grower’s cooperative spinning mill.
Licensed Capacity 25000.
Installed capacity 24192.
Original project cost Rs. 724.85;akhs .
Date of commencement of commercial
production 06/06/1984.
Total area of the mills 30.66 Acres.
Raw material Cotton.
Requirement (Per month) 1200 bales per month (Each approx 170 kgs )
Per month (quantity ) 1.60 lakhs Kgs
Value 175 lkhs
Present Count pattern I. Hank yarn: 40’s k
II. Cone yarn: 40’s K, 2/40s

2.2.1 HISTORY OF THE ORGANISATION

The Government of Tamilnadu had sanctioned to establish 5 new co-operative spinning
mills in the state during Sixth Plan Period at Andipatti in Theni district, Uthangrai in
Krishnagiri district, Ettaypuram in Tuticorin distinct and Kamuthi in Ramnad district.
 There are already 13 co-operative spinning mills functioning from1960 in Tamilnadu and
five new mills were established during 1984. Out of the co-operative spinning mills in the state.
Anna co-operative spinning mills is basically a “cotton grower mills” registered under Co-
operative society Act on 22.02.1982 for the benefit of the cotton growers as well as hadloom
weavers. The mill started its commercial production on 06.06.1984 with 7,000 spindles and are
now running with 24,960 spindles.

The mill was established at a total project cost of Rs 724.85 lakhs with 24,960 spindles
capacity.

2.2.2 MISSION, VISION AND BUSINESS STRATEGY

VISION

To achieve excellence in all sectors of the textile industry, from fiber to finished product
constantly striving to be at the forefront of industry and to generate highest possible value for all
stakeholders.

MISSION

 To manufacture international quality yarn, fabric and ultimately the finished textile
garments with the highest level of competitiveness on all parameters.

 To be an ethically responsible organization in all aspects of the business.

 To effectively harness and integrate all available technology across various elements of
the textile chain .

 To cater to product innovation by mastering value added areas like processing and
finishing.

CORPORATE STRATEGY
To emerge as a leader in terms of market share achieved through quality products. The
company believes in achieving a consistent growth by striking a perfect balance between
profitability and social welfare, emphasizing on complete customer satisfaction.
2.2.3 BOARD OF MANAGEMENT
 The affairs of the mill were conducted by the board of directors elected by the
shareholders. The board consists of one chairman and one vice chairman and a
director .
 The managing director is a Government officer from co-operative and is under
control of the commissioner of handlooms & textile.

LABOUR PROFILE
 The mills has employed 225 workers form Srilankan repatriates under rehabilitation
scheme.
 Another 225 workers form Adi dravidars under the special components plan.
 The rest of the workers 54 are local residence employees appointed through district
employment exchange. 12 staff members are also working in technical well as
administrative line.
 The mills required around 370 workers for 90 % capacity utilization.

WORKING HOURS
The mill is running 3 shifts daily.
 First Shifts : 7am to 3.30pm
 Second Shifts : 3.30pm to 12midnight.
 Third Shifts : 12 midnight to 7am

TRADE UNION
 The are six recognized trade unions functioning in the mill.
 The recognition of trade unions are given by the management by conducting elections.
List of Recognized trade union:
1. ATP (ADMK)
2. AITUC (CPI)
3. LPF (DMK)
4. HMS
5. MCF (MDMK)
6. CITU(CPM)

2.2.4 Business Heads

CEO
CEO is the person who heads all functional departments of an organization. He is the
chief decision maker for the business and all departmental heads report in to him.

Chairman
 He is the person who chairs ( heads) the board of directors. He is the highest approving
authority for any business change / decision for the organization. Moreover, he holds the veto in
all cases as well.
Director
A Director may be the departmental head of functional business unit (like a Director of
sales or Director of Operations) ; or director ( as in Board of Directors ) is a person who has
invested in the majority stake of the company’s shares and is part of the board that reviews and
approves the business.
Head
A head may generally be assigned to a SBU(Strategic Business Unit) or to a FBU
(Functional Business Unit). In a general organizational structure, a head would have multiple
directors of related BUs reporting in to him .
GROUP LEADER (GL)
He is the first step of line leadership. GL would have associates agents executives etc.
reporting to them. They provide frontline leadership by leading their respective teams that
conduct daily business operations.
MANAGER
They are mid-senior leadership professionals. They are in charge of handing sub-
functional groups in a specific functional business unit (like Manager- Retail Manger- wholesale,
manager- Digital Marketing etc.) They may have GLs or Assistant Managers reporting to them
and are responsible for planning and execution of business strategies in their scope.
 Chapter 3
Departmental Profile

Chapter 3 : ORGANISATION STRUCTURE & DEPARTMENTATION

PROFILE OF THE ORGANIZATION:

1. The Anna Co-operative Spinning Mills is situated on Theni-Madurai High Road at
Kanavilaku which is 9 km from Theni to Andipatti.
2. The capacity of the mill is 25000 spindles.
3. The organization project cost was Rs.725 lakhs at the time of starting.
4. The total area of the mill is 30.6 acres.
3.1 Organisational Structure
CEO OFFICE SUPERVISOR EMPLOYEE

CEO
The person who heads all functional departments of an organization. He is the chief
decision maker for the business and all departmental heads report in to him.

OFFICE

FACTORY ADMINISTRATION

FACTORY
TYPES OF PRODUCTION SYSTEM
CONTINUOUS PRODUCTION SYSTEM
Continuous production system are those where facilities are standardized as routing &
flow since raw materials or input are standardized. Continuous Production System Industries
may be classified into.
Analytical Industries Synthetic industries

MASS PRODUCTION
This system of production is used by concerns where manufacturing collection arrived on
continuously in anticipation of demand of though the demand of the product may not be
uniforms throughout the year.
JOB PRODUCTION
Goods are produced according to the order of the customers. Continuous demand of such
item is not assured & therefore production is done only when the order for the manufacturing
items are produced from the customers
BATCH PRODUCTION
 Machines & equipments are made available for the nest batch as soon as the productions
on first batch is completed. Both job and batch production are similar in venture and almost have
the same features expect in regard to the quantity of production.
SIZE & CAPITAL INVESTMENT
The scale of operation is small in job mass, medium in batch production, large in mass
production & very large in process production. Process production calls for highest investment
while mass Production.
PRODUTION CONTROL
Routing :
It means route or patch on which the manufacturing operations will travels, establishing
the sequences of operation in advance.
SCHEDULING
It means the arrangement of sequence as per time table.
DISPATCHING
It means setting the productive in motion though the release of orders and instructions.
FOLLOW UP
It means to see whether the work is being carried on according to the plan if there is any
variation. It should be eliminated or adjusted as soon as possible the follows action is performed
in a group called follow–up man.

ADMINISTRATIVE OFFICE
Function of administrative officer:
1. Role of Administrative Officer:
 The administrative officer is in charge for all functions relating to the administrative
office.
 The administrative officer is monitoring , supervising & coordinating the functions of
sections like cotton, yarn , accounts system and etc
 The administrative officer is dealing with payments & receipts and other financial
dealings.
  The administrative officer is dealing with payment & receipts and other financial
dealings.
 Monitoring & arranging the purchases of raw material (cotton) monitoring a cotton price,
marketing trend and arrange for the purchases and related followed actions.
 Supervising and monitoring the registers under the records relating to the cotton stocks
and go down .
 Taking steps in the marketing of yarn.
 Keeping in touch at every movements with the bankers and involvement in financial
management.
2. Role of the Cotton Assistant
 A senior most assistant is handling with this sections.
 Monitoring keen watching the day to day marketing trend and inform the trend to his
higher official.
 Arranging purchase of cotton up country / local.
 Close touch with cotton suppliers traders and identify marketing prices.
 Coordinating with transport agencies to lift the cotton traders through to mails.
 Preparing bales and coordinating the payments to the cotton traders.
 Maintaining registers and records, recording the cotton arrivals and strop the cotton at
mill go down.
 Immediately after the arrival of cotton weighted the cotton bales lot wise and stock at go
down.
 Maintaining the records and registers relating to the cotton waste used and unused
separately.
3. Role of Yarn Assistant
 Maintaining registers of daily production and monthly production.
 Maintaining stock registers separately for cone bags and hank yarn bales.
 Arranging to supply the yarns to the purchasers after receipts of purchase order.
 Contracting (compacting) having regular touch with customers like co-optex, weaver co-
operative societies, Tamilnadu textile corporation .
 Monitoring recording payment from co-optex and other customers.
4. Role of Account Assistant:
 The accounts section consist of the following systems.
 Accountant
 Account assistant
 Cashier
 The account section is responsible for every financial transaction.
 Preparing salary bills to staff members and disbursement .
 Checking their wages bills prepared by the personal department and arrange the
disbursement of wages to the wages to the workers.
 Dealing with all bank correspondents recording payments and receipts.
 Information the financial position of the mills to the administrative officer them and their.
  Preparing statements of accounts every months .
 Arranging to audit the accounts every financial year.
 Coordinating the outside auditors from the department of co-operative audit for the
completion of auditing for the financial year (every year)
5. Role of Computer Assistant
 Computer assistant will maintain all records in the system.
 Watching marketing trend of cotton and yarn through internet.
 Handing the title of all correspondence from the mills.

3.2.Various Departments
The following are the various department in Anna Co-Operative Spinning Mills.
 Personnel department
 Purchase department
 Production department
 Maintenance department
 Marketing department
 Finance department
3.2.1 Human Resource / Personnel Department
PERSONNEL DEPARTMENT

Factory Personnel Time PF and ESI Shift Watch and

Manager Officer Keeper Assistant Time keeper ward (or)
Supervisor
FUNCTIONS OF PERSONNEL DEPARTMENT :
 Maintaining attendance of the workers in three shifts.
 Involving in wages administration that is preparation of wages bills, and overtime wages
bills.
 Maintaining person records files of every employees .
 Maintaining EPF and ESI records of every employees.
 Employee provided fund.
 Extending benefits under EPF and ESI. Employee rate of Insurance.
 Dealing with disciplinary action against wrong doers.
 Involving in redressed of grievances of employees.
EMPLOYEE DETAILS (Types of Workers)
  Permanent workers :
 Non muster roll worker :
 Total employee :
 Women employee
 Male employee
PAID-UP SHARE CAPITAL
S.no CATEGORY TARGETED EMPLOYED ON ROLL AS
ON DATE
1 Sri-lankan repatriates 225 225 41
2 Adi-Dravidars 225 225 65
3 Local residents:
Through Employment - 54 6
Exchange
4 Skilled workers :
ITI qualified - 22

TOTAL 119

INVOLVING REDRESSAL OF DISPUTES AMONG WORKERS AS WELL AS

EMPLOYEES WITH MANAGEMENT :
 Involving in disputes raised by the employees before legal forums.
 Dealing with disputes cases before the court of law.
 Dealing with the functions of canteen.
 Involving with canteen related works.
 Recruiting NMR ( Daily coolies) workers on need based.
 Maintaining records relating to the daily coolies.
 Helping retired workers in getting retirement benefits.
 Preparation of gratuity bills and disbursement.
 Involving in maintenance of welfare measures inn the mill like.
 Supply uniforms.
 Supply of free tea and tiff
 Assistance from labor welfare board.
 Getting loans through employees credit Societies

3.2.2 FINANCIAL DEPARTMENT :

ACCOUNTS OFFICER:
Accounts department is vital in all the organization. All the accounts and money related
activities are done through there accounts department. The accounts department consists of
 Administrative officer
 Account
 Accounts assistant
 Cashier
The accounts department looks after the loan which is obtained by the mill form the
outsiders In the department the accountant contains all the transactions of the mill. The
accountant maintains cash book , journal and ledger, and individual and general ledger.
The annual financial statements are prepared at the end of the financial year. All the
statement and the accounting reports with the account will be prepared at the end period.
These financial statements reflect the financial position and operating strength and Weakness
of the concern.
PROFIT & LOSS OF ANNA CO-OPERATIVE SPINNING MILL:
YEAR PROFIT & LOSS(in lakhs)
2014-2015 64.26(+)
2015-2016 101.89(+)
2016-2017 36.96(+)
2017-2018 45.13(+)
2018-2019 110.32(+)

SHAREHOLDERS:
The mill has shares with individual cotton growers, primary and apex co-operative
marketing societies, and other co-operative weavers ‘ primary and apex co-operative weavers
societies and state government.
Authorized share capital : Rs 600 lakhs.
Value per share : Rs 100/-
3.2.3 MARKETING AND SALES DEPARTMENT :
 Production of the mill is cotton yarn.
 The government of Tamilnadu is implementing FDS(free dhotis and saris schemes) and
free uniform scheme to the school children.
  The cotton yarn required for the above scheme are supplied by the co-operative spinning
mills.
 The government as fixed the reasonable price according to the “yarn marker” to the yarn
supplied by the co-operative spinning mills to skills.
 Nearly 9 months in year production will be supplied to the schedule.
 The remaining 3 months production will be supplied to the co-operative textile
requirement .
 Purchases order are issued by over fax co-operative spinning mills according to their
requirement for the skills.
 The mills supply yarn as per the co-optex purchase co-optex yarn moving in different
places of Tamilnadu.
 Apart from these government scheme the co-optex purchases yarn in different terms
based on their requirement for the supply to the weavers hence, there is no private
marking in co-operative spinning mill. Only supply to the co-operate government
scheme.
 The co-optex is active as a agencies for the implementation of government scheme
require in uniform the sale value bills of settled by the co-optex to the co-operative
spinning mill.
3.2.4 PRODUCTION
FUNCTIONS THE PRODUCTION DEPARTMENT
COTTON WAREHOUSE:
 The cottons purchased are stock in the cotton god own.
 The cotton bales are stocked in lot wise and entered in a register.
 Immediately after arrival of cotton it is weighed bales wise and proper entries are made
and stocked in a proper manner.
MIXING
 The cotton bales are transported to the mixing department , based on the production plan.
 The bales are break and the cotton are spread on the floor.
 Mixing work is carried out manually by employing required on need based.

BLOW ROOOM
 Raw material cotton are feed into the below room machine.
 In this process the dust particles in the cotton are removed.
 The output is below room machine, i.e. the cotton is collected in roll from called as lap.
CARDING

 Blow room machines output is input to the carding department

 The minute dust particles remaining cotton laps are cleared in the carding machines.
 In the process, the from carding machines are called as ‘sliver’
 The sliver are collected in drums or cones.
PREPARTOR DRAWING
 The slivers which are collected in canes drums from the carding department is input to
the drawing machines.
 In the process some silvers form carding are combined together and become one uniform
slivers.
 The outcome slivers in drawing machines are also collected in drums.
 These drums are stored near the simplex machines for further process.
SIMPLEX
  The uniform slivers collected in canes drums in drawing department are feed into the
simplex machines.
 After a process in simplex machines thick soft threads are spun in empty bobbins with
proper twist.
 These bobbins contains layers of threads which are used in spinning department.

SPINNING
 The bobbins form the simplex department are the input to the spinning machines.
 The simplex bobbin threads are simplex bobbin threads are subjected into a process in
spinning machine.
 The soft thick threads are span and converted onto a very thin size yarn.
 The thin sixe yarn are spun into a plastic pumps.
 These plastic pumps with yarn are called as cops.
 Conversions of cotton into yarn is completed in spinning department.
 These yarn are converted into two forms.
 Cone yarn.
 Hank yarn
CONE WINDING

 The cops from spinning department are feted into the cone winding machines.
 After process , the yarn in spinning cops are winded which becomes like a ‘cone’.
 The cones are utilized in power looms.
 Each cone weighted about 2 kgs.
.

REELING
  The cops form spinning department are feed into reels.
 In the reels the yarn is converted into.
 The hank yarn are used in handlooms.

PACKING
 The cones are covered with a polyester cover and packed into a bag.
 A cone bag consist of 40 cones which may be arrow net 50 kgs.
 The Hank yarns are bales from the packing department are stored in yarn god own.
 Bundle weigh 4.54kgs, bale weigh 181.6kgs.

YARN WAREHOUSE
 The cone bags and bales form the packing department are stored in yarn god own.
 Cone bags are numbered and maintained in a register.
 Likely the bales are numbered and enter into a register and maintained in register.
 After getting purchase order form co-opted, the cone bags and bales are lifted.

STATISTICAL QUAITY CONTROL

  The prime duty of the quality control department is to maintain the quality of the product
as per as the norms at each and every stages of process .
 We carry out the following testes in the respective department and if there is any
deviation it will be corrected then and there.

BLOW ROOM
 Lap weight checking
 Lap CV % checking.

CARDING
 Card sliver hank checking
 Card waste

DRAWING
 Drawing sliver hank checking
 Drawing sliver CV %

SIMPLEX
 Roving Hank checking.
 End breakage study.

PINNING
 Count checking
 CSP checking (count strength product )
 End breakage study.

DEPARTMENT STRUCTURE :
 .FM
 AFM Production
 Shift supervisors
 Production assistant
 Department Masters
  Workers
COST OF PRODUCTION:
These are the cost normally in carried in the mill to obtain the final production.
 Raw Material : 62%
 Wages (after paying full wages ) : 8%
 Power : 6%
 Other expenses : 9%
 Stores : 3%
 Depreciation : 6%
 Interest : 6%
 Total cost : 100%

PRICES OF PRODUCTION DEPARTMENT:

Mixing
Blow room
Carding
Drawing
Camper
Simplex
Spinning
Hanks
Cones
Packing
Yarn god own
3.2.5 STORES DEPARTMENT
 The mill has a large store, which in equipped with spare Parts of machineries.
 The store is under the control of factory manager.
 The store is managed by store keeper, assistant store keeper and the helper.
 A purchase committee is constituted for the purchases of spare parts materials required
by the mill.
 The list of material required of the mill are prepared month wise after a elaborate
discussion between FM ,AFM (maintenance) maintenance supervisor and store keeper .
 The indent prepared in present before the mills purchase committee. The administrator is
the chairman of the committee.
 After an elaborate discussion the committee will decide for purchases.
  The central purchases committee at directorate. Chennai identity some of the suppliers of
spare parts. The mill purchases such spares form the suppliers recommended by the
control purchase committee.
 The store maintains proper records for the incoming spare parts and other materials.
 Also maintain proper register for issuance of spare to the department.
 Proper auditing is carried out at the and for every financial year .
 The maintenance department including store plays vital role in the good performance of
the mill.
Purchase Department:
The purchase department involve in two kinds,
1. Cotton (Raw Material )
2. Machinery spare parts, packing material ect ,.
Raw material cotton is classified to two kinds.
 Local cotton.
 Up country cotton.

 The up country cotton is purchased form Gujarat, Maharashtra , Karnataka, Andrapradesh

and etc..
 The mill maintain at least 40 days stock in the mills.
 At Present, as per the direction advice of the Government of Tamilnadu cotton is
purchased only from cotton corporation of India.
 The corporation of India (COI) is a unit of Government of India.
 Hence, the raw material is purchased only from government of India’s organization.
 The rate price are quoted for varieties of cotton by the CCI through internet.
 After assessing the rate, the mill send offer letter to the CCI along with amount.
 After receipt of the offer letter and amount the CCI allots cotton bales to the mills as per
the offer letter.
 If necessary , the mills technical person may go over to the spot and select the cotton
bales.
 After selection of cotton ales, the bales are lifted from the CCI god owns, through lorries
and bring to the mill.
PURCHASE OF MACHINARY SPARES & PACKING MATERIALS :
 The requirement of machinery spares and packing material are arrived once in a month.
 The maintenance department staffs and store staffs are discussed together and prepare
list of requirements, and quantity of the materials needed.
 A purchases committee headed by the Administrator discuss the material to be
purchased.
  After a discussion, the committee may decide the materials which are to be purchased on
priority basis.
 The Materials are ordered to certain approved companies.
 The central purchases committee at head office Chennai has approved some of the
companies suppliers for supply of materials to the Co-operative spinning mills.
 The five co-operative spinning mills has to purchases material only from the approved
companies suppliers.
 The requirement of packing materials are also purchased form the approved companies.
 The packing materials purchased are properly keep at sroe and proper entries are made in
registers.
 The indent are properly signed by the concerned authorities and the materials are
supplied to the departments.

3.2.6 MAINTENANCE DEPARTMENT

Department Structure :
 Factory Manager
 Assistant factory manager (maintenance)
 Maintenance supervisor
 Store keeper
 Assistant store keeper
 Fitter
 Cleaning groups
Function of Maintenance Department
Maintenance work involves in the following area.
 Blow room
 Drawing
 Simplex
 Spinning
 Cone winding
 Reeling
 Packing machineries.

Every department has a fitter and cleaning group for maintenance of machineries .
 There in a agreement settlement between workman and management regarding work load
work assignment in cleaning maintenance of machineries.
  As per schedules prescribed in the works are carried out.
 The maintenance department is responsible for proper running of machineries.
 It is the duty of the maintenance employees to attend repaired machineries immediately
and rectify the repairs.
 Maintenance department co-ordinates with production department as well as quality
control department .
 The AFM (maintenance) looks after all the functions of maintenance department.
 Maintenance supervisor acts as a catalyst at shop floor and motivate the team to attend
further loss of production.

3.2.7 ELECTRICAL DEPARTMENT

Functions of the electrical department :
 The department is functioning under the control of one electrical engineer.
 The electrical engineer is responsible for all works relating to the power house.
 A set of electrical are working in every shifters.
 The electricians are monitoring supply of electricity through the machineries in proper
manner.
 The motor attendance are watching keenly the motor running in the productin
department .
 The generator attendant maintain the generators properly and maintain itin proper
condition and switch on one hours the power fail functions.
 The maintaining lighting arrangements properly inside the mills as well as stret lights
inside the mill campus and administrative office .
 Maintaining all electrical applications in proper manner inside the mill campus.
 Raising indent of the require electrical materials and arrange to purchase a same and
keep at stores for intangible.

3.2.8 WELFARE MEASURES FOR EMPLOYEES IN THE COMPANY:

LABOUR WELFARE FACILITIES

STATUTORY NON-STATUTORY
STATUTORY
EMPLOYEES PROVIDENT FUND ACT
 The mill is covered under employee Provident funds and miscellanies provision Act
1952. The employee contribution is 12% of their wage / salary.
  As per the provision of employees pension scheme 8.33% of management contribution
goes on pension account, the remaining portion 3.67% goes to employee P.F account.
 After attaining superannuation, Retirement that is on completion of 58 year the
employees are getting benefits under this act by getting EPF accumulation and monthly
pension>
 Employees can avail loan / advance form
 Their EPF for purchase of dwelling house, their children’s marriage children higher
education .
FACTORIES ACT
LEAVE WITH WAGES
The mill provides leave with wages to the eligible employees every yare. The leave with wages
is provided to the employees those who has worked 240 days in a calendar year.
CANTEEN:
As per the provision of factories act the mill management running the canteen inside the campus
of mill for the benefits of employees. The food stuffs are being supplied to the employees with subsidized
rate.
DRINKING WATER FACLITIES
The mill provides good potable water through R.O plan (Reverse Osmosis).
PAYMENT OF GRATUITY
The employees are getting as per the payment of gratuity Act 1972 on super annotation
retirement / termination / voluntary retirement .The gratuity is paid at the rate of 15 days salary
per year of service.
Formula for calculation of payment gratuity.
Last pay drawn * total no. of .years service.
NATIONAL & FESTIVAL HOLIDAYS
Employees are being paid wages to the 4 National Holidays and 5 festival Holidays.
 January 26
 May 1,
 August 15
 October 2
5 Festival holidays are declarer to the local festivals)
NON- STATUTORY BENEFITS (FRINGE BENEFITS)
UNIFORM:
Uniform Two set of uniforms are being provided to all workers. Masteries, fitters,
electrician cleaning with 2 TC pants and 4sleeveless , banyans.
STITCHING ALLOWANCE
For 2 pants & 2 shirts = Rs300

WASHING ALLOWANCE
For pants, shirts Rs 10/- per month of other workers Rs 5/- per month.

ATTENDANCE INCENTIVES
Those who worked not less then 24 days in a month are being provided with and
attendance incentives @ Rs1/- per day.

PALM JAGGERY ALLOWANCE

It’s being paid to all workers @ Rs 20 per day every month of along with wages.

TRANSPORTS ALLOWANCE
It is being paid to all workers @ Rs 10/- per day

NIGHT SHIFT ALLOWANCE :

It is being paid to all workers @ Rs 10 /- per day.

CANTEEN:
The canteen is run by the unions. Workers are provided with two tea per shift at free of
cost. Apart from this a free stiffen is given to the employee who are working in full night shifts.
Quality food stuff is supplied to the employees through canteen.

FESTIVAL ADVANCE:
 Rs 5000 is paid as festival advance to every workers which will be recovered in 10
monthly instalments.
REST SHED
Rest shed with TV provisions a TV is provided in the rest shed for the benefit of
employees.

CREDIT PURCHASE OF CLOTH

The employees are permitted to purchase cloth on credit basis form co-optex to the limit
of Rs 2500/- once in a year.

FUNERAL BENEFITS
If an employee happens to die while in services the employee is being paid Rs 3000/- as
funeral benefits.

GROUP GRATUITY SCHEME THROUGH LIC OF INDIA:

The mill has introduce group gratuity scheme with LIC of India as per scheme if
employee die while in service the gratuity the gratuity amount will be calculated up it is late of
retirement.

EMPLOYEE CO-OPERATIVE THRIFT AND CREDIT SOCIETY :

An employee’s co-operate thrift and credit society is running the mills premises for the
benefits of the workers. The society extended credit assistance to the employees up to 1,50,000
as mid term loan.
Employees are also availing short term load form the society to meet out the expenses of
education of children and some other emergencies

FAMILY BENEFITY FUND:

A settlement was arrived under section 18(1) of ht ID Act between the management and
trade unions for the family benefits of the employee.
 As per the provisions of a settlement if a employee died while in service the family
members of the deceased employee will be given Rs 2,00,000 /- be paid by equal contribution of
staff members and workers.

BENEFITS FROM LABOUR WELFARE BOARD

The management helps the employee to get the benefits form labor welfare bard like
reimbursement book of spectacles .
 Chapter 4.SWOT ANALYSIS / Any OTHER ANALYSIS TOOL
4.0 Analysis & Interpretation
Strengths
 Experienced promoters with over 30 years of experience in the industry.
 Products are well accepted in the marker in local
 With the implementation of the proposed project, the company will reap benefits of
economies of scale due to optimum utilisation of the existing facilities.
 Professional set up of organisation with qualifies and experienced employees.
 The size of medical facility give to the company works .

Weakness
 Inconsistency in obtaining various species.
 In significant global market opportunities

Opportunities:
 Estimated 12 % growth in annual demand,
 In significant presence in global market.

Threats
 Internal rising cost of inputs.
 Chapter 5 –Conclusion

Conclusion:
The training has helped me to understand how a mill actually functions to carry out its
day-to-day business. It has provided meaning in the life of a worker.
The training has bridged the gap between the theories which is learnt in the class and the
practical training undergone in the mill.
A firm should properly utilise the available funds available to them . This is the important
function of the FINANCE DEPARTMENT. Proper utilisation of funds will result in increasing
the profit earning capacity of the firm
Good working conditions should be provided to the workers in the organisation. Along
with that required benefits also should be provided to the workers in the organisation like
Pension Schemes, Provident Fund etc. These are the some of the objectives of the HUMAN
RESOURCE DEPARTMENT.
 BIBLIOGRAPHY

Books
1. Harold Koontz and Heinz Weihrich, Essentials of management: An International &

Leadership Perspective, 9th edition, Tata McGraw-Hill Education, 2012

2. Stephen P. Robbins, David A.De Cenzo and Mary Coulter, Fundamentals of management,

Prentice Hall of India, 2012

3. Poornima M.Charantimath, Total Quality Management, Pearson Education, First Indian

Reprint 2003

4. Stephen P. Robins, Organisational Behavior, PHI Learning / Pearson Education, 11th

edition, 2008.

5. M.Y.Khan & P.K.Jain, Management Accounting, Tata McGraw Hill, 2011

6. Sharan J Gerson, and Steven M Gerson. 2008. Technical Writing: Process and Product.

Pearson Education, New Delhi

7. Pannerselvam R, Production and Operations Management, Prentice Hall India,

Second Edition, 2008.

8. Philip Kortler and Kevin Lane Keller, Marketing Management, PHI 14th Edition, 2012

9. Dessler Human Resource Management, Pearson Education Limited, 2007

10. Alexis Leon, ERP demystified, second Edition Tata McGraw-Hill, 2008

11. Hill. Strategic Management : An Integrated approach, 2009 Edition Wiley (2012).

Websites

1) www. Citehr.com
2) www. google.com
3) www.managementparadise.com