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Report On Organizational Study at Popular Industries1 - Intro
Report On Organizational Study at Popular Industries1 - Intro
Report On Organizational Study at Popular Industries1 - Intro
Chapter-1
INTRODUCTION
INTRODUCTION
Organization is a social unit which is deliberately constructed and
reconstructed to seek specific goals. An organization comes in to existence when there are a
number of persons in communication and relationship to each other and are willing to contribute
towards a common Endeavour. The evolution or organization dates back to the early stages of
human civilization when two or more persons began to cooperate and combine together for
fulfilling their basic needs of food, clothing, shelter and protection of life. Thus, an organization
is born when people combine their efforts for some common purpose. It is a universal truth that
an individual is unable to fulfill his needs and desires alone because he lacks strength, ability and
resources. So he seeks the cooperation of other people who share goals with him.
organization and its functional and the operational aspects. Organization study at POPULAR
INDUSTRIES helped me to acquire practical knowledge through personal study and
observation. Apart from analyzing and understanding the recent trends and strategies in different
Industries of POPOLAR INDUSTRIES, the investigation had multi-dimensional focus on the
following areas:
This organization study is useful in getting the quality and performance of the company.
It will help to conduct a detailed study on the structure of the functional areas of the
organization. It also helps to identify the strength and weakness of organization and also helps to
find out the area where the organization should improve. This study also helps researcher to
familiarize with the candle industry and also ascertain the present position of the company.
Secondary data:
It is collected from:
Internet
Annual report
Office records
This study is done by personally visiting the company at Edappally, Ernakulum. All the
primary datas have been collected by structured interview with general manager, managers of
various departments and other personnel including supervisors, workers etc... of the company.
Information about manufacturing process has been collected by observing the functioning of
machines and equipments in the plant. The quality manual, publications of government of India,
ministry of candles, magazines, periodicals relating to the candles industry, internet etc, were the
useful source of the secondary data.
As in- depth analysis on the functional activities of various departments was not possible
As the department heads seemed to be busy, collection of detailed information was not
possible.
CHAPTER-2
REVIEW OF RELATED LITERATURE
Definition of management
In the words of Harold Koontz, management is the art of getting things done through and with
people in formally organized groups. It is the art of creating an environment in which people can
perform as individuals and yet corporate towards attainment of group goals. Thus management
is the process of effective utilization human and material resources to achieve enterprise
objectives.
Subject matter of management
Production management
It is concerned with managerial functions related to the design of the production system and
operation and control of the production system.ie production planning and control.
Financial management
It is concerned with managerial activities related to procurement and utilization of funds for
business purposes.
Marketing management
It deals with planning, organizing, directing and controlling the activated related to the marketing
of goods and services to satisfy the customers needs.
It covers various aspects relating to the employees of the organization such as training and
development compensation, motivation etc.
It is considered as the part of the production function. The objective mainly includes the
procurement of right types of materials at the right time of right quality in right quantity.
Legal function
The legal department may be organized to ensure that the business house abiding by the rules
and regulation framed by the government.
This department organizes publicity campaigns to increase the image and goodwill of the
business in the society.
Organization
2. 2. IMPORTANCE OF ORGANIZATION
Optimum utilization of resources
It facilitates coordination. The activities of the various individual and department are combined
together to accomplish company goals.
Facilitates effective management
It enables people in the organization to work effectively and efficiently. Without proper
delegation it will not be possible to conduct the activities of the organization smoothly and
quickly.
Facilitates growth
Good organizations achieve good progress; this enables the organization to growth and
diversifies.
Chapter-3
INDUSTRY PROFILE
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Today, most candles are made from paraffin. Candles can also be made from beeswax, soy,
other plant waxes, and tallow (a by-product of beef-fat rendering). Gel candles are made from a
mixture of mineral oil and a polymer.
The heat of match used to light the candles melts and vaporizes a small amount of fuel. Once
vaporized, the fuel combines with oxygen in the atmosphere to form a flame. This flame
provides sufficient heat to keep the candle burning via a self-sustaining chain of events: the heat
of the flame melts the top of the mass of solid fuel, the liquefied fuel then moves upward through
the wick via capillary action, and the liquefied fuel is then vaporized to burn within the candles
flame.
The burning of the fuel takes place in several distinct regions (as evidenced by the various
colors that can be seen within the candles flame). Within the blue regions, hydrogen is being
separated from the fuel and burned to form water vapor. The brighter, yellow part of the flame is
the remaining carbon being oxidized to form carbon dioxide.
As the mass of solid fuel is melted and consumed, the candle grows shorter. Portions of the
wicks that are not emitting vaporized fuel are consumed in the flame. The incineration of the
wick limits the exposed length of the wick, thus maintaining a constant burning temperature and
rate of fuel consumption. Some wick require regular trimming with scissors (or a specialized
wick trimmer), usually to about one-quarter inch (~0.7 cm), to promote slower, steady burning,
and also to prevent smoking. In early times, the wick needed to be trimmed quite frequently and
special candle-scissors, referred to as snuffers until the 20th century, were produced for his
Mangalam college of engineering, Ettumanoor
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purpose, and often combined with an extinguisher. In modem candles, the wick is constructed so
that it curves over as it burns, so that the end of the wick gets oxygen and is then consumed by
fire a self-trimming wick.
It is often written that the first candles were developed by the ancient Egyptians, who used
rush lights or torches made by soaking the pithy core of reeds in melted animal fat. However, the
rush light had no wick like a true candle.
Historians have found evidence that many other early civilization developed wicked candles
using waxes made from available plants and insects. Early Chinese candles are said to have been
molded in paper tubes, using rolled rice paper for the wick, and wax from an indigenous insect
that was combined with seeds. In JAPAN, candles were made of wax extracted from tree nuts,
while in India; candle wax was made by boiling the fruit of the cinnamon tree.
It is also known that candles played an important role in early religious ceremonies.
Hanukkah, the Jewish Festival which centers on the lighting of candles, dates back to 165 B.C.
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there are several Biblical reference to candles, and the Emperor Constantine is reported to have
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called for the use of candles during an Easter service in the 4 century.
Middle ages
Most early Western culture relied preliminary on candles rendered from animal fat(tallow). A
major improvement came in the middle Ages, when beeswax candles were introduced in Europe.
Unlike animal-based tallow, beeswax burned pure and cleanly, without producing a smoky
flame. It also emitted a pleasant sweet smell rather than the foul, acid order of tallow. Beeswax
candles were widely used for church ceremonies, but because they were expensive, few
individuals other than the wealthy could afford to burn them in the home.
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Tallow candles were the common household candles for Europeans, and by the 13 century,
candle making had become a guide craft in England and France. The candle makers (chandlers)
went from house to house making candles from the kitchen fats saved for that purpose, or made
and sold their own candles from small shops.
Colonial times
Colonial women offered Americans first contribution to candle making, when they
discovered that boiling the grayish-green berries of bayberry bushes produced a sweet-smelling
wax that burned cleanly. However, extracting the wax from the bayberries was extremely
tedious. As a result, the popularity of bayberry candles soon diminished.
The growth of whaling industry in the late 18th century brought the first major change in
candle making since the middle Ages, when spermacetia wax obtained by crystallizing sperm
whale oil- -became available in quantity. Like beeswax, the spermaceti wax did not licit a
repugnant odor when burned, and produced a significantly brighter light. It also was harder than
their tallow or beeswax, so it wouldnt soften or bend in the summer heat.
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Historians note that the first standard candles were made from spermaceti wax. Also, a
pure spermaceti candle is measure for candlepower. Candlepower is a common term for
describing light output. It is based on sixth of a pound, burning at a rate of 120grams per hour.
In 1834, inventor Joseph Morgan helped to further the modern-day candle industry by
developing a machine that allowed for continuous production of molded candles by using a
cylinder with a movable piston to eject candles as they solidified. With the introduction of
mechanized production, candles became an easy affordable commodity for the masses.
Paraffin wax was introduced in the 1850s, after chemists learned how to efficiently separate the
naturally-occurring waxy substance from petroleum and refine it. Odorless and bluish-white in
color, paraffin was a boon to candle making because it burned cleanly, consistently and was a
low melting point.
This was soon overcome by adding the harder static acid, which had become widely available.
With the introduction of the light bulb in 1879, candle making began to decline.
Candles enjoyed renewed popularity during the first half of the 20 century, when the growth
of U.S oil and meatpacking industries brought an increase in the byproducts that had become the
basic ingredients of candles - paraffin stearic acid.
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The popularity of candles remained steady until the mid-1980s, when interest in candles as
decorative items, mood-setters and gift began to increase notably. Candles were suddenly
available in a board array of sizes, shapes and colors, and consumer interest in scented candles
began to escalate.
The 1990s witnessed an unprecedented suege in the popularity of candles, and for the first
time in more than a century, new types of candles waxes were being developed. In the U.S.
agricultural chemists began to develop soybean wax, a softer and slower burning wax than
paraffin. On the other side of the globe, efforts were underway to develop palm wax for use in
candles.
Todays candles
Todays candle is vastly different from the candles of old, the industry has grown and matured
into a well oiled machine. You can purchase almost any type, size, style, or fragrance of your
choice. And the internet was made it easier to come by candles than ever before. Candles have
come a long way since their initial use. Although no longer man's major source of light, they
continue to grow in popularity and use. Today, candles symbolize celebration, mark romance,
soothe the senses, define ceremony, and accent home decors casting a warm and lovely glow for
all to enjoy.
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In parts of Europe, the middle=east and Africa, where lamp oil made from olives was readily
available, candle making remained unknown until the early middle-ages.
300-1 BC
Qin Shi Huang (259-210-BC) was the first emperor of the Chinese Qin Dynasty (221 -206
BC). His mausoleum, which was rediscovered in the 1990s, twenty-two miles east of Xian,
contained candles made from whale fat. The word zhu in Chinese originally meant torch and
could have the warning states period (403-221 BC); some excavated bronze wares from that era
feature a pricket thought to hold a candle. The Han dynasty (202 BC-220 AD) Jizhupian
dictionary of about 40 BC hints at candles being made of beeswax, while the book of jin
(compiled in 648) covering the Jin Dynasty (265-420) makes a solid reference to the beeswax
candle in regards to its use by the statesman ZHOU Yi (d. 322). An excavated earthenware bowl
from the 4th century AD, located at the Luoyang Museum, has a hollowed socket where traces of
wax were found.
1 AD - 1500 AD
There is a fish called the eulachon or candlefish, a type of smelt which is found from Oregon
to Alaska. During the 1st century AD, indigenous people from this region used oil from this fish
for illumination. A simple candle could be made by putting the dried fish on a forked stick and
then lighting it, The first candles to appear in Europe were made by nomadic tribes in the late
Roman era, but are thought to have been in use much earlier in the colder climates of Northern
Europe, where olive oil was scarce. These early candles were made from tallow or animal fat.
The tallow was put into the melting pot, the poured into molds made of bronze. A trough
underneath would catch the excess wax and return it to the melting pot- For the wick a cord,
usually made from the pith of rushes, was suspended from a horizontal rod over the mold when
the tallow was poured in. after the fall of the Roman Empire, when olive oil become increasingly
scarce, and therefore expensive, the use of tallow candles spread across western Europe. Later
wax candles made from various plant extracts replaced tallow as the preferred source of
illumination.
Mangalam college of engineering, Ettumanoor
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were used, as the smell was usually less unpleasant. The smell of the manufacturing process was
so unpleasant that it was banned by ordinance in several cities. The first candle mould comes
from 15 century Paris.
The first American colonists discovered that bayberries could be used to make candles, but the
yield was very poor. Fifteen pounds of boiled bayberries would provide only one pound of wax.
By the 18th century, the Chinese designed weights into the sides of candles; as such a candle
melted, the weights fell off and made a noise as they landed an a bowl.
The growth of whaling industry in the late 18 century spermaceti, oils that comes from sperm
whale, this was the first major change in candle making since the middle ages. Spermaceti was a
wax obtained by crystallizing the oil of a sperm whale. It became available in mass quantities.
Like wax, the spermaceti wax did not elicit a repugnant odor when burned, and produced a
significantly brighter light. It also was harder than either tallow or beeswax, so it wouldnt soften
or bend in summer heat. Historians note that the first standard candles were made from
spermaceti wax. By 1800 a much cheaper alternative was discovered. Colza oil, derived trom
Brassica campestris and similar oil derived from rapeseed, yielded candles that produce clear,
smokeless flames. The French chemists Michel Eugene Chevreul (1786-1889) and Joseph-Louis
gay- Lussac (1778-1850) patented stearin, in 1811. Like tallow, this was derived from animals,
but had no glycerin content.
Manufacturing of candles
Joseph Sampson was granted a United State patent for a new method of candle making in 1790
(this was the second patent ever granted by the US).
In 1834, Joseph Morgan began to industrialize the production of candles by using a cylinder with
a movable piston to reject candles as they solidified. This more efficient mechanized production
produced about 1500 candles per hour which allowed candles to become an easily affordable
commodity for the masses.
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A chemist called Laurent distilled paraffin from achiest in 1830. Another chemist, Dumas,
obtained paraffin from coal-tar in 1835. Not until 1850 did paraffin become commercially viable,
when James Young filed a patent to produce it from coal. Paraffin could be used to make
inexpensive candle of high quality. Paraffin was also processed by distilling reside left after
crude petroleum was refined. It was a bluish- white wax, which was able to bum cleanly, and
leave no unpleasant odor, something the predecessor could not achieve like the tallow candles.
Although paraffin had a low melting point the discovery of stearic solved this problem. Stearic
acid was hard and very durable which helped elevate the melting point of paraffin. It was being
produced in mass quantity at the end of the 29th century. By this period, most candles being
manufactured consisted of paraffin and stearic acid.
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CHAPTER-4
COMPANY PROFILE
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Type
: proprietorship
Nature of business
: manufacturer
Founded
: 1968
Major markets
: Indian sub continent, East Asia, Middle East & South East Asia
Products
: candles
Level to expand
: National
Popular Industries, the candle manufacturing factory was started 47 years ago, on a fine X'mas
morning of 1968. This factory is functioning in Kerala State (south tip of India), the State blessed
with most comfortable climate and known as "The God's Own Country", in Kochi (formerly
Cochin), and the city known as "Queen of Arabian Sea". Kochi has another specialty; it is the
Industrial Capital and business center of Kerala.
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The candles manufactured in Popular Industries, is marketed all over India and abroad in
the Brand name "POPULAR CANDLES, In this well equipped factory, more than 100 varieties
of candles are manufactured and packed in strong attractive packets. Visit our products page for
more details. Purely refined Paraffin wax manufactured in the best Oil Refineries in India as well
as imported from different parts of the world is the major raw material.
As Popular Industries keeps best quality control and reasonable prices, a good percentage of
internal requirements of candles in INDIA are catered from Popular Industries. Also, Popular
Candles have demand and approval in lots of foreign countries. Popular Industries believe that,
day by day increase of users of Popular Candles is another acceptance and approval on the
candles.
More than 100 varieties of candles are there in the popular candles range. Popular industries
launched the concept of torch candle for the first time in India. During New Year 2000 eve, a
mammoth candle weighing 2000kg was lighted at the famous st.George, sizes, used in festivals
and functions, perfumed candles in different attractive fragrances, color candles used in hotel and
clubs. Utility candles for domestic purpose, birthday digital candles, cup candles, VIP candles
etc...
The important raw material paraffin wax is sourced from abroad, mainly from the refineries
in China, Iran, and Egypt as well as refineries in India like Chennai petroleum corporation and
Assam oil division loc etc. one of the main advantage of the industry is its elaborate factory
building, spacious god owns and facility for parking containers, lories and trucks, loading and
unloading and good employees.
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The firm has got its own vehicles by which they distribute the product to the customers all over
Kerala speedily and promptly. Now, popular industries are governed by its four partners, Mrs.
Sherly Jose, Mrs. Sheeba Babu, Mrs. Jee Joy and Mrs. Lini Baiju, all are of pallipadan house,
Edappally, Kochi-682024. All have equal responsibility in the day to day activities of the firm
and they are attending their duties in the business.
4.2. Vision
To reach the excellent quality standards in the coming year To keep in place with modem
technologies and concepts
To organize supply of materials with minimum cost to maximum extent possible without
any compromise in quality
A world class manufacturing company focusing on all round business excellence through
Total Quality Management System with committed leadership effective team work
delighted customers and satisfied employees in an environment friendly organization.
4.3. Mission
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4.4. Objectives
Increase sales of value added item by 20% from the existing level
Since the firm started in 1968 they are supplying the products to various customers all over the
India gradually or super market departmental stores and civil supply stores and thus the business
expanded to present stage. They appointed district wise distributors all over India. They are
placing orders for bulk quantities and taking the product from factory god owns. But the
government departmental markets are directly placing orders and the company transports the
goods to their god owns. The financial statement show attached show the statement of the
industry. But in some years the unit has to control its production and sales subjects to the unit
and the unit they tried to prevent some harms from loss. In such periods small full in turnover
and net profit can be seen. But at the present the unit has overcome all the problems and runs
smoothly.
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and already existing distributing network and also by their financial standing and available
infrastructure. They pledge their sincere and dedicated efforts from their heart to active target
unlimited.
ITEM.
250 gm.
215 gm.
170 gm.
150 gm.
80 gm.
HEIGHT. DIAMETER.
20.5 cm
18 cm.
21 cm.
19 cm.
18 cm.
1.75 cm.
1.7 cm.
1.5 cm.
1.3 cm.
1.0 cm.
BURNING TIME
4 hours
3 hours
2 hours
1.5 hours
1 hours
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Torch candle
This candle is in cylindrical shape and is available in seven attractive colors.
The small| metal top fixed on the candle gets warm by the flame and helps to
burn in an equal level and also prevent flow of melted wax. The metal part can
be pressed by hand according to the melting and burning of candle.
If the candle is kept lighting in a place ,where we cannot attend it, it is better
to enlighten the torch candle, removing the metal top to avoid improper burning
in the absence of the pressing down the metal top.
Burning time 15 hours, Height 21.5 cm, Diameter 5.5 cm, Weight 460 gms.
Cup candle
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Party candle
Digital Candle
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Festival Candle
This candle is used during festival celebrations. This model is made to order.
Twisted Millennium
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Twisted Tower
These models are available in different colors. And are not available readily, only made as per
your order.
Coconut shell
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.
This candle is available in different attractive colours. Burning time
6 hours, height 23cm, diameter 2.5cm, weight 100 gms. Contains 6 Nos. in a packet.
OTHER PRODUCTS
Perfumed Candle
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Grotto Candle
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Decorative Candle
Thulabharam Candle
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Wedding Candle
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ORGANISATIONAL STUCTURE
35
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Chapter-5
DEPARTMENT PROFILE
37
HR department
Finance department
Production department
Marketing department
Purchase department
Store department
38
120
HR department
25 workers
Finance department
20 workers
Production department
30 workers
Marketing department
18 workers
Purchase department
15 workers
Store department
12 workers
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Workers and management sit across the table and negotiate their demands and rights. The
company has an efficient administrative department which carried out the several functions.
Conciliators Role.
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Employee remuneration
g) Bonus
h) Statutory rules for employees
i)
Leave rules
j)
Shifts
k) Employee welfare
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Structure of HR Department
(Fig. No: 5.1)
Director of HR
Personal
Assistant
Deputy Director of HR
HR executive staff
development
HR Manager
Administration
Contracts
& Payrolls
HR Manager
Recruitment
HR Manager
Employee
relations
Recruitment
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Finance is the life blood of business. Finance department consists of all the managerial activities
of raising funds and effective utilization. Finance department lies in decision making area of
investment, finance and dividend. Recruitment and promotion in production are the activities of
H.R Department. But it requires the payment of wages, salaries and other benefits; these are done
by finance department. Finance manager is the head of finance in POPULAR. He decides when
and where to acquire funds to meet firms investment needs. He should determine the proposition
of equity debt. The finance department should strive for obtaining the optimum capital structure
for the organization.
Functions of Finance Department
There are 20 workers in finance department. The activities expected from a finance department
cover a wide range from basic bookkeeping to providing information to assisting managers in
making strategic decisions What to expect from your finance department will depend largely on
factors such as how much involvement the owner/manager has in the organization.
At the base level, your finance department will be responsible for all the day to day
transactional accounting for the business. This will include the tracking of all transactions and
the management of any government reporting. In very small owner-managed businesses this role
is often filled by a family member with accounting experience. An outside accounting firm is
usually used for annual financial statements and returns. In larger organizations this role will
extend right through to preparing the financial statements with an external auditor engaged for
assurance purposes.
The finance department is also responsible for management of the organizations cash flow
and ensuring there are enough funds available to meet the day to day payments. This area also
encompasses the credit and collections policies for the companys customers, to ensure the
organization is paid on time, and that there is a payment policy for the companys suppliers. In
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most organizations there will be some form of forecast prepared on a regular basis to
systematically calculate the ongoing cash needs.
Raising short term loan or credit from bank and other financial institutions
Preparation and implementation of cost reduction and cost control programs In addition
to the above mentioned works
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General Manager
Manager(Finance)
Manager(Accounts)
Assistant Manager
Assistant Manager
Executive
(Bank)
Executive
(Data Entry)
Executive
(Tax)
Executive
(General)
Cashier
Manager (finance) - managing and controlling the financial requirements of the company.
Assistant manager (finance) - helps finance manager to find the sources of finance and
how to manage it properly.
Assistant manager (accounts) - helps accounts manager to collect relevant data to prepare
book of accounts.
Executive (bank) - deals the transactions with bank Executive (data entry) - maintaining
all data in a data base Cashier - collect cash from creditors
Executive (tax) - calculate the amount to be paid as tax and keeping information about
the payment of deferent taxes
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There are 30 workers in production department. Production is the process by which raw
materials and other inputs are converted in to outputs. Among all functional areas of
management, production is considered to be crucial in any organization like popular industries
mainly the production of candles takes place under the production department.
a. Design of product
b. Design of production system
c. Production planning and control
d. Layout of plant
e. Selection of location
f. Selection of plant and equipment
g. Research and development
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General Manager
Assistant
Manager
Assistant
Manager
Shift in
charge
Jobber
Preparatory
in charge
Maintenance
Electrical
engineer
Helper
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Marketing manager is the one who decides the marketing strategies for every
major decision, which effects marketing. But while making some strategic and important
decisions, approval of the Managing Director is required after collecting the orders, Marketing
Managers forward their order to Production Department. Marketing Manager and Production
Manager sits together and decides the production plan.
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Marketing Policy
This company has a strategic marketing policy. The company mainly targets its
customers and promotional activities are based on the above aspects. The company doesnt
entertain any middle man. They deal directly with their dealers. The company is following a
hierarchical channel of distribution.
Company
Dealers
Consumers
Marketing Function
A popular industry has a dealers network of more than 2500 dealers spread all over Kerala.
The sales of customer goods are concentrated on Kerala, Tamilnadu, and Karnataka. In addition
the company has direct outlets in Kerala and Tamilnadu.
Dealership is allotted only after assessing the credit worthiness, efficiency, and the products are
delivered through the van of the company either at the dealers goes down or at the dealers show
room.
The company is selling their candles as such to various candles exporters to Mumbai,
Bangalore, Delhi, Chennai, Calcutta etc. 75 % of the sales is done through authorized agents on
commission basis and balance is through direct marketing. The candles manufactured by the
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group under the brand name POPULAR INDUSTRIES are accepted all over the world
Marketing Strategies
The marketing department is one of the efficient and effective departments in popular. This
department is always vigilant about its environment and very conscious about the market
potential, major competitors strategies, weaknesses etc. Maintaining the efficiency and
effectiveness the top management appointed a General Manager for marketing department. The
present GM (marketing) is an experienced management professional.
In the case of all major companies, the margin is very high when they sell their products to
dealers. However, in the case of popular industry the margin is comparatively low. The major
problems of competitors products are poor quality Compared to other products, most customers
choose popular brand because of its high quality despite of its a bit high pricing.
Market Segmentation
Co-Ordination of Marketing Activities All Sales Executives is
directed to report to the Assistant Managers (sales) every day. The Assistant Manager and the
Marketing Manager are in constant touch with all Sales Executives who are in the field. All Sales
Executives are expected to submit the Daily Sales Report (DSR) on all Mondays. On all
Mondays there is a meeting of all personnel in Marketing Department preceded over by the
General Manager. In this meeting all the activities and achievements of the departments are
discussed, new plans and strategies to increase sales are formulated and other issues connected
with marketing are discussed. Show Rooms the Company has showroom sales in addition to
sales to its authorized dealers and franchisees. There are about 20 show rooms all over in Kerala.
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Channels of distribution
Producer
consumer
Producer
retailer
Producer
wholesaler
consumer
retailer
consumer
General Manager
Marketing
Manager
Internal
Communication
Employer
Outreach
General
Outreach
Media
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The Purchase manager reports to the General Manager and Managing Director. The Purchase
manager coordinates the entire purchase activities. In case of local purchase or minor items
which are frequently required, it is the responsibility of the purchase officers to ensure the timely
procurement of materials as the purchase requisitions issued by the stores when the items of
materials have reached the re-ordering level.
To make continuous availability so that there may be uninterrupted flow of material for
production
To develop alternative source of supply so that material can be purchased from those
alternative source if particular supplier fails to supply the material
To adopt the most advance method of purchase to ensure smooth delivery of material
from supplier and to avoid the risk of any dispute and financial loss.
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Purchasing procedure
1. Identifying the materials
2. Exploring the sources of suppliers
3. Issuing purchase order
4. Receiving and inspecting materials
5. Checking and passing of Bills for payment
Manufacturing capacity.
Reliability of suppliers.
Price quoted.
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Secretary
Purchasing
Agent
Contract
Section Clerk
Data Entry
Clerk
Bid Section
Lead Clerk
Order Section
Lead Clerk
Bid Section
Clerk
Order Section
Clerk
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The stores department is headed by store manager. He is assisted by four persons; two in
general shift and one each in other two shift. The stores manager is reporting to the general
manager storage of all items of raw materials including sizing chemicals, spare parts, electrical
items, lubricants, tools, office stationery packing materials, etc... Are the responsibility of the
stores department .functioning of the stores department is controlled or administered by the
stores manager. Materials storage is planned by the stores manager with the help of the
purchase production department, yam and packing materials are stored in the production
department go down and packing section respectively, due to lack of sufficient space in the store
and to facilitate easy handling both the items .but the stores department controls the issue of both
these items.
When particular item of raw material spare parts or tools are required for production, the
supervisor of the concerned section of the production department issues a material requisition.
On receipt of the materials requisition note or material indent, the stores manager sees whether
the item demanded in stock in the stores.
If the required item is sorted in the stores, to the concerned department or section and the
acknowledgement for the same is obtained and field in the stores. If the particular item or
material is not available with the stores or the same has re-ordering level, the stores department
informs the purchase department and issuing purchase requisition.
The quantity, quality and other specification of the item issued are recorded in the issue are
recorded in the store ledger control account, prepared and maintained by the stores. Issues of
packing materials are recorded in the stores ledger control account even though they are not
stored in the stores the store department is fully computerized.
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A special software package 5 designed and installed for inventory management in stores. All the
receipts and issues are recorded in the company. ABC analysis of inventory is done regular basic
physical stock taking is done once in every month by the stock taking by the statutory auditor.
The stock verification is done independent of the store keeper and stores manager.
All stock of raw materials and spare parts are stored in assigned areas only .Access to those areas
is restricted. All stock of raw materials, spare parts, tools, etc are insured against fire and hail
damage. A record is maintained for the insurance policies are duly complied with perpetual stock
records are kept for races materials, stores, spares, work in progress and finished goods these
records are periodically reconciled with accounting records.
The company has a materials control system, which ensures that right quality of materials is
available in the right quality at the right time and right place with the right amount of investment.
It is a, but at the same time minimizing investment of funds. Because materials constitute such a
significant part of product cost and since this cost is controllable. The comprehensive frame
work for the accounting and control of materials court designed with the objective of maintaining
materials suppliers at a level so as to ensure uninterrupted production company has proper
planning, purchasing, handling and accounting for materials. Two levels of material control trust
in the companyquality control and financial control.
Production manager and stores manager are primarily interested in quality control, because it is
their responsibility to see that there should be no stock out problem. Finance manager, on the
other hand is interested that too much money should not be invested in materials and every rupee
spends on materials should be effective and efficiently utilized.
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The following are the main techniques of material control used by the stores
department level setting,
The company does not have any stock in public warehouse or with consigns.
Some stocks are lying with job workers, which are given to them for processing.
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Manager
Store
Manager
Shift in
Charge
Store
Keeper
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Chapter-6
SWOT ANALYSIS
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Strength
1. Largest manufacturer of candles products in Kerala
2. Effective distribution channel
3. Products are benchmark for other company
4. Better Employee - Employer relationship
5. No trade union
6. Highest market share for candles
Weakness
1.
2. Untrained employees.
3. Huge variations in the incentives with change in season
4. The organization does not have any ERP in place
5. Non utilization of full capacity.
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Opportunities
1. India with large candles cultivation has a great scope in candles market
2. Growing market demand
3. Increase opportunities in export market due to globalization
4. Availability of land for expansion
5. Expansion to rural areas.
Threats
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Chapter-7
FINDINGS
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Findings
I am able to find out areas of strength, opportunities, weakness and threats of company.
It also helps me to know more about the industry with the new scope and trends.
This company has a good market in both inside and outside the country.
Majority of the people living in our country are from middle income group.
There is no trade union exist in the organization because of the good relationship between
employees and management.
Can venture into more and more candles as the distribution channel is strong
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Chapter-8
SUGGESTIONS
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Suggestions
Increase the promotional budget in the form of scratch &win, Buy one Get one in the
fancy candles to increase the market share.
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Chapter-9
CONCLUSIONS
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CONCLUSION
The study was conducted at POPULAR INDUSTRIES Edappally. The project work titled
organizational study' was an attempt to study about the organizational structure and the
department functions and to make some recommendations and suggestions for the improvement
and development and smooth functioning of the organization. The data with regarded to the
study collected from the popular industry helps to understand the process of production of
candles.
The present study entitled organizational study on popular industries" thrown a light on
the various aspects of the company. Each department in popular industry was analyzed and I
came to know that various processes are carried out in each department and that are controlled
and monitored by efficient and skilled department heads. The study gives information about
various departments, products, manufacturing process, organizational structure of the company,
and it gives a good knowledge about the market position of the company. The co-operation and
interaction extended by the employees and management of popular industry have made it
possible for the depth organizational study which would be used to the research in the future.
There have been certain drawbacks which have been studied at appropriate places and
suggestions have also been made.
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Chapter-10
BIBLIOGRAPHY
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www.candlesindustry.com
www.popularindustries.com
Company Manuals
Company Profiles
Marketing Management
Production Management
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