CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION:
Organizational studies, sometimes known as organizational science, encompass the
systematic study and careful application of knowledge about how people act . Organizational
studies sometimes are considered a sister field for, or over aching designation that includes
the following disciplines; industrial and organizational behaviour, human resources
management.

An organization study helps the management studies to gain practical knowledge and
experience and to achieve higher management excellence. Studies have only theoretical
knowledge that they learn from the classroom. They get first hand knowledge about activities
and functions of various departments in an organization.

Whenever people interact in organizations, many factors come into play modern
organizational studies attempt to understand and model these factors. Like all modernist
social science, organizational studies seek to control, predict, and explain. There is some
controversy over the ethics of controlling worker's behaviour, as well as the manner in which
workers are treated.

A spinning mill is a factory housing powered spinning or weaving machinery for the
production of yarn or cloth from cotton, an important product during the industrial revolution
when the early mills were important in the development of the system.

The mechanization of the spinning process in the early factories was instrumental in
the growth of the machine tool industry, enabling the construction of larger cotton kills
limited companies were developed to construct mills, and the trading floors of the cotton
exchange in Manchester, created a vast commercial city. Mills generated employment
drawing workers from largely rural areas and expanding urban populations. They provided
incomes for girls and women's.

The cotton mill, originally a Lancashire phenomenon, was copied in New England
and later in the southern status of America. In the 20 th century, north west England lost its
supremacy to the United States, then India and subsequently to China.

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1.2 INDUSTRY PROFILE
Spinning is a conversation of fibers in to yarn. These fibers can be natural fibers
(cotton) or manmade fibers (polyster). Spinning also entails production of spinning is yarn
(yarn that is not made from fiber). Final product of spinning mill is yarn. Cotton value chain
starts from ginning that add values to it by separating cotton from seed and impurities.

The Indian Textile and Spinning Industry

The Indian textile industry is one the largest and oldest sectors in the country and
among the most important in the economy in terms of output, investment and employment.
The sector employs nearly 35 million people and after agriculture, is the second-highest
employer in the country. The Indian spinning industry is an integral part of the Indian textile
industry.

 India claims to be second largest manufacturer as well as provider of

cotton yarn and textile in the world.
 India holds around 25% share in the cotton yarn industry across the globe.
 India contributes to around 12% of world’s production of cotton yarn and
textiles.
 India covers 61% of the international textile market.

Market
The world cotton cultivation area and cotton production are estimate at around 30-31
million hectares and million tons respectively. The biggest cultivators of cotton are America,
India, China, Egypt, Pakistan, Sudan, Eastern Europe. India is the third largest producers of
cotton after USA and China. USA has a considerable share in world exporters. India and
China both fall short of their domestic and are net importers.

Costing for a Spinning Mill

It is better to review the basics concepts, costing methods and techniques and
elements of costing before we work out a costing for a spinning mill. Cost accounting is a
system of determining the cost of products or services. It has primarily developed to meet the
needs of management. It provides detailed cost information to varies levels of management
for efficient performance of their functions.

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 Cost accounting is not restricted to past. It is concerned with the ascertainment of
past. Present and expected future costs of products manufactured or services supplied cost
accounting provides detailed cost information of various levels of management for efficient
performance of their functions. “ A cost is the value of economic resources used as a result of
producing or doing the things costed”.

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1.3 COMPANY PROFILE

Having created a niche for ourselves in textile industry we got courage to step forward
and lay our footsteps into industry by establishing

a paper plant namely Subburaj papers (p) Ltd at Mukkudal with 320 tpd for writing&
printing purpose.

Rapid and successful growth of the group since inception is due to dynamic
leadership of experienced directors and their die hard attitude. Enormous investment in the
field of technology. Skilled manpower and our overall ability to adopt world wide
technological determined us as one of the best yarn producer delivering value added cotton.

Prompt delivery of quality products made us are reliable concern for our customers.
According to the adage “Hard work never fails” yarn our commitment to work is rated and
we are honoured with the valuable TUV certificate for ISO 9001 &ISO 14001.

The Group’s vision has been to produce the finest of yarns using quality materials. The
management and staff work deliberately to serve customers with the best quality yarn.

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Established of company : 1994

Address : Sanker Nager , Tirunelveli

Tirunelveli (Dist)

PIN : 627357

Phone& Website : 0462-2900216 ,

WWW.subburajgroup.com

Name of the chairman : Mr. V. Subburaj

Name of the MD : Mr. Arun K Subbiah

1.3.1 Vision

The vision statement of the mill is explained by

“Satisfies the customer needs and demands by the ways of promoting a high quality of
cottons are available in the market.

1.3.2 Mission

The mills have its own mission statement as

“To increase the volume of profit by reducing the wastage in the production processes much
as possible”.

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1.3.3 Organization Structure

The organizational functions of the mill is divided into five namely,

 Production wing
 Quality control wing
 Engineering wing
 Maintenance wing
 Accounts and finance wing
 Administration wing

PRODUCTION WING

The major activity concerned in the mill is production of yarn raw Cotton. In the
machineries are equipped to produce yarn from the count range 305 to 1005. The asst.
Spinning Master (Maintenance &Production) is in charge for the production wing. The
supervisors in the production will look after the process of production in different stages.

6 staff and 540 workers are working in production wing.

QUALITY CONTROL WING

The main responsibility of this wing is to check the quality of yarn and quality of raw
materials. Asst. Spinning Master (Quality control) is in charge for this wing. All the
incoming raw materials and outgoing yarn are checked in quality of view. In this wing.
Nearly 10 staff are working.

ENGINEERING WING

This wing takes care of all electrical equipment and fittings in the organization
.An electrical engineer heads this wing. A group of 21 workers re worked in this department
under the Electrical Engineer.

MAINTENANCE WING

This wing is functioning under the head of Asst. Spinning Master (maintenance).This
wing taking care of maintenance of all machineries in the mills. This will take measures to
maintain the machinery in good working condition. One staff and 68 workers are functioning
in this wing.

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ACCOUNTS AND FINANCING WING

The finance and accounts wing is playing an important role in organization. This wing
maintains a systematic record of the daily events of business .It also maintains records of all
financial transactions to find out the profit or loss during the year ,and to know the correct
financial status of the mill. All payments and receipts are taken care by this wing. The
controller of accounts heads this department and three staffs are working in this department.

ADMINISTRATION WING

Administrative manger is in charge for administrative wing. This department carries

on purchases. Sales stores and other administrative functions 31 staffs are working in the win.
All the department are under the direct control and supervision of the managing director the
administrative manager and concerned department head shall be consulted by the managing
director in all matters, where ever deemed necessary and their comment shall be consider
while farming a policy decision.

Count and type of products

Both hank and yarn product is difficult on count value. The company has producing
which types of count wanted by their customers. Based on their customers demands they are
producing the counts.20s, 40s, 42s, 50s, 60s, 64s, 72s, 120s. Kumar spinning mill private ltd,
company main product is yarn only. This yarn will be used for weaving cloths. And so it is
not a consumer product, it is an industrial product. They are converting cotton in to two
products.

That is:

Hank yarn

Cone yarn

Hank yarn:

Hank yarn is used handloom production of silk sarees, cotton sarees etc.

Cone yarn

Cone yarn is used for weaving cloth. It is a material of cloth production

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1.3.4. ORGANIZTIONAL CHART:

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1.3.4 PRODUCTION PROCESS:

Mixing

Blow room

Carding

Drawing

Comber

simplex

spinning

Auto coner

PROCESS OF MANUFACTURING

The Subbu raj spinning mills pvt ltd. is processing with its Licensed capacity

MIXING:

Mixing is the first and important process in the spinning process. Mixing is the process
by which different grade of three types of fibres is kept together.

Types of fibres:

1. viscose

2. polyester

3. cotton

BLOW ROOM:

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 Before going to different machines used in blowroom process , it is a essential to
know about various blowroom processes.

The basic blowroom operations includeinclude:

● Opening the bales of fibre and making cotton tufts as small as possible.

● cleaning the fibre removing all dirt,dust and waste materials from it.

● blending and mixing is essential to remove yarn quality.

● removal of micro dust particles.

● feeding to carding machine.

CARDING

From blowroom through chute feed into the carding machine. the raw materials (cotton ,
polyester, viscose) is subject to the action of sharp wire points of licker cylinder , doffer and
flatter resulting in the further removal of waste (short fibre) after processing in , comes out in
the cane .

DRAWING

On the drawing frame, a uniform silver lab is produced – by 6 card silver and drafting
them proportionately. Here parallelization of fibres is achieved and this process is repeated
twice for carded yam and the silver lab is then fed to the speed frame.

COMBER:

The combing process is normally used to produce smoother , finer , stronger uniform
yarns. therefore , combing is commonly confined to high grade , long stable and natural
fibres.

SPINNING:

spinning is the process of winding together of drawn out strands of fibre to form a
yarn and is a major part of the textile industries. spinning is used in manufacturing various
textile fibre , ring , rotor , air jet are different types spinners used in the textile industries.

AUTO CONER :

Funtions of Autoconer machine :

● To remove yarn faults.

● To improve the quality of yarn.

● To wax the yarn during winding process.

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 ● To make bigger package from ring bobbin in order to get continuous length of
yarn on cones for weaving/knitting processes.

PACKING:

Packing is the final process of spinning Mills. In this process also check the quality ,
weight of the cones and finally packed.

Packing weight measurement :

● 60 kg per pack.

● 1.5 kg per cone.

1.4 PRODUCT PROFILE

Subburaj Group is one of the most prominent producers of value added yarns to
worldwide markets. The group is established at Tirunelveli in 1994, with clear vision, to cater
the raising needs of textiles industry with finest quality yarn.

Our group comprises of Subburaj Spinning Mills (P) Ltd, Subburaj Textiles mills (P)
Ltd, Unit I and II, Subburaj Processing Unit, Subburaj Cotspin Mills (P) Ltd.

Having Created a niche for ourselves in textiles industry we got courage to step forward
and lay our footsteps into paper industry by establishing a paper plant namely Subburaj
Papers (P) Ltd at Mukkudal with 320tpd for writing & printing purpose.

Rapid and successful growth of the Group since inception is due to dynamic leadership of
experienced directors and their die and hard attitude. Enormous investment in the field of
technology, skilled manpower and our overall ability to adapt world to adapt worldwide
technological evolution determined us as one of the best yarn producer delivering value
added cotton yarn.

Prompt delivery of quality products made us a reliable concern for our customers.
According to the adage “Hard work never fails” our commitment is rated and we are
honoured with the valuable TUV certificate for ISO 9001 & ISO 14001.

The Group’s vision has been to produce the finest of yarns using quality materials. The
management and staff work deliberately to serve customers with the best quality yarn.

11
 CHAPTER 2
FUNCTIONAL DEPARTMENT

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2.1 QUALITY CONTROL DEPARTMENT:-

The main function of this department is checking the quality and also
maintains the CPS (count, strength, Product) level. Quality control is the
one of the important department because less quality product cannot stand
in the market. Quality control process is done in eight sections. This
department is fully organized by one supervisor and one assistant.

There is a statistical quality control department to check the quality

of the yarn. The quality policy of the company is “To manufacture and
supply yarn in conformity with agreed specification maintaining delivery
schedule to the full satisfaction to its customers”. The company aims at
continual improvement of quality of yarn.

The measures adopted are:

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 1. By ad hearing to an effective quality management system.
2. By creating awareness among all the employees about the
important of quality measurement system.
3. By creating most congenial and healthy working
environment. The quality department supervises the
quality from the blow room to the winding section.

The quality department in order to maintain the quality of cotton which is

in bale form, conducts certain tests:

4. The test to find out sample length.

5. Strength test.
6. Fiber fitness test.
7. Quality tests are carried out in the mills some are send to
Regional lab.

Duties

1. Maintaining the quality level as per standard.

2. Check the wrapping that means moisture level.
3. Maintaining the count level.

2.2 MAINTENANCE DEPARTMENT:-

The aim of the department is that the machine should not be stopped
at any unnecessary even all process are done in 15 days once. Machine
condition is important for every organization because it is depend upon the
product quality level .This department maintains the machine under seven
sections they are blow room, carding, drawing, spinning, winding and
reeling.

Blow room:-

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 In this section the workers are involved in the process of
lubricants, greasing and oiling for all machines and also replacing the worn
out spares and belt. Some preventive maintenance steps are taken as per
schedule like.

Changing the oil and gear box - Once in a year

Cleaning the pedals - Once in three months

Carding:-

In this section the workers are done in the process of cleaning,

greasing, oiling and also replacing the worn out spares and belt .And also,

Half setting - once in every month

Food setting - once in three month

Changing the gear box - once in a year

Replacing the wire - once in a year

Drawing:-

In this section the workers are included in the process of cleaning,

greasing, and oil changing. And also,

Pressure checking - once in every month

Cots and buffing - once in the month

Simplex:-

In this section the workers are included in the process of cleaning,

greasing, and oil changing. And also,

Buffing - once in 5 months

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 Collar cleaning - once in three months

Greasing - once in every month

Spinning:-

In this section the workers are included in the process of cleaning,

greasing, and oil changing, And also,

Changing the ring traveller - once in ten days

Changing the spindles oil - once in a year

Checking the drafting unit - once in six months

Checking the pressure and buffing - once in five year

Creasing the tin roll - once in a year

Spindle gauge - once in a year

Greasing the jockey pulling - once in a year

Changing the ring - once in five years

Change the aprons - once in two years

2.3 PURCHASE DEPRTMENT:

The purchase raw yarn from various mainly from Maharastra and
AndraPradesh. The purchase Procedure is very good. Placing order for any
spare they get minimum three parties. Quotation, Quality is given first
performance. The purchase order contains the details of spare quality and
quantity supplies terms and conditions and mode transport etc. The
purchase order is duty authorised by stores in change factory manager and
director.

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Inventory software is used in maintain each and everything entering to the
gate and consumed in the department and going out of the gate.

Detailed stock maintenance is carried out in the stores department. In the

stores every item is given a ten digit code number. Each spare is tied with a
tag with code numbers. Bin card for all items are kept in one box with latest
closing stock. With this bin card regularly the receipts and issues are
entered in the software. The software automatically estimates the stock
level, compares with minimum stock for placing order.

Purchase manager who makes agreement for supply of cotton. Before the
order a term of people from purchase department examine the quality of
cotton, after that they place the order. Experienced persons always
accompany in making purchase order. After receiving the material they
check the quality before the production program starts. Most of the cotton
collected from Maharastra & Andra Pradesh. They also have supplier from
Gujarat and Punjab.

Purchased raw materials are stored in the god own. Then this raw
materials are brought into the pressing bale. In this one bale weight is
150kg and 160kg to 170kg. The unit weight of raw material depends upon
from whom the products are purchased.

2.4 ELECTRICAL DEPARTMENT:

The main function of this department is the machine should not be

stopped due to any electrical problems. These department works are
needed to all sections, because all the machine parts are fully equipped
with parts. If one department process is droped by any electrical problems
it may directly affect the balancing department. This department is fully
coordinated by three electricians

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Duties:-

1. Maintaining all electrical power distribution

2. Maintaining the generator
3. Attending the breakdown period
4. To clean over the power house
5. Maintain the lighting and motor.

Functions:-

This mill is located at Krishnapuram and substation situated in V.M.

Chatram distance of 10kms. They have 11,000 voltage transfers, step down
the way of two transformers. This two transformers capacity is 800kg and
500kg. This 440V directly connected through power house. This voltage
sends to all the department distribution board by the way of underground.
And finally transfer to individual frame by the way of cable. Total electricity
board capacity is 1.030K VA. Consumption per day is 9000 unit.

The whole electricity demand of the organization is 628K VA but the

government will be providing only 289K VA. Additionally they have three
generators. One is 110K VA, it is used for motor line only, During minimum
level of consumption period it will be used. Second one is 200K VA, third
one is 380K VA. These both are used for heavy consumption time.

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CHAPTER 3

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 ORGANISATIONAL ANALYSIS

3.1 SWOT ANALYSIS:

3.1.1 Strength:

 Raw materials cotton of superior medium staple. Long stable

like Shanker 4, and other But hybrids are easily available in the
respective growing belts.
 They also have every good relationship with their suppliers.
They have good supplier relationship that helps to attain raw
material at cheaper rate.
 It has effective and efficient management which would helps to
maintain and improve the growth of the company among the
competitor.

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3.1.2 Weakness:-
1. Cotton is an agricultural produce and its production is dependent
upon rainfall and weather conditions and its prices are also
equally prone to fluctuations.
2. The company is situated outside the industrial area is another
weakness of the company. It loses many assistance from the
government.
3. No effective carrier development program given to the employees.
In affects their carrier and future development in their
performance.

3.1.3 Opportunities:-

1. The demand for the proposed products is increasing day by day

because of the improvement in the standard of living of the
people. This will push up the prices which will ultimately have
a positive impact on the profitability of the company.
2. The demand for the proposed products in increasing day by
day because of the improvement in the standard of living of the
people.
3. Steady demand for cotton products gives them more
confidence to perform more and give more change in the
industry.

3.1.4 Threats:-

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 1. Government policies of raw cotton export \import also affect its
availability and prices.
2. Similarly various political and international factors have bearing on
the cotton prices. It may at time effect adversely the profitability on
the company.
3. Cotton is an agricultural produce and its production is depend upon
rainfall & weather condition and Its prices are also equally prone to
fluctuation.

Competitors of SUBBURAJ spinning mill:-

1. Karpagam Spinners (p) Ltd, A-11, Veerabagu Nager, Pettai,

Tirunelveli 627 004
2. Ganapathy Mills Ltd, Sankar Nagar,Tirunelveli, 627 004
3. Seyad Cotton Mils (p) Ltd, 4G, salai Street, Sindupoondurai,
Tirunelveli 627 001
4. Ragavendra Spinners (p) Ltd , A/9, Veerabagu Nager, Tirunelveli
627 001
5. Gitanjali Mills Ltd, Sankaran Kovil, Tirunelveli Dt

Company Market Value:-

YEAR 1.Karpagam 2. Ganapathy 3.Seyad 4.Subburaj

Spinners(p) Mills Ltd Cotton Mills Spinning Mill
Ltd (p) Ltd

2010 2% 4% 3% 5%

2011 5% 6% 5% 4%

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2012 6% 2% 3% 5%

2013 3% -2% 2% 5%

2014 -1% 1% 2% 7%

Total value 15% 11% 15% 26%

CHAPTER 4

FINDINGS, SUGGESTIONS, CONCLUSION

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4.1 FINDINGS:-

1. The company have excellent management team but poor working

condition.
2. Technology used for the production is good but still using old
technology.
3. Company’s cone yarn have high demand in the market.
4. The quality of products was excellent time taken to produce is more

4.2 SUGGESTION

1. Company should give more facilities to its work.

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 2. The management should be improve the quality of the rest room and
lighting facilities.
3. The company has to create a proper website for its communication
purpose to improve it relationship among the supplier and customer.
4. It is suggested to follow the Going-rate pricing, where costs are
difficult to measure and competitive response in uncertain.
5. The company should try to provide better working conditions for the
employees.
6. It is suggested to follow the Going-rate pricing, where costs are
difficult to measure and competitive response in uncertain.

4.3 CONCLUSION:-

From this report, we able to know about each and every functions of
the department of this organization, it is obvious that it has more efficiency
and also able to survive in this field. The company is now planning to
improve its efficiency by having fully fledged equipment and modern
technology to enrich their overall functions. Also safety and modern
technology to enrich their overall functions.

BIBLIGRAPHY:_

BOOKS:

1. Kotler, Philip (1198), Marketing Management, Millennium edition.

Delhi, prentice Hall of India Pvt Ltd.
2. Maheswari S.N.” Management Accounting”, Sulthan Chand & sons
Publishers 23,Dyagni New Delhi.
3. Dr. Ramachandran. R “Management Accounting” ,Sriram
Publication,Trichy 1994.

WEBSITE:

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 www.google.com
 www.subburaj.com

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