INTRODUCTION 

Organization is a social unit which is deliberately constructed and

reconstructed to seek specific goals. An organization comes into existence

when there are a number of persons in communication and relationship to

each other and are willing to contribute towards a common endeavor. The

evolution of 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 desire alone because he lacks strength, ability and resources.

So he seeks the cooperation of other people who share goals with him.

I underwent an organizational study at H&R Johnson (India) Ltd,

Karaikal to acquaint myself with the business environment for a period of

two months, as a part of the MBA curriculum at R.V.S Institute of

Management Studies, Karaikal. The organization study has been carried out

to get an understanding of the structure and functioning of the organization.

During the course of study I was able to successfully interact with the

employees of the organization and they were happy to give me all possible

information regarding the company. They also took me to the plants and

worksites where I got the first hand information about the organizational

processes and its functions.

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1.1 Need & Significance Of The Study

Organization is one of the inevitable part of business &

management. The study of the organizational structure, management

process, functions etc. are very significant as far as present day trend is

concerned tile industry and business is vast growing one. The study is very

important for knowing the following

1) To have an idea about the products

2) To have an idea about the organizational structure of the company

3) To have an idea about the departmental functions of the company 

4) To have an idea about the financial position of the company 

1.2 Objectives of the Study

The organizational study was carried out at H&R Johnson (India) Ltd,

to achieve the following specific objectives; the main objective of this study

is to know the working of H&R Johnson (I) Ltd:-

1.2.1 To have an overall study of the company and to familiarize with

its various functions 

1.2.2 To understand the organization structure and processes in a

practical setting. 

1.2.3 To get an idea about how different functional departments are

structured and how each one of them operate.

1.2.4 To know how the key business processes are being carried out in

a manufacturing firm. 

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1.2.5 To have first hand information about the various policies and

programmes of the firm.

1.2.6 To make a SWOT analysis of the organization.

1.2.7 To study the interdependence of different departments.

1.2.8 To understand the difference between theoretical & practical

aspects of functioning organization.

1.2.9 To analyze real life problems and apply the concepts and theory

learnt in the class room.

1.3 Methodology

This study is descriptive in nature. This is also a grouping, which

includes many particular research methodologies and procedures, such as

observations, surveys, self-reports, and tests. It’s conducted mainly to

familiarize with the activities, processes, policies, programs and procedures

followed in the firm. Required data for the study was collected through

monitoring and interrogation. The study is made personally visiting the

company at Thennangudy, Karaikal. The data were collected through

various methods. The methods adopted mainly are:

1.3.1 Primary data

1.3.2 Secondary data

1.3.1 Primary data

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Primary data for the study is collected through observation, personal

interview and discussion with managers, various department heads, officers

and employees of the organization.

1.3.2 Secondary data

Secondary data for the study was collected from both internal as well

as external sources. Internal sources of data includes company’s internal

records like annual reports, website, office records, management reports,

house magazines were used for collecting relevant information for this

study. And external sources, the data needed to prepare this project was

obtained from other published sources like internet, magazines, business

dailies, journals, business magazines etc.

1.4 Data Collection

To collect this data I largely depend upon the primary source of

information. Primary data is collected from the project trainer and personal

manager and secondary data from websites.

In this research, direct personal interview method is adopted; a face to

face interaction is made with the concern department staffs, to collect the

desired information.

1.5 Scope Of The Study

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The study is being conducted for H&R Johnson (India) Ltd, it was

intended to give us an Industrial exposure and bridge the gap between theory

and practice. The study was covered by the few departments of H&R

Johnson (India) Ltd, namely personal & administration department, the

finance department, marketing department, production department, purchase

department, systems department, laboratory department& mechanical &

maintenance department etc, was intended only for a period of two months

from 1st June 2012 to 28th July 2012. The study was mainly conducted to

understand the functions, processes and procedures of different departments

of the company. This training report covers the details of the departments in

which the trainee could get access and interact with responsible executives.

1.6 Area of Study

This study was undertaken at H&R Johnson (India) Ltd and the

respondents were Managers, Department heads, officers and employees

from different departments like finance, maintenance, production, HR,

marketing systems, etc.

1.7 Database

The research efforts employ both primary and secondary research

techniques to ensure that the foundation of business intelligence an insight is

accurate, current, and reliable. To conduct this study, both primary and

secondary data have been used.

1.8 Limitations Of The Study

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1.8.1 Time was a major limiting factor.

1.8.2 Secondary data available from company manuals were.

1.8.3 Lack of co-operation from certain departments due to their

workload.

1.8.4 The information provided by the company is assumed to be

authentic.

1.9 Scheme of Reporting

This report is presented in six chapters.

Chapter 1- Introduction

Introduces the study by highlighting the need for the study, the nature

of the study, the method of study, scope of study and its objectives,

limitations of study and scheme of reporting

Chapter-2 Industry Profile

The second chapter on industry profile is an overview of the Tile

Industry. It describes about the World Ceramic Tile Industry and the Indian

Ceramic Tile Industry in detail.

Chapter-3 Profile of H&R Johnson (India) Ltd

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This chapter discusses about the history, growth, activities, joint

ventures, products, vision, mission, affiliations’, objectives and policies of

H&R Johnson (India) Ltd. This gives us a picture of H&R Johnson (India)

Ltd journey so far.

Chapter-4 Functional Departments

This chapter discuss about the various departments in the organization,

its functions and responsibilities and the functional interdependence of

departments.

Chapter-5 SWOT Analysis

SWOT analysis of the study reveals the present position of the

organization. It is the assessment of the organization’s internal strengths and

weaknesses and opportunity and threats posed by its external environment.

Chapter-6 Findings, Suggestions &Conclusions

This is the last chapter of this report and it discusses about the findings

of some major problems identified during the study and certain remedial

measures to be taken to overcome the identified problems and the

conclusion of this report.

2. INDUSTRY PROFILE

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2.1 History of Ceramic Tiles

It is believed that the first clay tiles were produced seven to eight

thousand years ago in the area now known as the Holy Land. Many sources

independently verify that the actual known history of Tiles (and the known

usage of wall and floor tile coverings) can be traced back as far as the fourth

millennium BC (4000 BC) to Egypt. 

In those days, in Egypt, tiles were used to decorate various houses.

Clay bricks were dried beneath the sun or baked, and the first glazes were

blue in colour and were made from copper, very exquisite! 

During that period ceramics were also known to be found in

Mesopotamia. These ceramics bore decorations, which were white and blue

striped and later possessed more varied patterns and colours. Later on, in

China too, the Great Center of Ceramic Art, a fine, white stoneware with the

earliest Chinese glaze was produced during the Shang-Yin dynasty (1523-

1028 BC). 

The usage and the art of making and decorating ceramic tiles had

spread and by 900 A.D., decorative tiles had become widely used in Persia,

Syria, and Turkey and across North Africa. As transport and communication

developed, tile usage and its penetration in other territories increased. Wars

and territory take-over’s caused this art to spread even faster. 

The Romans introduced tile making in Western Europe as they

occupied territories. The Low Countries of Northern Europe somehow

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acquired the technology from Persia, while the Moors brought African tiles

with them when they invaded Iberia (Spain). It was aboard the ships of

Spanish conquistadors that decorative clay tiles found their way to the New

World, where they were used primarily to decorate the Churches of newly

built missions. 

By the end of the 12th century, use and manufacture of Ceramic Tiles

had spread across Italy and Spain and into the rest of Europe. Till that time

they were mainly used to decorate the floors of Cathedrals and Churches.

The skill had eventually vanished from Europe in the 16th century following

the reformation. But the decorative wall tile art had survived in Turkey and

the Middle East and the Delft tiles art survived in Holland. 

A form of tile making had also evolved among the natives of North

and South America at some point. The first decorative tiles to appear in

Colonial North America were imported from Northern Europe, mainly

England the Brits having hijacked the technology from the Dutch. The tiles

were too expensive for utilitarian purposes in the Colonies and were found

almost exclusively in the homes of the wealthy. 

Through the centuries, tile decoration was improved upon, as were

methods of tile manufacture. For example, during the Islamic period, all

methods of tile decoration were brought to perfection in Persia. Throughout

the known world, in various countries and cities, Ceramic tile production

and decoration reached great heights. The tile mosaics of Spain and

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Portugal, the floor tiles of Renaissance Italy, the faiences of Antwerp, the

development of tile iconography in the Netherlands, and the Ceramic tiles of

Germany are all prominent landmarks in the history of Ceramic tile. 

In the early days, the tiles were hand-made, each tile was hand-formed

and hand-painted, and thus each was a work of art in its own right. Ceramic

tile was used almost everywhere on walls, floors, ceilings, fireplaces, in

murals, and as an exterior cladding on buildings. 

Today Ceramic tile throughout the world is not hand-made or hand-

painted for the most part. Automated manufacturing techniques are used and

the human hand does not enter into the picture until it is time to install the

tile. They are used in an almost infinite number of ways and you don’t have

to consider yourself wealthy to own them. In commercial buildings, where

both beauty and durability are considerations, ceramic tiles will be found,

particularly in lobby areas and restrooms. 

In fact most modern houses throughout use Ceramic tiles for their

bathrooms and kitchens and in every vital area of the premise. Ceramic tiles

are also the choice of industry, where walls and floors must resist chemicals.

And the Space Shuttle never leaves Earth without its protective jacket of

high-tech, heat resistant tiles.

 2.2CERAMIC TILES INDUSTRY IN INDIA 

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2.2.1 Highlights

Ceramic Tiles today have become an integral part of home

improvement. It can make a huge difference to the way your interiors and

outdoors look and express. The Indian tile industry, despite an overall

slowdown of the economy continues to grow at a healthy 15% per annum.

Investments in the last 5 years have aggregated over Rs. 5000 crores. The

overall size of the Indian ceramic tile industry is approximately Rs 18,000

crore (FY12). The production during 2011-12 stood at approx. 600 million

square meters. 

The Indian tile industry is divided into organized and unorganized

sector. The organized sector comprises of approximately 14 players. The

current size of the organized sector is about Rs 7,200 Crores. The

unorganized sector accounts for nearly 60% of the total industry bearing

testimony of the growth potential of this sector. 

India ranks in the top 3 list of countries in terms of tile production in

the world. With proper planning and better quality control our exports

(presently insignificant) contribution can significantly increase.

2.2.2 Background

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Apart from their decorative looks, Ceramic Tiles are primarily

hygiene products and that is how our broad spectrum of consumers views

the product. This is fairly evident from its varied usage from bathrooms and

kitchens in average Indian households to medical centers, labs, milk booths,

schools, public conveniences, shopping malls and numerous other centers;

which dot our day to day life. A ceramic tile is basically a "utility product"

and that remains our promotional slogan. Popular housing projects are

increasingly switching over to Ceramic Tiles moving away from the

traditional use mosaic and even granite or marble, owing to several factors

viz. ease in laying ability, versatility, low price and hygiene.

Nevertheless, this decorative aspect of a Ceramic Tiles has forever

been in the forefront. Heavy churning out of bolder and colorful designs by

the industry are testament to the fact that most households regard a ceramic

tile as an "adornment" for an otherwise "drab look" of their age-old floorings

or an unfurnished wall.

 2.2.3 Overall Picture of the Industry

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Ceramic tiles as a product segment have grown to a sizeable chunk

today at approximately 680 Millions Square meters production per annum.

However, the potential seems to be great, particularly as the housing sector,

retail, IT & BPO sectors have been witnessing an unprecedented boom in

recent times. 

The key drivers for the ceramic tiles in India are the boom in housing

sector coupled by government policies fuelling strong growth in housing

sector. The retail boom in the Indian economy has also influenced the

demand for higher end products. Overall the bullish growth estimates in the

Indian economy has significantly influenced the growth of the Indian

Ceramic tile industry.

The main product segments are the Wall tile, Floor tile, Vitrified tile

and Industrial tile segments. The market shares (in value terms) are 20%,

23% 50%, and 7% respectively for Wall, Floor, Vitrified, and Industrial

tiles. The tiles are available in a wide variety of designs, textures and surface

effects. They cater to tastes as varied from rustics to contemporary marble

designs in super glossy mirror finishes.

Both, traditional methods of manufacturing (tunnel ) and the latest

single fast firing methods are deployed in manufacturing. Some of the latest

trends in manufacturing methods can be seen in India. 

The industry also enjoys the unique distinction of being highly

indigenous with an abundance of raw materials, technical skills,

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infrastructural facilities despite being fairly capital intensive. A total of over

5, 50,000 people are employed in the sector. Out of this, 50,000 people are

directly employed and 5, 00,000 are indirectly associated. The potential is

huge considering the per capita consumption of ceramic tiles in India.

Currently it is at 0.50 square meters per person in comparison to over 2

square meters per person for like countries like China, Brazil and Malaysia

 

2.2.4 Where We Stand And What We Must Do?

As a foreign exchange earner or a global player, Indian Tile industry

has captured the attention of the world in the ceramic tiles segment. To

compete internationally, our plants must be geared up to large units currently

operating in China and Turkey is driven by economies of scale. These will

also help us in lowering our cost of production significantly. Also,

infrastructural support is a key factor that determines the speed of growth.

Better infrastructure will bring in better growth in terms of consistency and

sustenance. Freight, supply of power and gas remains the key cost-related

issues impacting the industry. Availability, consistent supply and reasonable

rates are extremely important for the growth of the ceramic tile industry.

Rural thrust should be enhanced by favorable excise duty and MRP

structure

 2.2.5 Current Status of the Industry

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The ceramic tiles industry in India has followed similar trends

internationally which have been characterized by excess capacities and

falling margins. Countries like Malaysia, Thailand, Indonesia, Sri Lanka and

Vietnam are setting up their own plants. China has emerged as a major

competitor. Producers from Spain and Italy have the advantage of lower

transportation costs while exporting to USA and Germany. In India, the per

capita consumption is as low as 0.50 square meters per person compared to

China (2.6 square meters per person), Europe (5 to 6 square meters per

person) or Brazil (3.4 square meters per person). Rising disposable incomes

of the growing middle class and 40 million units of housing shortage hold

out a great potential.

A major change that took over the ceramic tiles industry, was the

introduction of vitrified and porcelain tiles. These new entrant product types

are said to be the tiles of the future. Internationally these tiles are already the

major sellers. These categories of products account for almost 50% of total

tile sales by value in this industry.

These new products and the conventional wall & floor tiles have

together made the organized industry grow to a formidable Rs. 7,200 crores

industry. This coupled with a spate of expansions by many players make the

industry look very promising in the future.

The Indian Industry has developed an export market although at the

lower end. In volume it constitutes less than half a percent of the global

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market. (Presently India does not figure in the list of major exporting

countries). But this reality could change as Indian exports are rising at an

accelerating growth annually. The top-end of the global export market is

presently dominated by China (36.8%) and Italy (15.1%).

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3. ABOUT PRISM CEMENT LTD

Prism Cement Limited is one of India’s leading integrated building

materials companies; with a wide range from cement, ready-mixed concrete,

tiles, bath products to modular kitchens. Prism Cement Limited has three

Divisions, viz. Prism Cement, H&R Johnson (India), and RMC Ready mix

(India). Prism Cement Limited also has a 74% stake in Raheja QBE General

Insurance Company Limited, a joint venture with QBE Group of Australia.

For the year ended March 31, 2011, the company’s consolidated sales

turnover was Rs 3,605 cr.

3.1 PRISM CEMENT

Prism Cement commenced its production in August 1997 and

manufactures Portland Pozzollana Cement (PPC) under the brand name

'Champion' and Ordinary Portland Cement (OPC). It has the highest quality

standards due to efficient plant operations with automated controls. It caters

mainly to markets of UP, MP and Bihar, with an average lead of 340-370

km of its plant at Satna, MP. It has a wide marketing network with about

2,000 dealers serviced from 46 stocking points. Prism currently sells over 3

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MTPA of cement and clinker and is in the process of establishing another

unit at the same location with a proposed cement capacity of 3.6 MTPA by

2010-2011. It is also in the process of setting up a 4.8 MTPA capacity

cement plant in Andhra Pradesh by 2013-2014. This will take its overall

capacity above 11 MTPA.

3.2 RMC READYMIX (INDIA)

RMC Readymix (India) is the third-largest ready-mixed concrete

manufacturer in India. Set-up in 1996, RMC currently operates 57 ready-

mixed concrete plants in 27 cities/towns across the Country. RMC has also

ventured into the Aggregates business and operates large quarries and

crushers. At present, RMC has 6 quarries across the country. RMC has been

at the forefront in setting high standards for plant and machinery, production

and quality systems and product services in the ready-mixed concrete

industry. RMC plans to scale-up its capacity from 3.87 million m3 at present

to 11 million m3 by 2014-15.

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3.3 H&R JOHNSON (INDIA) LIMITED

Vision

“Improving Lifestyles of Our Customers by Providing Innovative

Products and Services”

Mission

“Continuous Improvement Is Our Mission”

Core Values

1. Honesty, Integrity & fairness

2. People as a source of our strength

3. Passion for excellence

4. Teamwork

5. Innovation

6. Entrepreneurship

H&R Johnson (I) Ltd Affiliations

The H&R Johnson (I) Ltd is a member of reputed industry

organizations like Indian Council of Ceramic Tiles and Sanitary ware

(ICCTAS), Indian Ceramic Society, Indian Merchants Chambers (IMC),

Bombay Chamber of Commerce & Industry (BCCI), Confederation of

Commerce and Industry (FICCI), Employers Federation of India (EFI) and

Construction Industry Development Council (CIDC) and Chemical & Allied

Products Export Promotion Council (CAPEXIL).

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Slogan

Not Just Tiles>>>Lifestyles

Networks

The company’s various manufacturing plants are located in

1. Pen in Maharashtra

2. Kunigal in Karnataka

3. Dewas in Madhya Pradesh

4. Karaikal in Pondicherry

5. Vijayawada in Andhra Pradesh(Joint Venture)

6. Rajkot in Gujarat(Joint Venture)

HRJ (India) has the largest distribution network in the industry, with

30 branch offices and 39 depots spread across India. The company’s trade

network comprises of over 1,300 dealers and 15,000 sub-dealers spread

across the length and breadth of India.

No matter which part of the country you are in, we are a

right there whenever and wherever you need us” - H&R JOHNSON

(INDIA) Ltd

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3.3.1 PROFILE OF THE COMPANY

3.3.1.1 COMPANY REVIEW

H&R Johnson (India) Ltd is an India’s leading Tile Company was

established in the year of 1958. Was a division of Prism Cement Limited is

the undisputed market leader in the tile industries since last 53 years across

various product categories. As the seventh largest tile company in the world,

H&R Johnson today enjoys the reputation being the only company in India

to offer end-to-end home lifestyle solutions.

H&R Johnson (India) Ltd is a member of Johnson Ceramics

International, U.K, the global leader in the international tile industry; they

have an access to the latest trends and designs prevalent in the international

market. Johnson Ceramics International has a very strong global presence

and its manufacturing plants are spread across the world.

H&R Johnson (India) Ltd modern manufacturing plants located

across six strategic locations across India. The plants are located in Dewas

(MP), Pen (Maharashtra), Kunigal (Karnataka), Karaikal (Pondicherry),

Vijayawada (Andhra Pradesh) and Rajkot (Gujarat). These units employ the

best of technology from world leaders in tile manufacturing machinery.

The company has chiselled a niche for itself in other allied business

categories including Wooden Laminates Flooring, Engineered Wooden

Flooring, Sanitary ware, Bathroom fittings, Modular Kitchens, Engineered

Marble & Quartz as well as tile adhesives & grouts business. The company

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provides the most innovative products of international standards that are

coupled with the best of pre and after sales service. The total manpower

Strength is around 1500. Plants capacity of H&R Johnson (I) Limited is

40,000 square meters per day.

H&R Johnson (India) Ltd has consistently pioneered new

innovations to maintain its stronghold on the Indian market for over 50

years. In the recent past H&R Johnson has launched some of the most trend-

setting products in the market portfolio comprising of 5 well-known brands

in India (Johnson, Marbonite, Porcelain, Endura and Milano).

The flagship brand is Johnson tiles offering a range of ceramic floor

and wall tiles. The Marbonite brand is India’s No. 1 vitrified tiles brand. The

Porselano brand is India’s first Joint-free offering. Endura brand offers

specialized industrial and pavement tiles. They also offer complete kitchen

and bathroom products under a premium brand, Milano.

They export tiles to countries like Japan, Spain, U.K, Dubai,

Singapore, Australia and New Zealand. H&R Johnson (India) Ltd has the

largest distribution network which is spread across the whole country with

nine plants strategically located at 6 locations 30 full-fledged branches, 1300

dealers, over 15000 sub-dealers and 39 depots.

The plants are ISO compliant with both 9001 as well as 14001

certifications. Besides this, units in Dewas, Kunigal and Karaikal are

OHSAS 18001 certified for excellence in safety standards. The total

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manpower Strength is around 1500. Plants capacity of Johnson (I) Limited is

40,000 square meters per day.

During the year-ending March 31, 2011 the company’s revenues

touched Rs. 1,472 crores. The company’s sales volume during the year also

crossed 43 million sq mt in tiles.

HRJ's sales volume for the year 2010-11 was 43 million m2 of tiles

and plans to achieve 90 million m2 by 2014-15.

3.3.1.2 KARAIKAL PLANT REVIEW

H&R Johnson (India) Ltd was established on 2nd march 1996 as

E.I.D Parry (I) Limited. It was started as production and commercial

organization E.I.D Parry is a part of Chennai based Muragappa group.

On 2nd march 2000, E.I.D Parry (I) Limited was acquired by H&R

Johnson (I) Limited Thennangudy, (Pondicherry)located 12 kms away from

Karaikal. The area of plant in Thennangudy, Karaikal is about 48 acres.

India’s leading tile manufacture, has commenced its new range of

super glaze tiles at its newly acquired high-tech plant at Thennangudy near

Karaikal (Pondicherry), with sophisticated double firing technology from the

renowned Italian company ‘SACMI’ using imported glaze from Ferro and

Torrecid (SPAIN), the Karaikal plant provides a new range of highly

attractive tiles with special effects like luster’s and metallic’s.

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The Karaikal plant has a production capacity of 5000 square meters a

day, is geared to produce a tiles of size 20X30 cm and upwards. For

automatic efficient loading and unloading with a minimal breakage the plant

uses a sophisticated tile loading / unloading machine called ‘TEKPILE’

Apart from the latest double firing technology Karaikal plant also has

a 90 meter glazing line to enable multiple printing and special effects.

Equipment’s from ‘Sacmi’ also includes state-of-the art roller kilns with

microprocessor controls a fully computerized quality control and selection

machines and a fully automated packing line.

Plant machineries are imported from ‘Sacmi’ (world leader in

producing manufacturing machinery) at Italy. The investment made on plant

was Rs.50 crores. The plant employs a natural gas for firing which is eco-

friendly and pollution-free. Automatic de-dusting systems ensure a dust-free

environment with a production capacity of 5000 sq. meters a day, Karaikal

plant will add Rs50 crores of turnover to H&R Johnson, thus making it the

largest tile manufacture in south India.

3.3.2 JOINT VENTURES OF H&R JOHNSON (I) LTD

H&R Johnson (I) Ltd, a division of Prism Cement Limited and the

world’s 7th largest tile company has entered into a joint venture with Small

Tiles Pvt. Ltd, Antique Granito & Specific Ceramics. With this venture,

H&R Johnson (India) has acquired a 50% stake in Small tiles Pvt. Ltd,

Antique Granito & Specific Ceramics.

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According to the joint venture, ‘Small Tiles Pvt. Ltd’ will

manufacture and supply ceramic glazed floor tiles to H&R Johnson (India)

Pvt. Ltd. The tiles would primarily be focused in the Northern, Central,

Eastern regions of India and the overseas market.

Vijay Aggarwal, Managing Director, Prism Cement Ltd, said, “

Glazed Floor tiles have been growing at a healthy rate in India and this joint

venture would enable us to cater to the growing demand”.

The plant capacity of Small Tiles is approximately 2.3 million sq.

meters per annum. The plant has capability to manufacture floor tiles of

12x12, 16x16, and 24x24.

According to the joint venture “Antique Granito” a Gujarat-based

tile manufacturing company will manufacture and supply India’s No.1

Glazed Vitrified Tiles under the Marbonite brand.

The agreement with Antique Granito was signed between Vijay

Aggarwal, managing director, H&R Johnson (India), and Chunnilal Bhai

Kundariya, managing director of Antique Granito.

Antique Granito is based in Morbi this is the first time a multinational

is investing in Morbi. This will provide a boost for Morbi-based

manufacturers who have been reeling under pressure on margin owing to

escalating input costs.

The manufacturing units of the company have state-of-the-art

machinery imported from abroad and well talented man power resource.

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According to the joint venture, “Specific Ceramics” a Gujarat-based

tile manufacturing company will manufacture and supply a wide range of

ceramic floor and wall tiles under the Johnson brand. Specific Ceramics is

an Ahmadabad-based company.

The deal with Specific Ceramics was penned by Vijay Aggarwal for

H&R Johnson (India) and Suresh Patel, managing director of Specific

Ceramics.

H&R Johnson is also supplying the plants with all the key raw

materials required in the manufacturer of international standard vitrified and

ceramic tiles.

Moreover, H&R Johnson (I) Ltd, is planning to train the plant staffs at

various Johnson Ceramics International facilities across the world to upgrade

their technical knowhow and bring in the international perceptive to their

working and these acquisitions will further consolidate H&R Johnson

production capacity and leadership in the Indian tile industry.

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3.3.3 OBJECTIVE AND TARGETS OF THE H&R JOHNSON (I) LTD

3.3.3.1 Functional objectives

1. Maintain press availability at 98%

2. Maintain GL productivity at 1400 sq. meter per shift per line

3. Develop an average of 5 new sku’s every month (In a financial year at

least 60 new sku’s to be developed).

4. Reduce customer complaint to zero.

5. Reduce the glaze cost to Rs 31.83/- sq. meter from Rs 33.5/- sq.

meter.

6. Analyze and reduce roller consumption.

3.3.3.2 Environmental objectives

1. Reduce water consumption from 4842 KL to 4750 KL

2. Reduce the glaze loss in GP from 9.13% to 6%

3. Reduce the tile rejection at BK from 3.3% to 2%

4. Reduce the tile rejection at GL from 3.98% to 2%

5. Increase the utilization of accumulated fired tiles in the batch

composition from 8% to 10%

6. Reduce the power consumption in the plant from 2.93to 2.56 units/sq.

meters.

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3.3.3.3 OHSAS Objective

1. Reduce the fly of dust in the plant from 150 to 100 Gms per cubic

meter.

2. Ensure safe handling of all fuels and lubricant oils.

3. Reduce the number of accidents in the plant to zero.

3.3.4 POLICIES OF THE H&R JOHNSON (I) LIMITED

3.3.4.1 Quality policy

“We shall continuously strive to provide quality products & services

to meet the Customer’s Expectations. Continuous improvement,

Commitment, Accountability and Team work shall be our guiding

principles”.

3.3.4.2 Occupational health and safety policy

We are committed to improve continually the health and safety of all

our employees

1. By hazard control

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2. By insisting and practicing safe work procedures to eliminate possible

incidents.

3. By conforming to all applicable legislations/regulations and other

requirements.

This shall be attained through

1. Continuous training

2. Commitment

3. Consultation and involvement of all persons working under the

control of organization by fixing objectives and targets.

3.3.4.3 Environmental Policy

We shall continuously strive to carry out all activities to minimize

their impact on environment.

This shall be attained through

1. Through conservation of natural resources by their efficient use,

utilization of waste and prevention of pollution.

2. By establishing practices and systems while abiding by relevant

environmental and other legislation/regulations applicable to the

organization.

29

3. By continuous review of performance against targets.

4. Providing necessary facilities with training.

5. Involvement of all our employees.

30

ORGANISATION STRUCTURE

31

President(Operation & Finance)

General Manager(Operations)

Product Development

Dy.Manager(Process &

QC)

S.R Manager(Mfg. Wall Tile

Plant)

Manager

(Maintenance)Dy.Manager

(Accts)

S.R Manager(HR & Admin)

Manager(Supply Chain)

S.R Executive(Logistics)

Asst.Manager(First

Production)

Asst. Manager(Lab & QC)

Executive (QC)Officer (QC)

Executive(Screen Lab)

Supervisor(QC)

Artist

Asst.Manager(Body & G.P)

Asst Manager (Rectification &

Packing)

Shift Officers

Executive(KILN)

Rectification & Packing

Supervisor

EngineerTrainee

Officer(Maint)

Officer(Press Maint)

Supervisor

Executive(Electrical)

Executive(Maint)

Dy.Manager(Maint)

Dy.Manager(Elect &

Electronics)

Dy Manager(Purchase)

Officer(Mines)

Sr Executive(Purchase)

Officer(Mines)

Trainees(Despatch)

Executive (Excise & Despatch)

Assistant(Purchase)

Asst. Security Officer

Time Keeper

Officer(HR & Admin

Assistants(Accts)

Supervisor(Accts)

Officer(Accts)

Asst Manager(Accts) Supervisors

(FRIT)

4. INTRODUCTION

Department is a process of dividing the large functional organization

in so small and flexible administrative units. The basic need of

departmentalization arises because of limitation on the number of

subordinates that can be directly managed by the superior.

BASIS OF DEPARTMENTATION

Departmentalization may be on the basis of function, products,

regions, customers, process, time, number, and marketing channel

Functional basis is a very popular method of departmentalization. It refers to

grouping of activities of the organization into major functional departments

like, production, purchase, and marketing etc.

And in this project report, some of the following departments of H&R

Johnson have been studied.

4.1Finance Department

4.2Purchase Department

4.3Marketing Department

4.4Human resource Department

4.5Systems Department

4.6Production Department

4.7Laboratory Department

4.8Mechanical & Maintenance Department

32

4.1 FINANCE DEPARTMENT

Accounts department is one the most important department of any

organization because finance is essential for any business activity and

actually it includes

1. Identification  

2. Classification

3. Recording of transaction

Accounts Department looks after the fixed, Variable, and semi-

Variable cost of production, mechanical, maintenance & other

administration and selling expenses of the factory. Each plant has their own

accounts department which also looks after the MIS department. The

Accounts departments of all plants are integrated through centralized SAP

system.

Accounts department also carry out the controlling activity in the

organization. It establishes the standards and compares the actual

performance with that pre fixed standards, if there is any deviation

in the actual performance from the standard fixed then the

corrective action well be taken by the department.

33

4.1.1 MAJOR FUNCTIONS IN FINANCE DEPARTMENTS

4.1.1.1 Management of Accounts Receivable

4.1.1.2 Accounts Payable

4.1.1.3 Accounting of Materials

4.1.1.4 Banking

4.1.1.5 Managing of Financial Resources and Budget preparation

4.1.1.6 Cost accounting

4.1.1.7 Auditing

4.1.1.8 reparation of financial statements & Reports

4.1.1.9 Corporate Planning etc.

4.1.2 COMPANY FINANCE INFORMATION

Status : Listed

Legal Form : Other Non-Liability Limited

Operational Status : Operational

Financial Auditor : Borkar & Muzumdar

Website : http://www.hrjindia.com

Industry : Manufacturing/Industrial

Total Revenue : During the financial year ending March 31,

2011 the total revenue touched Rs.1,472 crores.

34

Sales : Consolidated sales turnover was Rs. 3,605

crores on 31st March 2011.

Excise Duties : 12.36%

Investment : 50 crores

Joint Venture : Silica, Small Tiles Private Limited, Antique

Granito, Specific Ceramics etc,

Revaluation : Yearly once at the time of balance sheet

Preparation.

Report : MIS Report

Wage System : Monthly wage system

Allowances : Lunch allowance, travelling allowance,

Education allowance, house rent allowance,

and yearly once a family trip is arranged for

permanent staffs.

35

4.2 PURCHASE DEPARTMENT

The purchase procedure covers the following areas of procurement

of goods and services for the company.

1. Joint Venture related materials purchases

2.  Equipment and Spares.

3.  Service items.

4. Office stationery and other items.

OBJECTIVES

1. To maintain uninterrupted flow of materials to support the

development schedules.

2. To procure materials economically at a cost consistent with the quality

and service required.

3. To provide the necessary expertise, advice, information to the

Curators and Education Officers with regard to the best quality of

material available in the market, supplier’s capability and

performance etc.

4. To develop and maintain good buyer-seller relationship.

5. To promote source development.

6. To maintain PDO standard, reputation, and credibility in the market

by fair dealings and prompt payments.

36

MAIN FUNCTIONS

The main functions of the Purchase Department are defined as follows:

1. To maintain uninterrupted flow of materials to support the sources.

2. Checking of requisitions / purchase indents.

3. Selection of suppliers for issue of enquiries.

4. Issuing enquiries / tenders and obtaining quotations.

5. Analyzing quotations and bids etc., and preparation of comparative

statement.

6. Negotiating contracts.

7. Checking legal conditions of contracts.

8. Issue of purchase orders

9. Verification and passing of supplier’s bills

10.Maintenance of purchase records

11.Maintenance of vendor performance records/data

12.Development of reliable and alternate sources of supply.

37

Centralized Purchases

As every division has a Purchase Department, all purchases of stores

shall be centralized in the inter in the interest of economy, uniformity

and as a matter of policy since custodian and consumer should not be

the same. Accordingly the purchase of office stationery, forms, liveries,

furniture etc., shall be made by the Purchase Department and not by the

administration sections. Transfer/adjustment of staff shall be made where

necessary. Local / cash purchase of stores shall continue to be made in

exceptional cases by the Heads of Divisions/projects under their power but

as far as possible Purchase Officer should be associated even while making

such purchases.

Vendor Development and Vendor Pre-Qualification

Pre qualified vendor list shall be maintained by purchase department.

The vender list comprise of all pre-qualified vendors under each category

stating clearly the respective capability in terms of volume of work,

specification, level of technology, etc with rating of the vendors.

Addition/deletion to vendor's lists is made on a continuous basis on the

above criteria.

There are three types of Purchase Requisition (PR) as follows:

1.  For stores, including stationary and office supplies, spares

2. For Services

3. For projects and major capital equipment

38

4.3 MARKETING

H & R Johnson ltd; is being the undisputed market leader in

Ceramic Tiles Industry by having 22% Market share in organized sector.

The marketing is based on both wall and floor tiles and special tiles for

industrial application which is also exported too.

The company does not carry out any direct marketing activity

but the marketing activity of the company is carried out through dealers

and sub- dealers who are spread across the length and breadth of India.

Performance Growth

H&R Johnson (I) Ltd has a unique growth profile; high brand pull and

proven track record are symbolic of their strong performance. They are on a

constant quest to make superior products through extensive research. The

result is evident in the annual revenue of Rs. 1,500 crores in 2010-11 and

sales volume during the year crossed 43 million square meters.

A robust production, infrastructure, distribution, sales network and the

ability to predict, prepares them for their future growth. “The future is ours”

39

Capacity to Meet Any Demand

The company key focus has been to make the products available to

any kind of demand generated in the market, right from few tiles to a million

sq. meters. This has been achieved by expanding the capacities of plants so

that supply does not fall short of customer demands and this has helped to

further consolidate the leadership position in the market.

The new investments in capacity increase comes at a time when the

Indian tile industry is fighting eroding margins as a result of cheap and low

quality imports being dumped in the Indian tile industry by China, UAE and

Indonesia, as well as a strong unorganized sector.

Research & Development

The global presence gives a distinct advantage of accessing latest

designs as well as international trends in the global tile market. The

knowledge is used towards reiterating the commitment of providing

customers with premium quality tiles of international standard and designs.

The R&D centre based in Mumbai continuously aims to adapt these

designs to the Indian consumer. The stringent quality control measures,

customer focus, continuous improvement, commitment and teamwork are

the guiding principles to provide customers the very best products across the

board.

40

A Research & Development Centre located at Pen is approved by

Department of Scientific and Industrial Research, Government of India.

They successfully achieved backward integration by developing and

manufacturing of products such as soluble salts, stains and frits etc. which

are used in ceramic manufacturing. 

Research and development department keeps a strict eye on every

aspect when it comes to delivering quality. The products undergo regular

quality tests. Stringent quality tests are also carried out on raw materials like

clays, minerals, chemicals and pigments they procure from the large network

of vendors and suppliers both from Indian and across the globe. Geologists

regularly do on-site testing at the mines from where raw materials are

procured.

Pricing

H&R Johnson (I) Ltd adopted the “Cost Plus Pricing Method”

production unit sends the actual cost of Production to the Corporate Office,

then PMG (Product Managers Group) decides the Price of the Product after

considering the Market Condition and cost of Production. The company has

adopted many Advertisement and Sales Promotion activity as main part

of its marketing Strategy.

41

Innovation

The company pioneered some of the key innovations in the Indian

ceramic tile industry. These are:

1. Anti-skid tiles for bathrooms

2. Specially designed tiles for kitchen floors and walls

3. Joint-Free porcelain tiles marketed under the brand Porcelain

4. Vitrified tile in large formats under the Marbonite brand

5. Large format joint-free monoporosa tiles, India’s first water repellent

tiles marketed under Johnson

6. India’s first vitrified wall tiles under our Marbonite Wonderwall

brand

7. Pioneered acid / alkali resistant tiles for industrial floorings marketed

under Endura

Competitors of H&R Johnson (I) Ltd

1. Kajaria ceramics limited

2. Asian Granito

3. Antique Vitrified tiles

4. Sogo Granite

5. RAK Ceramics

6. City Tiles

7. Century tiles limited

42

Brands Offered by H&R Johnson (I) Ltd

HRJ (India) has a wide basket of innovative products, including anti-

skid tiles, water-repellent tiles, vitrified wall tiles, joint-free tiles, industrial

pavement tiles etc. These are sold under different brands. HRJ has recently

launched top-end, premium range of products under Johnson Ceramics

International brand. HRJ flagship brands are

1. Marbonite brand is India’s No.1 vitrified tile brand.

2.  HRJ offers glazed wall and floor tiles, bath products, kitchens,

laminate and engineered wooden flooring. 

3. HRJ has recently launched top-end, premium range of products under

Johnson Ceramics International brand. 

4. Johnson tiles offering a wide range of ceramic floor tiles and wall tiles

5. Porcelain brand is India’s first Joint free offering.

6. HRJ also offers complete kitchen and bathroom products under a

premium brand, Milano.

Advertisement

The Company does it’s advertisement through various Popular sources,

1. Paper and Press Media

2. Traffic Rail

3. Wall painting

4. Road Drivers Advertisement

5. Sign Boards

43

Sales Promotion

H & R Johnson (India) has been the market leader in the field of

ceramic tiles in India where it has maintained its leadership position for over

five decades. The Company does its Sales Promotion through various ways

such as

1. Creating Brand awareness

2. Organizing trade Fair 

3. Attending Exhibition

4. Arranging distributors conferences

Distribution

Target

At present H&R Johnson (I) Ltd targeting 30% growth of this network

to the rural markets in India including Class B and C towns, the rural

operation is expected to contribute 25% of the total turnover.

Focus

H&R. Johnson (India) ltd, focuses on modern retail channel. The

‘House of Johnson’ showrooms showcase the complete range of products for

the upper and upper-mid segment of market, while ‘Tile Bazaar’ is targeted

towards to the lower-mid segment.

44

Infrastructure – Presence

H&R Johnson (I) Ltd distribution network is the largest in the country

comprising of 1300 dealers and 15,000 sub-dealers spread across the length

and breadth of the country. In addition, we also have 30 branches offices and

39 depots that give us a tremendous reach in the marketplace and

warehouses.

Worldwide Presence

An association with Johnson Ceramic International ensures that

consumers can find HRJ tiles across the world. Their products are sold in all

continents of the world and now the company is in pride that the Johnson

name is globally associated with high quality design led products.

45

4.4 HUMAN RESOURCE

Career Policy

H & R Johnson (India) Ltd recognize that its people are the source of

its strength and competitiveness so they lay down a HR policy as their

Career policy.

The company is committed to equal employment opportunities for

attracting the best available talent and cosmopolitan work force and resolves

to provide an environment free of any ethnic discrimination or sexual

harassment.

The company aims at its fairness and transparency in its dealings with

its employees to create an atmosphere of openness, mutual trust and

teamwork. The company is developing the potential of its employees

through training, provide opportunities to display their creative talent and

encourage them to maximize productivity.

The company encourages its employees to take on higher

responsibilities and provide opportunities for their growth and positively

differentiate employees on the basis of performance, leadership potential and

alignment with core values.

The company pursues management practices to enrich the quality of

life of its employees.

46

Company Offers

1. Growth in Responsibilities

2. Cross-Functional Perspective

3. Stability of Job

4. Investment in Training and Opportunity to Learn

5. Professional Working Environment

Company Expects

1. Customer First

2. Commitment to ROCE & FCF

3. Teamwork

4. Continuous Improvement

5. Innovation

Overview of Human Resource Department in H&R Johnson (I) Ltd

H&R JOHNSON (I) Ltd has a good and strong organization structure.

They feel employees are the real asset of the company. This asset is

classified into management staffs, operators, companies apprentice, trainees,

Govt. apprentice & implant trainees.

Totally 144 employees are working as permanent employees,

department wise strength is as follows,

47

Organizational head: 1

Personal & administration: 3

Logistics and commercial: 3

Finance & account: 4

Stores & purchase: 4

Systems (IT): 2

Laboratory (QC): 11

Maintenance: 32

Production: 84

Other than the above strength there is 42 trainees are working under

temporary basis. Personal and administration department is under the control

of deputy manager. Human resource department is in developing stage

through the various training and provisions to employees.

4.4.1 Recruitment and Selection

Recruitment involves in searching for the perspectives employees

whose skills and knowledge suites the organization requirement

and stimulating them to apply for the Job in the organization. H&R

Johnson (I) Ltd generally prefer the highly qualified technician and

dedicated management professionals in their company.

48

The HR manager first identifies the various sources from which the

organization can get the required employees according to the requirements

of different departments, based on the requirements of Human Resource in

various Departments. The Recruitment Process in H & R Johnson (India)

Ltd is as follows

Recruitment process in H&R Johnson (India) Ltd

1. Calling for application and screening of the application

2. Then the selected candidate will be interviewed by the Department

Heads

3. Then the final Interview will be carried by the General

Manager at corporate level or at plant level for those candidates

who get succeeded in second interview.

4. Training for selected candidates will be given, finally

induction for the candidates who completed

the training successfully

5. Requirements of job changes according to the job Profile

6. In H & R Johnson (India) Ltd junior level post will be filled

by the fresher’s and senior level posts by the experienced people.

Recruitment

Recruitment methods adopted by the company are as follows,

1. Indirect method- advertising in leading newspapers

2. Third party method- using friends circle

49

The vacancies in the company are announced through leading

newspapers both in Tamil & English. Another method is searching for

appropriate person through friends circle for both administrative staff and

workman (operators).

Selection

The selection process for applied candidates is done through interview

for both technical and non-technical staffs.

Interview

The interview process in H&R Johnson (I) Ltd includes ‘skill test’ for

the concerned job. The skill test is conducted via oral communication. The

efficiency, expertise & experience for the job will be predetermined and it’s

analyzed among the candidates who have been applied for the post by the

interview panel.

The interview comprises of two steps initial/preliminary interview and

final interview. In the two cases of interview the panel will be different likes.

Initial / Preliminary Interview

1. The head of concerned department

2. The head of HR department

50

Final Interview

1. The general manager

2. The head of concerned department

3. The head of HR department

Medical Fitness

A selected candidate has to produce a medical fitness certificate from

residential medical officer.

Absorption of Trainees

Training (on-the-job) is provided by the company to the trainees.

These trainees may consider for their permanent employment. There are two

categories of trainees in the company they are

1. Company trainees

2. Government apprentice

Company Trainees

Company trainees are the trainees appointed by the company. These

trainees are provided with training in the company for a year. This category

of trainees is highly considerable towards permanent posting by the

company on basis of merit.

51

Government Apprentice

For the operator post 13:1 ratio (13 operators 1 trainee) should be

maintained for all categories (electrical mechanics). As per government

provision, trainees are appointed through employment exchange (Karaikal

region). Training period for one year.

4.4.2TRAINING

Training for Management Staffs

Training and development program for the management staffs were

conducted frequently, we can classify the training program as

Internal

Internal training program is most probably conducted in the head

office at Mumbai.

External

External training program is most probably conducted by the

1. Indian institute of management

2. Central board of workers education

3. Nathan & Nathan

52

Training for Operators

In operators level the training program was conducted inside the plant

by supervisors or by co-operators.

According to appraisal only promotions and positional development

are being given.

For employees they are conducting the appraisal program for

positional develop of the employee. In appraisal program timely work,

attendance, absence, leave, LOP actual, absence work ability, lagging, rating

all thing evaluated.

Training Programs

In H & R Johnson Karaikal plant they offer both on the job and off

the job training.

On the Job Training Programs

1. Job Rotation

2. Weekly Training

3. Internal Transfer to various other Departments

Off the Job Training Programs

1. Skill Development

2. Personality development

3. Seminars

4. Lecturing

53

Steps taken by H & R Johnson (I) Ltd

The Various steps taken by H & R Johnson Ltd to enhance the skill of its

employees are as follows

1. Personality Development Programs

2. Counselling

3. Seminars

4. Inter departmental Transfers

5. Paper Presentation

6. Job Rotation

7. Communication Development Programs

8. Work Shops

4.4.3 PERFORMANCE APPRAISAL

“Performance appraisal is the systematic, periodic and an impartial

rating of an employee’s excellence in matters pertaining to his present job

and his potential for a better job”

Objective of performance appraisal in H&R Johnson (I) Ltd

Data relating to performance assessment of employees are recorded

and stored for several purposes. The main objectives are

1. To assess the effect of promotions based on competence and

performance.

54

2. To confirm the service of probationary employees while completing

the probationary period satisfactorily.

3. To assess the training and development needs of employees

4. To decide upon a pay raise where (in the unorganized sector) regular

pay scales have not been fixed.

5. To assess the relationship between superiors, subordinates and their

understandings.

6. To assess whether HR programs such as selection, training and

transfer have been effective or not.

Effect of performance appraisal in H&R Johnson (I) Ltd

According to the result of performance appraisal only promotions and

positional development for employees are being given.

For employees they are conducting the appraisal program for their

positional development. In appraisal program timely work, attendance,

absence, leave, LOP actual, absence work ability, lagging, rating all these

things are evaluated.

4.4.4 Motivation

Internal and external factors that stimulate desire and energy in people

to be continuously interested in and committed to a job, role, or subject, and

to exert persistent effort in attaining a goal.

55

Motivation results from the interactions among conscious and

unconscious factors such as

1. Intensity of desire or need

2. Incentive or reward value of the goal

3. Expectations of the individual and of his or her significant others.

H&R Johnson (I) Ltd, motivate their employees by,

Honoring them with a reward, they set a target of manufacturing 6100

sq. meter tiles a day with 79% quality, by achieving the target the

management staff and operators will be reward with Rs.500 each for that

particular day. This amount will be settled in year ending 31st March.

4.4.5 WELFARE FACILITIES

First Aid Box

First aid box are filled with essential medical commodities and its

must for every concern. There are 3 first aid boxes altogether, one in security

office, second in the frit smelter and the third one in the tile plant.

List of Medical Commodities Kept in the First Aid Box

1. Tincture

2. Dettol

3. Cotton

56

4. Bandage Cloth

5. Iodex

6. Plaster Roll

7. Amrithanjan

8. Eye and Ear Drop

9. Crocin

10.Disprin

11.Digene

12.Saridon

13.Paracetamal

14.Deep Heat (Pain Relief Spray)

Washing Facilities

Facilities for washing clothes are provided in the concern for both

male and female separately. Tap water and detergent are arranged in a

proper manner.

Facilities for Storing Clothes

Almirahs are placed to store the uniform clothes of the workers and

it’s made available in every work place.

Safety Officer

There is a safety officer in the concern, who is wholly responsible for

handling every resource in an efficient and effective manner.

57

Canteen Facility

Canteen is available to the workers and they are provided with

breakfast, lunch, tea and dinner from time to time.

Canteen is run on contract basis however it is working under

combined control of management and the workers. Quality food is served

and enough seating capacities are provided and it is neatly maintained.

Rest Room

The rest room is provided with enough ventilation and spatial needs.

And it is opened for all the time for workers and employees. It’s cleaned

twice a day to prevent employees from disease.

Conveyance

Every employee in the organization is provided with travelling

facility, for this purpose the factory is maintaining 2 vans and a jeep.

58

4.5 SYSTEM

IT initiative

H&R Johnson (I) Ltd; in order to make their processes effective it’s

benchmarked with the best. To further make them future ready they’ve

initiated a technological advancement program that has added speed and

streamlined their processes.

They have implemented comprehensive ERP/CRM software to

integrate over 2000 SKUs across different qualities, 30 branch offices, 5

plants and 15000 plus strong dealer networks. This helps them to improve

efficiency in production planning and better inventory and financial

management.

They have harnessed their production facilities, branch offices and

corporate office with a top-of-the-line IT product, SAP –R3. This helps

the organization to optimize better resource mobilization and faster delivery.

The purchase requirements of each and every department in an

organization is informed to the purchase department by placing a PR through

SAP. SAP stands for System Application Protocol. And H&R Johnson (I)

Ltd; Karaikal plant is connected through intranet.

59

Uses of SAP

1. SAP helps to clearly view the profit centre.

2. Helps in employees ESIC scheme (Employee State Insurance)

3. It’s useful to view their past records including the date and time of

entry and person name who made it.

4. While performance appraisal the SAP helps the management to

clearly view the individual employee performance.

5. The operation of various plant can be viewed and its helpful to see

their consolidated financial status.

Demerits in SAP

1. In SAP software code is used, a specific code is provided to make

entries and it want to be memorised by the user to make entries.

2. A specific code is given to each and every employee to enter and

operate it.

3. Ledger headings want to be altered each time.

4. In SAP the entries which are saved cannot be altered.

5. Authorization is tough in SAP.

60

4.6 PRODUCTION

Production Department Chart

Asst. Manager Asst. Manager Asst. Manager Senior Engineer

(Pressing section) (Dipping section) (Glazing section) (Kiln section)

Production Department

The production department is one of the most important departments

in the every organization likewise; in H&R Johnson (I) Ltd it is involved in

manufacturing of ceramic tiles. The production department involves in

conversion of raw material into finished goods.

Activities and Observations

The wall tile manufacturing it includes two main units.

1. Frit Smelter: This plant is useful for making tiles raw material.

2. Tiles Plant: This plant is for making tile as a finished plant.

61

Senior Production Manager

Manufacturing Unit: Frit Smelter

Frit smelter is the name of a plant, which is useful to convert the raw

material into a combination which is expected it’s a basic process of making

tiles. This processed raw material is located on the tiles afterwards.

Raw material used

1. Quartz

2. Barium carbonate

3. Boric acid potassium

4. Nitrate

5. Borax calcite

6. Alumina

7. Zinc oxide

8. China clay

9. Zinc flour

10.Soda ash

11.Calcite

12.Celestine

13.STPP (Sodium Tri Poly Phosphate)

Machine used

1. Weighing machine(for weight)

2. Mixer machine(for mixing)

3. Smelter(for melting)

62

Manufacturing Unit: Tiles plant

This plant converts raw material into a finished product.

Raw material used

1. China clay

2. Ball clay

3. Feldspar

4. Suspending agents

Machine used

1. Loading and unloading

2. Weighing machine (for weight)

3. Conveyor to ball mill

4. Stirrer (stirring the contents )

5. Spray drier

6. Press (for shaping)

7. Drier (for drying shaped biscuits )

8. Biscuits kiln (for biscuits firing)

9. Glaze line (for apply glare )

10.Ball mill (for wet milling)

11.Ball sprayer (for printing design)

12.Screen printer(for printing design)

13.Ghost kiln (for glazed firing)

14.Squaring (rectification of shape).

63

Over All Tiles Plant Layout

64

4.7 LABORATORY DEPARTMENT

In laboratory department the quality of the tiles is checked in various

stages whether it satisfies the requirements.

Stages of Quality Control

The quality of a tile is verified from the raw material stage

1. In ball mill section, after grinding for 8 hours the quality is checked, if

it’s not up to the requirement means again the grinding process starts.

2. In spray drier section the moisturizer of the powder is checked.

3. In dipping line section, screen testing is conducted.

4. In sorting & packing section the tile quality is checked and its sorted

according to its quality.

1. Premium Tiles- Packed in blue colour box, it denotes that the

tiles are in premium quality.

2. Commercial Tiles - Packed in green colour box, it denotes that

the tile is for commercial use with some minor drawbacks.

3. Economic Tiles – This tile is also packed in green colour box,

but in wrapper it’s mentioned that it belongs to economic

quality.

4. Utility – Packed in brown colour box, it consists of some major

drawbacks.

65

4.8 MECHANICAL AND MAINTENANCE

Introduction

H & R Johnson Karaikal plant, have a separate department for mechanical and

maintenance and it’s head is Mr. Sribathi Babu this department is framed because the

whole process of making tiles is automated and the process can take place only if the

machineries are in perfect condition so this department is framed and its

responsibilities is to prevent break down and smooth running in lost

production.

Mechanical & Maintenance Department

H&R Johnson Karaikal plant, manufacturing machineries are

imported from ‘SACMI’ a famous Italian company and a market leader in

manufacturing, manufacturing machineries.

In order to maintain above such machineries mechanics from Italy

will have a periodic visit to the Karaikal plant and mechanics in this

department will have a regular maintenance.

Equipments from ‘Sacmi’ also includes state-of-the art roller kiln with

microprocessor controls a fully computerized quality control and selection

machines and a fully automated packing line. The investment made on plant

was Rs.50 crores.

Karaikal plant, sophisticated double firing technology from the

renowned Italian company ‘SACMI’ using imported glaze from Ferro and

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Torrecid (SPAIN), the Karaikal plant provides a new range of highly

attractive tiles with special effects like luster’s and metallic’s.

In case of any major problems, experts from Italy employees of sacmi

are invited to repair the machineries and all manufacturing machineries are

given full service.

For automatic efficient loading and unloading with a minimal

breakage the plant uses a sophisticated tile loading / unloading machine

called ‘TEKPILE’.

Automatic de-dusting systems ensure a dust-free environment; this de-

dusting is a special feature in pressing the dust particles is recycled.

The plant employs a natural gas for firing which is eco-friendly and

pollution-free it’s a new range of super glaze tiles at it’s acquired in high-

tech Karaikal plant.

5. SWOT ANALYSIS

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SWOT analysis is a tool for auditing an organization and its

environment. It is the first stage of planning and helps marketers to focus on

key issues. SWOT stands for strengths, weaknesses, opportunities, and

threats. Strengths and weaknesses are internal factors. Opportunities and

threats are external factors.

AIM OF SWOT ANALYSIS

1. Reveal the competitive advantages of the firm.

2. Analyze the prospects for sales, profitability and product

development

3. Prepare the company to overcome problems

4. Allow for the development of contingency plans

A. STRENGTHS

1. The plants of company have high quality Tiles

2. The Company enjoys high brand equity.

3. The Company is market leader in India by having 22% total Market

in Organized sector

4. The Company is continuously making profit

5. The Company has achieved many international award which increased

the good will of the company

6. High Production Capacity

B. WEAKNESS

1. Problematic Industrial Relations.

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2. Lack of skilled worker s and professionals in the company

3. Underutilization of sources

4. Trade Union fear 

5. Out-dated Machinery and equipment’s in the plant.

C. OPPORTUNITIES

1. Increase in export and sales because of overseas demand

2. Huge Rural Market

3. Benefits of Economies of Scale

D. THREATS

1. Substitutes such as marbles and granites getting popularity

2. Increase in competition

3. Falling market share

4. Entrance of new foreign companies

5. Financial recession on world economy.

6. Other Organizations may attract employees and business away from

this industry.

6.1 FINDINGS

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After spending two Months at H&R Johnson (India) Ltd, my major

finding in that organization is as follows:

6.1.1 Being a large business unit, all the departments are well organized

and managed by different managers, and all the departments are

functioning very well and active.

6.1.2 The organization structure is divided in to several units like

Finance, Marketing, Operation & Quality, Human and Resources

etc… These all departments are headed by different head units but

at the same time they work for same objective with full co-

ordination which shows the unity level about the organization.

6.1.3 During the study, it was found that it is indeed a healthy

organization with a lot of well unique functions. This organization

basically being an engineering industry, it has a large investment

and a large number of people working in it and there is a well

established organizational structure with the top level management,

the middle level management and the bottom level management.

6.1.4 Regular internal and external audits are conducted to check the

compliance and renewal of certificate. There is a full swing total

quality management system and it works efficiently and ensuring

the total quality of the organization and its product and services.

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6.1.5 In the company’s system of materials management, there are very

less chances of damaged goods and scrap items being raised. The

company takes necessary steps to see that no items become scrap

in the store and damaged goods doesn’t come in and go out of the

company.

6.1.6 The Printing and heating sections are well equipped with all the

necessary requirements and there are well functioning tool rooms

which care to the needs manufacturing. There is also effective

scrap management functions carried out to the utmost profit of the

company.

6.1.7 All the employees and laborers work very hard towards achieving

the goal. Even the higher authorities work very hard without

wasting time towards the organization goal

6.1.8 An organization study also makes me learn that any objective

cannot achieve with a short span of time it has to be done through

systematic ways. Finally, in any organization time management

play important role because each activity should be done at a right

time at right place.

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6.2 SUGGESTIONS

6.2.1 One important suggestion is that more care and concern should be

given to the clients to retain the trust of existing valued customers.

6.2.2 Advertisement like exhibitions do not helps H&R Johnson to

generate so much of business, but they also should be participated

in all exhibitions to generate customer awareness regarding their

entire operations.

6.2.3 Company should try to improve technical service. No doubt the

company products have technically edge over competitors but in

long run they have to build stronger strategies in making their

products.

6.2.4 The company should organize a get together every year so that

sub-dealer performances are reviewed. It would also help to sort

out Grievances and would help to know how the product is moving

in the market.

6.2.5 Samples of New Shades / designs should be made available at all

display counters.

6.2.6 An important area which is to be taken more care is the awarding

of sub contract works. It is advisable that, the company is in a

position to execute the same job which is sub contracting, profit

earning can be increased to a great extent.

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6.3 CONCLUSION

The study in H & R Johnson has enabled me to understand the

various needs of an organization, how an organization functions and how

important it is to have a right relationship between the employee and

employer or the management. The study was conducted with a view to

understand the functions of an organization, and its various departments.

During the course of study I was successful in achieving these objectives

and could familiarize with an organization and its environment. “This study

has improved my confidence by its successful completion to undertake such

studies in the future.”

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BIBLIOGRAPHY

Books

Research methodology : R. Paneerselvam

Research methodology : C.R Kothari

Websites

www.hrjohnsonindia.com

www.wikipedia.com

www.google.com

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ABBREVATIONS

GL - Glaze Line

SKU - Stock Keeping Unit

SAP - System Applications and Products

MIS - Management Information Report

PDO - Product Development Objective

ROCE - Return On Capital Employed

FCF - Free Cash Flow

QC - Quality Control

LOP - Lack Of Performance

ERP - Enterprise Resource Planning

CRM - Customer Relationship Management

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