OS at Royal Latex original - final.docx

Embed Size (px)

Citation preview

  • 8/14/2019 OS at Royal Latex original - final.docx

    1/71

    1

    1.1 INTRODUCTION

    Rubber products are having great influence in our

    day to day life, as we know the use of the rubber products, surgical air bags and

    gloves, mats, many other small products. An organization sustains with the

    corporation and coordination of the employees to achieve the organizational

    goals.

    Practice is the best way by which one can achieve perfection. Practice makes one

    feel and understand the same idea or thing again and again. The more one

    practices, the more errorless one becomes. One doesn't repeat the errors that were

    done previously.

    As master of business administration we have to be aware of not only the

    theoretical aspect of the business but also practicability in the same. The business

    is undergoing cut throat competition and only the fittest can survive. Their for the

    management students must be competitive to update their knowledge in order to

    win stand in the competition

    MG university has a special topic to the syllabus namely ORGANISATION

    STUDY to give practical knowledge about an organization and to make the

    students very sensitive to the changes to the business world

  • 8/14/2019 OS at Royal Latex original - final.docx

    2/71

    2

    1.2 SCOPE OF THE STUDY

    The study covers overall functioning of Royal latex. There is

    much scope in Royal latex for organization study hence it is one of the leading

    firms in the industry with various departments. Entire operation of the

    organization is analyzed with the data available. Study is mainly based upon the

    nature of work carried out by each department. The organizational structure and

    working conditions in Royal latex definitely helped me to understand how a big

    organization is functioning.

    1.3OBJECTIVE OF STUDY

    1. PRIMARY OBJECTIVE

    To study in detail the overall functions of Royal latex and make a report of

    the same

    1. SECONDARY OBJECTIVE

    To study the departmental functions, polices, procedures carried out in theorganization

    To interact with the managers of different designations and to know theirresponsibilities and routine activities

    To observe workers at their working place and to interact with them To observe work culture existing in the organization To know the financial and economic position of the company

  • 8/14/2019 OS at Royal Latex original - final.docx

    3/71

    3

    1.4 METHODOLOGY

    Source of data The relevant data for the study here is collected from the

    following sources:-

    Primary Source Secondary Source

    Primary data:-

    Primary data are collected through discussions and interviews with theofficials of various departments, employees and workers.

    Secondary data:-

    Annual reports Company websites Company documents and files

  • 8/14/2019 OS at Royal Latex original - final.docx

    4/71

    4

    1.5 TOOLS AND TECHNIQES

    In this project report study schedule method interviews and observation

    were the method used to collect data.

    1.6 PERIOD OF STUDY

    A significant period is necessary for analytical study for its clarity

    standardization of data. A period of 30 days is used to make a glimpse over the

    firm to know the core of its functional methods.

    1.7 DATA ANALYSIS

    SWOT analysis is used to analyze the data of the organization study .

    1.8 SIGNIFICANCE OF STUDY

    This study is conducted to find out the various departmental functions, day to

    day activities, to get aware of welfare activities and to get the all the prevailing

    factors in Royal latex.

    1.9 LIMITATIONS OF THE STUDY

    The reliability of the data used in this study mainly depends

    upon the companys recorded information provided by the employees of the

    organization. Information about the procedure in the production department is not

    familiar to Ordinary people. An in- depth study of all the employees of the

    organization cannot be carried out due to shortage of time. The confidentialmatters of the company are not shared with outsiders.

  • 8/14/2019 OS at Royal Latex original - final.docx

    5/71

    5

    1.10 CHAPTER SCHEME

    The entire study is divided into different chapters. This project mainly

    divided into six chapters. Each chapter contains a title and subtitles. The main

    chapters are introduction, industrial profile, company profile, organization profile,

    department profile and the SWOT analysis

    Chapter 1:- The first chapter includes introduction part

    Chapter 2:- The second chapter deals with the Industry profile and world,

    Indian and State scenarios

    Chapter 3:- This chapter is included with the company profile, product

    details, production process and organizational structure

    Chapter 4:- It is the most important chapter which contains the

    departmental details

    Chapter 5:- This chapter deals with the swot analysis, observations and

    suggestions

    Chapter 6:- This is the last chapter which is included with the conclusion

    part of the study

  • 8/14/2019 OS at Royal Latex original - final.docx

    6/71

    6

    1.11 REASONS FOR SELECTING THE COMPANY

    Royal Latex is the third largest supplier of centrifuged latex in India Better structure of the company Impressive communication of the employees Proper guidance and accurate details supplied by the company Increasing profit margin of the company Proper code of conduct and discipline maintained in the company Motivation provide by the HR manager and other employees for

    conducting the OS

  • 8/14/2019 OS at Royal Latex original - final.docx

    7/71

    7

    2.1 INDUSTRY PROFILE

    Since the establishment of the first rubber products

    manufacturing unit in 1921, the Indian rubber products manufacturing industry

    has undergone remarkable growth and expansion, particularly during the post-

    independence era. It has achieved overall development by increasing its size,

    spatial distribution, technological sophistication and more prominently the wide

    range of products manufactured. Besides its self-sufficiency by catering to the

    entire domestic demand, the industry has broken new barriers on the export front

    as well. This chapter gives an overview on rubber and rubber products, their

    production, classification, distribution and consumption pattern, their imports and

    exports.

    INDUSTRY STRUCTURE

    The rubber product manufacturing industry in India is

    basically divided into two major sectors: tyre and non-tyre. The tyre sector

    produces all types of automotive and nonautomotive tyres whereas the non-tyre

    sector produces high technology and sophisticated products and comprises the

    medium scale, small scale and tiny units. Barring industries engaged in raw

    rubber production, there are approx. 4800 rubber based product manufacturing

    units comprising 30 large scale, 300 medium scale and around 4470 SSI and tiny

    sector units, employing four lakh people, including around 22000 technically qua

    lified support personnel, with a turnover of 200 billion rupees and contributing 40billion rupees to the National Exchequer through taxes, duties and other levies.

    Rubber products industry thus plays a core sector role in the Indian national

    economy (AIRIA, 2003)

  • 8/14/2019 OS at Royal Latex original - final.docx

    8/71

    8

    INDUSTRY SCENARIO

    Indian Rubber industry is well established and self-sufficient

    in all respect i.e. Natural Rubber, all Ingredients, Machinery, Technical

    manpower etc. Only deficiency is in the area of Synthetic Rubber, majority of

    which is imported to meet the requirement. Rubber industry of the country has

    developed to a modern state in case of organized sector companies like tyre and

    some of the non-tyre units but the conditions with majority of small scale units are

    far from satisfactory level. During last three decades industry has been adopting

    modern technology and upgrading the machinery and process as well as

    employing qualified persons. Some of the educational institution like IIT,

    Kharagpur & Delhi, MIT, Chennai, MG University, Kottayam and some of thePolytechnic & Organizations are imparting education in the field of Rubber

    Chemistry & Technology, which is useful to the industry.

    The history of the Indian Rubber Industry

    dates back to 1921 with the setting up of the first rubber goods manufacturing unit

    in Kolkata, Dixie Aye Rubber Factory (now Bengal Water Proof Ltd.) for water

    proofing of fabrics. The Bengal Water Proof Ltd. is now a leading manufacturer

    in the non-tyre sector under the trade name Duck Back. Since then the industry

    has completed eight decades of fruitful development and growth particularly in

    the post-independence period and at present, it plays a vital core sector role in

    national economy. It reflected in the consumption of raw rubber by 28 fold from

    29 KT to 802 KT by 1955 56 to 2000-01. The number of rubber industries has

    shot up from about 500 to over 6000. What is more remarkable is the annual

    compound growth rate of 8%, which it has achieved over the last four and a half

    decades NR Production - Backbone of the Industry. The world NR production is

    geographically concentrated in Asia, which accounts for about 92.8% of the total

  • 8/14/2019 OS at Royal Latex original - final.docx

    9/71

    9

    production. In fact, the four largest producers namely Thailand, Indonesia,

    Malaysia and India control more than 80% of the world Natural Rubber

    production

    2.2 WORLD SCENARIO

    The world rubber production is geographically

    concentrated in Asia, which accounts for about 92.8% of the total production. Infact, the four largest producers namely Thailand, Indonesia, Malaysia and India

    control more than 80% of the world Natural Rubber production

    According to the International Rubber Study Group (IRSG),

    the world natural rubber production increased by 6.1% to 10.3 million tons in

    2010, compared to a negative growth of 4.2% during 2009. Global synthetic

    rubber production during 2010 registered a growth of 14.2 % to 14.00 million

    tons as against 12.26 million tons in 2009. Global natural rubber consumption

    increased to 10.67 million tons in 2010 registering a growth of 14.4% compared

    to 9.33 million tons in 2009 due to demand for vehicles and tyres. Global

    synthetic rubber consumption increased to 13.86 million tons during 2010 from

    11.94 million tons during 2009, recording a growth of 16.1%. World NR and SR

    consumption ratio remained unchanged during 2010 and it was 44:56.

  • 8/14/2019 OS at Royal Latex original - final.docx

    10/71

    10

    World rubber consumptionI RSG: Wor ld Rubber I ndustry Outlook

    Jun/2011,

    TOTAL RUBBER

    VOLUME %ANNUAL

    GROWTH

    (IN TONES)

    2008 22656 -3.6

    2009 21348 -5.8

    2010 24610 15.32011 25718 4.5

    2012 27637 7.5

    2013-2015 31044 3.9

    2015-2020 35852 2.9

    1.1

  • 8/14/2019 OS at Royal Latex original - final.docx

    11/71

    11

    2.3 INDIAN SCENARIO

    The history of the Indian Rubber Industry dates back to 1921

    with the setting up of the first rubber goods manufacturing unit in Kolkata, Dixie

    Aye Rubber Factory (now Bengal Water Proof Ltd.) for water proofing of fabrics.

    The Bengal Water Proof Ltd. is now a leading manufacturer in the non-tyre sector

    under the trade name Duck Back. Since then the industry has completed eight

    decades of fruitful development and growth particularly in the post-independence

    period and at present, it plays a vital core sector role in national economy. It

    reflected in the consumption of raw rubber by 28 fold from 29 KT to 802 KT by

    1955 56 to 2000-01. The number of rubber industries has shot up from about

    500 to over 6000. What is more remarkable is the annual compound growth rate

    of 8%, which it has achieved over the last four and a half decades NR Production

    - Backbone of the Industry

    Since the establishment of the first

    rubber products manufacturing unit in 1921, the Indian rubber products

    manufacturing industry has undergone remarkable growth and expansion,

    particularly during the post-independence era. It has achieved overall

    development by increasing its size, spatial distribution, technological

    sophistication and more prominently the wide range of products manufactured.

    Besides its self-sufficiency by catering to the entire domestic demand, the

    industry has broken new barriers on the export front as well.

  • 8/14/2019 OS at Royal Latex original - final.docx

    12/71

    12

    INDIAS POSITION IN GLOAL SCENARIO OF NATURAL

    RUBBER-

    SECOND IN PRODUCTIVITY FOURTH IN PRODUCTION FOURTH IN CONSUMPTION FIFTH IN AREA

    Since the establishment of the first rubber goods

    manufacturing unit in 1921 at Kolkata, the Indian rubber industry has maintained

    its forward march, particularly during the post-independence period. It has

    achieved overall expansion through increase in the range of products

    manufactured, in the number of units, in technological sophistication and self-

    sufficiency. Besides catering to the entire domestic demand, the industry is

    breaking new barriers on the export front. It projects tremendous growth in the

    21st century. The factors responsible for this phenomenal expansion are vast

    internal market, rapid industrialization, on-going economic reforms, and

    improved living standards of the masses.

    India is the fourth largest producer of natural rubber and

    second largest consumer of natural rubber; and fifth largest consumer of natural

    rubber and synthetic rubber together in the world. India is the worlds largest

    manufacturer of reclaim rubber. India is first in productivity of natural rubber.

    The per capita consumption of rubber in India is only 990 Gms. against 9 to 16

    kilos in Japan, USA and Europe. This envisages tremendous growth prospects of

    the industry in the years to come. With around 6000 units comprising 30 large

    scales, 300 medium scales and around 5670 SSI / tiny sector units, manufacturing

  • 8/14/2019 OS at Royal Latex original - final.docx

    13/71

    13

    35000 rubber products, employing directly 400 hundred thousand people,

    including around 22000 technically qualified support personnel. The Indian

    Rubber Industry plays a core sector role in the Indian national economy. The

    industry has certain distinct advantages like - an extensive plantation sector;

    indigenous availability of the basic raw materials, like natural rubber, synthetic

    rubber, reclaim rubber, carbon black, rubber chemicals, fatty acids, rayon, and

    nylon yarn and so on; large domestic market; availability of cheap labour; training

    facility in various technical institutes; improved living standards of the masses.

    All these ground support help the Indian rubber industry to poise for an all-round

    development and a quantum jump in production and technology up gradation innear future. The wide range of rubber products manufactured by the Indian rubber

    industry comprises all types of heavy duty earth moving tyres, auto tyres, tubes,

    automobile parts, footwear, beltings, hoses, cycle tyres and tubes, cables and

    wires, camelback, battery boxes, latex products, pharmaceutical goods, besides

    moulded and extruded goods for mass consumption. The products manufactured

    also cover hi-tech industrial items.

    The important areas which the industry caters to include all

    the three wings of defense, civil, aviation, aeronautics, railways, agriculture,

    transport as also textiles, engineering industries, pharmaceuticals, mines, steel

    plants, ports, family planning programs, hospitals, sports, i.e. practically to every

    conceivable field. India rubber industry is basically divided into two sectors - tyre

    and non-tyre. The tyre sector produces all types of auto tyres, conventional as

    well as radial tyres and exports to advanced countries like USA, EU etc. The non-

    tyre sector comprises the large, medium scale, small scale and tiny units. It

    produces high technology and sophisticated industrial products. The small-scale

    sector accounts for over 50% of production of rubber goods in the non-tyre sector.

    The Indian rubber products have been exported to around 190 countries in the

    world including USA, Russia, UK, Bangladesh, Italy, Nepal, Germany, Oman,

  • 8/14/2019 OS at Royal Latex original - final.docx

    14/71

    14

    France, Saudi Arabia, UAE, African countries etc. and exports have gone up

    manifold. The yardstick to measure the growth rate of the industry is rubber

    consumption. Besides yearly consumption of rubbers - natural, synthetic and

    reclaim, there are other raw materials like carbon black, rubber chemicals, tyre

    cords, plasticizers, process oils, zinc oxide, stearic acid, titanium dioxide, and

    other miscellaneous chemicals which are mostly available indigenously. This

    apart, almost all types of major rubber machinery are being manufactured in the

    country.

    THE INDIAN RUBBER BOARD

    The Indian Rubber Board was constituted under the Rubber

    (Production and Marketing) Act, 1947. This act was passed on the recommendation of an

    adhoc committee appointed by the Government of India in 1945 and it came into force on

    19 April 1947. The Rubber Production and Marketing (Amendment) Act of 1954 made

    certain changes in the constitution of the Board and amended its name as The Rubber

    Board. This act came into force on 1st August 1955. The Rubber Act was furtheramended by the Rubber Amendment Act 1960 which made certain alterations in the rate

    and procedure of collection of cess on rubber. It was again amended by the Rubber

    (Amendment) Act 1982 to enable the Central Government to appoint a part-time

    Chairman/whole time Chairman for the Board and an Executive Director on whole time

    basis (if considered necessary by the Central Government) to exercise such powers and

    perform such duties as may be prescribed or delegated to him by the chairman. This Act

    came into force on 23rd October 1982. The Chairman who is the administrative head of

    the Board, exercises control over all the nine departments. Viz. Administration, RubberProduction, Research, Rubber Processing & Product Development, Statistics & Planning,

    Finance & Accounts, Training, Market Promotion and Licensing & Excise duty. Publicity

  • 8/14/2019 OS at Royal Latex original - final.docx

    15/71

    15

    & Public Relations, Planning, Internal Audit & Vigilance Divisions function directly

    under the Chairman. The functions of the Board as defined under the Act are:

    1. To promote by such measures as it thinks fit the development of the

    rubber industry.

    2. Without prejudice to the generality of the foregoing provision the

    measures referred to therein may provide for:

    a) Undertaking, assisting or encouraging scientific, technological or economic

    research.

    b) Training students in improved methods of planting, cultivation, manuring and

    spraying.

    c) The supply of technical advice to rubber growers.

    d) Improving the marketing of rubber.

    e) The collection of statistics from owners of estates, dealers and manufacturers.

    f) Securing better working conditions and the provision and improvement of

    amenities and incentives to workers.g) Carrying out any other duties which may be vested with the Board as per rules

    made under this Act.

    3. It shall also be the duty of the Board:

    a) To advise the Central Government on all matters relating to the development of

    the rubber industry, including the import and export of rubber.

    b) To advise the Central Government with regard to participation in any

    international conference or scheme relating to rubber.

    c) To submit to the Central Government and such other authorities as may be

    prescribed, half

    Yearly reports on its activities and the working of this act, and

  • 8/14/2019 OS at Royal Latex original - final.docx

    16/71

    16

    d) To prepare and furnish such other reports relating to the rubber industry as may

    be required by

    The Central Government from time to time.

    India is a country of great human resources. In India, Rubber production has rose

    by 4.3% this is because of the excessive rain and favorable natural conditions of

    environment. In Sep 2009 total rubber production is 77,500 tones. At present

    rubber industry is one of the fastest growing industries than other industries. One

    record shows that India has about 6000 rubber manufacturing units. This unit

    produced 35000 kinds of different rubber items

    Boom comes in the automobile industry is one of the biggest factor of this big

    growth. If we took a glace in the production of tyre production than

    manufacturing has increased from 3.48 lakh tones (last year) to 3.75 lakh tones

    (this year). Natural rubber production is increase 7.6%. This is also a major

    contributing factor to the growth of rubber production India is the largest

    manufacturer of reclaim rubber. It comes on the third largest producer of rubber

    all over the world and this is a record.

    In the part of consumption of rubber goods India comes on the fourth position. In

    natural and synthetic rubber goods consumption it comes on the fifth largest

    country. At present India is not only supplying the rubber of domestic market but

    also fulfilling the International requirements. UAE, Germany, UK, USA and

    France are the biggest customer of these rubber products. As consumption level

    has increased so more avenues are explored for the export in Asian countries. The

    demand of rubber products can never vanish because of engineering,pharmaceutical and railways industries has developed, in which these rubber

    products are used. Thus we can say there is always a scope for betterment. In

    India, There are basically two types of rubber industries. One is latex uses as a

  • 8/14/2019 OS at Royal Latex original - final.docx

    17/71

    17

    raw material and the second one uses rubber sheets for the production of rubber

    products. Various natural factors and manmade factors played a part in the

    development in the rubber production. There is an easy availability of raw

    material and labor. Training institutes also provide the training to this labor that

    helped in the growth of this sector. Due to this the lifestyle of common man and

    the demand of quality products increased all over the world. Because of this there

    has been seen 8% growth in this sector. This gives the boost of Indian economy

    and livelihood to many homes. Advance machinery like Rubber cutting machines

    giving a new way to Rubber industry.

    Tires are the number one product that the rubber industry makes. Many people

    who have firestone tires in their vehicles went out and bought new tries because

    they know this is safe. Dueto the new techniques and good public relations rubber

    industry gives an economical strength to India. Rubber products are mainly used

    in industry for commercial purpose and also for residential use. Rubber has

    positioned itself quite strongly in every sector. And this industry is serving

    various applications used for day to day life. This is great achievement for India.

    Sun Exim, reclaimrubber manufacturers & exporters, has established its worth and

    versatility by use in automobile tyres, butyl tubes, cycle tyres & tubes, battery

    containers, tread rubber, belts & hoses, molded & extruded products. Recycling

    is an ecological necessity; but reclaiming plays a crucial role in the economy as

    well. Reclaim rubber helps in save energy and it is ecofriendly. Reclaim is a

    process of de-polymerization, wherein vulcanized waste rubber is ground, treated

    with application of heat, chemicals and is then intensely worked mechanically. A

    total re-use of waste rubber.

  • 8/14/2019 OS at Royal Latex original - final.docx

    18/71

    18

    Forecast

    According to Rubber Board, the production of naturalrubber for the year 2011-12 is projected at 9.02 lakh tons with a growth rate of

    4.6% and the projected consumption for the year 2011-12 is 9.77 lakh tons with a

    growth of 2.9%. For the year 2011-12, import and exports are projected at 1.2

    lakh tons and 50,000 tons respectively.

    IMPORT AN EXPORT

    As per the statistics published by the Directorate General of

    Commercial Intelligence & Statistics (DGCI&S), India has imported 177,637 tons

    of natural rubber during 2010-11 against the import of 177,130 tons during 2009-

    10. Exporters have utilized the advantage of price differential between domestic

    and international price during the initial and terminal months and exported 29,851

    tons of natural rubber during 2010-11 compared to 25,090 tons exported during

    the previous year. The stock of natural rubber as on 31st March 2011 was at

    277,600 tons.

    Import of synthetic rubber by the user industry during

    2010-11 increased to 302,030 tons compared to 250,210 tons during 2009-10.

  • 8/14/2019 OS at Royal Latex original - final.docx

    19/71

    19

    2.4 STATE SCENARIO

    Rubber is an important crop of Kerala. Lots of rubber

    products are made now which are inevitable for modern life. Prosperity of a

    country is measured by the percapita consumption of rubber also. Rubber plays an

    important role in Kerala which decides the economy and social development of

    Kerala. India is in third place in the production of rubber in world. 90% of rubber

    in India is produced in Kerala. Rubber Technology course deals with the

    production of rubber, processing of rubber and rubber product manufacture.

    Rubber is a significant commodity for

    Kerala economy and any price falls follows political ramifications in the state.

    Price increases are also not received well by the tyre manufactures and other

    consuming industries. Moreover, large number of small growers, significant

    presence of growers, cooperatives, State administered procurement programs,

    inconsistent import and export policies and manufacturing facilities spread across

    the country are factors that has made rubber prices significantly volatile.

    The Company expects rubber futures could help the rubber cooperatives

    who have commitment to provide remunerative prices to growers significantly

    because futures contracts will help them to decide the procurement price, will

    help to design forward contracts to suit the needs of growers. And also will help

    growers through price discovery. Industries with natural rubber as the raw

    material too would be able take advantage of rubber futures to manage the price

    risk in a better way.

    Most traded grades in India are ISNR 10 (Indian Standard Natural Rubber)

    and ISNR 20. In Kerala, Kottayam and Kochi are the major trading centers

  • 8/14/2019 OS at Royal Latex original - final.docx

    20/71

    20

    3.1 COMPANY PROFILE

    ROYAL LATEX

    It is this very ethos that has shaped their vision over the years,

    unwavering attention to the needs of their customers in India and abroad.

    Established in 1999, Royal Latex is a producer of high quality 60% Centrifuged

    Latex HA and LA, Skimmed Crepe, RSS4, ISNR and EBC. Located in

    Kanjirapally amidst Indias largest rubber plantations, the state of the art factory

    possesses a production capacity of 6000MT annually .The climate and the soil

    conditions in Kanjirapally, laterite and alluvial soil, rainfall of around 250cm per

    annum, a temperature range of about 200c to 340c and atmospheric humidity of

    80%, ensure that Royal Latex receives a consistent supply of the finest quality

    Field Latex, the raw material for the production of rubber

  • 8/14/2019 OS at Royal Latex original - final.docx

    21/71

    21

    The climate and the soil conditions in Kanjirapally,

    laterite and alluvial soil, rainfall of around 250cm per annum, a temperature range

    of about 200c to 340c and atmospheric humidity of 80%, ensure that Royal Latex

    receives a consistent supply of the finest quality Field Latex, the raw material for

    the production of rubber. Royal Latex is proud to proclaim itself as ecologically

    friendly company. Impact on the environment is controlled by a biological

    treatment plant that functions without the use of chemicals and reductants. Timely

    delivery of consignments to customers the world over is ensured by a dedicated

    transportation fleet and the proximity of the factory to Kottayam, the hub of the

    rubber industry in India and the port of Kochi on the south western coast of India.factory

    Royal latex is a multinational company which has Export to

    different countries. Royal latex has export to countries such as Brazil, Mexico,

    USA, Iran, Malaysia, Pakistan, Germany, Italy, Turkey, Etc. Royal latex have

    employees ranging from 150 to 200.Royal latex works 24 hours in a day, with 2

    shifts. Employees are divided into two groups, which one group works in the

    morning shift and the other at night. Most of the employees are north Indians, so

    the company provides them accommodation facilities

  • 8/14/2019 OS at Royal Latex original - final.docx

    22/71

    22

    QUALITY POLICY OF THE COMPANY

    We committed to customer delight by providing excellent quality, products andservices achieved through continued improvement of our quality management

    system

    3.2 PRODUCTS

    CENTRIFUGED LATEX

    Royal Latex manufactures Centrifuged Latex considered among

    the best in the world for a host of customers including manufacturers of condoms,

    Balloons, Adhesive mattresses and other rubber products. The machinery that is

    used to produce Centrifuged Latex are the Alfa Laval 710 Centrifuges

    manufactured in Sweden.

    DOUBLE CENTRIFUGED LATEX

    Double Centrifuged Latex is highly purified Latex concentrate prepared by

    recentrifuging centrifuged latex that has been suitably diluted. As a result the

    water extractable proteins and non- rubber constituents are further reduced. Films

    prepared from DC latex exhibit greater clarity, low water absorption and high

    dielectric properties. DC Latex finds applications in surgical dipped goods and

    other specialized premium latex products where these properties are important.

    The Latex is generally very stable and has good storage properties

  • 8/14/2019 OS at Royal Latex original - final.docx

    23/71

    23

    ROYAL SPECIAL GRADE

    Royal Special Grade is high quality Latex, which can be made

    according to the specific requirements of customers who require higher quality

    Latex with low VFA & Non Rubber content. For Royal Special Grade VFA 0.02

    max and NRC 1.2 max is standard.

    ROYAL LATEX HA

    Royal Latex HA, Ammoniated Latex, is a high quality, high

    performance Latex. The primary applications for Royal Latex HA include dipped

    goods, carpet backing, foam rubber and rubberized coir.

    Royal Latex LA

    Royal Latex ammoniated latex is high quality

    Centrifuged Latex designed primarily for processes where low ammonia is

    preferred. The ammonia content of LA Latex does not exceed 0.29%. The

    Preservation system in Royal Latex LA consists of a low ammonia concentration

    in combination with Tetramethlythiuram Disulfide and Zinc Oxide. It is primarily

    used for the manufacture of dipped goods, coatings, adhesives and extruded

    rubber thread

  • 8/14/2019 OS at Royal Latex original - final.docx

    24/71

    24

    ROYALS RIBBED SMOKED SHEETS

    Produced exclusively from properly dried and

    smoked, coagulated rubber sheets by excluding block, cuttings, scrap, frothy,

    weak, heated, burnt, air dripped or smooth sheets and visually graded.

    Royal Latex manufactures specialized Sheet Rubber

    under the brand names RSS 001, RSS 004 and RSS 005. RSS 001 is specially

    made for sports bladder and other rubber sports goods manufacturers, tyre tubes

    and aircraft tyres, which require higher tensile strength. By using RSS 001, tensile

    strength of the product increases by 20 to 30 percent more than a competitors

    product. Foam manufacturers use this rubber, which helps provide better

    compression results (10% to 20%) RSS 004 and RSS 005 are used in tyres, rubber

    mats, chapels and rubber bushes. Consumption of rubber coir is brought down by

    10% to 15% without affecting quality. Skim Crepe The skim fraction that is a by-

    product of centrifuging processes has 3% - 4% rubber content. Such a lowpercentage plus an increased proportion of non-rubber constituents demand that to

    recover the rubber, a very strong acid be used. Such a recovery using sulphuric

    acid has its ill effects on the rubber content. This grade, though not technically

    good, is still very viable economically and is used in non-critical applications. The

    coagulated rubber is thoroughly washed with water and creped by passing through

    a battery consisting of coarse rollers and finally smooth rolled. The sheet obtained

    is dried and is marketed as skim crepe. This rubber is very fast curing and results

    in hard vulcanisates. The manufacturer can thus save on expensive accelerator

    dosage.

  • 8/14/2019 OS at Royal Latex original - final.docx

    25/71

    25

    Applications

    Binding agent for:

    * Recon, leather board

    * Rubberized hair

    * Granules (i.e. cork)

    * Foam rubber

    * Adhesives

    * Textile coating and impregnation

    * Can sealants

    Dipped articles such as:

    * Household gloves

    * Examination gloves

    * Industrial gloves

    * Surgeons gloves* Catheters

    * Teats and soothers

    * Breather bags

    * Tubing

    * Balloons

    * Condoms

  • 8/14/2019 OS at Royal Latex original - final.docx

    26/71

    26

    Estate Brown Crepe

    This is an economically important rubber, though of a lower

    grade. The tree lace (rubber in the tapping cut, channel and spout) and cup lump

    (rubber in collection cups) are the chief raw materials in the production of Estate

    Brown Crepe. It is first soaked in water and creped, first through coarse rollers

    and finally in a smooth roll mill. The crepe thus formed is dried and usually has a

    brown to tan color. Estate Brown Crepe is used in applications like shoe soles and

    in non-critical tyre compounds. Specifications for ISNR Grades achieve d by

    Royal Latex

    Quality Control Our quality control

    department continually monitors the processes that manufacture the Latex that we

    supply. Right from the Field Latex that is procured from the rubber estates in

    Kottayam district to the packaged end products that leave our factory, we ensure

    that the benchmarks in quality parameters are strictly adhered to.

  • 8/14/2019 OS at Royal Latex original - final.docx

    27/71

    27

    3.3 PRODUCTION PROCESS

    COLLECTING FIELD LATERoyal latex collects field latex from its own plantation and

    from primary producers from all over Kerala. The employees of royal latex

    collect the field latex in drums

    STORING. The latex so collected contains high ammonia content. The

    collected field latex is stored in the store house of the company and it is taken

    when it is required.

    COLLECTING TANKFirst the field latex is poured into a tank which is called the

    collecting tank. 250 drums of latex is required to fill the tank. The tank is tiled

    inside in order to avoid the gluing of latex over the walls. The field latex so

    collected is added with chemicals and kept for 30 hours. During this time the

    unwanted dust particles in the field are removed. During this time the dust

    particles are drawn to the bottom. The top latex are further collected to the

    secondary tank

  • 8/14/2019 OS at Royal Latex original - final.docx

    28/71

    28

    CENTRIFUGATION MACHINEAfter the filtration the latex is further moved to the centrifugation

    machine, which centrifuges the latex. The machine rotates 7200 times in one

    minute. Centrifugation is a process by which the DRC content of the latex is

    increased. DRC means dry rubber content. The field latex contains only 30% of

    DRC, and by centrifugation the denser content in the latex is accumulated to the

    bottom, that is DRC. Thus produced DRC latex is moved to two different tanks

    which one is used to make HA latex and other for LA latex. The high ammonia

    latex dont need further purification because the ha latex contain high ammonia.

    LA LATEXThe second latex is added with chemicals and kept for some

    hours in order to reduce the ammonia content. This latex is called LA latex. This

    is collected in plastic bags in drums as prescribed by the customers. It is loaded in

    trucks and thus transported .The byproduct of this production process is calledskim. Skim is a type of latex which contains very low DRC. The skim is collected

    to a tank called skim tank. This is added with sulphuric acid and left for

  • 8/14/2019 OS at Royal Latex original - final.docx

    29/71

    29

    coagulation. After this process we get skim creep, it is almost like smock sheet

    which is used to make chapels bed etc.

    PACKAGING OPTIONS

    Royal Latex is available in bulk in tank containers or tank

    lorries and in drums. Both centrifuged and creamed latex is packed in barrels. One

    barrel contains 205 litres .These barrels are sealed .centrifuged latex is also

    packed in polythene bags also.

    Drums

  • 8/14/2019 OS at Royal Latex original - final.docx

    30/71

    30

    ISO CERTIFICATION

    ISO is a set of international standards which

    ensures the quality of products and operations. ISO 9000 is rapidly becoming the

    most important quality management standard in the world. Thousands of

    companies in over 100 countries have already adopted it, and many more are in

    the process of doing so. Why? Because it controls quality. It saves money.

    Customers expect it. And competitors use it. ISO 9000 can be applied to all types

    of organizations. It doesn't matter what size they are or what they do. It can help

    both product and service oriented organizations achieve standards of quality that

    are recognized and respected throughout the world. ISO is the International

    Organization for Standardization. It is located in Switzerland and was established

    in 1947 to develop common international standards in many areas. Its members

    come from over 150 national standards bodies.

  • 8/14/2019 OS at Royal Latex original - final.docx

    31/71

    31

    Why is ISO 9000 Important?

    ISO 9000 is important because of itsorientation. While the content itself is useful and important, the content alone

    does not account for its widespread appeal.

    ISO 9000 is important because of its

    international orientation. Currently, ISO 9000 is supported by national standards

    bodies from more than 150 countries. This makes it the logical choice for any

    organization that does business internationally or that serves customers who

    demand an international standard of excellence. ISO is also important because of

    its systemic orientation. We think this is crucial. Many people wrongly emphasize

    motivational and attitudinal factors. The assumption is that quality can only be

    created if workers are motivated and have the right attitude. This is fine, but it

    doesn't go far enough. Unless you institutionalize the right attitude by supporting

    it with the right policies, procedures, records, technologies, resources, and

    structures, you will never achieve the standards of quality that other organizations

    seem to be able to achieve. Unless you establish a quality attitude by creating a

    quality management system, you will never achieve a world-class standard of

    quality. Simply put, if you want to have a quality attitude you must have a quality

    system. This is what ISO recognizes, and this is why ISO 9000 is important.

  • 8/14/2019 OS at Royal Latex original - final.docx

    32/71

    32

    3.4ORGANIZATIONAL STRUCTURE

    MD

    Finance

    Manager

    Purchase

    Manager

    Sales

    Manager

    Marketing

    Manager

    HR ManagerProducti

    Manag

    Accou

    ntant

    Cashier Office

    Assistant

    Stock Accountant Computer

    Assistant

    Despatch Manager Service Manager

    Factory

    Manager

    Manager

    Accounts &

    Administration

    Depo Manager Sales Executive

    Shift

    Supervisor

    Loading

    Supervisor

  • 8/14/2019 OS at Royal Latex original - final.docx

    33/71

    33

    4.1 DEPARTMENTAL STUDY

    There are 5 Departments in royal latex, they are

    1. Finance department2. Purchase department3. Sales department4. HR department5. Production department

  • 8/14/2019 OS at Royal Latex original - final.docx

    34/71

    34

    4.2 FINANCE DEPARTMENT

    The field of finance refers to the concept of time, money, risk and how they are

    related. Thus the term finance incorporates the following.

    1. The study of money and other assets.2. The management and control of those assets3. Profiling and managing project risks4. The science of managing money

    Finance is the base of all the corporate activities in the day to day world.

    Management of finance is broadly concerned with acquisition and use of funds by

    business firm. Financial management is the job of finance department. Royal

    Latex financial department is headed by general manager administration; major

    functions of finance department can be summarized in to three that is planning of

    resources, allocation of resources and control resources

    OTHER FUNCTIONS

    Banking relationship

    One of the most important functions of finance department is the relationship with

    bank. Royal latex is having the transactional relationship with the South Indian

    Bank. The banking relationship includes

    Bank deposit Providing loans

  • 8/14/2019 OS at Royal Latex original - final.docx

    35/71

    35

    Over draft Discounting of bills Issuing and collection of cheques etc.

    These banking functions help the smooth and easy functioning of the finance

    department. In Royal Latex the banking functions are used for issuing cheques to

    the suppliers, to rediscount the bills received from the customers, to take loans for

    financial assistance etc.

    Internal audit

    Internal audit is the audit conducted by the company itself. Royal latex also

    conducts internal auditing of the financial records periodically and employees are

    recruited for this purpose

    Cash management

    Cash management involves the management of cash out flow and inflow of the

    company, In Royal latex a large amount of cash is received from the customers

    and paid to the dealers, the cash flow is managed by the accountant under the

    guidance of the finance manager 54

    Taxation

    Taxation is another procedure related to finance, hence it is something related to

    money, it is deled by the finance department. It includes the valuation of assets

    and liabilities and making the payment to the tax authorities

  • 8/14/2019 OS at Royal Latex original - final.docx

    36/71

    36

    Expense analysis

    Hence Royal latex is associated with a big factory; there are a lot of expenses

    incurred for the company. For that the Royal latex prepares a income and

    expenditure account, which would record in detail the income and expenses of the

    company

    Preparation of final account

    One of the important functions of the finance department is to prepare the finalaccounts, which includes the preparation of journals, ledger, trail balance, profit

    & loss account, balance sheet etc. It is also a complex job performed by the

    finance department. And it is also important for the purpose of auditing

    RESPONSIBILITIES OF FINANCE MANAGER

    Arrangement of short term and long term funds

    To make decisions regarding the financial feasibility of projects To focus on the cost minimization and profit maximization Right mixture of the debt and equity Prepare the right financial statement Capitalization Evaluation of financial activities

  • 8/14/2019 OS at Royal Latex original - final.docx

    37/71

    37

    VALUATION OF INVENTORY

    PARTICULAR METHOD

    Raw materials At cost based on monthly weighted average method

    Stores and spares At weighted average cost

    Waste At the rate actually realized for the stock

    Work in progress At cost of net usable value whichever is lower the latterbeing actual value subsequently realized for the stock

  • 8/14/2019 OS at Royal Latex original - final.docx

    38/71

    38

    DEPARTMENTAL STRUCTURE

    MD

    Manager of Finance

    Account

    Cashier

  • 8/14/2019 OS at Royal Latex original - final.docx

    39/71

    39

    4.3 SALES DEPARTMENT

    The concept of sales department is that the company has to promote and

    push their products and in the market, it cannot expect its products to get picked

    up automatically by the customers. Heavy advertising, high power personal

    selling, price discounts and strong publicity and public relation are the normal

    tools by which organizations relay on this concept

    FUNCTIONS

    The sales of all the Royal Latex products are based on the head office policies and

    norms. The sales department receives orders from agents and dealers and passes

    the orders to the factory managers for production. The final product is then moved

    to the dispatch manager and then sold to the customers as per the order and finally

    reaches the customer. Receiving orders and giving report the productiondepartment are the leading functions of sales department

  • 8/14/2019 OS at Royal Latex original - final.docx

    40/71

    40

    DEPARTMENTAL STRUCTURE

    MD

    Sales Manager

    Stock Assistant

    Accountant Computer assistant

    General

  • 8/14/2019 OS at Royal Latex original - final.docx

    41/71

    41

    SALES PROCESS CHART

    Sales order/Sales manager

    Factory Manager/Final Production

    Dispatch Manager

    Customers

    Consumers

  • 8/14/2019 OS at Royal Latex original - final.docx

    42/71

    42

    DISTRIBUTION CHANNELS

    Direct Dealers International Agents Retail Dealers

    SALES PROMOTIONAL ACTIVITY

    To safe guard its customers and to keep a very strong

    relationship with them, they are considered as the family members to the

    company. The sales executive makes regular visit to the agents and retarders and

    provides all kinds of information, agreement and facilities. The prime factor of

    Royal Latex sales promotion policy is that the right quality product at the right

    time to the right party

    PRICING

    The company adopts cost of profit pricing policy for its products.

    This is due to the fact that there are agriculture based products and are seasonal in

    nature. The price rate is adopted by the company with regard to the leading

    competition also

  • 8/14/2019 OS at Royal Latex original - final.docx

    43/71

    43

    4.4 MARKETING DEPARTMENT

    Marketing is the economic process by which goods and services are

    exchanged between the market and the user, and their values determined in terms

    of money. Marketing is the process by which the products are made bought by the

    customers by providing required products in the specified quality. The concept of

    marketing was born out of the awareness that a business to start with the

    determination to the customer wants and ends with satisfaction of those want.

    MARKETING DISTRIBUTION CHANNEL

    Company Deposit Stockiest Dealers Customers

    EXPORT MARKETING

    Royal latex is a multinational company which has Export to

    different countries. Royal latex has export to countries such as Brazil, Mexico,

    USA, Iran, Malaysia, Pakistan, Germany, Italy, Turkey; Etc. Royal Latex is

    having an immediate plan to expand the export business

  • 8/14/2019 OS at Royal Latex original - final.docx

    44/71

    44

    DEPARTMENT STRUCTURE

    MARKETING MANAGER

    Dispatch Manager Service Manager

    Depot Manager Sales Executive

    MD

  • 8/14/2019 OS at Royal Latex original - final.docx

    45/71

    45

    4.5 HUMAN RESOURCE DEPARTMENT

    HR management is the planning, organizing, directing and

    controlling of the human resource in the organization. The personal department is

    responsible for recruitment, selection, placement, training, performance, keeping

    of records, compensation etc. of the employees. The office assistants assist them

    in the procedures.

    In royal Latex, the personal department keeps full record for every

    worker employed in the organization. The record is kept on a card known as

    employees history card, this card includes the following details about the worker.

    1. Name2. Department3. Grade4. Starting pay5. Address6. Date of birth7. Marital status

    FUNCTIONS

    1. HR planning2. Selection3. Recruitment4. Performance appraisal5. Organizational change and development6. Training

  • 8/14/2019 OS at Royal Latex original - final.docx

    46/71

    46

    RECRUITMENT

    Royal Latex recruitment board consists of 3 members who handlethe recruitment process in which applications are collected and called for

    interview. The board is the final authority regarding the appointment of staff.

    Factory manager is entrusted with the duty of recruiting the factory

    workers. Nearby locality people are usually recruited as workers. And workers are

    recruited on contract basis

    SELECTION PROCESS

    The selection procedure adopted by Royal Latex;

    1. Scrutiny of applications

    The personal department will first scrutinize all the applications

    received. Only those applications will be taken as the criteria for the post

    2. Blank application form

    A bank application form is used for getting written information about

    the candidates in his or her own handwriting. The application form contains the

    information like name, place of birth, date of birth, marital status, qualification,

    experience etc.

  • 8/14/2019 OS at Royal Latex original - final.docx

    47/71

    47

    3. Interview

    A group of selected candidates are interviewed in a face to face contact

    with the interview board; they are given a topic to discuss. When the candidate

    makes comments and counter points, the board evaluates their ability to

    communicate, presence of mind, confidence; language, expression etc. and

    judgments are made.

    REFERENCE

    References are conducted on those candidates who are found suitable

    in the tests and interviews. Reference can be collected from previous employees

    also.

    TRAINING AND DEVELOPMENT

    Training is given periodically to both staffs and workers.

    Training is given by the managers as well as the private consultants. Training is

    given on the subject matter of machinery, chemicals, pavements etc.

    MONETARY BENEFITS

    Basic pay DA Production bonus Incentive

  • 8/14/2019 OS at Royal Latex original - final.docx

    48/71

    48

    STATUTORY WELFARE MEASURES

    Canteen facility Rest room Lunch room Drinking room Safety measures Protection against fire Medical benefit PF

    NON STATUTORY MEASURES

    Job opportunity to dependence Uniform Advance payment Training facilities

    REWARD

    Wages is being given to the workers as per the agreement.

    Workers are given daily wages and are collected in monthly base. The wages

    includes the dearness allowance and basic payment.

  • 8/14/2019 OS at Royal Latex original - final.docx

    49/71

    49

    MEETINGS

    Meetings are conducted every month. Directions are given to theemployees and suggestions are invited. Changes in the working of the company

    and future plans regarding the growth and development of the company

    JOB OPERATIONS AND SCHEDULE

    Job rotation and job schedule are favorably done for both office

    staff and workers. Factory manages job relation and schedule for workers.

    TIME KEEPING

    Methods of time keeping:-

    Attendance register method Punching system

    SHIFTS

    The company adopts 3 shifts in the factory and only 1 shift in the office

    Factory Office

    8.30 am to 4.30 pm 8.30 am to 4.30 pm

    4.30 pm to 12.30 am

    12.30 am to 8.30 am

  • 8/14/2019 OS at Royal Latex original - final.docx

    50/71

    50

    DEPARTMENTAL STRUCTURE

    MD

    HR manager

    Factory Manager

    Manager Accounts and

    Administration

  • 8/14/2019 OS at Royal Latex original - final.docx

    51/71

    51

    4.6 PRODUCTION DEPARTMENT

    Production is one an important function in all the industries.

    Production means converting the raw materials into finished products with the

    help of certain process. Production is the transformation of input into output. It is

    the core function of every business.

    Production department is one of the busiest departments in Royal latex.

    The production department is given more care hence there is mass production and

    complicated processes. The production department makes planning and directions

    on amount of raw materials available, capacity of the production unit, amount to

    be produced etc. Thomson rubbers now have a cool dry storage area with a

    minimum capacity of 6000 to 8000 barrels of field latex and desludging tank with

    a capacity of 70000 litres

    CONTENTS IN THE PRODUCTS

    Double centrifuged royal DC

    i. Dry Rubber Content, - wt. % 60ii. Total Solids Content,- wt. % 60.5 - 61

    iii. Alkalinity - ammonia,- wt. % 0.6 - 0.78iv. Non Rubber Content,- wt. % 0.5 - 1v. Volatile Fatty Acid,- wt. % 0.025

    vi. KOH No.- 0.3 - 0.5vii. pH - Value -10.5

  • 8/14/2019 OS at Royal Latex original - final.docx

    52/71

    52

    viii. Mechanical Stability, -sec- 800 - 1200ix. Coagulum,- wt. % 0.002x. Sludge,- wt % 0.004

    xi. Chemical Stability,- sec 100xii. Viscosity,- cps 50 -100

    xiii. Copper,- ppm Tracexiv. Manganese,- ppm Tracexv. Odour after boric acid - No putrefactive

    xvi. Neutralization - odourxvii. Colour - White

    Centrifuged latex Royal HA

    I. Dry Rubber Content, wt.% 60II. Total Solids Content, wt.% 61.5

    III. Alkalinity - ammonia, wt.% 0.6 - 0.8IV. Non Rubber Content, wt.% 1.5V. Volatile Fatty Acid, wt.% 0.03 - 0.05

    VI. KOH No. 0.5 - 0.8VII. pH - Value 10.5

    VIII. Mechanical Stability, sec. 800 - 1200IX. Coagulum, wt. % 0.004

  • 8/14/2019 OS at Royal Latex original - final.docx

    53/71

    53

    X. Sludge, wt % 0.006XI. Chemical Stability, sec 100

    XII. Viscosity, cps 50 -100XIII. Copper, ppm TraceXIV. Manganese, ppm TraceXV. Odour after boric acid neutralization No putrefactive odour

    XVI. Colour - White

    Centrifuged latex Royal Latex

    I. . Dry Rubber Content, - wt. % 60II. Total Solids Content, - wt. % 61.5

    III. Alkalinity - ammonia, - wt. % 0.25 - 0.3IV. Non Rubber Content, - wt. % 1.5V. Volatile Fatty Acid, - wt. % 0.03 - 0.05

    VI. KOH - No. 0.5 - 0.8VII. PH - Value 10.5

    VIII. Mechanical Stability, - sec. 800 - 1200IX. Coagulum, - wt. % 0.004X. Sludge, - wt % 0.006

    XI. Chemical Stability, - sec 100XII. Viscosity, - cps 50 -100

    XIII. Copper, - ppm Trace

  • 8/14/2019 OS at Royal Latex original - final.docx

    54/71

    54

    XIV. Manganese, - ppm TraceXV. Odour after boric acid neutralization - No putrefactive odour

    XVI. Colour - White

    Estate Brown Crepe

    I. Nitrogen (Max) 0.60 0.60 0.50 0.60 0.60II. PO (Min) 30 30 35 30 30

    III. PRI (Min) 60 50 57 40 30IV. Grade ISNR 5 ISNR 10 ISNR 20 ISNR 20 ISNR 50V. Dirt % 0.05 0.10 0.15 0.20 0.50

    VI. Volatile Matter % 0.80 0.80 0.80 0.80 0.80VII. Ash Content (Max) 0.50 0.75 0.75 1.00 1.50

    FUNCTIONS

    1. RoutingRouting deals with laying down of path along which materials are

    to travel in the process of production. To determine the sequence in which

    various operations are to be performed

    2. LoadingAfter establishing the route, the work is to be loaded against the

    concerned machines and equipment. It implies the quantity of work

    assigned to a machine or worker.

  • 8/14/2019 OS at Royal Latex original - final.docx

    55/71

    55

    3. DispatchingDispatching deals with the release of orders and instructions in

    accordance with the planned timings as embodied in operation sheets,

    route cards and loading schedules in order to make the action

    4. ProcessingPerforming the production process, it includes the working of the

    machines, equipment and workers to produce the product.

    5. Follow upIt includes collecting the information about the amount of

    production, the percent of defective and giving detailed report the

    departments

  • 8/14/2019 OS at Royal Latex original - final.docx

    56/71

    56

    PRODUCTION PROCESS

    Collecting field latex

    Storing in the store house

    Field latex poured into the tank

    Top latex collected into a secondary tank

    Filtration

    Moved into the centrifugation machine

    DRC latex is produced

    Adding chemicals to the second latex

    LA latex is produced

  • 8/14/2019 OS at Royal Latex original - final.docx

    57/71

    57

    DEPATMENT STRUCTURE

    MD

    Production Manager

    Shift Supervisor Loading Supervisor

  • 8/14/2019 OS at Royal Latex original - final.docx

    58/71

    58

    4.7PURCHASE DEPARTMENT

    The purchasing department will be responsible for

    providing the materials, components and equipment required to keep the

    production process running smoothly. A vital aspect of this role is ensuring

    stocks arrive on time and to the right quality. Purchase is an important

    boundary function that support operations by acquiring major resources

    for the conversion process. Purchasing functioning which provides materials

    supplies and service from outside vendors for manufacturing firms involved

    in assembly. It is not unusual of the cost of purchased materials to exceeded

    as a percent of total product cost, the value added internality to the product

    through manufacturing and assembly. The purchase procedure covers the

    following areas procurement of goods and service for the company.

    1. Capita items (For project and other purposes)

    2. Equipment and spares.

    3. Raw material & Intermediary materials

    4. Package items involving design, supply, erection and commissioning.

    To perform the functions effectively, the purchase department is guided by

    the following procedures

  • 8/14/2019 OS at Royal Latex original - final.docx

    59/71

    59

    PURCHASE REQUISITIONS

    The purchase officer does not initiate any action for the purchasing ofmaterials in his own accord. With the help of purchase requisitions, the

    purchase officer comes to know the type of materials needed by organization.

    A purchase requisition is a form used as a formal request for the purchasing

    department to purchase materials

    EXPLORING THE SOURCES OF SUPPLY & SELECTING

    THE SUPPLIER

    The source of supply of materials is to be selected after the receipt of

    purchase requisition. The process of choosing the supplier is not a hard task.

    The store keeper generally mentions the name of current suppliers, their price

    quotations and the purchase department also has a series of good suppliers.

    Choosing the right supplier from the supplier list involves a process of

    comparison of statement of purchases. It is prepared by the purchase

    department

    PURCHASING ORDER

    After choosing the supplier, the purchase department prepares the order for

    the supply. The order is a written authorization to the suppliers to supply the

    particular materials or material. It is the documentary evidence between the

    buyer and the supplier having the terms and conditions of the purchasing order

  • 8/14/2019 OS at Royal Latex original - final.docx

    60/71

    60

    RECEIVING & INSPECTING MATERIALS

    In large concerns, a separate receipt & inspection department independent ofstocking location should be set up to receive and inspect the materials. But in

    small concerns, the work is done by the store keeper. In Royal Latex, the

    production department effects the general purchase. When goods are received

    in stores , the consuming department is informed and its personnel inspect the

    quality, quantity etc.

    CHECKING PASSING BILLS OF EXCHANGE

    The payment terms of the company are ;-

    Against invoice or acceptance of stock a minimum 15 days credit In case of monopoly suppliers, payment is made through banks

    VENDOR SELECTION

    The company has a list of suppliers for all its purchase. The company invites

    tenders through advertisement in newspapers and in the internet. The suppliers

    tender quotations and after a detailed study of the concerned department, the

    supplier is selected and the order is placed.

    VENDOR RATING

    A vendor is rated according to his monopoly in the market, brand equity of

    the products, his established dealings with other reputed organizations. There is

    a vendor evaluation committee for the vendors. The committee consists of

    officers from concerning finance and material departments. The vendors rated

    below 50% are removed from the lists. Vendors rated between 50% & 75% are

    advised to improve their quality

  • 8/14/2019 OS at Royal Latex original - final.docx

    61/71

    61

    Point of supply of raw materials

    1. Latex Kottayam Idukky Ernakulam Kozhikode and Thrissur

    2. Chemicals Bangalore

    Chennai Kolkata Mumbai

    3. Packing materials Alleppy Mumbai Kolkata Andhra

    FUNCTIONS

    Turn over analysis Receiving purchase requisition Locating the source of supply Choosing a supplier Purchase order Follow up Purchases monitoring and invoice checking Purchase policies

  • 8/14/2019 OS at Royal Latex original - final.docx

    62/71

    62

    DEPARTMENT STRUCTURE

    MD

    Purchase Manager

    Office Assistant

  • 8/14/2019 OS at Royal Latex original - final.docx

    63/71

  • 8/14/2019 OS at Royal Latex original - final.docx

    64/71

    64

    WEAKNESS

    Heavy work load :- Hence the company is working for 24 hours, thereheavy work load

    Insufficient sales promotional activities :- Even though many marketingopportunities are available, the company is not performing any

    promotional activities

    Tax and excise duty :- Hence the company is having more exports, largeamount of tax and excise duty has to be paid

    Under developed roads :- The nearby roads to the company are damagedand under developed. This affects the smooth and fast transportation of

    products and raw materials

    As Royal latex works for 24 hours the human resource managementafter 5pm is not effective. :- After 5pm human body connot work

    effectively, therefore work after 5pm is not effective

    As 50% of the workers are north Indians the communication is not soeffective :- In Royal Latex about 50% of the employees are north Indians,

    therefore ther is a communication gap between the supervisors and the

    workers

  • 8/14/2019 OS at Royal Latex original - final.docx

    65/71

    65

    OPPORTUNITIES

    Reduction in the export restrictions :- Now there are some reductionsin the export restrictions made by the Government, since the Royal Latex

    is having more of exports, the company can utilize those opportunities

    Plantation of more rubber in the locality :-Plenty of land is availablein thhe company locality, company could buy those lands and make more

    rubber plantations, which would be an asset in the future

    Improved technologies :- More advanced technologies are availablenow, which would improve the working standard and conditions in the

    company

    More productive machines :- Since the company is blessed with plentyof raw materials and sales order, more productive machines could change

    the present scenario of the company

    Better roads :- The company could make a negotiation with thePanchayat to make better roads , which will be also in the interest of the

    society

  • 8/14/2019 OS at Royal Latex original - final.docx

    66/71

    66

    THREATS

    Pollution :- Pollution is a serious threat for the company, hence manychemicals are used in the company, which may cause pollution

    Tax :- Tax is another issue of the company. As the company makesheavy purchase of chemicals and more of exports. The tax rates are always

    fluctuating

    Transportation :- As the roads to the company are damaged. It will bea major threat in the future, if proper maintenance is not made

    Increasing cost of production :- The increasing cost of productionis another threat. Cost of raw materials, salary of personnel, transportation

    cost, production cost etc. are increasing day by day

  • 8/14/2019 OS at Royal Latex original - final.docx

    67/71

    67

    5.2 OBSERVATIONS

    The company is providing good working conditions. The production department is having all machineries for the efficient

    production.

    There is no proper planning and control of the inventory. The process of control and monitoring is not efficient. The new workers are provided with less training. There is not fully fledged Research and development department. Workers health and safety are given prime importantance. The quality of the products manufactured in the company is very high.

  • 8/14/2019 OS at Royal Latex original - final.docx

    68/71

    68

    5.3 SUGGESTIONS

    Should introduce a research and development department A finer degree of professionalism should be introduced Company can adopt more use of information technology for better

    functioning It can expand the capacity of plant to meet the foreign demands. Increase the productivity in order to get more economy in

    production

    Expand the export relations Should introduce a proper inventory control method A supervisor who could communicate properly with the north

    Indian workers must be employed

    Proper training programs should be designed for the employees A better pollution control system should be introdused

  • 8/14/2019 OS at Royal Latex original - final.docx

    69/71

    69

    6.1 EXPERIENCE IN THE COMPANY

    The management and staff as a whole showered its

    enormous help towards the completion of the Organization Study. The employees

    spent their valuable time irrespective of their work schedule. These 30 days

    Organization Study helped me to familiarize with the organization and its

    functions. And I got unstinted support and assistance from my Guide and other

    officials. This study helped to learn more about organization structure and duties

    of its various departments. I got information about various departmental activities

    of the company. Moreover I learned how a company is successful in the high

    competitive market. The Organization Study is the result of whole hearted support

    of the entire staff. The employees were cordial and helping. As a whole I got an

    interesting and informative experience in the Royal latex.

  • 8/14/2019 OS at Royal Latex original - final.docx

    70/71

  • 8/14/2019 OS at Royal Latex original - final.docx

    71/71

    REFFERENCE

    Books

    1. Arun Kumar and Meenakshi, (2006), - Marketing Management, secondedition, Vikas publishing house Pvt Ltd New Delhi.

    2. Kothari.C.R- Research Methodology methods & techniquesNew age international publishers, 2004.

    3. Aswathappa K- Human Resource & Personnel ManagementTata McGrawHill publishing co. ltd., 1999.

    4 Pandey.I.M -Financial Management

    Vikas publishing house pvt ltd, 2000.

    Websites

    1. https://www. wikipedia.com2. https://www.royallatex.com3. https://www.google.com

    http://www.wikipedia.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.royallatex.com/http://www.royallatex.com/http://www.royallatex.com/http://www.google.com/http://www.google.com/http://www.google.com/http://www.google.com/http://www.royallatex.com/http://www.wikipedia.com/