DECLARATION

This project report entitled "An Organization Study At Solve Plastic Products pvt Ltd,

punalur" is a bonafide work done by me under the guidance and supervision of Ms Blessy

Elizibath and submitted to Mahatma Gandhi University , Kottayam, is a practical

requirement of fulfillments of the degree of Master of Business Administration. The

empirical findings in this report are based on the data collected by myself. No part of this

project has been reproduced or copied from any report on the university.

ACKNOWLEDGEMENT

Words are always found inefficient in expressing thanks, gratitude and reverence. I would

like to thank those who have helped me immensely with their valuable suggestions,

1

comments, support and love for the successful completion of this project.

First of all, I express my deep gratitude to God almighty who guided me in the right to

make this project a success. At the very outset,

I wish to convey my sincere thanks to Mr sudheer,MD and Ms Bindhu,head of the

finance department ,Solve Plastic Products Pvt Ltd for her valuable and sincere help and

advice, which helped me to conduct this project work very successfully.I express my

deep scene of gratitude to Mr pradeep project guide of BALCO groupsand also thank all

the officers and staff of Solve Plastic Products Pvt for giving me valuable information

and assistance for completing my Organization Study successfully.

.

I would also like to thank my beloved parents and my friends for their external source of

encouragement, inspiration and moral support, without which it would have been almost

impossible to complete this project.

Sumith.s

Caarmel college

pathanamthitta

Table of Contents

Chapter Subject Page Number

Chapter-1 Introduction

2

1.1 Objectives

1.2 Scope of study

1.3 Methodology

1.4 Limitations of the study

Chapter-2

Profile

2.1 Industry Profile

2.2 Company Profile

2.3 Product Profile

Chapter-3

Department Analysis

3.1 purchase and production

department

3.2 Human resource department

3.3 Finance department

3.4 marketing department

3.5 Quality Control Department

Chapter-4 SWOT Analysis

Chapter-5 Findings & Suggestions

Conclusion

Bibliography

Appendices

3

CHAPTER-1

INTRODUCTION

4

INTRODUCTION

The advent of globalization has brought itself many changes. Corporation across the

globe are finding this kind of business environment tough to operate. However as there is

as saying,’ every change is to have a two side effect’, the same happens with

globalization to. It has in a enormous opportunity. As a result, companies are always

willing to bring in efforts to become the leaders and thus enjoying their high market

share.

After the arrival of IT companies on global scenario, now the manufacturing companies

are following the same suit and growing globally at a fast rate. Quality is now one of the

prime fields of attention for the manufacturing companies. They believe in giving the

maximum possible quality and thus earning sound profit.

To study about an organization_ its working structure, human recourses, etc thus holds a

great significance as it helps one to clearly understand how complicated an organization

work so as to have a optimum use of the resources available.

Solve Plastic Products, the Flagship company of Balco Group started production in 1991

with assistance of Kerala Financial Corporation, Thiruvananthapuram and the State Bank

of Travancore. The Balco brand of electric conduits was launched and meticulous care

was taken to maintain the highest standards of quality. Balco conduits received ISI

registration soon after and the product was soon a market leader. With the enthusiasm of

the team the unit had the privilege to become the first unit in Kerala to get ISI for Electric

Conduits. More specifically its success has been aroused from its commitments towards

quality and consistency in business relations. These factors geared it up later to get the

approval of BIS with in a short span of time.

5

Under the same management another unit Solve Plastic Products Pvt Ltd was

incorporated in the year 1994 with an objective of tapping the abundant opportunities

prevailing in the PVC Water Pipe Sector. Cashing in on the need for high quality Pipes

for potable water Balco created a segment of its own based on its unmatched quality and

strength. With virgin raw materials and uncompromising quality standards the PVC water

Pipes and the unit has triggered predictable growth. The first commercial production had

started in the Financial Year 1995-96 with an average production capacity of 55 Tonnes

in a month. Fitted with an Extruder 52/18V made by Kolsite, Daman in association with

Kabra Extrusion Technik, Germany, this unit is capable of making Electric Conduit as

well as PVC Water Pipes having both ISI and Non ISI standards. The Company could get

ISO 9001/2000 certification from JAS-ANZ through Pheonix Progressive Certification

India Limited.

My one-month long Organization study in solve plastics products Pvt. LTD

(BALCO)gave me hand full of valuable experience, which really will help me in my

future ventures. I had clear study on the various departments namely: Quality

departments ,Production and purchase, Finance and Administration, and the marketing

department carry out their work and go in support to each other departments.

The major purpose of conduction of this study is to understand the functioning of the

organization and to focus on the performance aspect, both in the national & international

markets. This study is helps to gain practical

Knowledge about management & theoretical knowledge.

Objectives of the study

6

a. To have a general awareness of the functioning and management of the

organization.

b. To understand the functioning of the company in terms of the department

created for carryout their daily transactions.

c. To analyze strength, weakness, opportunities & threats concerning the

company.

d. To know about the pipes industry & its future.

e. To learn about the history of the company & how it made its debut into the

pipe business.

Scope of the study

The organization study encompasses the entire functioning of the

organization which includes the nature of business it is involved in the , current

competition scenario the departmental segregation

Created for the implementation of plans & procedures , the current branches that is

controls &future expansion plans which includes both the national & international levels.

Moreover the needs to conduct an organization study lies in the

fact that it provides an in – depth understanding of what company is all about & the

underlying factor of its existence.

7

METHODOLOGY

Both primary and secondary data are used in the study . The

study mainly based on the collection of primary data and secondary data through direct

interview with managers & all other employees.

Primary data

Primary data collected through direct observations of various functions in the

organization & through interactions with various departments heads & other employees

of the organization.

Secondary data

Secondary data were collected from official documents like their annual

reports, financial records , various other organization manuals, company profile etc &

from website .

8

LIMITATIONS OF STUDY

1, The study mainly depends on the secondary data.

2, Since there were time constraints, intricate details weren’t included.

3, Limited information in terms of undisclosed financial data due to lack of certification

by auditors , hence up to date information was not available.

9

CHAPTER-2

INDUSTRY PROFILE

10

INDUSTRY PROFILE

WORLD SCENARIO

The pipe industry in India had its history dating back to late 1960’s. In Kerala PVC pipe

industry marked its presence from 70’s. At that time, it was really a tough job to market

the concept this new product. The industry also faced the shortage of raw materials as

there were only few companies like chemplast, PRC were manufacturing PVC resin

which is a important ingredient in pipe manufacturing.

Above all scarcity of pipe fitting in the market had created a great concern. so while

selling pipes it was liability of the company to provide market with the proportionate

volumes of PVC fitting.

In spite of all these challenges, PV pipes has established its own position in the market

due to its Durability, Affordable price, Ease in handling and hygienic nature. Over the

period, many other varieties of pipes like Polypropylene , Polyethylene, ACC, steel and

FRP were introduced in the market, but they were not good enough to replace PVC pipes

The number of plastic manufactures has declained in recent years, as a result

Of the spiraling number of mergers and acquisition. Acceleration consolidation amongst

plastic manufacturing is generally greater bargaining

11

Power of parties The replacement of traditional material is continued product developed

in the market forward. Assessing what will happen

Is 2009 considering that the U.S economy it believes that the most critical

Power of international crisis is over that the U.S economy is already

Showing signs of recovery, present P.V.C consumer indication of

Recovery in the 1st quarter of 2009. U.S P.V.C economy should show

Positive result in the second half of the year. Brazil is doing the situation

Of Argentina is also working.

Western Europe became the driving force behind the implementation of plastics in pipe

systems in pipe systems after the second world war. The availability of low cost ‘

Thermoplastics ‘ combained with an enoromous need for infrastructure replacement , led

to huge increase in the use of polymers.

Operating pipe market sectors currently are Hot & cold water pipes, Pressure pipes, &

non- pressure pipes.

Plastic pipes have a great future in a variety of sectors including.

Plumbing Irrigation Portable drinking water Mining Oil & gas production Natural gas distribution Industrial chemicals

INDIAN SCNEARIO

12

Poly vinyl chloride is the most important of all the commodity plastic

consumed in the country. Used in a variety of application substituting traditional

materials such as steel, glass, etc. The demand for

P.V.C was around 43600 tones in 2001- 2003 and is expected to rise to 445000 tones

in the following year.

Following the international market and varying level of production in P.V.C and

polymer prices in India had up to 7% to % 15 in six months up to the end of

September 2005. There were further changes in October

While this may be in keeping with the rising global oil and polymer prices, plastic

process came up with duty on imports. Petrochemicals are hydrocarbons derivatives

and are usually obtained from crude oil and natural gas. The product of crude oil

refining is preferred feedstock because of their lower cost availability and process

ability.

PVC is the single largest polymer produced in the domestic market accounting for

lower 26% of the total polymer market. The business has been badly affected mainly

due to absence of the government purchase policy due to change the priority on the

lack of adequate funds. A change in the government in some important states has

been responsible for the change priority. The higher incidence of government taxes

in some states like Maharashtra from the end of 1998 untill the end of 2000 has also

exerted additional resistance in the market price.

The excess capacity of about 1000 players in the PVC sector and very low value

also caused problem of qualities and business of non-standard products. Some of the

states have therefore initialized an action of demanding purchase from only those

players who have acquired ISO 9000 CERTIFICATION . On the other hand, plastic

market for several small sized players spread all over the country having almost

40% share of business are aggressively pushing products purely based on cost

13

without adherence only about 10 players with in the sales volume beyond 5-10kt of

pipes. The major players are.

o FINOLEXo JAIN GROUPo KISSAN GROUPo MOWILEXo NANDI PLASTICo ORISSA PLASTICo SUDHAKARo SUPREME INDUSTRIES

The major players possibly have almost 55% - 60% share of business. Increasingly 5

of these having almost 35% -40% share of business are located in western

region .The PVC sector has almost 40% share of the total PVC business . The

growth of PVC resin therefore is strongly linked to the growth of PVC pipes .The

major driver of PVC resign therefore is directly governed by the capability of the

government by to spend infrastructure development.

STATE SCENARIO

There are many PVC pipe producers in Kerala. Today the PVC

pipe industry holds a key role among the small scale industries. About twenty P.V.C

pipes manufacturing companies are functioning in Kerala . So there is stiff

competition in the realm of PVC manufacturing , some well known branches are

available in the market are BALCO , HYCOUNT , SAKTHIMAN,

KELACHADRA, SUPREME ,PEARLBLACK, GOODWILL etc. There are two

14

types of PVC pipes –water pipes and electrical conduits. PVC pipes are more durable

than cast iron pipes

RBI had reduced the interest rate of housing loans through

HDFC . So the construction field will increase so that there will be a huge demand of

PVC pipes. The state Government with Japanese technology for drinking water and

development of wells in rural areas (Japanese project) will increase the demand of

PVC pipes.

The problem faced today is that most of the tenders of Kerala Government were

received by the producers of outside Kerala .Because of the price of the product

outside Kerala is less than that of state.

PVC pipes are more durable than cast iron pipes and asbestos pipes that is the reason

why the PVC pipes are commonly used. In kerala most of the water supply units are

supplying water through PVC pipes. The water authority is also converting asbestos

pipes into PVC pipes in step by step. The price of PVC pipes was increased to

average of seven percentages recently.

The replacement of asbestos of pipes into PVC pipes by the water authority is good

for growth of PVC pipes market in Kerala. So PVC pipes industries have a bright

future.

15

COMPANY PROFILE

SOLVE PLASTICS PRIVATE LIMITED, PUNALUR was a sole proprietary

concern started in 1989. Then it was registered as a small scale industry in the year

1995. The company produces high quality water pipes and electric conduits with

ISI. The company is situated in Punalur. Solve plastic products marketed under the

brand name Balco pipes.They are the leading manufactures of PVC pipes and

electric conduits in Kerala and owning the best market network in Kerala, Tamilnadu

, Karnataka.

The process control and R&D department have the expertise and most modern

sophisticated technology for the process inspection and testing of Balco PVC electric

conduits and water pipes. The entire range of products are manufactured under the

strict supervision of independent quality control department .The company ensures

total control of quality with continuous up-gradation in quality management systems

which resulted in the accreditation of ISO 9001 : 2000 certificate . The company has

an investment of Rs 50 lakhs in plant & machinery. Above 250 employees are

working in the organization by 3 shifts. Balco PVC pipes with ISI mark vary in sizes

of 20mm to 110 mm with pressure class

2.5kg/cm,4kg/cm,6kg/cm,8kg/cm,10kg/cm,12.5/cm.

Field of application of PVC pipes are portable water supplies, drainage, agriculture,

telecom, and electrical cable ducting . Balco pipes are recommended for all places

where safety and protection of people and building are considered to be

important .viz. houses, stations , oil refineries , factories , industries complexes,

commercial complexes ,power stations, trains ship, street tunnels, railway stations ,

16

airport museum, telephone exchanges, conference halls ,hospitals, schools, military

installation ,defence shelters etc.

Products of the company

PVC electric conduits

PVC water pipes

Solvent cement

PVC bends

Market share of the company

Currently the market share of electrical conduits is 70% and the

market share of water pipe is 35%, solvent cement , and PVC bends are booming.

Solvent cement and PVC bends are new products of the company.

Competitors of the company

Hycount

V-guard

Kelachandra

Finolex

Sakthiman

Thomson

Plumbers choice

Pearl black

Star

Supreme

17

Future of the company

The company is planning to increase the production capacity by

purchasing of new and high capacity machines to meet their demands. The company

is planning to start production unit for solvent mixing and filling and also they are

planning to produce PVC pipes.The company will provide good transportation

facilities to get available of their market demand.

Quality policy of the company

Solve plastics products pvt ltd committed to produce and supply PVC electric conduits,

unplasticized PVC pipes in conformity with the customer satisfaction by continuously

producing, and supplying products in conformity with customer needs . we are committed

to confirm to the requirement and continually improve the quality management system.

Balco conduits have been approved by Kerala PWD,CPWD, RAILWAY, BSNL

etc.

Balco PVC pipes met all the requirements as per IS 4985: 2000

PVC conduits have hot stamping on every metre length to avoid duplication

Balco electric conduits are its durability, lightweight, monotonic , non corrosive.

Electric conduits are the first of its kind having ISI and ISO certification in

Kerala.

18

Objective of the company

To maintain an effective quality management system with active involvement of

all employees.

To ensure timely delivery of products in required quantity.

To solve for continual involvement of quality

To grow as a socially responsible organization.

19

ORGANISATION CHART

20

chairman

Managing director

Director

General manger

Purchase and

production department

Plant in charge

Human resource

department

Human resource manager

supervisor

Finance department

Finance manager

Senior accountant

Clerk

Marketing department

Marketing manager

Assistant marketing manager

Quality control

department

Manager of quality control

department

Lab assistant

clerk

Production in charge

Supervisor

Clerk

Marketing executives

21

Duties and responsibilities of chairman of the company

Over all guidance of the company

Decide on policy matters

Presides over the board of directors meeting.

Duties and responsibilties of managing director

Formulate quality policy and objectives

Presides over the management review meeting

Assigns duties and responsibilities of supervisory staff.

Appoints management representatives.

Duties and responsibility of director

Assisting managing director in day to day affairs of the company

Overall supervision of purchase and marketing activities

Duties and responsibility of general manager

Overall day to day management of the company

Identifies the training needs of staffs

Overall in charge of marketing department

Assisting managing director and director in formulating objectives.

22

Departments / functional areas

The organization is made up of various departments. Departmentalization is the grouping

together of similar or logically related activities. There are several bases of

departmentalization. This departmentalization is usually shown on an organizational

chart. Different forms of departmentalization are departmentalization by functions, by

products, by region, customers, process, or a combination of any of them.

Departments of the company

Production and quality control department

Human resource department

Marketing department

Purchase department

Finance and administration

23

PRODUCT PROFILE

Solve plastic products limited produces two types of PVC pipes under the name of BALCO.

PRODUCT AND ITS FEATURES

1. BALCO PVC Water pipes

BALCO PVC pipes with ISI mark vary in sizes of 20 mm to 110mm with

pressure class 2.5 kg/ cm, 4 kg/cm, 6kg/cm, 8kg/cm,10 kg/cm,12.5 kg/cm and for

plumping pipes of 20mm to 50 mm.

Two types water pipes

1, Threaded water pipes (15mm – 40 mm)

2, Pasting water pipes (20 mm – 110 mm)

24

Advantages of BALCO PVC Pipes

a. BALCO PVC water pipes are met with the requirements as per IS. 4985:

2000

b. Manufactured from virgin row materials

c. Offer entire range of plain and socket end class 1,2,3,4,5,6 and plumbing

pipes

d. No bacterial growth inside the pipe due to presence of light.

e. BALCO PVC pipes have been proved to maintain the natural purity of the

lead content of these pipes is much less than the limit prescribed by the

Bureau of Indian Standards.

f. Resistance to corrosion.

g. High impact strength at normal temperature and at low temperature.

h. High thermal stability.

i. High strength to weight and ratio

j. Excellent Tensile strength.

FIELD OF APPLICATION

Portable water suppliers , drainage , agriculture , and Telecom cable ducting etc.

2, BALCO PVC ELECTRIC CONDUITS

BALCO PVC conduits, the first of its kind having both ISI and ISO

certification in Kerala, have been approved by Kerala PWD, CPWD Railway,

BSNL etc.

a. Highly durable, light weight, monotonic and non – corrosive.

25

b. Easy installation and the long lasting nature of PVC conduits avoid

periodical maintenance

c. Can bend at any angle thus to avid the expense for the fittings like

bends elbows etc.

d. Manufactured from high impact resistant PVC which is specially

formulated to meet superior standards.

e. Hot stamping on every meter length so as to avoid duplication

f. Electric conduit produced in three sizes ‘ Light , Medium, Heavy ‘.

SIZE LIGHT MEDIUM HEAVY16 MM X20 MM 25 MM 32 MM 40 MM 50 MM 63 MM X X

FIELD OF APPLICATION

BALCO conduits are recommended for use in all places where satisfy and

protection of people and building are considered to be important viz. hospitals,

factories, airports, schools, hotels, house holds etc.

3, BALCO SOLVENT CEMENTS and BENDS

BALCO SOLVENT CEMENT is the most effective solution for

joining of PVC pipes , electric conduits and fittings . It is fast and easy to use

26

and ensures water tight joints. BALCO solvent cement offers the minimum

hydrostatic bursting strength of 2.8 mpa after hrs curing time. BALCO solvent

cement is packed in specially designed and eco- friendly tin containers of 100

ml and 250 ml sizes.

Bend

Bends are another product of solve plastics Pvt Ltd.

These bends are manufactured as to a sub product of the electric conduits.

Which can be used to join these electric conduits manufactured from the firm

there only few employs in this section. They manufacture about 1300 bends per

day. There is a huge market of these products as there are only a few

competitors in this field

27

CHAPTER 3DEPARTMENT STUDY

28

DEPARTMENT STUDY

D epartments and their functions

The company is having a well – defined organization structure.

There are five departments in the company. There is a high degree of

departmentalization in solve plastic products pvt ltd. The departmentalization

helps in the specialization of work in each field. It helps in better planning and

control. Each department consist of different employees who carry out their

specific works. There is no cross function and thus and the communication

flow happens according to this specific structure.

Departments

o Purchase departments & Production department

o Quality control department

o Marketing department

o Human resource department

o Finance and administration

29

PURCHASE AND PRODUCTION DEPARTMENT

30

31

CHAIRMAN

MANAGING DIRECTOR

DIRECTOR

PLANT INCHARGE

PURCHASE MANAGER

GENERAL MANAGER

OPERATORELECTRICIAN

SUPERVISOR

FUNCTIONS OF PURCHASE DEPARTMET

Suppliers order

Received

ProductionDepartment Stores department

PURCHASE DEPARTMENT

Purchasing is a managerial activity which goes beyond the simple act of buying and

includes the planning and policy activites covering a wide range of related and

complimentory activities . This includes research and development strategies required

for the proper selection of sources from which those materials may be bought , the

follow up to ensure proper delivery the development of proper procedures ,methods and

firms to enable the purchase department to carry out the established policies etc.

32

PURCHASE DEPARTMENT

GOODS RCEIVING DEPARTMENT

The purchase department of Solve Plastic Products pvt ltd, acts according to the needs of

the production department and in consultation with the accounts department for the

release of funds.

Objectives of the purchase department

1. To pay reasonably low prices for the best products obtainable.

2. To keep inventories low, ie, it should be maintained at a level consisted to that of

production requirements.

3. To develop satisfactory sources of supply and maintained good relation with

them.

4. To secure good vender performance including prompt deliveries and acceptable

quality.

5. To locate new material sources for smooth production.

6. To achieve high degree of co-operation and co-ordination with the other

departments in the organization.

7. To develop good procedures together with adequate controls systems to check on

the departments activities.

The purchase manager deals with the entire functioning of the purchase department.

In a Solve plastic products pvt ltd the functioning of this department is a

commendable one. Its activities are aligned with the requirements of the production

department . The main raw material used for production are Resin (95%) and chemicals

(5%) . The main suppliers of these materials are Finolex and Reliance.

33

The purchase department divided into three

RAW MATERIALS STORES

ENGINEERING STORE

FINISHED GOODS STORE.

Solve plastic products pvt ltd produce its materials with the selected supplers & finalize

upon a price after negotiation . This price is termed as basic purchase price on which

additions and deductions are made to arrive at the material cost.

Once the requisite material received storing, which is also an impotant function has to be

looked upon for this proper stores management is necessary. So as to handle the material

effectively and efficiently.

34

PRODUCTION DEPARTMENT

35

Structure of production department

This department is the backbone of the company and more number of employees work in

this department. The production manager heads the production department , he is

assisted by plant in charge , supervisor ,electrician, operator etc. A manager assisted by

the plant in charge , heads the department. The supervisors then assist the plant in charge.

Under him come the operators and the electricians . Operators are provided with the

helpers to carry out the work smoothly.

36

PRODUCTION MANAGER

PLANT IN CHARGE

SUPERVISOR

ELECTRICIAN OPERATOR

Objectives of production department

Production is an organized activity in a manufacturing organization. Each

organized activity must spell out its objectives so that its existence can be justified on the

basis of the degree of attainment of these objectives. Solve plastic products pvt ltd

production dept set certain important objectives as follows.

1. Maximum production with high quality and

quantity.

2. Ensure time delivery of products

3. To strive for continual improvement

4. Ensure proper implementation of manufacturing

process.

Production is carried out in three shifts. Five employees are required to operate a

machine. The operator and the helpers contribute the vital section, as they are the core.

The operator is required to have the knowledge in operating the sophisticated machine.

Fault can lead to great loss. They are also liable in noticing the quality of pipes

produced. The helpers and operators are answerable if any complaints rise in the

products.

37

PRODUCTION PROCESS

38

Mixing raw material

Hooper

HEATING DIER and SIZER

Molding diesel injection machine

Hall off

Finished goods

39

Cutting and printing

Raw materials used for production of PVC pipes

PVC RESIN

STABILIZERS

COLOURS

LUBRICANTS

FILLERS

CALCIUM CARBONATE

Raw materials used for solvent cement

PVC RESIN

CYCLOHEXANONE

TERA HYDRO FURAN

The main suppliers of the raw materials are Reliance chemplast, DCW, Finolex.

The production process of PVC pipes is called Extrusion the process is fully

automated. The first process of Extrusion is mixing of raw materials like PVC resin and

other ingredients are heated at 110 degree Celsius and mixed in the mixing unit.

Then the mixed compound is cooled to 40 degree Celsius , then it is sewed by the

sewing machine to avoid foreign particle. Sewed compound is send to Hooper and then

to barrel . Then the compound is moved through die and mantile to make the shape of

pipes of different size. Then the pipe is dipped in water tank cool and then it is vacuum

sizing to create pressure balance.

40

Caterpillar is used to increase or decrease the speed of the output. If we increase the

speed of the caterpillar production speed also increase . Cutter is used to cut the length of

pipe as 3 meter in case of conduits and 5 meter in case of water pipes. Stenciling, it is the

process of putting brand name and logo of pipes to avoid duplication . pipes are packed in

the bundles of 30pipes for 63 mm pipes and to100 for mm pipes.

Production capacity

The production capacity of the factory is 6 tone / day.

Records of production department

Log sheet

Processing parameter

Inprocess inspection

41

HUMAN RESOURCE DEPARTMENT

42

Structure of Human resource department

43

EMPLOYEE

SUPERVISOR

SECURITY

H.R MANAGER

CLERK

Human resource is regarded as the only dynamic factor of production , other

factor of production remains dormant without involvement of human factor. So this

department play significant role in human resource management. Administrative

management in the recruitment, selection development, utilization and accommodation of

human resource are handled by the organization.

Human factor is largely the most important factor in any

organization . It is very important that the persons employed in an organization may be

employed in an organization may be developed and utilized in an efficient manner.

FUNCTIONS OF HR DEPARTMENT

1) Human resource planning : The Board of Directors , MD, General

Manager and HR manager will decide the number of employees required their

qualification, post method of recruitment , remuneration etc.

2) Recruitment and placement : The HR department take action for filling

up vacancies that are normally arises in the organization. Recruitment is made

through news paper advertisement followed by scrutiny and interview. After the

scrutiny of application elgible candidates are selected for the interview. After

the interview selected

Candidates are placed as right man for the right job.

3) Training : Induction training will be given to the employees in order to

acquaint with new situation and employment .Training is given according to the

44

training need of each employee. This method is called Training Need Assessment

of employees .It is an evaluation of employees skills competencies, abilities

attitudes, morale etc.

4) Performance Appraisal : The HR department makes performance appraisal

of employees . It is the evaluation of employees skills and capabilities and actual

performance with standard performance with stated standards deviations if any

corrective measures are taken . Criteria for attributes for performance appraisal

are job knowledge, productivity, attendance , integrity, commitment.

5)

6) Health and safety measures : Management of the company has provided

necessary infrastructure to achieve the requirements of products in terms of

building work space associated utilities, process equipments and supporting

services. Employees state insurance and also accident compensation is provided

by the company.

7) Workers participation : Employees will give their suggestion regarding

work schedules , working hours and decisions relating to their job to the top

management.

8) Employee Grievance : HR Manager arrange weekly meeting with the

different employees representing different department. HR personnel are

responsible for the handling complaints, disputes with in the group and with top

management

9) Personnel Records and audits :

It includes maintenance of personnel records

Seniority list of employees

Wage and Salary administration

Attendance management and leave administration

45

Other related functions.

FINANCE DEPARTMENT

46

Finance department

Structure of finance department

47

SENIOR OFFICER

FINANCE MANAGER

CLERK

CASHIER

COMPUTER OPERATOR

COMPUTER OPERATOR

Finance is one of the foundations of business it is the life blood of the business. Finance

is used to start the business expand and day to day functioning of business. The finance

department is in charge of preparing statements and carry out analysis. This department

controls all the financial activities. It includes rising and allotting of funds for various

activities like paying of salary, Keeping the sales details, verifying it etc.

A manager who directly controls both the senior accountant and security

heads the department. Under the senior accountant come the receptionist , Computer

operator , clerk and the cashier.

At solve plastic products pvt ltd , there is an effient finance department. Its main activity

is to maintain the inflow and outflow of funds, there by maintaining proper financial

functioning . The finance manager, who is the head of finance department determines

and allocate funds for various departments and avoid wastage of funds.

Finance department is considered as the back borne of the organization . The company

has dynamic finance department which records all financial transactions in a systematic

manner and carries the company towards success. monthly evaluation is done . T he bill

of various departments such as production , marketing , administration, quality are

entered into register. Then the bill are send to the respective department for his approval

and the approval bills come to the accounts department for payment . Once the bill is

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received are proper in all respect then the bills are entered into the system . The other

cash payments made are to be approved by the proper authority.

Objectives of finance department

1. To provide a frame work for optimum financial decision making

which is concerned with designing a method of operating the

internal investment and financing of the firm.

2. To make dividend based decisions

3. To tap the right sources for raising the funds.

4. To develop a policies for achieving the target of the company.

5. To make appropriate decisions relating to the short term and long

term funds.

Key operations of financial department

1 Management of firms asset structure

a. Managers the liquid assets.

b. Determining the capital budget.

c. Establishing the credit policy

d. Controlling the level of investments.

2 Financial analysis, planning and control with

a. Assessing the financial performance

b. Forecasting the financial structure

c. Estimating the financial future

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3 Management of firms financial structure

a. Establishing debt – equity ratio

b. Determining the dividend policy

c. Negotiating and developing relations with suppliers of capital.

FUNCTIONS OF FINANCE DEPARTMENT

Determination of financial objectives

Designing the capital structure

Determining source of funds

Maintaining liquidity

Forecasting and estimating of short term and long term capital requirement.

Maintaining relations with Banks and financial institution.

Accounts departmentAccounting function is necessary input for the finance function ie, accounting is the sub

function of finance. Accounting generates information relating to the operations of the

firm. The end product of accounting consist of financial statements like balance sheet,

profit and loss account, fund flow and cash flow statements.

In Solve plastic products pvt ltd accounting department is a part of finance dept.

Finance manager Mrs. Bindhu who is the head of the accounts department record all

transactions which is further used for summarizing and analysis.

Objectives of accounts

Provide information for planning ,controlling and decision making.

To prepare suitable budget for increasing the profit of the firm.

To prepare proper records of all transactions of business

To help in ascertaining the financial position of business.

To support the long term and short term decisions made by the company.

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RESULTS

Proper cash mgt is done by the finance department of Balco. All decisions of the

organization are taken by consulting the finance department. Sources of raising funds are

determined by the finance department, Balco has sound financial position.

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MARKETING DEPARTMENT

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Structure of marketing department

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ASSISTNT MARKETING MANAGER

MARKETING MANAGER

MARKETING EXICUTIVE

DEALERS DEALERS

Marketing department is headed by the marketing manager, under him there are

assistant manager, marketing executives and dealers. Marketing occupies a very

significant place in business and is the nerve center of all human activities. Production of

goods has no meaning unless they are exchanged for money or money’s worth. Thus for

further production, goods should be moved from th producers to the ultimate consumers.

This movement of goods involves a series of hurdles which can be solved only through

marketing.

According to the American Marketing Association , “Marketing may be

defined as the performance of business activities that direct the flow of goods from

producer to consumer or user.

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MARKETING FUNCTIONS

MARKETING

FUNCTIONS

FUCTIONS OFEXCHANGE

FUNCTIONS OF PHYSICAL

SUPPLY

FACILITATINGFUNCTIONS

Buying and

assembling

sellingTransportation

Storage and

warehouse

Financing

Risk taking

Market informat

ion

Standardization

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O bjectives of marketing department

1. To create new customers and make the existing ones satified.

2. To build goodwill through image building activities.

3. To focus on four P’s of marketing ie, price ,place ,product , promotion.

4. To be the first to feel the pulse of the customer and produce goods which will

satisfy their requirements.

5. To maintain customer loyalty through after sales, service, promotional offers etc.

The head of the department, managers of the marketing activities

of the firm. He regularly keeps a check on the dealings of the various branches that he is

entitled to manage, based on the branch report. The marketing manager can take the

decision based on.

Sales forecasting

Sales proceeds follow up

Complaint handling

Promotion decisions

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Marketing research

The marketing department of the company is always in touch with

market trends, new demands of customers , methods to attract new customers, retain

the customers.

Targeting and positioning

Balco pipes are recommended or targeted for all places where safety and protection

of people and buildings are considered to be important viz, houses ,factories, oil

refineries, trains, ships, house holds ,airport ,railway stations, telephone exchanges

etc.

Distribution strategy

Water pipes and electric conduits are distributed to the dealers of electric shops and

plumping shops. To market the product, the company has marketing executives to

collect orders and supply the goods on demand . Company has two branches one at

Cochin other at Kozhicode. Branches are used to distribute pipes and conduits to

market products at northern, central and southern districts of kerala. Commission is

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given to dealers a quarterly and annually. Company has its own delivery vans to

supply their product dealers all over the state.

Segmenting

Balco pipes are positioned to a premium and high quality segment. So the price of the

pipes is comparatively high than the other brand . Quality oriented customers are the real

customers of the company.

Pricing strategy

Price policy of the company set as a premium. It is because of high quality products.

There fore, its price is considerably higher than competitor’s price.

Price structure of electric conduits ranging from Rs 9.08 to 98.39

Electric conduits size are the following

16mm, 20mm,25mm,32mm,40mm,63mm

Price structure of water pipes ranging Rs13.11 to 463.68 (20mm to 110mm)

Promotional activities

Since pipe is an industrial product it need not require high amount of

advertisement is not necessary. Companies advertising policy is to attract customers

to their retail shop , for that they will build hoardings of Balco pipes near to that shop.

Some times the company gives sponsor advertisement to some organization and

meeting. Company is giving commission to dealers and marketing executives who

achieve their target in time. Solve plastic products is marketing their products under

the brand name Balco pipes with a caption of 100% Reliability , this shows the

positioning of their products with consistency in quality.

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Result

Solve plastic product pvt ltd has its success in effective marketing through direct

sales, for that its utilizes the marketing executives effectively.

Solve plastic products have narrow distribution channel.

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QUALITY CONTROL DEPARTMENT

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Structure of quality control department

Q uality control department

To maintain an effective maintaining system with the active involvement of all

employees. With the active involvement of all employees with increasing sales by 5%

in a year and customer satisfaction level not less than 80% in the financial year 2009-

2010.

Director

General manager

Quality control department

Clerk

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Lab assistant

To ensure timely delivery of material in required quantity with maximum permissible

delay for 2 days. To strike for continual improvement of quality with rejection at final

stage will not be more than 55 and customer complaint will not be more than 2/ year.

Quality policy

Solve plastic products pvt ltd is committed to produce and supply PVC pipes in

conformity with customer requirements , we shall ensure customer satisfaction by

continually improve the quality management system. The quality control dept is the

key department in solve plastic products pvt ltd .The quality controller takes control

of quantity aspects of production. The functions of quality department are.

1. Check the incoming raw material.

2. Check the quantity of final products.

Quality department holds great significance in the company. The controller who holds a

related degree in this field heads the quality department. The lab assistant and the store

keeper assist the quality controller. This department keeps a close look in the production

process happening in the company. Pipes are selected and then tested for the prescribed

quality.

BALCO products confirm to the stipulated IS / WHO standards and

has the IS/ ISO 9001 2000 certification to its credit. These make us understand how

important the quality department is for this company. The pipe is tested every now and

then; they look for the weight, uniform surface, flexibility, length thickness, etc. If any of

the said property varies from the standard mentioned format, the pipe is disposed as

waste.

There is also a rule that in the process of production if the workers

doubt if the workers doubt the pipe is having some fault it should be immediately noticed

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to the quality check department, only after their inspection the pipes produced shall be

send for sale.

IS 9537 is the quality standard for Balco PVC electric conduits.

Quality checking Standards for electric conduits

1. Dimensions

2. Visual appearance

3. Bending at room temperature

4. Collapse test

5. Compression test

6. Resistance to heat

7. Electrical strength

8. Insulation resistance

9. Insulation resistance

10. Impact strength

11. Bending at low temperature

IS 4985 – 2000 is the quality standard for Balco PVC pipes

Quality checking standards for PVC water pipes

1. Dimensions

2. Visual appearance

3. opacity

4. Effect on water

5. Reversion

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6. Vicat softening temperature

7. Density

8. Sulphated ash content

9. Resistance to external blows at Celsius

10. Internal hydro static pressure test.

Functions of quality department

Inspection of raw material

BALCO’s image lies in its quality of the goods produced so,

the inspection take place from very beginning ie, from the stage of raw material take

place so as to ensure the quality of the materials have the inspection take place about

compounding mixing etc.

Inspection after weighing and mixing

Inspection after cooling, the inspection such as water pipe is free

from.

a. Scratches

b. Blows

c. Burns

d. Bends etc.

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SWOT ANALYSIS

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SWOT ANALYSIS

SWOT ANALYSIS is an important aid for the management when it comes making

critical decisions . Swot is an acronym for strength, weakness, opportunities shows

the positive aspects where as the weakness and threats represent negative aspects that

the company should be important in the future for the organization. Every successful

firms success lies how it implements the outcomes of SWOT analysis. A company

and its performance can be analyzed in many aspects . one of the best possible way is

the method of SWOT Analysis.

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Strength

Goodwill of the firm

BIS , ISI and other certifications

High brand value

Good quality management

Since products have received national and international quality

accreditations, the customers can always bank on durability.

Balco maintains a good relationship with their dealers there by helping

them cope with the competition , to a certan extent.

Balco provides fairly good after sales service to customers, there by

ensuring the loyalty towards the products.

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WEAKNESS

Lack of good human resource department

High attrition rate

Company following traditional method of production process.

The machineries are quite costly and the maintenance involves huge

amount.

Once the machine is break down it takes long time for next run, it will

affect the production.

When the non availability of raw material impede the production process .

Quality control requires a huge investment in time and manpower, this

involves a considerable dead time before the products are approved for

marketing.

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OPPURTUNITIES

The company has suffient capital to invest in expansion programme.

The investment boom in industrial and infrastructure section

After the usage of Automatic injection moulding machine used at

Solve plastic products pvt ltd enable the company to produce large

amount goods with good quality.

The investment boom in industrial and infrastructure section

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THREATS

Increasing the competition from other pipe manufactures.

Shortage of skilled workers

Increasing the price of raw materials

Shortage of skilled workers

Inflation

Hence a Swot analysis helps the organization in understanding its

position with regard to the internal and external environments. It helps

the firms to analyze its positive aspects there by helping to it capitalize

its strength and diminish the negative aspects. Which could retard the

possibilities of growth.

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FINDINGS AND SUGGESTION

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Findings

1. Pipe industry is booming

2. Largest electric conduit manufacturing unit in south India.

3. The department follows open door policy in setting grievances.

4. All departments work related to the finance department.

5. proper cash management is the function of finance department.

6. Since the company is ISO certified. The raw material used should have

the required quality.

7. Inventory control and warehousing are the major function of

production department.

8. Due to its success in the local market, its brand image will help it to

acquire the international market.

9. The company bears good relation with the employees , customers,

dealers and suppliers making them good entry to deal with.

10. Excess demand for the products.

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Suggestions

1. Give proper training to the employees based on new technologies.

2. Increasing the effiency of HR department

3. Solving the grievances of employees

4. Give proper incentives to the employees

5. Adopte new technologies for production

6. Automation could be introduced in printing, thus reducing the labour.

7. Reduce the shortage of raw material

8. Start a new plant for production

9. They should make proper speculations before entering into a totally new market.

10. Appoint new skilled staffs for the organization especially management

professionals for the growth of the enterprise.

11. The buying behavior of the customers should be studied ie, try to understand

what makes the customers buy a particular product.

12. For meeting the competition increasing the production capacity

13. Introduce labour welfare policies after consulting with the employees.

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CONCLUSION

The study undertaken at solve plastic pvt ltd punalur. For a period of one month was

of great experience for me. I was able to get an idea of the general functioning and the

performance of solve plastic pvt ltd punalur. I have got an idea of what actually, solve

plastic pvt ltd punalur. This study is focused on the various activities of an

organization and the company chosen for this purpose is Solve plastic products pvt ltd

From this organization study I was gained a lot of knowledge and information about

the entire organization functions. This organization study is very much helpful and

acts a guiding force for my future career.

.

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Bibliography

Book resources

Company profile Annual report

Web resources

WWW. Balcogroup.comWWW.google.com

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