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Project Report 2006

Dept. of BBM

S.E.S COLLEGE
SREEKANDAPURAM

PROJECT REPORT ON An overall study on the Kanhirode Weavers Co-operative Production And Sales Society Ltd. kannur

DECLARATION

This is to certify that the project report entitled An over all study about the Kanhirode Weavers Co-operative P & S Society Ltd., Kannur, submitted to Kannur University in partial fulfillment of the requirement for the award of the
Taliparamba Arts & Science College,Kanhirangad

Project Report 2006

Dept. of BBM

Degree of Bachelor of Business Management (BBM) is a record of original work done by me during my period of study in Taliparamba Arts & Science College, Kanhirangad, under the guidance of Mr. Ajai Abraham Thomas, MBA.

Place: KANHIRANGAD Date:

SANOOP . V Reg No: 78950

Taliparamba Arts & Science College,Kanhirangad

Project Report 2006

Dept. of BBM

ACKNOWLEDGEMENT

I am grateful to Mr. V.V. Kunhikrishnan, M.A, B.Ed, Ph.D, Principal Taliparamba Arts & Science College, Kanhirangad, for permitting me to take up this project work. I wish to express my sincere thanks to Mr. P.V. Kamalakshan, M Com, B.Ed, MBA, Head of the Department of Business Management for the help, cooperation and advice extended to me throughout the study. I wish to express to my sincere thanks to Mr. Ajai Abraham Thomas, MBA, and faculty guide for the continuous and valuable information rendered to me in completing my study with in the allotted time. I thank Mr. Bhaskaran, the secretary of Kanhirode Weavers co-operative P & S Society Ltd., for giving permission for conducting the project work in their esteemed organization. I express my deep sense of thank to Mr. Biju, Quality Handling officer and Mr. Gireesh Kumar, Production Manger, for their continuous help and motivation which help to me complete my study successfully. Last but not least I thank my bellowed loving friends and all those helped me in completing the study.

Taliparamba Arts & Science College,Kanhirangad

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CONTENTS
CHAPTER HEADING PAGE NO.

1 2

INTRODUCTION

AREA WISE ANALYSIS OF HANDLOOM IN 10 KERALA RESEARCH METHODOLOGY Objectives of the study Research methodology Limitations of the study 16

4 5 6 7 8 9 10 11 12 13

COMPANY PROFILE DEPARTMENTS IN THE SOCIETY PRODUCTION DEPARTMENT MARKETING DEPARTMENT PERSONNEL DEPARTMENT FINANCE DEPARTMENT PURCHASE DEPARTMENT QUALITY CONTROL DEPARTMENT FINDINGS AND SUGGESTIONS CONCLUSION

18 37 40 43 62 72 79 86 93 96

Taliparamba Arts & Science College,Kanhirangad

Project Report 2006

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CHAPTER I

INTRODUCTION

Taliparamba Arts & Science College,Kanhirangad

Project Report 2006

Dept. of BBM

INTRODUCTION
The handloom was devised about 2000 Years ago and was brought to England by the Romans. The process consisted of interlacing one set of threads of yarn (the warp) with another (the weft). The warp threads are stretched lengthwise in the weaving loom. The wefts, the cross-threads, are woven into the warp to make the cloth. Weaving remained unchanged for hundreds of years until John Kay devised the flying shuttle. This enabled a weaves to knock the shuttle across the loom and back again using one hand only. The speed of weaving was doubled, and a single weaver could make cloths of any width, whereas previously two men hand sat together at a loom to make broad cloth. By 1800 it was estimated that there were 250000 handlooms in Britain. Kerala, the greenish land lies between the western ghat and Arabian Sea, about 15000 square miles with varying scenic beauty. Kerala is known as the epitome of India. Historically Kerala has long been a land of racial mixture and co-existence. The milestone in Keralas history is that by first Christian church, First Muslim mosque and first synagogue were established in Kerala. A number of historically important Hindu Temples can be seen in Kerala. Tolaracne and cosmopolitan out look are the characteristics of a Keralite. This may be attributed to the religious and trade contract, which existed for centuries with out side India. Handicraft handloom weaving, ivory works, Weaving of coir are well known heritage of Kerala.Kerala handloom industry carries a vital role in states economy as well as in the field of employment.

Taliparamba Arts & Science College,Kanhirangad

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A very large number of looms are located in rural areas. The rhythm of handloom can be heard in almost every village in Kerala. There are men and women weavers for whom weaving is a way of life. In early days majority of handloom weavers followed the hereditary line. The main communities engaged in weaving are saliyas and devangas. With the available information it is clear that the saliyas and devangas migrated from the near by princely states. Earlier they were producing cloth for their own consumption and for the need of their village. Increase in production and improvement in transport facilities removed the hindrances of time and easy the exchange of commodities. The skill of weaving has been passed from parents to children. During 15th century, British, French and Portuguese people visited Kerala. The things like spices, ivory and beauty of handloom fabrics attracted them. They began to purchase large quantities and exported to their countries. Germany has established a mission called Basal mission in 1829. This mission paved the way of changing form home production to factory system. Apart from this, French people started to give training in weaving. The imported versatile loom and introduced principle designs from hooks. After the British captured India they took up and nourished handloom industries fro the purposes. At the end of 18th century the monopoly came to an end. Since 19th century with the advent of Industrial revolution, The English people gave up all. They started mechanical production in their land during this period of foreigners the weavers of Kerala learned al techniques and they paralleled the way for the production of furnishing fabrics according to the new style of demand. During the dawn of 20th century, the Sree Narayana movement influenced Kerala society by and large prompting the caste-based culture to change towards

Taliparamba Arts & Science College,Kanhirangad

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secular and modern industrious culture. So that many people from traditional Thiyya/Ezhava community had take up their employment in handloom industry to do away with the to day tapping to respond with the advice of Sree Narayana Guru. These changes also have its own mark in making the present shape of Kerala handloom industry. It has resulted in the production of various types for artistic handloom goods in Kerala. The women all over India for their fineness of count and natural colours, texture and gold borders praise the Kerala Kasavu Sarees. Kerala is also known for its unbleached cotton handloom crepe popularly known as Kora cloth this has entered in the foreign market and occupied a proud place in the garment industry. The secret of furnishing fabrics from Malabar is the excellent structure and texture of the cloth, unique colour combination, wide width (98 - 120 ) and craftsman ship. When we look back to the history of Kerala, it can be seen that in 1498 vascode Gama, the Portuguese navigator visited Calicut in Malabar. So it is well known that 15th century handloom cloths of excellent qualities were exported to Asian and European countries. Balaramapuram, in Thiruvananthapuram district is the most historically important place for handloom fabrics. The weavers belong to saliyas were migrated from Nagar Coil and Thirunalveli in Tamil Nadu during the time of Balarama Varma before 250 Years. Here they produced super fine Mundum Neriyathu, for the need of royal family. Still they are existence and carry important part of the total production. The technique of producing superfine fabrics spreaded from them to the local weavers in Balaramapuram and surrounding places. Initially they were producing Mundu for men with 0.4cm of width of Kara (cross border) with black yarn. Before 100 years the jeri from Surat takes to Balaramapuram and Kasavu Sarees production was started.

Taliparamba Arts & Science College,Kanhirangad

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Koothampalli in Thrissur district is also well known for handloom fabric. Here Devangas immigrated from Karnataka are engaged in weaving. The Kasavu Sarees, which are being produced here, is mostly with half fine jeri. The middle class people would like to purchase this sarees because of its cheapness. The price of a saree can be reduced from 5000 to 1000 by using half fine jeri instead of pure jeri. Chendamangalam, in the Eranakulam district is also an important handloom center in Kerala. Here they have been producing the double and Mudnu and Neriyathu. The distinction of these fabrics is in its structure in the plain structure, they have producing a special effect in weft direction.

Taliparamba Arts & Science College,Kanhirangad

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Dept. of BBM

CHAPTER II

AREA WISE ANALYSIS OF HANDLOOM IN KERALA

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AREA WISE ANALYSIS OF HANDLOOM IN KERALA


Kerala has 14 districts from Thiruvananthapruam to Kasargod. The handloom industry is spread allover the state. But the handloom industry is concentrated in certain places. The southern Kerala is famous for its superfine products, like sarees, dhothies and Set Mundu etc. The middle Kerala also engaged with such products. Btu while going to northern side called Malabar the main production changed to coarser verities like furnishing items, spreads, towels etc. The common production in Kerala is Thorthu (bathing towel) and Lungies. Almost two lakhs of weavers are earning their livelihood from handloom 75% of the mare in the co-operative line. Almost five lakhs families are depending upon handloom industry. A district wise analysis gives us a clear out idea about the places where handlooms are concentrated and the places, which are important for traditional verities. 1. THIRUVANANTHAPURAM: The capital city has its own historical importance. And in the map of handloom also it has an important place. There are 349 societies and 44700 weavers are working with their looms. The main products of district are fine cotton textures; during with special design Balaramapuram is very famous for its fine grey sarees with Kasavu (Jeri). The other products here are set mundu mundum neriyathum- (Traditional dress for a malayalee lady) Mundu (dhothi for men), Earezha thorthu (bathing towel) Melmundu etc. Other places where handloom concentrations are Parassala the south most of Kerala where weavers are involved in weaving of sarees, dhothis, etc. Cheravinkeezhu, Kulathur are the other places where handloom density places. Here also the productions are as explained above be range of counts is 60s 120s. The jeri used here is superfine one.
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2. KOLLAM: The very old city has few handloom production places. Her almost 80 cooperative societies with 10271 registered weavers with their looms. In this district almost all varieties produced in Kerala are produced in small scale. In olden days the Kollam was an important port in south India. So the effect of exporting items are effected the weaves in Kollam district Lungies, Furnishing items, Erazha Thorthu, Sarees, Dhothies are the main products. Terry towels, Jacquard durries we also produced. Kollam, Karunagappally, chathannur, are the main places related to handloom in the district. The products from these places are mainly for domestic market. Therefore colours, fashions etc of these products suit the domestic market. 3. PATHANAMTHITTA: There are seven co-operative societies and 165 registered looms are here. With these 281 weavers are earning their livelihood. In this district the main products are lungies and dhothies. 4. ALAPPUZHA: Alappuzha is very famous for its coir products. Coir weaving also done with the hands only. But its is considering as another wing. The main products in these centers are mainly dhoties, sarees, lungies, erazha thorthu, etc. There are 25 co-operative societies with looms and 2309 weavers in this district. 5. KOTTAYAM: In Kottayam district the main products are Earezha Thorthu, Panimundu, and Lungies. They are also producing bed sheets and sarees. There are 16 societies with looms and 1853 weaves are here. Kidangoor, Karingannoor, are main centers. 12

Taliparamba Arts & Science College,Kanhirangad

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6. IDUKKI: In this district there are 11 societies and 414 weavers with their looms. The main products are sarees, lungies etc. 7. ERANAKULAM: Chennamangalam Sarees is famous in Kerala. This fine grey sarees are the product of Eranakulam District. The main products are super fine double dhothies, synthetic and silk sarees, matching set etc. In Paravoor 120s fine double dhothies are produced. In east Eranakulam, earzha thorthu, and cheaper variety bed sheets are produced. There are 30 societies and 8494 weavers with their looms. 8. THRISSUR: The cultural capital of Kerala has an important role in the tradition of Kerala. Here a traditional variety named Koothampally Saree is produced. Koothampally is a place situated in Thrissur. The productions are set mundu, woven with half fine jeri., Dhothies, Lungies are also produced in this district. There are 30 societies in Thrissur and 6052 weavers. 9. PALAKKAD: In this district is handloom weaving is very popular Chittur, Pudunagaram, Kollengode, Peruvemba, Karimpuzha are some of the handloom concentrated place situated in the district. Here main products are sarees, dhothies, lungies etc. here silk sarees production also started recently. There are 45 societies and 11236 weavers depending on the handloom weavers with their looms.

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10. MALAPURAM: A number of Muslim weavers are here. The main places are Tiroor, etc. The main products are furnishing items, which influenced from Calicut and sarees, lungie. There are 13 societies and 2774 weavers. 11. KOZHIKODE: The district from Malapuram to Kasaragod known as Malabar. The

famous Malabar loom came from this place only. The other famous of this place is, in olden days famous calico cloth came from Calicut only. In olden days foreigners established some companies. Some of them remaining now also. Common wealth Trust which is situated in Calicut is one such company. The main products are mainly meant for export. Furnishing, Jacquard products, Bed sheet, Tablemats, coarser varieties etc. The products are mainly coming from Malabar loom. The products from Kozhikode have an excellent value in domestic market also. The main centers are Kozhikode, Qualandi, Vatakara, Chombal, and Maniyur etc. There are 41 societies (most of them are industrial societies) are in this district. 12. WYANAD: There is not that much important in this high range. There are only four societies in this district and 136 weavers. The products will be a part of Calicut and Kannur. 13. KANNUR: Kannur is called as the Manchester of Kerala. The famous Kannur sports shirting, varieties like crepe is the donation of this district. The weavers are mainly working industrial societies.

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For export of handloom products Kerala mainly depending upon the products from Kannur. The main products are shirting, made-ups, Jacquard, Furnishing, Turkish towels, Sateen sheets, Crepe such export oriented and Lungies, Earzha thorthu etc for domestic purpose. The products are coaser varieties Kannur Mundu are a popular variety. The main centers are Kannur, Azhikode, Chirakkal, Kanhirode, Irinav, Morazha, Mayyil, Panoor, Kuthuparambu, Kalyassery, and Pappinissery etc. There are 73 societies established in this district and with about 50 exporters in private sector together have, 13667 weavers working this field. 14. KASARAGOD: Kasaragod is the north most district in Kerala. Here sarees are produced and export varieties also produced here. Kasaragod, Mancheswaram are main centers. 11 societies are here and 3401 weavers working in there societies. Kasaragod sarees are very famous in Kerala. Now a days there is a very good demand for the silk sarees woven with different colours pattern and ornamented sarees.

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CHAPTER III

RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
OBJECTIVE OF THE STUDY: To know about the administration and management of KWCS. To know about the production processes carried out in the KWCS. To know about the personnel policies of the KWCS. To known about the marketing strategies of the KWCS. To know about the quality control measures used by KWCS. To known about the financial policy of the KWCS.

RESEARCH METHODOLOGY: Primary data is collected through personal interview with manager, secretary, and other staff of the society. Interactions with various departmental heads and supervisors. Secondary data is collected from companys annual reports and other published materials. LIMITATION OF THE STUDY: A detailed study could not be made due to time constraints. A comparative study with a similar concern was not made.

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CHAPTER IV

COMPANY PROFILE

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COMPANY PROFILE
The Kanhirode weavers co-operative P & S society is one of the main handloom manufacturing unit in Kerala. This society is registered as a cooperative society under the Act of VI of 1932 (Madras) on 16-9-1952 and started its function on 05-10-1952. At that item its paid up share capital was only 10,130 Rupees. It is also known as weaveco. The main object of the society is to provide regular employment to poor workers at a reasonable wages and there by improving the standard of living and economic conditions of the weavers. In the initial period, the company ahs only 200 members and they produced Thorth and Pudava. They sold these products in their locality by the weavers. Later bullock cart have used to carry these goods. The society is engaged for manufacturing various kinds of cotton fabrics. Which is suitable for export market as well as local market. The 1964-65s was the period, which gave the society a hope to shine in the textile world and they started to produce shirting, lower count lungies. Which were sold different parts of the country through agents. During 1973-74, the society started to producing crepe fabrics which attached orders of merchant exporters. Then again started production of furnishing fabrics suitable for export market and the products to merchant exporters. The Kanhirode weavers co-operative society is an ISO 9001-2000 certified company. It is the first ISO certified handloom co-operative society in the state. The society has very good market for its products.

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The societys address shall be Kanhirode village, Kanhirode post in the Taluk of Taliparamba, in the cannanore district. Its operation shall be confined to Kanhirode and Kuttiatoor Amsam in Taliparamba Taluk, Munderi and Anjarakandy Amsams in Kannur and Koodali in Tellichery Taluk. The company having workforce of 500 workers and 300 working looms with various width capacity from 48-90 inches. It includes five looms for silk. They are also having 30 stitching machines and two dehumidification rooms to keep the geniuses of fabrics. Majority of the society employees are females. There by ensuring the economic freedom of the major households in around the locality. The company mainly producing different items like lungies, shirting, saten and printed bed sheet, bed spread, Dhothies, Towels, Thorth etc. for local market and furnishing fabrics, jacquard items, shritings, crepe, bed sheet, table cover, Napkin, Cushion covers etc for export markets. For the last 8 years the company engaged in direct exporting. The earn 75% of profit from international markets. They produced goods on the basis for customers requirement. For the diversification of products, the company had established a silk weaving centre, and a jute development center, quality dyeing unit etc. the society had availed financial assistance from central and state government for the following purposes. 1. Working capital for handloom development centre. 2. Silk weaving unit. 3. Quality draining unit. 4. Project package scheme. 5. Jute development centre.

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The important requirements for any business activities are land, labour, capital and organization. This company ahs permanent building and adequate workforce, storage places and other working environment requirements as per the factory act of Land. The company also has adequate equipments for manufacturing as well as other documentation requirements like computer and other accessories. Al these facilities are very helpful in the success of this society. The society has a better working environment. The workers enjoy the best working atmosphere. Like space, machinery, wages etc. fabrics and made-ups manufacturing is not hazardous to the personnel involved in it. How ever the company strictly supported to all mandatory requirements of safety like fire extinguishers, first aid facilities. LOCATION OF KWCS. Kannur, city of Looms and lores lies in northern part of Kerala. The kanhirode weavers co-operative P & S society Ltd. is located at Kudukkimotta. This place is 15KM away from Kannur and it is near to the Mattannur. VARIOUS FECILITIES AVAILABLE IN THE KWCS. Cabinet dyeing machine with capacity of 250 Kg. Dyeing chamber with capacity of 500 Kg. 300 working looms with up to 90 inches. 10 numbers silk weaving loom width up to 90 inches. Dehumidification rooms for moisture control of fabrics. In house stitching unit with 30 numbers juki machines.

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VISION OF KWCS A complete range of handloom fabrics inheriting age-old tradition of classic warp weft combinations importing modern chrematistics of convenience without compromising up on the core values of quality. The fabric range has been created through adequate research and expertise that will enable Indian textile to acquire a competitive edge in global market. AWARDS GOT BY KWCS: 1. 2. The first ISO 9001-2000 certified primary handloom co-operative society in the state. The contribution of the society in the field of craftsmanship was well appreciated 3. and awarded with GOLD MEDAL for the BEST PERFORMACNE by the ministry of textiles, Govt. of India during 1993-94. The Govt. of India had selected this society for participation in international Trade Fair at Frankfurt, Germany during 1995 and 2004.

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MEMBERSHIP
The liability of the members of the society shall be limited to the share capital subscribed by them. The capital of the society shall for the present be Rs 4000000/- made up of 40000 shares of Rs 100/- each. The value of each share shall be paid either in one lumsum on allotment, or installment, when paid in installment Rs 25/- shall be paid at the time of taking share and the balance in five months commencing from the months subsequent to that in which share was taken. In the case of weaver members, installment maybe collected, as stipulated in bylaw 16 CA. The monthly installments shall be paid on before 15th day of the months to which it relates. Application for admission as members and for allotment of shares shall be made to the secretary in the form, if any, prescribed by the society for the purpose. The Board of Directors who shall be disposed of by the Board of Directors who shall have power to grant admission or to refuse it without assigning reasons shall dispose of every such application. Every member shall take at least one share, but no member shall take more than 50 shares. But this application is not applicable for the share participation by the Government of Kerala. In very member except govt. of Kerala shall pay on entrance fee or Rs 5/- for each share taken by him, at the time of taking the share, provided that the total payment of entrance fee by any member of all the shares held by him shall not exceed Rs. 5/-. No member shall be permitted to withdraw any of the shares held by him in the society with in three years after the date when he took such shares. But a member may with draw shares with the consent of the board of directors after such period, provided, firstly that he has given at least six months notice of

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withdrawal, secondly that the total amount of share capital that is permitted to be withdrawn in any one year does not exceed 10 percentage of the aggregate paid up share capital of the society, as it was on June 30th proceeding, thirdly that there are no debits due to the society and fourthly, that there are no debts due to the society in regard to which he has stood surety. When a member withdraws shares under this bylaw, he shall be paid back the share capital actually paid by him with the dividend declared if any. The Govt. of Kerala shall have the right to withdraw the share participation in the society at any time with out assigning any reason thereof. A past member shall be liable as provided in bylaw 3 for the debts due by the society, as they existed on the date when he ceased to be member, for a period of two years from such date. The estate of a deceased member shall be liable as provided in the bylaw 3 for the debts due by the society, as they existed on the date of his decease for a period of two yeas after his decease. No member shall be permitted to transfer his share or shares or create a charge in respect of the same in favour of another member or person except with the previous sanction of the Board of Directors.

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MANAGEMENT OF THE SOCIETY


Subject to such resolutions as the general body may from time to time pass the Executive Management of the affairs of the society shall vest in a Board of Directors. The Board of Directors shall consists of not more than a members of whom 7 members shall be elected as stipulated in bylaw No. 20 and the two members shall be nominated by the District industries officer from his staff and their term of office shall be subject to the direction of the District Industries Officer. The members of the board of directors shall be elected as per the rule 35 of Kerala co-operative rules for a period of five years from among the members for the period of the members of the Board the year shall begins from the date of assumption of the office. A retiring member of the Board shall be eligible for reelection. After the member of the Board of Director are elected they shall elected from among themselves a president and a vice-president. All the members of the Board of Directors shall vacate their offices on completion on their term of five years unless the period is extended by the Registrar under sub-rule (2) of Rule 39 of the Kerala Co-operative Rules. All the members of the board of directors shall be elected at one and the same time for the specified period of five years. Any interim vacancy or vacancies, which has not been filled, may be filled up by the election as per rule 35 of Kerala cooperative rules for the unexpired portion of the original period. The proceedings of the board of directors shall not be invalidated on account of any vacancy or vacancies of the board that remain unfilled. Any member of the board of directors may at any time resign from his office by sending a letter of resignation to the secretary of the society but such resignation shall take effect only from the date of the society but resignation such

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shall take effect only from the date on which it is accepted by the board of directors. The board shall appoint a full time paid secretary from among suitable qualified persons approved by the general manager. District industries officer, Kannur. The secretary shall not have a seat in the board. The board of directors shall meet once a fortnight or oftener, if necessary to conduct the affairs of the society. The president or in his absent. Vicepresident shall preside over the meeting of the board. In the absence of the both a chairman shall be elected from among the members present. The quorum for the directors meeting is four. All the questions before the board of directors shall be decided by a majority of votes. Should there be an equality of votes the president or other presiding members shall have a casting vote. No member of the board of directors shall be present at any meeting of the board of directors shall be present at a meeting of the board when any matter in which he is personally interested 15 being discussed. In case of urgency where there may not be sufficient time to convene a meeting of the Board of Directors and in all case in which such a procedure may from time the secretary may obtain the orders of the Board of Directors by circulation of papers among members present at the headquarters of the society such division arrived at by circulation shall be placed before the next meting of the board of directors for their rectification. It should a difference of opinion arise in the course of such circulation the member shall not be decided by the circulation but shall be placed before a meeting of the Board of Directors. Any member of the Board of Directors who commits default in respect of a loan taken by him from the society shall ipso facto be considered disqualified to continue as an office bearer. But if the default has been for a period of 3 months or less, the defaulter may reinstated by the General body on his showing good cause for the default. In no circumstances a defaulter continue to hold office as a member of the board of directors if his default has continued for more than three months.

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Receipt shall be issued for all moneys paid to the society. For moneys paid by members the receipts shall be signed by the president or the secretary, or the manager who ever is selected by the board of directors to discharge his function. In the case of borrowing from non-members or from other society the receipt of the bond shall be executed by at least four members of the board of directors of whom the president shall be one. The board of Directors shall have power to prescribe from time to time the scale of office establishment and to inure such expenditure as may be necessary for the management of the society with reference to the scale and with in budget allotment sanctioned by the general body for each year which will be subjected to the approval of the Dy. Registrar. It shall be competent to the secretary to insure the peti contingent expenditure subject to a maximum of Re. 1/- for any time. The board of directors shall be competent to fix the amount and nature of the security if any, to be given by the office establishment, as prescribed by the Registrar. The services of the members of the Board of Directors shall be gratuitous except as provided under bylaw 50. They shall be eligible for sitting fee for attending the board, sub-committee meeting and the president shall be eligible for a daily allowance for attending the office. The board of directors shall also eligible for Traveling allowance for the journey performed in connection with the affairs of the society. The rate of sitting fees, daily allowances and Traveling allowances should be fixed by the committee and approved by the registrar.

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BOARD OF DIRECTORS OF KWCS

1. 2. 3. 4. 5. 6. 7. 8.

Sri. Kala Balan Sri. K. K. Narayanan Sri. K. Rameshan Sri. M. Pavithran Sri. V. M. Rajan Sri. P.P. Kumaran Sri. P. P. Kumaran Smt. P. Sumithra

: : : : : : : :

President Vice-President Director Director Director Director Director Director

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COMPANY ADDRESS

Name of the Company: Registered Office:

The Kanhirode Weavers co-operative P & S Society Ltd., No. L.L.44 Kanhirode (P.O), Koodali (Via) Kannur Dist., Kerala 670592 India 0497-2857259 0497-2857865 0497-2858546 weavecoknr@sancharnet.In weaveco@rediffmail.com weavecoknr@hotmail.com www.weaveco.com Kannur Dist. Co-operative Bank. SBI SBT Dept. Co-operative society, Asst. Registrar office, Kannur.

Telephone: Fax: E-Mail:

Website: Bankers:

Auditors:

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PRODUCT PROFILE
The Kanhirode Weavers co-operative P&S society Ltd. produced different types of handloom products for local market and international market. They are as follows. For Local Market: Lungies Shirtings Satin and printed bed sheet Dhothies Towels Thorth Saree

International Market: Furnishing Fabrics Jacquard items. Shirtings. Crepe Bed sheet Bed spreads Table cloth Napkins Cushion covers Curtains Sofa cases Sofa covers Floor mats

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Bolster

ACTIVITY CHART OF KWCS


Buyers order Yarn Purchasing Boiling

Inspection

Vertical warping

Bobbin winding

Dyeing

Beaming

Drawing & Denting

Pirn winding

Sewing

Cutting

Weaving

Inspection

Button holing & buttoning

Pressing

Finishing & Packing

Inspection

Billing

Stock entry

Pricing

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ORGANISATION STRUCTURE

Board of Directors

President

Secretary /CE

Management Representative

Manager Export & Administration

Weaving Master

Dyeing Master

Business Manager

Production Manager

Q.A Supervisor

Quality controller

Store Keeper finishing works Accounts Assistant Taliparamba Arts & Science College,Kanhirangad

Accountant

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AUTHORITY AND RESPONSIBILITY


1. President: He is responsible to: To take policy divisions of the company. To make investment division, long term financial commitments and diversification plan of the company in consultation with board of directors. 2. Chief Executive/Secretary: He is responsible to: Define and document the companys quality policy and objectives. Provide adequate resources for implementing QM. Discharge the duties of purchase manager. Over all operations of the company. Allocation of various resources to the different departments. Assessing the training needs of the HODs and initiates training programs. New customer development. Attend the fair ad develop new markets and new customers. Procure orders for the company. Handling customers complaint. Define companys long-term business plans.

3. Management Representative: Establish, implement, maintain and monitor quality system. Control the distribution of QM, SOP, WI and TAD. Plan and arrange internal quality audit. Co-ordinate the activities concerned with the external agencies.

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Responsible to reporting to the top mgt on the performance quality management.

4. Manager-Raw material purchase: Establish and document specification for raw materials and accessories. Assess the availability of raw materials and accessories as per the requirements. Purchase the raw material through purchase orders. Development the new raw-material suppliers. Acts as a factory manager. Maintain inspection status of raw materials and accessories in the store. Production, planning and control activities. Responsibility for issues of materials, stock updating, and material reconciliation for yam, dyes and chemicals. 5. Weaving Master: Plan and execute the production activities at the weaving production units. Allocation of work to various workmen. Ensure the product characteristics during production. Assess the training needs of the work force in weaving dept. Initiate the corrective action in the dyeing and weaving dept. Preserve the approved samples/customer samples with proper identification. Acts as custodian of grey and dyed yarns. Maintenance of weaving machines.

6. Quality Assurance supervisor (QAS):

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Ensure inspection of yarn, dyes and chemicals accessories, and fabrics, made up and garments at all stages. Maintain inspection status of raw materials in process and finished goods.

Arrange proper handling, storage and presentation of raw materials and accessories. Prepare suppliers evaluation record.

7. Production Manager: Develop new samples as per the requirements communicated by CE. Develop designs from the existing samples. Prepare costing details of samples. Ensure the all required accessories are available in the unit before madeups the production started. Initiate the corrective action and preventive action as necessary. Help the CE in the mater of matter of marketing activities. Responsible for verification of yarn, dyes and chemicals.

8. Dyeing Master: Production, planning and control in the dyeing dept. Maintenance of the dyeing machines. Prepare the recipe as per the shades required. Maintain the master shade card. Approve dyed yarn before issued to further processing. Safe keeping of dyes and chemicals in procurements.

9. Manager Export & Administration: Handle all export/import and banking formalities. 35

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Liaise with clearing agents regarding the shipments of merchandise. Communicate with customers. General administration of the company. Carry out stock verification activities.

10. Business Manager: agents. Assist the secretary to handle customers complaints. Assist secretary to procure orders. Assist the secretary to co-ordinate with buying houses and buying

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CHAPTER V

DEPARTMENTS IN THE SOCIETY

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DEPARTMENTS IN THE SOCIETY


The Kanhirode weavers co-operative society is one of the famous handloom products manufacturing society in Kerala. This society working under the co-operative societies act. The overall control of the society is the secretary of the society controls came under the board of directors and all day-to-day activities. This society has different departments for functioning different specialized activities. The main departments in this society are production department, Finance departments, Marketing departments, Personnel department, Quality control department and purchasing department. Weaving and dyeing are the main production process in the society. They produce different types of handloom products for local market and international markets. The foreign countries have heavy demand in handloom products so they mainly concentrated in export marketing. Production is the main activity in the society. The production department functioning very well in this society. They are designing and producing quality products as per the requirements of the parties for local market and international market. They utilise the equipments, labours and other facilities in the society in a maximum manner and to make uninterrupted production of goods. The finance department of in the society, prepare various financial statements like trading ale, P & L ale, Balance sheet etc. This society has its own finance department under a financial manager.

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The marketing department concerned with the marketing of the goods produced by the society. It is one of the important functions in an organization. The efficient marketing department helps to achieve the organizational objectives. It is very important in handloom manufacturing

Industries. The problem of marketing is greatly affecting the industries in India, especially in Kerala. Many cotton mills and cotton textile industries are closed due to the inefficient management of the marketing area. Personnel department is concerned with the obtaining and maintaining of a satisfied and satisfactory work force in an organization. It is an extension of general management. The primary objective of this department is to satisfying employees and achieving organizational objectives. This society provides various welfare measures to its employees for motivating them. The quality control department plays an important role in an organization. This society has an efficient quality control department headed by the quality assurance supervision (QAS). This department checking raw materials, work-inprogress and finished goods and to ensure the quality. It conducts various tests for ensuring quality. The main raw materials used in the production like yarns, dyes, and the purchasing department purchases chemical. This department purchase material on the basis of quantity of production. They mainly purchased materials from National Handloom Development Corporation (NHDC). It may be either on cash or on credit basis.

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CHAPTER VI

PRODUCTION DEPARTMENT

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PRODUCTION DEPARTMENT
Among all the functional areas at management, production is considered to be crucial in any industrial organization. Production is the process by which raw materials and other inputs are converted into finished goods. It means generation of goods or services to satisfy customers needs. The other word synonymously used with production is manufacturing. Manufacturing is understood to refers to the process of producing only tangible goods. Where as production include creation of both tangible goods as well as intangible service. Production management refers to the application of management principles to the production function in a factory. In other words production management involves application of planning, organizing, directing and controlling of to the production process. The application of management to the field of production has been the result of at least three developments. First is the development of factory system of production. Until the emergence of the concept of manufacturing, there was no such thing as management as we know it. It is true that people operated business of one type or another, but for the most part these people were owners of the business and did not regard themselves as managers as well. The second essentially stems form the first, viz, the development of the large-scale organization with many owners and the necessity to hire people to operate the business. The third reason stems from the work of many of the pioneers of scientific management who were able to demonstrate the value from a performance and profit point of view, of some of the techniques they were developing. The production department is normally under a production manager. He assists the production functions. The production manager is the co-ordination link between production department and the society.Production department must work in coordination with planning as that both of the production target and as estimated by the objectives are achieved.
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The production department maintenance the progress of different departments in the society. The production manager has to the responsibility to the co-ordinate the availability of raw-materials, machines, labours etc. and also fore cast any possible delays which could affect the production. The efficient working of the production department can prevent delays before they arise and there by ensuring maximum utilization of production capacity. The inspection department in factory has a major responsibility in as much as it has to estimate loses due to low quality material purchasing, control in time all detective production and ensure quality of raw materials, work in progress and finished goods. A good inspection department is very helpful for achieving production quality. PRODUCTION SYSTEM IN KWCS LTD. The kanhirode weavers co-operative P & S society produces different types of handloom products for local market and international market. They produce products on the basis of orders. This society has its own production factory with inches looms. There are 345 workers are engaged in production process. They produce pure cotton products with different colours and designs on the basis of order received from parties. The main raw materials used in the production are; Yarns Dyes Chemicals Accessories

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They purchase these raw materials from Government agencies, National Handloom Development corporation (NHDC) and also purchase materials from private firms. At the time of purchase materials from NHDC, they provide different subsidies. The purchase of raw materials either on cash or on credit basis. The purchase department does this.

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PRODUCTION CAPACITY

SCOURING IN HOUSE BLEACHING & DYEING IN HOUSE WEAVING Width 100 Inches 90 Inches 72 Inches 60 Inches 54 Inches 48 Inches 36 to 42 Inches Monthly In house capacity 500 Mts 500 Mts 1000 Mts 3000 Mts 1000 Mts 2000 Mts 2000 Mts JACQUARD 60 Inches STITCHING IN HOUSE OUT SOURCE 4 machines 25 machines 1000 Mts 3000 Mts Monthly outsource 2000 Mts 2000 Mts 2000 Mts 3000 Mts 2000 Mts 2000 Mts 2000 Mts 6000 Bundles/Month 6000 Bundles/Month

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PRODUCTION PROCESS CHART

BOILING

DYEING

WINDING

WARPING

WEAVING

QUALITY INSPECTION

CUTTING & SWEING

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PRODUCTION PROCESSES IN KWCS


The main production processes in Kanhirode Weavers Co-operative society Ltd. are as given below. Boiling Dyeing Winding Warping Weaving Quality inspection Cutting & Sewing

1. Boiling Boiling is the first step in the production process. It is done for removing the impurities present in the yarn used for bleaching and dyeing. Fro the boiling process they use wood as fuel. The processed yarn is bleached using bleaching powder/and hydrogen peroxide according to the requirements. 2. Dyeing Dyeing is the process of impregnating the fiber, yarn or fabric with the dyestuff. Dyeing can be done on the yarn, fiber or fabric. It is the method by which colour is applied to the fabric. Usually they are dyeing the material on the yarn stage. 3. Winding Winding converts the package of the yarn the hank yarn is wounded on the pirn (small bobbin used in handloom weaving) for preparing the weft. It is done manually, especially of ladies are engaged in this work.

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4. Warping Warping is the preparatory stage for weaving. Which prepares the yarn for weaving. Cones of yarn are created on to a machine and winding about 500 to 700 threads produce a sheet of yarn on beam together. 5. Weaving Weaving is interlacing of vertical yarn (warp) and horizontal yarn (weft). Depending on the type of the weave, warp yarn sheet is divided and lifted. Weft yarn is carried across in a pirm held in a shuttle. This is the basis weaving process. The shuttle is thrown from one end of the warp sheet to another end by hand. 6. Quality Inspection Quality of the products is thoroughly checked by trained and qualified employees. The inspection is carried out various stages such as purchase of raw materials, during manufacturing process and final stage to assess the status of the product for acceptance or other wise. 7. Cutting & Sweing The made-ups are then stitched at the society. Styles are followed in precision with great care given to detailing in each and made-ups items. This unit has a workforce of 45 workers.

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CHAPTER VII

MARKETING DEPARTMENT

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MARKETING DEPARTMENT
The success of every business organization depends on providing right product at right time in right quantity to the customers. Marketing deals with all activities, which create, promote and distribute products in accordance with the customers demand. Marketing management is another important functional department in the society. It is concerned with decisions and policies relating to the marketing activities in the business. The concept to market has three inter related aspects place; which pre supposes a convenient meeting place for the buyers and sellers. Area aspect; which limits the market to a convenient area, the demand aspects which implies customer demand. Marketing is the process of discovering and translating the consumer needs and wants into products and services. And they in turn making it possible for more and more consumers to enjoy more and more of those products and services. This society produced products mainly for exporting. In the society more than 75% of the products are exported. The KWCS Ltd produces different types of handloom products for local market and international market. For Local Market Lungies Shirting Satin & Printed bed sheets Dhothies Towels Thorth Saree etc.

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For International Market Furnishing Fabrics Jacquard Items Shirtings Crepe Apron Bed sheet Bed spreads Table cloth Napkins Cushion covers Curtains Sofa cases Sofa covers Floor mats Balster Terry towels Other made-ups etc. This society mainly exported to UK and USA. And other countries are Australia, France, Germany, Italy, Dubai, Hong Kong, Europe etc. They produce and export these. Products on the basis of orders from foreigners. After receiving the orders from parties and produced with high quality and then exported. They started exporting in 1960 to 1970. At that item they exported in small quantities. Later the major portion of productions is selling through exporting. They export more than 75% of the total production and earn more profit. For catching foreign customers they conduct exhibitions in foreign countries.
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They export their products through ships and airways. Mostly they use ship because of less transportation cost. They adopt two types of marketing in exporting. They are, 1. Merchant Exporters 2. Direct Exporting 1. Merchant Exporters. These are the middlemen for party and the company. The collect orders from parties and the society receive orders from these merchant exporters. According to these orders the society produced products. 2. Direct Exporting In this type of export, the society directly conducts with the foreign customers and collects orders from these parties. Then produce products on the requirements of customers and export these products directly. This company started direct exporting in the year 1998 on wards. Now a day they gave more importance to direct exporting. They earn 75% of profit in international market and earn 25% profit in domestic market. The 25% of products are sold in local market through dealers (deports) and exhibitions etc. During the festival season they conduct exhibitions in various places. They have six depots; they are in Kudukkimotta, Kanhirode, Taliparamba, Kuttiyattoor, Kambil and Iritty. The prices of the products are fixed on the basis of cost of production and certain percentage of profit. They also provide 20% discounts or rebate for its products.

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MARKETING CHANNELS
For International Market:

Company

Merchant Exporters

Customers

For Local Market:

Company

Dealer (Deport)

Customers

Following are main products for local market. 1. Bed Sheet The Bed sheet is one of the main products in local market. There are three types of bed sheet are manufactured by the society. They are plane, printed and check. From these printed bed sheet is of more demand in the market compared to other twos. The cost of printed bed sheet is high because printing charge will be insured in it. 2. Lungies It is of high demand in the local market the read in lungies are 60, 72, 80 and 100.

3. Shirtings
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The demand for shirting is very high because it is made pure cotton. The brand name used by the society in selling the shirting items are a weaveco. The company is planning to concentrate on the market of ready-made shirts. 4. Dhothies Dhothies are two types; they are double dhothi and Kavi dhothi. In Marketing, they function of buying implies buying raw materials by manufacturers for use in production of buying goods by middlemen or sale to consumers and not buying of goods by consumers for final consumption. Buying refers to the purchase of the right type of goods in right quantity, at the right time from the right source at the right place. Selling is another important function of marketing. Selling include, 1. Product planning and development, forecasting consumer needs etc. 2. Searching for new uses of the product. 3. Creation, maintenance, and extension demand for goods through such means as advertising, personal selling, sales promotion etc. 4. Negotiation with the buyers as to the terms of sale made of delivery, terms of payment etc. 5. Entering into final contract with buyers and effecting transfer of ownership and possession of goods to the buyers. This company sells its products through local market and international market. The sales turnover and export sales turnover of the company are given below;

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SALES TURNOVER FOR THE LAST 4 YEARS.

2001-2002

Rs. 39672917

2002-2003

Rs. 37981807

2003-2004

Rs. 47115928

2004-2005

Rs. 42524980

SALES TURNOVER CHART FOR THE LAST 4 YEARS


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50000000 45000000 40000000 35000000 30000000 25000000 20000000 15000000 10000000 5000000 0

Sales (Rs. in Crores)

2001-02

2002-03 Years

2003-04

2004-05

EXPORT SALES TURNOVER FOR THE LAST 5 YEARS.

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2000-2001

Rs. 25502166

2001-2002

Rs. 32557209

2002-2003

Rs. 26660562

2003-2004

Rs. 34262702

2004-2005

Rs. 28502695

EXPORT SALES TURNOVER CHART FOR THE LAST 5 YEARS

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35000000 30000000

Export Sales

25000000 20000000 15000000 10000000 5000000 0 2000-01 2001-02 2002-03 2003-04 2004-05

Years

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Production

and

consumption

are

linked

through

transportation.

Transportation is an important function of marketing. The speed and reliability of transportation encourages the function of storage. The manufactures need transportation for carrying machinery and raw materials to the factory. Then finished goods have to be transported to the middlemen and finally delivered to the consumers, at all these stages transportation is very essential. The transportation for marketing involves the selection a particular model of transport depending upon the speed and economy. They mainly use road transport for carrying raw materials. For exporting they use airways and waterways. They exported mainly through ships be cause of less transportation cost. Storage is an essential function at marketing. Warehousing facilitates storage. Storage refers to the holding and preservation of gods between the time of their production and consumption. Warehouses are large storage hours contracted for the purpose of storing and preserving goods. This society has its own warehouse for storing materials and finished goods. The yarn bales received area stored off the floor count wise. The dyes and chemicals are stored in a separate room to avoid exposure to air and probable deterioration. It is issued on a First-in-First out basis. The yarn during the wet procession is stored off the floor using bamboo stick or polythene rodes. The processed yarn is stored safely in the designated area. The trims and accessories are stored in the bin or racks. Packing materials are stored size wise in a separate place. The weaving supervisor ensures proper storage of intermediate products such as ball warp, bobbins, warp beam, and pirns at the proper storage of pattern, cut components and finished made-ups or garments. The export in charge ensures proper storage of final pack ages with clear identification such as order number, package number, buyers name, destination etc. The items are stored for more than one year, and it is re-Inspected to find out the probable deterioration and to ascertaining the usability in future.

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Standardization and grading of products is essential function in marketing. Natural raw materials require standardizations and grading in the process of selling. Manufactured goods are standardized and graded in the process of production itself. Standardizations refer to the establishment of certain standards for commodity on the basis of its physical properties or quality. Standardized goods have some quality from who ever they are bought. Standardization and grading facilitates selling by description and sample. Cost of advertising and sales promoting will be less standardized goods. Package Packaging is the out of designing and creating proper packages for different products. A package is wrapper or container in which a product is concluding for the purpose of sale. The main advantages of packaging are; 1. 2. 3. 4. 5. 6. Packaging protects the goods from deterioration, expose etc during transport, storage and use. It helps to identify the product by the brand name and re collect the name while purchasing. Packaging indicates nature, weight, content etc of the product. This provides an assurance to the customer about quality, weight etc. Packaging attracts the attention of the buyers and acts as an advertisement. Packaging facilities handling and use of product. This method o fusing the product is sometimes indicated on the package. Packaging helps branding as the brand name can be printed.

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STANDARD PACKING INSTRUCTIONS OF KWCS


Fabrics: 1. Roll the fabrics in paper width 61 length and 1 diameter. 2. Cover the fabrics in polyethylene sheet. 3. Cover the fabrics in far paper (Craft paper). 4. Pack each roll in polyethylene bags. 5. Strap two rolls tightened. 6. Cover the rolls with water paper and far paper and gunny fabrics. 7. Mark bale number. Party Name, address etc. 8. Add silica gel into bale pieces while packing. Made-ups/cushion covers: 1. Put each pieces in polyethylene bags. 2. 10 pieces into master bags. 3. 4 Master bags into 7 ply cartons. 4. Make the cartons with number and partys name. 5. Ad silica gel in master bags and in cartons. Sofa case and other made-ups: 1. Bundle 5 or 10 pieces required together to one polyethylene bag. 2. 2 master bags into 7 ply cartons. 3. Mark the carton with number and partys name. 4. Add silica gel in each master bag. Brand Name Branding is a marketing technique. In the society the brand name is used in all products. Their brand name is WEAVECO. The products of the society are very familiar and attractive in local market and international market.
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Advertisement Advertising is one of the major promotional tool in marketing. Advertising is the any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor. The advertising increases the demand of the products. They mainly used advertisement medias are newspapers, magazines and other published materials. The publications of co-operative and other organizations, souvenir published during festival seasons and other cultural events are the main media of advertisement of the society. They are selling products directly or through middlemen.

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CHAPTER VIII

PERSONNEL DEPARTMENT

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PERSONNEL DEPARTMENT
The success of modern business organization is heavily dependent upon the contribution made by employees as they perform the various tasks to which they are assigned. Organizations tend to be successful when employees are satisfied and productive in performing their tasks. The term personnel refers to body of persons employed in an organization, factory, office etc. personnel management, therefore means management of people employed in an organization. In this sense, personnel management is related to the staffing function of management. The basic objectives of a personnel department is to assist the management to produce and distribute goods and service by creating, retaining a workforce with the ability and motivation to accomplish the objectives of the organization. The importance of personnel management is increasingly realized in these days, especially, in business and industry. The problems in spite of increasing automation, the future of mankind depends on the effective utilization of human resources. That is whey in modern industry a separate department is developed for managing the human resources. The personnel department is responsible for the execution of policies regarding selection, employment, transfer and discharge of workers and payment of wages to them. Different departments to the personnel department send requisitions for placement of workers. The personnel department then initiates actions in selecting personnel either locally or advertisement in newspapers. Personnel management is an extension of general management that promotes and stimulates every employee to make all contribution to the purpose

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of the business. The main object of human resource department is the accomplishment of the objectives of an enterprise. It is making an uninterrupted supply of labour force in the organization & motivates the workforce of the organization. In Kanhirode Weavers co-operative society, there is a separate specialized department for managing human resources. This department is cocoordinated by the chief executive/secretary. The over all control of the society is carried by board of directors. The shareholders elect the board of directors. The boards of directors are selecting one of the directors as a president or a vice-president. The board of directors recruits all the office and administrative staffs. The board of directors shall consists of not more than a members of whom 7 members are elected and at least five shall be weavers members and the remaining two shall be nominated by the district industries officer from his staff. The secretary shall be responsible for the executive administration of the society Subject to the control of the president. The secretary shall be the exofficio treasurer and shall have the custody of all the properties of the society. The president has a general control over all the affairs of the society. No person shall be eligible for the post mentioned below unless he possesses the qualifications noted against him or her. 1. Secretary or manager : SSLC (Eligible for college course and a course of training undergone in any of the co-operative industries) 2. Clerk A: Pass in IV form 3. Attenders A: Pass in II form 4. Peons : Literate knowing read and write.

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At the present 370 employees are working in the society. Which include office staff, dyeing workers, weavers, winding workers, packing, sales, designing and stitching workers. Majority of the society employees are womens. There by ensuring the economic freedom of major household in around the locality. Number of Employees in KWCS

Working Area Office Dyeing Weaving Winding Packing Sales Designing Stitching

No. of Workers 15 16 230 79 9 7 2 12

All the employees working in the organization to undertake the specified duties are competent to undertake the job on the basis of education, training, skills and experience. This society provides appropriate training to the employees as per the requirements. The Chief Executive or Secretary maintains the records of employees. The head of the department conduct periodical meeting to create awareness, relevance and importance of their activities towards the achievement of quality objectives. Wage Structure: For staff : Salary + D A Piece rate + D A

For workers :

Benefits to Workers

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Apart from the actual wages, the society provides the following benefits to its workers.

Contributory provident Fund Bonus Casual leave wages Medical Allowances Loom maintenance/Allowances Gratuity Festival Holidays wages

12% 8.33-20% 5% 5% (Approximate slab systemMaximum 6%) 3% 5% 5% (13 days Avg. wags)

And the society also provides maternity benefits. Incentive schemes Apart from the above benefits, the society had implemented its own welfare fund scheme and Employee State Insurance (ESI) scheme for the benefits of the workers and employees. Towards the fund, the society shall collect from workers @ Rs 4/- per month and society shall be paying Rs 16/- per month per worker. Both these contributions were deposited in the bank A/c. The interest accrued are also credited in the same A/c. 10% of the Net profit of the society are also credited to this A/c. Out of these, the society provide 6% production incentives to workers.Out of these benefits, the society provides various financial assistance to its workers. They are as follows. 1) Financial assistance to meet the educational expenses of workers children.

Pre Degree/Diploma Graduation Post Graduation

Rs. 500/ Year Rs 750/ Year Rs 1000/ Year

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2)

Medical/Engineering

Rs 2000/ Year

Financial assistance to meet the funeral, when the workers, or their family members die.

3)

Retirement Benefits: When a worker retire from service, after, completing 20 years of ser vice and after attaining the age of 55 years, then the workers are entitled to get a lump sum amount of Rs. 5000/- from the fund.

4)

The society also provides medical assistance to its employees.

Bonus The society gives bonus to its workers and employees in festival time. The management in a discussion determines the rate of bonus payable with trade union representatives. In the last year, the society provide 20% bonus to its employees. Leaves Every employee of the society shall be entitled to casual leave not exceeding 15 days in a year. Every employee of the society shall be entitled to sick leave on any reasonable ground up to 18 days of every 12 months of his service. The secretary shall be authority competent section casual leave to other employee of the society and the president shall be the authority competent to sanction of causal leave to the secretary and privilege leave to all the employees including the secretary. No employee of the society shall canvassing or otherwise use his influence in any way in the election of office bearers of the institution in which they are employed. Promotion

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Promotion is the upward reassignment in an organizational hierarchy accompanied by increased responsibility, enhanced status and usually with increased income. In Kanhirode Weavers Co-operative Society, the promotion of the employees is base don seniority. Time Schedule Office Time Working Time : 9 AM to 5.30 PM : 8.30 AM to 6 PM

In this schedule includes one-hour lunch break and half hour tea break. Trade Union Trade union is a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working life. In the company, employee-employer relationship is very cordial. The trade union influence industrial democracy, morale and productivity. The workers and staff of the company formed their own unions to protect their interest. In this society there are mainly two trade unions. They are; 1. Kerala Co-operative Employees union (KCEU) 2. Handloom Workers Union (HWU) These two trade unions are affiliated to CITU. Since there is only one trade union. So there is no scope for interunion revelry.

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FUNCTIONS OF PERSONNEL DEPARTMENT


The personnel department performs various functions in an organization. The personnel function is concerned with the procurement, development, compensation, integration and maintenance of the personnel of an organization towards the accomplishment of the organizations major goals and policies. The important functions of personnel department are as follows. 1) Procurement of personnel This includes manpower planning, recruitment, selection, vocational guidance, and placement of the right people for various jobs in the organization. 2) Development of personnel. This is concerned with the increase of workers skill through education and training, necessary for efficient job performance, it is concerned with forming sound promotion policy, determination of the basis of promotion and making performance appraisal also came under the personnel department function. 3) Compensation Compensation to the employees in the form of wages, salaries, and bonus assumes great significance, as remuneration is probably the best motivation for workers to perform the jobs assigned to them. Implementation of incentive and premium bonus plans and policies. 4) Integration The personnel department has to reconcile or integrate individual and organizational objectives through sound industrial relations. The measures for

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promoting industrial relations include industrial discipline, maintenance of industrial peace, securing co-operation between trade union and management, workers participation in management, collective bargaining, grievances and suggestion systems. 5) Maintenance Maintenance refers to the keeping of the workforce in a highly satisfied and motivated condition. It is very essential for the smooth running of the organization. 6) Records and Researches The personnel department keeps the detailed record of the employees of the organization. The information collected and recorded includes informations relating to selection, employment, induction, education and training of each employee. It also covers information regarding labour turnover, absenteeism, grievances, suggestions, complaints, accidence etc. recording is essential for every management because it assists the management in decision-making. Research is also an important function of personnel department. Research is needed to improve the methods of selection, job analysis, merit rating, training etc. new motivation technique may also be experimented up on.

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TRAINING PLAN

Sl. No. 1 2

Scope Safety (Fire Fighting) On the job training Induction Training Safety (First Aid) Technical Training Skill up gradation programme IQA Training

Participants Selected employees Identified employees New recruits Selected employees Technical staff

Conducted by External agency In-house training In-house training External agency External agency Agency notified by Govt. of Kerala External agency

Method Classes with demonstration Demonstration

Period

Continuous 3 moths from date of joining. As per the availability of training AS per the Govt. sanctions. As notice by the agency.

Classes

Classes Practical training

Selected operators Selected employees

On the job training

Classes

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CHAPTER IX

FINANCE DEPARTMENT

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FINANCE DEPARTMENT
Finance is an integral part of modern economic life and occupies important plays in all economic activities. Economic growth depends on the adequate and timely finance. Finance is required to bring a business into existence, to keep it alive and see it growing. Finance is the life blood of business. Finance refers to money, cash or fund available for the operations of the business, without finance a business cannot function. The management of all business cannot function. The management of all activities related to finance requires considerable expertise and specialized knowledge of banks, financial institutions, the different sources of finance and ways to profitably utilise these funds. Financial management will there fore, include planning, organizing, directing and controlling financial activities in an organization. Financing is a very important factor in every business. Therefore its management requires special attention. As finance or money is important for any activity especially in business. One has to procure it from available sources. Finance collected from various sources and it cannot be kept idle. It has to be invested in profitable venture. Now a days the importance of financial management has increased because of the commitment of the management to various parties interested in the organization. Financial management performs various functions. They are financial planning, procurement of funds, utilization of funds, disposal of surplus, financial control etc. The KWCS has well efficient finance department. The secretary of this society heads this department. They collect fund from various societies. Such as
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members share, Govt. share etc. They will get 1.20 crores cash credit from NABARD. The organization chart of finance department is given below.

Secretary

Manager

Accountant They prepared daybook, general ledger, personal ledger, stock register etc. the final accounts are audited by statutory auditor. They follow concurrent audit for verifying the accounts. The Govt pays the cost of audit. Following are the systematic representation of accounting procedure of KWCS Ltd.

Journals

Sub ledger

Main ledger

Trial balance

P & L Account

Balance Sheet

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Source of Capital The various sources of capital are as follows. 1. Thrift deposit 2. Fixed deposit 3. Recurring deposit 4. Home safe deposit 5. Insurance deposit

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FINANCIAL MANAGEMENT IN THE SOCIETY


The financial management performs various functions in the society. The main and important functions performed by the society are as follows. 1. Financial planning: The objective of financial management is to make necessary funds available for investment for the purpose of achieving organizational objectives. Financial planning is the first step in the direction. Planning is to deciding in advance. What is to be done in future? Financial planning there fore involves management divisions regarding the financial plans. The primary task of financial manager is to formulate financial plans suitable for the firms size and requirements. The financial planning involves long range plans for plant expansion. Replacement of machinery and equipments and a lot of other expenditures causing large cash drains. 2. Procurement of funds: The second responsibility of financial manager is to procure the necessary funds to satisfy the needs of the organization. It is decided to realize the needed funds by assuring shares and debentures. The finance manager has to arrange for the issue of prospectus and take other steps necessary for the purpose. Where it is proposed to borrow money from financial institutions or banks, the finance manager will negotiate with the concerned authorities. 3. Utilization of funds: After procuring the funds the finance manager take steps to allocate funds among different assets according to their respective needs. The finance manager should carefully manage the optimum utilization of funds, avoiding wastage etc.

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He has to ensure that creditors due are maintained and shareholders get a fair return on the capital untested by them. 4. Disposal of surplus: Another function of financial management is disposal of surplus arising from the investment of funds. It is the finance manager job to allocate the earning after enterprise as between different claims. A part of earning may be rationed for financing expansion of business. The balance of powerful maybe distributed to the owners as dividend as a return on their capital. 5. Financial Control: This is another important function of financial management. The financial managers are responsible for controlling the uses of funds placed at his disposal. He will ensure that funds re being utilized effectively in accordance with the predetermined plans. Control funds involve development of standard of performance and comparison of actual performance with standard. 6. Analysis and evaluation of finance function: It involves financial reporting, financial statement analysis, fund flow statement, cash flow statement and cash and capital budgeting.

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THE BALANCE SHEET OF KWCS LTD AS ON 31.03.2006

LIABILITY Share capital Deposits Reserve fund Other funds Govt. Loan Grant

AMOUNT 2191535.00 495529.59 3586653.11 7586617.23 167500.00 33451262.11

ASSETS AMOUNT Cash in hand & 1316525.22 bank Investments 1861520.40 Adj. Heads due 22158539.68 to society Fixed assets 15025433.98 Looms & other 12370727.00 accessories Closing stock 11559405.80

Dividend due 439431.74 Borrowing 3403258.17 Grade charges 2398178.10 due Establishment & 40283.25 Cont. due (Audit cost) Reserves Net profit 2003-2004 1427821.88 2004-2005 1935435.46 507613.58 Net profit 509976.38 Total 81045152.08 24839491.94

81045152.08

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CHAPTER X

PURCHASE DEPARTMENT

PURCHASE DEPARTMENT

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Purchasing is one of the important activity in a business organization. In narrow sense purchasing means merely the act of buying the required items. But in modern management this term is used in a boarder sense. It includes a number of activities beyond the simple buying they are; 1. Research and development required for proper selection of material. 2. Methods and procedures required for purchasing. 3. Follow up to insure proper delivery. 4. Co-ordination of activities of related department like receiving, store keeping, inspecting and accounting. In modern management purchasing is substituted b the term procurement. It is a broader term and includes all the activities performed by purchasing department and additional functions like supervision, inventory management etc. In large scale organization there will be a separate department ie, purchasing department headed by purchasing manager. In small scale the manager or storekeeper may carry organization the duty of purchasing. Purchased department plays a very important role in an organization because purchasing has its effect on every vital factor concerning manufacture, quality, cost, efficiency and prompt delivery of goods to the consumers. Its function is to procure material, suppliers, services, machines and tools at most favorable terms constant with maintains the desired standard of quality. For an organization, purchase is a window to the outside world. The primary function of purchasing is that of being sensitive to the external supply market situation and also of feedback this information to the other functions of the organizations.

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Purchasing is the most important function of material management. The primary objectives of purchase department are to purchase right quality material at the right time at the right place, from right sources with at least cost. In this society, the secretary,/chief executive has the over all responsibility for all purchasing activity in this society. They purchase raw materials, and accessories in accordance with the order of quantity produced. The purchase department purchase different types of raw material and accessories for producing products they are; Raw materials: Yarn Dyes Chemicals

Accessories: Carton Celica jel Labels Zip runner Poly bags Rope Buttons Sewing threads Lace Elastic Tape etc.

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They mainly purchased raw material like yarn, dyes and chemicals from national handloom development corporation (NHDC) and other private parties. At that time of purchasing yarn, they will get Govt. subsidy, hank yarn subsidy and handling charge subsidy. All the purchases made from approved supplies based on their ability to supply and past performance. All the purchase are made after assessing the availability of stock in the society. In case of emergency time they purchase material from other than approved supplies. They maintain a minimum of yarn, dyes and chemicals. The head of the department verify the stock position level periodically. The stock is reached at the minimum re-order level, they will made new purchase. This society has a very good quality control department. This department ensures the quality of purchased materials. Made OF Payment The payment is made through cash, DD, or cheque. The payment is made at the time of delivery to goods or with in the credit period allowed by the superior.

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FUNCTIONS OF PURCHASE DEPARTMENT


The functions of purchase department is to decide what to purchase, when to purchase, where to purchase, how much to purchase, at what price to purchase and make availability of the product as per the request of the production department of the organization. The main functions are to take decision relating to; 1. What to purchase 2. When to purchase 3. Where to purchase 4. How much to purchase 5. What price to purchase

PURCHASING PROCESSES IN KWCS


To perform these functions the purchase department must perform certain procedures the procedure for purchasing of raw material in the society are as follows. 1. Receiving of purchase requisition: A purchase requisition is a request for purchase of a product. The production department or production supervisor normally gives it. He will give a request to the purchase department for the goods required for production. The purchase requisition is generally prepared three copies. The first one is sent to purchasing department, the second one is sent to the storekeeper or the department, which initiates the requisition, and the third one is sent to the authorizing executives.

2. Exploring the sources of supply and selecting the suppliers.


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A source of supply of materials must be selected after the receipt of the purchase requisition. The purchase department usually maintains for every group of materials a list of suppliers name and addresses. After receiving the purchase requisition, the purchase manager must explore the source of supply and choose the supplier. He must identity the source of product and where it is available. Quotation may be invited from these suppliers by issuing tenders to them. On receipt of quotation from suppliers, a comparative statement of various quotations received should be prepared and the desirable suppliers should be selected. He must ensure that the items as per the request of the production departments. While selecting the suppliers to whom the order is the purchase manager is keep in mind the following cases. Manufacturing capability. Reliability of the suppler. Financial conditions of the suppliers. Price quoted. Quantity of purchase. Terms of delivery Terms of payment Specification to which the products are manufactured.

3. Purchaser Order After identifying the sources of materials and selection of suppliers, then he must take the necessary action requires for the purchase of the item. He must enter a contract for the supply the item. He must ensure the quality of the product also. He must specify the date and time of delivery of goods.

The purchase order is the written document between the buyer and the supplier. The supplier is bound to supply materials according to the terms and conditions of the purchase order and the purchaser is require to accept deliveryof material and make the payment for material as agreed upon. In the society
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normally fire copies are prepared and kept by different departments and persons. They are, the original copy is send to the suppliers, one copy is send to the receiving department ,one copy is send to finance department, one copy is send to production department and the last copy is retained by the purchase department for future reference. 4. Receiving and Inspecting Materials. After receiving the goods, the purchase manager must make arrangement for storage and he must ensure the products are as per standards. He must inspect the items by physical examination or laboratory examination required and ensure that the items as per the order. 5. Checking and passing of bill for payment When the invoice is received form the suppliers, it is send to the stores accounting section to check both the authentically as well as the arithmetical accuracy. After the physical or laboratory examination of the goods, the purchase manager must check the bills, he matched with goods specified in the bill and received goods. The arithmetical accuracy of the invoice is also checked and verified. After the verification of invoice, the stores accounting section certifies and passes the invoice for payment. On the basis of invoice. On the basis of invoice, the cashier can make payment. Payment made according to the terms and conditions agreed between the parties.

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CHAPTER XI

QUALITY CONTROL DEPARTMENT

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QAUALITY CONTROL DEPARTMENT


One of the major achievements of industrial revolution is mass production of uni9form quality. The industrialist maintained their quality in production and all other aspects. The need for quality is felt in our country than anywhere. For too long consumers have been the victims of poor quality goods. They are subject to various exploitations such as low quality, low weight, and different quality in same package etc. The quality is important due to the following reasons. 1. By using quality raw materials qualified employees, plant & machinery etc are lead to increase in the productivity. 2. Better quality reduces the cost of repairs and rework. So cost of production can be reduced. 3. 4. Quality of the products results in sustained profit. Satisfied customers are important assets of a company. Customer loyalty can be attained only through maintenance of required quality. 5. Goodwill of the company depends on the quality of the products. So good quality helps to increase goodwill. Quality control does not begin after the goods are produced. In stead it begins log before the actual production. The following diagram can show the quality control.

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Input

Conversion

Output

Raw materials components/parts

Work-in-progress

Goods & Service

Acceptance test

Control Charts

Acceptance Test

Quality of input

Quality of WIP

Quality of Output

The Kanhirode Weavers Co-operative society is a ISO 9001-2000 certified company. The scope of ISO 9001-2000 certification covers manufacture and supply of home textiles. Such as fabrics, made-ups and other textile articles for direct export and other merchant exporter. For the purpose of implementing ISO 9001-2000 Quality management system (QMS) in M/s Kanhirode Weavers Co-operative society has established and documented a quality management system to continually improve the effectiveness as per the requirements of this international standard. This society has a good quality control section or verifying the incoming goods and final inspection of finished goods. The overall responsibility of the quality control department is quality assurance officer (QAO). He ensure the quality of raw materials, work-in-progress and finished goods. A quality controller is also work-under the Quality Assurance Officer. For improving quality, they conduct quantity plan and inspection, Test plan for measuring and at analyzing the quality of the products.

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THE STRUCTURE OF QUALITY CONTROL DEPARTMENT .

Q.A Officer

Quality controller

The quality Management System (QMS) in the society are as follows. Levels

I QM II III IV V QM OP TAD WI Quantity Manual Operating Procedure. Technical and allied Documents Work Instructions. OP TAD WI FORAMT & RECORDS

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QUALITY MANAGEMENT SYSTEM PLANNING.


Management representative is over all responsible to ensure that planning of quality management system is carried out to meet the companys stated quality requirements of the products and as well as quality requirements of the products and as well as quality objectives. The management representative is also responsible to ensure the dynamism of quality management during the planning and implementation of the system.

QUALITY OBJECTIVES OF KWCS


The company has formulated the quality objectives keeping in line with the started quality policy and the quality parameters of the product. The objectives are measurable in quantitative terms. The company formulated quality objectives are as follows. 1. To maintain 95% first time acceptance in the dyeing department. 2. To maintain 95% first time acceptance in the made-ups department. 3. To provide in house test facilities to test colour fastness to washing, rubbing and colour matching cabinet. 4. To achieve 95% on time delivery indirect export on the continuous basis 5. Start commercial production in dyeing by using modern facilities. The actions plans are reviewed once in six months for ascertaining the degree of conformance and the management provides the necessary resources as required for achieving these objectives.

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INTERNAL AUDIT

The internal audit are planned and conducted at least three times in a year. It covers all the departments of the company. The audit is intended to find out, Adequacy of the quality management system as per the international standard. Compliance of the system in the company and, Effectiveness of the quality management system for continual improvement.

The audits are planner taking into consideration. The importance of the activity of the stated quality objectives and companies scope of activity. The summery of the previous audit, which shows the area of immediate attention and improvement. The qualified internal who is independent of the area being audited conducts audits. The management representative follow up the audit reports and ensures timely corrective actions on the deficiencies found during the internal audit. The follow up audits are conducted to see the effectiveness of the corrective action taken and also to verify the reports of action taken and also to verify the report of action taken.

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QUALITY POLICY
The Kanhirode Weavers Co-operative society is committed to be a quality driven organization with a philosophy Together Forge Ahead in the area of manufacturing and supplying of home textiles such as fabrics, made ups and other textile articles for exports and domestic market. They Aim At Providing home textile to the requirements of the customers at an economical price and meeting on time delivery schedules to the satisfaction of the customers. Promoting term work and respecting human values and ethics providing resources for continual improvement through technology up gradation and development of human resources.

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CHAPTER XII

FINDINGS AND SUGGESTIONS

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FINDINGS AND SUGGESTIONS


Findings:
1. They mainly concentrate in International markets and less importance to local markets. 2. They must give more importance to the quality of the product and also try to reduce the cost of production. 3. 4. 5. Production is done one the basis of customers order. Productions are 100% export quality. This society provides employment opportunity for a lot of people in that locality. 6. 7. 8. Every worker of the society is a shareholder of this society. There is a proper grievance handling system in the society. During the festival season this society provide special packages for its customers like discount, rebate etc. 9. 10. 11. Labour problems are very less in this society. Trade unions have freedom to function effectively. The co-operation of workers and management are very high in this society.

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Suggestions:

1.

The society should have more promotional activities like advertisement, sales promotion, personal selling, etc to increase sales.

2. 3. 4. 5.

The society shall utilise its 100% production capacity. Pricing should be flexible according to the demand. The society shall concentrate more on local market. Production speed should be increased and must give importance to quality factor also.

6.

Latest technology should be used in production. It will helps to reduce the labour cost and to increase production.

7. 8.

More training should be provide to its employees. Diversified product can create more sales. Innovations in product design, size, colour etc should be essential while meeting foreign orders.

9.

Develop a good image for product and create brand loyalty among consumers.

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CHAPTER XIII

CONCLUSION

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CONCLUSION
The Kanhirode Weavers Co-operative P & S society Ltd was the first ISO 9001-2000 certified handloom society in Kerala. They produce high quality products to the local market and international market. This societys products are very familiar in national and international market. But the attractiveness of silk and other synthetic products affected the society. The globalization and liberalization also affected the society in the selling of its products. Now they are contributing their share in the international market by selling their products to units or companies who are exporting in the country. Globalization and liberalization affects the society and other industries in the country. Globalization and liberalization affects the society and other industries in the country. But the society must take it as a challenge and produce quality products in a most competitive price, as per the international standards. The society engaged in direct exporting for their products because the handloom products have heavy demand in foreign countries. They must know the pulses of the international market, which is very easy in the era of computerization. Handloom is the most attractive and eco friendly products used by Indians from the early civilization. Handloom is becoming more and more important in foreign market. The society has to face heavy competition from the part of large-scale private handloom industries. The cost of production is high in Kerala than other states. This is due to high wages to the workers, low productivity of workers, high transportation cost, high raw material cost etc. so the society cannot make a reasonable profit. But the modernization and sophistication will help the society to reduce cost and to compete in the foreign market. Not only that the society must know have the pulse of the international market to exit profitable in the handloom sector.

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BIBLIOGRAPHY

1. Philip Kotler - Marketing Management - Pearson Education 2. K. Aswathappa & K. Shridhara Bhat - Production and operation Management - Himalaya Publications House. 3. www.weaveco.com

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ABBREVIATION
1. KWCS KANHIRODE WEAVERS CO-OPERATIVE SOCIETY 2. P & S PURCHASE AND SALES 3. Q A 4. C E 5. LTD 7. HOD 8. WIP QUALITY ASSURANCE CHIEF EXECUTIVE LIMITED HEAD OF THE DEPARTMENT WORK IN PROGRESS

6. CO-OP CO-OPERATIVE

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