Project Lunar 28

Report on organisation study at Lunar Rubbers Pvt.
Ltd
CHAPTER I INTRODUCTION
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Report on organisation study at Lunar Rubbers Pvt. Ltd
INTRODUCTION
As a step in to the next millennium managers will be witnessing new dimensions in designing their organisations. The continuous change in the industrial environment will force todays organisations to adapt to the existing system. Study about these organisations will benefit company and academicians to review the new dimensions in building up of high-tech corporate of the future. Organisation is the structural framework of duties and responsibilities required of personnel in performing various functions with a view to achieve business goals, through organisations. Classicists have used the term organisations in the form of organizing which is a part of management process. Presently the term organisation is used in the following ways with or without prefix or suffix. As an entity. As a group of people As structure As a process
The most frequent use of the term organisation is an entity and is referred to use an enterprise as a whole, like company , corporation , partnership firm, etc..In this firm, organisation is defined as collectively for achieving common objectives..
William R Scott has defined organisation as follows organisations are collectivities of people that have been established for the pursuit of relatively specific objectives on more or less continuous basics.
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1.1 OBJECTIVES OF THE STUDY 1. To study the organisation as a system and its various functional areas 2. To have a practical knowledge of the application of the management theories. 3. To have the life knowledge of an organisation through various departments. 4. To understand the strategies adopted to confront the challenges faced by the company 5. Conduct an analysis on SWOT 6. Conduct an analysis on competitive analysis 1.2 METHODOLOGY The organisation study was conducted by collecting information from primary and secondary data sources. The study conducted in three phases The first phase involved collecting information from various manuals, articles, website etc. The second phase involved interviewing departmental heads and other staffs for understanding the activities of each department. Its structure and the roles played by each of them The third phase involved visiting operational sites of various departments. The main aim of visit was to obtain a physical feel of the departments and observe the activities performed by it, and its importance of the whole organisation.
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1.3 SCOPE OF THE COMPANY A well organized or effectively planned organisation forms the base stone of
every successful business. The project study on organisation provides an excellent opportunity for experiencing or understanding the organisation in its real colours. This also enables the student to found out the correlation between the theory and the real business situations. The project helps in developing the internal abilities like conceptual, inter personal skills and there by encourages the entrepreneurial capabilities of the student. The study covers the functioning of marketing, personnel (H.R) and finance & production departments. REASONS FOR SELECTING THE COMPANY Lunar is one of the famous Hawai chapel manufacturing companies in Kerala. Lunar rubbers Pvt. Ltd is situated at Olamattom, Thodupuzha, and Idukki District. They have a good brand image in Kerala. They are producing Lunar Hawai chapels, Lunar umbrellas and Lunar bags. But this year onwards company decided to stop the production of bags. Lunar Pvt. Ltd. have four well functioning departments. The company officials are very much helpful and supportive for the students, doing projects in the company. The reputation of the company influenced me also. So I select this organisation for my study.
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ABOUT THE STUDY Duration I spend 30 days in the organisation for the study of various departments. METHODS OF DATA COLLECTION Primary Data I refer to the data that was collected first hand, directly from the source. This consisted primarily of interviews and discussion with the managers, employees and other staffs.
Secondary data I refer to the data that was previously collected by others for another purpose. It includes
Company booklets Organisational website Annual report
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1.4 LIMITATIONS OF THE STUDY Organisation was reluctant to discloser the financial and other relevant information required for the study There is a chance for personal prejudice or bias while interviewing the different heads for collecting various information about the organisation
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1.5 CHAPTERISATION
The report has been presented in eight chapters are as follows CHAPTER 1 : Deals with introduction, objective of the study scope an significance of the study, methodology of the study, and limitations. : Industry profile : It includes company profile, product profile history, objective, Vision and mission. : Deals with different functional departments : SWOT analysis. : Porters Five force analysis. : Findings and suggestions : Conclusion
CHAPTER 2 CHAPTER 3
CHAPTER 4 CHAPTER 5 CHAPTER 6 CHAPTER 7 CHAPTER 8
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CHAPTER II INDUSTRY PROFILE
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2.1 FOOTWEAR INDUSTRY The history of footwear industry goes back many 1000 years. Today footwear industry manufacture a wide range of footwear varying from leather rubber, and other synthetic materials of styles varying from casual, formal work and athletic shoes. Paraffin wax and China clay are the most important raw material. These are easily available in India. In Kerala English India Clay Ltd. Thiruvananthapuram provides the china clay for the footwear manufactures. Important Hawai footwear manufactures in Kerala are Lunar, Paragon, Bata, Rubco, Vkc etc. Paragon group is the largest manufactures of Hawai chapels in Kerala. Footwear industry is a high profit and fast growing industry, which provides good income to the country. There is cut-throat competitions in the Hawai chapel industry. There are a number of Hawai chapel manufactures and hence if one has to survive in the industry, it has to strengthen its marketing network. The competition in the industry rises as the number of Hawai manufactures increases. Lunar Rubber Pvt Ltd is one of the well known of most advanced manufactures of footwear and Umbrella. Lunar Rubbers Pvt Ltd. emphasis on providing customer satisfaction of quality products. Now-a-days, rubber industry is growing exponentially. Rubber is an important material in modern business world. Every year the use of rubber is rising. Now the rubber has become an indispensable material, which has got much demand in daily life.
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2.2 USES OF RUBBER The use of rubber is widespread, ranging from household to industrial products, entering the production stream at the intermediate stage or as final products. Tires and tubes are the largest consumers of rubber, accounting for around 56% total consumption in 2005. The remaining 44% are taken up by the general rubber goods (GRG) sector, which includes all products except tires and tubes. Pre-historical Uses The first use of rubber was natural latex from the Hevea Tree in 1600 BC by the Ancient Mayans. They boiled the harvested latex to make a ball for sport. Manufacturing Other significant uses of rubber are door and window profiles, hoses, belts, matting, flooring and dampeners (anti-vibration mounts) for the automotive industry in what is known as the "under the bonnet" products. Gloves (medical, household and industrial) are also large consumers of rubber and toy balloons, although the type of rubber used is that of the concentrated latex. Significant tonnage of rubber is used as adhesives in many manufacturing industries and products, although the two most noticeable are the paper and the carpet industry. Rubber is also commonly used to make rubber bands and pencil erasers. Textile Applications Additionally, rubber produced as a fiber sometimes called elastic, has significant value for use in the textile industry because of its excellent elongation and recovery properties. For these purposes, manufactured rubber fiber is made as either an extruded round fiber or rectangular fibers that are cut into strips from extruded film. Because of IMK, Adoor 10
its low dye acceptance, feel and appearance, the rubber fiber is either covered by yarn of another fiber or directly woven with other yarns into the fabric. In the early 1900s, for example, rubber yarns were used in foundation garments. While rubber is still used in textile manufacturing, its low tenacity limits its use in lightweight garments because latex lacks resistance to oxidizing agents and is damaged by aging, sunlight, oil, and perspiration. Seeking a way to address these shortcomings, the textile industry has turned to Neoprene (polymer form of Chloroprene), a type of synthetic rubber as well as another more commonly used elastomer fiber, spandex (also known as elastane), because of their superiority to rubber in both strength and durability. Vulcanization Natural rubber is often vulcanized, a process by which the rubber is heated and sulfur, peroxide or bisphenol are added to improve resilience and elasticity, and to prevent it from perishing. Vulcanization greatly improved the durability and utility of rubber from the 1830s on. The development of vulcanization is most closely associated with Charles Goodyear. Carbon black is often used as an additive to rubber to improve its strength, especially in vehicle tires. Allergic Reactions Some people have a serious latex allergy, and exposure to certain natural rubber latex products such as latex gloves can cause anaphylactic shock. Guayule latex is hypoallergenic and is being researched as a substitute to the allergy-inducing Hevea latexes. Unlike the sappable Hevea tree, these relatively small shrubs must be harvested whole and latex extracted from each cell. Some allergic reactions are not from the latex but from residues of other ingredients used to process the latex into clothing, gloves, foam, etc. These allergies are usually referred to as multiple chemical sensitivity (MCS).
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2.3 OVERVIEW OF THE INDIAN FOOTWEAR INDUSTRY The Footwear Industry is a significant segment of the Leather Industry in India. India ranks second among the footwear producing countries next to China. India produces more of gents footwear while the worlds major production is in ladies footwear. .The industry is labour intensive and is concentrated in the small and cottage industry sectors. While leather shoes and uppers are concentrated in large scale units, the sandals and chappals are produced in the household and cottage sector. In the case of chappals and sandals, use of non-leather material is prevalent in the domestic market. The major production centres India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra and Delhi. The following table indicates concentration of units in various parts of the country:
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The major production centres in India Region Tamil Nadu Delhi & up North Agra, Kanpur Calcutta Bangalore Mumbai Others Large & Medium Scale 64 4 9 1 6 3 13 SSI 31 8 34 3 3 11 10 32 ( Table: 2.1 ) The estimated annual footwear production capacity in 1999 is nearly 1736 million pairs (776 million pairs of leather footwear and 960 million pairs of non-leather footwear). Region-wise share of total estimated capacities is as follows: Household 7 25 14 19 4
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Region-wise share of total estimated capacities Region Leather shoes Nonleather Shoes Percentage Tamil Nadu Delhi & up North Agra, Kanpur Calcutta Bangalore Mumbai Others Total 45 12 3 4 0 100 0 0 3 2 13 100 32 2 4 1 3 100 62 3 0 32 1 100 0 0 0 0 40 100 ( Table: 2.2) Shoes manufactured in India wear brand names like Florsheim, Gabor, Clarks, Salamander and St. Micheals. As part of its effort to play a lead role in the global trade, the Indian leather industry is focusing on key deliverables of innovative design, consistently superior quality and unfailing delivery schedules. India in itself has a huge domestic market, which is largely untapped. The Indian footwear industry is provided with institutional infrastructure support through premier institutions like Central Leather Research Institute, Chennai, Footwear Design & Development Institute, Noida, National Institute of Fashion Technology, New 26 10 5 77 54 4 1 1 0 60 Leather Shoe Uppers Leather Sandals Non Leather Sandals
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Delhi, etc in the areas of technological development, design and product development and human resource development. The availability of abundant raw material base, large domestic market and the opportunity to cater to world markets makes India an attractive destination for technology and investments. Import In 1999, the global import of footwear (leather and non-leather) in terms of value was around US$ 43278 million, accounting a share of 63.42% in the total global import of leather and leather products. Out of this, import of leather footwear alone accounted for US$ 26379 million and non-leather footwear US$ 16899 million. Export Indias export of Leather Footwear touched US$ 331 million in 1999-2000, recording an increase of 3.29% over the preceding year. India thus holds a share of 1.25% in the global import of leather footwear. The major markets for Indian Leather Footwear are the U.K., the U.S.A., Germany, Italy, France and Russia. Nearly 71% of Indias export of Leather Footwear is to Germany, the U.S.A., the U.K and Italy. In 1999-2000, export of leather footwear from India constituted 21% share of its total export of leather and leather products. Nearly 33 million pairs of various types of leather footwear were exported during the year, out of which shoes / boots constituted 90%. The different types of leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes, horrachies, sandals, beallerinas, booties.
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Export of leather footwear during the last three years: (Value in million US$) Product Leather Footwear 1998-99 1999-2000 2000-2001 320.25 330.80 348.96
Export projections for the next two years: (Value in million US$) Product Leather Footwear 2001-02 453 2002-03 506
Following leading institutes in India are engaged in imparting training to personnel in the footwear manufacturing as per the requirement of the trade and industry
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Institution For Training Footwear Manufacturing Name of Institute Council for Leather Exports (CLE) Address and E-mail Leather Centre, 53 Raja Muthiah Road Periamet, Chennai 600 003 Fax: 044-538 8713/538 7083 Email: cle@giasmd01.vsnl.net.in A-10/A, Sector-24, NOIDA-201301 Email: fddi@del2.vsnl.net.in 41-42 Industrial Area, Site C, Sikandra Agra 282002 (U.P) E-Mail cftiagra@usa.net 65/1 GST Road, Guindy, Chennai-600032 Tele: 044-2341529/236876 Email: cfti@md5.vsnl.net.in ( Table: 2.3 ) The CLRI and the FDDI are also equipped to carry out most of the tests for footwear manufacturing and issue certificates. 2.4 INDIAN FOOTWEAR COMPONENTS INDUSTRY The Footwear Component Industry is a segment of the Leather Industry in India. The Footwear components, which are mainly exported from India, are Leather Shoe Uppers and Leather Unit Soles. The estimated annual production capacity of Leather Shoe Uppers is 112 million pairs. The major production centres are Chennai, Ranipet, Ambur in Tamil Nadu, Agra and Delhi. The components industry has enormous opportunity for growth to cater to increasing production of footwear of various types, both for export and domestic market. Indias export of Footwear Components touched US$ 229.49 million in 1999-2000, holding a share of 15% in Indias total export of leather and leather products. Nearly 75% of the total export of footwear components is from the IMK, Adoor 17
Footwear Design & Development Institute (FDDI) Central Footwear Training Institute (CFTI) Agra Chennai
Southern Region, followed by the Northern Region, with a share of 13%. The major markets for Indian footwear components are the U.K., Germany, Italy, the USA, France, and Portugal. Nearly 83% of Indias export of footwear components is to the above countries. In the year 1999-2000, India exported footwear components to the tune of 38 million pairs mainly consisting of leather shoe uppers, leather unit soles and other components, out of which Leather shoe uppers (gents and ladies) alone constituted a share of 84%. Export of footwear components during the last three years (Value in million US$) Product Footwear Components 1998-99 237.72 1999-2000 229.49 2000-2001 219.81
Export projections for the next two years: (Value in million US$) Product Footwear Components 2001-02 314 2002-03 350
2.5 STATE SCENARIO

However, 94% of the natural rubber is produced in Kerala and the balance 6% is from plantations in other states. But now the production is higher than the demand. The value is increasing day by day. In these states most of the rubber based industry are engaged in the production of tyres, rubber bands, thread rubber, Footwear etc.There are over five thousand rubber goods manufacturing units in the country consuming over 5 lakh tones of rubber per year. Nearly 48% of the rubber consume in the country is by 30 % tyre manufactures. Now there is a big boom in the rubber based industrial sectors of the state. Kerala entrepreneurs and rubber growers are educated, encouraged and supported in setting rubber based industries.
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CHAPTER III COMPANY PROFILE
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3.1 COMPANY PROFILE Lunar rubbers Pvt Ltd. Was promoted by Sri Isaac Joseph based on the wide experience he has gained as the Managing Director of Viking Rubbers (p) Ltd was registered as an S.S.I unit. Unit started working from 1976 in the Mini industrial Estate Olamattom, Thodupuzha. The unit was promoted as part of experience in the field and limited know how regarding machinery and market the unit could go very far. Yet with a determination the promoters held on to the proposal and continued the project. All liabilities from the government and banks were paid up. At present there is no outside liability other than current liabilities for working capital. Lunar Rubbers a partnership firm ,was registered as an S.S.I , unit No. 09-1100429/PMT/SSI dated 27-11-82 the firm was converted in to a private limited company during January 1993. Lunar Rubbers Pvt. Ltd could, make a breakthrough in the market by introducing high quality light weight chapels. The quality of the product attracted large number of customers in the state and neighboring states. The demand for the product rose very high and caters to the increasing market additional production capacity was set up. The company has got good sales contacts through out South India Gujarat and Maharashtra and established a reputation in the field of producing and selling Hawai chapels. It was sneaked in to the market of our neighboring countries also. with head office at Thodupuzha. The company has production unit at Thodupuzha, Mysore, Coimbathore and Mundakayam
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LUNAR RUBBERS (P) LTD AN EMERGING GROUP Lunar group is promoted by Mr. Issac Joseph . An engineer by profession he is well experienced in developing and promoting innovative business strategies. Around 40% of the group is sold out side Kerala including Gulf countries and European countries. In India Lunars Hawai chapel is available in the state of Tmilnadu, Karnataka , Gujarath, Maharastra , Andrapredesh, Pondichery, Goa, etc. other than kerala. .The group of expanding its capacity and product line like canvas and leather shoe manufacturing are on the anvil. The company has entered in the umbrella market, information technology, tourism , etc. marketing its growth in to yet another lucrative area. With a penchant for customer satisfaction and a passion of research and development the company is confident of surpassing its goals. THE LUNAR GROUP OF COMPANIES LUNAR RUBBERS (P) LTD VIKING RUBBERS (P) LTD NEO RUBBER FOOTCRAFTS (P) LTD AKSHAYA RUBBERS MISHA RUBBERS FOOTCRAFT RUBBERS INDUSTRIES MATHEW RUBERS UTHAM RUBBERS -THODUPUZHA -THODUPUZHA , CIMBATHORE -THODUPUZHA -MYSORE -MYSORE -MUNDAKAYAM -CIMBATHORE -MYSORE
VISION 1. To become a market leader in the rubber industry in the Indian market. 2. To maintain customer satisfaction IMK, Adoor 21
MISSION 1. Optimum utilization of resources. 2. To make every employee feel proud of his organisation. 3. To maintain international quality system standard GOALS AND OBJECTIVE 1. Increase the market share by maximizing sales and improve the quality of the product offered. 2. To be competitive at a maximizing value of the money 3. Maintain absolute leadership over the market in the near future. 4. To enlarge their business scale of operation by introducing new technology. 5. The main object of the company is to carry on the business of manufacturing of footwears of different kinds. 6. Some of the major objective are profit maximization, customer satisfaction, effective utilization of work force, to reduce cost of production, bring financial stability. SRATEGIES Organisation usually follows several plans to reach their goals. Lunar formulated following strategies to achieve these objectives. Develop superior quality products using new technology imported from developed countries. Company will also continue to identify and explore consumer market by conducting market researches. Thoughtful planning and rightly hiring human resources helps the company to maintain high level of standard in its operation. IMK, Adoor 22
PRODUCT PROFILE
Lunar products
Lunar Hawai chapels
Lunar umbrella
Lunar school bags & shoes
Tourism ventures
(Chart No 3.1 Products of Lunar ) LUNAR HAWAI CHAPEL a) Lunar Deluxe This is blue, beige, black, green in colour for gents, ladies, and kids. It is light in weight and soft and having antiskid bottom with patented TWT sole. This will get I giant size also. b) Lunar Cushion This is blue, black, and beige in colour for gents & ladies. c) Lunar Dimple: This is slippers with high heel and having TWT bottom which is specially designed for ladies. d) Lunar Lite: EVA e) PU Footwear: f) Aerolex PVC
LUNAR UMBRELLA a) Kids umbrella IMK, Adoor 23
b) Two fold umbrella. c) Three fold umbrella. d) Gents bent type umbrella. SCHOOL BAGS AND SHOES These are newly introduced in to the company. The different styles of bags and shoes for junior and senior students are available in the market. TOURISM VENTURES Green berg holiday resort and Green berg resource facility centre. They are located at Nadukani, Kulamave, Idukki (Dist) Kerala. LUNAR HAWAI CHAPEL SPECIAL FEATURES The Two way thread ( TWT) for greater grip a potential design that has won great acclaim and appreciation. The thin, strong and well filing strip of Lunars Hawai moulded with superior quality material provided comfort to the user and a longer life to the chappals. Surpasses the standards. Lunars light weight rubber Hawai are designed to pamper your feet with extra care and comfort. These slippers weight only 150 gms per piece and contain excellent natural rubber. These slippers have increased durability due to absence of fillers and use of quality materials. Lunar Hawai available in size ranging from 1 to 12 for various segments like kids, children, boys, ladies, gents, giants. QUALITY OBJECTIVE IMK, Adoor 24
Acquiring an export share of 45% by 2009. Set up and establish a laboratory for product testing with in six months. Increase the turnover by 20 % every year. Attend all customers complaints within 2 working days. Collect suggestions from employees and utilize for improvement. Introduce at least one new product in 2 years.
CERTIFICATE Lunar Rubbers Pvt. Ltd Is an ISO 9001- 2000 certified Company. POLICY OF THE COMPANY We at lunar Rubbers Pvt . Ltd . Are committed to: Leadership by example. Utmost customer satisfaction Non stop quality up gradation. Assure employee involvement in the quality management system. Reciprocate by delivering products that moves fast in the market.
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The superiority of Lunar has been understood and recognized throughout. And the company has been honoured by quite a number of awards in recognition to its performance.

State Consumer Protection Award for manufacturing consumer products. Vanijya Ratna Award by Southern Vanijya Federation, Trivandrum. Business Man of Kerala Award by Indian Junior Chamber, Zone-20. Best Entrepreneur Award by Commerce Forum, St. Thomas College, Palai. Best Entrepreneur Award by Kerala State Small Industries Association (KSSIA). Vijayasree Award by Kerala Vyapari Vyavasayi Ekopana Samiti. Best Entrepreneur Award by Indian Jaycees, Southern Zone.
ORGANISATIONAL STRUCTURE
Board of Directors IMK, Adoor 26
Director 1
Managing Director General Manager Asst. Gene. Manager
Director 2
Finance Manager Fin. & Acc.
Marketing Manager Marketing Manager
HR Manager Asst. HR Manager
Production Manager
Purchase Manager
Maintenanc
Works Manager Executive Officer Officer
Acc.Off 1
Acc. Off.2 Junior Acc. Clerk Marketing Officer Sales Officer
Supervisor
Junior Acc. Clerk
Mechanics Plumbers Electricians .
Junior Officer Senior Assistant Office Assistant Clerk
(Chart No 3.2 organizational structure)

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3.2 MANAGERIAL FUNCTIONS There will be quarterly meeting of the director board members. The board of directors in their meeting takes corporate level policies and procedures. In case of any emergency situation there will be special meetings. The boards of directors appoint the managing director to be in overall charge of administration of the company and office, assisted by various officers at the office and the factory. Any strategic decision involving policy matters will be taken only with concurrence of managing director. He will be assisted by the general manager, Asst. General Manager, Finance Manager, Marketing Manager and production Manager. The managing Director conducts weekly meeting with each department head, G.M and A.G.M. Functional level decisions are taken at these meeting. In these meeting each department head will give report of the previous weeks work. These reports will help to asses the performance of the previous week. The General Manager is in overall charge of the office with particular charge of matters connected with Registrar of Companies , Banks , District industry centre, Sales tax, and Company meeting . He will be assisted by assistant General Manager and other officers and staff in the proper running of the organisation. The assistant General Manager will assist the Managing Director and G.M. in successfully carrying out their work with special reference to P.F, E.S.I, Rubber board, Labour office Insurance companies, Motor vehicles and Motor vehicles Departments, Tax and Vehicle Finance, Training and Personnel, Municipal and Panchayath Licenses. Etc Planning has primacy over the management functions and is a pervasive element in organisations. By planning, managers minimize uncertainty and risk. Planning does not deal with decisions, but with the futurity of present decisions.
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Top level managers of the company are generally concerned with planning involving activities that will take place six months and above. Lower level managers are concerned with planning activities for the delay, week or month. The supervisors plan for the work activities for their people for the day. They are not responsible for producing sales level and ordering materials to produce products in the future. Top level managers generally spend more time on planning. They are more concerned with establishing objectives and developing plans to meet these objectives. Lower level managers are more involved in executing these. DECISION MAKING Decision making is an essential part of the management. A managers life is filled with a constant series of decisions .The managers make hundreds of decisions consciously and subconsciously every day. Decision making is the key part of a managers activities. It spread through all managerial functions such as planning, organizing, direction and control. In planning it is through the process of decision making that objectives and policies and laid down and the manager decided many things such as what to produce, what to sell, where , when , how and so on. In organisation decision making relates to the choice of structure, nature and for of the organisation, division of the work delegation of authority fixing of responsibility and the like. In direction decision making relates to determining the course deciding the orders and instructions to be given, providing dynamic leadership and similar other issues. In controlling the decisions relate to the lying down of performance standards, strategies control points procedure for control and so on. The method of decision making at various levels in Lunar is directly linked to the process of the level of Board of Directors and Managing Director. Timely and proper decisions are making the activities of the company vibrant. IMK, Adoor 29
AUTHORITY Authority of the superior depends on the willingness of his subordinates to accept it. The authority becomes somewhat meaningless unless those affected accepted it and respond it. If the subordinates do not accept authority it is not real and does not exist. Here in the company the authority is accepted. RESPONSIBILITY When a superior assigns some work to a subordinate, it becomes his responsibility to perform it. Responsibility is the obligation of a person to perform certain duties .Responsibility is his accountability to his superiors. The subordinates must have been delegated enough authority to undertake all the duties which have been assigned to him and for which he has accept responsibility for activities for which he has no authority. There is laxity at few places as far as responsibility is concerned. This is a tendency in part of persons at superior level. This is due to lack of determination to exert authority. This has to be checked.
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RESPONSIBILITY & AUTHORITY I MANAGING DIRECTOR (MD): He is the Chief Executive Officer of the Organisation Responsibilities are Document control: to approve policy, manual & procedures Management review: to Chair Management review meetings Recourse Management: to provide necessary recourses for the smooth operation of the organisation Customer Focus: to review customer requirements and promote the customer awareness Purchase: to approve purchase of raw material, chemicals, packing materials, engineering and capital goods, import of materials Production provision: to review resource requirement for production and production plan approval Continual improvement: to decide are for the improvement and necessary action for improvement on the basis of data analysis Control of non Conforming Products: To review abnormal product non conformities and action plan for improvement Corrective of pervasive action: To review Customers feedback to review the non conformity so reported and to decide corrective / preventive action Marketing: to approve price list, export orders Marketing strategy, promotional activity Administration: To approve policies, recruitment of top officials etc. Performance appraisal of senior staff. Leave sanction of senior staff. IMK, Adoor 31
Payment approval. Approval of all policy matters.
GENERAL MANAGER Overall responsibility of the administrative activities. Legal matter monitoring. Monitoring of statutory or regulatory requirements. Liaison with Govt. / Statutory or bodies. Labour issues monitoring. Sales tax and related matters. Advice MD on all policy matters.
FINANCE MANAGER Head the finance of Accounts department. Advice MD on finance matters and Accounts matters. Recommended / evaluate cost control measures. Verifying all purchase bills. Verifying all cheque payments. Watching all expenses. Preparation of final accounts and conducting audits.
MANAGEMENT REPRESENTATIVE (MR) Plant Manager is appointed as the management representative and has the authority and responsibility to:
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Ensure that policy objective (relevant to the function ) are communicated and understood also ensure the process of the QMS are established and maintained. Report to management on performance of this system and any need for improvement. Promoting awareness of customer requirements throughout the organisation. Liaise with external agencies including cerifying body on matters related to this QMS Plan and organize internal and external audits and follow up on corrective actions resulting from the audits. Plan and organize management review meeting and prepare minutes of the meeting.
PLANT MANAGER Overall responsibility of the plant. Quality and quantity of production. Material requirement information. Planning of preventive maintenance. Efficient operation of the plant. Discussing of giving necessary instructions to subordinates. Technical problem solving. Optimizing the utility consumption Labour Control / Relations. Appraisal of factory staff. Quality system implementation, monitoring and improvement. Controlling production and maintenance records. Training and discipline of the factory personnel. Timely manufacturing of products. Reporting to MD regarding Factory functioning. IMK, Adoor 33
WORKS MANAGER Overall responsibility of the cutting , assembling and packing units. Arranging products for dispatch in time. Arranging packing materials. Coordinating with manufacturing units. Reporting to MD regarding product complaints. Performance monitoring of the cutting unit. Co ordination with out sourcing unit.
CHEMIST- Compounding Overall responsibility of compounding. Technical problem solving. Physical verification of raw materials. Stock of raw materials and chemicals. Product rejection analysis. Process control Optimization of production cost. Co- ordination with physical lab. Ensure the implementation of quality system. Reporting to MD/PM regarding compounding issue. Custodian of stock. Raising purchase indents. Receipt of materials. Issue of materials. Maintenance of all relevant records.
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QUALITY CONTROL OFFICER Overall responsibility of the incoming, in process and final inspection of the product. Control of raw material specification. Incoming, in process and final inspection of the raw materials / product against quality plan. Calibration of measuring and monitoring equipment. Finished product checking and reporting quality issue to PM/MD Co- ordinate with production for process control. Maintaining lab records. Periodical testing of raw materials and finished goods.
SHIFT IN CHARGE Overall responsibility of shift activities. Quantity and quality of production. Maintenance activity. Supervisor control. Workers control.
SHIFT SUPERVISOR Supervise the activities in the shift. Job allocation to the workers and manpower control in the shift. Quality and quantity of production. House keeping. Shift documentation. IMK, Adoor 35
Ensure the operational instructions are implemented and followed. Responsible for the loading and unloading activities. Proper arranging and identification of raw materials and chemicals. Control of loading workforce. Proper arranging of ready for dispatch materials.
ACCOUNTS MANAGER 1 Overall responsibility of records. Verification of journal bills and vouchers. Payment to parties- verification of payment request, writing of cheques and preparing vouchers. Import related matters. Export related matters like preparation of documents, house stuffing negotiation with bank etc. ROC related matters like filling of various forms return etc. Attending company law related matters like preparation of statutory registers. Preparation of monthly trail balance. Finalization of closing entries. Cash / cheque control. Preparation of cash flow. Income tax matters.
ACCOUNTS MANAGER -2 Data entry of raw material purchase. Verification of sales invoices. IMK, Adoor 36
Preparation of branch transfer delivery notes etc. All work related to provident fund. Filling of returns and correspondence related to ESI. All work relating to sales tax. Verification of accounts related to Coimbatore branch. Assistance in maintenance of stick records related to umbrella. Verification of C forms, from 25, from 18 etc, issue to suppliers. Assistance in connection with finalization of records. Verification of vehicle repair bills etc. All matters related to KGST and CST.
ACCOUNTS ASSISTANT Preparation of cash vouchers. General vouchers. Data entry operation. Bill verification. Correspondence. File maintenance.
PURCHASE MANAGER Overall responsibility of purchase activity. Vendor control. Vendor development. Price monitoring. Timely supply arrangement of materials. IMK, Adoor 37
Purchase bill verification and recommending payment. Maintenance and control of the stock control.
MARKETING MANAGER Overall responsibility of marketing activities. Market development. Promotional activities. Distributor control. Preparing of sales plan. Sales monitoring. Route planning. Control of sales office. Cash collection / monitoring of collection of duties. Marketing analysis. Collection of market data.
MAINTENANCE PERSONNEL Preventive and breakdown maintenance. Beginning store control. Intimating engineering requirements to PM. Verification of incoming engineering materials. Break down analysis.
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CHAPTER IV DEPARTMENTS & ITS FUNCTIONS
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HUMAN RESOURCE DEPARTMENT
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4.1 HUMAN RESOURCE DEPARTMENT Human resource department refers to a set of programs, activities of functions designed of carried out in order to maximize both employee and organisational effectiveness. According to Jucius, human resource refers to a whole consisting of interrelated, inter -department and integrity, physiological, psychological, sociological of ethical components . Thus human resource represents the quantitative and qualitative measurement of work force required in an organisation. The goal of human resource management is to help an organisation to meet strategic goals by attracting, maintaining employees and also to manage them effectively. The key word here perhaps it fit i.e a HRM approach seeks to ensure a fit between the management of an organisations employees, and the overall strategic direction of the company [Miller, 1989] Human resource management comprises several processes. Together they are supposed to achieve the above mentioned goal. This process can be performed in an HR department, but some tasks can also be outsourced or performed by line managers or other departments. Personnel department of Lunar Rubbers view people as the most important source of assets to be used for benefit of organisation and society. The human resource philosophy of the management aims at formulation of policies that promote neutrality, mutual respect, mutual rewards and mutual responsibilities.
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STRUCTURE OF HUMAN RESOURCE DEPARTMENT
HR MANAGER
ASST. HR MANAGER
( Chart no: 4.1
Structure of HR department)
HUMAN RESOURCE FUNCTIONS Recruitment For recruiting, Lunar seeks help from advertising media and recruiting agencies. Ability and willingness of person to work hard are considered at the time of recruitment. Selection In Lunar selection is done through tests and interviews. Interview is done by the managing director and Board of directors in the presence of concerned department heads. Placement Most suitable persons from selection will get placement in the organisation. IMK, Adoor 43
Probation The probationary period workers and staffs in Lunar is up to six months. TRAINING AND DEVELOPMENT The company has well structured training program and the training is given to all workers. Usually the training period for the workers is 3 to 6 months. The company selects employee for training by identifying the training needs. Company should give timely training to the workers of the factory. The company uses the job training and class room training method. Promotion On the basis of employees efficiency in performance, commitment or loyalty the management will give job promotion to the employees. Personnel Records The company keeps the personnel records for their reference. Seniority List The management keeps a seniority list of the employees. GRIEVANCE HANDLING In Lunar the problems of workers should be solved the Managing Director. Workers can tell their grievances directly to MD and he will take corrective steps to solve it.
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RECRUITMENT: Recruitment is the process of searching for employees and stimulating and encouraging them to apply for the jobs in he organisation
Recruitme
Recruitment
Internal sources
External sources
Transfer and promotion
Press advertisemen t
Educational institution
Placement
(Chart No 4.2 structure of recruitment)
The main source of recruitment in Lunar Rubbers Pvt. Ltd. is external sources. The company has eight branches. The recruitment and selection of employees is done by each branches separately and final approval is from the head office. No special qualification regarding education is considered for factory workers. The only factor considered is the ability and willingness of persons to work hard. The minimum age of workers is fixed as 18 years but no maximum age limit is fixed.
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SELECTION Selection is the process of choosing the most suitable person out of the entire applicant. The purpose of the selection is to pick up the right person for right job and at the right time and at the right place. Selection is an important function. No organisation can achieve its goal with out selecting the right people. In Lunar Rubbers Pvt .Ltd, sometimes selection is done through informal interview. There is no medical examination for fitness for the selection. In selection process attitude of the person is considered. SELECTION PROCESS Sometimes Lunar Rubbers Pvt. Ltd, select people through campus interviews. TRAINING AND DEVELOPMENT Employee training is distinct from management development. Training is short term process, utilizing a systematic and organized procedure by which non managerial person learn technical knowledge and skill for a definite purpose. On the other hand development is a long term educational process utilizing a systematic and organized procedure by which non managerial personnel learn conceptual theoretical knowledge for general purpose. In Lunar Lunar Rubbers Pvt. Ltd training is given to almost all workers. The method of training is on the job training . Training period ranges from 2 weeks to 2 years. Workers will get stipend during the training days. COMPENSATION
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Employee compensation is a vital part of human resource management. Wages , salaries , and other forms of employee compensation constitute a very large component of operating cost . One of the biggest factors affecting industrial relation is the salary or the wage the compensation an employee receives for a fair daily work. 1. Basic compensation Basic pay. 2. Supplementary compensation incentives and variable payments. METHODE OF WAGE PAYMENT In Lunar there are two methods of wage payment. 1. Time wage system: The time wage system is applicable in case of workers 2. Piece wage system: Under this system workers are paid according to amount of work done or the number of units completed CONSTITUENTS OF SALARY The following are the constituents of salary * Basic pay * HRA WORKING TIME Working time for the office staff is 9.30 am to 6 pm .There are 3 shifts for factory workers. The workers must work 8 hours / day. First shift is 8.30 am to 5.30 pm. Second shift starts from 5.30 pm to 1.30 pm and third shift are from 1.30 am to 8.30 am. The working time will be rotated from each worker. i.e., everyone should work in all these three shifts. There are 25 working days in month. * DA * TA * Telephone allowance
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WORK FORCE OF THE COMPANY There are about 140 employees working in the organisation. Some of them are skilled and permanent and some are semiskilled and trainees. Proper supervision is necessary to the factory because a little carelessness on the part of workers leads to the wastage of the product. Office Employee Details Employee in office Accounts Administration Field Total No. of employees 5 5 5 15
(Table No: 4.1 )
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Factory Employee Details Employees in factory Production manager Supervisor Chemist Skilled Semi skilled Helpers Total No Employees 1 12 2 30 40 25 110
(Table no: 4.2 ) INCENTIVES There is a standard performance beyond which workers will get special rewards. LEAVE One earned leave for 20 days and one ESI leaves for 15 days are given to all employees. Daily wage is the basis of wage calculation but the wages are paid monthly. Advance of wages given to the needy workers on Sundays. Supervisors will get monthly wages on the basis of monthly wage system.
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BONUS Bonus is given once in a year. I t is in December.
EMPLOYEE GRIEVANCES In lunar Rubbers Pvt. Ltd the problem of workers should be solved by the managing director. Workers can tell their grievances directly to Managing director and he will be take corrective steps to solve it. PERFORMANCE APPRAISAL: Performance appraisal is the measuring the relative worthiness of a Person, who engaged in a job. Based on the performance appraisal, Lunar Rubbers Pvt . Ltd provides best executive award for the employees.Company uses 90 degree appraisal systm. FRINGE BENEFITS 1. Medical facility Workers enjoy ESI hospital facility whole as ESI hospital at Thodupuzha and Perumbavoor . Those workers who do not have ESI facility get Rs 1000 as medical allowance . There is a first aid box. (FAB) in the factory. 2. Free chappal and uniforms Workers are given a spare of chappal and uniform in a year. Reduction in price is also given when they buy Lunar chappal.
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3. Allowance and other benefit Night shift allowance is given to workers. Overtime wage is twice as of normal wage. Gratuity given to all employees who complete 5 years of service including the training period. 4. Labour welfare The workers enjoy following facilities: 1. Facility of washing , storing , and drying their clothes at the company premises. 2. Rest rooms are provided to the workers. 3. Facility for drinking water 4. Facility for making food, but there is no canteen facility in the factory. TRADE UNION There is two trade unions in Lunar Rubbers Pvt Ltd. AITUC (All India Trade Union Congress) and CITU (Central Indian Trade Union). Salary hikes are discussed in the labour office in the presence of union leaders, Managing Director, two persons from management and labour officer.
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FINANCE DEPARTMENT
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4.2 FINANCE DEPARTMENT

Finance is regarded as the lifeblood of business and enterprise. In modern money oriented company, Finance is one of the basis foundations of all kind of economic activities. It is the master key , which provides access to all the sources for being employed in the manufacturing and merchandising activities. Efficient management of every business enterprise is closely linked with efficient management of its finance. Business finance can broadly defined as the activity concerned with the planning, raising, controlling, & administration of the funds uses in the business. The finance department is under the control of the finance manager. The finance manager prepares the budget and he allocates the funds. Other accountants are helping him in this matter. In Lunar Rubbers all accounts are computerized and they follow double entry book keeping. Also the company uses EZ COM accounting software. Company has an external auditor also, K. J. Anto Association Kochi. Company is insured in New India Insurance. FUNCTIONS OF FINANCE DEPARTMENT: 1. Preparation of budgets.
2. Raising funds. 3. Planning, direction, controlling, Utilization of funds. 4. Co-ordinating the operations of the various departments through appropriate measures to ensure the discipline in the use of finance resources. 5. Credit policy: usually company allows credit to their distributors. The maximum credit is 30 days if the distributor purchases the goods for ready cash then the company allows 2% cash discount
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Structure Of Finance Department
Finance manager
Accounts officer 1
Accounts officer 2
Junior accounts Officer Clerk
Junior accounts officer 2 Clerk
Chart no: 4.3 Finance Department structure
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OBJECTIVES The basic objectives of finance management are the maintenance of liquid assets and maximization of the profitability of the firm. Management of liquid assets means that the firm has adequate cash in hand to meet its obligation at all times. The organisation gives credit to customers. In recent years, consumer credit is playing an important role in promoting sales but the realization of these credits is the problem faced by the company. In Lunar the Financial Manager prepares the budget and allocates the funds. Other junior accountant assists him in this matter. The accounts officer 1 is in overall charge of accounts. Trail balance, balance sheet, and audit of accounts, bank assistance, payment to credit, and collection from sundry debtors, watching payment of dues, and all other matters connected with it. He attends all the matters connected with income tax including collection of form and other material for filling returns, super check of classification of payments. Receipt maintenance of cash book ledger etc. he is assisted by junior accountants. The accounts officer 2 is in charge of all matters connected with sales tax accounting of purchase and sales bills, security and passing of vouchers for payment. Preparation of journal accounts, party accounts, branch accounts, bank returns declaration form -18, collection of cheques , Direction of stock register entries. He also assists accounts officer 1 in the preparation and finalization of accounts. The junior officer and accountant assist the accounts officer 2. The junior accounts officer attends to the all accounts of small units returns and returns of company matters, verification , electricity, bills matters connected with SIDCO, computers entry of accounts, printouts, cash book , ledger, bank returns, etc are also the work of junior accounts officers. Their work is under the supervision of the accounts officer, the company giving P.P of workers as mentioned in the Act.
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CREDIT POLICY Usually company allows credit to their distributors. cash discount. CAPITAL STRUCTURE Capital structure of Lunar Share capital Reserve surplus Secured loans Unsecured loans Deserved tax 25% 30% 25% 15% 5% (Table No 4.3 ) FINANCE TURN OVER OF LUNAR Turn over of the company FINANCIAL YEAR 2003- 2004 2004- 2005 2005 -2006 2006-2007 2007-2008 TURN OVER 35,00,00,000.00 40,00,00,000.00 43,00,00,000.00 58,05,00,000.00 64,00,00,000.00 (Table No 4.4 ) The maximum credit is 30 days if the distributor purchases the goods for ready cash then the company allow 2%
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PRODUCTION DEPARTMENT
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4.3 PRODUCTION DEPARTMENT Production is the creation of goods and services. It is concerned with terms forming the inputs in the form of raw material, labour, machinery, men and money in to output. i.e , goods and services with the help of certain production process . Production function is the most important function in an organisation around which other activities of an enterprise via. Marketing, purchasing, and personal etc. revolve. PRODUCTION DEPARTMENT IN LUNAR In production department chief is the production manager under him there are works managers and below them are the supervisors. On getting the projected market demand for the coming month from the marketing department, the production manager assisted by the works manager takes steps and makes arrangements for production. There is also a quality control and inspection wing. All the functions in the production department are checked by the production manager at the regular intervals.
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STRUCTURE OF PRODUCTION DEPARTMENT
Structure of Production Department
Production Manager
Work manager
Maintenance Manager Supervisor
Supervisor
Worker Mechanic Plumber Electrician
Chart No: 4.4 Production department structure
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PLANT LAYOUT
1 3
2 4 5 6 7 8 9 10 11 13
12 14 15
1 Lunar sheets unit. 2 Office 3 finished strap unit 4 Viking sheetpress 5 Viking kneader
6 Neo mixing unit 7 strap manufacturing unit 8 Sheet pressing room 9 Generator room 1 Lunar kneader 0
11 Raw materials inventory 12 Generator room. 13 Inventory 14 Maintenance department 15 Engineering room
( Chart no: 4.5 Plant Layout)
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OBJECTIVES Acquiring an export share of 35% by 208-2009 Set up and establish a laboratory for product testing with in six months. Increase the turn over by 20% every year. Attend all customer complaints with in two working days. Collect suggestion from employees and utilize for improvement. Introduce atleast one new product in 2 years.
PRODUCTS OF LUNAR PVT. LTD Lunar Hawai Chappal Lunars Deluxe Lunars Cushion Lunars Dimple Lunars Safari Active. Leather Touch Aerolux Touch Aerolux PVC Lunars Lite- EVA
LUNAR UMBRELLA Childrens umbrella Two fold umbrella Three fold umbrella IMK, Adoor 61
Gents bent type umbrella
SCHOOL BAG These are newly introduced into the company. The bags for both junior and senior students are available in the market now. QUALITY CONTROL There is a quality control inspection wing. They check the product while passing through various manufacturing process and ensure the quality of the product. Every morning there is a meeting between the plant manager and works manager. In which general appraisal will be made of the last days work. RAW MATERIALS USED IN THE PRODUCTION Rubber: The most important raw material used in the production is rubber. Two varieties of rubber are used. Natural rubber and synthetic rubber. a) Natural rubber: It is the most important raw material used in rubber is taken from local areas. b) Synthetic rubber: It is an artificial rubber. This is two types. Neoprene and Synoprene. Neoprene is used in the mixing. It is very costly than Synprene.Its function is to give more strength. Synoprene is used in the mixing. In Lunar synthetic rubber is taken from Korea and China. Clay: It is used as filler, it is very cheap and very easily available in Kerala, English India clay provides the clay for Lunar rubbers. IMK, Adoor 62 the
production natural rubber is used in the mixing process. in Lunar natural
Pigments and Colours: They are used for giving the pre determined colour of the footwear. They are used as per need usually organic pigments are preferred the case of inorganic pigment exceptions being white colour where titanium dioxide and lithiophone are the pigments used.
Resins and Tackifiers: They are widely used in footwear industry and improve the addition to take the binding the mineral fillers and rubber that are force enhance the physical properties of material filled loaded components. Resins improve the processing capacity and feasibility.
Plasticizers and Softners: These are used in footwear component for (i) Improving the process ability of raw stock and (ii) Reduction in vulcanization.
TYPES OF MACHINERY USED IN THE RODUCTION 1. MIXING MACHINE These machines are of 2 types a) Kneader b) Open Mixing Mill Both are used for mixing there various raw materials. But the capacity and speed of kneader is higher than the other and it is automatically controlled. 2. HYDROLOIC PRESS This is used for moulding Hawai sheets, sheets are inserted in to this press and the required design is moulded on both sides of the sheets. IMK, Adoor 63
3. MOULDS Hawai sold mould is used for moulding the Hawai sheets strap, 8 pairs of strap can be moulded at a time.
4. BOILER It is used for producing required stream. 5. CUTTING PRESS It is used to cut the moulded Hawai sheets in to required sheets. 5. DRILLING MACHINE It is used to make the holes in Hawai soles after cutting in to required size.
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Production Process Chart Chappals Raw materials weighing Mixing mill kneader Ageing of 24 hours
Sheeting
Molding
Sole cutting
Ageing of 15 days
Post curing
Visual examination and lab analysis 1. Dispatch
Assembling
Packing
Dispatch
2. Upper white part
Sole cutting
Sorting defectives
Trimming
Visual examinati on and lab testing
Raw materials weighing
Mixing mill kneader
Ageing of 24 hours
Sheeting
Molding
Chart No: 4.6 Production process chart
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PRODUCTION PROCESS The company engaged in the production of high quality light weight Hawai chapels. The conversion of raw material to footwear involves several processes which are detailed below. Natural rubber is rolled in to the roller of mixing mill. After sometime clay is added to the processed rubber and other chemicals are added to this. Thus we get sheets which are used as the lower blue part of the sole. The upper white part is also made in the form of sheets. The white is put above the blue sheets. They will stick together and weighted. The sheets of required size and weight are moulded in the hydraulic press or in the Hawai sole mould. After moulding the sheets are kept for 14 to 20 days. Then the sheets are cut in to the soles of required size in the cutting press. Then drilling machine will make 3 holes. After some time the strap are moulded in the strap press. And Strapsare is inserted in to the sole and are labelled and packed. Then lunar Hawai chapel is ready for use. SAFTEY MEASURES There is an emergency reverse stop for the safety of the workers. In the emergency situation just pull the stop bar, the machines slowly roll to backward. This is a new technology developed by the maintenance department in the Lunar factory. Company provides gloves and masks for workers for their safety. There is a fire extinguisher and also a first aid box in the company. INVENTORY MANAGEMENT: Every enterprise needs inventory for smooth running of its activities. It serves a link between production and distribution process. There is generally a time lag between the recognition of a need and its fulfilment. The greater the time lag, higher the requirement for inventory. The unforeseen fluctuation in demand and supply of goods also necessitate the need for inventory. It also provide for a cushion for future price fluctuations. IMK, Adoor 66
RE- ORDERING LEVEL When a quantity of materials reaches a certain figure then fresh order is sent to get material again. The order is sent before the material reach minimum stock level. The rate of consumption, number of days required replenishing the stocks, and the maximum quality of material required on any day are taken in to account while fixing reorder level. Production Department has mainly 3 Sections, Purchase, Production, Stores On the basis of re order level duly authorized purchase indent is given to purchase section based on purchasing material. The purchase order is prepared by purchase section based on the requirement evident from the unlimited through purchase indent. The purchase order includes the following such as purchase requisition, number of material description, quantity, rate, total cost, delivery date etc. The purchase section maintains following records. (a) Vendor evaluation: The purchase section maintaining the updating the vendor evaluation records (b) Purchase order format: The purchasing section keeps the purchase order format for the further reference (c) Vendor history registers: The vendor history registers are also keeps with the purchasing section (d) List of approved subcontracts: To know about the approval of the subcontracts the list of contracts keeps with the purchasing section.
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STORE CONTROL SECTION The purchase department as per purchase indents produces materials it is received along with documents like delivery notes, bill of entry and invoice which ever is applicable. Raw materials and other items are transferred in to quality assurance section for inspecting the required quality and the status as indicated in the goods received note. The accepted items are transferred in to the receiving stores and others are sent back to suppliers for the purpose of efficient inventory management following records are prepared. 1. Goods Received Notes ( CRN) 2. Bin Card 3. Stock Register 4. Consumption Report. 5. Issuing Notes 6. Follow-Up Notes. QUALITY CHECKING MACHINE Lunar Rubbers Pvt. Ltd provides more importance to the quality of products. For checking or the measuring quality they use a machine called Rheonetor.
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PURCHASE DEPARTMENT
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4.4 PURCHASE DEPARTMENT

Purchase department plays a very important role in an organisation. Its function is to purchase materials, machines, and tools at the most favourable terms consistent with maintaining the standard quality. Purchase of material at the right time, in adequate quantity and quality and at the right price is very important. PURCHASE DEPARTMENT IN LUNAR In Lunar purchase department is connected with production department. The purchase manager is in the charge of purchase of the purchase department. Purchase officers and storekeepers are there to assist the purchase manager. They will calculate the requirement of chemicals, verify the purchase order assess plan and purchase items in consultation with the production manager. When the level of raw material reaches the re order level, the purchase manager prepares a purchase requisition for raw materials and it send to the chief executive (MD) for the sanction. Once it is sanctioned the order is placed. Purchase manager is one who decides from where the materials have to purchased. There is an easy access to the raw materials fro local sources especially natural rubber which is abundantly available fro the nearby rubber estate. When the raw material arrives the quality controller checks its quality and quantity and verified. It will report to the concerned officer and the bill sanctioned. Then the raw materials are given to the stores.
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STRUCTURE OF PURCHASE DEPARTMENT
Purchase manager
Executive officer
officer
Junior officer
Senior assistant officer
Office assistant
clerk
Chart No: 4.7 Purchase Department Structure
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FUNCTIONS OF PURCHASE DEPARMENT 1. Receiving purchase requisition. 2. Locating source of supply. 3. Choosing a supplier. 4. Preparing purchase order. 5. Receiving, checking and inspecting materials. 6. Passing of bills of payment. MAJOR RAW MATERIALS PURCHASED IN LUNAR Rubber: The most important raw material used in the production is rubber. Two varieties of rubber are used. Natural rubber and synthetic rubber. Clay: It is used as filler , it is very cheap and very easily available in Kerala, English India clay provides the clay for Lunar rubbers. Pigments and Colours: They are used for giving the pre- determined colour of the footwear. Resins and Tacklifiers: Resins improve the processing capacity. Packing Materials: The company purchases packing materials from Ernakulam and Trivandrum. The main packing materials are: 1. Sticker 2. Plastic cover 3. Small cartoon IMK, Adoor 72
Duties and Responsibilities of Purchase Manager in Lunar Pvt Ltd are the Following 1. Overall responsibility of purchase activity 2. Vendor control. 3. Vendor development. 4. Price monitoring. 5. Timely supply arrangement of materials. 6. Purchase bill verification and recommending payment. 7. Maintenance and control of stock register.
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MARKETING DEPARTMENT
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4.5 MARKETING DEPARTMENT

The American marketing association (AMA) Defines marketing as the performance of the business activates that direct the flow of goods and services from the producer to the consumer or to the user. According to Philip Kotler Human activity directed at satisfying needs and wants through exchange involve sellers, searching buyers, identifying their wants and making relevant product promoting and strong transporting and distributing them and negotiating and so on. It represents the important functional area of business, for the flow of good and services from the product to the consumer. It helps to the plan and develops the product on the basis of known consumer needs. MARKETING DEPARTMENT IN LUNAR The Lunar Pvt Ltd has well developed marketing department. The marketing department conducted various meetings to take the decisions regarding the various activities. The marketing manager presents a report of the previous months activities. These meeting and reports are helpful to study, analyze and control the problems being faced by the product in the market. They will also assess the target fixed for sales and compare it with the achievements made. The department conduct studies to explore new markets and to expand the existing market. The head of the department in consultation with the managing director takes decision in connection with sales promotion activities, advertisement etc. Regional sales manager conducts meeting with this junior sales manager. In this meeting the regional sales manager gets a clean picture of the present position. Marketing manager is one who decides the marketing strategies for every major decision which effecting marketing. Marketing manager takes decision but the chief executive (MD) takes the final decision. IMK, Adoor 75
Structure Of Marketing Department
Marketing Manager
Marketing Officer
Sales Officer ( Chart No: 4.8 Marketing department structure)
COMPETITORS OF LUNAR
1. 2. 3. 4. 5.
Paragon VKC Eva Hawai. Senor chapels Rubco
The main market leader is Paragon chappals and VKC Pvt Ltd. Lunar has the third position in the Kerala market. Now the Lunar Hawai have 43% market share in Kerala..
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THE PRODUCT PROFILE According to William J Stantson, A product line is a group of products indented for essentially similar uses and processing reasonable similar characteristics. The product mix is the full list of all products offered for sales by company Hawai chappal Umbrella. School bags.
COMPANY MARKETED VARIETIES OF HAWAI CHAPPALS 1. PVC Product a) Flighter b) Aerolux 2. EVC Product a) Eltee b) Lunar lite 3. Lunar Cushion a) Cushion blue. b) Cushion beige. c) Cushion black. 4. Deluxe Hawai a) Lunar deluxe blue. b) Lunar deluxe green. c) Lunar deluxe single beige. d) Lunar deluxe black
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5. Lunar Dimple a) Lunar dimple blue. b) Lunar dimple pink. UMBRELLA Lunar Rubbers Pvt Ltd has entered in to the umbrella market in the year 1999. There are 45 varieties of umbrella differing in design (two fold and three fold) and in colour. Almost all the parts and material required for the umbrella are imported from the countries like Taiwan, Saudi Arabia. These parts are assembled in various assembly units. Lunar introduced one more variety of the umbrella in the name godfather. The peculiarity of this umbrella is that it is cane framed umbrella, which captured the full attention of umbrella market. MARKETING MIX The combination of marketing methods and programs are known as marketing mix. There are four elements in marketing mix. Product mix. Price mix. Promotion mix. Place mix.
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PRICE MIX OF LUNAR RUBBERS One of the most important and critical area in the marketing management is the pricing of products. It is the second marketing mix. Decisions of pricing have considerable effect in marketing. A wrong pricing decision can nullify the effect of all right decisions relating to the product, promotion and distribution. The price includes the cost of production and margin of profit. i. e. Lunar Rubbers Pvt Ltd cost plus or market price policy which is the best approach to pricing. PROMOTION MIX OF LUNAR RUBBERS Promotion is any Marketing effort whose function is to inform and persuade potential consumer about the availability of certain production or service with capabilities to satisfy specific human wants. to increase sales volume and publicity. PLACE MIX OF LUNAR RUBBERS Distribution channels have a vital role especially in the distribution of consumer goods. The sales of the company are done with the help of privately owned distributors. The distributor and wholesalers supply the product to various retailers and finally reach the consumer. SALES PROMOTION Sales promotion constitutes a very vital function in case of company which manufactures consumer goods and consumer durables. Sales promotion is finally intended to increase the sales. Sales promotion is a bridge or a connecting link between advertising and sales personal salesmanship. Lunar rubbers undertakes various sales promotion activities. They are: IMK, Adoor 79 Advertising, publicity and sales promotion are the part of the promotion. The goodwill of Lunar Rubbers Pvt. Ltd. helps
ADVERTISING It is the major promotional tool the American marketing association defines advertising as any paid form of non- personal presentation and promotion of ideas, goods and services by an identified sponsor. It is a form of communication. Lunar rubbers Pvt Ltd has gone for a massive advertising campaign Media of advertising are, Television, radio, boards, stickers, banner, cover and outdoor advertisement. PUBLICITY The American marketing association defines publicity as any paid form of non- paid commercially significant news or editorial comment about an idea. Products or institutons, Lunar mainly concentrating print media publicity. DEALERS PROMOTION ACTIVITIES Compliments are provided to dealers as a tool for dealer promotion. Also they conduct an annual meeting for dealers. They are also promoting customer promoting activities. DISTRIBUTION NETWORK OF THE COMPANY Channels of distribution have a vital role especially in the distribution of consumer goods. The sale of the company is done with the help of privately owned distributors. The distributors/wholesalers supplies the product to various retailers and finally reaches the consumers.
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Distribution Network of Lunar
Company
Wholesaler
Sub-Wholsaler
Retailers
Retailers
Consumers
Consumers
( Chart No: 4.9 Distribution network )
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MARKETING ACTIVITIES The various marketing activities are branding, packing, pricing & distribution Branding It is an important aspect of product planning. It involves the assignment of a brand name to the product being offered to the customer. Lunar Rubbers Pvt Ltd, enjoy a high degree of brand preference among the consumers. It is said to have high brand equity. High brand equity provides a number of competitive advantages to the company. The company reduced marketing cost because of high level consumer brand awareness and loyalty. The company has more trade leverage on bargaining with distributors and retailers. The main market leaders of Hawai chapels in Kerala are Parogon, VKC, Lunar, Rubco and Eva. These brands vary in the amount of power and value they have in the market palce. The popular brands of umbrella available are Poppy, johns, and Lunar. The main market of Lunar chappals are Kerala, Tamil Nadu, Karnataka and Maharashtra. Packing & Labeling Once the decision taken on the brand we have to consider the design and makeup of the packages. Packing is the activity of designing and producing the container or wrapper of a product Label is a part of the product. It gives the verbal information about the product and the seller. Curtains are reusable bag printed with advertisements are used for packing the Hawai chapels and umbrella manufactured by Lunar Rubbers Pvt. Ltd.
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Pricing In setting the price of the product, the company should follow the procedures given below. 1. The company should carefully establish its marketing objectives such as survival, maximum current profit, and market skimming or product quality leadership.
1.
The company determines the demand schedule, which shows the
probable
quality purchase per period at alternative price levels. The more inelastic the demand the higher the company can set its price. 2. The company establishes how its cost varies at different output levels and with
different output levels and with different level of accumulated production experience. 3. price. 4. The company selects one of the pricing methods. The company examines the competitive price as a basis for positioning its own
Markup pricing, target return pricing, perceived value pricing and sales bid pricing. 5. The Company selects its final price expressing it in the most
Effective psychological way, co-ordinating with other marketing mix elements.
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CHAPTER V SWOT ANALYSIS
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5.1 SWOT ANALYSIS

In SWOT analysis the strength, weakness, opportunities, and threats of Lunar Rubbers Pvt Ltd., Thodupuzha is analysed and noted. Strengths Third largest manufacture of Hawai chappals in Kerala. Since Lunars product are manufactured as per the strict quality guidelines, they are able to make high quality products. Easy availability of raw materials helps the company to manufacture the product at lower prices. Company has a policy of continuous improvement and innovation in the products, which enables it to maintain high market share.(43% of Kerala market). Frequent meeting between owners employees helps to build a good employer employee relationship. An ISO 9001-2000 Certified Company.
WEAKNESS No special educational qualification is considered during recruitment of factory workers. Less advertisement of lunar umbrellas Lunar umbrellas cant attract the children.
OPPORTUNITIES Since the products are used in all walks of life the company can target all type of income groups. The company can extent the market in to more foreign countries. IMK, Adoor 85
Since the company has introduced different varieties of product it help the company to enlarge its market share. Globalization of the economy has helped the company to overcome operational restrictions and to make strategic alliance.
THREATS Increasing competition due to liberalization of economy. Fast changing technology. The young generation exhibits less interest in buying Lunar foot-wears. Well designed products from other companies.
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CHAPTER VI MICHAEL. E. PORTERS FIVE FORCE ANALYSIS
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6.1 PORTERS FIVE FORCES THEORETICAL PERSPECTIVE
Introduction The model of the Five Competitive Forces was developed by Michael E. Porter in his book Competitive Strategy: Techniques for Analyzing Industries and Competitors in 1980. Since that time it has become an important tool for analyzing an organisations industry structure in strategic processes. Porters model is based on the insight that a corporate strategy should meet the opportunities and threats in the organisations external environment. Especially, competitive strategy should base on and understanding of industry structures and the way they change. Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organisation. Porters model supports analysis of the driving forces in an industry. Based on the information derived from the Five Forces Analysis, management can decide how to influence or to exploit particular characteristics of their industry. Porter's five forces include three forces from 'horizontal' competition: threat of substitute products, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers, bargaining power of customers
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The Five Competitive Forces are typically described as follows:
Bargaining Power of Suppliers
The term 'suppliers' comprises all sources for inputs that are needed in order to provide goods or services. Supplier bargaining power is likely to be high when: The market is dominated by a few large suppliers rather than a fragmented source of supply,
There are no substitutes for the particular input, The suppliers customers are fragmented, so their bargaining power is low, IMK, Adoor 89
The switching costs from one supplier to another are high, There is the possibility of the supplier integrating forwards in order to obtain higher prices and margins. This threat is especially high when
The buying industry has a higher profitability than the supplying industry, Forward integration provides economies of scale for the supplier, The buying industry has low barriers to entry. In such situations, the buying industry often faces a high pressure on margins from their suppliers. The relationship to powerful suppliers can potentially reduce strategic options for the organisation
Bargaining Power of Customers
Similarly, the bargaining power of customers determines how much customers can impose pressure on margins and volumes. Customers bargaining power is likely to be high when They buy large volumes, there is a concentration of buyers The supplying industry comprises a large number of small operators The supplying industry operates with high fixed costs, The product is undifferentiated and can be replaces by substitutes Switching to an alternative product is relatively simple and is not related to high costs Customers have low margins and are price-sensitive IMK, Adoor 90
Customers could produce the product themselves The product is not of strategically importance for the customer The customer knows about the production costs of the product There is the possibility for the customer integrating backwards. Threat of New Entrants
The competition in an industry will be the higher, the easier it is for other companies to enter this industry. In such a situation, new entrants could change major determinants of the market environment (e.g. market shares, prices, customer loyalty) at any time. There is always a latent pressure for reaction and adjustment for existing players in this industry. The threat of new entries will depend on the extent to which there are barriers to entry. These are typically Economies of scale (minimum size requirements for profitable operations) High initial investments and fixed costs Cost advantages of existing players due to experience curve effects of operation with fully depreciated assets Brand loyalty of customers Protected intellectual property like patents, licenses etc. Scarcity of important resources, e.g. qualified expert staff Access to raw materials is controlled by existing players, IMK, Adoor 91
Distribution channels are controlled by existing players Existing players have close customer relations, e.g. from long-term service contracts
High switching costs for customers Legislation and government action Threat of Substitutes
A threat from substitutes exists if there are alternative products with lower prices of better performance parameters for the same purpose. They could potentially attract a significant proportion of market volume and hence reduce the potential sales volume for existing players. This category also relates to complementary products. Similarly to the threat of new entrants, the treat of substitutes is determined by factors like Brand loyalty of customers Close customer relationships Switching costs for customers The relative price for performance of substitutes Current trends
5 Competitive Rivalries between Existing Players This force describes the intensity of competition between existing players (companies) in an industry. High competitive pressure results in pressure on prices, margins and, hence, profitability for every single company in the industry. IMK, Adoor 92
Competition between existing players is likely to be high when There are many players of about the same size Players have similar strategies There is not much differentiation between players and their products; hence, there is much price competition Low market growth rates (growth of a particular company is possible only at the expense of a competitor) Barriers for exit are high (e.g. expensive and highly specialized equipment
6.2 HOW FIVE FORCE AFFECT LUNAR RUBBERS PVT LTD 1. Bargaining power of suppliers The main raw material used for the production in Lunar is rubber. It is of two type natural rubber and synthetic rubber. These are widely available in Kerala market itself. Company collect rubber from Idukki, Kottayam, Pathanamthitta , Wayanad districts.. Other raw materials like clay, pigments and colours are also cheaply available. The bargaining power of suppliers on Lunar Pvt Ltd is not so much prominent because IMK, Adoor 93
There are number of suppliers. Raw materials are cheaply available. Switching cost from one supplier to another is low. There are enormous fragmented source of supply. Forward integration of supplier is difficult.
2. Bargaining power of customers Bargaining power of customers is of very high while considering Lunar Rubbers Pvt Ltd. This is because of following reasons The main competitors of Lunar Rubbers Pvt Ltd are producing same type of products exactly of Lunars. So the switching cost of customer from one brand to another is very low. It increases their bargaining power. Lunars products are in a price range which will mostly purchased by the people who are highly price sensitive. In footwear, bag. Umbrella industries customers know the production cost of the products. it increases the bargaining power of suppliers. There are local producers in umbrella and bag industries. So the company can not increase the price from certain level. 3. Threat of new entrants Threat of new entrants in footwear industry is very high because The footwear industry need high initial investment and fixed cost. Customers are brand oriented. Protected intellectual property like patents, licenses etc- for example Lunar uses TWT (two way thread) technology, Paragon produces footwear for diabetic patients. IMK, Adoor 94
Distribution channels are controlled by existing players. The companies like VKC, paragon, lunar, have a long history in footwear industry. So they have a close customer relationship.
4. Threat of substitutes This force has a predominant effect on Lunar rubbers Pvt Ltd because of following reasons Eventhough Lunar have brand-equity, its products have close substitutes in the industry. So the switching cost for the customer is very low. For example, in case of footwear products, Paragon, VKC, Eva , Senor , Rubco have similar products as Lunar. In case of umbrella industry Popy, Johns, Colombo, are producing very close products. The products like shoe, Canvas, sandals are likely to be close substitute for Lunar chappals. Different kinds of footwears by the result of new trends in footwear industry is also a threat.
5. Competitive Rivalry between Existing Players The footwear industry is highly competitive in Kerala because more than five companies are actively involving in footwear production. They are 1. Paragon 2. VKC 3. Lunar 4. Senor 5. Eva 6. Rubco IMK, Adoor 95
These companies have almost similar strategies There is not much differentiation between players and their products, hence, there is much price competition
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CHAPTER VII FINDINGS AND SUGGESTIONS
7.1 FINDINGS In Lunar Rubbers Pvt Ltd., there is no separate department which deals with management information system. The concept of modern MIS is not yet introduced in Lunar Rubbers Lunar Rubbers Ltd Company gives more importance to the quality of the product The major part of the income is contributed by the Lunar Hawai chappals IMK, Adoor 97
Sales and distribution strategies are comfortable Workers are almost satisfied In case of umbrellas even though it is of high quality than its competitors it is lagging behind in sales, due to its poor advertisement techniques Lunar umbrellas cant attract the children No special education qualification is considered during recruitment of factory workers
7.2 SUGGESTIONS Better media planning with more concentration on television is necessary. Make advertisement with changing trends and preference of the consumers. Lunar shall provide sales promotional schemes to attract ore domestic customers. Technology up gradation shall be done in the production process and in the cutting unit. Measures shall be taken to promote personal selling through dealer incentives. Recruit educationally qualified workers. Facilitate department with management information system.
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CHAPTER VIII CONCLUSION
8.1CONCLUSION
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Lunar is a name that stands for quality Hawai footwear. This company is mainly producing Hawai chappals and umbrellas. Lunar products are manufactured as per strict quality guidelines. The commitment and efficiency of employees helped Lunar products to capture the highly competitive market. Product quality enables the organisation to get prominent place among the competitors. When analyzed various departments we can understand the dedicated employees are the key factor in Lunars success. The long vision of management helped to win the competitive market. The marketing strategies and financial decisions are sufficient to capture the market and lunar have production unit. The company is now progressing full automation to keep in pace with the expansion programme for servicing the escalating domestic & international demands
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BIBILIOGRAPHY Books 1. Aswathappa K. 1999, Human Resource & Personnel Management Tata McGraw Hill Publishing Co. Ltd. 2. Kothari C.R. 2004, Research Methodology Methods&Techniques New Age International Publishers. 3. Kotler Philip 2002, Marketing Management Prentice Hall of India Pvt. Ltd.,
Websites: 1. www.lunars.com 2. www.google.com
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Report on organisation study at Lunar Rubbers Pvt.

Report on organisation study at Lunar Rubbers Pvt. Ltd

Report on organisation study at Lunar Rubbers Pvt. Ltd

Report on organisation study at Lunar Rubbers Pvt. Ltd

Report on organisation study at Lunar Rubbers Pvt. Ltd

Company booklets Organisational website Annual report

Report on organisation study at Lunar Rubbers Pvt. Ltd

Report on organisation study at Lunar Rubbers Pvt. Ltd

CHAPTER 4 CHAPTER 5 CHAPTER 6 CHAPTER 7 CHAPTER 8

Report on organisation study at Lunar Rubbers Pvt. Ltd

CHAPTER II INDUSTRY PROFILE

Report on organisation study at Lunar Rubbers Pvt. Ltd

Report on organisation study at Lunar Rubbers Pvt. Ltd

Report on organisation study at Lunar Rubbers Pvt. Ltd

Report on organisation study at Lunar Rubbers Pvt. Ltd

Report on organisation study at Lunar Rubbers Pvt. Ltd

Report on organisation study at Lunar Rubbers Pvt. Ltd

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Report on organisation study at Lunar Rubbers Pvt. Ltd

2.5 STATE SCENARIO

Report on organisation study at Lunar Rubbers Pvt. Ltd

CHAPTER III COMPANY PROFILE

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Report on organisation study at Lunar Rubbers Pvt. Ltd

Lunar Hawai chapels

Lunar school bags & shoes

LUNAR UMBRELLA a) Kids umbrella IMK, Adoor 23

Report on organisation study at Lunar Rubbers Pvt. Ltd

Report on organisation study at Lunar Rubbers Pvt. Ltd

Report on organisation study at Lunar Rubbers Pvt. Ltd

Report on organisation study at Lunar Rubbers Pvt. Ltd

Managing Director General Manager Asst. Gene. Manager

Finance Manager Fin. & Acc.

Marketing Manager Marketing Manager

HR Manager Asst. HR Manager

Works Manager Executive Officer Officer

Acc. Off.2 Junior Acc. Clerk Marketing Officer Sales Officer

Junior Acc. Clerk

Mechanics Plumbers Electricians .

Junior Officer Senior Assistant Office Assistant Clerk

(Chart No 3.2 organizational structure)

Report on organisation study at Lunar Rubbers Pvt. Ltd

Report on organisation study at Lunar Rubbers Pvt. Ltd

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Report on organisation study at Lunar Rubbers Pvt. Ltd

Payment approval. Approval of all policy matters.

Report on organisation study at Lunar Rubbers Pvt. Ltd

Report on organisation study at Lunar Rubbers Pvt. Ltd

Report on organisation study at Lunar Rubbers Pvt. Ltd

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CHAPTER IV DEPARTMENTS & ITS FUNCTIONS

Report on organisation study at Lunar Rubbers Pvt. Ltd

HUMAN RESOURCE DEPARTMENT

Report on organisation study at Lunar Rubbers Pvt. Ltd