A SOFT SKILL INTERNSHIP REPORT ON THE VENDORS MANAGEMENT OF THE KUMAR SPINNING MILLS Submitted by S.RAJESH (Reg.

No: MA10482) Under the guidance of Mr.G. SHANMUGA RAMAN M.B.A., M.Phil., (Ph.D) Submitted in partial fulfilment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION

UNIVERSITY OF MADRAS DEPARTMENT OF BUSINESS ADMINISTRATION ST. MARYS SCHOOL OF MANAGEMENT STUDIES JEPPIAAR EDUCATIONAL TRUST JEPPIAAR NAGAR, RAJIV GANDHI ROAD, CHENNAI 600 119. JULY 2012

St.Marys School of Management Studies Jeppiaar Educational Trust Jeppiaar Nagar, Old Mamallapuram Road, Chennai 600 119.

Department of Business Administration

Bonafide Certificate
This is certifying that the report is Bonafide work of S.RAJESH (Register No.MA10482) who carried out the project work under our supervision during the year.

Project Guide

Head of Department

Principal

Submitted for the viva-voce Examination held on

INTERNAL EXAMINER

EXTERNAL EXAMINER

DECLARATION

I am, a bonafide student of Department of Business Administration, St.Marys School of Management Studies, Jeppiaar Educational Trust, Jeppiaar Nagar, Old Mamallapuram Road, Chennai- 600 119, would like to declare that the project entitled A SOFT SKILL INTERNSHIP REPORT ON THE VENDORS MANAGEMENT OF THE KUMAR SPINNING MILLS in partial fulfillment of the requirements for the MBA Degree of the University of Madras is my original work.

Place: S.RAJESH Date: (Reg.No.MA10482)

Acknowledgement
First and foremost, I thank the ALMIGHTY, who makes his presence in all ways of my life, for giving me the strength and willpower to complete the project work in a successful manner. My Sincere thanks to our Honorable Founder & Chairman Col. Dr.JEPPIAAR. M.A., B.L., Ph.D., his blessings.

I would like to express my deep sense of gratitude to our beloved Secretary & Correspondent Dr.P.Chinnadurai M.B.A., M.Phil., Ph.D.,

I would like to express my gratitude to our beloved Directors Thiru.Marie JohnsonB.E. M.B.A.,M.Phil., (Ph.D)., and Thirumathi. Mariazeena Johnson, B.E., M.B.A., M.Phil, (Ph.D) for their continuous support.

I would like to thank our Principal Dr. A.Christy MCA., Ph.D., and our Head of the Department Dr. N. Kannan M.B.A, P.G.D.C.A, M.Phil, Ph.D, for giving necessary support and encouragement during this project.

I would like to extend my sincere thanks to my guide Mr.G.SHANMUGA RAMAN M.B.A., M.Phil., (Ph.D) for his/her support and guidance in completing my research on time. I would like to place my graceful thanks to Mr.K.Balan for helping me in doing the project their organization and providing me with necessary information in completing my project.

I am also thankful to our librarian Mr.M.Johnson for his support in providing the necessary books and journals for my Project.

I would also thank my Institution and my faculty members. I also extend my heartfelt thanks to my family members for their moral support.

CONTENTS

Chapter no 1 2 3 4 5 6 7 8

Title Introduction Company profile Organizational chart Product profile Objectives Methodology Vendors management Conclusion

Page no 6 15 16 19 30 30 31 50

INTRODUCTION 1.1INTRODUCTION TO THE TOPIC

Spinning is an ancient textile art inn which plant, animal, or synthetic are twisted together to form yarn. For 1000years fiber was spun by hand using simple wheel increase the output of individual spinners, and mass-production only arose in the 18th century with the beginning of the industrial revolution. Hand-spinning remaining a popular handy craft, Characteristics of spun yarn vary based on the material used, fiber length and alignment, quality of fiber used and degree of twist. Spinning is the process of drawing out and twisting fibers to join them firmly together in a continuous thread or yarn. Spinning is an indispensable preliminary to waving cloth from those fibers that do not have extreme length. From easily times through the Middle Ages distaff was a stick on which the mass of fibers was fastened to the weighted spindle, which hangs free. The spinners whirled the spindles causing it to twist the fibber as it was drawn from the distaff. As a length was drawn out the operation was halted, the new yarn wound on the spindle and secured by a notch, and the operation regretted. In modern spinning, originally done by water or stream power but now do by water or stream power but now done by electricity, is vastly faster than hand spinning. In the 20th century, new technologies including open end spinning or rotor spinning were invented to produce yarns at rates in excess of 40meters per second. In this spinning, silvers or rovings are fed into machines with rollers that draw out the strangles making them longer and thinner, and spindles that insert the amount twist determines the strength of the yarn, although too much twist may eventually cause weakening and breakage. When the spirals formed by twisted yarns are similar in slope to the central portion of the letter Z, the yarns are described as Z- twist; when the spirals confirm in direction to the central portion of the letter S, the yarns are described as S-twist. Crepe yarns producing a crinkled effect in fabrics are made with a very high degree of twist, producing a hank, the spinning process is completed by winding the yarn on spools or bobbins.
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A spindle containing a quality of yarn rotates more easily, steadily and continuous longer than an empty on hence the next improvement was the additions of a weight called a spindles whorl at the bottom of the spindle. These whorls are dices of wood, stone, clay or metal with a hole in the center for thee spindle which keep the spindle steadily and promote its rotation. Kumar spinning mills (P) LTD has been started at the year of 1990. It is located at Krishnapuram on the way to thiruchendur just 6km from palayamkottai. The total area of this mills premise is 15 acres, only 30% of the area is utilized for thee machinery, building, remaining areas are utilized for plantation of trees. Trees like teak, mango, neem, coconut, and Alma etc. The mill is situated at papakulam village, which is surrounded by many villages viz, Krishnapuram, seithunganallur, Arokanathapuram, Aachhimadam, V.M.Chatram, where the unit get labours. The organization is giving most important for the environment protection. The production process and management of this Kumar spinning mills is properly managed by popular 5-S principles, a JAPANESE TECHNIQUE used for continuous process improvement in the production.

1.2 GROWTH
India is now a fast emerging market inching to reach half a billion middle income population by 2030. All these factors are good for the Indian textile industry in a long run. Even though the global economic crisis seems to be worsening day-by-day, as long as economies are emerging and growing as those in South and South East Asia, textile industry is here to grow provided it takes competition and innovation seriously. Read below to have an insight of the stand of the Indian Textile Industry in the economy. The Indian Textiles Industry has an overwhelming presence in the economic life of the country. Under 11th Five Year Plan (FYP) it was projected to accelerate to a growth rate of 16 per cent in value and should reach the value of USD 115 billion (exports USD 55 billion and domestic market USD 60 billion) by 2012. Exports are likely to reach USD 32 billion in 2011-12 and domestic market USD 55 billion.

The domestic textile industry comprises of 1608 spinning mills and 200 composite mills, with an installed capacity of 43.27 million spindles (of which 33.25 million spindles are in operation), 523,000 Open End Rotors (of which 384612 are operational) and 52,000 looms (of which only 14500 are under operations) in the organized sector along with another 1219 small scale spinning units with 4.89 million spindles and about 242023 Rotors in the small scale decentralized sector. Globally, cotton prices have spurred up in the cotton 2010/11, thanks to the upsurge in demand from the leading consumers and exports. In India prices of leading variety of cotton Shankar 6A shot up 61 per cent from Rs 104 per Kg in September 10 to Rs 168 per kg in March 11. This sharp increase in the cotton prices has easily passed on by the spinning sector due to lower inventories and pent up demand till March 11. However since then demands eased both globally and domestically, as the downstream players were unable to pass on the sudden sharp rise in the raw material prices. With the dip in demand cotton prices witnessed free fall from the March 11 levels.

In just two months, cotton prices fell sharply 22 per cent to Rs 117 per Kg in May. Resultantly, spinners have piled up inventory at higher cotton prices and with sudden drop in demand; they have to undertake huge losses on higher value of inventory. With subdued demand cotton prices further eased to Rs 100 per kg in August 11. In the current new cotton season

2011/12 the cotton prices remained lower as the demand sentiments in the domestic market have not picked up. In the beginning of March 11, DGFT has notified ban on cotton exports with immediate effect on 5 March 12. The cotton exports registrations stood at around 120 lakh bales as on 5 March 12 and thus the exportable surplus registered but not yet shipped was to the tune of 24 lakh bales. As on 4 March 12, cotton arrivals are to the tune of 233.76 lakh bales leading, nearly 50 per cent of arrivals booked for exports. CAB estimated the cotton crop to be flat at 340 lakh bales and domestic consumption to decline by 8 per cent to 250 lakh bales in CY11/12.

After the representations from all the leading cotton producing state governments on the price, the Government has took off ban on cotton exports and notified that "Exports orders already registered with DGFT so far but not yet exported will be expeditiously scrutinized to ensure that their papers are in order and revalidated". Sharp volatility in the commodity prices has dented the competitiveness of the industry in FY12. While huge cotton price and spike in interest rates dumped the spinning industry in to losses in H1FY12, spike in the raw material prices and levy of 10 per cent excise duty on branded garments have dented the consumer sentiment amidst increasing interest rate cycle for the garment industry. Further, the recent concession of custom duty free import given to Bangladesh and Nepal, apart from Bhutan and Maldives is adding pressure to the garment industry in India.

However, RBI has rejected proposal of Textile Ministry to restructure around Rs 1, 00,000 crore either by extension of moratorium period etc. According to the available statistics, total outstanding loans to textile industry by banking industry amounts to Rs 1,54,480 crore at end of January 11.

In this background list of textile related associations namely, Confederation of Indian Textile Industry, Federation of All India Textile Manufacturers' Association (FAITMA), Southern India Mills Association (SIMA) and Indian June Mills Association (IJMA) have appealed Government to consider the following requests ahead of Union Budget In 1990 the mill has started with 3000 spindles. In the early stage the yarn product was used for bet sheet & towels. The count of yarn spun were 20s, 30s, 2/20s, NE. The turnover of the company was around Rs.2, 00, 00,000 per annum. No.of. labours employed were 70.
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In 1995 the mill was expanded the spindles with 3000 and the total spindles was 6000. The count of yarn spun were 20s, 30s, 40s, 2/20s, NE. the turnover of the company was around Rs.5, 00, 00,000 per annum. The quality of yarn was improved from weft to warp. The no. of labours employed was 120. In 2000 the mill was expanded the spindles with 4000 and the total spindles was 10,000. The count of yarn spun were 20s, 30s, 40s, NE. the turnover of the company was around Rs.10,

00, 00,000 per annum. The quality of yarn was improved from weft to warp to hoister. The no.of. Labours employed was 200. The management gave most important to quality and the exported 30% of the product to foreign countries. In 2003 the mill was expanded the Spindles up to 12,000 with latest machineries imported from foreign countries. The count of yarn spun were 20s, 30s, 40s, 52s, NE. The turnover of the company was around Rs.12, 00, 00,000 per annum. The quality of yarn was improved from warp to hoister. No.of. labours employed were 250. In 2005 the mill has expanded the Spindles up to 15,000 with latest machineries from leading machineries manufacturers. From, Reiter draw frame model D35 from M/S Reiter machine works, Germany. Lakshmi Ring Frame LR 6/s from M/S Lakshmi machine works, Coimbatore.

1.3 PRESENT STATUS AND RECENT DEVEVELOPMENT

A general impression I get talking to the Indian textile industry leaders in the past few days make me understand that the industry is in a pinch. Why so? These are the reasons:
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 Global recession Less export orders due to reductions in inventories by global retail giants like Wal-Mart Price of raw materials like cottons and Infrastructure bottlenecks such as power, particularly in Tamil Nadu. It has been recently reported that textile exports in 2009-10 period will be equal or could be even lower than the one achieved in 2008-09. In this global financial meltdown situation, what should the Indian textile industry do? In the times of adversity, it is an immediate task for all stake holders to pause for a moment and take stock of the difficulties and chart plans for sustainability and growth of the Indian textile industry. Textile Industry has reported faded performance in the nine months ended December 11 mainly on the back of sharp fall in the cotton cost and heavy inventories at higher rates and dampened demand. The MMF industry has also faced the wrath thanks to the spike in the raw material prices. As against global trend of MMF constituting more than 60 per cent of world consumption; MMF in India accounts for around 40 per cent of the fiber consumption. However, with the spike in the cotton prices, the industry is slowly shifting towards the MMF yarn or blended yarn. Excise duty cut on all the fibers to 4 per cent will bring level field for the domestic textile Industry. Also, the cost of production in India is relatively higher than frontline players like China, Bangladesh etc., partly due to higher power and labor costs. This can be partly addressed if excise and customs duty on liquid fuels are removed / reduced. Further, cut in the customs duty on the textile machinery will also shift the industry to new technology machines and encourage capes facilitated by TUFS.

The sharp spike in the cotton cost last year has dented the demand across the sectors of textile industry in FY12. Partial roll back of cotton exports may drag ending stocks down by 68 per cent can put upward pressure on the prices. However, the domestic prices are not factoring this effect and continue to ease. Thus, despite conducive cotton prices in the current market, what the industry is missing at this juncture is "demand". Revival in domestic demand is need of the hour which can help the textile industry when the global countries are witnessing a slowdown. Recently the mill has installed fully automatic winding No.21c process corner manufactured by muratu machinery, Japan. The cost of this machine is around Rs.1, 50, 00,000. 50% of the
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production of yarn exported to foreign countries. The turnover of the company was around Rs.15, 00, 00,000. No of workers employed were 300.

1.4 EXPECTATIONS
As the saying goes in the financial sector, it is not advisable to put all eggs in one basket. This is what happened somewhat in the case of the Indian textile industry. With the opening of world markets and the abolition of textile quotas since 2005, there came a negative situation as well. But, hindsight is always 20-20. Indian textile industry should have focused on all major sectors right from fiber to fashion and planned for an organized growth across the supply chain so as to compete with China and even countries such as Pakistan, Vietnam and Thailand. Instead, the industry had put majority of its stock in the spinning sector. This is clearly evident in the utilization of Technology Up gradation Fund Scheme effectively by the spinning sector. Although it is a positive outcome, in my opinion, the industry turned a blind eye on value-adding sectors such as weaving and finishing. Indian power loom sector, which enables value-addition is a highly unorganized industry and needs major up gradation. Not only India does not have world quality indigenous shuttle less looms, but also investments are not adequate to cope with the quality and quantity to cater to the export market. Technical textiles sector is still in its infancy and a tangible growth will be highly visible by 2035 when the growth in this sector will be exponential. Is there a panacea to the complexities surrounding the India Textile Industry? The weak links in the Indian conventional industry such as weaving and finishing have to be strengthened. A major thrust here is to have consolidated efforts by Indian Textile Machinery Manufacturers Association, end-users and the Government to undertake a moon shot and comeup with alternatives to European Machinery, which the weaving sector can afford. This should be doable within the next five years, if dedicated efforts are undertaken with the financial support for R & D by the Government through its various schemes; Forward in the non-commodity textile sector, i.e. technical textiles sector from a noncrawling phase to at least a crawling industry in the next three years. General awareness on nonwoven and technical sectors has been created with the recent marathon training workshops
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and conferences such as, "Advances in Textiles, Nonwoven and Technical Textiles", organized for the past five years in Coimbatore by Texas Tech University, USA and those such as the Excellence and IIT's Technical Textiles conferences. These have put India on the international map in technical textiles. These conferences are of less use if they do not translate into investments and new projects. This aspect has been slow. Why is it so? Although the awareness on the broad-based technology know-how and end products has been created, less to no awareness has been created among industrialists on the marketability of non-commodity textile products. Quality Control is not confined to laboratory operations, but must be involved in all decisions which may concern the quality of the product. The independence Changes are taking place very fast all over the world in all fields like, technological developments, the living styles, social environment, and the perception of people. In this changing scenario, rising expectations of the customer and open market economics are forcing businesses to compete with each other. Therefore, basic quality of the product at competitive market price is a key factor. The same holds good for Textile industry also which is one of the oldest and has a number of players all over the world. When it comes to Textile, Spinning is the key process which has been given vital importance because many of the fabric properties, working of weaving machines and weaving preparatory machines are dependent on yarn quality. The quality of yarn produced should conform to the quality norms specified by the customer. It is equally important that this should be achieved without making any compromise in productivity, which otherwise affects the yarn costing. Quality Control is concerned with sampling, specifications and testing as well as the organization, documentation and release procedures of Quality Control from Production is considered fundamental to the satisfactory operation of Quality Control. Generally, Quality Control or Quality Assurance department is isolated from production and maintenance; it is assumed that quality is responsibility of Quality Control department. The Quality Control Department as a whole will also have other duties, such as to establish, validate and implement all quality control procedures, keep the reference samples of materials and products, ensure the correct labeling of containers of materials and products, ensure the monitoring of the stability of the products, participate in the investigation of complaints related to the quality of the product, etc. All these operations should be carried out in accordance with written procedures and, where necessary, recorded. Here an attempt is made to design the structure of Research and Development for spinning mills. To survive in competitive
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market

and

work

more

effectively

this

new

structure

may

help

lot.

Almost all the associations have requested for the extension of TUFS scheme for the 12th five year plan (starting FY13-17). TUFS was introduced in 1999 to catalyze investments in all the sub-sectors of textiles and jute industry by way of 5 per cent interest reimbursement. Since its inception, Rs.11196 crore of subsidy has been released till FY11 of which Rs. 8883 crore.

Thus, TUFS has catalyzed investments of Rs 2.08 lakh crore during its operational life span of over 11 years. However in April 11, the Government has launched restructured TUFS with an overall subsidy of Rs 1972 crore till end of FY12. This subsidy is expected to leverage an investment of Rs.46900 crore, with sectarian investment shares of 26 per cent for spinning, 13 per cent for weaving, 21 per cent for processing, 8 per cent for garmenting and 32 per cent for others. According to the National Fiber Policy report, India requires around Rs 188000 crore of capes in Textile industry to keep up the demand during 2011-2020. Thus, encouraging capacity addition of weaving and garmenting sector will help to strengthen the loose links of the domestic textile industry and also improve cash flows.

Also "Neutral Fiber Policy" will help to give a level playing ground for MMF sector in a cotton dominated textile industry. Further, cut in the excise duty on branded apparels will also help in decreasing MRP of apparel and boost the demand. The textile industry in INDIA (including the garments industries) is vital to the economy of the country. It contributes to 6% of the GDP of the INDIA and earns 18% of the total Foreign exchange earnings of the Country. The Indian consumption requires 39million spindles. Whereas at present there are only 33 to 34million spindles running. The recent reports state that the fabric requirement will be more in the year to come. In sectors such as spinning where control was dismantled first, Indian companies have become amount the most competitive in the world export of cotton yarn. The restrictive industrial policy followed by successive government changes over the decades has created an industry that is largely fragmented and dominated by SSES. However in the last 12 to 15 years, Government has steadily removed the restrictions.
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2.4COMPANY PROFILE
Kumar spinning mills (P) LTD has been started at the year of 1990. It is located at Krishnapuram on the way to thiruchendur just 6km from palayamkottai. The total area of this mills premise is 15 acres, only 30% of the area is utilized for thee machinery, building, remaining areas are utilized for plantation of trees. Trees like teak, mango, neem, coconut, and Alma etc. The mill is situated at papakulam village, which is surrounded by many villages viz, Krishnapuram, seithunganallur, Arokanathapuram, Aachhimadam, V.M.Chatram, where the unit get labours. The organization is giving most important for the environment protection. The production process and management of this Kumar spinning mills is properly managed by popular 5-S principles, a JAPANESE TECHNIQUE used for continuous process improvement in the production. Year of commencement Managing Director Directors : : : 1990 Mr.K.Balan. Mr.B.Jayakumar Gopi. Mr.B.Arul selvaraj. Mr.B.Dhana sighs. Mrs.B.Dhanaganamani. Mr.S.Ramachandran. Area Production manager Products Share capital Registered Office : : : : : 15 acres. Mr.Govindraj. Reeling yarn & Cone yarn. 174 Lakhs. 19, Pandia Vellalar Street,
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Palayamkottai, Nellai District 627002. Company Office : Thiruchendur Road, Krishnapuram, Nellai 627011.

MANAGING DIRECTOR

JOINED DIRECTOR

MANAGING

MANAGER

STORES

MAINTENANCE

SUPERVISORS

QUALITY CONTROL

MESTHRIS

MECHANICS

MACHINE OPERATOR

VISION
Satisfies the customers needs and demands by the ways of promoting a high quality of cottons are available in the markets.

MISSION
To increase the volume of profits by reducing the wastages in the production process as much as possible.

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Kumar spinning mills (P) ltd has been started at the year of 1990.

It is located at

Krishnapuram on the way to Thiruchendur just 6 kms from Palayamkottai. The total area of this mills premises is 15 acres, only 30% of the area is utilized for the machinery, building, remaining areas are utilized for plantation of trees, Trees like Teak, Mango, Neem, Coconut and other trees are planted and well maintained in a superior manner. The Organization gives more important to its Environment protection and it is Maintenance. The raw materials required for this industry is quality cotton with a stable length of about 29mn and above and fiber fiends of 3 to 5 micro grans per inch, with 2 to 4 percent of trash. The company uses different varieties of cotton; these kinds of cottons are available in Punjab, Maharashtra, Andhra Pradesh, Gujarat, Karnataka, and Tamil Nadu. From inter states only 10% of cottons are consumed and 75% of cotton from up countries and balance from abroad particularly in West Africa. World No. One cotton producer is China & India ranks 2.

RESEARCH AND DEVELOPMENT

This R&D Project based upon Spin Plan, Spin Matrix and Card Fiber Transfer Test Pcprograms to improve quality and production volumes from card/comber to ring/rotor frames. In order to improve yarn quality and increase production volumes at each stage of processing line Quality Improvement Tests should be carried out in spinning mills. However, there are many technical parameters so to be tested in order to optimize the test plan and test results. The usual procedure is to follow "change one parameter and follow the result up to yarn. This procedure is time consuming and based upon trial and error method. We have developed Knowledge Based Pc-Programs to identify the key parameters that actually affect the yarn quality and Spinning Performance Index. Hence at one Test these key parameters are changed to optimize the spinning process. Therefore, contribution of these key parameters upon yarn quality could be analyzed by Spin Matrix Pc-Program and time consuming change one-parameter at a time test system is avoided. This is new conception in Test Method and results were analyzed by Variance Analyses and Spec-Techniques provided by Tire Group Ltd. Therefore with this new system of quality, production improvement tests are carried out in a short time and more quantitative results gathered to improve spinning processing line.
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Spin Plan veer PC-program is for use on IBM-compatible PCs to compute important fiber parameters, index of irregularity at each stage of processing, curves for short fiber content percentage, mean fiber length for leading and trailing hooks and drawing actual and optimum. DRAFT CURVE through" Knowledge Based Problem Analyses and Problem Solving Techniques" developed by ITRU GROUP LTD to assist to Spin Plan R&D Project.

Purpose of the program and R&D Project

Spin Plan by Intro Group Ltd. Program has been developed through many years of research and experience carried out in spinning mills. This program makes use of the fibro gram & evenness tester instruments to be more valuable to the spinning mills by determining short fiber content by fiber number, mean fiber length, index of irregularity, draft curve.

PRODUCT PROFILE
Kumar spinning mills private limited, company main product is yarn only. This yarn will be used for weaving clothes. And so it is not a customer product, it is an industrial product. Hank Yarn Cone Yarn HANK YARN Hank Yarn is used for handlooms production of silk sarees, cotton sarees, etc.

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CONE YARN Cone Yarn is used for weaving clothes. It is a material of cloth production.

DETAILS OF PRODUCTION PROCESS The spinning mills carries out many process, which transform bales of raw materials into a finished Yarn ready for weaving. The term SPINNING is refers to the whole activity or just to the final process of making the Yarn. In spinning mill sector the following are the production processes are available. MIXING In spinning mill production the first process is done on the mixing room. In this department the collection or purchased cotton will be gathered in a room, and the chemical and water will be spread over the cotton before entering the machine. The mixing room doing the function of cleaning the cotton and clear the cotton and dusts. Before entering the cotton to the machine the labours are mixing the cotton because all the cottons are not get a same quality. The human identity the dust and seeds are clear at this department.

BLOW ROOM The Blow Room is the second stage of cotton production. In this blow room the cotton will be get a form of cylinder. After the cotton sending the machine and the balanced seeds, dusts will be cleaned by the machines. Sensitive quality section and the wastages are separately divided and send through the wastages box. More over 80% of the dust and seeds are clear at this blow room department. The cylinder weights are changing of the yarn count. Normally, the weights are at 15kg to 22.5kg. The average weight of 40s count cylinder cotton is 17kg. They are allowing 200 grams. The quality department workers are fixing the weight of the cylinder. The labours are checking every cylinder in individually by separate weigh machines.
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CARDING This department is the Heart of the mills. This department function is converting the cylinder type cotton into silver form. The carding department main function is clearing the cotton. The machines are having brushes, which brushes are clean the cotton and clear the dust and cotton seeds completely. The cotton will be getting a polish at this department. The silver form of cotton lap is store into the plastic cans, and it send to the next departments have enough number of machines but the power consumption of government policy the 60% of machines are only used. Others are stopped after the power cut crisis. COMBING In this department 20, 24 carding silver will be converted into one silver lap. The main function is to making a strong and clarity of yarn at this department. The combing department helps to increasing the evenness. The combing department combed the cotton at this stage. DRAWING The drawing departments converts the hanks of 6 carding silver or 8 into create single silver. The hank of unevenness is decreased. Parallelization and quality drawing silver was created. The drawing department machines having a digital board, that display the current hank count bale meter, estimated time and automatically changed next drum when the current one is complete. The machine capacity is producing 200 meter to 500 meter yarn per minute. SIMPLEX The drawing department the hank will be received by the simplex department. Simplex departments are used to increase the yarn quality and strength. In this department is otherwise called as pre-spinning department. Here the cotton is converted into bobbins at this department. The bobbin colors are red, yellow and ash. The hank with bobbins weight is 1kg to 1.5kg each. SPINNING Spinning is the final process of converting cotton fibers into yarn. In this spinning

department the roving yarn will be more thinned at this section. Before the simplex department we called the cotton name as HANK, but at the stage of entering the hank into the spinning
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department is called as YARN. The spinning department is having 15000 spindles, which helps to making yarn production. The spinning department concerts the big bobbins hank into small bobbin is 50 to 55 grams only. The spinning department is converting the 1000 meter hank in to 2600 meter yarn. CONE WINDING Cone winding department it is a department of this spinning mill. In this department is doing to winding the yarn into cone form. The department having the following types of machines which helps to create different types of customer wanted yarn production. Ordinary winder with mechanical slab catcher. Cone winding with electronic yarn cleaner and splicer. Auto cone winding machines. REELING Reeling department helps to create a reeling yarn using for handloom production that is silk saris, cotton saris, and the handloom production. It is the raw material of that production. The reeling department having 15 machines but they using 12 machines only.

The following types of reeling are available that is, Single hank Plain Reel (SHPR) Double hank Plain Reel (DHPR) Double hank cross Reel (DHCR

Importance of Processing Organization for Optimum Quality of Yarn

The optimum processing Organization would depend upon mainly two factors: Fiber Data
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 Spinning Data Type of yarn manufacturing process Yarn Count Turns per cm Fiber Data should be selected in accordance with Spinning Data for achieving optimum yarn quality with minimum manufacturing costs for this purpose we have <<FIBRE MIX SELECTION & CONTROL PC-PROGRAMS>>. Therefore, processing Organization should be compatible with Fiber Data and Spinning Data. Second point is to have optimum process. According to organization the existing raw material mix in the mill is a good one for the improvement of the firm. According our experience carried out in different spinning mills having similar fiber data and spinning data would lead to have different quality of yarn parameters due to different processing Organization. Processing Organization consists of mainly draft Organization, which includes number of doubling, count fed, ratch setting distances etc. The usual procedure is to make a trial tests at each stage of processing and follow it up to yarn. However, this is rather tiresome and could also be influenced by the changes in raw material mix. Therefore, one has to decide required yarn quality parameters mainly evenness of mass and strength. For example if one needs 12 CV% in yarn evenness then this program determines the required CV% values in prior processes in order to achieve target CV% value in yarn. The CV% values in carding, drawing and roving should not be high and too low but in accordance with the draft curve. This assumptions made by us prove experimental works carried out in draw frames in many mills that low CV% values would lead high CV% values in yarn. But manufacturing of a yarn with accordance with the draft curve one could see the required CV% value at each stage of processing.

Importance of Draft Curve and Draft Angle

It is clear from our research work in many spinning mills that ratch setting distances and draft geometry are determined by two conceptions: If the fibers move in tufts than sliver extension theory

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If the fibers are parallel then fibers-extension theory. Combination of both case A and case B. We have also found that setting of ratch distances according to our MASS SPECTROGRAM PC-PROGRAM is very effective. MASS SPECTROGRAM PC-PROGRAM draws the actual spectrogram curve according to given fiber properties and CV% of sliver. By comparison of these two curves we could determine the drafting waves, fiber breakage and optimum ratch setting distances and break draft ratios. On the other hand Draft curve is a sign of complete spinning process any deviations from this curve shows a faulty running process. We have also observed that draft curve is also related to the strength variation in the yarn. There are many quality/process control procedures, which have been practiced in spinning mills, and they are filed in files and signed by several mill staff. Draft Zone setting Pc-program is useful to identify the faulty running process and for quality improvement better mill running performance. But there are also other tests should be carried out in the mill. Process/Quality control and assurance procedures could be divided into two sections Knowledge Based eliminates problems before they occur such as our Fiber Mix Selection Pcprogram, which predicts the yarn strength before yarn manufacturing. Statistical Process Control corrects the problem on line or of line. For zero defects both systems are necessary. But the main point in any spinning mill is to have continuous improvement in minimum manufacturing costs and optimum quality of products with zero defects. Within this in mind we have examined all the existing quality/process control procedures and developed step-by-step problem analyses/problem solving systems through tests carried out in spinning mills. All the tests carried out in spinning mill analyzed in systematic manner and problems are solved in correct manner. With this system the complete process is improved. TYPES OF FIBERS Artificial fibers are made by extruding a polymer through a spinneret into a medium where it hardens. Wet spinning (rayon) uses a coagulating medium. In dry spinning (acetate and
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triacetate), the polymer is contained in a solvent that evaporates in the heated exit chamber. In melt spinning (nylons and polyesters) the extruded polymer is cooled in gas or air and sets... All these fibers will be of great length, often kilometers long. Natural fibers are either from animals (sheep, goat, rabbit, silk-worm), mineral (asbestos), or from plants (cotton, flax, sisal). These vegetable fibers can come from the seed (cotton), the stem (known as best fibers: flax, hemp, jute) or the leaf (sisal). Without exception, many processes are needed before a clean even staple is obtained- each with a specific name. With the exception of silk, each of these fibers is short, being only centimeters in length, and each has a rough surface that enables it to bond with similar staples. Artificial fibers can be processed as long fibers or batched and cut so they can be processed like a natural fiber. Sewing thread was made of several threads twisted together, or doubled. The pre-industrial techniques of hand spinning with spindle or spinning wheel continue to be practiced as a handicraft or hobby, and enable wool or unusual vegetable and animal staples to be creatively used. This is the process where each of the bobbins is rewound to give a tighter bobbin. Plying is done by pulling yarn from two or more bobbins and twisting it together, in the opposite direction from that in which it was spun. Depending on the weight desired, the yarn may or may not be plied, and the number of strands twisted together varies.

QUALITY CONTROL Here the software used is for estimating the lines density i.e.) strength of yarn samples. The length of sample yarn is 120 yards. The sample is wound in wrap reel removed and placed on the electronics scale. The software automatically accounts the weights. The sample is placed on the strength tester. Here the threads are broken and the strength at the time of break is cabby the software with this weight card, strength count and CSP (Count, Strength, and Product) of the yarn is estimated.

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Both hank & yarn product is difficult on their count value. The Company has producing which types of count, wanted by their customers. Based on their customer demands they are producing the count.

Step by step quality improvement findings

Fibers cannot be used to make clothes in their raw form. For this purpose, they must be converted into yarns. The process used for yarn formation is spinning. Spinning by hand was a slow and laborious process. Thus, many implements and methods were invented for making it faster and simple. Eventually, the techniques were refined and industrial spinning started manufacturing yarn in various ways. The methods selected depend upon the factors such as the manufacturer's preference of equipment, the economic implications, the fibers to be used and the desired properties of yarn to be produced. Ring method is the oldest and the most used technique. Open- end spinning is another important method. The basic manufacturing process of spinning includes carding, combing, drafting, twisting and winding. As the fibers pass through these processes, they are successively formed into lap, sliver, roving and finally yarn. A brief description of the journey from fibers to yarns will help in understanding industrial spinning in a better way. Raw Fiber The raw fiber arrives at a spinning mill as compressed mass which goes through the processes of blending, opening and cleaning. Blending is done to obtain uniformity of fiber quality. Opening is done to loosen the hard lumps of fiber and disentangle them. Cleaning is required to remove the trash such as dirt, leaves, burrs and any remaining seeds. Carding is the initial straightening process which puts the fiber into a parallel lengthwise alignment. This makes the tangled mass of fiber ready to produce yarn. Now the fiber is called Lap. The lap is treated for removing the remaining trash, disentangling and molding it into a round rope like mass called 'Sliver'. The sliver is then straightened again which is called Combing. In it, fine-toothed combs continue straightening the fibers until they are arranged in such a parallel manner that the short fibers are completely separated from the longer fibers. This procedure is not required for manmade staple fiber because they are cut into predetermined uniform lengths. This process forms a 'comb sliver' made of the longest fibers. The combing process is identified with better quality because long staple yarn produces stronger, smoother and more serviceable fabrics. Drawing pulls the staple lengthwise over each other. As a result longer and thinner slivers are
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produced. After several stages of drawing out, the sliver is passed to the spindles where it is given its first twist and is then wound on bobbins. 'Roving' is the final product of the several drawing-out operations. It is the preparatory stage for the final insertion of twist. Till now, enough twist is given for holding the fibers together but it has no tensile strength. It can break apart easily with a slight pull. The roving, on bobbins, is placed in the spinning frame, where it passes through several sets of rollers running at high speed and finally the 'Yarn' is produced of the sizes desired.

Computation of short fiber content by fiber number

This program computes short fiber content by fiber number from the 2.5 and 50% span length values measured on fibro gram of comber lap, combed sliver and combing noel. Computation of short fiber content by fiber number would give information to check the combing efficiency of top comb, combing cylinder and nippers. By comparison of back and front clamps one could determine the hooked fiber content and fiber parallelism. It should be stated that 2.5 span length values would not only be taken into account to determine the cleaning efficiency of short fiber content. The reasons are as follows: An increase in 2.5 span length values could be due to removing fiber crimp or permanent extension of fibers. Therefore having greater 2.5 % span length values in combed sliver could lead to fiber breakage in draft zone of ring spinning. Therefore, we advise you to just check the span length values of combed sliver and ring pnomophil waste values, which make the actual yarn. According to our experience carried out in different mills that setting the draft zones according to the 2.5% span length or minimum evenness values would not lead to good quality of yarn and does not represent the real facts. Therefore, after combing the processes should be checked in accordance with the short fiber content by fiber number rather than 2.5 % span length values. However, we must state that the short fiber content by fiber number is more important at combing than the processes after combing. In order to achieve optimum yarn quality draft zone settings and draft Organization should be taken into a consideration.

Computation of mean fiber length by fiber weight

This program also computes mean fiber length by fiber weight from 2.5 and 50 % span length values. Mean fiber length by fiber weight is important especially in combing because it is not
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possible to determine the percentage of short fiber removal from fiber-number distribution diagram. Therefore, by comparison of mean fiber length of combed sliver, comber lap and combing noel it is possible to evaluate the combing quality.

Pc-Program Mill Trials for Processing Organization

Retch setting distances and break draft ratios, draft organizations have large influence on the yarn quality parameters. It is clear that from mill experience that CV% of linear irregularity in carding, combing, drawing roving could vary and low CV% values would not always lead to better quality of yarn and it is always tedious to follow up the experiments up to spinning to see the effects of changes made in previous processes. SPIN PLAN ITRU GROUP LTD has been developed through extensive research work carried out on many spinning mills as well as many research works by the other institutions for the last 40 years. Short fiber content curve for leading and trailing hooks to determine over-stretched fibers and unsuitable drafting conditions such as field of friction of drafting forces, retch settings. The complete actual draft curve in accordance with the actual fiber length growth and linear irregularity at each stage of processing so that optimum spectrogram curves could be obtained at each stage. We call these parameters as DRAFT CV and draft lengths for each process. Optimum linear irregularity value at each stage of processing achieves optimum quality of yarn according to the requirements of yarn quality as well as identifying faulty running section in spinning process.

Spinning Machines Traditional v/s Modern Techniques

Hand spinning was replaced by powered spinning machines which was very fast. Initially it was done by water or steam power and then by electricity. The spinning jenny, a multi-spool spinning wheel significantly reduced the amount of work required to produce yarn. A single worker was now able to work eight or more spools at a time. Spinning Machines then coming spinning frame which produced a stronger thread than the spinning jenny. As it was too large to be operated by hand, a spinning frame powered by a
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waterwheel was invented. It was then called the water frame. The elements of the spinning jenny and water frame were combined to create the spinning mule. Then the spinning frame produced a stronger thread than the spinning jenny. As it was too large to be operated by hand, a spinning frame powered by a waterwheel was invented. It was then called the water frame. The elements of the spinning jenny and water frame were combined to create the spinning mule. Fibers leaving the carding cylinder contain hooked fibers and if these hooks are not properly straightened in subsequent processes then yarn quality is deteriorated. The other important point is that the fiber breakage in carding. If the fibers mean length after 1st passage of drawing does not increase then it is evident that fibers are broken in carding. Faulty transfer between carding cylinder and doffer and fiber breakage cause high linear irregularity of CV% in carding sliver and represent a similar pattern of drafting waves in drafting. Therefore the card settings, relative speeds of taker-in, cylinder and doffer and selection of proper card wire determine the carding performance. The processes after carding straighten these trailing and leading hooks. But over stretching of fibers in drafting zones could weaken the fibers.

Fiber Hook Theory

It has been very well known that fibers leaving the carding machine are not straight and parallel. Fibers have some hooks at leading and trailing sides. And if these hooks are not gently straightened could be broken and weak places occur in yarn. Trailing and leading hooks could be determined by fibro gram instrument by measuring the slivers at trailing and leading sides. Trailing hooks are mainly due to the transfer between carding cylinder and doffer. Therefore, by checking the card web, card sliver and hooks one could achieve optimum card sliver. SPINNING MILL DATA BANK + TEXTILE TECHNOLOGY & SPECTROGRAM ANALYSES PCPROGRAMS is very effective to minimize trailing and leading hooks in carding. These hooks could be minimized but could not be eliminated. For this purpose we have also developed TRANSFER FUNCTION AND DRAFTING WAVES IN CARDING PC-PROGRAM. ITRU GROUP LTD based upon the actual mill experience and practical results claim that leading and trailing hooks play an important role in determining the yarn quality and spinning performance as well percentage of combing noel.
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HISTORY AND ECONOMICS

Hand-spinning was a cottage industry in medieval Europe, where the wool spinners (often women and children) would provide enough yarn to service the needs of the men who operated the loom. This would occur in districts favorable to sheep husbandry. The introduction of the flying shuttle upset this balance. The subsequent invention of the spinning jenny water frame redressed the balance but required water power to operate the machinery, and the industry relocated to West Yorkshire where this was available. The nascent cotton industry was located on wetter side of the same hills. The British government was very protective of this technology, restricting its export. By the aftermath of World War the colonies where the cotton was grown started to purchase and manufacture significant quantities of cotton spinning machinery. The next breakthrough was with the move over to break or open-end spinning, and then the adoption of artificial fibers. By then most production had moved to India and China. The mule was an intermittent process, as the frame advanced and returned a distance of 5ft.It was the descendant of a 1779 Crompton device. It produces a softer, less twisted thread that was favored for fines and for weft. The ring was a descendant of the Arkwright water frame of 1769. It was a continuous process; the yarn was coarser, had a greater twist and was stronger so was suited to be warp. Ring spinning is slow due to the distance the thread must pass around the ring, and similar methods have improved on this; such as flyer and bobbin and cap spinning.

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OBJECTIVES
Objective of this internship is to get know the vendors management practices of the Kumar spinning mills pvt limited company.

METHODOLOGY
The data/information required for understanding the concept of vendors management
practice of the Kumar spinning Mills Company was collected by interviewing the production manager of the company and observed from the presence of the company. The manager gives much information about their trading, vendors selection and the information regarding to the survey they taken for the searching of the vendors. And some information is gathered by reading through reports, manuals, and websites.

INTERVIEW METHOD
Interview method is a method of obtaining information from the respondents by asking questions personally with direct or in direct questions, this method is very useful to the researcher to obtain lot of information by the frequent conversation to the respondents. This method is used in this study for obtaining information from the Managers, Supervisors and others about the labours, production process, and technologies used in the management of vendors.

OBSERVATION METHOD
This is the method of observing what is happening in the area we present, we can observe lively what is happening in the organization, by this method we can obtain truthful information. This method is very useful for me to see the management techniques lively and observe the reaction of the workers, it is very essential for me to get good information the vendors by seeing the environment and the working area of the spinning mills.

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VENDORS MANAGEMENT
Vendors management is the management technique which deals with the searching, selection, maintenance and retaining of vendors. These vendors are come closer to the organization by the survey taken about them and by the local agents. In other words the vendors management is one which deals with the management of third parties in the organization whose involvement in the organization is very essential for the companys development. Vendors are the heart beats of the production process of the organization whose production function is carried out by the purchased goods. Thus, vendors management is the important one in the management to look over it and maintain in the correct and effective way to have a good and improved production process At the starting stage of this spinning mill, the vendors are selected by the managing director and his team. These team members directly investigate the vendors by the help of agents in the local region. The Raw materials are consumed from various places, they are Kovilpatti, TamilNadu. Andhra Pradesh. Punjab. Gujarat.

And other foreign countries like Australia, South & North African Countries, and Vendors from these regions are selected trough the survey.

SURVEY
This survey is properly decided and preceded by the team members; they usually gathered information about the cotton consumption in India and other countries by this gathered

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information they used to hold one or two local agent for the better communication to the sellers. After that they decided to buy.

SELECTION OF VENDORS THROUGH INTERNET

There are some websites that is very useful for the selection of vendors by the companies. From these websites the vendors get closer to the companies, by certain deals. The company stores their details in these websites and conveys their wants. From the information they given to the sites, many offers get closer by the selling of cotton to get consumption of the finished products yarn. Many of the vendors supplies cotton for get yarn.

TIME DURATION FOR THE COMMUNICATION BEFORE PURCHASING

The time duration is very essential for any type of business contract, this time duration will result in the positive or negative result according to the estimation of the planned decision. Thus this time duration plays a vital role in the searching and selection of the vendors for the management to provide good deliverance when it is needed.

LOCAL ORDERS
For the local orders the company can order before one week before the consumption of the quality cotton

INTERNATIONAL ORDER
International order should be communicated before 3 months, before the communication the order should be placed after the value of cotton after the date of consumption, there should be some risks take part in this area. Cost fluctuation Time of delivery Risk of accidents.

COST FLUCTUATION

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This problem arises because the order is paced before 3 months, if the cotton price is 100 this month, it may go down or up during the month of consumption this should be properly investigate for the international order. Government helps these order by the mutual agreement on this price fluctuation, this concept promote the import decision in these problems.

TIME OF DELIVERY
The delivery time may be get late because the goods are come through the ships this lapse of time get affect the production process and it result in loss.

RISK OF ACCIDENTS
Accidents happens in the sea way transport may collapse the total plan, these problem caused by some natural disaster and other problem, it should be taken into the knowledge before choosing this alternative idea.

MANAGING THE PROBLEM RELATED TO INTERNATIONAL ORDER

Government concept of mutual agreement in the problem of price fluctuation, make the import duties easy for trading cotton from various nations. Insurance scheme and other scheme secure the companies, which cause loss in case of accidents and other late in delivery time. Thus, the managers can get all support to import the quality cotton for the better production process.

NO. OF. VENDORS

This spinning mill has more than 50 vendors through the websites, local and international orders. The managers decision from the vast of vendors according to their convenience they get easy consumption of cotton.

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Strategies to Strengthen Vendor Relations

Vendor management allows you to build a relationship with your suppliers and service providers that will strengthen both businesses. Vendor management is not negotiating the lowest price possible. Vendor management is constantly working with your vendors to come to agreements that will mutually benefit both companies.

1. Share Information and Priorities

The most important success factor of vendor management is to share information and priorities with your vendors. That does not mean that you throw open the accounting books and give them user IDs and passwords to your systems. Appropriate vendor management practices provide only the necessary information at the right time that will allow a vendor to better service your needs. This may include limited forecast information, new product launches, changes in design and expansion or relocation changes, just to name a few.

2. Balance Commitment and Competition

One of the goals in vendor management is to gain the commitment of your vendors to assist and support the operations of your business. On-the-other-hand, the vendor is expecting a certain level of commitment from you. This does not mean that you should blindly accept the prices they provide. Always get competitive bids.

3. Allow Key Vendors to Help You Strategize

If a vendor supplies a key part or service to your operation, invite that vendor to strategic meetings that involve the product they work with. Remember, you brought in the vendor because they could make the product or service better and/or cheaper than you could. They are the experts in that area and you can tap into that expertise in order to give you a competitive advantage.

4. Build Partnerships for the Long Term

. Vendor management seeks long term relationships over short term gains and marginal cost
savings. Constantly changing vendors in order to save a penny here or there will cost more

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money in the long run and will impact quality. Other benefits of a long term relationship include trust, preferential treatment and access to insider or expert knowledge.

5. Seek to Understand Your Vendor's Business Too

Remember, your vendor is in business to make money too. If you are constantly leaning on them to cut costs, either quality will suffer or they will go out of business. Part of vendor management is to contribute knowledge or resources that may help the vendor better serve you. Asking questions of your vendors will help you understand their side of the business and build a better relationship between the two of you.

6. Negotiate to a Win-Win Agreement

Good vendor management dictates that negotiations are completed in good faith. Look for negotiation points that can help both sides accomplish their goals. A strong-arm negotiation tactic will only work for so long before one party walks away from the deal.

7. Come Together on Value

Vendor management is more than getting the lowest price. Most often the lowest price also brings the lowest quality. Vendor management will focus quality for the money that is paid. If the vendor is serious about the quality they deliver, they won't have a problem specifying the quality details in the contract.

8. Vendor management practices

whether you're a multimillion dollar company or a small business with a few employees, here are some Vendor Management Best Practices that any size business can use.

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THE SUCCESSFUL VENDOR SELECTION PROCESS THE FIVE STEP VENDOR SELECTION PROCESS
The vendor selection process can be a very complicated and emotional undertaking if you don't know how to approach it from the very start. Here are five steps to help you select the right vendor for your business. This guide will show you how to analyze your business requirements, search for prospective vendors, lead the team in selecting the winning vendor and provide you with insight on contract negotiations and avoiding negotiation mistakes.

ANALYSE THE BUSINESS REQUIREMENT

Before you begin to gather data or perform interviews, assemble a team of people who have a vested interest in this particular vendor selection process. The first task that the vendor selection team needs accomplish is to define, in writing, the product, material or service that you are searching for a vendor. Next define the technical and business requirements. Also, define the vendor requirements. Have the team analyze the comments and create a final document. In summary: Assemble an Evaluation Team Define the Product, Material or Service Define the Technical and Business Requirements Define the Vendor Requirements Publish a Requirements Document for Approval

VENDORS SEARCH
Now that you have agreement on the business and vendor requirements, the team now must start to search for possible vendors that will be able to deliver the material, product or service. The larger the scope of the vendor selection process the more vendors you should put on the table. Of course, not all vendors will meet your minimum requirements and the team will have to decide which vendors you will seek more information from. Next write a Request for Information (RFI) and send it to the selected vendors. Finally, evaluate their responses and select a small number of vendors that will make the "Short List" and move on to the next round.

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In summary: Compile a List of Possible Vendors Select Vendors to Request More Information From Write a Request for Information (RFI) Evaluate Responses and Create a "Short List" of Vendors

1. Compile a List of Possible Vendors

Use a spreadsheet or database program to start entering the contact information for your list of possible vendors. Depending on the service or product that you are completing the vendor selection process for, you will want to define the scope of your vendor search in terms of local, regional, national or international. Some searches will be limited to the local area; for example, searching for a janitorial service would not be practical on the international level. On the other hand, a simple mass produced part (in sufficient quantities) would yield itself very well to an international search.

2. Select Vendors to Request More Information From

Depending upon the effort that you put into searching for vendors, the list you created may be too long. Assess the number of vendors that you found, taking into account that you will have to send each one a Request for Information (RFI) and evaluate it upon its return. A targeted "rifle" approach will serve you better than a widespread "shotgun" approach. Depending upon the size and scope of the project, anywhere from three to twelve vendors would be an appropriate number to send an RFI to.

3. Write a Request for Information (RFI)

Write a document that will be delivered to each vendor that you have decided to investigate. Remember, for smaller parts and basic services this should be short and simple. For more complex parts and complicated services, a more detail and longer request should be developed.

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This document should include the following sections: Cover letter introducing yourself and your company A contact person(s) for the vendor to contact with questions and clarifications Short description of the part or service Request for product/service and company brochures Vendor screening criteria questions (see below) Deadline for the vendor to respond for each of the vendor requirements defined in the analyze business requirement section; write a question for the vendor to respond to. Here are some examples that match the examples requirements previously given: Do you have a local delivery service for same-day orders? What is your market capitalization? Are your employees bonded and insured? Please provide at least five references that we can talk to directly. Do you have electronic ordering processing? What percent of your raw material originates from within the United States?

4. Evaluate Responses and Create a "Short List" of Vendors

When the Request for Information (RFI) packages are retuned, review the responses. If there are any ambiguities, contact the vendor for clarification. Gather the Vendor Evaluation Team and decide which vendors will be on the short list. If there are any criteria that you would consider pass/fail (e.g. "need 24 hour support") and the vendor did not meet this requirement, eliminate that vendor and move on to the next one. The "short list" should be between two and seven vendors (depending upon the size and scope of the project).

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3. REQUEST FOR PROPOSAL AND REQUEST FOR QUOTATION

The business requirements are defined and you have a short list of vendors that you want to evaluate. It is now time to write a Request for Proposal or Request for Quotation. Whichever format you decide, youre RFP or RFQ should contain the following sections: Submission Details Introduction and Executive Summary Business Overview & Background Detailed Specifications Assumptions & Constraints Terms and Conditions Select ion Criteria Now that you have analyzed your business requirements and completed your vendor search, you are ready to start the meat-and-potatoes of the vendor selection process. A well written Request for Proposal (RFP) or Request for Quotation (RFQ) is the key for selecting the best vendor at the best value for your company. Writing a RFP or RFQ is not difficult if you understand the objectives and function of the document.

Decide: Request for Proposal or Request for Quotation Request for Proposal (RFP)
An RFP is used for services or complex products where quality, service or the engineered final product will be different from each vendor that is responding.

Request for Quotation (RFQ)

An RFQ is used for commodities, simple services or straightforward/uncomplicated parts with little or no room for product or service differentiation between responding vendors. Negotiation points could include: delivery schedules, packaging options, etc.

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Objectives of a RFP or RFQ

Obtain detailed proposals in order to evaluate each vendors response so that the best interests of your company are met on all fronts. Leverage the competitive nature of the vendor selection process to negotiate the best possible deal. Insure that the interests of all stakeholders within your company will be met and a consensus reached. Puts your company in control of the entire vendor selection process and sets the selection rules up front. Starts building the partnership between you and the vendor right from the start...

Sections of the Request for Proposal or Request for Quotation

The RFP or RFQ should contain the following sections. Keep in mind, that each Document will be different depending upon the type of company and product you are Searching for. Tailor each section for your individual needs.

1. Submission Details
Deadlines, mailing address of your company, contact person for questions and clarification

2. Introduction and Executive Summary

Write this section last after the entire document is finished. This is used to provide Prospective vendors with a brief overview of your company and the requirements for your product or service.

3. Business Overview & Background

Give a brief overview of your business, products and market sector that you cater to. This will help your prospective vendors understand what business needs you are Trying to fill with the vendor selection process. Also provide important background Information that will benefit the vendor when responding.
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4. Detailed Specifications
This should be the longest section of the document. For an RFP, it will contain the Qualitative measures and requirements that will drive the vendor selection decision. For an RFQ this section should provide the quantitative measures that you will be Looking for in the vendor's response. Example criterion includes:

5. Assumptions & Constraints

Any assumptions and/or constraints that the prospective vendors need to be made aware of must be listed here. Failure to be forthright and upfront with the vendor will open the door to renegotiation of the agreement at a later date and runs the possibility of straining the relationship you have with your vendor. Possible topics include: travel expenses, upgrade/modification costs, licensing rights, etc.

6. Terms and Conditions

Any terms and conditions of the contract must be listed in order for the vendor to make a fair and honest response. These may include: financing options, contract length, renewal options, warrantees, delivery penalties, service levels, etc.

7. Selection Criteria
The final section should be an overview of the selection criteria that you will be using to make your decision. Some companies prefer to keep this information totally confidential; while other companies believe this will help prospective vendors focus on what is important to your company.

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4. Proposal Evaluation and Vendor Selection

The main objective of this phase is to minimize human emotion and political positioning in order to arrive at a decision that is in the best interest of the company. Be thorough in your investigation, seek input from all stakeholders and use the following methodology to lead the team to a unified vendor selection decision: Preliminary Review of All Vendor Proposals Record Business Requirements and Vendor Requirements Assign Importance Value for Each Requirement Assign a Performance Value for Each Requirement Calculate a Total Performance Score

1. Preliminary Review of All Vendor Proposals

Before the vendor selection team starts its evaluation and selection process, all proposals must be reviewed for completeness and clarity. Any obvious omissions and ambiguities should be clarified by the submitting vendor. This will insure that the evaluation and selection process, once begun, will be through and efficient.

2. Record Business Requirements and Vendor Requirements

On a spreadsheet list the business requirements and then the vendor requirements that were compiled in the first step, Analyze Business Requirements. A through and detailed listing of all requirements is essential in order to arrive at a fair and equitable decision.

3. Assign Importance Value for Each Requirement

For each of the requirements assign an "Importance Value" using a scale from one to ten; where 1 is extremely unimportant and 10 is extremely important. If the vendor selection team cannot agree upon an importance value, then accumulate everyone's individual value and calculate an "average" across all members. If a team member feels they are not qualified to render an opinion on a certain requirement, they may abstain from submitting a value. Use the average score of all submitted values from the team as the Importance Value for that requirement.
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If a requirement is dichotomous to the point where you would want to eliminate the vendor immediately if they cannot meet the requirement, then mark that requirement as "Pass/Fail". For example, if youre insurance carrier requires all external contractors that perform work in secured areas to be "bonded and insured," then any vendor that does not meet this requirement will be immediately eliminated from further consideration.

4. Assign a Performance Value for Each Requirement

This step may be the longest and most drawn out process of the entire vendor selection process. The team will need to assign a "Performance Value" that they believe that each vendor performs on each of the requirements. For larger projects you may have to give each team member time to evaluate each proposal in order to arrive at a performance score for each objective. Once again, if the team cannot agree upon a performance value, then accumulate everyone's individual value and calculate an "average" across all members. If a team member feels they are not qualified to render an opinion on a certain requirement, they may abstain from submitting a value. Use the average score of all submitted values from the team as the Performance Value for that requirement for that individual vendor. If a requirement is indicated to be "Pass/Fail" and the team agrees that the individual vendor has not met the requirement, that vendor can be immediately removed from further consideration

5. Calculate a Total Performance Score

Now that you have an "Importance Value" for each requirement and a "Performance Score" for each vendor on each requirement, you can calculate a Total Performance Score for each vendor. Calculate the Total Performance score by multiplying the individual Importance Value by the vendor's Performance Value. Total the sum of all an individual vendor's Performance Score to arrive at a Total Performance Score for the vendor.

6. Select a the Winning Vendor

The Total Performance Score is not meant to be an absolute value of determination of a vendor's proposal. It is to be used as a guide to highlight differences between vendors and spark

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meaningful discussion between team members. Proposals that fell orders-of-magnitude below the front runners can be eliminated if the team agrees. The proposal evaluation for the vendor selection process for smaller projects and commodities will be relatively straight forward. For bigger projects, complex parts or multifaceted services, evaluating proposals and coming to a consensus will be more involved. The main objective of this phase is to minimize human emotion and political positioning in order to arrive at a decision that is in the best interest of the company. Be thorough in your investigation, seek input from all stakeholders and use the following methodology to lead the team to a unified vendor selection decision.

5. Contract Negotiation Strategies

The final stage in the vendor selection process is developing a contract negotiation strategy. Remember, you want to "partner" with your vendor and not "take them to the cleaners." Review your objectives for your contract negotiation and plan for the negotiations are covering the following items:

6. Contract Negotiation Mistakes

List Rank Your Priorities Along With Alternatives Know the Difference between What You Need and What You Want Know Your Bottom Line So You Know When to Walk Away Define Any Time Constraints and Benchmarks Assess Potential Liabilities and Risks Confidentiality, non-compete, dispute resolution, changes in requirements Do the Same for Your Vendor (i.e. walk a Mile in Their Shoes?) The smallest mistake can kill an otherwise productive contract negotiation process. Avoid these ten contract negotiation mistakes and avoid jeopardizing an otherwise productive contract negotiation process.

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Objectives of Contract Negotiations

The following contract negotiation objectives can be used to evaluate the contract on each of the following items: Explain clearly all essential prerequisites, terms and conditions Goods or services to be provided are unquestionably defined Compensation is clearly stated: Total cost, payment schedule, financing terms Acknowledgement of: Effective dates, completion/termination dates, renewal dates Identify and address potential risks and liabilities Define and set reasonable expectations for this relationship currently and into the future.

Strategies for Planning Contract Negotiations

List Rank Your Priorities Along With Alternatives As you develop your contract negotiation strategy, you may keep returning to this area to add additional items. You will not be able to negotiate effectively all areas of the contract at once In addition; you may want to refer to the least important items if you have to give up something to get your top items. Know the Difference between What You Need and What You Want Review your priorities frequently throughout the contract negotiations planning process and one final time at the end. Be sure to ask the hard questions: "Is this really a priority for our company, or is it a 'nice to have'?" "Was this priority a result of some internal political jockeying, or is it for real?" Know Your Bottom Line So You Know When to Walk away is there a cost or hourly fee that your company cannot exceed? Have you come to realize that one or two of the top priorities are truly non-negotiable and List these along with the rationale so they are not forgotten.

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Define Any Time Constraints and Benchmarks in any substantial project you will want to set performance measurement standards that you will expect from your vendor. If these are essential to your business, For example: project completion dates, delivery date for first batch of parts, start date for the service, lead times, etc. Assess Potential Liabilities and Risks what is the potential for something to go wrong? What if unforeseen costs are encountered? Who will be responsible if government regulations are violated? Whose insurance will cover contract workers? These are just a few of the more common questions that must be addressed in any contract. Confidentiality, non-compete, dispute resolution, changes in requirements these are other items that could be a potential negotiation stumbling block or deal closer. For example, if the vendor (or an employee) has the possibility of being exposed to confidential information, you will want to be sure a confidentiality clause is put into the contract with the liability assumed by the vendor. Do the Same for Your Vendor (i.e. walk a Mile in Their Shoes?) Now that you have completed the contract negotiations planning process for your business, repeat the same process as if you were the vendor. What area do you think is most important for them? What risks or liabilities will they want you to assume? Your list won't be perfect, but it will succeed in putting you into a frame of mind to look at things from their prospect.

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Preparation
Before the actual contract negotiations begin, make sure the following items are reviewed and confirmed: Determine If You Will Need Legal Counsel Negotiating a contract for one year of janitorial services in a small office is vastly different than negotiating a contract to outsource a fairly large call center. If you feel the least bit uncomfortable reviewing contract "legalese", do not hesitate to retain a lawyer specializing in contract negotiations. On-Site or Teleconference Agree upon where the negotiation session(s) will take place. If you think you have the upperhand by negotiating at the vendor's site, then propose up front that you will travel to them. If the distance is too far to travel cost effectively, set up a teleconference to accomplish the negotiation session. Make sure it is a video conference because body language speaks louder than words. Make Sure the Person Representing the Vendor Has Authority to Negotiate Before your people travel to the vendor's site or the vendor travels to your site, make sure the person/people representing the vendor have the authority to negotiate on behalf of the vendor's company. It would be a huge waste of time to hear at the end of a long negation session "Well, let me get back to you after I hear what my boss has to say about this."

Contract Negotiation Mistakes Ten Mistakes to Avoid In the Contract Negotiation Process
The smallest mistake can kill an otherwise productive contract negotiation process. Avoid these contract negotiation mistakes so that you and your vendor will come to an agreement that will benefit both parties.

1. Thinking the Yard is fenced in

Don't assume that only a certain subset of resources or conditions can be negotiated. The sky is the limit and finding creative and original alternatives that can benefit both parties will result in a
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better negotiated contract. Do not propose ridiculous or insulting alternatives that will destroy your sincerity and integrity.

2. Failure to Study Your Opponent

Too many people approach contract negotiation process with the "It's all about me!" mentality. They fail to research the vendor that they will be negotiating with. They dont understand the vendor's market and what other influences control their environment. The larger the contract, the more time you should spend on this.

3. Too Aggressive
You need to be certain that your company's interests are at the forefront of your priorities but at the same time you need to be mindful and sensitive regarding the person representing the vendor. Going "on the attack" will only succeed in raising his/her defensive mechanisms and negotiations will turn out to be fruitless.

4. It's All About Price

Of course nobody wants to pay too much for their goods and services, but there is a lot more on the table than just money. Look for alternatives that are high on your priority list and low on the vendors. Then you both win.

5. Jumping Too Quick

No matter how low the opening price is, offer lower or ask for something more. If you jump too quickly at the first offer, the vendor will feel like they made a stupid mistake. You want the vendor to leave the negotiation table feeling good.

6. Don't Gloat
When you do end up striking a fantastic deal in your favor, don't embarrass the vendor by saying something that will give you an ego-trip at his/her expense. Not only is this unprofessional, but the vendor may then look for loop-holes in the contract to regain some money and pride.

7. Terminology Not Defined or Understood

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Don't assume that everyone who will read the contract will understand every technical term or complicated provision. Insist that every area of the contract that has the possibility of being misunderstood is clearly defined.

8. Inconsistencies within the Contract

Look for inconsistencies within the contract that can come back to haunt you in some form of arbitration. If necessary, have a third party review the contract in order to uncover any inconsistencies.

9. Concern in One Area will be overridden by Another Area

Do not assume that a perceived weakness or apprehension in one area of the contract can be compensated by strength in another area. Be specific and direct in all areas. Once the contract is contested in a court of law, all control is removed from your hands.

10. Avoid Redundancies

Stating the same thing twice in different section of the contract will not reinforce their value. In most instances lawyers and the courts will come up with a reason to differentiate and justify both areas; usually with an interpretation that neither party anticipated.

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CONCLUSION
The Kumar spinning mills private limited company is the company performs the business activity of converting cotton into the two type yarn they are cone winding and reeling yarn. In modern fashion technology, the demand for perfection begins right at the birth of raw material, permeates trough every single process, till the highly discertaining customer done the finished garments. It is this demand for perfection that as spurred the growth of an Organization and its corporate philosophy. These who can furnish clients with the best quality, competitive price, and excellent customer services and prompt delivery can only survive in the market. Kumar spinning mills private limited takes immense pride in perceiving its role as the comprehensive architect of every single yarn that its produces. Each company in the group specializes in a specific area, thus enabling us to better meet the diverse needs of the industry. Our companies are focused on meeting our customers individual needs. We exist to provide superior customer satisfaction, developing solid, long-term

relationship with our customers. Though prices of all textile products have been increasing in both the domestic and global markets, there is normally a time lag between the price increases in raw materials and in finished goods. CITI would request Commerce Ministry to provide sufficient export incentives to the value added segments until the overseas markets are able to absorb the increase in their raw material cost in full. Consolidation of production facilities in these segments for bringing their efficiency levels at par with the global competitors also needs active support of the Government.

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