A STUDY ON FUNCTIONAL AREAS IN WESTERN INDIA PLYWOOD INDUSTRIES LTD

Submitted by
ARISA PATAN

In partial fulfillment for the award of the degree Of

MASTER OF INTERNATIONAL BUSINESS
Under the Guidance of BALAJI PATTABHIRAMAN

DEPARTMENT OF MANAGEMENT STUDIES PRESIDENCY BUSINESS SCHOOL.HEBBAL BANGALORE UNIVERSITY

AUGUST - 2012

DECLARATION

I hereby declare that this summer report on industrial training entitled

a study on

functional areas of WESTERN INDIA PLYWOODS LTD., submitted to department of Management studies, PRESIDENCY BUSINESS SCHOOL.HEBBAL in partial fulfillment of the requirement for the award of the degree of MASTER OF INTERNATIONAL BUSINESS is a original work done by me during the period of my study at the college under the supervision and guidance of Mr. Balaji Pattabhiraman BUSINESS SCHOOL.HEBBAL Department of management studies PRESIDENCY

ARISA PATAN

ACKNOWLEDGEMENT

Expressing my profound gratitude & thanks to WESTERN INDIA PLYWOODS LTD. Baliapatam and its Managing Director, P.K Mohamed for allowing us to undergo our training in Western India Plywoods Ltd.

I also indebted to Mr. Ratheesh (HR department) for his timely guidance and all other Staff and Workers of the company for their kind co-operation for our successful project completion.

I am grateful to Mr. Brahm Sharma, director of Presidency Business School,Hebbal.Bangalore and thanks to Mr. Balaji Pattabhiraman (faculty guides) for their throughout help in conducting the training in the most efficient way

ORGANISATION STRUCTURE

Managing Director

Executive Director GM (administration) GM (production)

HD/PFP/PCPB

Store/P&A

Company Secretary

Chief Accountant officer Development Manager Works Manager

Electrical

Technical Manager

Marketing Head

Plywood, Flush door, Block board

Central Excise

Plant Manager Densified Wood Products

Sales Manager

DWD

NO.

CONTENTS
1 INTRODUCTION 06

INDUSTRY PROFILE

09

COMPANY PROFILE

14

ALL DEPARTMENTS

20

SWOT ANALYSIS

72

FINDINGS

76

SUGGESTION

76

CONCLUSION

77

BIBILOGRAPHY

77

INTRODUCTION

Management is the process by which people, technology job tasks and other resources are combined and coordinated so as to effectively achieve organizational goal.

The organizational study conducted at THE WESTERN INDIA PLYWOODS LTD. Is to study about organizational structure communication channel , span of control ,organizational culture etc. of the organization .The relevance of the study is to understand the above mentioned facts through a real organizational scenario.

The chief objective of the organizational study is to familiarize with the working of various departments for a particular period, so that one can have exposure to the practical side.

Objective of the study

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

To understand the organization structure and working of various functional departments. To analyze the overall performance of the company. To understand the extent to which management theory matches with actual practices observed.
To understand and study the organization objectives and goals.

METHODOLOGY

The methodology used for this organization study is mainly in two ways. They are;

PRIMARY DATA, SECONDARY DATA.

PRIMARY DATA
Primary data are those data which are collected first hand and thus happen to be in original character. The primary data includes the data by questionnaires, by observing and by interviews with the company personnel at different levels of management.

From the managers From the office staff Rom the workers.

SECONDARY DATA
Secondary data are those data which have already been collected from the company such as

Business journals Quality manuals Annual report Magazines broachers.

LIMITATIONS OF THE STUDY 1.

Due to shortage of time and other constraints, interviews with workers were short.

2.

Both managers and employees are not ready to fully reveal the data required for the project and the document of the company are not open for the public scrutiny.

3.

Lack of availability of secondary data from published journals and reports.

4.

Another limitation faced was the respondents sometimes were too busy to answer questions in detail.

INDUSTRY PROFILE

INDUSTRY PROFILE
India is one of the developing countries in the world. The small and large scale manufacturers of the modern days played a significant role in the Socio-economic development of the country. Our country is blessed with immense stock of natural resources both above and beneath the soil surface. Among that trees are great bounty to man. They provide shelter, fuel, medicines and tools for war, commerce, or transport. Nature develops trees as a mother brings up children, making each one a separate individual. It is an amazing sight to see the natural abstract rhythm of line, colour and texture of wood. Nothing from nature indoors gives a long lasting enjoyment. That is why decorative wood had as much importance in the past, having in present and will be in future also. And another fact was that it was timber from trees, which in the early days helped man to conquer the oceans and to fly in the air. WOOD BASED PANEL INDUSTRY IN INDIA Wood panel products effect considerable saving of scarce wood as compared to solid timber. The basic types of wood based panels are; 1. Plywood 2. Particleboard 3. Hardboard and Medium Density fiberboard

Plywood The history of plywood industry in India is old. It is more than 75 years old that this industry started here on a very modest scale. It was in the year 1906-07 that plywood was imported in India for the first-time valued at Rs.32 lakh. Imports rose steadily and by 1924-25 it were worth Rs.90 lakh. Tea industry in Assam, West Bengal and Kerala was steadily developing and it was thought that plywood industry in the form of Tea chests production mainly for export should be developed. Accordingly two plywood factories were started in Assam in 1923-24 but their development was steady, slow and not potential. These were the pioneers and the resourcefulness and courage shown by them in the early stages of growth of Plywood industry was remarkable and the industry owes gratitude to these courageous entrepreneurs. With the outbreak of Second World War, necessity of manufacturing tea chests locally was very much felt and plywood industry in India is a gift of Second World War. Now that tea chests must be produced, Forest Departments in various states started thinking in terms of finding suitable timber for manufacturing tea chests. Experiments were made at Forest Research Institute, Dehra Dun and it was found that plywood made from
10

Indian timbers were good as imported products and therefore advised forest entrepreneurs to set up modern factories in different States. Accordingly well equipped plants were started at different places like Sitapur, Bangalore, Baliapatam (Valapattanam), Dandeli and Coochbehar. Some of these factories suffered setbacks in the post war years, as after cessation of war the vested interests tried to sabotage these industries by trying to restart imports of tea chests. Tariff Board enquiry was held and the Government imposed a lien on the importers to purchase Indian products equivalent to the quantity allowed to be imported. Slowly, the Government encouraged the Indian entrepreneurs to modernize their plants and invest substantial capital in this industry. After 1947-48, the industry resorted to diversification of its products and block boards, flush doors, commercial plywood, marine and aircraft plywood, produced in Indian factories came into the market which were second to none in the world quality and diversity of its products. Industrial licensing is governed by the Industries (Developmental and Regulation) Act, 1951 under the wood based industry was covered. There was no restriction of putting up plywood Mill up to 1970. The only criteria was that the applicant was required to obtain an Industrial License which was being considered by Ministry of Industry after consulting various Ministries including Ministry of Environment & Forests. Forest Ministry was being consulted for ascertaining sustainable raw material of Timber for a particular project; the wood based industry was more or less in medium and large scale. The wood based industry was under Compulsory Industrial Licensing 1988 whether a small scale unit or a medium/ large unit, new undertaking or substantial expansion would require Industrial License. During 1970 there was clear cut definition of Small Scale Sector and units having an investment of less than 7.5 lakhs in plant and Equipment were covered under the definition of Small Scale Sector which would be registered with the respective State Director of Industries. At that particular stage some of the units with such investment got themselves transferred to small scale sectors. Meanwhile there were modern technology and machinery equipped plywood units coming up in different places in India like North East Zone. In 1997 the Government of India totally delicensed wood based industry as a result more than 2000 small scale units coming up. The potentialities of the industry can be judged from the many uses to which plywood can be put. Apart from tea chests plywood marine and aircraft plywood there are specific demand for the following articles from the consumers 1. Shuttering Plywood 2. Packaging Plywood 3. Plywood drums
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4. Flush doors 5. Commercial & Decorative Plywood 6. Block Boards 7. Moulded Plywood furniture and chair seats 8. Laminated picking sticks for cotton and jute textile industry 9. Sliced decorative veneers of walnut, teak, rosewood etc. 10. Compregnated wood veneers required for heavy chemical industry and electrical industry and electrified railways.

Particle Board Particle board is a reconstituted constructional panel particularly developed as a substitute for natural construction wood and is made from low grade waste woods or from certain agricultural ligneous wastes. In that respect particleboard assumes one of the greatest importance in the wood panel products industry from the point of view of conservation of scarce forest resources in a country. In India the first particleboard plant was set up in late 1950s at Sitapur in UP. There are presently about 12 wood based and agriculture ligneous waste based particleboard units in India. Hardboard and Medium Density Fiberboard (MDF) Fiberboard is a board encompassing sheet materials of widely varying diversities manufactured from refined or partially refined wood fibers or other vegetable fibers. Bonding agents and other materials may be incorporated in the manufacture to increase strength, resistance to moisture, fire or decay. The first fiberboard (Hardboard) Industry was established in India during late 1950s and first Medium Density fiberboard plant was set up in India about 20 years back.

FURNITURE INDUSRTY The other important field is the furniture industry. Competition is keen in this industry. Furniture manufacturers and exporters are suffering from decreasing profit margins. Many companies strive to reduce their cost of production and increase efficiency. Some relocate their manufacturing operations to other areas with lower operation cost. On the

12

other hand, foreign manufacturers are taking steps to strengthen their domestic production through product specialization. To stay globally competitive, Hong Kong furniture manufacturers strive to reduce costs, initiate quality control, improve design concepts and capability, and upgrade management skills and increase marketing and sales effectiveness. Many

manufacturers have obtained or are applying for ISO 9000/9002 certification. Hong Kong's furniture makers also started to develop their own brands. Furniture manufacturers also become more careful about the choice of raw materials to meet international standards, such as compliance with legal or other environmental requirements in their target markets. China is the largest furniture exporter to many countries, including the US and Japan. The total furniture exports of China exceeded US$6,683 million in 2002, with the US being its largest market. Guangdong province is the major manufacturing centre of furniture on the Chinese mainland. Apart from Hong Kong, manufacturers from Taiwan and even the US have also set up production plants on the mainland. China also offers a huge potential market for furniture makers.

13

COMPANY PROFILE

14

COMPANY PROFILE Founder Mr. A.K. Kaderkutty, the founder of the company passed away on the 14 th February, 2001. He was the Managing Director of the company from its inception up to January 1993 and afterwards he continued as Director and Technical Adviser to the company up to time of his demise in February, 2001. Mr. A.K. Kaderkutty was considered to be the doyen of the wood working industry in the country. Not only he built up a wood based panel product empire in the remote part of Kerala, which became a model for the industry within this country, and also outside, he was also instrumental in transferring the latest technology in wood working industry into reality. He was a member of the International Academy of Wood Science. He was very closely associated with the Federation of Indian Plywood and Panel Industry (FIPPI), The Indian Plywood Industries Research and Training Institute (IPIRTI) and South Indian Plywood Manufacturers Association (SIPMA). He was closely associated with the Bureau of Indian Standards and was the chairman of the subcommittee (BDC : 20) dealing with wood based panel products. The Government of India recognized him and nominated him to the National Credit Council and other committees of Central Government on different occasions. In Kerala, he had served on the State Planning Board, State Advisory Committee on Technical Education, Kerala State Industrial Development Corporation, and Kerala State Electronic Development Corporation. He had also on the Board of Kerala Forest Research Institute, Peechi and the Kerala Government sponsored Institute of Management. He was the first Dean of the Faculty of Wood Technology of University of Calicut. He pioneered a lot of research programmes in wood working industry and one area to be highlighted is the application of Radio Isotopes for upgrading the quality of ordinary timber, for which he set up a pilot plant at Baliapatam. He was recognized by NAARI in 1984 for the pioneering efforts in this connection. He has been received various awards, Kerala Management association Award for Outstanding Excellence, Management

15

Science Award and Vyavasaya Sree Award in 1993. He was basically instrumental in placing the wood working industry in India on the international map with his pioneering efforts. He has served on the board of various industries within and outside the state, besides on the Government body of IIT- Chennai, Regional Engineering CollegeCalicut and Regional Engineering College- Suratkal.

Vision
Continue to remain the best Plywood-Panel Corporation in India with growth in allied areas.

Mission
To provided utmost satisfaction to the consumer through best quality and customer care. To continuously upgrade the product through innovations and convergence of new technology and to produce the best quality at the lowest cost To safeguard and enhance shareholders value To respect the dignity of all employees and together to become instrumental in the development of the country while protecting the environment. To utilize the surpluses for the welfare of employees and the society at large.

Infrastructure Facilities
WIP found an optimum location. It is located on the bank of Valapattanam River, through which water transport is possible. The factory is located near by NH 17 and also very near to the railway station. The company is having the following infrastructural facilities; 1. WIP is having a separate plant and sophisticated imported machineries from Germany, Italy, USA, Sweden 2. It has a co-operative store exclusively for employees 3. Employees State Insurance is undertaken 4. Subsidies canteen facility is available both for administrative staffs and workers 5. Rest room 6. R & D with sophisticated equipments and library 7. Separate office for each department 8. The company owns trucks and other transportation vehicles
16

9. Other statutory infrastructural facilities.

PRODUCT PROFILE The major product for which the company has been the leaders in quality since 1945 is just because of its finest quality products produced as per international standards. The products of the company are globally accepted. Over the last 50 years, through its close knit co-ordination of various processing units, professional management and maximum utilization of facilities available, the company has made an indelible mark in the wood industry a mark of glorious achievement.

Plywoods
Following are the plywood products Air craft plywood Marine plywood Shuttering plywood Cold Water Resistant Plywood Warm Water Resistant Boiling Water Proof Block board Super Block board Flush Door Inlay board Product Mix Hardboard Plywood Densified Wood Pre-Compressed Press Board Others

58.32% 15.13% 17.60% 04.15% 04.80%

Competitors The companys competitors include medium and small scale plywood in dustries. The main competitors are 1. Jolly board
17

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

Century plywood Rubco Novopan Bhutan Board Duratuff Hibond kit ply

Achievements and Awards

1. First to obtain ISO-9002 certification for hard board and pre-finished boards 2. It receives the CAPEXIL Export award for 2002-03 with this the company has become eligible to be recognized as an export house 3. First to make the irradiate wood 4. First to make the aircraft plywood 5. First to make Fire Retardant plywood confirming to BS: 476 specifications 6. First to develop weather proof, marine and Fire Retardant Hard boards 7. First to make metal faced plywood 8. First to make pre finished plywoods and hard boards using OV-Cured surface finishing technology 9. First to manufacture DAP resin in the country with indigenously developed know how.

Functional Areas Wood

For general purpose, the wood used are Kalpine, Vellapine, Neeli, Eucali, Mullanpali Pasupali, Red Cidar, Pula, Red Pine, Cher etc. For decorative purpose, the woods used are Rose Wood, Teak, Mahogany, Padauyk, Silver Oak Dhavala and Champak.

Steam
Steam is the energy used to operate the machines. The steam comes from the boiler. There are four to five types of boiler. Saw Dust Boiler Fire Wood Boiler Indusial Engineering and Agricultural Corporation Boiler Fuel Bed Combustion Boiler Thermo Path Boiler

1. 2. 3. 4. 5.

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Chemicals
The various chemicals used in the preparation of plywood are 1. Formaldehyde 2. Aerolyte Phenyl Formaldehyde etc.

PRODUCT HEIRARCHY

Log Yard

Cross Cutting

Boiling

Peeling

Clipping

Assembling

Gluing

Edging & Joining

Drying

Pre Pressing

Hot Pressing

Conditioning

Trimming

Finishing

Sanding

19

HUMAN RESOURCE DEPARTMENT

20

HUMAN RESOURCE DEPARTMENT

WIP is highly successful in management its productive human asset. Mutual understanding between the management and workers is appreciable in of the matter of the attainment of companys ultimate goal. WIP looking is a forward looking organization ,committed to identify,train,develop and sustain its human resource in such a manner so as to integrate the individual career aspiration of its executives with the fulfillment of the objectives. Towards this,WIP accepts basically that of fair,equitable and performance oriented policy with respect to its human resource

HUMAN RESOURCE STRUCTURE

General Manager is the head of the HR Department followed by the factory executive,who deals with all the matters in the HR Department. The Personnel Officer. The Chief Time Keeper and The Time Clerks assist him. The Time Clerk deals with attendance ,leave and time management of the workers in shifts and in general shifts. Besides there are also people dealing with ESI,PF Canteen Token Wages and Salary Administration and disciplinary action.

PURPOSE
The purpose of the HR Department is: Recruitment and selection Job analysis, job description and job specification Placement and induction Training and development Performance Appraisal Other HRD functions Candidates are evaluated and selected on the basis of scrutiny of application, personal, interview and other means. Employees referrals are the main sources of rec ruitment. Job or skill requirement has been defined department wise to clarify responsibility, authority, and inter-intra department communication. Training needs are identified and plans are prepared accordingly. Training is provided according to availability of faculty and considering operational constraints. New employees are inducted on the basis of WIP Induction Manual on-the-job training and informal guidance. Apart from these employees attends the seminar/training programs conducted by the external agencies.
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CLASSIFICATION OF WORKERS
In WIP Ltd., workers are classified as follows; 1. Permanent 2. Probationers 3. Substitutes 4. Temporary 5. Casual 6. Apprentice

SHIFTS

Shift working shall be regulated in accordance with the provisions of the Factory Act.Companys shift includes: 1 st shift 2
nd

: 6.30 am to 2.30 pm. : 2.30 pm to 10.30 pm. : 10 pm to 6.30 am. : 7.30 am to 4 pm. : 9 am to 5 pm

shift

3rd shift General shift Office time

TICKET OR ATTENDANCE CARD

Every workman shall be given a ticket or attendance card, free of cost, showing his number or name, classification etc. Every workman shall punch his attendance card at the punching machine and deliver up his card or ticket at the place provided in the time office before the commencement of each session of the shift in a day.

ENTRANCE AND EXIT

22

The workman shall not enter or leave the premises of the factory except by the gate or gates appointed for the purpose.

LEAVE AND HOLIDAYS

1. Leave with wages will be allowed to workmen as provided for in the chapter Factories Act. 2. Leave for sickness, maternity and accident will be allowed to the workmen as provided for in the Employees State Insurance Act. 3. National and festival Holidays with wages will be allowed to the workmen as provided for in the Kerala Establishment Act. of

WAGE AND SALARY ADMINISTRATION

In WIP Ltd., the managers analyze and interpret the needs of the employees so that reward can be individually designed to satisfy their needs. Here the workers are paid wages and the staff officers managers etc are paid salary. The wage /salary system which WIP which follows is time rate system. Under this system workers are paid according to the work done during a certain period of time. He is paid at the settled rate as soon as the time contracted for is spent. The basic purpose of salary administration is to establish and maintain an equitable wage and salary structure.

DISCIPLINARY ACTION
Any workman who is found guilty of misconducts is liable to be summarily dismissed without notice or compensation in lieu of notice or alternatively to be suspended for period not exceeding 4 days or to be fined up to 2% of his wages in a wage period in accordance with the provisions of the Payment of Wages Act. Wages and other dues, if any, due to workman whose service is terminated by way of dismissal or discharge or retrenchment shall be paid to the workman within 2 days of termination of his service.

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TRADE UNIONS
Trade unions are an inevitable part of a modern industry set up. Trade union influence industrial democracy, morale, productivity. There are four trade unions in WIP Ltd. They are; CITU (Affiliated to CPM) INTUC (Affiliated to Congress) AITUC (Affiliated to CPI) STU (Affiliated to Muslim League)

RETIREMENT
Any workman who is declared mentally unfit or found to be on continued illhealth or reached the age of 58 (fifty eight years) shall be retired from the service according to the Gratuity Act.

VOLUNTARY RETIREMENT SCHEME

To achieve the optimum level of manpower with the desirable average age mix as per the changing needs of the organization. To provide necessary manpower adjustments. To provide monetary benefits in terms of terminal benefits and voluntary retirement, compensation to the who opt for voluntary retirement.

BENEFITS
Statutory benefits including ESI, PF, Gratuity etc. are provided to all the employees. Besides that WIP Ltd., provides food at subsidized rate to the workers. Whenever any employees meet with any accident, all the expense in the course of treatment borne by the company.

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VARIOUS ACTS FOLLOWED BY THE COMPANY

1. 2. 3. 4. 5. 6. 7. The Companies Act 195 The Factories Act, 1948 The Industrial Disputes Act, 1947 The Minimum wages Act, 1948 Payment of Wages Act, 1936 The Contracts Labor (Regulation & Abolition) Act, 1970 Employees State Insurance Act, 1948

WELFARE MEASURES 1. Employee Providend Fund [EPS]

The EPF Act was enacted in 1952. The Act is now applicable to employees drawing pay not exceeding RS.6500 per month.The pay includes basic wages and Dearness Allowance. Threee schemes are framed under the Act a) The Employees PF Schemes 1952 b) The Employees Pension Scheme 1995 c) The Employees Deposit Linked Insurance Scheme 1976 This Act ia applied to every factory in which 20 or more persons are employed without the aid of power or 10 more workers with the aid of power. 12% of employees wages and equal of employers contribution is transferred to PF of employees wags from this to Pension Fund of the employee.

2.Employee State Insurance Scheme (ESI)

ESI ACT ,1948 is social security legislation .The Act provides certain benefit to employees in case of sickness ,matenity and employement injury.The coverage under the Act ia at present restricted to employees drawing wages not exceeding Rs.7500 per month.The pay includes salary,DA and HRA. The employees contributes 1.75% of the wages and 4.75% of the wages is contibuted by the employer.

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CANTEEN FACILITY
Tokens are given to the workers for the food for one week. In each day they are remitting the token in Time Office. Food is available to workers at a concession rate of Rs.2.50 for meals and 60 paise for snacks

HIERARCHY OF HUMAN RESOURCE DEPARTMENT

Managing Director

GM (Administration)

Factory executive

Personnel Officer

Welfare officer

26

PRODUCTION DEPARTMENT

27

PRODUCTION DEPARTMENT

Production involves conversion of raw material into finished products/ goods. It can be briefly explained as follows. Input Conversion process Output

In the Western India Plywood Ltd, the raw material that are used to the output is steam wood, and chemicals. After introducing these raw materials to a series of

process the finished goods are obtained. WIP produce three categories of products, namely, plywood, hardboard and furniture. The wood that is required for the production is acquired from both local as well as international markets. WIP imports wood from

Malaysia, South Africa, and South America etc. In India wood is obtained from Kashmir, Mysore, Wayanad, Andaman Iritty etc.
INDIAN TIMBER SPECIES USED IN WIP Commercial Timber Decorative Timber

Vellapine Kalpine Pali Mullanpali Pashupali Padapine Kulirmavu Mango Badham,

28

Teak Rose wood Mahagany White Cedar Kussia Poom Beech Silver Oak Gombia

Red Cedar Following are the various machinery and process involved:-

Chempak

Chipping Machine for the formation of wooden chips:

These chips are transferred to the head tank for washing it using conveyor belts.

Cleaning of chips:This is done using boiling water. It also provides sufficient softness for the

chips. Passing through sieve does the separation of water from the chips.

Cyclone
Chips from the deliberating machine are transferred to a conical chamber called cyclone using steam.

Defibrator
The Defibrator used in the plant is the aspluent Defibrator. The moisture content in the chips is removed by increasing the temperature and the cleaned chips are converted into fine powder. After grinding it with two grinding wheels of which one is kept stationary while the other is rotating.

Pulp formation:
The powder form of wood is converted into pulp byadding sufficient quantity of water and chemicals. The chemicals used are dilute sulphuric acid, paraffin wax and certain resin. The pulp is then pumped into board forming section

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FLOW CHART OF PLYWOOD PROCESS

Log yard Cross cutting Boiler Cross cutting Chipping Boiler Edging Slicing

Drying

Drying

Splicing

Glues spreading

Assembling

Pre-Pressing Hot pressing

Conditioning

Trimming

Sanding

Finishing Grading

Plywood 30

LOGYARD
Log yard is a lake near Baliaparam River where the logs are stored for 2 months to 5 years. Logs are arrived from all over the countries like Malaysia, Africa Andaman and South America. Before dipping into water, the length and diameter of the logs are noted and given a specific number. According to necessity the logs are taken out. Storing of wood in water make wood durable and prevents from fungus attack and softening the wood before peeling. In WIP the layout of the log yard is such that it is able to facilitate the free movement of the transport from one part to another. Trolley lines are provided for easy transport of timber.

Cross Cutting
The wood from the log yard is brought in for cross cutting. The long wood is cut into block of varying sizes ranging from 3 to 8 feet as required. cutting the logs that works on a hydraulic system. Chain saw is used for

Boiling
This is to convert the hard timber into soft and remove the oily material. In order to make the hardwood soft and to remove its oil content, the blocks are boiled with the help of steam at a temperature ranging from 120 0C to 1800C. The wood is boiled for a minimum of 24 hours. The steam that is required is produced in boilers. After boiling

logs are cleaned and bark is removed manually and the metallic particles are also removed which may damage the knife. WIP has 4 types of boilers. They are, 1. 2. 3. 4. Saw dust boiler Firewood Boiler FBC (Fuel Bed Combusting) IAEC (Industrial Agricultural and Engineering Corporation)

Peeling
After boiling, the logs are peeled with the help of the peeling machine. The output is called the veneer. Two kinds of veneers are obtained Face and core. Both
31

of them have the same quality, but the soft and smooth part is known as face and the hard and the rough is called as core. The thickness of veneers ranges from 0.4 mm to 2.8mm. Sometimes the slicing machine is used instead of a peeler. used in decorative plywood. This is mainly

SLICING
Mainly decorative veneers are sliced in a slicing machine. For slicing the logs are first cut in the form of flitches from the Kohinoor Saw Mill. There are two slicing machine vertical and horizontal. WIP uses horizontal slicing machine. This flitch is fixed on bed and the knife is moved. Each veneer produced is stocked manually from the machine in an order.

CLIPPING
The next process is called clipping. Clipping is the process of converting the veneers into required size and also remove the detective part of the veneer. Here the veneer produced from the peeler is passed throughclipper. Clipped veneers are moved to transfer which tey are selected on to faces, cores, cross band and then dried.

DRYING:
Drying is the next process. Drying process is conducted by considering time, steam, and thickness of wood. The machine used for this process is known as Dryad. Usually the moisture content is reduced to 6% to 10%.

EDGING & JOINING

The majority of veneers obtained after clipping would be relatively narrow in width, so edging and joining necessary for plywood manufacture. It includes edge cutting, joining, taping and spicing. The dried veneer may not straight edge. Edge
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cutting machine is for straightening the edge of veneer after cutting. For this WIP has two edge cutting machine. It is working under hydraulic or air pressure. After cutting, the UF resin is applied on the edge of the veneers. Electric heat is used for joining the veneers. A gummed tape is also used for joining the veneers. After joining, it is cut into required size.

GLUE SPREADING:
Uniform distribution of glue on the surface if veneers is called glue spreading. In WIP the roller is used for spreading of adhesive. Both side of veneer can be glued at a time. Each machine consists of two spreading roller made up of steel covered with rubber. The distance of the roller can be adjusted. Minimum thickness of the veneer that could be glued on this machine is 0.3mm. Glue spreaded veneers are again dried in the dryer. The glues used are Urea formaldehyde, Areolyte, Melanine formaldehyde.

ASSEMBLING:
In assembling the core veneers are places in between the face veneers. The adjacent veneers are placed in such a way that the gains are across each other. Minimum three plies should be there in plywood.In this process, several boards are pressed in certain temperature. The main element that should be taken as important in this process are steam, thickness and time.

PRE-PRESSING:
Pre-pressing is the compression of panel assembly to attain to attain its final thickness without obtaining the final polymerization or cured state of glue line. Prepressing is done on the siempel kamp press. The duration of pre-pressing may vary from 20-30 minutes depending on the adhesive.

HOT PRESSING:
It is an important process in plywood manufacturing. In hot pressing high temperature and pressure will be applied. The temperature and pressure will be

33

different to each of plywood. Temperature is used for curing the resin and pressure is used for reducing the thickness. There are 3 types of presses used for plywood manufacturing. They are multi daylights and working under hydraulic pressure. The pressing time may vary according to the thickness.

CONDITIONING:
After pressing commercial plywood are dipped into the chemical tank for 2.5minutes. t provides resistance and gives strength to the board. Conditioning is the process in which the pressed plywoodare treated with chemical water to avoid termites and fungal attacks.

TRIMMING:
In trimming the plywood is passed into the trimming machine for cutting the sides according to the sizes required.

SANDING:
This is the process in which the trimmed surface of the plywood is smoothened and softened by using sandpaper or belt sender or drum sander.

Finishing
Finishing is the final step in the plywood production process. All the finishing works such as repairing of face veneer and patch works are done carefully, fine splits, checks, and small gaps on the surface plywood are filled with French choke powder and airtight powder. The boards are sealed and labeled and made ready for dispatch.

SPECIALLITY PLYWOODS

1) AIRCRAFT PLYWOOD:
Aircraft plywood is used for the interior of the aircraft like in military

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and field. It is a 3 ply construction and its thickness ranges from 1mm, 1.2mm, 1.5mm. Because of its small thickness it can easily bend as desired. Pali& White Cedar is only used for its construction with PF resin.

2) MARINE PLYWOOD:
Marine plywood is used in the application of marine vessels. Main species for its construction are kussia (used as face), kalpine (used as core & cross band), Red Cedar as a whole. Sometimes Kalpine is also used as all veneers in its construction. Kussia has good bonding strength and resistant to microorganisms. Usually 7ply of 9mm is taken and PF resin is used for its construction.

3) SHUTTERING PLYWOOD:
Shuttering plywood are used for concrete shuttering. 3 types of shuttering plywood are manufactured in WIP.

4) FIRE RETARDANT PLYWOOD:

Fire retardant plywood has a quality to resist the fire. BWR plywood are treated with fire proofing chemicals such as boric, boarxetc and treated in vaccum pressure for 72 hours to get the fire proofing property.

DENSIFIED WOOD DIVISION:

Densified boars are of 3 types- low Densified board, medium Densified board, and high Densified board. Density of these boards is 0.97 g/cc, 1-77g/cc respectively. Kalpine and vellapine are the mainly used species. The method of manufacture of Densified boards is slightly different from plywood in glue spreading. All the veneers including face are also glued. PF resin is used. The viscosity of the resin is 30-45 second. After glueing veneer is dried to reduce the moisture content present in the glue.

FURNITURE
35

Furniture is another product which is produced in WIP. The furniture is used by using decorative woods like Teak, Mahogany, and Rosewood etc. The veneers are molded in various shapes to make different types of furniture. All the furniture is longlasting and is with best quality. Along with this, the wastes of decorative veneers are used to make various handicrafts products. Inlay board is an example.

HEIRARCHY OF PRODUCTION DEPARTMENT

Production manager

Production assistant

Production executive

Production supervisor

Workers

Skilled

Semiskilled

Unskilled

Casual

36

PURCHASE DEPARTMENT

37

PURPOSE
To lay down the procedure for procuring/purchasing of items from domestic supplier as well as import.

SCOPE
Procurement items like timber, chemicals, spares, instrument, oils,lubricants,fuel, Equipment, and machinery. Purchase department deals with all purchase of the organization, WIP has two purchase departments: 1. Purchase department-Stores and spares

2. Purchase department-Timber

PURCHASE PROCEDURE

1. Purchase Requisition or Indenting of materials

With the help of purchase requisition purchase officer come to know the type of materials needed in the organization. Purchase requisition is a written request sent to inform the Purchasing Department of a need for material and surplus. Both the stores send Stores Indent, which is duly signed by the Stores Manager and Works Manager and is authorized by GM. The particulars of the stores Indent are entered in the Stores Register in the purchase Register and Purchase Register in the Purchase Department ,with reference to its serial number

2. Purchasing Enquiry
Purchasing enquiry is sending in the prescribed enquiry from quoting the quantity, item, rate/unit etc. After checking whether the required specifications are met or not they invite quotations.
3. Receiving

Quotations

A source of supply of material is selected after the receipt of the Stores Indent. Enquiry is sent and quotations are invited from the suppliers. Usually the Purchase addresses. The received quotation is sent to respective sections. After checking whether their required specifications are met or not, the quotations are accepted or rejected.

38

After receiving the quotation, in order to decide to whom the order should be placed, the relevant file with Stores Indent, enquiry and quotation are sent to Works Department, does final decision regarding the placement of order.
4. Purchase

Order

Once the quotations are accepted, the Purchase Department sends the Purchase Order. Purchase Order is the written request to supplier for specified goods at an agreed price. It stipulates terms of delivery and terms of payment. Three copies Purchase Department sends the Purchase Order. The original order is sent to the supplier. The copies are sent to Accounts/Finance and respective stores

5. Receiving

Materials

When the goods ordered are delivered, the Stores Department will receive the material. Before receiving the materials a detailed inspection is carried out. The invoice is sent to the Production Department ,which will be signed by Workers manager.

Government Orders
Orders are met against enquiry from Railways and Government. includes: Government notification inviting quotation Government sends quotation Government quotation Government carries out inspection Government gives the order The sales will be 95% cash sales and 5% credit sales. In the case of Government orders normal credit period allowing is 30 days. The details of purchases are entered in Purchase Day Book kept in the Purchase Department. The procedure

PURCHASE TIMBER SECTION

This Department does the purchase of timber . There purchase of timber:
39

are

three sources for the

1.Local Purchase 2.Importing or Outside/intersates Purchase 3.Purchasing from Government Sourse (very rarely)

LOCAL PURCHASE
The dealer may be registered or Non-registered. Registered dealer will give Bill to WIP Ltd. In the case of Non-Registered dealer WIP prepares a Bill and pays cash.

LIST OF TIMBERS USED

COMMERCIAL TIMBER Vellapine Kalpine Red pine Mahganauy Penta pine Ekoba Mango Neeli Eucalypts Pali Silver oak Kuacia Jombi Dhavala Chemaka Pecca Teak DECORATIVE TIMBERS Rose wood

INTER STATE PURCHASE OR IMPORTING

In the case of inter state purchase there will be 4% sales tax. The Central State Tax Number should be provided in the Bill. Timber is imported as per import procedure after the MD/ED or an assigned representative does on-site evaluation and selection. The timber logs cleared from the port are trasported to the and log yard and stored in water.

40

PURCHASE GOVERNMENT SOURCE

Now in the case of WIP Ltd this is very rare . It can be said that it is almost nil. For this there will be notification from the Government. The company verifies this
notification and report to the management. If the company is willing attends the auction the Government will give the Bill. The timber is purchased as and when it is available. After purchasing Mopoans take care of the timber. As and when required the timber moves to the Production Department.

PURCHASING PROCESS
The extent control on suppliers and their products/services,is the dependent on the relative importance of the product/services on WIPs operations o Suppliers are selected on the basis of qualification/past experience o Suppliers information is available with respect to records of their qualification and subsequent performance o Suppliers can be re-evaluated and/ other disqualified for non-performance or other justifiablevreasons,during a Manager Review o Material specifications are referred to in enquiries and purchase orders o Emergency purchase can be authorised by Managing Director/Executive Director

Purchasing Information
Appropriate and adequate information about the product is provided in the purchase order or other documents. Requirements for approval of product/process/equipment as applicable,reference to drawing if any ,qualification requirements of personnel if any,are intimated to the suppliers

41

HEIRARCHY OF PURCHASE DEPARTMENT

Managing director

GM(Administration)

Purchase Executive

Assistants

42

SALES DEPARTMENT

43

SALES DEPARTMENT
Sales department is a part of Marketing Department and starts only after the production of finished goods. The WIP products mainly takes the form of DIRECT SALES AND DEPOT SALES and also through COMPANY AGENTS AND REPRESENTATIVES, Agents are paid service charges against sales, there is an agency agreement with the agents.

SALES PROCEDURE
Receiving the order Placing the order Three copies of placement order are maintained, one copy is sent to the works department, one copy to dispatch section and one copy s kept in the Sales Department itself. Preparation of Dispatch Invoice Billing section receives dispatch invoice from the dispatch section. Four copiers are prepared, one is kept in the sales department, if the order is booked, a copy is kept in the hands of transporter, one copy is sent to the party who placed the order and another copy is given to the agent. Preparation of Dispatch Document Dispatch Document are prepared by the Central Excise Department and Billing staff of Sales Department as per Base documents issued by Dispatch Section. The Depots Return Stock Transfer invoice copy after receipt of the material. They are filed in head office depot wise files. Depots supply indented products to the respective customers. Sufficient no. of copies of bills including original to customer and copy to Head Office. Depots sent sales day book.

WIP SALES SUMMARY

When a customer approaches to purchase the products of WIP, they first place a purchase requirement asking about the details of the department and the conditions of sales. Then they place a purchase order specifying their requirements. The sales department then make arrangements to schedule the manufacturing process according to the specification and requirements in the purchase order. They prepare a production order in triplicates, the original is sent to the factory, duplicate to the dispatching section and triplicate is kept by the sales department.
44

After the production of the required quantity of products the dispatch section prepares a dispatch advice in triplicate. The original is send to the factory side, the duplicate is to the billing section and the triplicate is to the dispatch section manager. After receiving it the billing clerk prepares the bills. In case of cash sales, the cashier sends the 1st bill to the customer and the duplicate is kept by the accountant. In case of credit sales the dispatch section prepares a gate pass in order to release the goods from the factory. In short the document connected with the sales are Purchase requisition :-asking about the details of the products and conditions of the sales. Purchase Order:- if the customer satisfies with the conditions of sales he will place a purchase order. Production Order:- it is prepared only at the time of stock out of demanded goods. Delivery Order:- it is prepared when the demanded goods are in stock. Gate Pass:- in case of credit sales in order to release the goods from the factory a gate pass is produced. The Western India Plywood Ltd has branches or depose all over India. The branch managers prepare the intend. The first, second and third copies are send to the head office and the fourth copy is kept by the depose itself. The sales department maintains the following records to keep the daily transactions: Daily Sales Report Sales Day Book Stock and Sales Statement

SELLING TECHNIQUES USED BY WIP

WIP concentrates more on industrial market than on consumer market as its products are semi finished and are used by the industries for further production. 80% of its total sales are of hard boards.
45

The techniques used by WIP are: Direct Sales Agency Service

Direct SalesIt means sales through the company directly. Many of the sales of WIP are through direct sales. The process of the direst sales in WIP are as follows: WIP get enquires from the market through different medias of communication and they sent their quotations to them/ the WIP makes follow p to their quotation and make sure that the customers are interested in their products. When the firm receives a Receipt of Order in which the details of the department and their units etc would have been mentioned, the sales manager makes his order to the production department. Here any specific suggestions made by the customers and the date of issue etc are also mentioned, the sales manager of WIP also follow up with the production department check that the production processes are going well. On completion of the production the sales manager of WIP give a Dispatch Order to the concerned department to make issue of the ordered products and is sent to the respective customers. After supplying the billing is made an invoice is prepared which contains the following details like:

Depot Sales
It means sales through depots. The sales procedure of the depots is same as that of the direct sales. The goods are recorded as sold just on transfer than the sales. The price list in each depot. Which are added with the transportation cost, carriage & freight charges etc, excise duty is not included as they are charged at the time of actual sales , WIP has got depots in all parts of the country.WIP also attends Many Exhibitions and Trade Fair to improve its sales. They also have many agents who are paid commissions on the basis of the sales they market. Some of the organization also act as its agents. They take the company products and makes payment only after the actual sales.

46

HEIRARCHY OF SALES DEPARTMENT

Managing Director

Executive Director

Sales Executive

Sales Assistants

Dispatch Assistants

Depot Assistants

Sales Agents

47

MARKETING DEPARTMENT

48

MARKETING DEPARTMENT

Marketing is the art of selling products. It is also defined as societal process by which individual and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.

WIP MARKETING
Due to the high standard of quality maintained by the quality control department of this company, the product of the company have found ready acceptance in markets both in India and abroad. The company has succeeded in arranging manufacturing programs on the basis if firm orders, which in regularly for all types of products. The plywood manufactured by the company is being regularly used for manufactures of T.V cabinets, bus bodies, building constructions, railways, furniture industry etc. The hardboard is used for partition walls, false ceiling, furniture industry etc. The densified wood is being supplied to the electrical industries in various forms and also to the textile and chemical industries in the form of filter plates and as checkered boards for flooring in buses and railway coaches. The DAP and FRP compounds are being used by the electronic and molding industries. The furniture manufactured by the company is being absorbed the market in drawing rooms,

bedrooms, schools, office etc. The products of the company are being exported West Germany, France,U.S.A Sweden, West Asia and South Asian countries regularly. MARKETING STRATEGY The strategy that has been adopted by the firm is customer oriented WIPs marketing strategy evolves around its product quality. The company does not aim at making profit by competing with the local manufacturers, rather aims at Niche Marketing. Niche marketing is typically a small market whose needs are not well secured. The WIP Ltd follows high quality with high price policy but the consumers are
49

still ready to buy their products at high price because of its quality. So the company mainly aims quality conscious customers. WIP Ltd has three segments namely industrial market, domestic market and export market. About 50% sales constitute industrial sales. WIP has positioned its brands in upper end of market and targets those segments that require the quality it offers backed by willingness to pay. WIPs positioning stands in product performance and resultant value for processing stands in product performance and resultant value for money. It is backed by WIPs commitment to harness the latest technologies in wood processing field and continuously upgrade its process and machinery.

MARKET SEGMENTATION

WESTERN INDIA PLYWOOD is well-established organization manufacturing high quality goods. Company believes in quality. In order to ensure the quality each batch of the products will undergo quality tests. Company has an efficient marketing strategy. The prices of WIPs products are comparatively high, but of high quality. The company is targeted at the high income as well as at the low-level income groups WIP is marketing more than 300 products. Products are segmented as; 1. Domestic 2. Institutional 3. Automotive 4. Export

50

PROMOTION
Long term brand building is undertaken through personal selling and direct mail marketing besides promotional visits by selling agents. In general promotional activities include advertising, public relation and publicity. In the case of WIPs there is a separate department for public relations. But the very important point to be noted is that till now there has been no advertising. The main promotional activities of WIP include conducting and participating exhibitions, trade fair etc.to attract potential customers. They have more of a direct selling approach. It has around 40 sales depots nation wide. DISTRIBUTION CHANNEL Distribution channel is just like a pipeline through which water flows from a source to final destination. Marketing channels make possible the flow of goods from a producer through intermediaries to a buyer. 1. Zero level channel In which the company sends catalogues, price list, data regarding major certification etc.to the potential customers. In direct marketing company gives a cash discount of 5%-10%.

2. One level channel Company Company sales depots agents customers customers

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MARKETING MIX Plywood Section

Product WIP produce a range of plywood to suit specific requirements in both industrial as well as domestic sector of the market. To support its philosophy of providing value added products, only Phenol bonded boiling water resistant plywood and other superior grades are manufactured by WIP. Some of the plywood manufactured by WIP are: BWR treated Plywood conforming to IS:303 BWP treated Plywood conforming to IS:303 Marine Plywood conforming to IS:710 Resin Surfaced Shutting Plywood conforming to IS:4990 Fire Retardant Plywood conforming to IS:5509 Decorative Plywood conforming to IS:1328 Aircraft Plywood conforming to IS:709 PRICING Consequent to superior raw material and additional processing incorporated in the manufacture of WIP panel; they are more expensive than product offered by others and state of the art technology also adds to final product cost. However the additional perceived value arising out of such investment is more than marginal cost addition and hence customers are willing to retain loyal to WIPs products. PLACEMENT WIPs products are sold through exclusive retail outlets, which are either owned by the company or commission agents representing the company. In some areas, established dealers are appointed to increase availability and reach of the products. Company directly deals with customers

SUBSTITUTE PRODUCT WIPs products have heavy duties, but still it has no cost -effective
52

substitutes for the reason that the end user does not allow any compromise regarding its quality.

HARDBOARD SECTION
Product WIPs board WESTON possesses superb physical and mechanical properties and is indispensible to manufactures of automobiles, door pads, shoe heels, clocks, fiber and drum lids among many other application. WIPs hardboard is exported to many countries in the world where it holds its own position against the best brand in the world. The commonly demanded kinds of hardboards are: Standard hardboards conforming to IS:1658 Used for manufacture of furniture, shoe heels etc. Oil tempered hardboard conforming to IS:1658 Used in manufacture of furniture, shoe heels etc. Perforated hardboard conforming to IS:1658 Used for interior decoration, auditorium interiors etc. Pre finished WIPLAC hardboard Used in automotive coach building manufacture of handicrafts, toys PRICING WIP is able to offer its hardboard at a very competitive price due to an efficient production process using the latest machinery. As a result of this, product is being sold at huge premium in the retail market.

PROMOTION The hardboard produced by the WIP is short in supply, but the market it serves is rapidly growing. As a result of this there is absolutely no need for any short term promotion practices.

PLACEMENT Hardboard is a product of mass consumption. So WIP in addition to its own outlets utilizes the established dealer networks in various towns and cities to increase
53

availability and product reach.

SUBSTITUTE PRODUCTS Being the most economical building material used today, hardboard has cost effective substitute material. When its economy is compared with quality control that WIP is able to offer, hardboard offers tremendous value for money.

STRUCTURE OF THE DEPARTMENT

Managing Director

Marketing manager

Marketing co-ordinator

Business manager

Marketing officer

Executives

54

EXPORT / IMPORT DIVISION

55

EXPORT / IMPORT DIVISION

PURPOSE To popularize the products to the international level. The companys Exports are carried out as per the export policy of Government of India and responsibilities lies in the hands of the Import /Export Executive of the company. FUNCTIONS Export functions are carried out by the General Manager and the Import / Export in charge. Quotation or Performa invoice is sent to customs along with the details of the products to be supplied with samples wherever required for the approval. Export orders are obtained against payment through Letters of Credit. (LC) or other terms of payment. Once the price is approved, the customs offer L.C, covering value, quantity, destination of supply, specification etc, and arrange for payments according to the terms. On confirmation of order and consequently on the placement of order and opening of L.C or arranging for payment according to terms of the L.C, foreign buyers product note is sent to the production department to start production strictly as per the requirement for the foreign buyer as per the delivery schedule given by them. As soon as the cargo is ready, necessary clearance is obtained and cargo is moved to the nearest post or the shipment to the destination port. As desired house stuffing is also arranged according to requirements of the import in WIP factory by container from the port to works. The cargo is handed over at the port to WIPs clearing agents and they are undertaking all the customs formalities to get a clarity for the shipment within.

56

The least possible time, including getting back to the ARM from the customs immediately after shipment for submissions to the Central Excise Department. Once the shipment is effected and bill of lading obtained from the customer agent, the shipment documents are prepared for foreign buyer and negotiated with WIP, bankers immediately. After negotiation of L.C of arrangement for payment according to the terms, the payment for the cargo dispatch to the customs is obtained, customs takes realize to the cargo on its arrival at the destination port and also takes recent of original documents from their banker. Proper care and supervision are taken in all process of production, packing and sufficient care taken to ensure the product exported are of top most quality and to keep up its product image high in the international market. The section takes sufficient care to fix the price for export and ensure cost reduction in all stages where ever possible such as packing, transport etc. to obtain better financial return in each and every transaction. Most of the products are exported to UAE, Africa, Australia, China, Sweden, USA, Newzealand, Srilanka and other parts of the world.

HIERARCHY OF EXPORT / IMPORT DEPARTMENT

Export / Import in Charge Export / Import in Charge

General Manager (Admin)

57

STORES DEPARTMENT

58

STRORES DEPARTMENT
WIP has two separate stores-Hard Board Stores and Plywood store. Hard board store keeps all the materials and spare parts necessary for the production of hard board (except timber). Ply wood stores keep all the materials, and spares needed for the production of plywood (except timber). FUNCTIONS To send Stores Indent or Purchase Requisition to Purchase Department To receive materials, spares, tools and equipment ordered by purchase department To ensure inspection of purchase materials To enter the receipts of accepted items in records and return the rejected ones To keep the materials at proper place in the stores To maintain the safety of items from damage, pilferage etc. To issue materials on authorized requisitions Valuation of stock PROCEDURE Indenting of materials Making purchase order by Purchase Department After reaching the materials checking the quality, quality etc. Receiving the materials Materials go to stock DOCUMENTS Stores Indent Goods Inward note positive Recall Goods Register Note Card X Issue Slip Stores Warrant

59

TOTAL QUALITY MANAGEMENT

60

TOTAL QUALITY MANAGEMENT

Western India Plywoods has implemented a quality management system considering the aspects of personnel,inputs,appropriate technology and machinery for the various operational functions such as production,marketing,purchase,maintenance etc. The quality policy of WIP has been defined by the Managing Director as appropriate to the long-term vision, commitment to quality, customer perception of WIP products and other aspects of the industry. The policy is reviewed periodically during management review for its continuing suitability. The policy is communicated to all the employees for a clear understanding and deployment. WIP Ltd. has separate department for total quality management and is well known for its quality throughout the world it has recognition of ISO 9001-2000 for one of best and standardized production system in the world. ISO provides a lot of standard for the quality assurance. WIP has both internal and external auditing system. Internal auditing is done every six month by the concerned department head. External auditing is conducted mainly by the external certifying body. The processes needed for the quality management system have been identified and applied through out WIP. The criteria and methods needed to ensure effective operation and control of the processes are in place

QUALITY OBJECTIVES

Suitable equipment and machinery for process control at all stages Provision of adequate resources including raw material and personnel to ensure consistent product quality. Well-defined process and product characteristics, to enable monitoring, analysis and continual improvement. Communication of requirements of products including customer requirements, statutory / regulatory requirements, aspects of Quality Management System including policy and objectives among all employees.

WORK INSTRUCTIONS
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The requirement satisfied by the WIP in order to get ISO certification is the following

Quality Manual Resource Management Management Review Product Realization measurement analysis and improvement QUALITY MANUAL
The system procedures deemed necessary by the quality management system are referred in this manual. Any other document for planning/operation/control of processes is referred in this manual. The instructions for the specific tasks that are contributing to quality of product are referred to as work instructions. The data generated by implementation of the system are maintained as records, which have been referred to in the appropriate document

RESOURCE MANAGEMENT
WIP management is committed to identifying, providing resources required to sustain the quality management system performance from time to time. Resources needs also include enhance customer satisfaction by meeting customer requirement. adequately skilled personnel are assigned to various operations. and reviewing the and improves its those required to It is ensured that

MANAGEMENT REVIEW
The Management Review is held by a committee headed by the Managing Director/Executive Director, Management Representatives and all Heads of Departments. Management Review is performed once in six months and the minutes of the review meeting are maintained. The Management reviews the continuing suitability of quality policy, objectives and overall quality management system with respect to information on performance and feed back from various review inputs.

PRODUCT REALIZATION
Realizing the product that meets the requirements involve translating the customers needs and schedule into product requirements within the facilities available, carrying out various production operations and ensuring that the
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acceptable products reach the depots/dealers and customers. Systems are in place to provide adequate confidence about these functions.

ISO CERTIFICATION
The main objective of International Standards Organisation is to produce and publish international standards. The WIP Ltd is an ISO certified company. The ISO certification was awarded to the company IN 1996 for the quality management system of the hard board and WIPLAC prefinished boards. In May 1999 for another three years and the company has also received the same certification for its plywood, classified wood, flush loan and block boards. .

STRUCTURE OF TQM

MANAGING DIRECTOR

Management Representative

Quality Engineer

Trainee

63

RESEARCH AND DEVELOPMENT

64

RESEARCH AND DEVELOPMENT DEPARTMENT

The WIP has an in-house R&D Department approved by the Department of Science and Technology and Council of Scientific and Industrial Research. (CSIR). It has the required analytical, conditioning and testing facilities for product or process evaluation, rigid quality control and new technology analysis. The testing equipment available consists of the standard machines for conducting physical, mechanical and electrical test of all kinds. They include a weather-o-meter in which the extreme weather conditions of the world can be simulated in accelerated manner in order to arrive at quick inferences. Karl Fischer, titration equipment, Torque Rheometer and Permeable gel, Chromatogtaph are available in the testing lab of WIPsR&D division for accurate analysis of rawmaterail and finished products, the products developed and modified by the R&D division include DAP (Di-Allyl phthalate) Moulding powder and fibre glass reinforced plastic, sheet Moulding Compound (SMC). which find use in the manufacture of sophisticated products required in highly specialized electrical and electronic applications.SMC can also be overlaid on Plywood and Hard board. The manufacture of DAP moulding has been achieved for the first time in South East Asia in the WIP. This has put India on the road to self-reliance in the material of strategic importance. .

Material Testing Lab

WIP possesses a full-fledged material testing lab which is monitored by its government recognized R&D division. The Lab is equipped to perform various physical, mechanical and electrical test specified in the IS specification. Every day random samples drawn from panels produced in WIPs plants are tested for conformance to the relevant IS specifications. The integrity and quality of WIPs testing division can be gauged by the fact that representative sampes drawn from material to be supplied to the Indian Railways, Defence and other government organizations are tested on its own material testing lab under the supervision of officials deputed by the respective inspection Agencies

65

FINANCE DEPARTMENT

66

ACCOUNTS /FINANCE DEPARTMENT

THE WIP LTD IS A WIDELY HELD PUBLIC COMPANY. Its share is listed in Cochin and Madras Stock Exchanges. On 31st March 2003 Company has 13
Crores Paid Up Capital of which 8.5 Crores are Equity Shares and the remaining are Preference Shares. The Western India Plywood Ltd follows the Double Accounting System. Various accounts are prepared by them to keep their transactions. The following are the main types of accounts kept by Western India Plywoods Ltd. Journal Ledger Sub ledger To record receipt and payment they maintain 4 records. These include the following Accounts. Total debtor account Total creditor accounts Purchase day book Sales day book They also prepare a commission register. For charging depreciation against fixed assets straight line method was used. WIP publishes Annual Report every year, which includes the Profit and Loss Account, Balance Sheet, Accounting Policies of the business etc. SOURCE OF FINANCE 1. 2. 3. 4. Shares Reserves and Surplus Loans Secures loans Unsecured loans

ACCOUNTING PROCEDURE
WIP follow double accounting system and also maintain four types of journals. They are; Cash payment book (CPB) Bank payment book (BPB)
67

Cash receipt book (CRB) Bank receipt book (BRB) For these four types of journals, a sub ledger is prepared. This sub ledger are classified into three; Accounts Receivable Book (ARB) Accounts Payable Book (APB) Personal ledger (PL) At the end of every month the sum total of the sub ledgers are transferred to the main ledgers. Then there should have the equality in the amount of the sub ledger and main ledger, i.e. total amount of sub ledger= Total Amount of Main Ledger The next accounting procedure is preparing the trail balance. At the end of every financial year, profit and loss account and Balance Sheet is prepares, from which financial position of WIP is noticed

CAPITAL STRUCTURE
The capital structure Western India Plywood Ltd was made up of equity shares and preference shares having value of Rs.100 each. They issue only redeemable preference shares. They also issue bonus shares at the time of high profit. Their shares are registered in the madras stock exchange. Boards decision. They transfer a certain percentage of profit to the following reserves Export-profit reserve Share premium reserve General reserve

Loans:- the WIP Ltd has the following Loans for financing the long term requirement
of funds. Secured loans Term loans Foreign loans overdraft Long-term loans

Foreign Currency Transactions

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Foreign currency liabilities outstanding as at the balance sheet date are translated to exchange rates prevailing on the date and the loss or gain arising out of the said transactions relating to acquisition of fixed assets is adjusted to the cost of relative assets and others are charged to the profit and loss account

Revenue Recognition
Revenue from sales has been recognized on raising of sales invoices on respective parties and is inclusive of excise duty but exclusive of sales tax.

DIVIDENDS
Due to shortage of operating profit, directors are not recommending any dividend for the accounting year ended 30-09-10

Retirement Benefits:
Contribution to Provident Fund is made monthly, at the rate prescribed by the Employees Provident Fund Act and charged to the Profit and Loss account on accrual basis The company has an arrangement with LIC of India under the Employees Group Gratuity cum Assurance scheme to administer its gratuity scheme and the annual premium paid/payable is charged to the Profit & Loss Account. The accruing liability for Gratuity to employees is ascertained on actuarial basis and provided for. Leave encashment benefits payable to employees including the accrued thereon (taken on estimate basis) are charged to the Profit & Loss Account.

Income Tax
Provision for income tax is made based on the assessable income as computed in accordance with the provision of the Income Tax Act, 1961. Timing differences between accounting income and taxable income capable of reversed in subsequent years are recognized as deferred tax. WIP publishes Annual Report every year, which includes the Profit and Loss Account, Balance Sheet, Accounting Policies of the business etc.

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BALANCE SHEET AS AT 31.03.2011

As at 31.03.2011
(Rs. in thousands)

Sch. No.

As at 31.03.2010
(Rs. in thousands)

I.

SOURCES OF FUNDS 1.Shareholders Funds

a) Share Capital b) Reserves & Surplus

1 2 3 4

115,873 205,867

115,873 187,415

2.Loan Funds
a) Secured Loans b) Unsecured Loans

II.

3.Deferred Tax Liability TOTAL APPLICATION OF FUNDS 1.Fixed Assets

a)Gross Block b)Less: Depreciation c)Net Block d)Capital Work-in-Progress

454,314 6,772 55,914

470,370 7,132 63,773

838,740 5
1,221,538 917,303 304,235 691 11,619

844,563
1,204,199 871,068 333,131 6,292 10,219 361,134 121,459 121,836 11,114 29,712 645,255

2.Investments 3.Current Assets, Loan and Advances

a)Inventories b)Sundry Debtors c)Cash and Bank Balance d)Other Current Assets e)Loan and Advances

6 7

345,014 116,654 162,839 10,866 38,054

Less Current Liabilities and Provisions

a)Current Liabilities b)Provisions

673,427

104,150 47,082 151,232 522,195

99,642 50,692 150,334 494,921

Net Current Assets TOTAL

838,740

844,563

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Bankers

(The WIP has mainly 7 banks)

SBT State Bank of TRAVANCORE UBI (Urban Bank Of India) IB (Indian Bank) SYB (Syndicate Bank) SBI (State Bank of India)

CB (Canara Bank)

STURCTURE OF THE DEPARTMENT

Managing Director

Company secretary

Chief Accounts Officer

Finance Manager

71

Cashier

SWOT ANALYSIS

72

SWOT ANALYSIS

SWOT stands for Strength, Weakness, Opportunities and Threats. Strengths and Weakness are the internal factors of the company where as Opportunities and Threats are external factors. SWOT Analysis is the tool for auditing an organization and its environment. It is the first stage as planning and helps marketers to focus on key issues have been identified, they feed into marketing objectives. It can be used in conjunction with other tools as audit and analysis.

STRENGTH

The company has been maintaining a high quality for its products and as its products are well accepted in the market by quality conscious customers, it does not anticipate any marketing problem. They are considered to be the The Leaders in Quality Since 1945.

The company has a well established R&D unit, one of the best kinds in the wood based industry.

The company is duly equipped to develop new products to meet the requirements of the market.

The products of WIP are certified by ISO.

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WEAKNESS
There is an acute shortage of good raw materials which has forced the company

to import a substantial portion of its main raw material viz. timber, which has also seen a considerable increase in price. Lack of good distribution network as compared to the competitors.

Promotion of competitors is better to that of WIP. The Company concentrates only on Industrial Market.

The price of WIPs products is high as compared to its competitors.

OPPORTUNITIES

The company is a leading supplier to Railways, Defense, Automobile, Electrical, Transport, Civil Aviation and other industries.

Several products have been developed for the specific requirements of the Automobile, Transport and communication sectors such as Densified wood etc. and these products which have technological advantages over competitive products.

The Company diversified from the production of chest and commercial plywood to manufacture Decorative Plywood, Block Boards, Shuttering Plywood and Aircraft plywood.

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The products of the Company are being exported to Germany, France, U.S.A, Sweden, West Asia and South Asian countries.

THREATS

The high power tariff and increasing cost of furnace oil and other petroleum products and chemicals.

There are many medium scale and small scale plywood industries. They fix low price for their products.

In some product ranges, imported items are available at lower cost than is currently produced in India.

In general, the working of the company has been adversely affected by the effects of Globalization.

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FINDINGS

Because of the increasing demand, now the company has changed their distribution system in order to reach more parts of the state.

Due to the high standard of quality maintained by the company, its production costs are relatively high so that company facing a serious problem and wants to reduce the price. The companys various operations on raw material performed in sequence and the machines are placed along the product flow line. Because of this, the companys products get completed in lesser time and also have a smooth and continuous work flow.

The company gets 25% of the profit from the exporting. Company concentrate all over the market. Still the company is not computerized fully. The company maintaining 0 % wastage. Promotional expense is very less. WIP focus on quality

SUGGESTIONS
It is desirable to launch an advertising campaign to attract more customers It is advisable to maintain and efficient market intelligence system and advice mgt of the changing needs of the market. The company may introduce more measures such as fencing of machineries, which will protect the workers from accidents. The company may prepare budgets for each activity which will provide it a better control and coordination mechanism. This will aid in reduction of production costs. The company can save time and cost through the computerization. The company have to follow more safety measures because there is a risk of fire in the factory layout.

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CONCLUSION
Western India plywood ltd., the second largest wood processing industry in South East Asia, as a bright future in this field. During the running period since 1945, the co. achieved various milestones. The high-end production technology of WIP is well acknowledged among the wood processing industries in India. The WIP Ltd., achieved 100% utilization of raw materials due to its integrated production system. Therefore, it would be apt to call WIP Ltd., a company with a conscience . WIP Ltd., stands for superior product performance and provides value for money to its customers. It is b acked by WIPs commitment to harness the latest technology in wood processing industry and continuously upgrade its processes and machinery. Due to the high quality maintained, the company has found aready market both India and abroad. The company does not aim at competing with the local manufactures but wants a main player in the plywood export. Now the company is producing more quantity is hardboards than plywood, because of the development of technology. Presently the company is operating in loss- the major cause being globalization. Another reason is the pricing policy of the company. The price level of the products is higher as compare that of other companies manufacturing similar products. The company should try to create brand awareness in the local market by advertising in medias and conducting exclusive exhibitions etc.

BIBLIOGRAPHY
1. www.wipltd.com 2. K. Aswathappa, production & operation mgt, 2007 3. K Aswathappa, human resources and personnel management, 2007 4. Khan and Jain, financial management
5. Quality Management hand book- K K Anand

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