OST: K.K.

P Spinning Mills Limited

ORGANISATIONAL STRUCTURE TRAINING

In

K.K.P Spinning Mills Limited

Tamil Nadu

REPORT submitted in part fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Christ University Institute of Management

Kengeri campus

By

Indirapriyadarsini S J

Registration No: 1420145

Academic Mentor: Ashish J Shah

2014
OST: K.K.P Spinning Mills Limited

Executive Summary

Organisation is an environment where a set of people work together to accomplish a set

of goal within a time frame. Management studies is all about the study of how an organisation
acts, what is its nature, who lead it, who are all participating, what is the nature of participants,
different functions and roles to be played by the participants etc., So prior to enter into
management studies it is recommended to undergo a organisation structure training (OST) in a
manufacturing company by the way one could come to know about business environment. In this
prospect I did my OST in K.K.P Spinning mills limited, Namakkal- Tamil Nadu for a period of
30 days. First I got permission in the company with the help of letter given from Christ
University Institute of Management (CUIM) which indicated the need of undergoing the
training. I got permission and moved to the factory unit where I was supposed to observe the
manufacturing process of yarn from the raw material which was cotton over there. I was made to
know about companys mission, vision, objectives, different functional groups, their role and
importance, policies followed by them etc., I observed the functions of key departments of an
organisation such as finance, human resource, purchase, production, stores, maintenance, quality
and marketing. From the observations made I could able to arrive some key points on SWOT.
OST: K.K.P Spinning Mills Limited

Contents

1. Introduction
2. Industry overview
3. Organisation overview
4. Discussion and learning
4.1 Policies and procedures
4.2 Management process
4.3 Functional departments and their roles
5. Findings
6. Conclusion
7. Works cited
OST: K.K.P Spinning Mills Limited

Introduction

In this competitive world everyone is intend to accomplish their goals in positive manner
within the time bound. For the betterment of his own, he is getting engaged in a job in a business
environment based on his qualifications. Such that way, groups are formed. There the
organisation forms. Simply organisation is a consciously coordinated social unit, composed of
two or more people that functions on relatively continuous basis to achieve a common goal or set
of goals. Management of such social unit is not an easy task. So to tackle all these things, people
are being trained in management schools. It would be better to get exposure to the business
environment before getting into MBA. So I was supposed to do my training program in a
manufacturing company to come to know about the structure, functions of an organisation and its
various departments in a business environment.
OST: K.K.P Spinning Mills Limited

Industry overview

In India, textile industry stands next to agriculture. It is one of the oldest industries in
India that accounts for11% of total industrial production, 14% of manufacturing sector. It
contributes 4% of GDP and 12% of countrys total export earnings. India is the highest exporter
of yarn in international market, especially contributes 25% of share in world cotton yarn exports.
It provides employment to 35 million people across the country that is next to agriculture. The
trend in yarn production goes on increasing. Government also takes lot of initiatives in this sector
which are reformist in nature.

In the world, people select their occupation based on the circumstances in which they live
and the resources availability. In the olden days human being lived in the river banks, how have
taken agricultural as their occupation. Because they can easily get the irrigation facility.
Likewise, many cities in India are famous for ventures. Such as Hyderabad for pearl jewels,
Jaipur for diamond cutting. This is at the all India level. If we consider Tamil Nadu, Erode is
famous for handlooms sarees. Salem is famous for stainless steel items, and Namakkal is famous
for road lorry transports operations, and egg and chicks production.

Namakkal is the place where road transports, operation, poultry and cattle feeds
productions are the main ventures of the people. It is because of the climate condition of the city
if this above those business ventures. In addition to that slowly textile business is also flourishing
in that area. It may because of the impact created by the nearest city.

Organisation overview
OST: K.K.P Spinning Mills Limited

I had an opportunity to undergo 4 weeks of OST in K.K.P Spinning Mills Limited,

Namakkal in order to introduce myself to the business or company environment. The K.K.P
Spinning Mills is founded with the initial capital of 1310 spindles. Afterwards, the mills have
raised its capacity of the spindles to 37000. Hence it is a medium sized spinning mill. They make
yarn according to the customer requirement from cotton and they also have weaving units to
make bed sheets etc which are all called as made ups.

Vision
To strive for excellence through commitments, integrity, honesty and team work.
Mission
To be a model amongst the textile spinning, capable of producing high quality blended
yarn for knitting and weaving.
Complete Satisfaction of Buyers/Consumers - Motto
Manufacturing of blended yarn as per the customers requirements and market demand.
Keeping pace with the rapidly changing technology by continuously balancing,
modernization and replacement (BMR) of plant and machinery.
Enhancing the profitability by improved efficiency and cost controls.
Betterment of Mills Employees as quality policy.
Protecting the environment and contributing towards the economic strength of the
country and function as a good corporate citizen.

Under the control of the concerned managing director, the factory managers and the
marketing officers are working. Factory and marketing activities are streamlined and performed
through different sections of the departments. The departments are splitted into different section
based on their respective activities under the direct control of the quality control officer, assistant
manager, and personal officers. The team supervisors manage the workers. Thus the scale of
authorities of the mill is appropriately designed which facilities the effective utilization of its
resources.
 OST: K.K.P Spinning Mills Limited

Chart showing management of K.K.P spinning mills limited

MANAGING DIRECTOR

FACTORY MANAGER
Quality System Co- Marketing Officer
Ordination
TECHNICAL MANAGER
Data Entry Operator Sales Representative
SPINNING MASTER

Assistant Assistant Quality Personal Store Electrical Cotton Marketing

Spinning Spinning Assurance Officer Inventory Supervisor Supervisor Assistant
Master Master In-Average

Production Maintenance Quality

Training Stores
Supervisor Assurance
Supervisor Officer Assurance
Dep-
Supervisor
 OST: K.K.P Spinning Mills Limited

Chart showing the administrative authorities of K.K.P spinning mills limited

CHAIRMAN

Board Director

Managing Director

Factory Manager
Administration Officer

General Section Office Section Common Service Assistant Assistant

Labour
Factory Welfare Factory
Manager Officer Manager
Unit A Unit B
Head Clerk Accountant Driver
Sales Clerk Casher
Purchase Clerk Casher Assistant
OST: K.K.P Spinning Mills Limited

Discussion
Policies and Procedures

The companys watchwords are quality, time and price. Main aim of the company is to
satisfy the customer by supplying quality products at reasonable price in stipulated time. Their
strength is adopting new technology and acquiring new machines at required conditions. KKP
group believes in overall growth of the industry by extending the service of sophisticated
laboratory, computerized testing facilities and trained technical personnel to the manufacturing
unit efficiently and effectively to the surroundings. Many production units and buyers are
utilizing these facilities and are satisfied with the results. The key result areas of the organisation
lie in maintaining the quality of product, providing the service at the right time with affordable
price which enables the organisation to establish strong and long lasting relationship with the
client. In order to promote the above mentioned success notes, importance is given in
emphasizing the need of employees with respect. All the above things help the organisation in
attaining the highest recognition in all aspects.

Following are the policies and procedures followed by the company

Policy against child labor and remediation procedure

Forced and compulsory labor policy
Recruitment policy
Employees registration/termination and discharge policy
Policy against discrimination
Health and safety policy
Emergency evacuation procedure
Environment policy
Wage administration policy
Working hours and over time policy
Grievance handling policy
Disciplinary procedure
Freedom of association and the right to collective bargaining policy and procedure
OST: K.K.P Spinning Mills Limited

Management Process
The top management is directly involved in carrying out the management process which
may include resource planning, recruitment and training, selecting representatives etc. Main
processes are sales / marketing, purchasing (cotton), production process. The supporting process
include quality assurance, calibration, stores/cotton go down/yarn go down, machine
maintenance, electrical maintenance. Documents are maintained on a systematic manner.
Management review meetings are held on a regular basis.

Functional departments

Finance
Human resource
Purchase
Production
Stores
Maintenance
Quality
Marketing
Finance
Finance is the life blood of an organisation. Without finance we cant do anything.
Finance is the only part which brings together various segments of an organisation which helps
to attain the organisational goals.
Finance manager is the top authority in financial work. He has equal rights and
responsibilities in general matters like the managing director of the company. The finance
manager has senior assistant and systems officer under him to assist in his daily activities. The
accountant is responsible for the daily financial transactions of the organisation and payroll
management.
The salary details are given by human recourse department. They distribute the salary to
all the employees. In company they provide a provident fund to the employees. If they
continuously working means they provide 12 percent of salary.
OST: K.K.P Spinning Mills Limited

Records in finance department

The records which are maintained under finance department are cash book, bank book,
sales day book, credits ledger, general ledger, purchase book, petty cash book, and trial balance.
Department chart

GM

AGM Accounts

Manager

Assistants

Role of finance manager

The finance manager main role is controlling the cost of production and reducing the
expense.
Monthly conducting the staff meeting
Monthly prepare the factory expenses report
Preparing a weekly wages providence record (Labor)
Monthly prepare a salary providence record (Staff)
Cost controlling
Cost reduction
Credit policy - The Company is using only credit policy. Its one of the bank transactions.
All payments are made through cheque. Expenses and sales also should be a bank transaction.
Credit given to customers for the period of 30 days and collections are made through agents.
Methods of accounting
The book of accounts is maintained on accrual basis except for certain items such as
Bonus, Compensation etc., which are accounted for as and when paid.
OST: K.K.P Spinning Mills Limited

Group insurances
In company they maintain the group insurances. In that they take certain amount from
employee salary. In case of staff they take Rs. 30 per month in their salary. In case of workers
they take Rs. 20 per month in their salary. In case if any major injury happen means they can get
amount up to Rs. 3,00,000 from group insurance.
Purchases
The purchasing activity covers raw materials (cotton and selected components and
associated have been established on the basis of past experience and from the purchasing
specification of selected components of associated). Purchase containing specification of cotton
are reviewed and approved by the managing directors. The selected components of associated
purchasing documents, containing specification are scrutinized by the technical manager /
factory manager and approved by managing directors / directors.
OST: K.K.P Spinning Mills Limited

Function for cotton purchase of K.K.P spinning mills limited

RECEIVING OF SAMPLES

MANUAL TESTING MACHINE

PURCHASE APPROVAL LOTS

RECEIVING LOTS
NO YES

TESTING

COMPARE WITH

ACCEPTANCE REJECT

PAYMENT

Purchase is divided in to two parts. One is raw material and the other one is accessories.
Cotton is the primary raw material in the yarn Production. Various varieties of Cottons are used
in the Spinning Process. They are purchased from within Tamil Nadu and also from nearby
states. Cotton is transported in the full pressed bale form. One bale weights around 165 kgs.
OST: K.K.P Spinning Mills Limited

Normally cotton rate is fixed per candy Basis. One candy is equal to 355.6 kgs. Additionally
freight charge, insurance and tax are also added along with cotton spot rate.
Sampling
The first important procedure of purchasing is sampling. Spinning mills are purchase various
quality of materials for the production from the vendors. Taking some samples and inspects the
materials quality. The accepted vendor will be sent orders for the supply of cotton. Cotton is
purchased on contract basis. The raw materials are consumed through the following ways.
Receiving sub contractors profile
Spot purchase
Basic sample purchase
Telephonic purchase
The various types of cotton used are A90, A87, P 90, P43, P53, P48, K48 and K53. Most
preferred varieties are A87, P43, and K48.
Testing
The following are the tests being followed
Classimat
UT4 and Harriness
TPI
HVI 900
AFIS
In classimat test is used for finding the strength, thickness, and thinness of the cotton. In UT4
and Hairiness test is used for finding the yarn nep. In TPI test is used for checking the twist. In
HVI 900 test is used for checking the color of the cotton. And also checking the 1 nep cotton
length. In AFIS test is used for finding the cotton nep.
Production
The production is the process of transforming raw materials or purchased components
into finished products for sale. Thus any process involving the conversion of raw materials and
components into finished goods is called production.
OST: K.K.P Spinning Mills Limited

Department chart
Factory Manager

ASM

Supervisor

Workers

Roles of ASM (P) Assistant Spinning Master (Production)

Production report checking.
Production methods / techniques following.
Production plan preparation.
Department maintains.
OST: K.K.P Spinning Mills Limited

The company follows the below process to produce yarn

Production process

Raw Material

Cotton

Mixing

Blow room

Pre Comber Drawing

Carding
Breaking drawing Unilap
Comber
Finisher drawing
Drawing

Simplex

Spinning

Cheese winding Cone winding Reeling

Doubling
Packing Bundling

Winding Reeling
Dispatch Dispatch

Packing Bundling

Dispatch
OST: K.K.P Spinning Mills Limited

Stores
Stores department function which deals with the storage of good. This department has the
necessary spare parts which are required for spinning.
Warehouse department chart

Warehouse

Manager

Supervisor

Workers

Spare parts issue

If any department is in need of any materials means they purchase from market and give
it to respective department. For that, material requirement slip should be filled and to be sent to
various authorities to check the need of that material. After checking they will issue purchase
order. Then the purchased material is checked with order details and issued to the concerned
department.
Maintenances
The following roles are responsibility
Machinery should be maintain
Machinery parts are ordered and get for the production department.
Monthly once cleaning the machine.
Identifying the break down parts and changing the new parts.
Making schedule for machine cleaning.
OST: K.K.P Spinning Mills Limited

Human resource department

Human Resource Department is an important department for the management of
personals. Human resource management is about staffing, planning, organizing and controlling
the various operating functions because organisation is being run with the help of man power
without which machine power cannot be operated.
HR department chart

HRM

HRD

ASM (HRD)

ASSISTAN
Roles & responsibilities
T
1. HR record maintenance
2. Recruitment
3. Selection
4. Canteen maintenance work supervising
5. Payroll software
6. Labor problems
7. Salary list preparing / issuing
Training Salary
Per day Rs. 120
Per Month Rs. 3120
Experience candidates
According to their experience and performance.
Roles & responsibilities of the head department
1. Application Filling.
2. Recruitment & Selection Process.
3. Department Allocation.
OST: K.K.P Spinning Mills Limited

4. Application Filling (file)

5. Monthly Card Preparing.
6. Attendance Maintaining.
7. Overtime Wages Preparations.
8. Salary List Preparation.
9. Salary Issuing.
10. PF Register Maintains.
11. OT Slip Issuing.
12. Canteen issues /Purchase Details.
13. Canteen Token Maintaining/Issuing.
Motivation
Monetary motivation & non monetary motivation both are followed by the company.
Monetary motivation means like salary.

Non monetary motivation means:

Promotion
Department.
Reward & recognition procedure
Reward may be given to the employee after attaining the targets/production level.
Performance evaluation programme
After training programme, employees are evaluated by the appraisal officer/department
heads.
Shift timings
I Shift 7.30 Am to 3.30 Pm
II Shift 3.30 Pm to 11.30 Pm
III - Shift 11.30 Pm to 7.30 Am
General Shift 8.30 Am to 4.30 Pm
Usually freshers timing is 7.30 Am to 3.30 Pm.
Break and lunch timings
I Shift 12.00 Am to 1.00 Pm
II Shift 7.00 Pm to 8.00 Pm
OST: K.K.P Spinning Mills Limited

III - Shift 2.00 Am to 3.00 Am

General Shift 1.00 Am to 2.00 Pm
Trainings
Newly joining workers are trained by experienced trainers. Various training methods also
used for this purpose like On the Job Training and Off the Job Training. Basic training like
safety, job oriented, identification, ISO, fire safely, first aid, 5S etc are given.
Attendance maintenance
In a company nearly 1000 employee are working. For the entire group the attendance is
maintained by human resource department. Each employee should be compulsorily present for at
least 26 days per month.
Overtime wages
If there is shortage of employees in second shift means they ask the first shift employees
to run the second shift if they are interested. Those employees are paid for their overtime wages.
Canteen facility is provided for lobours.
Weekly off
Weekly off was allocated by the HRD people based on the Labour shortages. But they
have already discussed with the department heads about the weekly off details.
Salary details
Worker basic salary is Rs. 180. Experienced persons salary is fixed by the management
based upon their Skills.
Bonus
If the worker continuously works for 320 days he will get full bonus. If they work below
320 days they get only 8.33 percent.
Leave procedure
Workers should take leave after the approval given by HRD and the Manager. Leave
format is given by HRD peoples. Workers should get signature from their superiors.
Transport facility
Transport facility is offered to workers at low cost. Nearly 50 km surroundings are
covered by the company transport. 7 buses are used for this purpose.
Medical facility
OST: K.K.P Spinning Mills Limited

Free Medical facility also provided to workers. In the case of major accidents, injury
compensation also given to the particular worker or to his family members. First aid is given to
the worker when he/she is injured. Every people have the awareness about First Aid. In every
department First aid boxes are there.
Safety
Safety methods and safety instructions are educated to the workers through safety
training class. Safety instructions are displayed in every department. Safety equipments are given
to the workers Example: Ear Plug, Mask.
Dress code
Workers should wear uniform and caps during the shift time. Without wearing uniforms,
workers are not allowed to work.
Ladies: Blue shirt and Black Cap
Gents: Blue shirt and Navy Blue Cap
Employee welfare schemes
Organisation provides welfare facilities to their employees to motivate them. The
employee welfare schemes, the statutory schemes are those schemes that are compulsory to
provide by an organisation as compliance to the lows governing employee health and safety.
Nature of organisation leadership
Line authority
There is no authority given to the employer
Responsibilities only given to the employer.
Marketing
Marketing plays an important role in the organisation. Marketing means buying raw
materials and selling goods but also marketing include financing, risk bearing, warehousing and
after sales services etc. Market is the place where the buyer and producer meet each other.
OST: K.K.P Spinning Mills Limited

MARKETING DEPARTMENT CHART

GM

AGM Exports AGM Imports

Merchandiser Merchandiser

Executives Executives

Roles and responsibility

Analysis the marketing condition
Customer needs analysis
Handling of customers complaints
Getting feedback from customers
Sending the report to MD about the product condition in the market.
Functional heads of marketing manager
Development of business and increase market share
Costing and pricing of products
Handling of enquiries and order processing
Getting feedback from customers.
Decide marketing strategy of organisation and also contact customers to understand
their requirements and solve their problems.
Pricing strategy
They are following the Going-Rate-Pricing strategy for the product. It means the price
level is based on the competitors pricing. They may charge the same or less than the major
competitor pricing level.
OST: K.K.P Spinning Mills Limited

Sales
The next continuous process of the firm is sales. Sales are the most important part of
every business. It means transfer of goods from one person to another is the course of business
for cash, differed payment also. The effectiveness of sales in the organisation is the important
factor for the progress of the firm because the final figures of profits ultimately depend on the
efficiency of the department.
Mainly sales in this firm were made under the supervision of the managing director of the
firm. Brokers, agents etc play a good role between the buyers and company. Sales are made at
various places in Tamil Nadu and other parts of India. Sales are also made to foreign countries
like Singapore, Malaysia etc. Normally the goods sent to the domestic areas are through
roadways, the sales done to the foreign countries are sent through seaways. Both cash and credit
sales thay prefer.
Local buyers
Salem
Erode
Coimbatore
Tirupur
Thiruchengode
Export marketing
There are two types of export marketing:
1. Direct Export Marketing
2. Indirect Export Marketing.
They deal in indirect export marketing.
Marketing channel
The marketing channel is done by giving advertisement (Media, Newspaper) and through
merchandiser. Merchandiser may sell the good to shop and sell to wholesaler.
Sales promotion
If bulk purchase is made they reduce certain amount of money.
Electrical department
ES Electrical Supervisor takes care.
Electrical Repair Work
OST: K.K.P Spinning Mills Limited

Pipe Line / Hose Line/Wire Lines Checking.

Electrical Problems Attending
Electrical Products Ordering Receiving.
SWOT
Strengths
1. Abundant Raw Material Availability helps company to control costs and reduces the lead
time across the operation.
2. Availability of Low Cost and Skilled Manpower provides competitive advantage to them.
3. Availability of large varieties of cotton fiber.
4. They are exporting to various countries.
Weaknesses
1. They are highly dependent on cotton.
2. Lack of technological development that affect the productivity of the company.
Opportunities
1. Growth rate of Domestic Textile Industry is getting higher annually.
2. Large, Potential Domestic and International Market.
3. Product development and diversification to cater domestic and global needs of
consumers.
4. Greater Investment and FDI opportunities are available.
Threats
1. Competition from other parts of places, especially, Tirupur, Coimbatore.
2. Continuous quality improvement is need of the hour as there are different demand
patterns all over the world.
3. Labor laws and Environmental laws.
4. To balance the demand and supply.
Future plans for the growth of organisation
1. Introduction of open end spinning (OE)
2. Improvisation to 100% compact yarn
3. Improvisation to 100% auto doff system
OST: K.K.P Spinning Mills Limited

Findings
The organisation structure is found to flat. There are only few levels in hierarchy. So the
performance results will be good. Appropriate number of labours is working so enough to handle
the work but employees feel that the wage is low. Each department has its significant role to do.
The works are getting done within stipulated time by the efficiency of managers. Most
employees are not wearing the face mask because they feel uncomfortable to wear. It will lead to
serious health consequences. So the human resource department should take care of it.
OST: K.K.P Spinning Mills Limited

Conclusion

The practical training undergone in K.K.P Spinning Mills has given me the opportunity
in knowing the behavior of an organisation and its performance. This practical experience has
given me an idea about the concern in view of corporate sense.

This training period gave knowledge about various activities of business. The interaction
with staff members and workers gave me a different experience. It gave the idea about
relationship between subordinate and superiors, company policies, procedures, rules and
regulations various department activities of the organisation. I observed a good working
environment prevailing inside the organisation.

Management and workers are mutually dependent on each other to overcome the
changing conditions, which indicates the existence of cordial relationship among them but it
takes much effort to achieve its target to in the path of progress efficiently and effectively.
OST: K.K.P Spinning Mills Limited

Biblography

Indian Textiles Overview, n.p, n.d. <http://www.citiindia.com/>

Overview of the textile industry, n.p, n.d. <http://www.dnb.co.in/>

Textile-industry-in-india-an-overview, n.p, n.d. <http://www.mapsofindia.com/>

Robbins, Stephen P,et al. Organisational Behaviour. India: Dorling Kindersley, 2013. Print.

<www.kkpindia.in>