CHAPTER 3

COMPANY PROFILE

23
 3.1 ABOUT THE ORGANISATION

The company is a wholly owned subsidiary of WFB Baird and company Ltd,
Northern Ireland, U.K. the patent organization which is well known by its brand
name Baird Mcnutt, is privately owned business founded in 1912 as a speciality
manufacturer of linen blend appeal fabrics. Baird is the largest producer of Irish linen
fabric in Europe. Baird Mcnutt is a vertical manufacturer and controls the complete
production from flax fibre to finished garments. Baird Mcnutt is the combination of
Baird who deals with leading finished work and Mcnutt who offers design services.

The parent company Baird Mcnutt is a privately owned company who not only
manufactures linen fabric but also produces world class linen yarn for weaving,
knitting and industrial purposes out of finest quality of west European flax. Baird
Mcnutt spin, weave, dye and finish linen for international fashion market by bringing
the expertise learned through three generations of weaving the linen fabric. All the
major international garment makers find a place in its client. The function of parent
company is to cultivate the flax plant.

Manufacturing facilities are located at Downing, Ireland, Kells, Northern Ireland,

Bulkow, Poland and in India and kochi in marketing offices in U.S.A, U.K, Germany
and France. Hence Baird is surving as an independent lender in producing 100%
linen fabrics.

WFB Baird is vertically integrated textile processing unit whose main function is to
process the raw material, by separating the fiber from weaving purpose and dying the
linen for market purposes. The raw material is supplied from the parent organization.
The processing unit is situated in cochin (CSEZ) where only weaving and dyeing of
linen fabric takes place.

WFB Baird is vertically integrated textile processing unit having a world class in
house facilities in manufacturing 100% pure linen, cotton linen, Yard dyed, natural
fabric and bed spreads. With a clear vision a sense of purpose and sheer hard work

24
guided by a team of professionals and steered by an enterprising management, WFB
Baird continues to diversify its products and extend its customer reach.

It was found in the year 2005, It has grown consistently and today reached $250
million and with new capacity additions. Baird is planning to reach us$700 million
by the end of 2020. Baird Mcnutt decided to add the state of art weaving and
processing and finishing capacity of 45000 metres per day, out of which 20000
metres piece dyed and balance 25000 metres yarn dyed and natural fibre can be
processed with the help of state of the art machines. All actions are oriented towards
offering complete solution to customers. It also has the state of the art back up
facilities for quality assurance and colour management including mathis pilot plant
which enables it to get first-time–right in dying. The unit boats the state of the art
facilities in the process and quality assurance laboratories.

The Kochi unit has the capacity to process six to nine yards of fabric. Linen yarn for
the unit will be sourced from Estonia and cotton within the country.

The Cochin facility manufacturer’s linen and linen blend fabrics for exports to the
global customers like GAP, Marls & Spencers, Levis, J Jiu, French collection etc.
They offer their clients a mesmerising range of linen fabrics which are offered in
variety of colours designs and patterns. Designed in compliance with the
cotemporary trends, these fabrics are quality tested for thickness of fabrics and stich
durability before being dispatched at clients end. They also hold an expertise in
custom designing and the range as per the specifications and requirements of the
clients.

25
Company Profile

Basic Information

 Company Name:- WFB Baird And Company India Private Limited

 Founded:- 1912
 Date of Incorporation:- 27 July 2004
 Business Type :- Manufacturing
 Product/Service:- 100% Linen Fabrics and Linen blended Fabrics
 Number of Employees:- 400

Trade & Market:-

 India
 UK
 USA
 Europe

Total annual sales volume:-380cr

Export percentage
Factory information
 Factory Size:- 1000 to 3000 Sq. Meters
 Factory Location:- Kerala-Cochin

Product Portfolio:-
Linen cloth

26
Stages of Growth

 The family business of braid was established in the year 1912.it was equipped
with 400 Atherton Looms, Which had been modified from the cotton trade.
The factory mainly manufactured piece of goods for the hand kerchief trade
in USA, where the largest market was at that time.
 The company survived depression in the late 1960’s to change the hand
kerchief production to appeal production.
 They produced linen fabrics and spread its importance worldwide
 Gradually they started their processing units (Dying and Weaving) in many
parts of the world including India in order to popularize the use of linen.
 They started their first venture in Asia in the year 2005 in Kochi at the
(CSEZ) where both processing and exporting is done

Some useful information about linen fabrics

 High moisture absorption capacity

 Highly comfortable for all weather conditions
 Protect skin from harmful UV rays
 Natural anti-bacterial health fabrics
 Skin friendly
 Durable and wear resistant
 Naturally anti-static, dust repellent
 Naturally anti bed sore
 Pure linen influences the lowering of muscle tensions
 Soft texture enhances bod comfort
 Eco friendly fabric
 Retains the creases and wrinkles due to the individual body movements of the
wearer

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Quality policy

They are committed to enhance customer satisfaction by providing goods and

services complying with continually improving improving quality management
system. Baird strives to provide quality of the highest standard to the satisfaction of
the customer. Quality management to the Baird combines fundamental management
techniques, innovative improvement efforts and specialized technical skills to
continuously improve manufacturing processes. The company strives for continues
growth and development through customer satisfaction, teamwork, honesty and
integrity.

Eco preserve

Baird is well aware of the responsibility that manufacturing industries bears towards
environment. Conserving the resources of environment from pollution and
preserving healthy living conditions are important concerns at Baird. Baird’s
commitment is to sustain the toxic – free environment observing statutory stipulation
and legal regulation. Baird believes in pollution prevention rather than pollution
control. Their activities comprise awareness programs among the employees,
customers, contractors and all those who are associated with them. Their endeavor is
to minimize hazardous emission of waste and to reduce the impact of the
manufacturing activities. Baird aims to achieve zero effluent discharge by the end of
this year

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29
 3.2 ORGANIZATIONAL STRUCTURE

CEO

COO CMO CFO VP SM

Sales and Finance

Production HR & IT
marketing
Administration

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 PRODUCTION DEPARTMENT

Weaving Maintenance
Processing Sampling Quality Control
Material and
Departme Department Department
Department Department Engineering
nt
Department

AGM Manager Manager Manager Manager

Manager

Officers Asst Officers

Operators Officers Asst
Manager
Manager

Junior
Officers Operators
Officers Helpers

Operators
Operators

Boiler
Electrician Fitter Supervisor

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 3.3 FUNCTIONAL DEPARTMENTS

1. FINANCE DEPARTMENT
2. MARKETING DEPARTMENT
3. HRM/TRAINING DEPARTMENT
4. PRODUCTION AND PLANNING DEPARTMENT
5. MAINTENANCE & ENGINEERING DEPARTMENT
6. MATERIALS DEPARTMENT
7. QUALITY CONTROL DEPARTMENT
8. PROCESSING DEPARTMENT
9. WEAVING DEPARTMENT

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 FUNCTIONAL DEPARTMENT

3.4 Finance department

OBJECTIVES

 To manage & account for the financial resource of the organization, to

forecast its requirement in the future and plan accordingly and to check
for deviation.
 Report the financial performance of the company to the management,
and comply with the government rules and regulations.

STRUCTURE

CFO

AGM SM DM
(Treasury) (Accounting and (Budgeting and
taxation) MIS)

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 FUNCTIONS OF FINANCE DEPARTMENT

Some of the main functions are payroll, billing, preparation of journal, ledger and
trial balance, banking, financial resources and materials accounting, budget
preparation, cost accounting, auditing, preparation of financial statements and
reports, corporate planning.

PROCESS OF FINANCE DEPARTMENT

1. Costing, MIS, Budget

2. Cash, Bank and Payroll
3. Tax and Duties

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 1. THE COSTING,MIS AND BUDGETING SECTION

This section is concerned with ascertaining the cost of raw materials and production,
providing information, helping to prepare a budget, forecasting the performance and
finally making the plan.
 Cost accounting
Identification of the cost centre:

Direct expenses are recorded to the respective cost centre. Indirect expenses are
separately booked and allocated at the end of the year. Cost sheet is prepared in two
ways. The item in the cost sheet is compiled on the basis of elements of the product.

Classification of the cost:

Variable cost:- This includes raw materials that is yarn, intermediate products,
consumable products, packing materials, pollution control expenses.

Fixed cost:- Fixed cost of a product mainly consists of conversion cost of salaries
and wages (direct, indirect, administration and maintenance ), staff welfare expenses,
insurance, plant maintenances, depreciation, factory overheads, administrative
overheads, head office overheads, gratuity and bonus, interest on term loans and
working capital.

 MIS
To provide the management with vital facts which affects the efficient running of the
business for the decision making on planning, organizing and controlling the major
activities of the organization and initiating suitable action.

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MIS briefly consist of:

a. Divisional reports.
b. Profit and loss account and its analysis.
c. Production performance of the division.
d. Inventory position.
e. Cost of production – actual and budget for the month.
f. Specific information important for the management – major projects, man hour
utilization etc.

 Budgeting
Two types of budget – revenue and capital budget.

Two types of estimates – budget estimate and revised estimate.

Revenue budget:-

Every year early in august detailed production targets and norms for
consumption of raw materials for remaining portion of current year and also for the
next financial year are prepared by head of divisions.

Capital expenditure:-

Show all items of capital expenditure to be undertaken during the budget period like
expense on acquisition of new assets like machinery, furniture and office equipment
which have reasonable life; expansion of existing facilities and modification &
improvements to plant and machinery resulting in:

a. Increase in capacity
b. Increase in useful life
c. Improvement in quality of output
d. Reduction in cost of output is treated as capital expentiture

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 Budget revision:-

While preparing the next year’s revenue budget, the revenue budget for the
current year is revised, based on the actual from April to September and anticipated
trend for the remaining period.

On closing of the accounts of the months a monthly profit and loss account is
prepared for each division and same is send it to the dividend head

2. THE CASH AND BANK

This section is concerned more with the day to day activities and less of future
forecasting and planning.

 Cash and bank account section

The various functions include:

a. Receipt of cash, cheques, bank drafts and postal money orders.

b. Payment of cash, cheques, bank drafts and letters of authority.
c. Handling of bank deposits/withdrawals, custody of cash and inter unit
transfer of funds.
d. Maintenance of petty cash books accounts.
e. Reconciliation of bank accounts.
f. Security arrangement of cash handling.
g. Safe custody of valuable document.
h. Cash interests calculation.

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 3. Tax and duties section
This section is concerned with calculation and payment of taxes and duties to the
government.

Significant accounting policies

 All revenues, costs, assets and liabilities are on the accrual basis, except
customs duty claims and insurance claims.
 Inventories valuation
a. Stock in trade: finished linen fabrics material at work cost or net
realizable value which is lower. By products are valued at net sales
realization during the year.
b. Raw material: yarn, colored dyes, acid dye, packaging materials, fuel
oil, stores and spares are valued at weighted average cost.
c. Tools and equipment are shown at revalued cost.
 All fixed assets are carried at cost less depreciation.
 Depreciation
a. For plant and machinery depreciation is calculated on straight line
basis specified in schedule XIV to the companies act.
b. For buildings, service equipment, furniture, fixtures, office
equipments, electrical installation etc, depreciation is calculated on
Written down value method (WDV) basis at the rates specified in the
act.
 Sale of goods is recognized on actual basis.

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 3.5 MARKETING & SALES DEPARTMENT

GENERAL INFORMATION

Textile marketing is different from other product marketing. Textiles have a high
demand therefore it can be termed as a sellers market. However in India linen’s
demand is low compared to other fabrics. Market penetration is very difficult, and
once a company captures a market its brand is substituted for the product. The Baird
image plays an important role. The whole market is also dependent on customer
awareness about linen fabric. All of these call for a planned marketing effort and
huge requirement of funds to meet the demand of customers.

OBJECTIVES

 Monitoring of sales and distribution.

 Study and respond adequately to the information from market research
department and from field establishment.

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 STRUCTURE

SALES AND MARKETING

OTC RMG DGM

FUNCTIONS OF MARKETING DEPARTMENT

 Sales.
 Market research.
 Preparation of sales report.
 Processing and sending replies to audit queries at the divisional level.
 Liaison with bulk buyers.
 Sales force motivation through internal and external training programs.

STRUCTURE OF MARKETING DEPARTMENT

40
Structure of marketing department varies with size and scale of operations as well as
the product range of companies. There is no uniform hierarchy in marketing
department. The structure of marketing department in Baird is as follows:

 Sales
 Business development
 Marketing

 SALES DEPARTMENT
The sales department is headed by CMO. He is responsible for sales coordination of
function across various depots, conduct on effective market research for analyzing
market and calculating the demand and finally promotes the sales of Baird products.
Baird is adopting a marketing strategy according to product nature, market situation,
demand of product etc.

MAIN PRODUCTS

 Linen fabric/ natural fabric

 Cotton linen fabric
 Dyed or colored linen fabric

SALES NETWORK

The products in Baird in are mostly sold through a variety of channels. These
include:

41
  Sales through exclusive company owned retail outlets. Baird has a retail
space in various malls for show casing their products and maximizing
sales.
 Outright sales to dealers.
 Operating through franchisee arrangement. This arrangement is made in
order to popularize the brand within the country.

SALES PROMOTION TOOLS OF BAIRD

Baird over the years have innovated various techniques of sales promotion. Many of
them are recognized as effective tools of promotion by national and international
agencies. These techniques are mainly grouped into:

a. Mass communication techniques

b. Mass communication techniques
This method involves catering to a large number of people in the
shortest time possible advertisement are done through exhibition,
radio jingles, hoarding, posters, wall painting, direct mail service,
advertisement etc.

 DISTRIBUTION DEPARTMENT

Physical distribution of products is a meaningful function of the marketing division

chief distribution manager is entrusted with planning, monitoring and implementing
of product distribution and coordinating the movement from production units and
ports. Marketing operations of Baird follow a completely centralized pattern. The
marketing network of Baird is spread over the world.

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MARKETING RESEARCH

Marketing research department is essential for the success of marketing function.

The main function of marketing research is the collection, analysis and interpretation
of data pertaining to textiles market.

FUNCTIONS

 Preparation of product wise, month wise annual sales plan for each area.
 Monitoring and reporting of competitors sales as per Performa.
 Collection, scrutiny, analysis and compilation of region wise, area wise sales
performance of own and purchased products for providing information to
management on achievement against the target on a daily basis.
 Submission of monthly performance report.
 Ensuring product availability, dispatch, monitoring and inventory control.

THE MARKETING MIX

 PRODUCT
Products of Baird include linen fabric, cotton blended linen fabric.
Baird is the only producer of 100% pure linen with a wide range of
products of linen.

 PRICE
The company has adopted a differential pricing policy. The price is
fixed through negotiation for long term contracts. For small customers
price is fixed from time to time.

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PLACE

Here direct selling is made i.e. the fabrics processed in the units are given to the
retail shops for further stitching process ready for garmenting. The entire marketing
functions are done by the company itself and not by any marketing office outside the
company. All payments take place through Banks in Cochin.

PROMOTION

Baird is the only manufacturer of linen fabrics in the entire state. But it lacks a good
promotion policy to withstand competition. The customers are aware of the existence
of the company and when and how to get the product. There are some promotional
activities like mass communication technique and personal contact method. But the
main marketing factor is price, which depends in the national and international price.
The company advertises through radio jingles, hoarding, wall painting etc. The
promotional activities are also done through company website (www.wfbbaird.com).

THE COMPETITORS

 Aditya Birla group-linen club

 Aditya Birla group-Jaishree textiles

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MAJOR CUSTOMERS OF BAIRD:

Baird manufactures linen and linen blend fabrics for export to global customers like:

 MARKS & SPENCERS

 LEVIS
 J JILL
 FRENCH CONNECTION
 GAP
 ESPIRIT
 DIESEL
 ARMANI
 DOCKERS
 DILLARDS
 MULBERRY
 OASISI
 BANANA REPUBLIC
 POLO

MARKETING STRATEGY OF BAIRD

Organization has adopted a strategy for their product nature, market situation,
demand of the product, competition etc. In Kerala Baird is the only company
producing linen fabric.

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MARKET ANALYSIS

The company is going to complete its sixteenth year. The first two year was tough
for the company as they could not fetch much profit but at seventh year they are
doing fairly well with a increased sales turnover. This was due to higher production,
increased demand and better sales realization. Though there was recession in the
realization towards the end of the last financial year, but it was not reflected on Baird
Cochin Pvt Ltd, as the contracts was made earlier. The indications are that the market
will improve on the coming financial years.

CHALLENGES OF MARKETING DEPARTMENT

 Lack of fund for research activities.

 Narrow product range.

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 3.6 HRM/TRAINING DEPARTMENT

GENERAL INFORMATION

H.R.M is one of the most complex and challenging fields of endeavor. It is

considered to be the most expensive and important of every organization. In Baird
the scope of HRD is fast. Baird is always committed to learning and sustains growth.
It fosters a culture that promotes excellence and rewards entrepreneurship. The
people processes initiated at Baird are a reflection of the overall Human Resources
policy of Baird group.

OBJECTIVES

 To maintain the optimum manpower required to sustain the growth of

the organization.
 To motivate and manage human resource and train them to ensure
their personal and organizational development.

47
STRUCTURE

VP (HR)

SUPERVISOR
ADMINISTRAT
OR

MRR Administrative Asst

STAFFS

Directors

FUNCTIONS

 Organizational human resource planning and development.

 Retirement and selection.
 Wage and salary administration.
 Employee records maintaining.
 Performance appraisal.
 Welfare program.

48
  Job evaluation.
 Handling employee grievances.
 Handling the legal issues within and outside the organization.

PROCESS OF HR DEPARTMENT

The human resource department has 3 blocks which are:

1. Establishment
2. Industrial relation
3. Welfare

1. Establishment section

The main functions are:

I. Recruitment and selection

II. Transfer, rotation and placement of employees in consultation with
divisional heads
III. Wage and salary administration
IV. Performance appraisal

2. Industrial relation

Industrial relation operates only within the organization. The Inter organizational
relation is handled by the corporate cadre.

49
The main functions are:

 Communication between management and trade unions

 Grievance handling
 Settlement of dispute
 Handling disciplinary action
 Safeguarding employee rights
 Career related issues like promotion, transfer and rotation
 Resolving daily petty issues
3. Welfare

Welfare schemes can be divided into statutory, agreement, voluntary and incentives .
The main objective of welfare measures is to maintain healthy working environment
and raise the standards of living of employees which create harmony to the society
and finally to the organization. Baird has always maintained very healthy welfare
measures. These are done with the consultation of personal department.

TRAINING SECTION

SCOPE:

 The procedure covers all aspects of training. Arrange suitable training for
employees for updating skills based on the identified training needs.
 Training advisory committee is responsible for suggesting training
requirements of the various departments and disciplines.
 Formulating training program on yearly basis.

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  The committee proposes a training calendar every year.
 Training needs for the years are identified and record by the department
head.

The details are handed over to the training department by respective department
head. Training department does compilation of the identified training needs of the
employees. Necessary training programs are arranged by the training department to
cater the identified needs of the employees.

Training department organizes training programs using internal faculty or engaging

faculty from reputed organization. The training department in consultation with
concerned department heads organizes in house training programs on special
recruitment. When employees attend training programs conducted in house, a
feedback about the usefulness of the training obtained and consolidated. The
concerned department heads evaluates the feedback from the participants after a
period of 2-3 months to ascertain the effectiveness of the training programs.

Employees are also sent for training to other reputed institutions. Nominations for
sending employees for training in such institutions outside the company are put up
for approval of the appropriate authority as per the guidelines issued by the company
from time to time. The employees attending outside programs submits a feedback on
the trainee undergone the training department. Not only that various training
programs for shop floor employees are also given a great importance.

The achievement against annual training calendar is reviewed half yearly. The
department helps for the number of programs held, number of employees
participated for each programs, the highlights of training effectiveness feedback etc.

51
The training department maintains a register on the training program attended by the
employees. Training department maintains the format received from participants
after getting it evaluated by the concern department head regarding the effectiveness
of training. The managerial personal of the company are imparted training to
improve their managerial capability at the HRD centre of the company and outside
institutes depending upon the needs identified by the head of the department.

Workers participation in management

Baird encourages its workers to take part in the management of the company. The
workers are often consulted through their union while implementing major welfare
programs of the company. In addition to this the workers are also included in some
of the committee for taking management decision, which includes:

a. Canteen management committees.

b. Safety committees..
c. Grievance committees.
d. Internal Complaint committee

Programs for talent building

 Group management trainee scheme

 Succession planning
 Internal recruitment system
 Knowledge management

52
Program for career management

 Career planning.
 Job rotation and job enrichment.

53
3.7 PRODUCTION AND PLANNING DEPARTMENT

OBJECTIVES

 Production planning.
 Co-ordination of production function.
 Co-ordination with maintenance department.

STRUCTURE

PRODUCTION DEPARTMENT

MAINTANANCE AND
ENGINEERING DEPARTMENT

Warehouse

QUALITY CONTROL
DEPARTMENT

PROCESSING DEPARTMENT

WEAVING DEPARTMENT

SAMPLING DEPARTMENT

Yarn Dyeing

54
FUNCTIONS OF PRODUCTION DEPARTMENT

 Planning daily production according to annual target.

 Monitoring actual production and checking any deviation.
 Making revision plans according to actual production.
 Maintenance of plants.

Production process

Annual production targets for the next year are prepared on installed production
capacity of the plant and production data for the previous year. Necessary feedback
is also taken from marketing department while fixing the production targets. The
production target thus fixed and presented to the corporate office for review and
approved by CMD and plants manager are informed of the same. The production and
the control ratio for the previous years are duly considered. All the data are compiled
to the production budget. A copy of the production budget is send to the finance
department for preparing finance budget based on the production plan; purchase
department initiates action for procuring raw materials.

Features of production plan

 Production plan is based on the idea of producing the maximum with available raw
materials and production capacity of plant.
 Day to day production is planned according to raw material availability.
 Daily production plan is prepared are likewise annual plan is also approved.
 Routine production plan is monitored.

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Plants at Baird

For weaving the yarn plants used are:

 Automated looms.
 Chinese tapier looms.
 Vacuum steaming auto clave.
 Lab for sophisticated machines.
For dyeing the yarns machineries are imported from Germany.

The dye house or dye kitchen includes plants like:

 Yarn conditioning plant.

 Yarn vacuum steaming.
 Vertical dyeing machine.
 Tabular dyeing machine.
 Space dyeing machine.

Products

 Linen fabric or natural fabric for garmenting purpose used for both apparels
and for industrial purpose.
 Cotton linen fabrics.
 Dyed or colored linen fabrics.

Optimization of production

The company is making all efforts to optimize production and reduce losses. Steps
are being taken to enhance the procurement of yarn as well as now recently market
demands for pre dyed yarn made product.

56
Production and quality standards for the products at Baird

 Baird has a well defined procedure for production. The finished fabrics at
Baird are known for its quality. The quality standards at Baird are governed
using four point system.
 The quality standard is set by [AATC] American Association of Textile
Chemist. Production standards are also kept as per AATC standards.

Challenges to production department

 Raw materials scarcity is upsetting the entire production department.

 Working capital shortage is affecting the smooth functioning.

. The raw materials yarn is spun from long fibers found just behind the bark in the
multi-layer stem of the flax plant, through flax plant is not difficult to grow, and is
grown only in few countries. The yarn plant needs cool, humid climate and within
moist, well plowed soil to grow.

57
 3.8 MAINTENANCE & ENGINEERING DEPARTMENT

OBJECTIVES

 To ensure all equipment in production are in good condition.

 To cut down time of critical equipment.
 To reduce cost due to inefficiency in equipment handling.

STRUCTURE

SENIOR MANAGER

ASSISTANT MANAGER

ELECTRICIANS FITTERS BOILER SUPERVISOR

The engineering department has been divided into four departments

1. Electrical department
2. Mechanical department

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 I. ELECTRICAL DEPARTMENT

There are two functions for this department

a. Operations
b. Maintenance

A. OPERATIONS:
Electrical supply is received from Kerala State Electricity Board [KSEB] through
substations. DC (direct current) is needed for the plant and machines operations and
AC (alternating current) is converted into DC. AC is used for auxiliary purpose. The
following are the functions of the operational section,

 Ensuring uninterrupted power supply.

 Man management.

B. MAINTENANCE:
This Department is focused In planning and implementing on engineering works the
section also provides assistance to project development of new project.

The functional set up of maintenance department includes:

a. Electrical maintenance.
b. Electrical utility: Air conditioner maintenance, plant lighting, motor for
pumping water.
c. High tension: maintenance of high tension equipment.

II. MECHANICAL DEPARTMENT

59
Mechanical section found to be backbone of Baird. All type of manual
maintenance is handled by this section and look forward to maintain the best
possible manner and ensure healthy and sound flow works within the
organization.

60
 3.9 WAREHOUSE DEPARTMENT

Material is an important factor of production, material department of Baird

plays an important role in reducing cost and increasing the profit going with
the technical changes. Baird has a computerized purchases inventory control
system.

OBJECTIVES

 To control and account for the materials in the organization.

 To ensure the availability of materials and its quality.

STRUCTURE

MANAGER

OFFICERS

HELPERS

61
FUNCTIONS OF MATERIALS DEPARTMENT

 Maintaining adequate raw materials needed for production.

 Procurement of machineries, intermediaries, equipment and spares.
 Inspection of materials.
 Transportation of raw materials and products.
 Accountability of materials.
 Purchase of stationary and other equipment needed by individual
department.
This department is divided into two sub departments:

A. Purchase department
B. Stores and inventory control department
A. Purchase department
The purchase procedure covers the following areas of procurement of goods
and services of the company.

 Capital items.
 Equipment and spares.
 Raw materials and intermediary materials.
 Package items involving design, supply and erection.
Purchase department is again divided into:

a. Raw materials section.

b. Equipment spares and suppliers.
a. Raw materials section
OBJECTIVES

 Purchase of materials for production from abroad.

 Make available adequate amount of material at the right time.
 Follow a fair and transparent procedure in the above activities.

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 FUNCTIONS

 Importing raw materials under the approval of safe purchase

committee by the board of directors.
 Procurement of materials needed for production.
 Determination of quantity of materials required.
 Issue of purchase order.
 Pre and post purchase order.
 Insurance.
 Payment.
The main raw materials for producing linen fabrics is yarn and
colors for dyeing the yarn, pre dyed yarn which is imported from
China and European countries.

RAW MATERIAL PROCUREMENT PROCESS

 Production plan is made by which material procurement request is raised

to the inventory section.
 When the raw material requirement is raised purchase department send
enquiry to the approved vendors.
 After receiving quotations and entering into contracts, purchase order is
made to the concerned party.
 Then the raw materials are inspected and are stored in raw material
department.

CHALLENGES TO RAW MATERIALS DEPARTMENT

 Scarcity of raw materials.

 Sky rocketing prices.
 Shipping problem.

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  Working capital crunch.

b. EQUIPMENT AND SPARES

This section includes the following

a. Capital items like heavy machinery or plant (for project and other
purposes).
b. Equipment and spares.
c. Package items involving design, supply, erection and commissioning.
d. Payment of freight/certification of fright bills.
It is the responsibility of the department head entrusted with clearance of
goods cleared from the carrier is forwarded to the receiving section of the
stores department or department authorized for this purpose. In case of
bulk materials like stationeries, the consuming department directly
received raw materials / intermediates goods.

e. Preparation of rejection report.

If the materials is not in the proper condition, rejection report is prepared
which is send to the purchase department, which is further communicated
to supplier and new supply is done only after this.

INVENTORY CONTROL

Inventory control is an essential function of the stores department. It helps

to reduce cost and increase profit of organization. For controlling the
inventory, certain levels of inventory such as maximum, minimum and

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 reorder level is prepared. When the stock reaches the reorder level,
purchase request is made.

OBJECTIVES OF INVENTORY CONTROL

 Unwanted filing of inventory is presented.

 Material codification to avoid duplication.
 To determine the items to be stored.
 To keep suitable record.
 To determine which and how much to replenish.
 To disclose obsolete item.

B. STORES AND INVENTORY CONTROL DEPARTMENT

Stores department stores the raw materials of about 4000 items stored which
include raw material, chemical dye, colors, electronic goods, equipment’s,
spares etc. It has a computerized system of material handling.

OBJECTIVES OF STORES DEPARTMENT

 Collection and receiving of materials purchased.

 Inventory management and control.
 Issuing materials to user department.
 Disposal of surplus and obsolete materials.

FUNCTIONS

 Receiving
 Holding

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  Inventory control
 Issuing
 Disposal

PROCESS IN RECEIVING MATERIALS

 Visual inspection:
First is to check the purchase order. Purchase order is checked only after the
material is received and stored.

 Preparation of receiving reports.

 Inspection report:
Check whether the material is real. Inspection may be carried out by Baird or
the third party inspection agencies. Department is authorized for the
inspection, receives the dispatch document.

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3.10 QUALITY CONTROL DEPARTMENT

OBJECTIVES

 Obtaining customer satisfaction through excellence in quality of

production and services.
 Adherence to documented quality system.
 Promoting quality culture among employees.
 Continuous improvement in the quality management system.

STRUCTURE

MANAGER

OFFICERS

OPERATORS

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FUNCTIONS OF QUALITY CONTROL DEPARTMENT

 Quality checking.
 Process control assurance.
 Pollution control.

PROCESS CONTROL ASSURANCE

 The samples are tested in the lab. There are two labs in Baird, Quality
assurance lab and Process lab. One separate dye lab is also maintained at
Baird.
 The samples after testing is further inspected twice. When the yarn is
ovened it is inspected which is called gray inspection and then after
dyeing the yarn it is again inspected before it goes to final dispatch stage.

POLLUTION CONTROL MEASURES

Linen fabric is an eco-friendly fabric. Therefore it doesn’t create many problems

to environment. Baird Company is environmentally conscious, and deeply
committed to the cause of a green world.

1. Baird has established a common effluent plant which is run by Cochin

Special Economic Zone (CSEZ). This plant is run by CSEZ and they treat it

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 by discharging the waste according to the norms and guidelines specified by
Kerala state pollution control board.

It is a sophisticated effluent treatment plant with the most modern D.A.F,

Floculater, together with a highly efficient microbiological treatment, which
fully satisfies the environment protection norms of the land and discharges
the waste without causing any issue to the land.

2. Before discharging the waste some interim treatment is also made.

3. In addition, the working environment is kept clean within suction devices in
all machines, and with constant circulation of fresh air.

The company continuous to give top priority to pollution control activities. It has
already invested lot of money especially for setting up pollution control plant. As
a commitment to humanity, the company has taken all necessary safeguards to
prevent water and atmospheric pollution caused by effluent liquid and goes
thrown out from the factory. The company could maintain all effluent parameters
within limits as prescribed by the statutory authority. Treated effluent plants
confirm to the Kerala state pollution control board are followed in the disposal of
all hazardous wastes generated.

RESEARCH AND DEVELOPMENT MADE

Baird began research in a modest scale from its beginning with three textile
chemist. At the initial stage researchers were made in order to improve the
texture of the fabrics on weaving and dyeing. Later researchers were made on the
art of dyeing and weaving in a modest scale. For that researchers were also made
on machineries and equipments to get good blend of fabrics.

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 Recently Baird has done research on enzyme treatment on fabrics to make them
evenly smoother and softer. Baird maintains two labs:

 Quality assurance lab

Quality control cell has been set up in R & D centre, for efficient
monitoring of quality of fabric products at the dispatch and selling
points.

 Process lab
Process lab is the place where innovations on new way of processing
and techniques take place while is done by a group of well versed
persons having knowledge in this field.

Baird has also got a small section for sampling and also got a dye lab. Sampling
section is a place where new market trends samples are researched that matches with
the customer requirement.

Dye lab tests the color contrast that is to be given to the fabric. Normally linen
fabrics natural color is off white, brown but according to need linen is being dyed.
The yarn after weaved is again washed to give colors. The dyes used are fiber
reactive and acid.

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 3.11 PROCESSING DEPARTMENT

OBJECTIVE

 To improve the quality and standard of the linen fabric.

 To remove the protruding fibers from the surface of the fabric.
 To remove the impurities that present in the fabric.
 Application of the color uniformly into the textile material.
 To improve the attractiveness and durability of the fabric.

STRUCTURE

MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

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 OFFICERS

Operators

FUNCTIONS

 Preparatory process
 Dyeing
 Finishing

PROCESS OF PROCESSING DEPARTMENT

 SINGEING:
Singeing is the process of burning protruding fibers from the surface of
the fabric or yarn.

At first the fabric is passing through a centralizing device; it contains three grooved
rollers, two guide rollers and two sensors. The function of this fabric is to open the
fabric and centralizing it. Then the fabric is passed through a brushing unit. The
function of this unit is to raise the fibers present in the surface of the fabric. Then the
fabric is passed through the steam chamber to extinguish any dust particles present in
the fabric.

 SCOURING:
Scouring is the process of removal of impurities like oil, fats, waxes etc.
except natural coloring matters present in the fabric.

After singeing the fabric is taken for scouring process. Firstly the fabric is passed
through the washer and saturator. Then the fabric is fed in to the steamer. The
steamer contains two belts and tight stand. In tight stand many number of rollers are

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placed. After the cloth is washed well in four washers, the fabric is squeezed well
and winded on frame. After that it is kept ready for bleaching or mercerizing.

 BLEACHING:
Bleaching is the process of removal of natural coloring matters. There are two types
of bleaching process. They are oxidative bleaching and reductive bleaching.

At first the fabric is fed into pre wetter at room temperature, and then through a
chemical padding container. Next the fabric is fed into the steamer. Then the fabric is
fed into the washers and to the neutralizer. Finally the fabric is squeezed well and
passes through the dyeing cylinders.

 MERCERIZING:
Mercerizing is the treatment of fabric with high concentrated caustic soda solution,
under tension at room temperature. Here chainless paddles clip mercerized is used.

To increase the luster absorbing capacity and dye ability of the linen cotton blend the
cloth must be mercerize with high concentrated caustic. The stretching is done in
weft way direction to the required dimensions. Now the caustic present in the fabric
will be removed by the help of suckers. Finally the fabric is dried with the help of
drying cylinders and then plaited in trolleys.

 DYEING:
Application of color uniformly into the textile material is called as dyeing. There are
different types of dyes are available. In this company there are two types of dyes are
used,

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VAT DYES- these dyes are insoluble in water. Vat dyes are very costly dyes. It is
mainly used for light and medium colors.

REACTIVE DYES- these dyes are soluble in water. These are marketed under
different trade names.

 FINISHING:
Finishing is to improve the attractiveness and durability of the fabric or to
impart certain desirable properties to the fabric. It improves feel depends
on the handle of fabric and its softness and to improve the wearing
qualities. It also increases the value of the fabric.

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 3.12 WEAVING DEPARTMENT

GENERAL INFORMATION

In Baird there are two types of looms are used for weaving. They are “DORNIER”
looms and “CHINA” looms. These are automatic looms. Rapiers are used for the
weft insertion.

OBJECTIVE

 To distinct set of yarns or threads called the warp and the filling
(weft) are interlaced to form a fabric cloth.

STRUCTURE
AG MANAGER

DEPUTY MANAGER

OFFICERS

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 JUNIOR OFFICERS

OPERATORS

FUNCTIONS

 Drawing
 Denting
 Gating
 Knotting

Process of weaving department

Drawing is the process of passing the warp ends through the head, mail eyes,
with the help of drawing pin and the drawing stand. There are two workers
for drawing per shift. 1200 ends drawing done in one hour. Maximum two
ends are passed through each mail eye. Maximum capacity of heads in a loom
is 27. Usually 4 heads are using here.

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Denting is the process of passing the warp ends through the reeds with the
help of denter. Two workers are working in denting. Maximum number of
ends in a dent is 6 ends and the minimum number is one end.

Gating is the process of fixing the drawing heads and dented reeds into the
looms. The time taken for gating is 5-6 hours. Three workers are in gating per
shift.

Knotting is the process of knot the ends of new warp beams with the old warp
ends present in the loom, the total time taken for the knotting in 2-3 hours.

After knotting and gating the warp stop motion is activated by the help of
droppers and dropper bars. 30 minutes may take for the activation of warp
stop motion.

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