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1 | M A N G A L A M C O L L A G E O F E N G I N E E R I N G , E T T U M A N O O R
AN ORGANISATIONAL STUDY AT PAINTEX PAINT
Organisational study report submitted to Mahatma Gandhi University for the partial fulfilment
of the award of Master of Business Administration
MAHATHMA GANHDI UNIVERSTY-KOTTAYAM
Submitted by,
SRUTHY LEKSHMANAN
REG NO:
Under the supervision of
Asst. prof. ANN JOSE
MANGALAM COLLAGE OF ENGINEERING
(Affiliated to Mahatma Gandhi University, Kottayam & Approved by AICTE, New Delhi)
Ettumanoor, Kottayam – 686001
May 2015
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DEPARTMENT OF MANAGEMENT STUDIES
MANGALAM COLLAGE OF ENGINEERING
ETTUMANOOR, KOTTAYAM
CERTIFICATE
This is certify that the Organizational study report entitled is a bona fide record of the work done byMs. SRUTHY LEKSHMANAN as a part of the project work during the third semester at PAINTEXPAINT COMPANY, Cherthala in partial fulfillment of the requirements for the award of the Degree ofMASTER OF BUSINESS ADMINISTRATION OF Mahatma Gandhi University, Kottayam.
Faculty Guide Head of the Department
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DECLARATION
I, SRUTHY LEKSHMANAN, (MBA, S3) Student of Mangalam collage of engineering,Ettumanoor, Kottayam. Hereby declare that Industrial Training Report titled “An Organizational Study at PAINTEX PAINT Company”, Thirunalloor, Cherthala, Submitted inthe partial Fulfillment of the requirement for the 3rd Semester of Master of BusinessAdministration is my original work under the guidance of Mrs. ANN JOSE and is notsubmitted for the award of any Degree, Diploma, Fellowship or other similar title or awards.
Place: SRUTHY LEKSHMANANDate:
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AKNOLEDGEMENT
On completion of my organizational study Training report, I feel deeply Indebted
to many My prayers to Lord Almighty for his blessings bestowed on me for thesuccess completion of this work.
I would like to express my full gratitude to Prof: Manoj George, Principal
Mangalam College of Engineering, Dr. Francis Cherunilam, Director, Department
of Management Studies would like to extend my gratitude our HOD: Dr.Sibu C
Chithran, MBA, MPHIL PhD (management) FDP (IIMK), AMT(AIMA),
MAIMSI(USA) for extending all the help for doing the project.
I have immense pleasure in acknowledging all the my heartfelt gratitude to myfaculty guide Mrs. Ann Jose for the cooperation, encouragement & guidance.
I express my thanks to the management of the PAINTX PAINT, Thirunalloor,
Cherthala who provide opportunity to conduct my study there. My special thanks
to Mr.K.G Radhakrishnan and John Mathew Partners of PAINTEX,
Cherthala for granting permission to do my organizational study. I express my
sincere thanks to all staff members for their invaluable help &whole hearted co-
operation extended to me during this project.
Last but not least my gratitude to my family, friends for their encouragement &support they extended to me.
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TABLE OF CONTENTS
Sl No:
1
Title
INTRODUTION
SCOPE OF THE STUDY
OBJECTIVES OF THE STUDY
SIGNIFICANCE OF THE STUDY
RESEARCH METHODOLOGY
DATA COLLECTION METHOD
RESEARCH PROCESS
PERIODS OF STUDY
LIMITATIONS OF THE STUDY
Page No:
8-11
2 REVIEW OF LITERATURE
MEANING OF ORGANISATION
TYPES OF ORGANISATIONS
12-18
3 INDUSTRY PROFILE 23-29
4COMPANY PROFILE
COMPANY STRATEGY
MANUFACTURING PROCESS
COMPATETORS
30-40
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5
ORGANISATIONAL
STRUCTURE
41-42
6
PRODUCT PROFILE 43-44
7 DEPARTMENTAL PROFILE 45-87
8
SWOT ANALYSIS 88-91
9
FINDINGS AND
SUGGETIONS
92-44
10
BIBLIOGRAPHY 97
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CHAPTER I
INTRODUCTION TO THE STUDY
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SCOPE OF THE STUDY
This study attempts a detailed analysis of the performance of PAINTEX in the
specific areas of Production, Marketing, and Finance& Human Resource
Management. Study is mainly based upon the nature of work carried out by each
department. By studying these aspects one generalize the present status & future
possibilities of paint industry in Kerala.
OBJECTIVES OF THE STUDY
The organization study was carried out in PAINTEX is to achieve the following
objectives;
o To attain practical knowledge of organization activity.
o
To familiarize with the different departments in the organization, theirfunctions & activities.
o To examine what organization the company adopts strategy.
o To familiarize with the business organization.
o To get clear cut ideas about the various operations in the organization.
SIGNIFICANCE OF STUDY
The significance regarding this study is that helps to familiarize the functions ofthe organization. The organizational study helps to identify, critically asses
&summarize the current status of the organization & to familiarize with a reputed
industry & how to communicate with officials. & organizational study helps to
understand the corporate social responsibility by the company.
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RESARCH METHODOLOGY
It is the method used by the investigator for collecting a particular data. The
success of the investigation depends upon the methodology of the organization.
The reliability of findings is depending upon the method used by the investigator.
Methods of Collecting Data
Both primary & secondary data were used for collecting the information.
Interviewed schedule was used was used to collect the primary data from therespondents. The secondary data comprises of certain registers, bulletins, files the
organization.
RESEARCH PROCESS
o Define the objectives of the study
o
Verification of the research designo Collect the data
o Analyzed collected data
o The information is report
PERIOD OF THE STUDY
The organizational study was conducted for the period from 01/05/2025 to
31/05/2015.
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LIMITATIONS OF THE STUDY
There were difficulties in obtaining data from executives and managersdue to their busy work schedule.
o An in-depth study of the company could not be carried out due to
shortage of time.
o The reliability of data used for study is largely depends upon thecompanies reports and the information given by the executives.
o As the company being private firm, firm was reluctant to the internalaffairs and financial matter.
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CHAPTER-II
REVIEW OF LITERATURE
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DOLPHIN MARKETING has been established as a paint manufacturingcompany in Thirunellor at Alappy district. Founded in 2009 by two partners they
are K.G Radhakrishnan and John Mathew. Our traditional business service is providing the best quality of paints and its related products inside Kerala. Basedon the decision of the company to diversify our products. The revenues of ourcompany are expected to be nearly …………. per month depending on thevariables that are factored in with investments in the paint industry. The companyhas invested portions of its assets in the purchase and sale of securities such asstocks. We have mainly two brands named; “PAINTEX PAINT” and “ISON”.We supply our products through different suppliers in all Kerala base.
Company Strategy
Purpose To be a leader in the paint manufacturing industry by providingenhanced services, relationship and profitability.
Vision To provide quality services that exceeds the expectations of our esteemedcustomers.
Mission statement : to build long term relationships with our customers andclients and provide exceptional customer services by pursuing business throughinnovation and advanced technology.
Core values : We believe in treating our customers with respect and faith. Wegrow through creativity, invention and innovation. We integrate honesty, integrityand business ethics into all aspects of our business functioning
Goals : Regional expansion in the field of paint manufacturing and develop a
strong base of key customers. Increase the assets and investments of the companyto support the development of services. To build good reputation in the field of paint manufacturing and become a key player in the industry
Financial Considerations the Company expects to reach the desired profits in thefirst year, we believe that the average profitability per month for the first 3 yearswill be sufficient. However, we have current borrowing from the Bank. Most ofthe company’s liabilities come from management investment.
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Nearly 20 employees are employed in the paint manufacturing industry and thenumber is expected to increase in the coming years. Though there was a slightdecline in the past 2-3 years, more and more people are seeking employmentopportunities in the reconstituted paint manufacturing industry.
Latest technology and manufacturing equipment has improved the quality of our products. Even the paints are being made fine with advanced equipment.
Manufacturing of paint starts with the selection of raw materials, where most of
the raw materials are pigments, solvents, resins, and various additives. The raw
material is cleaned using fine technology. And also we have pollution control
plant, Water treatment plant, air pollution control equipment and laboratory to
protect the environment and its surroundings.
Organization
A social unit of people that is structured & managed to meet a need or pursue
collective goals. All organizations have a management structure that
determines relationships between the different activities and the members, and
subdivides and assigns roles, responsibilities, and authority to carry out
different tasks. Organizations are open systems--they affect and are affected by
their environment.
1. Organization as a Process
As a process, organization is an executive function. It is the process of determining,
arranging, grouping &assigning the activities to be performed for the attainment of
objectives. It becomes a managerial function involving. The following objectives:
o Determining activities the necessary for the accomplishment
Grouping of inter-related activities.
o Assigning duties to persons with requisite competence.
Delegating authority &Coordinating the efforts of different persons
&groups.
http://www.businessdictionary.com/definition/relationship.htmlhttp://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/member.htmlhttp://www.businessdictionary.com/definition/assign.htmlhttp://www.businessdictionary.com/definition/roles.htmlhttp://www.businessdictionary.com/definition/responsibility.htmlhttp://www.businessdictionary.com/definition/authority.htmlhttp://www.businessdictionary.com/definition/task.htmlhttp://www.businessdictionary.com/definition/open.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/open.htmlhttp://www.businessdictionary.com/definition/task.htmlhttp://www.businessdictionary.com/definition/authority.htmlhttp://www.businessdictionary.com/definition/responsibility.htmlhttp://www.businessdictionary.com/definition/roles.htmlhttp://www.businessdictionary.com/definition/assign.htmlhttp://www.businessdictionary.com/definition/member.htmlhttp://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/relationship.html
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When we consider organization as a process, it becomes the function of every
manager. Organizing is a continuous process &goes on throughout the life-time
of an enterprise. Whenever there is a change in the circumstances or materialchange in situation, new type of activities spring up.
2. Organization as a Structure
The term organization structure refers a machine of management, in its
achievement of the ends, determined by its administration. In a short organization
structure refers a well-defined system which people require for the execution oftheir work responsibilities. It helps then to relate to each other, coordinate their
activities and achieve organizational goal or targets. It minimizes confusion,
suitable work behavior& maximizes effectiveness. Organizing is treated as one of
the important function in process.
TYPES OF ORGANIZATIONS
Organization structure varies from industry to industry. According to the nature
of business the structure may form in the following ways.
Line Organization
It is the military type organization, where each department is generally a completeself-sustaining unit; each department is under the control of department head
who is completely responsible for organization the department. All department
heads are responsible to the general manager; he is responsible to the managing
director.
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Line& staff Organization
Here the work is dividing to two broad divisions viz, the staff that is responsible
for planning &the line for the actual execution of the work. Here the staff
personnel give only advice to the line officials. But do not enforce it, i.e., staff
member are thinkers & the line members are doers.
Functional Organization
Here employees are grouped together on the basis of the primary skill need to dotheir job. Those structures offer the organization two way advantages.
o Encourage technical expertise.
o Reduce duplication of activities.
The main elements that determine to make on organization are people, tasks,structure &technology where in the organization takes in some of there as inputs
to derive the desired outputs. While doing so, the following management process
work independently to run a successful organization i.e.
o Planning
o Organizing
o
Staffingo
Directing
o Controlling
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Also the management though out have changed &evolved from the pre-scientific
management period to early management approach &to modern management.
There are six elements those managers to address when they design their
organization structure.
o Work Specialization
o Departmentalization
o
Chain of command
o Centralization
o Formalization &Decentralization
ORGANIZATIONAL DEVELOPMENT
Organizational development is a collection of planned change, interventions built
on humanistic democratic values seeks to improve organizational effectiveness
&well-being.
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CHAPTER-III
DESIGN OF THE STUDY
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Introduction
Research is a creative work undertaken on a systematic basis in order to increase
the stock of knowledge, including knowledge of man, culture & society. The
basic purpose of the research is to find answers to questions through the
application of scientific methods.
Statement of the research
The research deals with an organization study conducted PAINTEX,
Thirunalloor, Cherthala.
Area of the Study
The focus of research being overall organization study, the study was conducted
in the organization as a whole especially the various departments of PAINTEX,
Thirunalloor, Cherthala.
Research design
Research design is considered as the framework or plan for a study that guides aswell as helps the data. The research design may be exploratory, descriptive&experimental for the present study.
TECHNIQUES OF DATA COLLECTION
In dealing with any real life problem it is often found that data at hand are in anadequate &hence it becomes necessary to collect data that are appropriate. Thereare several ways of collecting the appropriate data which differ considerably incontent of money costs, time &other resources at the disposal of the researchdepending on the source statistical data are classified under two categories,
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o Primary data
o Secondary data
o
Primary data
Primary data are obtained by a study specifically designed to fulfill the data needsof the problem at hand. Such data are original in character and are generated inlarge number of surveys conducted mostly by environment &also by someindividuals, institution, and research bodies.
Sources of primary data
By Observation: This method implies the collection of information by way ofinvestigator ’ s own observation, without interviewing the respondents. The
information obtained relates to what is currently happening and is notcomplicated by either the past behavior or future intensions of respondents.
Through personal interview: The investigator follows a rigid procedure& seeksanswers to a set of pre-conceived questionnaire through personal interview.
Through telephone interview: This method of collecting information involvescontacting the respondents on telephone itself. This is not a widely used method but it plays an important role in industrial surveys in developed regions.
By mailing questionnaire: Questionnaires are method to the respondents with arequest to return after completing the dame. It is the most extensively used invarious economic &business surveys.
Through schedules: Under this method the enumerators are appointed & giventraining. They are provided with schedules containing relevant questions. Theseenumerators go to the respondents with the schedules.
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Secondary data
The secondary data constitute the chief materials on the basis of which statistical
work is carried out in many investigations. In fact, before collecting primary datait is desirable that one should go through the existing literature and learn what isalready known of the general area in which the specific problem falls and allsurrounding information that may give us leads & lessons.
Sources of Secondary data Published sources
o Reports &official publications of international bodies, central and state.
o Annual report of K.S.R.MILLS
o Semi official publications
Unpublished sourced
o
Records maintained by various government and private offices.
o Studies made by research institutions, scholars etc.
Tools of Research
o Observation (Observation schedule).
o Interview guide for non-directive and depth interviews.
o
Interview schedule &Opinion.
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CHAPTER-IV
INDUSTRY PROFILE
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Colour has fascinated culture throughout history, every age and every region has
produced dyes and pigment depending on the available resources. Colour has
been with us for more than 20,000 years. Evidence survives in early cave paintings and the ancient Chinese are considered to have brought its manufacture
and use to a state of perfection tens of thousands of years ago.
Colour was widely used by the ancient Egyptians and was considered to have
magical and healing properties and around this time, 1500 BC, paint making as an
art became quite widely established in Crete and Greece with the Egyptians
passing their skills to the Romans. It was between 600 BC-AD 400 that the
Greeks and Romans then introduced varnishes. For the Aztec Indians red dye wasconsidered more valuable than gold and both the Indians and Chinese practiced
Colour Healing. A 2000 year old, Chinese chronicle, The Nei/ching, records
colour diagnoses.
Yet for all this it was discovered that none of the world’s civilisations has named
many colours. In the 1960s two anthropologists conducted a worldwide study of
colour naming. Many languages only contained two colour terms. Equivalent to
white (light) and black (dark). Of 98 languages studied, the highest number of
basic colour terms was to be founded in English – where we have eleven: black,white, red, and orange, yellow, green, blue, purple, pink, grey and brown. The
other billions of colour have ‘borrowed’ names, based on examples of them, such
as avocado, grape, peach, tan, gold, etc.
One of the earliest recorded colour discoveries was made by Plato who
discovered that by mixing two colours, a third is produced, therefore changing the
‘manufacture’, of colour forever.
Prior to that the earliest cave paintings were made by using iron oxides, it was the
ancient Egyptians who developed other paints form pigments in the soil (yellow,
orange and red). It was the Romans who gave us purple, a pound of royal purple
dye, required the crushing of our million molluscs. Cochineal red, discovered by
the
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Aztecs, was made using the female cochineal beetle. A pound of water-soluble
extract required the crushing of four million insects and Spaniards who
introduced the crimson colour to Europe in the 1500’s. Later genuine Indian
Yellow was produced from concentrated cow’s urine which mixed with mud and
transported to London for purifying, sap Green from the Blackthorn berry andSepia Brown from the dried ink sac of squid.
Paint is made up of a pigment, a binder to hold it together and appropriate
thinners to make it easy to apply. 5000 years ago Blue Frit was the first synthetic
pigment being produced by the Egyptians from ground down blue glasses. Before
the nineteenth century the word ‘paint’ was only applied to oil-bound types; those bound with glue were called ‘distemper’.
By 1000 B.C development of paints and varnishes based on the gum of the acacia
tree had been developed. At this time umbers, ocher’s and blacks were readily
obtainable, new colours were also discovered- the first was ‘Egyptian Blue’;
‘Naples Yellow’ dates from around 500 BC and ‘red lead’ was discovered byaccident in about 2500. White lead occurred naturally but demand encouraged
production of manmade versions. Vitruvius describes production of white lead in
the 2nd
century AD.
Before the 16th century, pigment colour was largely dependent on dyestuffs which
could be grown in. or were indigenous to Europe and similar temperate regions.Between 1550 and 1850 only the so-called natural dyestuffs were available but
the range was greatly extended with tropical dyestuffs from Central America and
India and elsewhere.
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In the 17th century the Dutch greatly increased the availability of white lead and
lowered cost by invention of the stack process. All white lead paints included
chalk in their undercoats, reserving purer white lead for finish coats. In 1856 thefirst real synthetic dye ‘Mauveine’ (also known as aniline purple and Perkin's
mauve, was the first synthetic organic chemical dye, discovered serendipitously
in 1856).Was discovered by Henry Perkins. It was then realised that a great many
dyes could be maidsynthetically and cheaply.
It was then that Linseed Oil began being mass produced.
They also had pigment grade zinc oxide – we call it white paint.
Using cast-iron paint mills and zinc-based pigments, industrialists produced the
first washable paint marketed as ‘Charlton white’ in the 1870’s (the first ready
mixed paint was patented by one D.R.A verill of Ohio in 1867, but it never
caught on)
Global scenario of paint industry
The global demand for paint is estimated at over 21mtpa. At valued at about $60 bn. The industry is expected to grow at 3% over the next few years. The highgrowth regions are the developing countries of Southeast Asia and Latin America.While the mature markets of North America and Western Europe are likely towitness very low growth.
The share of industrial paint is 70% and rest is accounted by decorative segment.
Also, almost 60% of the world market.
The largest player is ICI of UK with a share of around 10% followed by Akzo- Nobel (Netherlands), PPG (US), NIPPON (JAPAN), BASF (GERMANY),KANSAI (JAPAN). Over the last few years the industry has been consolidatingwith an objective to strengthen the product lines and distribution chains.
This has led to series of mergers and acquisitions. India’s market is only 0.65 mntones, roughly 2.7% of world demand, but is growing at annual clip of 10%.
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THE WORLD COATING SCENARIO:
The total output of the world paint and manufacturing industry was valued at $54
billion in 1996. The industry supported some 12,250 active firms. This industry isexpand to forecast 3.5 percent annually to nearly 26 million tones. By the year2002 the valued will be $72 billion.
Tonnage gains in the industrial coating segment will be constrained by a shift intrend towards higher solid coatings (such as powder coatings), which often weighless per kilo than solvent brone coatings, and require generally fewer, thinnercoats.
On the other hand, the architectural segment is seeing a continuous shift towardswater-based paints, which weigh more than their solvent-brone counter parts, andwill promote stronger tonnage gains. These trends have evident around the world
but have had the most impact in more mature markets.
Most of developed world has already effected such as switch to water-basedformulations for most architectural applications. The developing world is alsoexperiencing this trend- India included.
The world paint and coatings industry is becoming increasingly dominated by asmall group of highly focused, globally positioned firms. For many of thesecompanies (E.g. Sherwin Williams, Kansai Paints, and Nippon Paints) coatingrepresents the primary line of business.
In other cases (e.g.; AKZO NOBEL, ICI, HOECHST DUPONT andCOURTALDS) the firm strong position has arisen from involvement in variousupstream petro chemical activities, including production of many of basic rawmaterial used in coating production.
The most rapid gain in paints and coatings production will be registered in thedeveloping regions of Latin America and Asia-Pacific. Although the Asia Pacificregion hold the long term prospects as a market for paints and coating, regional
production has been lower, primarily due to financial crises has hit this region.However, India was not severely affected by this crisis.
The wave of currency devaluation and shape rise in interest rate will seriouslydram pen spending in key paint sector such as construction and durable in shortterm, particularly in Indonesia, South Korea and Thailand. India, in a earlier
budget have announce a new housing policy, which should result in boom for theconstruction sector, which will boost demand for architectural coatings.
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A very interesting trend is emerging in the architectural coatings segment, we areexperiencing a shift from solvent based coating to water based coatings. Water
based coatings now account for most of house-hold paint demand in developedcountries and is gaining ground in developing countries too.
During 1990’s, the drive has spread to industrial and specialty coatings segment.The higher performance standards for industrial coatings have necessitatedintense product reformulation efforts, leading to a number of alternativestechnologies.
Meeting environmental regulation is another challenge for paint companies indeveloped world. Even companies in developed regions should be prepared inthis area, as paint product as soon adopting global standards, hence all paintcompanies will have to comply the environmental regulations.
Global trend towards free trade will have an impact on product mix, sinceexported goods must meet the environmental codes of the target market. Theformation of trading blocks like NAFTA will involve the establishment of moreenvironmental regulation of member nations.
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Global production of paint and coatings can be divided in two broad sectors:Architectural Paint and Industrial Coatings.
In 1996 Architectural Paint accounted for 58% of the total output with theindustrial coatings accounting for the remainder. However, the industrial coatingsegment is slightly larger in value (Dollar) terms because industrial coating trendsto cost significantly more than architectural paint.
In 1998, the worlds top ten Paint and coatings suppliers accounted for nearly 42 percent pf the market. The next ten producers accounted to additional 13 percentof sales, which gives a top 20 firms a collective market share of over 50 percent.
The most basic division is between architectural coating and industrial coating.AKZO NOBEL, the world’s top player has a strong presence in both the
segments. (60:40 in favor of industrial coating) Sherwin William, ICI, AsianPaints, and Benjamin Moore focus primarily on architectural paint. WhereasPPG, KANSAI Paint, courtyards, NIPPON Paint and RPM focus heavily on the
industrial segment. BASF, DUPOINT, LILY industries and DAI NIPPON focusentirely on industrial coatings.
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CHAPTER-V
COMPANY PROFILE
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DOLPHIN MARKETING has been established as a paint manufacturingcompany in Thirunellor at Alappy district. Founded in 2009 by two partners theyare K.G Radhakrishnan and John Mathew. Our traditional business service is
providing the best quality of paints and its related products inside Kerala. Basedon the decision of the company to diversify our products. The revenue dependingon the variables that are factored in with investments in the paint industry. Thecompany has invested portions of its assets in the purchase and sale of securitiessuch as stocks. We have mainly two brands named; “PAINTEX PAINT” and“ISON”. We supply our products through different suppliers in all Kerala base.
Company Strategy
Purpose To be a leader in the paint manufacturing industry by providingenhanced services, relationship and profitability.
Vision To provide quality services that exceeds the expectations of our esteemedcustomers.
Mission statement to build long term relationships with our customers and
clients and provide exceptional customer services by pursuing business throughinnovation and advanced technology.
Financial Considerations the Company expects to reach the desired profits in thefirst year, we believe that the average profitability per month for the first 3 yearswill be sufficient. However, we have current borrowing from the Bank. Most ofthe company’s liabilities come from management investment.
Nearly 20 employees are employed in the paint manufacturing industry and the
number is expected to increase in the coming years. Though there was a slightdecline in the past 2-3 years, more and more people are seeking employmentopportunities in the reconstituted paint manufacturing industry.
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Latest technology and manufacturing equipment has improved the quality of our products. Even the paints are being made fine with advanced equipment.
Manufacturing of paint starts with the selection of raw materials, where most of
the raw materials are pigments, solvents, resins, and various additives. The raw
material is cleaned using fine technology. And also we have pollution control
plant, Water treatment plant, air pollution control equipment and laboratory to protect the environment and its surroundings.
PAINT MANUFACTURING PROCESS
Paint is a term used to describe a number of substances that consist of a pigment
suspended in a liquid or paste vehicle such as oil or water. With a brush, a roller,
or a spray gun, paint is applied in a thin coat to various surfaces such as wood,
metal, or stone. Although its primary purpose is to protect the surface to which it
is applied, paint also provides decoration.
Samples of the first known paintings, made between 20,000 and 25,000 years
ago, survive in caves in France and Spain. Primitive paintings tended to depict
humans and animals, and diagrams have also been found. Early artists relied on
easily available natural substances to make paint, such as natural earth pigments,
charcoal, berry juice, lard, blood, and milkweed sap. Later, the ancient Chinese,
Egyptians, Hebrews, Greeks, and Romans used more sophisticated materials to
produce paints for limited decoration, such as painting walls. Oils were used as
varnishes, and pigments such as yellow and red ochre’s, chalk, arsenic sulphide
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yellow, and malachite green were mixed with binders such as gum Arabic, lime,
egg albumen, and beeswax.
Paint was first used as a protective coating by the Egyptians and Hebrews, whoapplied pitches and balsams to the exposed wood of their ships. During the
middle Ages, some inland wood also received protective coatings of paint, but
due to the scarcity of paint, this practice was generally limited to store fronts and
signs. Around
the same time, artists began to boil resin with oil to obtain highly miscible(mixable) paints, and artists of the fifteenth century were the first to add drying
oils to paint, thereby hastening evaporation. They also adopted a new solvent,
linseed oil, which remained the most commonly used solvent until synthetics
replaced it during the twentieth century.
In Boston around 1700, Thomas Child built the earliest American paint mill, agranite trough within which a 1.6 foot (.5 meter) granite ball rolled, grinding the
pigment. The first paint patent was issued for a product that improved whitewash,
a water-soaked lime often used during the early days of the United States. In 1865
D. P. Flinn obtained a patent for a water-based paint that also contained zinc
oxide, potassium hydroxide, resin, milk, and lin-seed oil. The first commercial
paint mills replaced Child's granite ball with a burrstone wheel, but these mills
continued the practice of grinding only pigment (individual customers would then
blend it with a vehicle at home). It wasn't until 1867 that manufacturers began
mixing the vehicle and the pigment for consumers.
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Fig.1
The twentieth century has seen the most changes in paint composition and
manufacture. Today, synthetic pigments and stabilizers are commonly used to
mass produce uniform batches of paint. New synthetic vehicles developed from
polymers such as polyurethane and styrene-butadiene emerged during the 1940s.
Alkyd resins were synthesized, and they have dominated production since. Before
1930, pigment
was ground with stone mills, and these were later replaced by steel balls. Today,
sand mills and high-speed dispersion mixers are used to grind easily dispersible
pigments.
Perhaps the greatest paint-related advancement has been its proliferation. While
some wooden houses, stores, bridges, and signs
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The first step in making paint involves mixing the pigment with resin, solvents,and additives to form a paste. If the paint is to be for industrial use, it usually is
then routed into a sand mill, a large cylinder that agitates tiny particles of sand or
silica to grind the pigment particles, making them smaller and dispersing them
throughout the mixture. In contrast, most commercial-use point is processed in a
high-speed dispersion tank, in which a circular, toothed blade attached to a
rotating shaft agitates the mixture and blends the pigment into the solvent.
Were painted as early as the eighteenth century, it wasn't until recently that mass
production rendered a wide variety of paints universally indispensable. Today, paints are used for interior and exterior house painting, boats, automobiles,
planes, appliances, furniture, and many other places where protection and appeal
are desired.
R AW MATERIALS
A paint is composed of pigments, solvents, resins, and various additives. The
pigments give the paint colour; solvents make it easier to apply; resins help it dry;
and additives serve as everything from fillers to anti-fungicidal agents. Hundreds
of different pigments, both natural and synthetic, exist. The basic white pigment
is titanium dioxide, selected for its excellent concealing properties, and black
pigment is commonly made from carbon black. Other pigments used to make
paint include iron oxide and cadmium sulphide for reds, metallic salts for yellows
and oranges, and iron blue and chrome yellows for blues and greens.
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Fig.2
Solvents are various low viscosity, volatile liquids. They include petroleum
mineral spirits and aromatic solvents such as benzol, alcohols, esters, ketones,
and acetone. The natural resins most commonly used are lin-seed, coconut, and
soybean oil, while alkyds, acrylics, epoxies, and polyurethanes number among the
most popular synthetic resins. Additives serve many purposes. Some, like
calcium carbonate and aluminium silicate, are simply fillers that give the paint
body and substance without changing its properties. Other additives producecertain desired characteristics
Paint canning is a completely automated process. For the standard 8 pint paint can
available to consumers, empty cans are first rolled horizontally onto labels, then
set upright so that the point can be pumped into them. One machine places lids
onto the filled cans while a second machine presses on the lids to seal the cons.
From wire that is fed into it from coils, a bailometer cuts and shapes the handles
before hooking them into holes pre-cut in the cans.
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In paint, such as the thixotropic agents that give paint its smooth texture, driers,
anti-settling agents, anti-skinning agents, defamers, and a host of others that
enable paint to cover well and last long.
DESIGN
Paint is generally custom-made to fit the needs of industrial customers. For
example, one might be especially interested in a fast-drying paint, while another
might desire a paint that supplies good coverage over a long lifetime. Paint
intended for the consumer can also be custom-made. Paint manufacturers provide
such a wide range of colours that it is impossible to keep large quantities of each
on hand. To meet a request for "aquamarine," "canary yellow," or "maroon," the
manufacturer will select a base that is appropriate for the deepness of colour
required. (Pastel paint bases will have high amounts of titanium dioxide, thewhite pigment, while darker tones will have less.) Then, according to a
predetermined formula, the manufacturer can introduce various pigments from
calibrated cylinders to obtain the proper colour.
THE MANUFACTURING PROCESS
MAKING THE PASTE
Pigment manufacturers send bags of fine grain pigments to paint plants. There,the pigment is premixed with resin (a wetting agent that assists in moistening the
pigment), one or more solvents, and additives to form a paste.
Dispersing the pigment
The paste mixture for most industrial and some consumer paints is now routed
into a sand mill, a large cylinder that agitates tiny particles of sand or silica to
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grind the pigment particles, making them smaller and dispersing them throughoutthe mixture. The mixture is then filtered to remove the sand particles.
Instead of being processed in sand mills, up to 90 percent of the water-basedlatex paints designed for use by individual homeowners are instead processed in ahigh-speed dispersion tank. There, the premixed paste is subjected to high-speedagitation by a circular, toothed blade attached to a rotating shaft. This process
blends the pigment into the solvent.
Thinning the paste
Whether created by a sand mill or a dispersion tank, the paste must now bethinned to produce the final product. Transferred to large kettles, it is agitatedwith the proper amount of solvent for the type of paint desired.
Canning the paint
The finished paint product is then pumped into the canning room. For the
standard 8 pint (3.78 litter) paint can available to consumers, empty cans are firstrolled horizontally onto labels, then set upright so that the paint can be pumpedinto them. A machine places lids onto the filled cans, and a second machine
presses on the lids to seal them. From wire that is fed into it from coils, a bailometer cuts and shapes the handles before hooking them into holes pre-cut inthe cans. A certain number of cans (usually four) are then boxed and stacked
before being sent to the warehouse.
QUALITY CONTROL
Paint manufacturers utilize an extensive array of quality control measures. The
ingredients and the manufacturing process undergo stringent tests, and the
finished product is checked to insure that it is of high quality. A finished paint is
inspected for its density, fineness of grind, dispersion, and viscosity. Paint is then
applied to a surface and studied for bleed resistance, rate of drying, and texture.
In terms of the paint's aesthetic components, colour is checked by an experienced
observer and by spectral analysis to see if it matches a standard desired colour.
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Resistance of the colour to fading caused by the elements is determined by
exposing a portion of a painted surface to an arc light and comparing the amount
of fading to a painted surface that was not so exposed. The paint's hiding power is
measured by
painting it over a black surface and a white surface. The ratio of coverage on the
black surface to coverage on the white surface is then determined, with .98 being
high-quality paint. Gloss is measured by determining the amount of reflected light
given off a painted surface.
Tests to measure the paint's more functional qualities include one for mar
resistance, which entails scratching or abrading a dried coat of paint. Adhesion is
tested by making a crosshatch, calibrated to .07 inch (2 millimetres), on a dried
paint surface. A piece of tape is applied to the crosshatch, then pulled off; good
paint will remain on the surface. Scrubbability is tested by a machine that rubs a
soapy brush over the
paint's surface. A system also exists to rate settling. An excellent paint can sit for
six months with no settling and rate a ten. Poor paint, however, will settle into animmiscible lump of pigment on the bottom of the can and rate a zero. Weathering
is tested by exposing the paint to outdoor conditions. Artificial weathering
exposes a painted surface to sun, water, extreme temperature, humidity, or
sulphuric gases. Fire retardancy is checked by burning the paint and determining
its weight loss. If the amount lost is more than 10 percent, the paint is not
considered fire-resistant.
BY-PRODUCTS/WASTE
A recent regulation (California Rule 66) concerning the emission of volatile
organic compounds (VOCs) affects the paint industry, especially manufacturers
of industrial oil-based paints. It is estimated that all coatings, including stains and
varnishes, are responsible for 1.8 percent of the 2.3 million metric tons of VOCs
released per year. The new regulation permits each litter of paint to contain no
more than 250 grams (8.75 ounces) of solvent. Paint manufacturers can replace
the solvents with pigment, fillers, or other solids inherent to the basic paint
formula. This method produces thicker paints that are harder to apply, and it is
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not yet known if such paints are long lasting. Other solutions include using paint
powder coatings that use no solvents, applying paint in closed systems from
which VOCs can be retrieved, using water as a solvent, or using acrylics that dry
under ultraviolet light or heat. A consumer with some unused paint on hand can
return it to the point of purchase for proper treatment.
A large paint manufacturer will have an in-house wastewater treatment facility
that treats all liquids generated on-site, even storm water run-off. The facility is
monitored
24 hours a day, and the Environmental Protection Agency (EPA) does a periodic
records and systems check of all paint facilities. The liquid portion of the waste is
treated on-site to the standards of the local publicly owned wastewater treatmentfacility; it can be used to make low-quality paint. Latex sludge can be retrieved
and used as fillers in other industrial products. Waste solvents can be recovered
and used as fuels for other industries. A clean paint container can be reused or
sent to the local landfill.
COMPATETORS
Ellora Paints Pvt Ltd
Berger Paints India Limited
Varuna Paints Private Limited
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Volto Paints
RAK Paints
Malabar Paints & Chemicals
Titan Paints and Chemical Limited
Wall Max Paints
CHAPTER-VI
ORGANISATION STRUCTURE
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CHAPTER IIV
PRODUCT PROFILE
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Interior Wall Coatings
Exterior Wall Coatings
Berger Metal & Wood Paints
Protective Coating
Undercoats
Construction Chemicals
Express Painting
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CHAPTER IIIV
DEPARTMENTAL PROFILE
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Production Department
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Production is the functional area responsible for turning inputs into finishedoutputs through a series of production processes. The Production Manager isresponsible for making sure that raw materials are provided and made intofinished goods effectively. He or she must make sure that work is carried outsmoothly, and must supervise procedures for making work more efficient and
more enjoyable.
The design and technical support department will be responsible for researching
new products or modifications to existing ones, estimating costs for producing in
different quantities and by using different methods. It will also be responsible for
the design and testing of new product processes and product types, together with
the development of prototypes through to the final product. The technical support
department may also be responsible for work study and suggestions as to how
working practices can be improved.
The works department will be concerned with the manufacture of products. Thiswill include the maintenance of the production line and other necessary repairs.The works department may also have responsibility for quality control andinspection.
PARTNERS
PRODUCTION
DEPARTMENT
MANAGER
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A key aspect of modern production is ensuring quality. The term quality meansfitness for purpose i.e. a product, process or service should do exactly what isexpected of it.
The production department is responsible for converting inputs into outputsthrough the stages of production processes. The Production Manager isresponsible for making sure that raw materials are provided and made intofinished goods effectively. He or
she must make sure that work is carried out smoothly, and must supervise procedures for making work more efficient and more enjoyable.
There are five production sub-functions:
Production and planning.
They will set the standards and targets at each stage of the production process.The quantity and quality of products coming off a production line will be closelymonitored.
Purchasing department
This department will provide the materials, components and equipment required.An essential part of this responsibility is to ensure that stocks arrive on time andare of good quality
The stores department
The stores department are responsible for stocking all the necessary tools, rawmaterials and equipment required to service the manufacturing process.
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The design and technical support department
They are responsible for the design and testing of new product processes and product types, together with the development of prototypes through to the final
product.
The works department
This department is concerned with the manufacture of products. This will includethe maintenance of the production line and other necessary repairs. The worksdepartment may also have responsibility for quality control and inspection.
Total quality management
Car plants like Leyland build quality into every stage of the production process.Every employee is expected to take responsibility for managing quality issues inorder to make sure that waste is minimised and quality maximised. This is oftenreferred to as total quality management and is part of the lean production methodsused in modern industry.
For businesses to be competitive, Production and Marketing need to work in anintegrated way. Marketing is concerned with knowing and understanding therequirements of customers, so that Production can provide the market led
products that are required. This also requires excellent communication systems to be in place.
5 P`s of Production Management
1.1
PURPOSE
Purpose is the first of the five P's of lean manufacturing. Companies must decide
the purpose for which they are creating their project. Profit is one motive, but
only one among many. Some companies may develop products or services with a
philanthropic purpose, while yet others may simply develop products that solve a
pressing need or problem.
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1.2 PROCESS
The process by which a business goes about reaching the customer and producing
the product is the second of the five P's. The process generally refers to the way
that a business conducts itself in relation to the customer and its day-to-day
internal operations. How a company markets, for instance, will determine howeffective it is in reaching the intended target market.
1.3
PEOPLE
Closely tied to the purpose of the product are the people who comprise the third
of the five P's. The people for whom the product will be created and who will
benefit from it are those at the heart of this concern. People comprise the target
market of a manufacturer because without these people, there would be no need
for the product in the first place.
1.4 PLATFORM
The platform upon which a company carries out its process is the fourth of the
five P's. This refers primarily to the various tools and technologies that a
company has at its disposal. For instance, a company that has a specific
manufacturing technique that sets it apart from its competitors will use that as
part of its manufacturing platform. Other technologies such as software, databases
and computer networks may also comprise part of this platform.
1.5 PERFORMANCE
Performance is the final aspect of this manufacturing approach. Performance
refers to the way in which the company assesses its ability to fulfil the original
purpose. Companies will generally apply some standard of measure to determine
whether they are successful and whether changes need to be implemented.
OBJECTIVE OF PRODUCTION MANAGEMENT
1. To produce goods and services as per the estimated manufacturing cost andminimum inputs of resources.
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2. To produce right quality goods and services as per the establishedstandards and specifications.
3. To produce goods and services as per the decided time schedule.
4. Minimize the use of resources to the optimum level. These are 4 M’s:- like
Machinery, Materials, Manpower and Money. These inputs are to be used to full
extent to result minimum cost, quality and time.
5. Maximize the utilization of manpower.
6. Minimizing the total cost of production with continuous elimination of non-value added activities and improving labour productivity on the production shopfloor.
Work Plans Organizations are neither the rational, harmonious entities celebrated inmanagerial theory nor the arenas of apocalyptic class conflict projected byMarxists (1980). Hardy and Clegg (1996) believe that modern organizations
passed by the guild structures and as organizations grew larger, skills becomeincreasingly fragmented and specialized and positions become more functionally
differentiated. Leavitt had defined three approaches to organization, whichincludes structure, technology and people (1964). New formal guidelines and
procedures like organization chart, budgeting methods, rules and regulations canalso be structural approaches on inducing change. On the other hand,rearrangements in work flow through new physical layouts, work methods, jobdescriptions and work standards can be done as technological approaches. Someorganizations stress on people approaches which includes alterations in attitudes,motivation and behavioural skills. This can be done through new training
programs, selection procedures, and performance appraisal schemes.
Planning is commonly known as the process of formulating in advance as
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organized behaviour action. While it is true that people do not always plan theiractions, it is
inherent for any organizations to plan. However, whether dealing with the context by which planning is occurring, whether on the individual or organizational level,the process takes shape according to the prevailing attitudes, beliefs and goalsinvolved. Planning also bears different meaning to different social groups.Any commercial, entrepreneurial, private as well as public organizations andinstitutions who has a financial arm to manage the funds of the group, is facedwith the objective of maximizing the shareholder wealth and not the profit as wasstated in the theory of financial management. The business, in order to effectivelyexecute any business strategy or plan, should be able to determine first and
identify the resources that are available in the company. Studying and examiningthe opportunities of the available resources will help in constructing a business
plan which will be profitable.
Management of Competing Demands and Priorities an information system is indispensable in every organization as reflected in its
role, purpose, and sources of information. Information system plays a crucial roleand is a contributory factor in the success of an organization for the modificationof present plans and strategies of an organization and the formulation of futuregoals, approaches, and steps the organization will undertake are based on the dataobtained in the past and converted to information organized in the system.Furthermore, it could be noticed that in such modification and formulation,decision-making is essential. Hence, information system influences decisionsthereby affecting the status of the organization at the present and in the future.
With the ever-increasing demands by the clients and customers, raw materialssuppliers, as well as the pressure from the upper management of the organizationfor increased efficiency and profit, collaborating and effective management of
priorities in the production constantly pose challenges and beset the operationsmanagement of the company. As such, it is inevitable that the organizationimplement programs and production systems that will best suit the needs of thecompany and its clients. The
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discussion below presents the IT system and techniques used in the companyalong with the lean management initiative to add value to the production processand overall operations of the business organization.Generating manual and IT systems in the workplace provides a more advantage in
terms of receiving, recording, processing, storing and transferring information.
The development of Lean Quality Management System is one of the qualitymanagement approaches that address the business setting at present. It wasdeveloped to:
(1) Save thousands of dollars each year by avoiding the waste associated with a paper quality system,
(2) harness the creativity of employees while maintaining control of their projects,
(3) Perform tasks that are clearly assigned, defined, communicated and focused,
(4) Spend less time managing the quality system and more time improving thevalue stream,
(5) reduce training costs by integrating procedures with training,
(6) Provide a management system that provides the who, what and when, and
(7) Provide the metrics to drive your organization to ever-higher levels of performance and success which works just as well for small as large companies(Lean Software Quality Management).
The Lean Value Chain of Production System Model below illustrates howcompanies at present gain competitive advantage by adding value to the overalloperation of the organization through efficient production system (2006).Business firms that utilize the value chain management strategy also considerincreasing the companies' relationship with its shareholders by separating the
business system into a series of value-generating activities, namely:
(a) Inbound logistics,
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(b) Operations,
(c) Outbound logistics,
(d) Marketing and sales, and
(e) Customer service.
In effect, from the receiving and warehousing of raw material from the suppliers,all throughout the manufacturing and production process, as well as in the entirethe distribution and sales of finished goods, the value-generating activities aresupported by the infrastructure of the firm, its human resources management, andthe technology it uses (2005).
The lean machine is known in the ease of its use and installation as well as itscost
effectiveness in dealing with wastes in most quality systems thereby saving timeand money for the software. It can integrate information, reports, graphs, andother tools that work together to simplify and deliver information for improved
business operations which minimize the time spent on other software programs ().
Training and Development Plan
Business organizations nowadays offer two-way learning experience within thecompany between the employers and the employees. Employers benefit largelyfrom trainings that they offer to staff and members of the firm given that theexpected knowledge and skills were learned through the organizations venture ontheir human resources. At the best possible results, the organization will gaincompetitive attitude in the business world by housing in competitive and qualified
workers. Employees on the other hand, are given the opportunity to improve ontheir work capabilities as qualified and productive members of the modern andinformation age work force.Ensuring employee performance requires establishing a level of competencewhich the employee should be aware of as a target to be achieved. This is themeasure to be used by managers in determining compliance with the standard andin identifying problems met by the employees in meeting the standard. Indeveloping a training program to enhance the productivity of employees themanager will look at the competency problems of the employees and fashion the
program to enable the employees to reach and even exceed the competencystandard established for their work. This requires a great amount of
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perceptiveness on the part of the manager in determining what method of trainingwill be most effective in improving employee competence. Some of the trainingincludes computer software training, internet-based training and self-teaching byencouraging innovativeness in the workplace (1998).
Employers need to enrol their staff in annual or quarterly training courses toupgrade their skills and enrich their knowledge so as to foster individual and
personal development and improvement. Possibilities of promotion through theiracquired knowledge and improved skills as competitive employees should always
be reminded
to the staff as a form of motivation to encourage productive outputs.Incentives in the form of financial aids like bonuses and other materialcompensations as well as intrapersonal rewards such as positive critical feedbacksand recognition should be endorse by the company to boost confidence andmotivate the employees. This in turn will also be profitable to the organizationitself due to increased output of the work force.
It is also apparent that equal relations between the employer and the employees
should be practiced to encourage productivity in the business organization.Enhancing good working relations among all the employees and preserving agood working environment and atmosphere ideally, will provide harmoniousrelationship inside the business organization. Maintaining such condition withinthe office will elicit productivity from the employees as they enjoy their duties ofaccomplishing their
tasks and will help in reducing stress and eventual burnout in the workplace.Encouragement of wider work responsibility of basic skills such as developmentand learning courses should be given to employees on specified times of the year.This will restore fresh knowledge to old employees. In the case of newly hiredstaff, more comprehensive and rigorous training exercises should be applied to
better prepare them of the workloads they will be responsible of in the actual business transaction and work process. Promoting individual competence andcompetitiveness among the staff and other members of the organization will be of
benefit to the company since this will uphold and advance the initiative workattitude.
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Team building exercises wherein work peers as well as the supervisors will be participating should be regularly held. Bonding activities like out of town tripscan be psychologically helpful to all the employees that will elicit bond among
the people inside the company as well as for the employers to know their workteam.Since workplace learning and training programs in business organizations is acommon practice nowadays, more trust should be given to the work team of thecompany. Entertaining and respecting solicited opinions and ideas of ordinaryemployees will be of help in setting the corporate goals of the company since thestaff is encouraged to think as owners of the business enterprise.
SCOPE & ACTIVITIES OF PRODUCTION MANAGEMENT
There are two types of scope & activities of production management:
1. Strategic level.
(a) Design & development of new product.
(b) Process design & Planning
(c) Facilities location & layout planning (d) Design of material handling (e) Capacity planning
2. Operational level.
(a) Production Planning (b) Production Planning (c) Inventory Control
(d) Product maintenance & replacement
(e) Cost Control & Cost Reduction
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ROLE AND SCOPE OF PRODUCTION MANAGEMENT
Production ManagementConcept:
Production management is the process of designing, manning operating,servicing, andCentralizing the activities of a manufacturing organisation, responsible for theactual transformation of material inputs into marketable finished goods.Production planning and control which is an integral and important part of theProduction Management has to play a vital role. Production management is todecide the objectives of production. This will involve all the functions of
planning, organising, directing and controlling the production activities from theshort term and long term aspect.
Production management is a sub-system of the business organisation. Productionmanagement is what a production manager does. The production manager’s role
is that of a decision maker. After he has planned allocation of inputs, the creationof value through production process can begin. Once the production processes arestarted, it must be controlled. The control involves observing results and checkingthat they
confirm to the original plans. The management is to plan, organise, direct andcontrol the production activities of a business concern.
In general, transformation processes can be categorised as follows:
Physical in manufacturing – raw material into a product
Location in transportation – sand from sea beach to construction site
Exchange in retailing – from product sell to price
Storage as in warehousing – fishes in cold storage for future use.
Physiological as in health care – fitness instructions
Information as in telecommunication and education – lessons by teachers.
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Scope of Production Management
The scope of production management with various areas of BusinessOrganisation as are follows: The basic functions of Business Organisation are
Finance, Marketing, Finance and
Production and Industrial Engineering.
1. Finance and Production:
Finance provide the necessary funds for the maintenance of Production andMarketing activities. Funds not only comes from the sale of goods and services
but also acquired through loans – from banks and other financial institutions, sale
of stock investment and income.
2. Marketing:
The object of production activity is to provide inputs which include rawmaterials‟ men, machine, operating supplies, semi-finished products, water, and
power and place etc. the inputs are assembled and changed to finished goodsthereby creating value. The finished products and services are available so thatthe marketing functions can be utilised to provide, sell and distribute them. Thus
production and marketing are separate yet inter-dependent functions in business.
3. Personnel and Production:
The personnel function in any business organisation is mainly concerned with allmatters related to manpower as an input system of business organisation. From
the view point of the production manager following are the various areas ofmutual interest.
(i) Recruitment and selection
(ii) Training and development of employees
(iii) Labour relations
(iv)
Safety
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(v) Wage and salary administration including various incentive Programmes.
(vi) Motivating employees to give their best
4.
Production and Industrial Engineering:
This department is responsible for translating the ideas developed in research anddevelopment, marketing research into realities. The main object is to search forthe
most efficient way of producing products under certain constraints such asmaterial, manpower, machines, money etc.
1. Job Production:
In Job Production the whole product is looked as one job which is to becompleted before going on to next. The most common examples are building aship or a large civil engineering construction job. Job production is hot confinedto large projects, it could be the making of a special piece of equipment or a tool
2. Batch Production:
If qualities of more than one are being made, it is sometimes convenient to splitthe production into a series of manufacturing stages or operations. Each operationis completed as one of the single items being made, before the next operation isstarted. In this way a group of identical products, or a batch are made, whichmove through the production process together.
3. Flow Production:
When there is continuous demand for a product, it is sometimes worthwhilesetting-up facilities to make that product and no other product. In thesecircumstances flow production may be the best way of operating. Here themanufacturing is broken down into operations, but each unit moves, or flows,from one operation to the next individually, and not as one of a batch examplesare motor manufacturing, fertiliser, pharmaceutical and urea manufacturing. Since
only one product is being made there are no problems about priorities, but it is
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necessary to balance the work load at all stages of manufacture. Examples aremotor car manufacturing.
5. MASS PRODUCTION
One option is to use mass production to produce your muffins. Mass production
allows you to make massive amounts of muffins in a very efficient manner
utilizing machinery, assembly lines and specialized labour. Each employee will
be assigned a specialized task.
You'll have employees that are responsible for putting the ingredients into
industrial mixers and employees responsible for monitoring the baking process.You'll also have employees who monitor the quality of the muffins as they leave
the ovens and employees who package the muffins. Other employees will
transport the packaged
muffins to your shipping department for distribution to your retailers. This is a
type of flow production where all production activities flow smoothly in onedirection throughout the factory.
6.
FLEXIBLE MANUFACTURING SYSTEM
You've looked into purchasing a flexible manufacturing system, but don't have
the cash to do it right now. A flexible manufacturing system would allow you to
almost completely automate your muffin manufacturing. Flexible manufacturingsystems usually increase productivity and reduce costs in the long run. It also
leaves the boring part of the job to the machines.
7. JUST-IN-TIME PRODUCTION
You pride yourself on your organic muffins. Since you want to keep the same
level of quality when you go national, you are looking into just-in-time
production. When using just-in-time production, you will not need to keepmuch inventory of muffins beyond what has been ordered by your retailers. This
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not only keeps your muffins fresh, but your business partner happy because it also
means you won't have a bunch of cash tied up in flour, yeast and blueberries until
you need them.
Functions of Production and Operations Management:
1) Technology Selection and Management:
This is pertaining to long term decision with some spill over into the intermediateregion. Although it is not immediately connected with the day to day short termdecisions handled in the facility plant, it is an important problem to be addressed
particularly in a manufacturing situation in an age of technological advances, so
that an appropriate choice is made by a particular organization to suit itsobjectives, organizational preparedness and its microeconomic perspectives.
2) Capacity Management:
The capacity management aspect once framed in a long term perspective revolvesaround the matching of available capacity to demand or making certain capacity
available to meet the demand variations. Capacity management is very importantfor achieving the
Organizational objectives of efficiency, customer service and overalleffectiveness. While lower than needed capacity results in non-fulfilment of someof the customer services and other objectives of the production operations system,a higher than necessary capacity results in lowered utilization of resources. Therecould be a „flexibility‟ built into the capacity availability but this depends uponthe „technology‟ decision to some extent and also on the nature of the production/ operation system, a higher than necessary capacity results in lowered utilizationof resources.As the product variety increases, the systems of production / operations change ina system characterized by large volume low variety, one can have capacities ofmachinery and men which are inflexible while taking advantage of the repetitivenature of activities involved in the system.
3) Scheduling:
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Scheduling in another decision area of operations management which deals withthe timing of the various activities – time phasing of the filling of the demands orrather the time phasing of the capacities to meet the demand as it keepsfluctuating, it is evident that as the span of fluctuations in variety and volume gets
wider the scheduling problem assumes greater importance. Thus in job shop (i.e.tailor made physical output or service) type operations system, the schedulingdecisions are very important which determine the system effectiveness (eg.Customer delivery) as well as the system efficiency (i.e. the productive use ofmachinery and labour)
4) System Maintenance:
The fourth area of operations management is regarding safeguards – that only
desired outputs will be produced in the „normal‟ condition of the physicalresources and that the condition will be maintained normal. This is an importantarea whereby „vigilance‟ is maintained so that all the good work of capacity
creation, scheduling etc. is not negated. Technology and / or process selection andmanagement has much to contribute towards the problem. A proper selection andmanagement procedure would give rise to few problems. Further the checks(qualityChecks, physical / non-physical output) on the system performance and correctiveaction (ex-repair of equipment) would reduce the chances of the desired output
being served. In a manufacturing industry there may be physical defects. Inservice operations, it could be a breach of confidence of the customers like thestealing of credit and accounts of the customers.
Functions of Production Manager:
The functions of Production Manager, like any other manager involves thefollowing six steps:
i. Organising
ii.
Planning
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iii. Directing Operations
iv. Controlling Results
v.
Appraising Performance
vi. Improving Effectiveness
I. Organising:
The first task in developing an effective production planning and control group isto organise all the significant factors affecting the department’s activities. The
production planning and control function must have a solid framework which has purpose, direction and continuity in order to help maintain the basic structure ofthe department as operation changes take place over the years. Without thisframework, the department would not be properly integrated with companyobjectives. The following, in brief, enumerates the organising activities:
(a) Obtain a statement of corporate objectives from top management.
(b) Prepare a statement of departmental objectives
(c)
Develop a policy manual for the production planning and control
(d) Draw up a department organisation chart.
(e) Evolve departmental job descriptions.
(f) Compile a system and procedures manual.
(g) Introduce a manpower rating and inventory system.
(h) Establish basic criteria for the management of developmental Performance.
ii.Planning:
The role of planning is a multiple one. However, one of the basic purpose that itserves to is relate the organisation to actual operations. Effective direction,
control, appraisal and improvement of operations cannot be done, no matter howwell the production department is organised, unless the activities are first
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planned. To try to operate without continuous planning on both-a short and along-range basis will lead to results which are far less than the optimum that isachievable. The following gives the elements or steps that are part of the overallconcept of production, planning and control; hence they should be integrated with
each other, as well as with the elements of other managerial skills.
(a)Prepare a statement of long and short term planning requirements.
(b)Develop operating plans (short and long term).
iii. Direction:
The production planning and control manager must direct the activities of his people within the framework of the total organisation, the manner in which it isdone will determine the precision and effectiveness of the plans themselves, aswell as the quality and value of the organisational planningSome of the basic elements that are essential to success in directing the activitiesare:
(a)Effective decision making.(b)Effective communication and delegation.(c)Effective motivation and supervision(d)Effective coordination and unification.
iv. Controlling:
Control serves to ensure that the activities will be carried out in accordance withthe Plans. Without effective control of his operations, the manager may find thathis planning and organising are in vain. Basic steps for control are:
(a)Measurement of progress and results.
(b)Comparison of results with plans
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(c)Taking corrective action, if called for.
v. Appraising Performance:
Appraisal is primarily aimed at evaluating the results of operating plans on acontinuous basis. In other words, the performance measured in the control phaseof management is reviewed, then thoroughly analysed to establish the cause ofany deviation, so that the proper changes can be made in either plans or practices.Appraisal and control, are of course, very closely allied and are