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Page 1: Training Project

SPINNING MILL

A spinning mill is a labour intensive industry and it provides

ample job opportunities. Cannanore Spinning and Weaving Mills is

a unit of the subsidiary of NTC. The registered office of APKK & M

is located in Bangalore. At present the capacity of the Cannanore

Spinning mill has increased to 25920 spindles. The company is a

spinning mill with weaving facilities. But currently no weaving

process is going on in the mill.

Spinning mills used ‘Line Shafting’ which is the means by

which the power of the steam engine is transmitted along rotating

shafts (rods) to the spinning or weaving mills. Now, however

electricity is being used which is much faster than hand spinning. Yarn

is the final product of the mill. To maintain the quality aspects an

efficient quality control team functions in the mill.

Every organization needs to have well-trained and experienced

personnel to perform the activities that have to be done. If the current

or potential job aspirant can meet the requirement, training is not

important. But when this is not the case, it is necessary to raise the skill

levels and increase the versatility and adaptability of employees.

Inadequate job performance or a decline in productivity or changes

resulting out of job redesigning of technological changes requires some

type of training and development efforts. As the jobs become more

complex, the importance of employee development also increases.

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THE TEXTILE MILL INDUSTRY

Cotton/man-made fibre textile industry is the single largest

organized industry in the country employing nearly 10 Lakh workers.

Besides this, there are large numbers of ancillary industries dependant

on this sector such as those manufacturing various machinery,

accessories, stores ancillary and chemicals. Even on a modest

assumption that a workers family comprises of five persons, the direct

dependents on the organized mill industry itself works out to about 50

Lakhs.

Out of the 1837 cotton/man-made fibre textile mills, 192 mills

are in the public sector, 154 mills in the co-operative sector and 1491

mills are in the private sector.

Evaluation of the Textile Mill Industry

Whilst farmers were developing new and better methods of

agriculture, life in other areas of work had changed little for hundreds

of years. Early in the 18th century most of the population lived in small

rural settlements and only a few people lived in town.

Many people worked as producers of woolen and cotton cloth.

They cleaned, combed, spun, dyed and wove the raw materials into

cloth and this work was done in their own houses. This type of

production has become known by the general term of domestic

(cottage) industry. Work within the cottage industry was usually

divided up between the members of one family. The women and girls

were responsible for cleaning the sheep fleeces, carding the wool and

spinning it.

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The process of weaving was physically hard work and

traditionally it was the men who were responsible for it. Generally at

regular intervals a cloth merchant visited each handloom weaver’s

cottage. He would bring the raw materials and take away the finished

cloth to sell at the cloth hall.

As soon as the new wool arrived, it was washed to clean out all

the dirt and natural oil. After this it was dyed with colour and carded.

This was the process of combing the wool between two parallel pads of

nails, until all the fibres lay the same way. Next the carded wool was

taken by the spinner and using a spinning wheel the thread was wound

onto a bobbin.

The spun yarn was taken to the loom to be woven. In the

weavers cottage the loom was often to be found on an upper floor.

There are large windows in the room to let in plenty of daylight.

Working of the loom was quite strenuous work, which is why it was

traditionally the work of the men of the household.

However, with the advent of the industrial revolution all the

processes of yarn and the subsequent production of cloth underwent a

dramatic change. The industrial revolution brought about the wide

spread replacement of manual labour by machines. Goods that were

traditionally been made in the homes or in the small workshops began

to be manufactured in factories. Productivity and technical efficiency,

improved in part through the systematic and practical knowledge of the

manufacturing process.

Spinning is the process of creating yarn (or thread, rope, cable

etc.) from various rows of fibre materials. Several fibres are twisted

together to bind them into strong, long yarn. Characteristics of the yarn

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vary based on the materials used, fibre length and alignment, quantity

of fibre used and degree of twist. The earliest spinning probably

involved simply twisting the fibres with the hand. Later the use of stick

to help twist the fibre was invented.

The spinning wheel was then developed which allowed

continuous and faster yarn production. Spinning wheels are either foot

or hand powered. Modern powered spinning used line shafting, which

is the means by which the power of the steam engine is transmitted

along the rotating shaft to the spinning or weaving mills. Now,

however, electricity is being used which is vastly faster than hand

spinning.

Another major invention was the power loom. The power loom

was a steam powered mechanically operated version of a regular loom,

an invention that combined threads to make cloth. In 1785, Edmund

Cartwright patented the first power looms and set up a factory in

Doncaster, England, to manufacture cloth. William Horrocky and

Francis Cobot Lowell improved it upon.

Francis Cobot Lowell was an American businessman and the

founder of the world’s first textile mill. Together with inventor Paul

Moody, Lowell created a more efficient power loom and spinning

apparatus.

All this accelerated the growth of the mill industry with more

production capacity, and the labourers employed in the industry,

rising to millions.

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Present Scenario

Global trade in textile and apparels is expected to increase from

US $ 356 billion in2003 to US $ 600 billion by 2010. The way forward

for the textile mill sector is through transforming the sector from a

resource intensive to knowledge intensive, highly innovative sector

with high added value products and services. This can only ensure

sustainable growth and jobs in the future. It would also help to secure a

competitive advantage, which would be based on the best new products

and processes in the world. The industry has made tremendous efforts

in the last years to invest in new productive assets, to streamline

operations and to intensify their innovation activities. To achieve a

transformation, investment is needed in technological innovations that

would assist industry in its transition from resources intensive to a

knowledge intensive sector.

The Indian Textile Industry – a legacy of its own

The Indian textile industry has a great legacy, which is

perhaps unmatched in the history of India’s industrial development,

India’s textile industry evolved and developed at a very early stage and

its manufacturing technology was amongst the best. India’s manually

operated machines were among the best in the world and served as a

model for production of the first textile machines were among the best

in world served as a model for production of the first textile machines

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in newly industrialized Britain and Germany. India’s textiles were

sought after for their finesse, quality and design and attracted people

from across the globe like the Chinese, Malaysians, Portuguese etc.

Colonization put an end to India’s glorious textile legacy. By 1880, the

domestic market had grown to be served solely by the British

manufactures. One of the aspects of freedom struggle led by Mahatma

Gandhi was to weaken the British textile industry by weaving

homespun clothes, as he was convinced that the textile sector would be

a catalyst in advancement of the Indian population.

Post independence, till 1980, the Government of India put

numerous restrictions to ensure mechanization did not occur, labour

intensive textiles were produced, which in effect led to increase in

price, and decrease in productivity.

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Structure of The Indian Textile Industry

The Indian Textile mill industry’s structure is as follows:

Indian Textile Mill Industry

Organised Sector

Mill Sector (3%)

(% share in total cloth production)

Unorganised Sector

Handloom Sector

Hosiery Sector (97%)

Powerloom Sector

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Company ProfileCANNANORE SPINNING AND WEAVING MILLS(APKK & M) LTD

ORIGIN

Cannanore Spinning and Weaving Mills was originally started

by a private owner Shri. Keyath Damodar in 1948 with about 20,000

spindle capacity. The mill earned profit and had no problems till 1970.

Thereafter the company incurred heavy loss due to various reasons and

hence the management was taken over by the Government of India.

The mill was nationalized under Nationalizations Act with the

effect from April 1st 1974 and is placed under National Textile

Corporation (NTC). Since the production capacity of the mill has

increased to 24,000 spindles. The Government introduced new

machines and the mill functioned well till 1980. Thereafter the

company again incurred loss for many years. Being a Government

undertaking, financial support was received from Government and

hence the mill was running without much problem. Furthermore the

mill along with some other NTC units was referred to the ‘Board of

Industrial and Financial Reconstruction’ (BIFR) under the Stock

Industrial Company’s Act.

LAND AREA STATEMENT

Area of colony compound : 4.21 acres

Area of mill compound : 8.32 acres

Pump House : 0.02 acres

Road : 0.04 acres

Total area : 12.59 acres

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ADDRESS

CANNANORE SPINNING AND WEAVING MILLS,

UNIT OF NTC (APKK & M) LTD,

KAKKAD,

KANNUR – 670 005

KERALA STATE

National Textile Corporation’s Subsidiary

The mill is a unit of subsidiary of the NTC. APKK & M is the

subsidiary under which this mill functions. APKK & M stands for

Andhra Pradesh, Karnataka, Kerala and Mahe. The registered office of

the APKK & M is located in Bangalore (Karnataka). All the mills

under APKK & M, including Cannanore Spinning and Weaving Mills

have to report to this Head Office regarding all official matters. Shri.

Ramachandra Pillai is the present Chairman and M.D. of the APKK &

M subsidiary. Shri. T.V.Jayakrishnan is the General Manager of the

Cannanore Spinning and Weaving Mills.

National Textile Corporation (NTC)

The holding company of Cannanore Spinning and Weaving

Mills is the NTC Limited. It was set up with the main objective of

managing the affairs of the Sick Textile undertakings taken over by the

Government. It was also proposed to rehabilitate and modernize this

mill after the takeover and expand them wherever necessary with a

view to making them economically viable. NTC was incorporated in

April, 1968 and started functioning in October, 1968. At present it is

the holding company of the nine subsidiary corporations namely, NTC

(MP), NTC (GUJ), NTC (TN), NTC (Pondichery), NTC (UP), NTC

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(West Bengal), NTC (Assam), NTC (Bihar & Orissa) and NTC (APKK

& M).

NTC Ltd. has an authorized capital of Rs.585 Crore and a paid

up capital of Rs.540.10 Crore, which is fully owned by the

Government of India.

Finance

Financial assessment is the backbone of every industry. The

company has a cash credit account with SBI, Kannur. They have

curtailed the company credit unit from Rs.100 Lakhs to Rs.60 Lakhs

from September, 2002 onwards which has affected the company badly.

From there onwards efforts are made to restore the units by taking up

the matter with their Zonal Office. But currently no credit facility is

provided by SBI.

Production

The mill is a spinning unit and the final product is yarn on cone

in PV/PSF counts. The following counts are produced 45s PV (65:35),

60s (65:35) and 60s PSF.

Raw material

The company is using Polyester Stable Fibre (PSF) and Viscose

Staple Fibre (VSF). Their qualities are checked and supplies are

satisfactory. Depending on the consumption, a stock level of 12 to 15

days is maintained.

Sales

The market for yarn is a highly competitive one and therefore

the prices keep fluctuating which in turn affects the quantity demanded.

The main consumers of yarn are weaving merchants and looms.

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Products range

Yarn is the final product of the Spinning Mill. The yarns from

the cops are wound on paper cones called Cone Yarn. Each cone yarn

contains 1.5 Kg of yarn. Usually handloom weavers need Hank yarn

and the well organized sector cone yarn.

Machinery

Most of the machines installed are old. Some of them are new.

The old machines are reconditioned after a period of 10 years.

According to the BIFR, the company is planning to install new highly

technical and modern machines as the machines now used in

Cannanore Spinning and Weaving Mills are giving less productivity.

Building

The condition of the factory building is dilapidated and some

roof strengthening work has been attended to which is only temporary

in nature. Urgent attention has to be paid towards this matter.

Number of workers

There are around 550 workers and 19 administrative staff

working in the mill. Three shifts are functioning from 7:00 am to 3:30

pm, 3:30 pm to 12:00 am and from 12:00 am to 7:00 am. Both male

and female workers are employed in all sections of the mill. Different

categories of workers include permanent, temporary and gate badlies.

Trade unions are functioning in the mill and they educate the workers

and safeguard their interests. Further they have a very cordial

relationship with the management.

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Quality control

Routine quality control check up is done in each department on a

regular basis in order to ensure quality norms of the yarn. To monitor

their quality aspects an efficient quality control team is functioning in

the mill. Apart from the regular samples of input of each department is

being sent periodically to research institutes like SITRA, Coimbatore

and Textile Committee Testing Laboratory in Kannur. As per the study

report obtained from such research the necessary changes are being

done in the processing in order to maintain standard quality norms.

PRESENT POSITION OF THE MILL

The revival package scheme was introduced and the process is

now going on. Introduction of new machines and new workload are

included in the revival scheme with an objective to make the mill self-

sustaining without taking any financial help from the Government. The

whole work plan is currently slowed down and the management is

hopeful that the plan would be implemented as soon as possible.

It is also planning to become fully computerized in the

forthcoming future. After revival this mill too will be automated and

the workforce will be reduced with most of the workers being relieved.

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ORGANIZATIONAL STRUCTURE

General Manager

Accounts Manager

Accountant

Assistant Accountant

Cashier

Cost Guard

Spinning Manager

Assistant Spinning Manager

Shift Supervisor

Store Keeper

Store Clerk

Labour Welfare Officer

Time Officer

Head Time Keeper

Shift Clerk

Electrical Engineer

Electrician & Wireman

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PRODUCT PROFILE

In Cannanore Spinning and Weaving Mills yarn is the final product.

Different quality patterns of yarn are:

60s PV

45s PV

45s PVht

45s PVsht

Yarn is a long continuous length of interlocated fibres, suitable for

use in production of textiles sewing, knitting, weaving and rope

making. Very thin yarn is referred to as thread. Yarn used for fabric

manufacturing is made from spinning short length of various types of

fibres. Yarn is usually measured by weights. Synthetic fibres which

have high strength, artificial lusture and fibre retardant qualities are

blended with natural fibres which have good water absorbents and skin

comforting qualities in different proportions to manufacture yarn for

fabrics. The most widely used blends are cotton polyester and wool

acrylic fibre blends. The yarns from the cops are wound on paper cones

called cone yarn. Usually handloom weavers need hank yarn and the

well-organized sector cone yarn.

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PRODUCTION DEPARTMENTThe most important task of the production management is to deal

with decision-making related to production process so that the goods

manufactured are according to the specifications in the required

quantity, at minimum cess and as per schedule.

HIERARCHY

Spinning Manager and Engineer

Deputy Spinning Manager Assistant Spinning Manager

Senior Assistant

Junior Technical Assistant

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PRODUCTION PROCESS

The production process begins with the mixing process

and ends with the dispatch process.

Mixing process

Blow room

Carding

Drawing

Simplex

Ring frame

Cone winding

Packing

Dispatch

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OPENER PROCESS

The opener process is the first process carried on in the

production of the cone yarn. During this process Viscose Staple Fibre

(VSF) is put into an opening machine, in order to start the production.

Before this, anti-static oil is sprayed on viscose in order to avoid the

effect of static electricity from polyester and viscose. 0.18% of the total

weight of the mixture of polyester and viscose is the amount of

antistatic oil required. This oil is mixed with water in the ratio 1:11 and

is sprayed on the fibre and kept for a day before it is mixed and is

passed to the next department.

MIXING PROCESS

The second step in the production process is called mixing. In this

process Polyester Staple Fibre (PSF) is mixed with VSF in a pre-

determined proportion according to the requirements of yarn to be

manufactured in that particulars count. There are three varieties of

mixing in this mill. They are as follows:

60s PV in 65:35 Blend with yellow tinting.

45s PV in 65:35 Blend

50s PSF HT (100%) without tinting.

In order to identify the count and mixing proportion, Polyester

Staple Fibre is given a tint. Tinting helps in easy identification of

counts. Different food colours, light green, yellow and pink which can

be washed easily is used for tinting and is maintained until it is given to

the weaving merchants. Mixing coolies or mixing attendants as per the

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requirements. About five mixing coolies are employed in this

department per day and each of them has a workload of 850-kilo/ day.

BLOW ROOM

The loose mix collected from mixing department is charged to

the blow room where they are toppled manually in order to get a

homogeneous blend of various ingredients of the mix, polyester and

viscose. This toppled mix is then passed through the condenser in to

the tanker and through the pipes it is fed to the second blow room

machineries.

There are three structures in the blow room department and there

are two lines of blow room machineries. One is a double structure and

the other is a single structure. The objective of this process is to open

out thick masses of the new materials of finer pieces and to give a

thorough blending of polyester and viscose. Certain amount of

impurities of foreign matter and metal particles, if any has to be

extracted. The raw materials are converted into a sheet form and

wound on a rod. This is called a Lap, the length of the lap and weight

of each lap is determined. The length of lap is 37 yards and standard

weight is 13.5 Kg. A tolerance of plus or minus 300 gram is permitted.

The duration for forming one lap is six- minutes approximately.

CARDING PROCESS

Carding is the heart of spinning process. The lap collected from

the blow room is fed to the carding machines of the carding

department. In these machines sheet form of laps are converted into

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sliver form. Each lap is drafted 90 to 100 times and parallelization of

fibre takes place.

Here short fibres, if any are extracted and the fibres are

straightened and parallelized into uniform size to eliminate unevenness

in the yarn thickness and to ensure uniform weight. Cards are collected

to each count, according to the spin plan and the sliver is collected

from the carding machines count wise. Each sliver has a length of a

3000 metres and the time for producing 1 can of sliver is 1:00 hours.

There are about 50 carding machines running in this mill. Conventional

cards have an average life of 50 years.

DRAWING PROCESS

In the drawing process card sliver produced in the carding

department is passed on to this department. Here homogeneous

blending takes place.

The drawing process is of two types

1. Breaker head

2. Finisher head

Breaker drawing

In this process 8 cans of silver is fed to one delivery of drawing

machines and each of these 8 silvers are converted into a single silver

by blending and drafting and is collected in 1 can, 8 doubling is taking

place to form a single silver .

Each drawing machine can deliver 16 cans. In total, with 8 cans

placed each side and collected in two cans. A maximum of 3000 yards

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can be collected in a single can after doubling. The product breaker

head is breaker-drawing silver.

Finisher drawing

Here 8 cans collected from the breaker head of drawing

machines is again processed, in another head of drawing machines.

After this processing, about 4000 yards are collected in a can. The

silver collected from finisher drawing head is called finisher drawing

silver. This is the end product drawing department is 16 deliveries. A

drawing tender has to look after 6 deliveries.

SIMPLEX(SPEED FRAME)

In this department the finisher drawing sliver produced in the

drawing department is fed to the simplex machine (120 cans LF 1400

speed frames).

The sliver is passed through the drafting zone 12 to 13 times. A

certain amount of twist is imparted on the body of drafted material,

which is called Rove. This Rove is wound on plastic bobbins having a

package weight 7500 gm to 1 Kg. speed frame(Simplex) department

has 8 simplex machines having 12020 spindles.

SPINNING(RING FRAME)

In the spinning department bobbins that are brought from the

simplex department are reeled on the ring frame reel and Rove is

drawn through the drafting zone. The main object of spinning drafting ,

twisting and winding. Rove is drafted to a thinner form of yarn.

It is drafted to 20 to 27 times according to the count to be spun.

Different counts can have different twist, which binds the fiber with

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one another. This is called TPI (Twist per Inch). A yarn is wound on

plastic tubes that are called ‘Cops’. Average yarn content on a cop is

about 70 grams. These cop’s are taken into the next department that is

cone waiting.

CONE WINDING

In this department yarn on cops is converted into cone form. In

the cone department all types of defects in yarn is rectified and also

yarn on cone will be defect free. According to the requirement of the

market bigger cone of yarn are packed weighing 1.25 Kg each. A

winder has to look after 15-30 runs according to count of the yarn. The

full built cone of 1.25 Kg is removed and collected by the winder and

then it is stacked in the bins count wise in the packing department. The

cone winding machinery has 120 spindles that are winding 120 cones

at a time and it takes about 2.30 hours. This department has 8 cone

winding machines and thereby each machine requires 4 persons.

CONE PACKING

In this department the final product of yarn on cones are packed

in polythene bags. One such bag contains 40 cones and the Net Weight

of 1 bag is 50 Kg. They put necessary details like count, gross weight,

month and year of packing, bag number in lot numbers. Then these

bags are ready for dispatch to the market or depots. Altogether, there

are 6 workers in this department.

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TABLE- 1

Total production for the last five years

Year Quantity2005 – 2006 1357542 Kg.2006 – 2007 1412053 Kg.2007 – 2008 1263804 Kg2008 – 2009 969000 Kg.2009 – 2010 1221854 Kg.

CHART -1

2005 - 2006 2006 - 2007 2007 - 2008 2008 - 2009 2009 - 20100

200000

400000

600000

800000

1000000

1200000

1400000

1600000

Production

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RAW MATERIALS

Raw materials used for the production of yarn in Cannanore

Spinning and Weaving Mills are

Polyester Staple Fibre (PSF)

Viscose Staple Fibre (VSF)

Polyester Staple Fibre is one of the raw materials used in production

of cone yarns. Polyester is a synthetic fibre and also a petroleum

product. It is a coal tar derivative. The physical property of PSF is 1.2

D* x38mm.

Viscose Staple Fibre is a natural polymer made from wood pulp. It

is a regenerated cellulosic fibre, which is similar to natural cotton fibre

in respect of its property. The physical property of VSF is 1.5 D*

x44mm. VSF is the other raw material used in this identity for the

production in cone yarns.

D* - Denies (denotes Fineness of Fibre)

Suppliers of Raw Materials

In India, the production of polyester is a monopoly of two major

companies. Reliance India Limited and Indorama (Indonesian

Company). The main supplier of Polyester Staple Fibre for Cannanore

Spinning and Weaving Mill is Indorama. PSF is supplied in the unit of

bales. The weight of one bale is about 400 kg. approx. Landed cost of

one bale is Rs. 75.51 per kg. currently (including freight and excise

duty of 16% and education cess of 2%). Hence, the cost of one bale of

polyester is Rs. 28316.25/-.

Grasim Industries Ltd. is the only supplier of Viscose in India.

Viscose Staple Fibre is supplied in the unit of bale and one bale is

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about 384 kg. approx. Landed cost of one bale is Rs. 92.59 per kg.

currently (including freight and excise duty of 16% and education cess

of 2%). Hence, the cost of one bale of Viscose is Rs. 35554.56/-.

Raw Material Procurement Process in Cannanore Spinning and Weaving Mills

The procurement process begins with preparation of a spin plan.

A spin plan is a budget that shows the anticipated profitability in

producing different blends. It shows the cost incurred allocating a

certain number of machines for producing each count of yarn. A selling

price is fixed taking into consideration the weekly market trend. The

difference in selling price and cost provides the expected profitability.

The NTC form Coimbatore makes centralized purchases of raw

materials. It is purchased on a monthly basis. Each of the mills will

estimate their requirement according to the spin plan and intimate it to

the Head Office. The Head Office of NTC will collect the requirement

of all the regional subsidiaries and place it before the Price Negotiating

Committee in a meeting held every month by NTC in Coimbatore.

The price and the terms of payment are then fixed in the meeting

and the minutes of the meeting is sent to all the mills. The price is fixed

for 1 kg. This is inclusive of excise duty and educational cess.

In case of PSF, terms of payment include the following:

1. A cash discount of 0.50 Ps 1 kg. is allowed when payment is

made in advance.

2. A quantity discount is allowed for lifting the quantity fixed at the

meeting.

3. Interest at the 11% per annum on overdue will be charged by the

suppliers.

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Since, Grasim Industries are the only suppliers of Viscose, NTC

procures it from them. In case of Viscose, blend incentives are given

depending on the contents used in the production. Depending upon the

range of Viscose contents, that is, 35-45%, 45-65%, 65% and above,

the incentives will differ. A monthly production report will be sent to

the suppliers and according to the count demanded, incentives will be

provided. The raw materials are transported by lorries for whom the

payment is made by the suppliers.

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Finance Department

All the financial revenues and expenditure of the mill come

under the control of NTC. The main sources of revenue for the mill is

the sale of yarn and the main expenditure incurred are for procurement

of raw materials payment of wages and salaries and payment of

electricity charges. In CS & WM, Accounts Manager is the head of

financial department. He is in charge of all the matters related to

finance in CS & WM. There are three types of auditing in CS&WM.

They are: Internal auditing, Statutory auditing and Government

auditing. The auditing process is fully computerized in CS&WM.

HIERARCHY

Accounts Manager

Deputy ManagerAccounts

Senior Assistant

Junior Assistant

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General Information

Bankers: State Bank of India, State Bank of Travancore

Auditors: M/S Jacob & George (Chartered Accountants)

Significant Accounting Policies

1. Fixed assets and depreciation

i. In the case of fixed assets acquired as a result of nationalization,

the life of the assets for depreciation purpose has considered as if

they were new. These assets have been taken at the value as then

approved by the Board of Directors of the corporation. The

assets acquired subsequently are stated at cost.

ii. Depreciation on fixed assets is provided on the straight line

method as per section 205 (2) (b) of the Companies Act, 1956.

iii. Depreciation has been provided for in accordance with circular

number of 14 (9 h). File No. 1/12/92-CL-U dated 20/12/1993 of

the Government of India, Ministry of Law, Justice and Company

Affairs, Department of the Company Affairs, on the original cost

of all the assets including the existing assets including the

existing assets at the rates prescribed in the schedule XIV of the

Companies Act, 1956, retaining the residual at 5 %.

iv. For the fixed assets required after 01.04.1974 and whose actual

cost does not exceed at Rs. 5000/-. Depreciation has been

provided 20%.

v. Depreciation on the amount capitalized subsequently on account

of foreign exchange fluctuation is provided prospectively over

the residual useful life of the asset.

vi. Gains or losses on disposal of fixed assets are recognized in the

profit and loss account.

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2. Inventories

Valuation of inventories is as follows:

a. Stores, spares, dyes, chemicals and coal are at weighted average

cost in respect of inventory (consumable stores/spares) the

provision is made as follows:

Value of items held in and not moved for more than 5 years -

50%

Value of items held in stocks and not moved for more than 3

years - 25%

Value of items held in stocks and not moved for up to 3 years -

Nil.

b. Raw materials at weighted average cost or net realizable value

whichever is lower.

c. Finished goods packed cloth and yarn at cost or net realizable

value after making provisions for obsolescence, whichever is

lower.

d. Waste at net realizable value.

e. Materials in process:- Spinning and weaving in process loose

yarn, cloth-in-process at lower cost or net realizable value.

f. The unfinished job conversion contracts for yarn and cloth are

recognized as work in process valued at contracted price less

expenses still to be incurred by making ready for delivery.

3. Investment

a. Quoted value at lower cost or market value

b. Unquoted value at cost.

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4. Debt or receivable

i. Debt or receivables from private parties which are doubted of

recovery or adjustment and outstanding for more than three

years

ii. Debts or receivables from the sister concern into subsidiaries.

Employees of the mill/ Government department/ other PSUs.

5. Prior period expenses and income

Expenses and income of prior years less than Rs. 10000/- in each

case has been charged or accounted in the current year itself.

6. Repairs and maintenance

Store consumptions, salaries and wages incurred on

maintenance are charged to primary held of accounts.

7. Carrying charge

Carrying charges on cotton purchase has been accounted under

administrative expense.

8. Gratuity

The gratuity liability in respect of existing employees has been

calculated on actual valuation, based on February month

earnings.

9. Insurance claims

Insurance claims arising out of fire accident, machinery break

down, transit loss and other miscellaneous losses will be

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accounted only when the claim is admitted by the insurance

and the claim voucher discharged by the company.

10.Foreign currency liability

The foreign currency liability in respect of import of machinery,

under deferred payment guarantee arrangement through holding

company, is revalued at the prevailing market rates as on the

Balance Sheet.

The adjustments for the differences, if any in respect of:

a. Principal amount is adjusted to the cost of machinery.

b. Interest accrued up to the date of balance sheet is dealt within the

profit and loss account.

c. Unaccrued future interest is treated as current asset.

11.Foreign currency transaction

The transactions in foreign exchange are accounted at

exchange rate prevailing on the date of transaction. Any

exchange gains or losses arising out of the subsequence

fluctuation are accounted for in profit and loss account except

loss relating to acquisition of assets.

12.Leave with wages or salary provision

Provision for leave with wages or salary is made for the

number of days of the credit of the employee on date of

balance sheet based on February month earnings.

13. Expenditure on voluntary retirement scheme

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Expenditure incurred for implementation of voluntary

retirement scheme is charged to profit and loss account in the

year in which the employees relieved and the same is treated as

an extra ordinary item.

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SALES AND MARKETING DEPARTMENT

TABLE-2

Total sales in the last five years

Year Sales2005 - 2006 Rs. 15826002006 - 2007 Rs. 12765702007 – 2008 Rs. 10614002008 - 2009 Rs. 1229513702009 - 2010 Rs. 156397972

CHART- 2

2006 2007 2008 2009 20100

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

1582600 1276570 1061400

122951370

156397972

Sales

Sales

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The final product of Cannanore Spinning and Weaving Mill is

yarn. The market for yarn is a highly competitive one and therefore the

prices keep fluctuating, which in turn affects the quantity demanded.

The main consumers of yarn are the weaving merchants and looms.

Yarn is their raw material with they produce fabrics. Most of the

fabrics thus produced is exported to different countries and also used

for domestic purpose within the country. Hence, it is absolutely a must

that the yarn is of very good quality. Otherwise they will be

immediately rejected and returned to the mill itself.

In case of Cannanore Spinning and Weaving Mill, the

manufactures have direct contact with the depot keepers. Depot

keepers are traders who purchase the yarn from various mills and sell it

to different consumers. There are various depot keepers who purchase

yarn from NTC mills and some of the main ones are located in

Maharashtra (Bhiwandhi), Gujarat (Surat, Ahmadabad), Delhi etc.

The Cannanore Spinning and Weaving Mills sell most of its yarn

to the depot keeper of Bhiwandhi (Maharashtra). Various counts of

yarn will be produced according to the quantity demanded by the

deport keepers. They inform the mill about the changing demand

conditions.

Cannanore Spinning and Weaving Mills does not sell its

products in Kerala, but sold to Bombay and Ahmadabad. Every week

meeting is held to fix the yarn price. There are four depots, three in

Bombay and one in Ahmadabad. The depots in Bombay are Htel

Enterprises, Shah Enterprises and Sangeetha traders. The stock is sent

on 1st of every month to each depots. 50 paise discount is allowed for

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each kg. of stock sold before 5th. Out of the cash received from depots,

60% goes to Sub Office, Bangalore and 40% comes to Cannanore

Spinning and Weaving Mills.

Fixing of rates for the yarn

The price of yarn produced in various NTC mills located all over

India is fixed by yarn pricing committee. For the regional subsidiaries

(APKK & M) and (TN), the committee holds its meeting in

Coimbatore (TN). The price fixed by the committee is sent to the

various mills along with minutes of the meeting. According to the price

fixed, the yarn will be allocated to the depot keepers along with the

rates.

Each bag contains about 40 cone yarn, weight 1.25 kg. each.

Gross weight of a pack is 54.1 kg. and the net weight is 50 kg. The

packed sacks of yarn are loaded into lorries. Each lorry contains about

180 to 250 sacks.

The lorries are hired on contract basis for which quotations are

called for. The transport company, which quotes the lowest price, is

selected. These lorries transport the yarn to godowns owned by NTC.

All documents will be sent to the godown. They in turn inform the

depot keepers about the arrival of the stock. The depot keepers can take

the yarn after making the payment for it. If they make the payment

within two days they can avail a discount and send the remaining

amount to the mill. The depot keepers have to produce the proof of

delivery to the godown keepers of the NTC.

The godowns of NTC serve a dual purpose:

It helps in centralized control of sales.

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It provides the buyer with storage facility.

The depot keepers will take the yarn from these godowns only in

small quantities by sending slips. However, payment will be made for

the whole lot even though the sale is made in small quantities. Sales

report and accounts report will be consolidated by the depot keepers

and send to the respective mills. The sale of yarn is made on cash basis

only and only after actual sales is made; it will be recorded in the

books of accounts of the mill. No discounts or concession of any type

can be provided to the consumers without the permission of NTC.

Depot keepers receive 1.5% commission of the ex-mill value on the

sales made of the NTC products. They represent NTC product in the

yarn market and are also dealers of yarn for various other mills.

List of depot keepers of Cannanore Spinning and Weaving Mills

1. Messers Htel Enterprises

2. Messers Shah Enterprises

3. Chopra Textile (Ahmadabad)

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Stores DepartmentIn Cannanore Spinning and Weaving Mills, the stores

department is a separate building built for preserving material, spares and finished goods. It is functioning under the control of Spinning Manager (SM). The department’s main task is to store spare and stationary items needed by the undertaking and issue it at the time of need.

One of the main functions of the stores department is to purchase

the spares and stationary as per the requirement of the undertaking. For

this the stores department must get the purchase indent which is a

journal requisition letter sent by the required department with the sign

of the factory manager to the store keeper.

If the required spares are of low cost, the spares are purchased

from the local market and then it is passed to the respective

department. In case of high cost of spares, purchase committee that

consist of Chairman, General Manager, Factory Manager, Accounts

Manager, Engineer and stock keeper will take the decision regarding

the purchase. The high value spares are purchased by inviting

quotations and quotations from at least three suppliers is must.

The following are the procedures followed in the selection of

quotations:

1. Inviting the quotations

2. Receipt of quotations

3. Opening of quotation

4. Tabulation

5. Verification

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6. Placing order

In the stores department racks and cupboards are being maintained

for storing of spares. In order to control and record different

transactions of material, Bin Card is used and it is tagged with each

stock.

Bin Card is a quantitative record showing receipt, issue and closing

balance of particular items of stores. It is possible to know the stock

position as each and every transaction of materials is entered into Bin

Card with date.

In Cannanore Spinning and Weaving Mills there is a formal

procedure for the issue of materials. Every department has to follow

this procedure in procuring the materials. Firstly, the department

requiring materials has to prepare a requisition slip in which the

material needed, quantity etc. are written. Then this requisition has to

be signed by the Spinning Manager and then it is passed to the stores

department. Through this requisition slip the store keeper issue the

requested list of materials to the department and these issues are noted

in issue register. In order to exercise an efficient control over the stores

department, the store keeper must prepare and maintain different

registers.

Following are the registers maintained in the stores department:

1. Purchase register

2. Issue register

3. Purchase order register

4. Stock register

5. Quotation register

6. L/R register

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Inventory Management

The need for inventory management with uniform policy

throughout the nine subsidiary corporations is the prime and pressing

need of the hour, as most of the units is yet to turn as viable units and

very few units are operating with very meager profits.

Inventory management helps to bring uniformity in the policies,

procedures and methods to be adopted for the material management

function in all the mills under the control of NTC.

Objectives of inventory management in Cannanore Spinning and

Weaving Mills:

a. To provide timely assistance for the mills

b. To ensure uninterrupted supply of materials without stock or

excess storage

c. To achieve standardization

d. To reduce heavy investment in inventory

e. To assume mills the right quality at right price at the right time.

In Cannanore Spinning and Weaving Mills inventory is maintained in

the following ways:

i. Stores, spares, dyes, chemicals and coal are at weighted average

cost.

ii. Raw materials at weighted average cost or net realizable value

whichever is lower.

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iii. Finished goods packed cloth and yarn at cost or net realizable

value whichever is lower, yarn stock in depot at landed cost or

net realizable value whichever is lower.

iv. Stock with retail shop at landed cost/ latest landed cost or

realizable value after making provision for obsolescence,

whichever is lower.

v. Waste at net realizable value.

vi. Materials in process:- Spinning and weaving in process loose

yarn, cloth-in-process at lower cost or net realizable value.

vii. The unfinished job conversion contracts for yarn and cloth are

recognized as work in process valued at contracted price less

expenses still to be incurred by making ready for delivery.

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HUMAN RESOURCE

DEPARTMENT

The employees of an organization are precious and the backbone

that plays a stupendous role in its development and productive

activities. Its employees significantly influence the prosperity of the

organization. Liberalization and globalization has created challenging

opportunities to make its human resource competent enough to take a

challenge. All these calls for the existence of HRM department in the

organization.

Human Resource Management is an art and science of managing

people who are engaged in productive occupations. Human Resource

Management is the organizational function that deals with issues

related to employees such as compensation, hiring, performance

management, organizational development, safety, wellness, benefits,

employee motivation, communication, administration and training.

Human Resource Management is the function within an

organization that focuses on recruitment, management and provides

direction for the people who work in the organization. Human resource

management can also be performed by line managers.

Human resource management is, no doubt, an outgrowth of the

older process and approach. But it is much more than its parent

disciplines –personnel management and behavioral science. Its

approach is more comprehensive from beginning to end. Its emphasis

is not only on production and productivity but also on quality of life .It

seeks to achieve the fullest development of human resource and fullest

possible socio-economic development.

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Maximum individual development, developing working

relationship and effective utilization of human resources are the

primary goals of human resource management.

A healthy climate, characterized by the values of openness,

enthusiasm, trust, mutuality and collaboration is essential for

developing human resources.

Definition of Human Resource Management

According to Dale Yoder “the management of human resource is

viewed as a system in which participants seek to attain both individual

and group goals.”

Process of Human Resource Management

1. Acquisition function :

Acquisition process is concerned with securing and employing

the people possessing the required kind and level of human resources

necessary to achieve the organizational objectives. The acquisition

function begins with planning. It also covers the function such as job

analysis, human resources planning, recruitment, selection, placement,

induction and internal mobility.

2. Development function:

It is the process of improving, moulding and changing the skills,

knowledge, creative ability, aptitude and value. The development

function can be viewed along three dimensions.

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Employee training- it is the process of imparting to the

employees the technical and operating skills and knowledge. It also

includes changing the attitudes among workers.

Management development- it is primarily concerned with

knowledge acquisition and the enhancement of an executive’s

conceptual abilities.

Career development- it is a continual effort to match long-term

individual and organizational needs. When human resources have been

developed effectively, one can expect to have competent employee

with up-to-date skills and knowledge.

3. Motivation function :

The motivation function begins with the recognition that

individuals are unique and that motivation techniques must reflect the

needs of each individual.

4. Maintenance Function :

The maintenance function is concerned with providing those

working conditions that employees believe are necessary in order to

maintain their commitment to the organization.

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

In order to achieve organizational objectives integration of

employers and employees interest is necessary. In this light it can be

summarized as follows:

i. To improve the services rendered by the enterprise to society

through building better employee morale, which leads to more

efficient individual and group performance. Thus HRM seeks to

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manage change to the mutual advantage of individuals, groups,

the organization and the society.

ii. To establish in the mind of those associated with the enterprise-

employees, shareholders, creditors, customers and the public at

large- the fact that the enterprise is rendering the best service of

which it is capable and distributing the benefits derived from

their fairly and contributing to the success of the enterprise.

iii. To create and utilize an able and motivated workforce to

accomplish the basic organizational goals.

iv. To organize and satisfy individual and group needs by providing

adequate and equitable wages, incentives, employee benefits,

social security, challenging work prestige, recognition, security

status etc. Thus an organization can identify and satisfy

individual and group goals by offering appropriate monetary and

non-monetary incentives.

v. To employ the skills and knowledge of employees efficiently and

effectively i.e., to utilize human resources effectively in the

achievement of organizational goals.

vi. To strengthen and appreciate the human assets continuously by

providing training and development programmes.

vii. To maintain high employee morale and sound human relations by

providing the various conditions and facilities.

viii. To enhance job satisfaction and self-actualization of employees

by encouraging and assisting every employee to realize his full

potential.

ix. To provide facilities and conditions of work, and create

favourable atmosphere for maintaining stability of employment.

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HUMAN RESOURCE DEPARTMENT OF CANNANORE

SPINNING AND WEAVING MILLS

Human Resource department plays a very important function in

management concept. It is said to be a method of developing the

potentialities of employees so that they will get maximum satisfaction

out of their work and as a result give their best efforts to the

organization.

HIERARCHY

Labour Welfare Officer

Time Keeping

Senior Assistant

Junior Assistant

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In Cannanore Spinning and Weaving Mills, the personnel

department has the task of keeping the organization together as an

outgoing entity in the face of external and internal stresses and is of

considerable importance. Here employee becoming surplus will not be

retrenched but will be redeployed suitably filling up the existing

vacancies. Whenever vacancies arise in future, the surplus staff will be

posted as per seniority. Necessary alternations in the duties and

responsibilities of remaining staff members shall be made for the

effective and smooth functioning of the mills.

The resultant surplus staff fills temporary vacancies and carries

out alternative duties and responsibilities as per direction of the

management until they are allocated to permanent position.

It is agreed that the staff members in all sections shall work as a

team and every one shall attend to other members work also as and

when required.

Functions of Human Resource Department in Cannanore

Spinning and Weaving Mills

In Cannanore Spinning and Weaving Mills, the Personnel

Manager is the head of personnel department. He is in charge of

administration disciplines and other administrative functions.

The following are the main areas of administration:

1. Recruitment, training and promotion

Currently no recruitment is taking place in Cannanore Spinning

and Weaving Mills. Time to time training program is conducted.

Apprentice training is held as per the Apprentice Act. Clerical

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Staffs is decided by the NTC. Promotion for the workers or

staffs is based on seniority level over merit.

2. Provident Fund contribution

All the employees are covered under PF and ESI Act; the

employees contribute 10% of their wages to Employees

Provident Fund or salary with 10% contribution by the

employer. The employees are eligible for Employees Pension

services with a ceiling of Rs. 6500 per month.

The pension is worked out as per the following formula:-

1/70 x pensionable salary x pensionable service.

3. ESI contribution

4.75% of employer’s contribution

1.75% of employee contribution

Medical benefit, accidental benefit, sick benefit leave are

provided if necessary. Funeral benefits are also provided if any

one dies during the period of his service.

4. Gratuity

Gratuity is calculated using the formula:-

Per month salary/ 26 days x 15 days

(Monthly salary will be calculated only for 26 days)

The present ceiling limit of total amount of gratuity payable is

10 Lakhs.

5. Wage administration

There are two types of wage payment systems followed in

Cannanore Spinning and Weaving Mills according to the

production stages. For mixing, blow room and carding wages are

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paid on the basis of piece rate system and for all other

production process time rate system is obtained.

6. Retirement benefit

At the time of retirement all these benefits are provided.

Gratuity

Provident Fund

Pension

Leave with wages if any.

7. Administrative actions

If a worker takes a long leave the management won’t terminate

him suddenly. There is a procedure in Cannanore Spinning and

Weaving Mills before termination. First the absentee is admitted

for counseling. Thereafter, a notice is sent and then warning

notice is sent. Even then he continues to be absent a call notice is

sent, and then the management may suspend him and after

further enquiries of termination is held as per standing orders.

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There are two categories of workers in CS & WM and they can

be classified into the following:

Number of workers There are about 540 workers and 19 administrative staff working

in the mill. 3 shifts are functioning from 7:00am - 3:30pm,

3:30pm - 12:00am and from 12:00am - 7:00am. Both male and

female workers are employed in all sections of the mill.

Different categories of workers include permanent, temporary

and gate badlies.

Workers

Skilled

Jobbers Fitters Maistri

Unskilled

Spinners Doffing boy

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TRAININGMeaning of Training:

Training is the process of increasing the knowledge and skills for

doing a particular job. It is an organized procedure by which people

learn knowledge and skills for a definite purpose. The purpose of

training is basically to bridge the gap between job requirements and

present competence of an employee. Training is aimed at improving

the behavior and performance of a person.

Training is often described as focusing on the acquisition of

KSAs (Knowledge, Skills and Abilities) needed to perform more

effectively one’s current or future job. Training is job oriented or

occupational, having an immediate utilitarian objective, and the major

burden of training falls upon the employers. Training is essentially

practical consisting of knowledge and skills required to perform

specific tasks. Training is valuable to employees because it will give

them greater job security and an opportunity for advancement.

Definition of Training:

According to Edwin.B. Flippo “Training is the act of

increasing the knowledge and skills of an employee for doing a

particular job”

What does training include?

Training enables the employees to get acquainted with jobs and

also increase their KSA. It makes a newly recruited employee fully

productive in the minimum of time. Even for the old workers, it is

necessary to refresh their job skills and to enable them to keep up with

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new methods and techniques as well as new machines and equipments

for doing the work. Training job will never be finished as long as the

organization remains in operation. Training includes the learning of

such techniques as required for the intelligent performance of different

tasks.

TRAINING EFFECTIVENESS

The training effectiveness is concerned with studying about the

current practices used by the training department for training

employees of this organization.

According to one of the definitions “Training Effectiveness”

means ‘the extent to which the training activity fulfills its intended

purpose or function’. However, there has been lot of definitions given

by various experts in the field of Human Resource Management. One

of the noted definition is by Descy and Westphalen(1998), who defined

training effectiveness as ‘training that meets its objectives as defined

by its funding body’. This is a notable definition since it is undoubtedly

the funding body that ultimately decides whether or not training will be

made available. Whilst this is a useful heuristic, there are two points to

bear in mind. First, it is not always the case that the funders’ precise

objectives are transparent, although their general aims may be. Second,

whilst the funders may have objectives, it is only by relating the extent

to which these are perceived to have been met - by the various

stakeholders (e.g. individuals, enterprises) – that one can really

understand the extent to which the training has been effective. There

may also be unintended consequences of training that aid an

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individual’s employability – for example, improving ‘soft skills’ such

as an individual’s self-esteem, motivation or ability to work in a team.

Evaluation of the current training mechanism is done to

understand the following:

o Provide feedback on whether the existing training and

development activity is effective in achieving its aims.

o The extent to which the organization has benefited from

employee development and progress.

o To find out if the learning is being applied in the work

place.

o It helps you to understand the attitude of staff towards the

training programmes.

o It helps you to track the development of staff knowledge

and skills.

o Identifying training gaps and future training needs.

TYPES OF TRAINING:

Training programs may be of the following types.

i. Orientation Training

Induction or orientation training seeks to adjust newly

appointed employees to the work environment. Induction

training creates self confidence in the minds of employees.

ii. Job Training

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It refers to the training provided with a view to increase

the knowledge and skills of an employee for increasing

performance on the job.

iii. Safety Training

Training provided to minimize accidents and damage to

machinery is known as safety training.

iv. Promotional Training

It involves training of existing employees to enable them

to perform high level jobs.

v. Refresher Training

When existing techniques become obsolete due to the

development of better techniques, employees have to be

trained in the use of new methods and techniques.

Refresher training is designed to revive and refresh

knowledge.

NEED OF TRAINING

Job requirement - New and inexperienced employees

require detailed instructions for effective performance on the

job.

Technological change - Technology is changing very

fast. Now automation and mechanization have been increasingly

applied in offices and service sector. Increasing the use of fast

changing techniques require training in new technology.

Organizational viability - In order to survive and grow,

an organization must continually adopt itself to the changing

environment. An organization can build up a second line of

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command through training in order to meet its future needs of

human resource.

Internal mobility - Training becomes necessary when an

employee moves from one job to another due to transfer.

Remedial training - This training is arranged to

overcome the short comings in the behaviour and performance

of old employees.

METHODS OF TRAINING

There are many methods of training. The management should

select an appropriate method which is suited to the organizational

needs. The training methods are:

On-the-Job Training

The most common method used by the industry to train individuals is

on-the- job training. Virtually every employee from clerk to General

Manager gets some on-the –job training. Under this method, the

immediate superior who knows exactly what the trainee should learn to

do, give training at his workplace. Following are the on-the-job

training methods:

i. Coaching

Under this method, the supervisor guides or coaches his

subordinate to acquire knowledge and skill.

ii. Job or Position Rotation

The trainee is transferred systematically from one job to

another’ so he can get the experience of different jobs.

iii. Special assignment

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This is used to provide the employees with first hand

experience in working on the actual problem.

Off-The-Job Training

This type of training is not a part of everyday job activities.

Classroom or off-the-job instructions are useful, when the concept,

attitudes, theories and problem solving abilities are to be total. The

following are the off-the-job training methods.

i. Lecture Methods

It is a verbal presentation by an instructor to a large audience. It

is an excellent and economic technique for group training

ii. Conference Method

In this method, the participating individuals ‘confer’ to discuss

points of common interest for each other. It is an effective

training device for person in the possession of both conference

member and conference leader.

iii. Case Study Method

Under this method, the trainee may be given a problem to

discuss, which is more or less related to the principles already

taught. In this method, the trainee is given an opportunity to

apply his knowledge to the solution of a realistic problem.

iv. Sensitivity Training

A group consisting of 10 to 15 persons is selected. They can

share their experiences. This type of training is aimed at creating

and improving sensitivity to the feelings of the employee.

v. Role Playing

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Here trainers are required to play the role of supervisor. A

problem or work situation is given, in which they are expected to

take up that role.

vi. Simulation

It is an attempt to create a realistic decision making environment

for the future.

Steps in the Training Programme

Training is a costly and time-consuming process. This

training procedure discussed below is essentially an adoption of the job

instruction training course. The following steps are usually considered

as necessary.

i. Discovering or identifying training needs

A training programme should be established only when it is felt

that it would assist in the solution of specific problems.

Identification of training needs must contain 3 types of analysis.

a) Organizational analysis

b) Operational analysis

c) Man analysis

Organizational analysis

It involves the study of the entire organization in terms of its

objectives, its resources, resource allocation and its environment.

Operational analysis

It is a systematic and detail analysis of jobs. It is mainly to assess the

job contents, skills and aptitude required to perform jobs, the

knowledge and work behavior.

Man analysis

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The persons to be trained, changes required in the knowledge, skills

and aptitudes of the employees are to be determined.

ii. Preparing the instructor

The instructor is the key figure in the entire programme.

He must know both the job to be taught and how to teach

it. The training programmes then follow a general

sequence aimed at supplying the trainee with the

opportunity to develop his skills and abilities.

iii. Preparing the trainee

In putting the learner at ease, in stating the importance and

ingredients of the job and its relationship to workflow, in

explaining why he is being taught, in creating and

encouraging questions finding out what the learner already

knows about his job or other jobs.

iv. Presenting the operation

It is the most important step in the training programme.

The training should clearly tell, show, illustrate and

question in order to put across the new knowledge and

operations.

v. Try out the trainee’s performance

Under this, the trainee is asked to go through the jobs

several times slowly, explaining each step.

vi. Follow up

The final step in most training procedures is the follow up.

It is undertaken with a view to testing the effectiveness of

training efforts.

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Aims and Objectives

a. Primary objectives

To do a research on the effectiveness of training methods.

b. Secondary objectives

To find out how far employees are satisfied in their

designated job and how the present environment help them

to increase their productivity.

To understand what type of needs influence the employees

most and to find out ways to utilize employee needs to

achieve organizational objective.

To do a general search on valence and expectations of

employees and find out means to increase it.

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RESEARCH METHODOLOGY

RESEARCH:

Research is a process in which the researcher wishes to find out

the end result for a given problem and thus the solution helps in

future course of action. The research has been defined as “A careful

investigation or enquiry especially through search for new fact in any

branch of knowledge”.

RESEARCH METHODOLOGY:

The procedure using, which researchers go about their work of

describing, explaining and predicting phenomena, is called

Methodology. Methods compromise the procedures used for

generating, collecting, and evaluating data. Methods are the ways of

obtaining information useful for assessing explanation.

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RESEARCH DESIGN

“A Research Design is purely and simply the fame work or plan for the study that guides the collection of the data”.

Types of Research Design:

Exploratory Research Design Descriptive Research Design Casual or Experimental Research Design

In this study, the researcher has adopted Descriptive Research Design

Descriptive Research Design

A Descriptive Research Design is the one that simply describes something such as demographic characteristics of certain people who use something.

The descriptive study we typically concerned with determining frequently with which something occurs or how two variables vary together. This study is typically guided by an initial hypothesis. A descriptive study requires a clear specification of who, what, when, where, why and how aspects of the research.

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SAMPLIND DESIGN

Convenience Sampling:

The sampling adopted in this study was convenience sampling. As the name implies, the sample is selected because they are convenient to the researcher.

A convenience sample is used when you simply stop anybody in the street who is prepared to stop, or when you wander round a business, a shop, a restaurant, a theatre or whatever, asking people you meet whether they will answer your questions.

Sampling Unit:

A Survey is conducted in S&S Power Switchgear Equipment Limited at Sedarapet

Sample Size:

The sample size for the survey is 50

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LIMITATIONS OF THE STUDY

Since time limit is very less an intensive study is not possible.

The non-availability of certain data within the limited time is also one

of the limitations of the study.

Some data are confidential so they do not give more details.

There may be errors due to respondent’s bias.

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WORK EXPERIENCE OF EMPLOYEES

Table.1

Variable Number of

Respondents

Percentage

Less than 3 yrs 8 16

3 - 5 yrs 25 50

Above – 5 yrs 17 34

Total 50 100

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Chart. 1

WORK EXPERIENCE OF EMPLOYEES

less than 3 years 3 to 5 years more than 5 years0

5

10

15

20

25

30

35

40

45

50

Inference:

From the above table, it can be seen that one half of the

employees have an experience of 3-5 years in the job. While 34

percent of them have a work experience of above 5 years. Only

16 percent of employees were having experience less than 3

years.

Page 64: Training Project

TYPES OF TRAINING

Table.2

Particulars Number of

Respondents

Percentage

On-the-job

training

41 83

Off-the-job

training

9 17

Total 50 100

Page 65: Training Project

Chart. 2

Inference:

From the above table, it can be seen that a majority of

employees got On-the-job training at the time of joining.

TYPES OF TRAINING UNDER ON-THE-JOB TRAINING

Page 66: Training Project

Table. 3

Particulars Number of

Respondents

Percentage

Job rotation 8 16

Coaching 42 84

Special

Assignment

0 0

Total 50 100

TYPES OF TRAINING UNDER ON-THE-JOB

TRAINING

Chart. 3

Page 67: Training Project

Job Rotation Coaching Special Assignment0

10

20

30

40

50

60

70

80

90

Inference:

From the above table, it can be seen that a majority of the

employees got coaching method of On-the-job training. While

16% of them are trained in rotation method of On-the-job

training.

Page 68: Training Project

TYPES OF TRAINING UNDER OFF-THE-JOB TRAINING

Table.4

Particulars Number of Respondents

Percentage

Lecture Method

42 84

Conference Method

8 16

Seminar or team discussion

0 0

Total 50 100

Chart.4

Page 69: Training Project

84%

16%

TYPES OF TRAINING UNDER OFF-THE-JOB TRAINING METHODS

Lecture MethodConference Method

Inference:

From the above table, it can be seen that 84% of employee get lecture

method of Off-the-job training, 16% get conference method and none

of the employees are trained on seminar or team discussion.

Page 70: Training Project

INTERVAL OF TRAINING PROGRAMMES

Table. 5

Particulars Number of

Respondents

Percentage

Once in a month 0 0

Once in 6 months 0 0

Once in a year 50 100

Total 50 100

Page 71: Training Project

Chart.5

Once in a month

Once in 6 months

Once in a year

0%10%

20%30%

40%50%

60%70%

80%90%

100%

INTERVAL OF TRAINING PROGRAMMES

Percentage

Inference:

This table shows that 100% of employees get training once in a

year.

Page 72: Training Project

EFFECTS OF TRAINING

Table. 6

Particulars Number of

Respondents

Percentage

Performance

Improvement

33 66

Self confidence 8 16

Personality

development

0 0

Improvement of

products and

production

9 18

Total 50 100

Page 73: Training Project

Chart. 6

0

10

20

30

40

50

60

70

Effects of Training

Series 1

Inference:

From the above table, it can be seen that 66% of the employees

improved their performance through training method. While 16% of

employees creates self confidence through training method and 18%

improved the product and production through training method.

Page 74: Training Project

NUMBER OF TRAINING ATTENDED

Table. 7

Variable Number of

Respondents

Percentage

Less than 5 34 68

5-10 16 32

More than 10 0 0

Total 50 100

Page 75: Training Project

Chart. 7

Less than 5 5 to 10 More than 100

10

20

30

40

50

60

70

NUMBER OF TRAINING ATTENDED

Inference:

From the above table, it can be seen that 68% of the employees

attended less than 5 training sessions. 32% attended 5-10

training sessions and none attended more than 10 training

sessions.

Page 76: Training Project

TYPES OF TRAINER

Table.8

Particulars Number of

Respondents

Percentage

External Expert 0 0

Company Trainer 50 100

Total 50 100

Page 77: Training Project

Chart. 8

100%

TYPES OF TRAINER

External expert

Company Trainer

Inference:

It is clear from the table that only company trainers are engaged in

giving training to employees.

Page 78: Training Project

TYPES OF TRAINING

Table.9

Chart. 9

Particulars Number of

Respondents

Percentage

Group Training 37 74

Individual

Training

13 26

Total 50 100

Page 79: Training Project

74%

26%

TYPES OF TRAINING

Group TrainingIndividual Training

Inference:

From the above table, it can be seen that 74% of the employees

preferred group training while only 26% preferred individual training.

Page 80: Training Project

IMPACT OF TRAINING IN CAREER DEVELOPMENT

Table.10

Variable Number of

Respondents

Percentage

Agree 50 100

Disagree 0 0

Total 50 100

Chart. 10

Page 81: Training Project

IMPACT OF TRAINING IN CAREER DEVELOPMENT

Disagree

Agree

0 10 20 30 40 50 60 70 80 90 100

Inference:

From the above table, it can be seen that whole of the

employees agreed that training is helpful to improve the employee

career.

Page 82: Training Project

RATING OF PRESENT TRAINING PROGRAMMES

Table.11

Particulars Number of

Respondents

Percentage

Excellent 7 14

Very Good 10 20

Good 30 60

Poor 3 6

Total 50 100

Chart. 11

Page 83: Training Project

60%20%

14% 6%

RATING OF PRESENT TRAINING PROGRAMMES

GoodVery GoodExcellentPoor

Inference:

From the above table, it can be seen that 60% have the response as

good, 20% stated it is very good, 14% rated that training programme is

excellent and only 6% rated training programme as poor.

Page 84: Training Project

FINDINGS OF THE STUDY

The company provides training to all workers at the time

of joining.

Most of the workers preferred the group training system

more than individual training.

All the workers agreed that training is helpful to improve

the employee’s career.

There is no highly efficient and effective training system.

Most of the workers prefer job rotation method of training.

The company does not prefer to select experienced

candidates as workers. Previous work experience is not the

important criteria for getting selection.

84% of the workers were working in the company for

more than 3 years.

It is found that the company provided coaching training

method to most of the employees under on-the- job training

system. Currently the company mainly provides job rotation

training.

The company focused on lecture method of training under

‘of f the job training’, especially for safety training.

Human Resource Department does not provide training

regularly.

The majority of workers improved their performance

through training system.

All workers agreed with the fact that training is an

essential part of every organization.

Page 85: Training Project

RECOMMENDATIONS

There should be regular training sessions.

Training must be focused to enhance the knowledge about

the latest technological change.

Special attention must be given to provide highly efficient

and effective training.

Safety training should be given, especially to new

workers.

Effectiveness of training programmes should be evaluated

periodically.

The follow ups and reviews on training learning needs to

be undertaken by the training department on a regular basis and

document it.

Page 86: Training Project

CONCLUSION

Training method play an important role in enhancing

productivity and overall performance of workers. It has great influence

in boosting the morale and loyalty of employees. Training is essential

to develop skills and also update knowledge.

CS&WM provide only high quality and high standard products.

The company produces innovative parts like twist and super high twist

synthetic fibres, which are of high element in the current market. So it

has forced a large market in India.

The aim of the study is to find the effectiveness of training

methods, and the merits and demerits of training methods. Employees

are satisfied with the training methods of the company. They require

more training programmes especially for safety and to keep pace with

the latest technological changes.

Page 87: Training Project

QUESTIONNAIRE

1. Personal data

Name:

Age:

Sex: a) Male b) Female

Department:

Nature of work:

Qualification: a) Below SSLC b) SSLC C) PDC/+2 d) Degree e) PG f) Diploma

Year of service: a) 0-2years b) 2-5years c) Above 5 years

2. Did you get On-the -job training or Off-the-job training at the time of joining?

a) On-the-job training b) Off-the-job training

3. What type of On-the-job training did you get?

a) Job rotation b) Coaching c) Special Assignment

4. What type of Off-the-job training did you get?

a) Lecturer method b) Conference c) Seminar or Group discussion

5. How often do you get training?

a) Once in a month b) Once in 6 months c) Once in a year

6. Did you get training for any of the following purpose?

a) Performance improvement b) Personality Development

Page 88: Training Project

c) Improvement of products and production

7. How many training session did you attend?

a) Less than 5 b) 5 to 10 c) More than 10

8. Whom did you get as trainers?

a) External expert b) Company trainers

9. Rate the present training programme available to you

a) Excellent b) Very good c) Good d) Poor

10. Which of the following training do you prefer?

a) Group training b) Individual training

11. Do you think training help employees to improve his career?

a) Agree b) Disagree

12. What is your opinion about employee morale and discipline?

a) Very good b) Good c) Average d) Bad

13. Did you get more opportunities for your advancement?

a) Strongly agree b) Strongly disagree

c) Agree d) Disagree

14. Are you able to adjust when an unpleasant circumstance arrives?

a) Yes b) No

15. “Training is an essential part of every organization” how far do you agree with the statement?

a) Agree b) Neither agree nor disagree c) Disagree

Page 89: Training Project

BIBLIOGRAPHY

Data collected directly from workers.

References

H.R.M – T.N.CHHOBRA

H.R.M – C.B.GUPTHA

H.R.M – ABDHUL ASSIZ

Website address

www.textile spinning.com

www.entyce .com

www.textile fibre.com