1.

INTRODUCTION

1.1. INTRODUCTION TO THE STUDY

This study is conducted to learn more about the organizational study on NILA
BAKERS AND CONFECTIONERIES PVT LTD is the leading food production company in
Kerala.

Organization is the structural frame work of duties and responsibilities required of

personal in performing various functions with a view to achieve business goals through
organization. Management tries to combine various business activities to accomplish
predetermined goals. Every organization has its own culture, tradition and methods of actions
with constitute its climate.

The organizational study was familiarizing us with the working of various

departments for particular period. So that can have an exposure to practice side. This study
was to familiarize the students with business organization and to enable the students to
understand how key business process is carried out in an organization. To understand how
information is used in an organization for decision making at various levels and to relate
theory with practice.

The basic objective of conducting organization study is simply to understand and

learn the actual structure and working of each and every department of an organization. An
organizational structure defines how activities such as task allocation, coordination and
supervision are directed towards the achievement of organizational aims. It can also be
considered as the viewing glass or perspective through which individuals see their
organization and its environment.

An organization can be structured in many different ways, depending on their

objectives. Organizational structure allows the expressed allocation of responsibilities for
different functions and processes to different entities such as the branch, departments,
workgroup and individual.

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1.2. OBJECTIVES OF THE STUDY

 To study the functioning of various departments in the organization.

 To understand how the key business processes are carried out in an organization.
 To get more information about production processes of the company.
 To know the average profit of the organization.
 To get information about various promotional activities of the company.
 To study the strength, Weakness, Opportunities of organization.
 To understand the performance measurements of employees and various employees
 Welfare activities, training activities.

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2. INDUSTRY PROFILE

INDIAN FOOD INDUSTRY

The Indian food processing industry stands at $135 billion and is estimated to grow
with a CAGR of 10 per cent to reach $200 billion by 2016. The food processing industry
contributed 7% to India‘s GDP. The industry employs around 13 million workers directly and
about 35 million indirectly.

The industry is segmented into sectors namely, milk and allied products (dairy), meat
and poultry, seafood, bakery and confectionery, fruit and vegetables, grain, pulses and
oilseeds (staple) products, alcoholic and non-alcoholic products (beverages), and packaged
foods. The classification is not distinct as many processed products overlap different
segments.
India ranks No. 1 in the world in production of Milk (Fresh, whole, buffalo), Pulses,
Ginger, Chick Peas, Bananas Guavas Papayas and Mangoes. Further, India ranks No. 2in the
world in production of Rice, Wheat, Potatoes, Garlic, Cashew Nuts, Groundnuts, Dry Onion,
Green Peas, Pumpkins, Gourds, and cauliflowers. With the huge production base India can
easily become the leading food supplier to the world and at the same time serving its vast
growing domestic market with over a billion people.
Investments in the registered food processing units have been growing in the recent
years. In 2015-16 the fixed capital of registered food processing units have increased by
18.93% over the previous year.
Food processing industry in India is increasingly seen as a potential source for driving
rural economy as it brings synergy between industry and agriculture. A developed food
processing industry is expected to lead increase in farm gate prices translating into increased
rural incomes, reduce wastages, ensure value addition, promote crop diversification, generate
employment opportunities as well as export earnings. With such a large and diversified
production base coupled with low manpower cost and modern technology, the Indian food
processing sector is poised for growth, if the advantages are leveraged optimally.
The growth is driven by the fact that the central government has given a priority status
to all agro-processing businesses. Government incentives in the field of mega food parks,
cold chain and exports benefits are also playing an important role in promoting food
processing.

3
 The major challenges are investments at different points of the supply and value
chain, proper research, farm and lab connectivity, up gradation of technology, increase in
farm holding, skill and manpower training, backend and front-end integration and cold chain
integration.
The opportunities in the food processing industry are vast. However, there is a need to
improve technology and productivity to be competitive globally. As the economy grows, the
food processing industry will offer bigger opportunities to the new as well as the existing
players.

India has the second largest arable land of 161 million hectares and has the highest
acreage under irrigation. Next to China, India ranks second largest food producer in the world
and haste potential to immerge the biggest with its food and agricultural sector. India
accounts for less than 1.5% of international food trade despite being one of the world‘s major
food producers, which indicates huge potential for both investors and exporters.
STATUS OF FOOD INDUSTRY IN INDIA
SI
NO

1 Rank of Industry 5th

2 Employment in Lakhs 14

3 % of total Industrial Labour Force 19

4 Total industry output percentage 14

5 Output as % of GDP 5.5

6 Estimated Turnover (rupees in crores) 144000

7 Unorganised Sector 111200

4
HISTORY OF FOOD INDUSTRY

Food processing dates back to the prehistoric ages when crude processing
Incorporated slaughtering, fermenting, sun drying, preserving with salt, and various types of
cooking (such as roasting, smoking, steaming, and oven baking). Salt preservation was
especially common for foods that constituted warrior and sailors 'diets, until the introduction
of canning methods. Evidence for the existence of these methods can be found in the writings
of the ancient Greek, Chaldean,

Egyptian and Roman civilizations as well as archaeological evidence from Europe,

North and South America and Asia. These tried and tested processing techniques. Remained
essentially the same until the advent of the industrial revolution. Examples of ready-meals
also exist from preindustrial revolution times such as the Cornish pasty and Haggis. During
ancient times and today these are considered processing foods. Food processing has also
helped create quick, nutritious meals to give to busy families.

Modern food processing technology in the 19th and 20th century was largely
developed to serve military needs. In 1809 Nicolas Appert invented a vacuum bottling
technique that would supply food for French troops, and this contributed to the development
of tinning and then canning by Peter Durand in 1810. Although initially expensive and
somewhat hazardous due to the lead used in cans, canned goods would later become a staple
around the world. Pasteurization, discovered by Louis Pasteur in 1862, was a significant
advance in ensuring the micro-biological safety of food.

In the 20th century, World War II, the space race and the rising consumer society in
developed countries (including the United States) contributed to the growth of food
processing with such advances as spray drying, juice concentrates, freeze drying the
introduction of artificial sweeteners, coloring agents, and preservatives such as sodium
benzoate. In the late 20th century products such as dried instant soups reconstituted fruits and
juices, and self cooking meals such as MRE food ration were developed.

In Western Europe and North America, the second half of the 20th century witnessed
a rise in the pursuit of convenience. Food processing companies marketed their products
especially towards middle-class working wives and mothers. Frozen foods (often credited to

5
Clarence Birdseye) found their success in sales of juice concentrates and "TV dinners".
Processors utilized the perceived value of time to appeal to the post-war population, and this
same appeal contributes to the success of convenience foods today.

GLOBAL FOOD INDUSTRY

The Global Processed Food Industry is valued at US $ 3.2 trillion and accounts for
over 3/4th of global food sales. Despite the large size of the industry, only 6% of the
processed food is traded the world over as compared to bulk agricultural commodities where
16% of produce is traded. Growth of the sector has been the highest in developed economies,
especially across Western Europe, North America, Japan and Australia. USA is the single
largest consumer of processed food and accounts for 31% of global sales. The food
processing sector has seen substantial growth in developing economies with increase in GDP,
per capita income and the resultant changes in lifestyle. Organized retailing and availability
of better processing technologies too have contributed to the accelerated growth of the sector.

The food processing industry is characterized by intense competition, with the most
reliable firms performing well by focusing on efficiency in terms of fast processing and
distribution. The global economic recession had less effect on the food processing industry
than other industries due to rising demand for pre-packaged food. The industry is becoming
increasingly automated, and is therefore seeing labour costs decline. The advantages of food
processing include greater food consistency, longer shelf life, removal of toxins, reduction of
food borne diseases and cheaper food.

The global fresh meat market is expected to produce 300 million tons by 2016. A
rising global population and extensive urbanization are driving forces for the market. Asia-
Pacific demand is growing in tandem with disposable incomes and meat consumption. Asia-
Pacific leads the food processing industry in terms of market share. Market growth in
countries in Eastern Europe and Asia-Pacific continues as developing countries enjoy a more
favorable economic climate, with larger disposable incomes and improved living standards.
Demand for food that is light on preparation time continues to grow in developed countries.
Germany, The US, France and Austria are among the major exporters of food processing
machinery while the US, the UK ,Germany and France lead in importing.

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 China‘s processed food industry is expected to continue showing close to 35% yearly
growth from 2013 through 2016, mainly due to higher standards of living and improved
economic conditions. China‘s processed food market was left relatively unscathed by the
economic downturn. Growth will continue to be led by meat processing, with a forecast
yearly growth of more than 15% for the next few years. Other leading food market segments
in China are dairy products and ready meals. Growth will likely continue as China‘s 25% rate
of processed food production catches up with the average 80% rate in developed nations such
as the US.

The main driving force behind the global food industry is technological innovation,
Which concentrates on satisfying consumer demand for more tastes and easy-to prepare
foods. Companies are focusing on innovation to boost profits, with 60% of large companies
and over 40% of medium sized enterprises investing in process and product innovation. Over
99% of the EU food and beverage industry is comprised of small-and-medium-sized
enterprises. Danish, French and Greek food processing companies dedicate a sizeable part of
their profit to research and development, while other countries such as Austria, Hungary and
the Czech Republic lag further behind.

The main aims of research and development within the food processing industry are
better quality food, enhanced taste, cheaper prices and greater convenience. Other industries
recruited in the process include nanotechnology, biotechnology and other advanced
information technology fields. Companies cut production costs by: reducing waste;
employing effective manufacturing techniques used in other industries. Optimizing
automation to cut back on labour costs; and finding ways to cut down on input materials such
as energy.

MAJOR MARKETS FOR INDIAN FOOD PRODUCTS

During FY11-16,India’s exports of processed food and related products (includes animal
products) grew at a CAGR OF 11.74 percent ,reaching US$ 16.2 billion .Main export
destinations for food products have been Middle East and Southwest Asia .In FY 17 India
exports stood at US$ 1.3 Billion.

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GDP CONTRIBUTION OF FOOD INDUSTRY

The Indian food processing industry accounts for 32 per cent of the country’s total
food market, one of the largest industries in India and is ranked fifth in terms of production,
consumption, export and expected growth .It contributes around 14 per cent of manufacturing
Gross Domestic Product (GDP), 13 per cent of India’s exports and 6 per cent of total
industrial investment. Indian food service industry is expected to reach US$ 78 billion and is
growing at a Compound Annual Growth Rate (CAGR) of 20 percent. India’s organic food
market is expected to increase by three times by 2020.

MAJOR PLAYERS OF INDIAN FOOD INDUSTRY

 Kissan
 LT Foods Ltd
 REI Agro Limited
 Modern Dairies
 Britannia
 Nestle
 Heritage Group
 Kohinoor Foods Limited
 Hatsun Agro Product Ltd
 Parle Agro
 MTR Foods
 McCain Foods
 Ruchi Soya Industries
 Amul
 KRBL Limited

8
3.1. COMPANY PROFILE

NAME NILA BAKERS AND CONFECTIONERIES

OFFICE NILA BAKERS AND CONFECTIONERIES (INDIA PVT

LTD)

Door no : 11/375 FG, SIDCO INDUSTRIAL PARK

KALLIPADAM (PO) SHORNUR ,

PALAKKAD

KERALA

PIN:679122

ESTABLISHMENT 23rd July 2010

MANAGING DIRECTOR Mr. P. P. Musthafa

MEANS OF FUND Own fund , Term Loans

SECTOR Private

ACCORDING YEAR April to March

PRODUCTS Breads, Rusk’s, Cakes, Cookies, Savories, Bins, Halwas,

Chips ete.

TOTAL STAFF MALE : 96 FEMALE :44 =140

WORKING HOUR 8 AM TO 5 PM MORNING SHIFT

3 AM TO 1 PM NIGHT SHIFT

WEB SITE www.nilagroup.com

9
HISTORY OF THE COMPANY

Nila a name synonymous the catering service in Kerala and its neighboring states
actually started of as bakers way back in 1993. It later on developed into a retail chain (Nila
Bakers) which is popular in central Kerala today. Nila bakers and confectioneries a pvt ltd
company was inaugurated on April 14th 2011 by padmashree yusaf ali. This company was
formed to cater to the wholesale market in south India.

Nila started its food business as nila bake house at ottapalam in 1993, and started its
production units in ottapalam pattambi and perinthalmanna within two years. Now nila bake
house is having more than 60 outlets around these production units.inoder to feed the entire
market of Kerala other than Nila’s own outlet, nila started merchandised bakery factory
named nila bakers and confectioneries (India pvt ltd) in shornur, angamaly and ottapalam.
With the support of 42 distributer’s Nila’s bakery products like Bread, Rusk’s, cakes, cookies
and savories etc are now available all over Kerala.

OBJECTIVES OF THE COMPANY

Aims are what they want to achieve in the long run, and objectives are used to high
light how those aims are going to be achieved. Objectives can be in a form of targets and
challenges for the business to achieve the aims.

 Maximize profit
 To maximize sales
 To grow
 To operate in a wide range of markets
 Have a good reputation
 To provide freedom for workers to express themselves and suggest ideas to help the
business
 Achieve best possible financial return on capital

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MANAGEMENT TEAM

Nila bakers and confectioneries is a private ltd company. Our managing director Mr.
P.P.Musthafa a man of vast experience in this field, a tireless, ambitious, business man with a
vision for the future and a strong board of directors to support him makes up the management
of this company. A group of well trained, dedicated managers and staff are the stronghold of
Nila bakers and confectioners India pvt.ltd.

We have a marketing network of stockiest and distributors from one end of Kerala to the
other and it is our goal o make Nila bakers and confectioneries India pvt ltd he most
acceptable brand in Kerala by 2015.

PRODUCT PROFILE

BREAD VARITIES

 Bread
 Daily fresh
 Fruity bread
 Bun
 Coconut bun
 Chappathi
 Poori
 Dosa mavu
 Dilqush

RUSK VARITIES

 Fibre rich
 Milk rusk
 Ghee rusk
 Small fr
 Elaichi rusk

CAKE PIECIES VARITIES

 Orange

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  Vanila
 Choco
 Pineapple
 Strawberry

CUP CAKE VARITIES

 Cup cake -9 no's

PLUM CAKE BOX

 Plum cake
 Rich plum

JAR VARITIES

 Peanut jar
 Sesame jar
 peanut burfy jar
 seva 3 in 1 jar

COOKIES VARITIES

 Crumbs Chocó
 Ellu
 Pista ellu

HALWA VARITIES

 Orange
 Coconut
 Pineapple

MIXTURE VARITIES

 Lal mixture
 Tika mi

CANDY VARITIES

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 Peanut bar
 Peanut ball
 Peanut burfi bar
 Sesame bar
 Sesame ball

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 3.2. ORGANISZATION CHART

INDUSTRAIL DEPARTMENT

BOARD OF DIRECTORS

MANAGING DIRECTOR

FINANCE MARAKETING PRODUCTION HR PURCHASE STORE

MANAGER MANAGER MANAGER MANAGER MANAGER

STAFF STAFF SUPERVISOR STAFF STAFF

AGENTS WORKERS

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4. FUNCTIONAL DEPARTMENT

 Human resource department

 Finance department
 Marketing department
 Production department

4.1. HUMAN RESOURCE DEPARTMENT

The philosophy of HRM does not limit itself to direct employees of an organization. It
is concerned with all types of people working in an organization directly or indirectly.
Therefore human resources need to be managed in such a way that is consistent with broad
organizational requirements such as quality or efficiency. Personnel policies and
organizational structures have to be developed to suit with the organizational strategy. Even
though there are certain basic differences between HRM and personnel management, it is
used synonymously, HRM is the latest term used to denote personnel management.

The organization maintaining a separate HR department leaded by qualified personal

manager. This department is mainly deals with salary, benefits, and organizational problem
etc. of employees. The company always maintains good employer-employee relationship.

The employees are satisfied with the salary and other benefits provided to them and
the employees are satisfied with the organization culture climate and the attitude of the
management towards them and facilities provided to them. So there were no strike, labour
absenteeism etc.

The company provide excellent training program for the employee to improve the
skill and productivity. The employees are getting the statutory benefits like bonus, ESI
schemes, employee provident fund, and festival holiday allowance from the company.

OBJECTIVES

 Provision for retirement benefits

 Provision for better working conditions and facilities
 Material and mental satisfaction of employees
 Maintain good relationship with the trade union Provision of orientation of new
employee
 Provision for maximum training facilities

15
  Molding of human resources to achieve maximum production
 Creation of good human relationship
 Optimum individual development

METHOD OF RECRUITMENT

The company is using newspaper and internet by the recruitment method, mainly the
company is choosing newspaper for the ads

SELECTION OF CANDIDATES

 Personal interviews

RECEIPT AND SCRUTINY OF APPLICATION

This is the first step used in LOHASHILPI for selecting candidates. The vacancies will be
notified in newspapers and notice boards etc. After receiving the application from candidate,
the personal department makes detailed scrutiny of their application and select qualified
applications.

PRELIMINARY INTERVIEW

It is the basic interview conducted by the company. It done through telephonic interview. It
help the organization to find out, how much the candidates are fit for the job and the
educational qualification, age, sex etc. of the candidate.

INTERVIEW

Interview is face to face interaction between employer and applicants. It is an oral

observational appraisal method of evaluating the applicant.

CHECKING REFERENCE

The candidates are required to mention references.so the employer can enquire about
candidates from these references, to know their background, skills, work experience and
character.

APPROVAL OF THE SUPERVISOR

The name and details of the selected candidate will send to the supervisor for approval.

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FINAL SELECTION

After completing all the above formalities, the appointment order is given to the successful
candidates.

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 skill for a definite purpose.

LOHASHILPI gives different types of training to new employees. The following are the
important types of training.

 Orientation Training
 Job training
 Safety Training

ORIENTATION TRAINING

This type of training is provided to new employees. A new employee is to be introduced in

the organization. The information about the location of various departmental offices, cafeteria
and other facilities are to be given. He is also to be introduced to superior and subordinates.

He should be given a full description of the job as he is expected to do. He is also informed
about the policies, procedures, rules and regulation. All those are achieved through an
orientation program.

JOB TRAINING

LOHASHILPI provided job training, to increase the knowledge and skills of employees for
improving the performance on the job. The workers are able to handle machines, equipment,
and materials safely and correctly through this type of training. Such type of training helps to
reduce accidents, waste and inefficiency.

SAFETY TRAINING

Company gives safety training to minimize accidents and damages.

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COMPENSATION

An employee should be compensated equitably for the service rendered to the organisation.
The compensation is calculated by considering the following facts.

 Nature of the job

 The relative value of the job
 The realistic worth or ability of an employee in performing job

METHOD OF COMPENSATION

Worker is paid on the basis of time spent on the job. This method does not give weightage to
the quality of goods produced by the worker.

NILA always maintain good employer employee relationship. Good labour relation
ensures the smooth flow of work without any hindrance. If the employees are satisfied with
the benefits provided by the company, there is no chance of labour strike, labour absenteeism
and labour resignation.In order to make better labour relation NILA providing the following
benefits.

MONITORY BENEFITS

Monitory benefits are those which can be measured in terms of money. NILA providing the
following monetary benefits to the employees.

BASIC PAY

LOHASHILPI gives the basic salary to its staff members depends upon the service and
efficiency of employees and minimum wages Act.

FESTIVAL ALLOWANCE

These are the additional payments given to the workers during festival occasions. So that
workers can meet additional expenditure arising in these season.

BONUS

Bonus is the special payment made to the workers in addition to their normal salary.
These special payments are given to workers on year ending months or any other special
occasions. The amount of bonus depend up on the amount of company’s profit.

PROVIDENT FUND

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 Company contributes to PF the same amount as provided by the employees. The
government rate is (basic salary + DA+ night allowance)*12%.

SALARY ADVANCES

Company allows advance salary to employees without any interest.

NON-MONETORY BENEFITS

These benefits include all measures adopted to build labour relation other than
monitory measures, it include the following.

RENT FREE ACCOMODATION

Company provides rent free accommodation to employees, if they do not have own
house near the factory.

SUBSIDIZED FOOD

Company provides food to the staff with a subsidiary of 50% rate.

WEEKLY OFF

Company offers one day leave for every six days work.

ANNUAL LEAVE

Company allows 15 days leave to the staff with full pay within a year.

SAFETY MEASURES OF COMPANY

To ensure the safety of Workers Company providing safety goggles, glows, mask,
shoes etc. Moreover company providing various facilities such as, proper lighting,
ventilation, cool water and seating to workers.

One of the major problem faced by an industrial worker is accidents. NILA undertaking the
following measures to prevent the accidents.

 Proper training and education.

 Control of hazardous conditions.
 Control of unsafe acts.
 Timely repairing of machines and equipment’s.

COOPERATIVE SOCIAL RESPONSIBILITY

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The concept of social security is related to the high ideals of human dignity and social justice.
It is primarily an instrument of social and economic justice. To ensure the social security of
workers NILA contributing the,

Employees Provident Fund

Employees Safe / State Insurance

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4.2. MARKETING DEPARTMENT

Marketing is the management process responsible for the identifying, anticipating and
satisfying consumers’ requirements profitably. Marketing consists of all the activities, which
create, promote and distribute products and services in accordance with present and potential
consumer demand and the firm’s ability to produce. In short, marketing is the process of
providing the right product of the right quality in the right quantity in the right place at right
time.

The organization maintaining separate marketing department. The Company treats the
advertising as the main mode of marketing to improve the sales of their products. Company
uses different brand names for different NILA products one of the main marketing techniques
of the company is the different Schemes for their Retailer, customers and dealers.

The interaction with the customers and dealers and the contacts is the major asset of
the company. By this the company provides an opportunity to interact with the company.
This helps to find problems, sort out differences, and to formulate plans for future
improvement in the market.

Company conducting continuous market research, it will help them planning and
executing marketing strategies for the future course of action. Market research helps in
analyzing the buyer’s habits, popularity of a product, and effectiveness of advertising media.
It also helps to collect information about marketing problems and opportunities..

 Quality of the product is the main marketing technique that the company used

 ADVERTISING

The company treats the advertising as the main mode of marketing to improve the sales of
their products. Advertising covers all activities connected with giving publicity regarding
goods and services offered. The main Medias for advertising are: Indoor Media & Outdoor
Media. Indoor Media includes TV Channels, Newspapers, Magazines, Catalogues, Danglers,
Calendars, & Stickers. Advertisement of the products are given in all the major TV channels
in Malayalam Outdoor Media includes Name boards, A boards and Hoardings.

 ORDER TAKING AND COLLECTION

The Company executives are directly taking the orders from the retailers
 DELIVERY SYSTEM

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 The Company has very good and large system for the supply of the products. The
Company had provided the door delivery system.

CHANNELS OF DISTRIBUTION

Channel of distribution is the set of marketing intermediaries through which the goods
flow from the producer to consumer. The company had provided the door delivery system to
the wholesalers for the distribution of products through their owned vehicles and through the
different transporters.

MARKET RESEARCH

Market research helps in analysing the buyer’s habits, popularity of a product, and
effectiveness of advertising media. It also helps to collect information about marketing
problems and opportunities. The continuous marketing researches have been conducted by
the company in which helps them in planning and executing marketing strategies for the
future course of action.

STRUCTURE OF MARKETING DEPARTMENT

Board of Directors

General Manager

Marketing Manager

Sales Department

Sales Manager

Executives

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4.3. FINANCE DEPARTMENT

It is the most important department of an organization; finance requires proper

planning and control to achieve the objectives of the business. Finance is the lubricant, keeps
men and machines a work, encourages management to make progress and creates values.
According to Joseph and Massie, financial management is the operational activity of a
business that is responsible for obtaining and effectively utilizing the funds necessary for a
company to prepare annual accounts statement to ascertain its business results and financial
positions as at the end of the period.

NILA maintains a separate finance department under the super vision of finance
manager who is assisted by the assistant manager and his subordinates. The section handles
all the financial aspect of the firm. All transactions are handled through computerized
transactions. All the transactions are done by tally. The organization keeps a systematic
record of all transaction.

Finance department involves preparing all the statements like, trading accounts,
profits and loss accounts, balance sheet, bills, notes, letters, other tender call letters, suppliers
list, creditor’s information, shareholders documents, dividend policy.

FUNCTIONS OF FINANCE DEPARTMENT

 Budget marketing and targets to be achieved

 Finalization of accounts
 Preparation of wage accounts
 Disbursement of wage and salary
 Maintenance of investment record, tax reduction and deposits with revenue authorities
 Supply of all kinds accounting and financial information to the management
 Maintain cost records

DAILY REPORT

1. Cash book : Firms day to day cash transaction records

2. Bank book : Records of firms transactions with bank
3. Day book : day to day transaction records
4. Transaction summary
5. Credit note
6. Debit note
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7. Receipt and payment voucher
8. Journal register etc.
9. PERIODICAL REPORT
10. Trail balance
11. Bank reconciliation statement
12. Bank interest computation
13. ANNUAL REPORT
14. Trading and profit and loss account
15. Balance sheet
16. Cash flow statement

24
4.4. PRODUCTION DEPARTMENT

PRODUCTION

Nila bake house is a part of Nila group of companies based at Ottapalam, Palakkad
district of Kerala. Nila bake house had a significant presence in production. Production
means application of processes (Technology) to the raw material to add the use and economic
values to arrive at desired product by the best method, without sacrificing the desired quality.
Machineries are used for filtering, grinding and cutting to maintain proper quality and
product presentation. Significant parts of the production process are also carried out by
manual means.

PROCESS

Materials

The selection of materials for the product, Production manager must have sound
Knowledge of materials and their properties, so that he can select appropriate materials for
his product. Research on materials is necessary to find alternatives to satisfy the changing
needs of the design in the product and availability of material resumes.

Raw materials required for the production process are procured from outside vendors
by the company central general stores and required materials for the production means are
issued on purchase intend to the production units. The required raw materials are cleaned,
filtered and passed to different production methods for the different products

Methods

Finding the best method for the process, to search for the methods to suit the available
resources, identifying the sequence of process are some of the activities of Production
Management.

 Filtering
 Grinding
 Mixing
 Cutting
 Packing

25
Machines and Equipment

Selection of suitable machinery for the process desired, designing the maintenance
policy and design of layout of machines are taken care of by the Production Management
department.

Estimating

To fix up the Production targets and delivery dates and to keep the production costs at
minimum, production management department does a thorough estimation of Production
times and production costs. In competitive situation this will help the management to decide
what should be done in arresting the costs at desired level.

Loading and Scheduling

The Production Management department has to draw the time table for various
production activities, specifying when to start and when to finish the process required. It also
has to draw the timings of materials movement and plan the activities of manpower. The
scheduling is to be done keeping in mind the loads on hand and capacities of facilities
available.

Routing

This is the most important function of Production Management department. The

Routing consists of fixing the flow lines for various raw materials, components etc., from the
stores to the packing of finished product, so that all concerned knows what exactly is
happening on the shop floor.

Dispatching

The Production Management department has to prepare various documents such as

Job Cards, Route sheets, Move Cards, Inspection Cards for each and every component of the
product. These are prepared in a set of five copies. These documents are to be released from
Production Management department to give green signal for starting the production. The
activities of the shop floor will follow the instructions given in these documents. Activity of
releasing the document is known as dispatching.

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Expediting or Follow up

Once the documents are dispatched, the management wants to know whether the
activities are being carried out as per the plans or not. Expediting engineers go round the
production floor along with the plans, compare the actual with the plan and feed back the
progress of the work to the management. This will help the management to evaluate the
plans.

Inspection

Here inspection is generally concerned with the inspection activities during

production, but a separate quality control department does the quality inspection, which is not
under the control of Production Management. This is true because, if the quality inspection is
given to production Management, then there is a chance of qualifying the defective products
also. For example Teaching and examining of students is given to the same person, then there
is a possibility of passing Production and Operations Management 7 all the students in the
first grade. To avoid this situation an external person does correction of answer scripts, so
that the quality of answers are correctly judged.

Evaluation

The Production department must evaluate itself and its contribution in fulfilling the
corporate objectives and the departmental objectives. This is necessary for setting up the
standards for future. Whatever may be the size of the firm; Production management
department alone must do Routing, Scheduling, Loading, Dispatching and expediting. This is
because this department knows very well regarding materials, Methods, and available
resources etc. If the firms are small, all the above-mentioned functions are to be carried out
by Production Management Department. In medium sized firms in addition to Routing,
Scheduling and Loading, Dispatching and expediting, some more functions like Methods,
Machines may be under the control of Production Management Department. In large firms,
there will be Separate departments for Methods, Machines, Materials and others but routing,
loading and scheduling are the sole functions of Production Management.

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SWOT ANALYSIS

STRENGTH

 Company is having a group of skilled workers

 Strong goodwill
 Availability of infrastructure and transport facility
 Good employee-employer relationship
 Sufficient availability of raw materials
 The company has good quality products
 Good contacts
 High storage capacity
 Good atmosphere of firm

WEAKNESS

 Delivery system
 Availability of products
 High competition

OPPERTUNITIES

 High demand for the products

 Strong rural market
 Ability to supply varieties of products for varying use at affordable price
 Fast growing filed

THREATS

 importing machines
 high transportation cost

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CONCLUSION

During the project period, I have got valuable experience from Nila group of
companies.. The company occupies in top position in Kerala. The main reason is that of its
quality, the most of the customers opinion about Nila products that having good quality of
products at afforadable price and the availability of products in overall Kerala. So the firm
may take necessary steps to improve the delivery system.

Nila is a leading food production company in Kerala. All the departments of Nila is working
in a good manner. Through all the producers are being mechanized from year to year the
important implements never disappears. Majorly the experienced and skilled workers are
there. They perform their duty in a right manner and the management composite them with
right remuneration the firm maintain good employer relationship.

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