CHAPTER-1 INTRODUCTION 1.

1 INDUSTRY PROFILE

BIRTH OF RUBBERIZED COIR The birth of rubberized coir industry is quite amusing and interesting prior to the year 1960,people hardly had any idea of this novel and high utility product. In those days the world famous car manufacturers Volkswagen of germany were using horse hair as cushion filling material for their car seats.

As the production increased they wanted large amount of raw material. this lead to finding of alternative product. Sisal, jute and coir fiber was found as best. This was the beginning of the industry.

In the global market the important use of rubberized coir has been in the auto mobile industry. The growth for coir manufacturing industry was very slow.

At first people disapproved the cushioning material because they think that it was a dirty, filthy low cost and rough product meant for low income segment of the customer market. When starting using poly urethane foam (P.U foam) then it is feel very soft and as considered as luxury product then the product was accepted by every one. In 70s the growth of the industry was very fast.

The word mattress is originated from the French word MATERAS in AD 1300. During 1965 the total no of mattress manufacturing units in India was8. Where as now there are more than 125 registered companies.

Coir mattress as branded as health products. The commercial production of rubberized mattress production started in 1985. Popularly of the product increased during that time.
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Rubberized coir mattress in agro based industry and it comes under medium scale industry. Bureau of Indian standard, coir board and Rubber board are the team involved in the promotion of rubberized mattress. The raw material used for mattress making is coir (it is natural product) so it is 99% eco-friendly product.

HISTORY OF BEDS
A bed is a piece of furniture upon which a person may recline or sleep, in many cultures and for many centuries the bed was considered the most important piece of furniture in the house and a type of status symbol. Beds were used in ancient Egypt as more than a place for sleeping, beds was used as a place to eat meals and entertain socially.

According to A Brief History of Beds, The earliest beds were shallow chests in which the bedding was placed. The first attempt at a soft basis consisted of ropes stretched across a wooden framework.

Beds through history

A typical bed of 1600 in its simplest form was a timber frame with rope or leather supports. The mattress was a bag of soft filling which was most commonly straw and sometimes wool that was covered in plain, cheap fabric. The more explosive ones of this period had much the same bed frame- perhaps a little sturdier with a lower bag of wool and a top bag of feathers substituting the uncomfortable plain straw mattress. This was also covered in plain fabric. During the renaissance the bed structure was much the same, however the plain fabric used to cover the mattress progressed to being covered in a much better quality slip cover. In the mid 18th century, changes were made. The cover become made of quality linen or cotton, the mattress cane box was shaped or bordered and the filling available were natural and plenty, including coconut fiber, cotton, wool and horse hair. The mattress also become tufted or buttoned to hold the fillings and cover together and the edge were stitched. More expensive

Bed were much the same but with two or more layers of straw, horsehair and feathers were laid onto of each other for extra comfort. These are the type of mattress that Eric made reconstructed. Iron and steel replaced the past timber frames in the late 19th century, and better filling and fabrics were used on the mattress. Reproduction of these was also manufactured by Eric. In the 1900s the beds were either as above or divan, which were made of individual springs tied into a timber frame and covered. The mattress remained much the same. By this time, both Eric and Frank were constructing these types of beds and mattress.

The most expensive beds of 1929 were latex rubber mattress produced by the very successful dunlopillow. Pocket spring mattress were also introduced. These were individual springs sewn into linked fabric bags. By 1950, Frank was in control of his own company and was producing innerspring divan bases that were wire units fixed onto timber frames. The mattress were also innerspring units that were upholstered and tape-edged with a machine. Before this time, all the work was done by hand except the sewing of the cases. Spring and foam become major components in the 1960s and Frank replaced the previous natural fibres with these. The 1970s saw the invention of the waterbed and the take over of foam: the majority of beds were made with this material. Spring, however, still remained popular yet expensive .in this period , both Geoff and frank were working on such beds. Mechanism increased greatly in the 1980s and mattress and bases were constructed with the aid of computer production lines.

1.2 THE COMPANY PROFILE

INTRODUCTION The company is focus for the study is the Agreenco Fiber foam (p) Ltd. It is a major player in the rubberized coir industry. It is necessary to have an in- depth knowledge about the company its origin. Growth, market organizational structure, competition and product profile before entering in to core part of the study. During 1960s along with other major players Fiber foam (p) Ltd came into existence in 1965. The Kerala agro co-operative Ltd, was established in 2002. For entering in to the mattress industry Agreenco took over fiber foam (p) Ltd.

AGREENCO The Kerala state agro co- operative Ltd, a corporate enterprise was incorporated in April 2002. As a state level federal co- operative with an authorized share capital 250 core. The primary fours of agreenco to enhance the social and economic station of the farmers engaged in rubber, coconut and horticulture plantation activities. Agreenco is committed to motivating individuals and groups professionally involves with agriculture and agro process sing activities to adopt efficient needs in opportunities.

THE MAJOR PRODUCTS UNDER AGREENCO

Manufacturing projects 1. Pineapple processing unit 2. Agreenco fiber foam at kannur 3. Agreenkare latex 4. I.S.R. (Indian STD national rubber-20) factory. Non manufacturing projects 1. Agreenco videsh. 2. Advantage SSI. 3. Agreenco laiva.
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ORIGIN
The fiberfoam (p)Ltd was established in 1965 in technical collaboration with M/S DOA of Austria for manufacturing Rubberized coir mattress, pillows and cushions.The promoter of fiberfoam (p)ltd was leela groups of hotels. Initially the company prodeuced the mattress under the brand name of fiber foam (p) Ltd has taken over by Agreenco in 2003 and then the company renamed to Agreenco fiber foam (P) the company is located in kannur.

GROWTH
AFF was established in1965, at the time , they are produced the sleeping accessories such as mattresses pillions and cussions. DOA australia supplied manufacturing techinque to the company. In 1997 the company launched temptation as an umbrella brand. The company gradually developed mattresses suitable for luxuary hotels and also produces the honey moon brand, which is cayered mattresses using natural coir and foam. Then the company launched dollyon at 2003 agreenco and fiber foam are jointly formed a new company is agreenco fiber foam (p) Ltd. Agreenco holding 40% of the share capital in 2003 they are launched luxury pillows aiming the upper class.

MARKET
In Indian market there are 15 different geographical segmentation made by the company. there are 400 direct and indirect dealers, 220 employees and their turn over is 120 million per year. The Kerala market there are 3 geographic segmentation. 1. Trivandrum 2. Ernakulum 3. Kozhikode

LOCATION
Location plays an important role in the success or failure of a factory. It is very important for the smooth functioning of the organization. The company manufacturing unit is located in kannur, the Malabar coasted area of Kerala the city of looms and coores. It is situated at valapattanam river, which was a hub of coir rope manufacturing during 1960s this is may be major reason for the selection of this location; that is raw material availability, kannur is known for production of natural rubber, which is one of the important raw material in the manufacturing rubberized coir mattresses. Valapattanam is known industrial area and so skilled, semi skilled and unskilled labour force are available. Kannur is the area where most of the mattresses, manufacturers are situated. The location advantage especially raw material availability may be a reason for the concentration of rubberized coir. Manufacturers in kannur Dt. During 1960s the raw material are abundant here. But now a days the factories are purchasing the coir rope the major ingredient of rubberized coir mattresses from pollachi of thamilnadu,Karnataka and kasargode of Kerala.

1.3 ORGANISATION CHART OF AGREENCO FIBER FOAM

CHAIRMAN

MANAGING DIRECTER

WORKS MANAGER

HR MANAGER

PURCHASE MANAGER

FINANCE MANAGER

MARKETING MANAGER

QUALITY CONTROLE ASSISTANT MANAGER

STORES

DEPUTY MANAGER

BRANCH MANAGER

PRODUCTION SUPERVISOR

QUALITY CONTROLE SUPERVISOR

SALES OFFICER

MAINTANANCE SUPERVISOR

QUALITY CONTROLE INSPECTOR

QUALITY CONTROLE LAB

LAB TECHNISIAN

CHAPTER-2 DEPARTMENTS 2.1 PRODUCTION DEPARTMENT

Production of finished goods passes through various stages is production planning. There is a separate department for production planning.

PRODUCTION PLANNING

AFF (P) Ltd. Has a separate production department in order to ensure that there is no over production or under production. Production planning of each month is done on 25th of the previous months in accordance with the market demand or order requirements. Deputy manager planning based on the following inputs, prepares the monthly production plan.

-order requirement for the month

-Stock of finished goods/ semi finished goods available in the godown.

-based on the monthly production plan daily production programmers is prepared and sent to the production department.

INPUTS

As well as know, there are 6 MS-men ,material ,money ,machinery , management and methods involved in production as inputs. Among which a major part of sales turnover goes to materials.

Raw material used in the production involve rope, latex, chemicals , pu foam or rubber foam and cloth. Production planning of each month is done on 10th of the previous months in accordance with the market demand or order requirements. Deputy manager planning based on the following inputs, prepares the monthly production plan.

FLOW CHART OF PRODUCTION DEPARTMANT

prepration of compound latex

rope drying

untwisting

sheet making

sheet cutting

pre pressing

hydraulic pressing

vulcanization

size walling

pasting and furnishing

packing

dispatching and making

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PRODUCTION PROCESS

PROCESS

A) Preparation of compound latex

There are three ball for this operation. First ball mill contain chin clay,other chemicals and latex. The chemical are used to the property of latex. The chemicals are used in this process are sulfur , zinc oxide , tdq , nno etc.

B) rope drying

Coir is the main raw material for mattresses production. Coir is taken from coconut , coir is in the foam ope if rope. The rope include some moisture the rope is put in to heating chambour.

C) untwisting rope

After the drying process the rope is put in to untwisting machine. From this machine the machine the rope are untwisted in to form of hacked fiber. These fiber directly to the sizer machine.

D) sheet making
Through conveyer belt fiber are sprayed over the seizer machine. Size of the sheet is adjusted in to the size machine. In this machine latex compound is sprayed at booth sides of the bare.

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E) sheet cutting

The long sheet that comes from heating is cut according the size set in the machine. These sheets are moved lift near the weighting machine . here the mattress checked , every mattress should have some standard weight. The weight change according to the different type of mattress.

F)Pre pressing

Sheets are piled up and by using drum press machine. The sheets are compressed in a mould to attain the designed shape and mould is heated or 30-60 minutes in hot air about 100 digreecelcious. Care should be taken to avoid over curling. Compression modules of the final product depend on the density , which is controlled by quality filled in the mould. After pre pressing both side of the sheets are sprayed with compound latex from spray booth. Spraying at this stage is done manually.

G) Hydraulic pressing
After the process of pre pressing the halfly finished product are put in to a hydraulic pressing. Different size of spares are used for this process. Through the process the thickness of the mattresses is made.

H) Vulcanization
Vulcanizing is the final treatment made in the bare. It is the process in which chemical react with rubber in rubberized coir. The process help the mattresses to get good resistant and compression modules and retain the shape permanently.

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I)Size cutting
In this stage the coir is cut according to the actual size of the mattress. The corner cutting is done manually , but it is done by corner cutting machine.

J) side walling
Sulfex is the only company providing the reinforcement through side walling gives the mattress more strength and stiffness. For this purpose sack and latex is used. Latex is rubbing over the size of the bare and cut sack is pasted in all sides of the bare. After that bare is once more passed for vulcanization.

K) pasting and furnishing

There is the last step in mattress manufacturing. Pu foam is passed on the top of the base. Commonly used PU foam has 14 densities and 8 mm thickness. Then mattress is covered. The machine used for covering is a tape edging machine. Company have 5 tape edging machine.

I) packing
Polythene cover is used for packing the mattress. Its mainly done for securing product from the dust and brand name is also printed on that cover.

J)dispatching and marketing

After the whole production process, the product is ready for marketing and is sold through distributors and dealers.

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2.2 QUALITY CONTROL DEPARTMENT

Product quality and customer satisfaction are priorities of any company. The agreenco fiber foam (P) Ltd follows strictly quality control measures. It starts from the inspection of the raw material onwards. The AFF(P) Ltd has a BIS approved lab. The samples of material when received will be checked for its quality. In case of raw material , rope is checked for its moisture content and other factors , latex is checked mainly for dry rubber contents . the testing report quality control are passed to quality superintendent. If the test satisfies all specification, it will be passed other wise it is rejected. After the process of vulcanizations a sample is taken from each batch for checking the quality of bare in the case of bare , following tests are conducted , at lab, 1. Testing of compression 2. Density testing 3. Ageing test 4. Flexing test MATERIAL TESTING LAB

1. Raw material testing 2. Work in progress testing 3. Finished goods testing In each samples are taken from the population and tested . all the specification should be present as per ISI specifications.

A RAW MATERIAL TEST

Here latex , rope and chemicals are tested. Latex is tested to ensure the day rubber content (DRC). In field latex there should be minimum 25% DRC and in centrifugal latex there should minimum 60% DRC.
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In rope moisture content , long fiber content, quality of impurities , chloride content sulphate content etc are tested as per ISI specifications. Maximum permissible moisture content is 20% and impurities content is 15% . in a bundle of rope there should be maximum 25% medium fiber are maximum 30% short fiber. 1 bundle from 1 truck load is taken as sample from which 1 inner coil and 1 outer coil are reflected . in PU foam density and thickness are tested . In cloth , ends (length wise) and picks (breadth wise ) as warp and weft are tested. Thickness of polythene , hessian and cotton are also tested.

BASEBLOCK TESTING

1. Ageing test 2. Flexing test 3. Compression test 4. Chloride content test 5. Sulphate content test 1. Ageing test

Here indentation hardiness (IH) is tested. This test is done to check the durability of the base block, i.e, whether it is durable or not. Vulcanization of the bare is tested here. There is a lot of many changes of happening damage as complaint during vulcanization . due to overvulcanization bare block became sticky nature and cushioning effect will less. If the vulcanization is high ill will be negative deterioration rate will high. Under vulcanization will cause sagging. Vulcanization should be optimum to.

2. Flexing testing

This test is conducted with the help of a machine called flexing machine. The bare is inserted in the flexing machine for 250000 cycles . if the flexibility is less after 250000 cycles , the bonding of bare block will collapse.
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3. compression testing

This done to measure the thickness and cushioning effect. Two pieces of bare blocks are taken for this purpose and measure the thickness. Sulphate content, chloride content, PH value too of bare block is also tested.

4. finished goods testing

100% checking for done for finished goods , before moving to the market . covering stitching etc are tested. After completing all the testing and checking .JSI tag will contain grade , dimensions i.e., length , width , thickness.

GUARANTEE

The agreenco fiber foam (P) Ltd given one year guarantee to its products. If any damage occurs within the guarantee period , the company will repair the product. QUALITY POLICY

Agreenco fiber foam (P) Ltd is committed to manufacture and supply quality rubberized coir products in the Indian and international markets by focusing on,

- Customer statutory and regulatory requirements

-upgrading the skill of workers and employee by providing training.

-continuous up gradation of manufacturing facilities Agreenco fiber foam (P) Ltd constantly strive to improve quality as a continual process based on improvement inputs from internal and external sources.

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STRUCTURE OF QUALITY CONTROL DEPARTMENT

ASSISTANT MANAGER

QUALITY CONTROL SUPERVISOR

LAB TECHNICIAN

QUALITY INSPECTOR

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2.3 MAINTENANCE DEPARTMENT

Maintenance is an important function is every manufacturing concern. It is the duty maintenance department to ensure that all the machines and property maintenance and there are no interrupted in production. The department is headed by a maintenance superintendent. Under him there is a maintenance workshop and four technicians.

BREAKDOWN MAINTANANCE

From the name itself it is clear that breakdown maintenance occurs when there is a stop page of production due to machine break down. In AFF the workers are responsible for repairing their own machine or giving assistance to the technicians .if there is any breakdown the worker will try to correct it. it he cannot do work successfully he can inform the same to the maintenance department.

PREVENTIVE MAINTANANCE

Preventive maintenance is mainly required to avoid machinery breakdown. The organization believe in preventive maintenance, the production in the firm is conducted only in two workers in the third staff. They have to perform cleaning lubrication repairing work Major preventive maintenance work are to be conducted in Sunday and holidays. The

maintenance superintend will plan the maintenance schedule and manpower request etc

THE IMPORTANT MACHINE ARE USED IN AFF

1. Untwisting machine 2. Sheet foaming machine

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3. Hot pressing machine 4. Auto saves 5. Band saw machine 6. Tape edge machine quilting machine 7. Sewing machine 8. Stirrer machine

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2.4 MARKETING DEPARTMENT

The source of every organization lies in providing right product at right time in right quantity to the customers . marketing deals with all activities, which create, promote and distribute products in accordance with customers demand. Agreenco fiber foam product are marketed through their branches all over india . in addition to the branch sale , the company is marketing its products to institutions including hospitals , hostels etc.

PRODUCT AND TARGET MARKET

Areenco fiber foam (P) Ltd markets different models under the brand name temptation .mattresses are priced to all segment customers . the company is giving widest range of choice to customers for the selection. The company is offering more than 15 brands to the customers. Very recently the company has developed an exclusive range of contour hug mattresses suitable for luxuary hotels. In a short span of time the company has already got a long list of hotels including taj groups of hotels as their customers. The company is targeting the hospitality industry with high products such as new honey moon and contour hug mattress. In the lowest segment they are targeting with select supreme for hospital industry the company is targeting with the Rexene covered products.

MARKETING PRODUCTS

1. Mattresses 2. Pillows 3. Cushions 4. Bolsters 5. Dallyons

The company produces a different models of RCM under the brand name temptation such as mentioned before. Now the brand name is agreenco fiber foam temptation. The company
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follows cost plus pricing method and competition oriented pricing strategy. The company cant ignore the competitors because in the market there is stiff competition. The company is frame sales policies each year, it includes discount terms and conditions, credit sales, billing procedure etc.

PROMOTION

Advertisement is given in TV , news paper , magazines etc. famous actor innocent is the brand ambassador of AFF mattresses with as line innocent sleep. Poster ,broachers dangers etc are also used for advertising. A very attractive danger is provided for dealers AFF concentrate more on dealers promotion than customer promotion AFF(P) Ltd believes that customer can be influenced and diverted by dealers; dealers can change the purchase decision of the customer . special schemas are offered to dealers to achieve the target

PLACE

Whatever the company produces it should reach the customer . there should be a link between the company and the customer . thus distribution network is necessary to reach the product to customers.

The AFF (P) Ltd has 15 branches all over india , and it exports products to Greece and other European countries. Goods are sold through these branches . company has institutional selling also. Direct selling is also done by the company.

The 14 branches of AFF (P) Ltd apart from kerala

1. Tamilnadu 2. Karnataka 3. Andra pradesh 4. Maharashtra 5. Gujarath

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6. Goa

PEOPLE

People involve the person involve in the marketing of the products and people I the market. As mentioned earlier there is 35 marketing staff involved in the marketing of AFF products all over india. They include area sales manager , assistant branch manager , sales executive and office staff. They are under the control of deputy manager who is reported to GM sales and GM is reported to MD

SALES PROMOTION

Sales promotion simply means the tool and technique to promote sales. According to American marketing association sales promotion is those marketing activities other than personal selling , advertisement , and publicity that stimulate consumer purchasing and dealer effectiveness such as display shows , exhibitions , demonstrations and various non-recurrent selling efforts in the ordinary routine

SALES POLICY

Policies are building principles set by the company to govern actions , usually respective . it provides the basic guide to thinking and action taken by the executives within the organization under a given set of circumstances. A comprehensive sales policy and strict adherence to its provisions assures the success of any business . the backbone of successful sales policies is consumer satisfaction and goodwill based on reliability and fair trade practices , once a high reproduction , is established through fair trading , the interface fill face minimum sales resistance and will give considerate competition strength.

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PERSONAL SELLING

Direct marketing is the use of non personal contact to solicit a trial or purchase. Personal selling refers to oral and face to face communication and presentation with the customer for the purpose of marketing sales.

CHANNELS OF DISTRIBUTION

Distribution refers to bringing the product to the market and giving it to the final consumer . channels of distribution means to the set of marketing intermediaries through which the goods flow from the producer to the customer . in short it is the outlet to let out the goods to the final consumer.

MAIN COMPETITORS

Competitors of a company are very significant in determining the position of the market. In the case of fiber foam (P) Ltd . the company dominate the mattresses market in most of the northern kerala . however , the chief competitors of fiber foam (P) Ltd are based in Northern India. Some names of competitors are; 1. Kurl-on 2. Duroflex 3. Restolex 4. Coir-on 5. Sulfex 6. Kohinoor cozy mate 7. Rubco STRATEGIES TO FACE COMPETITION

Every company has to devise certain strategies to face competition . the efficiency of these strategies is the determining factors that decide how successful the company will be able to overcome competition from its competitors.
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Fiber foam adopts various strategies in order to overcome competition fro its competitors in Kerala and other manufacturing companies in India. As a primary slip , the company gives a reduction in price to its dealers located in various parts of the state and country. Fiber foam (P) Ltd gives 30% trade discounts to its dealers , usually dealers go for those products that are available that are available to them at a cover price and which are also of good quality.

ORDER PROCESSING

Order received from dealers , distributers , sales officers and other means are received by the deputy manager (marketing).afire the orders are accepted the details of acceptance are communicated to the dealers distributers suitable means.

ORDER PROCESSING CHART

DEALERS/DISTRIBUTERS

BRANCH

MARKETING DEPARTMENT

PLANNING DEPARTMENT

PRODUCTION DEPARTMENT

FURNISHING DEPARTMENT

DESPATCH

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STRUCTURE OF MARKETING DEPARTMENT

MANAGING DIRECTOR

MARKETING MANAGER

DEPUTY MANAGER

DEPUTY MARKETING MANAGER

COMMERCIAL OFFICER

ADMINISTRATION OFFICER

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2.5 HUMAN RESOURCE DEPARTMENT

In modern business human resources are the key factor in every organization . human resource management deals with procuring , developing , compensating and integrating labor force. In agreenco Fiber Foam , there is not a separate specialized department for managing human resource .but deputy manager co-ordinates this department.

RECRUITMENT POLICY

The recruitment take place in an organization due to vacancies created by various accused like requirement, promotion etc. the native of includes the internal and external recruitments.

-internal source of requitment

It consist of already existing employees. Whenever vacancy occurs in the organization in the company promotes somebody within the organization

-external source of recruitment

It is the process of people from the outside the organization .it is the way often in the fresh blood in it. Production labours are two types. That is skilled and unskilled workers. Operates are skilled workers. As per the existing procedure if any vacancy is of skilled workers , then the vacancy will be filled from the unskilled workers. This promotion will be on the basis of years of experience , expertise ,on the job, etc. be announced in newspaper, and invite application . something the employees recommended application also would be considered. Recruitment method followed

1. The vacancies for officials and crafts are advertised in news paper or company notice board or direct mail to prospective employees
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2. The application will be scrutinized and sent the interview letter to the candidate. 3. The panel or concerned department head conducts an interview of potential candidates and the qualified among them are then selected to fill the vacancies.

TRAINING AND DEVELOPMENT PROGRAME

Training and development program have given little importance in the orgns. Training is confined to initial job training and occasional safety training etc. Training methods adopted in the firm. 1.on the job training 2.off the job training

1. ON THE JOB TRAINING

- training imported for fresher

- training for existing employees

2. OFF THE JOB TRAINING

This type of training takes place either in the company class rooms or in the place , which are owned or associated by the company Lecturers and conference are the main job training methods . these are mainly for safety classes etc. sometimes the organization sends their executives for training programs conducted by outside agency.

WAGE AND SALARY ADMINISTRATION

In the case of production in the fiber foam wage and salaries play a very crucial role. It determines the standard of living of an employee of a very large extent.
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The service condition salary and wages of the staff and workers extending supervisory and managerial category are regulated by an agreement entered in to between the company and employees. Their union will represent the employees , at present six approved unions are working at fiber foam. Most of them are affiliated to national or state level trade unions and backed by political parties. This agreement specifies the wages and other benefits payable to the workers as well as the work load of the workers. This agreement will be revised every years .before the expiry of the each agreement the management will start to negotiation with approved trade unions. During the existence of the agreement no union can demand anything which will increase the financial obligation to the management and in the same way management cannot increase work load of the workers. The main objective of this agreement is to ensure co operation and peaceful atmosphere in the organization .

INCENTIVES

Company follows a grope incentives scheme on the basis of daily production. If the production exceeds, 3.4 MT per day each production employee will be paid rs 2.50 per each additional 100 kg .this will increase the productivity and encourage people to enhance the production.

PRODUCTION INCENTIVES

Production incentives are paid to all employees on the basis of production. Usually during the payment of production incentive , the union offer maximum and co operation to the company for maintaining industrial peace and productivity.

ATTENDENCE INCENTIVES

Attendance incentives paid on the basis of attendance

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FESTIVAL INCENTIVES

Festival incentives paid at the time of festival seasons

SPECIAL INCENTIVES

Special incentives paid on the basis of performance. In each month, select a best worker and paid him incentives

BONUS

The company has been by bonus to its employees for more than 25 years . the bonus payable in a certain percentage to the total eligible wage, and salary of the employees. All the employees are eligible to service. Bonus under the payment of bonus act 1964

RETIREMENT BENEFIT

Retirement in stage were the workers are reached the maximum age and his service to the company comes to an end. At fiber foam (P) Ltd the age of retirement is 68 years . the personal manager thanks the retire employees for their service .

EMPLOYEES STATE INSURANCE (ESI)

ESI given to the employer under ESI act , either the ensured worker as a member of his family is entitled to receive the medical benefit according to the ESI Act, the employers are required to contribute 1.75% of his basic allowance and employers are required to contribute 1.75% towards ESI

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INDUSTRIAL RELATION

Industrial relation are as old as industry itself, through with the passage of time , the problems concerned with the employee. Employer, relation have grown considered in member and complexity. At present the employer- employee relationship is very cordial.

DISCIPLINARY MECHANISAM IN FIBER FOAM

Whenever supervisor as management notice any undisciplinary action. First they will advise the concerned employee to rectify it. If the misbehavior Is repeacting, the management will inform the something to the concerned union in which the employee to a member and if the management is not satisfies with the performance , then the management will issue the notice to the employee. Then the employee will have to give reply to the notice If management is satisfied by with the reply then stop the proceeding if the management is not satisfied with the reply then will start the house enquiry and in this tosses the employee can be represent himself of through its union.

TRADE UNIONS

1. Fiber foam staff union 2. Fiber foam workers union 3. Fiber foam employees union 4. Balipattanam fiber foam employees union

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2.6 PURCHASE DEPARTMENT

Purchase department in the AFF(P) Ltd has two roles to play. Purchase department as well as sales department. The main purchase of setting a purchase department is to purchase raw material supplies, utilities ,spare parts etc at least cost with required quality and to evaluate supplies rate and developed them so as to select supplies on the basis of their ability to supply raw material. The company purchase 60% configure latex, unled rope, cloth, Pu foam, chemicals, LDPE bag etc.
PURCHASE PROCEDURE

Purchasing is a process which involves a series of activities.

a) Purchase requisition or indenting of material

Based on the stock position of raw material on a daily basis and depending upon the production plan, the requirement for purchased arrived at and the purchase intend is prepared. The intend is received by the concern head of the departments and sent the same to the purchase department. b) Purchase order

In the case of purchase superintendent obtains quotations from the approved suppliers and negotiations with item for getting best rates accordingly superintendent prepares the purchase order. Purchase order is placed only on suppliers from the approved list expect where it is a specific requirement of the customer ,purchase order contains.

1) Clear description of the goods to be procured. 2) Quality rate and value 3) Delivery schedule 4) Mode of dispatch and payment terms 5) Inspection clauses

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Purchase order is verified and reviewed for its completers and approved by the purchase superintend. Copies of purchase order are sent to the store and account department.

C) verification of purchased materials

The purchased materials which are inspected quality control department for quality and the quantity as per specification in the purchase order and the incoming inspection parameters the details of testing verification are recorded in the goods receipt note and the report. in the case of discrepancies the same is received with the supplier. D) mode of payment

Payment is made through cash, DD or cheque. Payment is made at the time of delivery of goods or with in the credit period allowed by the supplier.

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2.7 FINANCE DEPARTMENT

Finance is regarded as life blood of any business. Financial management is concerned with planning and controlling of financial resources of an organization. The AFF is raising funds from Indian overseas bank , where financial transaction is done when ever any finance is required fund are raised through cash, credit account ,bad debts etc. the company purchased share from pan publicity pvt Ltd .IOB and silver foampvt Ltd .IOB and silver foam an

investment. an account is incorporated maintained and controlled by head office. Account work is based on software package tally

TYPE OF CAPITAL 1. Fixed capital 2. Working capital

MAIN SOURCES OF FINANCE 1. Advance paid for booking by dealers 2. Bank loan 3. Capital 4. Deposited by agents 5. Shareholders fixed deposits

ACCOUNT PROCEDURE

The AFF follows double entry system of accounting. The accounting department and other department maintain various books of accounts. For accounting the day to day transaction cash receipts, vouchers and rough cash book are maintained manually. Finally the fare cash is prepared based on there is a computerized method. During the year personal ledger, administration ledger and agent ledger are prepared. The credit sales report is also prepared. The journal entries are also recorded in the journal register.

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ACCOUNTING POLICIES

Fixed assets are valued at the lost of acquisition less depreciation. Depreciation on fixed assets is calculated provided on written down value method. Investments are valued method. Investments are valued at cost. Valuation of investors of finished goods is at cost or market value whichever is lower. Stock in process, raw materials, shares and spare parts valued at cost. Incomes and expenditure are accounted under the accrual system of accounting

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CHAPTER-3

3.1 FINDINGS

In this field there are so many competitors so the demand of the product is gradually decreasing. Here there is no separate department for HRM. The function of HR department is out by the administration department The companys advertisement is very less.

Many facilities are given to the workers such as subscribed rate of food to them ie, Rs. 2.40 for meals.

y The company leaves a separate department for quality system and has a separate R & D
department. y The company is producing eco-friendly

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3.2 SUGGESTIONS

1. More attractive advertisement must be made to popularize the product. 2. Commission to dealers and sales man has to be increased 3. Co ordinate a separate HR department for handling labor force and their problems 4. Utilize maximum labor force by reducing idle labor force. 5. More preventive measures should be introduced to reduce accidents. 6. Improved drinking water facilities should be provided. 7. The canteen and the recreation room should be kept clean and well equipped. 8. Company must give casual leave and personal leave to employees when required.

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CONCLUSION

The Agreenco fiber foam (P) Ltd is trying to understand the human need for comfortable sleep. The company has been striving to provide better products to satisfy these names.

The AFF maintains a good relation with each employee. Every department is well organized, co ordinate and trying to achieve the primary goals of the organization.

The placement training done at AFF gave as deep knowledge about the performance of the company. The study helped us acquire more into knowledge about the day to day functioning of the company. I have done this training sincerely and the company was co operative with me to complete my training. I conclude my studies, in a satisfactory manner.

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BIBLIOGRAPHY

a) REPORTS AND JOURNALS

1. Brochure of agreenco 2. Report of agreenco 3. Economic review 2004

b) WEBSITES

1. www.agreenco.ind.com 2. www.fiberfoam.com

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APPENDIX

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