INTRODUCTION

The textile industry in India has made major developments after

independence. Today it plays a crucial role in the economy it uses

yarn produced by the spinning mills as its raw material. Cannanore

Spinning and Weaving Mill is an important spinning mill unit in

Kannur which provides high quality yarns.

The market demand for the product of the Cannanore Spinning and

Weaving Mill is high. In an environment of rapidly escalating

competitive challengers, every company has to invest across the value

chain to achieve world class competitive capability in each of the

business in its portfolio. These strategic interventions results in

progressive transformation of traditional organizations into

internationally competitive organization. Where the focus is superior

value for all stake holders each business within portfolio is

continuously engaged in upgrading competitive capability to

effectively address growth challenges in the fast globalizing Indian

market, and over time in the world markets. The vision of every

company is now apparently is the creation of unique business models

that foster international competitiveness of not only its business but

also the entire value chain of which it is a part. This has made

functioning of each organization much complex than the older days.

Systematic and organized approach is indispensable to meet this

challenge of complexity. All these leads to emergence of modern

organization concept which relies on identifying and grouping the

work to be performed, defining and deleting responsibility and

authority, and at last establishing relationships for the purpose of

enabling people to work most effective in these aspects.

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OBJECTIVES OF THE STUDY

The objectives of the study are explained as under. They are;

1. Understand the history and objectives of the firm.

2. Study, the organizational structure of the mill.

3. To understand all the functional areas of the mill

4. Evaluate accounting procedure and book of accountant attached

and maintained by the firm.

5. Apply the SWOT analysis, porter's 5 forces model and Mc

Kinsey’s 7s to understand the competitive position of the mill.

6. Otter suitable suggestions for the improvement of the

performance of the mill.

7. To study the functioning of various departments like production,

sales and marketing, purchase and stores, HR (personnel).

SIGNIFICANCE OF THE STUDY

The major significance of the study is to get practical

experiences about working of an organization. The academic

curriculum provides a basic knowledge about the theoretical aspects

in the management of business. The implications in the theory are

compared with the real situation in the light of this study and an

analysis can be made. The various function of the firm with its

advantages and disadvantages could be situated intensively. This

project helps to get a clear cut idea about the department and

implementation of different techniques inside the firm. It helps us to

understand about how to keep good communication between top

managers and subordinates this project also helped to understand the

production process in Cannanore Spinning and Weaving Mills.

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Source of data Data for the study and has been collected from primary and

secondary sources.

Primary data

Primary data was collected from Mr. Muneer K (HR Manger),

also from administrative staff and workers.

Secondary data

The secondary data were collected through the careful study of

the extracts of the accounts of the company and some of the basic

information about the company was collected by browsing the

company website www.niclid.coin, some other information related to

the project were also downloaded from the internet.

Scope of the study

The study describes the history, genesis, activities, and

achievements of Cannanore Spinning and Weaving Mills, Kannur. This

study covers information on the present organizational system of

Cannanore Spinning and Weaving Mills. This information can help in

better understanding the firm, its policies and strategies.

This study gives hints on how effectively an organization can

design its functional areas like marketing, finance, HR practices,

operations and supply chain management and how they can be

constructed to improve organizational effectiveness

Limitations of the study

The limitations of the study are described as under;

1. Time is the one of the limitation. So the intensive study of the

concern is impossible.

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2. No of businesses reveal every business secretes so only

available information are used for analysis.

3. The study period is for 1 day. Hence the data cannot be

compared to the longer life of company.

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Chapter 2

PROFILE OF THE INDUSTRY

INTRODUCTION OF TEXTILE MILL INDUSTRY

The Origin of the term, 'textile' can be traced back to the Latin

origin. The textile tradition of India is perhaps the ‘world’s oldest

textile tradition. The manufacturing plants of making textile fabrics

and textile products are termed as textile milk are considered to be

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one of the largest industries in the Indian subcontinent. The textile

mills not only meet the requirements of the domestic economy but

also offer employment opportunities to millions of workers in a variety

of occupations. Since the past four decades the textile mills of

workers in a variety of occupations. Since past four decades the

textile mills underwent a process of persistence growth and

development.

Textile mills form the basis of textile production. Textile mills

take either natural fiber or synthetic fiber and transform them into

yam. Thread or webbing. After that the textile mills deals in producing

fabric and textile products mostly produced by mean of knitting,

weaving or tufting. Workers in the textile mills then use complex and

automated looms to transport yarn into cloth. This process of textile

production has come down to us through centuries

The various products manufactured in the textile mills include

both yarns products and fabric products. The yarn products

manufactured by the textile mills are blended yarns. Cotton yarns,

specialty yarns, synthetic yarn. The fabric products of the textile mills

are include knitted fabrics, woven fabrics, gray and dyed fabrics.

Globalizing economics in third world countries like India

tempered with aggressive marketing scheme and technological hyper

competiveness caused obstacles for trade practices in textile

production. India is the largest exporters of cotton yarn with a share

of about 22% of the world trade after the industrial revolution the

demand for spinning mill increased. The home market with cheaper

foreign goods worth improved quality. The government has been

formed one company Textile Corporation Limited, New, Delhi to

manage the mill.

WORLD SCENARIO

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It contributes 20% of industrial production, 9% of excise

collection and 18% of employment in the industrial sector. Nearly

20% to the countries to the total earnings and 4% of the GDP. the

Indian textile industry and apparel industry occupies a significant

position in the global textile map as it is the second largest producer

of cotton yarn, largest producer of jute, 2nd largest producer of silk

and 5th largest producer of synthetic fiber. India is one of the

countries that have a presence across the entire value. Chain of textile

of apparel business starting from other production. Spinning weaving

to garment manufacturing

The textile and clothing trade in the global market is fast

changing with the scaling up of uses of textiles in diverse area. Asian

countries including India play a dominant role in the international

trade of global market. China was a major share in textile and

clothing trade in the international market. Both Bangladesh and Hong

Kong have a significant share. However, India is still on the back seat.

It is reported that Asian countries export most 0f textile and apparel

to Europe and North America and USA etc. Asian countries are

gaining in textile trade due to lower cost compared to African,

European and South American countries. As per the Global textile

and apparel industry: vision 2015, world textile and apparel trade

is expected to reach US$650 bn by 2015

From US$805 bn in 2010. At present a few countries like Bangladesh,

Thailand Cambodia, SriLanka, Pakistan contribute major share in

forex earning of their country from textile and clothing trade, through

their share in the world market is not very significant

Asian countries are facing challenges in the global market due

to volatility in price, rising input cost, energy crisis and lack of

marketing initiative / exposure etc. in addition, initiatives need to be

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made in the area of Research and Development, skill Development and

Capacity building of the industry as a whole. Industry has to be in a

demand driven mode.

It is also noticed that tariff rates in Asian

countries are extremely high, which became a barrier to scale up the

share in the international market. At present a few Asian countries

are enjoying a special status in the global market as per WTO

guidelines and able to retain share per date. But this may not last long

because of growing competition emerging from other countries.

Government of the concerned countries also facilitated the sector to

grow by farming policy and keeping provision of incentives

/concessions to encourage for international marketing. However,

India is not enjoying such status and over the years. India's

contribution from textile and clothing trade in country’s total forex

earning shows a decline trend in last decades. Government of India

has made a good Number of global shares.

Important statistics and data on international trade are given

as follows:-

Table-1: textile & clothing tariff rates in Asian countries

Countries Textile clothing

Bangladesh 25.0% 25%

Iran 12.0% 100%

Turkey 24.5% 52%

Malaysia 9.0% 0.2%

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Indonesia 9.2% 14.5%

Pakistan 35% 25%

Vietnam 9.7% 19.7%

Cambodia 5.5% 14.1%

China 9.5% 16.0%

India 29.6% 31.1%

Sri Lanka 7.9% 30.3%

Thailand 7.9% 30.3%

Textile exports of Asian countries (US $ Million)

countries 2010 2011 2012

Bangladesh 15525 15660 19939

China 107264 129820 153774

Hong Kong,

china

22826 24049 24505

India 12005 11229 14365

Indonesia 5915 6820 8045

Japan 484 531 595

Korea republic 1396 1610 1840

Malaysia 3126 3880 4567

Pakistan 3357 3930 4550

Philippines 1534 1764 1402

Singapore 1045 1069 1190

Sri Lanka 3265 3491 4211

Taipei, Chinese 904 979 994

Thailand 3724 4300 4561

Turkey 11556 127650 13948

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Vietnam 8540 10390 13154

Cambodia 2441 3041 4051

Colombia 592 650 650

Table-3 textile exports of Asian countries (US& million)

Countries

2010 2011 2012

Bangladesh 886 1263 1590China 59824 76871 94411Hong Kong 9976 11307 11283India 9111 12833 15016Indonesia 3208 4144 4791Japan 6109 7086 8035Korea, republic 9155 10968 12369Malaysia 1359 1671 2036Pakistan 6510 7848 9082Philippines 704 170 184Singapore 704 809 851Sri Lanka 139 172 198Taipei, Chinese 7891 9719 11016Nepal 243 257 289Vietnam 2009 3061 3772

INDIAN SCENARIO

India textile industry is one of the leading textile industries in the

world through was predorninantly unorganized industry even a few

years back, but the scenario started changing after the economic

liberalization of Indian economy in 1991 the opening up of economy

gave the much-needed thrust In the Indian textile Industry. Which has

now successfully become one of the largest in the world India textile

industry depends upon the textile manufacturing and export? It also

plays a major role in the economy of the country India earns about

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27% of its total foreign exchange through textile exports further. The

textile industry of India also contributes nearly 14% of the total

industrial of the country. It also contributes around 3% to the GDP of

the country. India textile industry is also the largest in terms of

employment generation. It not only generates jobs in its own industry,

but also opens up scopes for the other ancillary sector. India textile

industry currently generates employment to more than 35 million

people it is also estimated that industry will generates 12 million new

jobs by the year 2014.

Various categories: Indian textile industry can be divided into

several segments, some of which are listed as below:

Cotton textiles

Silk textiles

Woolen textiles

Readymade garments

Hand-crafted textiles

Jute and coir

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The Industry

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India textile industry is one of the leading in the world.

Currently it is estimated to be around US $ I.15 billion by the year

2014. The current domestic market of the textile in India is expected

to be increased to US $ 60 billion by 2014 from the current US $ 34.6

billion. The textile exports of the country was around US $ 19.14

billion in 2006-2007 which shows a stiff rise to reach US$ 22.13 in

2007-08. The share of the exports is also expected to increase from

4% to 7% with in 2014.

Strength

Major strengths of this industry are vast textile production

capacity, large pool of skilled and cheap work force, entrepreneurial

skills, efficiency multi-fiber raw material manufacturing capacity,

large domestic market. Enormous export potential very low import

content, flexible textile manufacturing system etc.

Weaknesses

Major weakness of this industry are increased global

competition in the post., 2005 trade regime under WTO import of

cheap textiles from other Asian neighbors, use Of outdated

manufacturing technology, poor supply chain management. Huge

unorganized and decentralized sector. High production cost with

respect to other Asian competitors etc,

Major players

Major players of this industry in India are;

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Danalakshmi spinning and weaving mills

Loknath spinning and weaving mills

Birla cotton spinning mills Ltd

Pasupathi spinning and weaving mills

Sree Ayyanar spinning mills

Current facts

India retained its position as world‘s second highest

cotton producers.

Acreage under cotton reduced about 1% during 2010-

2011

The productivity of cotton which was growing up over the

years has decreased in 2010-2011

Substantial increase in the minimum support prices

(msps).

Cotton exports couldn’t pick up owing to disparity in

domestic and international cotton prices.

Imports of cotton were limited to shortage in supply of

Extra Long staple cottons.

COMAPANY PROFILE

Name of the company : Cannanore spinning and weaving Mills

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Address : Cannanore spinning and weaving Mills

Kakkad, PB NO, 1601, Kannur, Kerala state

Website : www.ntcltd.co.in

E-mail ID : caspinnte@gmail.com

Phone : 0497-2760367, 2706266

Fax : 0497-2701987

Ownership : Central public sector Undertaking

Group : NTC

ORIGINE AND DEVELOPMENT

Cannanore Spinning and Weaving Mill were originally started

by private owner Shri. Keyath Damodar in 1948 with 20000 spindles

capacity. The mill earned profit and have no problem till 1970. There

after the company faces heavy loss due to various reasons and hence

the management was taken over by the government of India. The

home market are flooded with cheaper foreign goods with improved

quality, this is the main reason which affected the company adversely.

Thus the mill was taken over by the central government in India in

1972 through an ordinary and nationalized through an act in

parliament in 1974. The government has formed one company named

the NTC Ltd, New Delhi to manage the mills, procure good quality

material and allocate these materials to different mill and collect

produced goods from different mill for the purpose of exporting into

foreign countries like USA, Europe etc. The company introduces new

machines and production capacity increased till 1980.

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General Manger

Thereafter the company again incurred loss for many years.

Being a government undertake financial support was received from

the government and hence the mill has been running without many

problems. Furthermore, the mill along with some other NTC units

was referred to the “Board of Industrial and Financial Reconstruction

(BIFR)” under the sick industrial companies Act. The NTC (SRO) Ltd.

Coimbatore was referred to the BIFR as per the provisions of SICA

has been finally approved by the BIFR March 2002, as per the

sanctioned rehabilitation scheme five unviable units. This mill include

in the list of variable units.

Land area statement

Area of colony compound : 4.21 acre

Area of nil compounds : 8.32 acre

Pump House : 0.02 acre

Road : 0.04 acre

Total : 12.59 acre

Cannanore spinning &weaving mills

Unit of national Textile Corporation LTD

ORGANISTION STRUCTURE

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HIERARCHY OF PRODUCTION DEPARTMENT

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Senior assistant

Spinning manger

Deputy spinning manger (maintenance)

Wrapping assistant

Quality controller

Engineer

Electrician

Wire man

Assistant spinning manger (production)

Technical assistant

Store keeper

Purchase assistant

Production assistant

Shift assistant

Shift 2 super visor

Workers

Shift 3 supervisor

Workers

Shift 1 super visor

Workers

PRODUCTION DEPARTMENT

Production is the main and basic activities of all industrial units.

All other activities are revolved around this activity: the end-product

of the production activity is the creation of goods and services for the

satisfaction of human wants. Production is the process by which raw

materials and other inputs are converted into finished products.

Mixing is the value addition automatically results in productivity

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improvement. This can be done by starting from the stage of product

development and concentrating on various other intermediate tasks

and finally the implementation of proper quality control system and

maintenance of the equipments. This amount of tracking the

management issues in each and every sub system of the production

function.

In Cannanore Spinning and Weaving Mills, the main product is

yarn; yarn is a long continuous length of interloped fibers, suitable for

use in the textile, sewing, embroidery and rope making. The

production department of Cannanore Spinning and Weaving Mill is

more conscious in their production process and methods. Production

departments each functions and responsibilities are carefully done by

the according to the instructions of SRO. In Cannanore Spinning and

Weaving Mills, the production activities are undertaken by the

spinning manager, and he is the head of department. The main

functions of spinning manager are;

1. To take better decision related to the production process.

2. Provide necessary facilities to the workers in order to attain the

target.

Under the spinning manager the assistant spinning manager is

appointed. Deputy spinning manager is responsible to take the

decision related to the maintenances of machines as well as handling

of materials. Under deputy spinning manger, wrapping assistant

performs.

Factors of production in Cannanore Spinning and

Weaving mill

In Cannanore Spinning and Weaving Mills, different kinds of

inputs are need for the production of yarns. The main factors of

production are;

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1. Raw material

In production process, raw material gets transferred into

finished goods. In Cannanore Spinning and Weaving Mils synthetic

fibers are used as raw materials which includes.

Polyester Stable Fiber (1.20 D*38mm) (PSF)

PSF is one of the unavoidable materials used in the production of

corn yarns. Polyester is a synthetic fiber and also petroleum product.

It is coal derivative and the physical property is PSF (1.20 D*38mm)

Viscose Stable Fiber (1.50 D*44mm) (VSF)

VSF is a natural polymer made from wood pulp. It is generated

cellulose fiber, which is similar to natural cotton fiber with respect of

its property; physically property of VSF is (1.50 D*44mm)

But both PSF & VSF are considered as the subject of textile fiber.

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Suppliers of Raw material

As the product of Cannanore Spinning and Weaving Mill is cone

yarn, for the production of these products PSF & VSF are used.

Adequate supply of raw materials is very necessary to the mill to

achieve its target production within the specified time. In India, the

polyester is the polyester is a monopoly of two companies; they are

Reliance India Ltd and Indorama Ltd (Indonesian Company). The main

supplier of PSF Cannanore Spinning and Weaving Mills is Indorama

Ltd. PSF is supplied in the unit bale. The weight of one bale is around

400 bags. Wanted cost of one kg.PSF is RS.78 and VSF is Rs. I17/kg.

Raw material procurement process in Cannanore

Spinning and Weaving Mills

The procurement process in Cannanore Spinning and

Weaving Mills begins with preparation of spin plan. The spin plan is

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budget that shows the cost increased allocating a certain number of

machines for producing each count of yams. A selling price fixed

taking into consideration the weekly market trend. The difference in

selling price and cost provide the expected profitability. The price and

term of payment of material are fixed on the meeting and the minutes

of the meeting is send to all the mills. Since Grasim industry is the

supplier of viscose, the NTC procure it from them.

2) Machines

In Cannanore spinning and weaving Mills, highly technical and

modern machines are installed. The mill production process is carried

out in different stages as well as through different department. It

includes mixing, carding, drawing and simple etc. For this process

different machine are used in Cannanore spinning and weaving Mills

3) Labor

There are skilled, semi skilled labors perform different types of jobs at

Cannanore Spinning and Weaving Mills. These are the important

factors which affect the production of the Cannanore Spinning and

Weaving Mills.

Plant location of Cannanore Spinning and Weaving

Mill

Location of the plant is function of determining where is the

plant to be located for maintaining operating economy and

effectiveness it is an important decision which as a hearing on

efficiency of the production to the suitable location of plant. In

Cannanore Spinning and Weaving Mills, the plant is located in

Kakkad, Kannur. CS & WM located its plant in Kakkad by consider

both internal and external factors. The SRO located the plant in

Kakkad is to nearness to the market, transportation facility,

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availability of finance, communication facility, availability of power.

The main advantage enjoyed by CS&WM selecting plant location in

sub urban area or in Kakkad. The cost of land is comparatively less

than the big city. Advertising value etc. Can’t be enjoyed by the mill

because they select sub urban location for plant.

Plant Layout of Cannanore Spinning and Weaving

Mills

Plant lay out refers to the arrangement and location of different

departments and of the machinery with us a department to that an

optimum utilization of space available can be mad with a view to

enabling the plant to function in an effective manner. It involve the

allocation of space and arrangements of equipment s such a manner

that overall operate cost is minimized. In CS&WM process lay out is

used that is machine and equipments in CS&WM process lay out of

the same functional type are grouped together in a particular

department that is separate departments are established for each

production process

Production Process

Production process of yarn in CS&WM hence the mill concentrate

on the production of yarn. Therefore, process layout chooses by SRO.

There are the coordination of the production process is necessary to

ensure quality yarns at reasonable cost process regarding a

production is as follows.

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Opener Process

Mixing Process

Blow Room

Carding

Drawing

Ring Frame

PACKING

DISPATCH

Simplex

CONE WINDING

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1. Opener process

The opener process is the first process carried out in the yarn.

During the process, bales of PSF and VSF are put into an opener

machine to start the production. The oil mixed with water in the

ration of 1:1 and is sprayed on the fibre kept for a day before it is

mixed and is passed to the next department.

2. 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

predetermined production according to the requirement of yarn to be

manufactured in the particular count. By identity the count and the

mixing portion, PSF is given a tint. Tinting is helping in easy

identification of count. Different food colours light green, yellow and

pink which can be washed easily is used for tinting and is maintaining

them.

3. Blow room

The loose mix collected form mixing department is charged to the

blow room where they are topped manually in order to get a

homogenous blend of various ingredients of the mix, polyester and

viscose. The topped mix is then passed through the condenser into

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

machines. The objective of this process is to open our thick masses of

new materials of finish pieces and to give a through blending of

polyester and viscose. Certain amount of impurities of foreign matter

and metal particles, if any has to extract. The raw materials is

converted into a sheet from and wound on rod. This is called a lap,

the length and weight of each lap is determined. The length of each

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of lap is 30 yards and standard weight is 13 kg, a tolerance of plus or

minus 300 gm is permitted. The duration of forming one lap is 6

minutes.

4. Carding process

Carding process is the heart of the spinning process, the lap is

collected from the blow room is fed to the carding machine of the

carding department. In these machines sheet forms of laps are

converted into a silver form. Each lap is drafted 90to 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 un-

evenness in the yarn thickness and to ensure uniform weight. Cords

are allocated to each account, according to the spin plan and silver is

collected from the cording machines count wise. Single silver has

length of about 3000 meters and time for producing I can silver is

2.00 to 2.30 hours. There are 42 carding machines running in the

mill. Conventional card have an average life 50 years.

5. Drawing Process

The carder silver produced in the carding department is passed

on to this department here homogenous blending takes place to

achieve uniformity in thickness, weight, unit, length etc.

There are two types of process;

a)Breaker Head Drawing

In this process 8 can of silver is fed to 1 delivery of drawing

machines and each of these 8 silver are converted in to 1 single silver

by blending and drawing and is collected in one can, 8 doubling is

taking place to form single silver.

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Each drawing machines can deliver 16 can in total, with 8 cabs

placed on each sides and collected in 2 cans. A maximum of 3000

yarns can be collected in a single can after doubling. The product of

breaker head is breaker drawing silver.

a)FINISHER HEAD DRAWING

Here 8 cans collected from the breaker head of drawing

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

After this processing 4000Yarns are collected in a can. Finisher

drawing silver is the silver collected and is the end product of

drawing department. The capacity of drawing department is 16

delivers. A drawing tender has to look after 6 deliveries.

6. SIMPLEX (Speed Frame)

In this department the finisher drawing silver produced in the

drawing department is fed to the simplex machines. The silver is

passed through the drafting zone 12 to 13 times. A certain amount

of twist is imparted on the body of drafted materials, which is

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

package weight 750 gm to 1 Kg. Speed frame department has to 8

simplex machines in the first unit and 4 in the second unit having

120 spindles.

7. SPINNING (Ring Frame)

Under this section, the simplex bobbins are fed to the ring

frame reel where it passed through several parts of rollers running

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at higher speed. The draft-twists and other specifications required

are made in this stage. The mill has 864 spindles with 80 frames.

The rotating speed of spindles is 13000-14000 rpm. The output

process is the spinning bobbins or spindle of copes.

In the spinning department bobbins that are bought from the

simplex department are related on the ring frame reel and rove is

drawn through the drafting, twisting and windings. Rove is drafted

to thinner from of yarn. It is drafted to 20-27 times according to

the count to be spin. Different counts can have different twist.

This binds the fibre with one another. This is caked TPI (Twist per

Inch). A normal yarn has 20 TPL. Yarn is wound on plastic tubes

that are called copes. Average content on a cop is about 70 Gms.

8. CONE WINDING

In this department yarn in cps is converted in to yarn form. In

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

also yarn on come is defect free. According to the requirement of

the market bigger cone yarn is packed weighting 1.50 kg each. A

winder has to look after15.30 runs according to the count of the

yarn.

The full built cone of 1.50 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

winds120 cons at a time it takes about 2.30 hours. The department

has 7 cone winding machines there by each machine requires 2

persons.

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9. CONE PACKING

In this department the final product of yarn one cone are packed

in polythene bags. One such bag contains60 cones and net weight

of 1 bag is 42 kg. They put necessary details like count, gross,

weight, month, yarn of packing bag number into lot numbers. And

then these bags are ready for dispatch to the market. There are 6

workers in these departments.

Quality control department

Quality refers to the sum of the attributes or properties that

describes a product. These are generally expressed in terms of

specific product characteristics must be qualitatively expressed in

terms that can be objectively measured or observed. Systematic

control of these factors is the quality control. Quality is the only

weapon to fight in competition.

One of the achievements of the industrial revolution has been

the ability of mass producing goods of uniform quality. In recent

years, poor quality has been causing problem and an

embarrassment to the industry owners. Quality control has

therefore become highly relevant. In Cannanore spinning and

weaving Mills routine quality control is done in each department

on a regular basis in order to ensure the quality norms of the yarn.

Quality of yarn is checked at different stages of production.

Samples are taken from roving and spinning department.

The standard measure for calculating the quality of yarns is

grains followed by Cannanore spinning and weaving Mills.

1.00 kilogram=15.70 grains at the end of the

production

4.54 kilogram=7000 grains= 1pound(Lb)

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Quality measure

An electronic “direct count balance” is used to measure the

quality of yarn. Six yards of silver from carding department and

fifteen yards of rove from simple department are used to sample to

measure the quality using a “warp block”. After spinning 120yards of

yarns is measured is using a “warp red”.

A part from these a regular sample of inputs in each department

is being sent periodically to research institute like SITRA,

coimbathore and Textile committee testing laboratory, Kannur. The

study report obtained from such institute is carefully analyzed and

necessary changes are made in the production department in order to

maintain the standard quality norms.

Material Handling in Cannanore spinning and weaving

mill

Material Handling is an impotent activity in Cannanore spinning

and weaving Mills. Material handling include all the movement of

material in a manufacturing situation or .it is a combination of

methods, facilities, labour and equipment for moving, packaging and

storing the material to meet the specific objectives. Material handling

is an unavoidable activity in Cannanore spinning and weaving mills.

The main objectives of material handling activities in Cannanore

spinning and weaving mill are;

1. Fuller utilization of the capacity

2. Higher productivity at lower cost.

3. Reduce work fatigue

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4. Better space utilization.

PRODUCTION PLANNING

Planning is necessary for getting better result. Production

planning involves management decision relating to the quality of

finished goods to be produced, material and tools needed step to

follow in production etc. In Cannanore spinning and weaving

mills .pre-planning is done by preparing a monthly and yearly budget

before the annual report. Mill compares are the target with the

budget. Based upon the availability of new materials, they plan to

reduce or increase the number of yarns fixed in counts.

Facilities provided in the production department

INSPECTION

Inspection means checking acceptable of a

manufacture product. In Cannanore spinning and weaving

mills, inspection is done on daily basis. It helps to locate defects

in raw materials if and separates defects in products and

ensure qualitative products .if there by help in reducing

complaints from customers regarding the product.

MAINTANACE

In Cannanore spinning and weaving mills, asset of

activities are adopted to keep plant, machinery, tools and other

facilities in a good condition. The maintenance used here is

planned one. It involves inspection of machinery and equipment

in order or repair before actual deterioration in service occurs.

Lubrication and cleaning of machines are done weekly. This

31

enables uninterrupted functioning and machines and increases

productivity.

MATERIAL HANDLING

Material handling involves moving, packing and

storing all the materials used by a firm. Material handling

system moves material from one stages of production to

another in Cannanore spinning and weaving mills material

handling equipments like lifting machines and trolleys are used.

Material handling system improves the safety for man and

materials. Improve overall productivity, helps to conduct

production activities economically. The process layout of

Cannanore spinning and weaving mill enable effective handling

of materials.

QUALITY CIRCLE

It is a small group of employees whose assignment is to

identify problem formulates solution and place their results to

the management with suggestion for implementation. Quality

circles provide opportunity for problem solving, team building.

And growth of employees helps the company to make a more

participative culture

LIGHITING

It is one of the most important physical facilities

required in a factory. In Cannanore spinning and weaving Mill.

Adequate lighting is provided to the workers which enable them

to see minute details of work with easy and accuracy. In the

administration section, artificial lamination is providing during

the day time and also during the night shift. The intensity of

illumination is controlled to suit the requirement of

32

specification operation. Good lighting ensures high productivity

and help to prevent accidents

VENTILLATION

It includes supply and removal of air from the room .in

Cannanore spinning and weaving mill , the work place is

provide with exhaust fan removing air contamination if any. For

spinning 28 c is to be maintained so there is less number of air

holes in the production area. In the administrative section,

there is adequate number of holes, fans, windows etc to be

provided ventilation

NOISE CONTROL

Noise means unwanted sound which cause

disturbance. In Cannanore spinning and weaving mill. In the

production department machines are generating noise during

the functioning. Noise control involves minimizing the

undesirable sound to reduce the material strain of workers and

this is done by doing weekly maintenance and lubrication of

machines. Even though it is impossible to reduce climate noise,

it could be reduced to a certain extent. The administrative

office is located in a separate building far away from the

production section so the noise never becomes a disturbance

for people working there.

Last 5 year production

33

Year of production Total production (kgs)

2013-2014 31.82

2012-2013 21.14

2011-2012 11.79

2010-2011 21.87

2009-2010 12.22

32%

22%12%

22%

12%

total production

2013-20142012-20132011-20122010-20112009-2010

Maintenance schedule of machine

Equipment is an important resource which is constantly used for

adding. Value to the product so it must be kept at the best operating

condition otherwise. There will be an excessive downtime and also

34

interruption of production if it is used in a mass production line. Poor

working equipment’s will lead quality related problems.

In Cannanore spinning and weaving mills maintenance of plant

are carryout to ensure quality to the product as well as to increase to

efficiency of an organisation. There are different kinds of

maintenance used in deferent organization like planned maintenance

corrective machines etc. In Cannanore spinning and weaving mills,

planned maintenance is carryout for the machines. This means

register inspection maintenance are carryout on planed basis that is

maintenance activities are carryout according to the predetermined

schedule.

The main advantage enjoyed by the Cannanore spinning and

weaving mill to carryout planned maintenance is it aims to reduce

machine stoppage due to sudden break down and necessitating

emergency maintenance and it also help to reduce the machine or

equipment down time. Reduce the cost of maintenance and it helps to

increase productivity mill.

35

36

HUMAN RESOURCES DEPARTMENT

The term human resource may be defined as the total knowledge,

skill, creative, abilities, talents and aptitude of organization work

force as well as the value attitude approach and believes and

individual invited at the affair of the organization. In order to manage

the human resource in an organization human resources department

was formed. The need for human resource department of an

organization increased mainly because of the production of the

product or goods of an organization can be increased only with the

help of personnel of an organization. The HR department ensures

better effective personnel to carry out the activities in the

organization.

In Cannanore spinning and weaving mills human resources

related matters are carried out by H R department. Her head of

department is HR manager; main duty of HR manger is to receive

order and instruction GM, SRO, coimabatore.HR manager give

necessary order and instruction to the GM of Cannanore spinning and

weaving mill. The orders are related to the recruitment policy.

Sources of recruitment, training and welfare function provided by the

mills to its workers etc. are specified in order to the personnel

manager for the purpose implementation. In order to help or reduces

the burden of personnel manager, deputy personnel manager is

appointed in the Cannanore spinning and weaving mill. The deputy

personnel manager performs the role of personnel manager in the

37

absence of him deputy personnel manager provide necessary

instructions labour officer in order to implement the order given by

the SRO. Main duty of welfare officer is to perform as welfare to the

employee. He provides lot of welfare facilities to the worker in

Cannanore spinning and weaving Mills.

HUMAN RESOURCES DEPARTMENT CANNANORE SPINNING

AND WEAVING MILLS

HIERARCHY

38

Labour welfare officer

Time keeping

Senior assistant

Junior assistant

Human Resource Management: Defined 

Human Resource Management has come to be recognized as an inherent part of

management, which is concerned with the human resources of an organization. Its

objective is the maintenance of better human relations in the organization by the

development, application and evaluation of policies, procedures and programs relating to

human resources to optimize their contribution towards the realization of organizational

objectives. 

In other words, HRM is concerned with getting better results with the collaboration of

people. It is an integral but distinctive part of management, concerned with people at

work and their relationships within the enterprise. HRM helps in attaining maximum

individual development, desirable working relationship between employees and

employers, employees and employees, and effective modeling of human resources as

contrasted with physical resources. It is the recruitment, selection, development,

utilization, compensation and motivation of human resources by the organization. 

Human Resource Management: Evolution 

The early part of the century saw a concern for improved efficiency through careful

design of work. During the middle part of the century emphasis shifted to the employee’s

productivity. Recent decades have focused on increased concern for the quality of

working life, total quality management and worker’s participation in management. These

three phases may be termed as welfare, development and empowerment. 

39

Human Resource Management: Nature 

Human Resource Management is a process of bringing people and organizations together

so that the goals of each are met. The various features of HRM include: 

• It is pervasive in nature as it is present in all enterprises. 

• Its focus is on results rather than on rules. 

• It tries to help employees develop their potential fully. 

• It encourages employees to give their best to the organization. 

• It is all about people at work, both as individuals and groups. 

• It tries to put people on assigned jobs in order to produce good results. 

• It helps an organization meet its goals in the future by providing for competent and

well-motivated employees. 

• It tries to build and maintain cordial relations between people working at various levels

in the organization. 

• It is a multidisciplinary activity, utilizing knowledge and inputs drawn from

psychology, economics, etc. 

Human Resource Management: Scope 

The scope of HRM is very wide: 

1. Personnel aspect-This is concerned with manpower planning, recruitment, selection,

placement, transfer, promotion, training and development, layoff and retrenchment,

remuneration, incentives, productivity etc. 

2. Welfare aspect-It deals with working conditions and amenities such as canteens,

crèches, rest and lunch rooms, housing, transport, medical assistance, education, health

and safety, recreation facilities, etc. 

3. Industrial relations aspect-This covers union-management relations, joint consultation,

40

collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc. 

Human Resource Management: Objectives 

• To help the organization reach its goals. 

• To ensure effective utilization and maximum development of human resources. 

• To ensure respect for human beings. To identify and satisfy the needs of individuals. 

• To ensure reconciliation of individual goals with those of the organization. 

• To achieve and maintain high morale among employees. 

• To provide the organization with well-trained and well-motivated employees. 

• To increase to the fullest the employee’s job satisfaction and self-actualization. 

• To develop and maintain a quality of work life. 

• To be ethically and socially responsive to the needs of society. 

• To develop overall personality of each employee in its multidimensional aspect. 

• To enhance employee’s capabilities to perform the present job. 

• To equip the employees with precision and clarity in trans¬action of business. 

• To inculcate the sense of team spirit, team work and inter-team collaboration. 

Human Resource Activities 

In order to achieve the above objectives, Human Resource Management undertakes the

following activities: 

1. Human resource or manpower planning. 

2. Recruitment, selection and placement of personnel. 

3. Training and development of employees. 

4. Appraisal of performance of employees. 

5. Taking corrective steps such as transfer from one job to another. 

6. Remuneration of employees. 

7. Social security and welfare of employees. 

8. Setting general and specific management policy for organizational relationship. 

41

9. Collective bargaining, contract negotiation and grievance handling. 

10. Staffing the organization. 

11. Aiding in the self-development of employees at all levels. 

12. Developing and maintaining motivation for workers by providing incentives. 

13. Reviewing and auditing manpower management in the organization 

14. Potential Appraisal. Feedback Counseling. 

15. Role Analysis for job occupants. 

16. Job Rotation. 

17. Quality Circle, Organization development and Quality of Working Life. 

Human Resource Management: Major Influencing Factors 

In the 21st century HRM will be influenced by following factors, which will work as

various issues affecting its strategy: 

• Size of the workforce. 

• Rising employees’ expectations 

• Drastic changes in the technology as well as Life-style changes. 

• Composition of workforce. New skills required. 

• Environmental challenges. 

• Lean and mean organizations. 

• Downsizing and rightsizing of the organizations. 

• Culture prevailing in the organization etc. 

OBJECTIVE OF HUMAN RESOURCE DEPARTMENT

1. To create and utilize an able and motivated workforce, to accomplish the basic

organizational goals.

2. To establish and maintain sound organizational structure and desirable working

relationships among all the members of the organization.

42

3. To secure the integration of individual or groups within the organization by co-

ordination of the individual and group goals with those of the organization.

4. To create facilities and opportunities for individual or group development so as to

match it with the growth of the organization.

5. To attain an effective utilization of human resources in the achievement of

organizational goals.

6. To identify and satisfy individual and group needs by providing adequate and equitable

wages, incentives, employee benefits and social security and measures for challenging

work, prestige, recognition, security, status.

7. To maintain high employees morale and sound human relations by sustaining and

improving the various conditions and facilities.

8. To strengthen and appreciate the human assets continuously by providing training and

development programs.

9. To consider and contribute to the minimization of socio-economic evils such as

unemployment, under-employment, inequalities in the distribution of income and wealth

and to improve the welfare of the society by providing employment opportunities to

women and disadvantaged sections of the society.

10. To provide an opportunity for expression and voice management.

11. To provide fair, acceptable and efficient leadership.

12. To provide facilities and conditions of work and creation of favorable atmosphere for

maintaining stability of employment.

FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

In Cannanore spinning and weaving mill personal manager is the

head of personnel department. He is a charge of the administration

43

discipline and other administrative functions. The important functions

of HR in Cannanore spinning and weaving mills are,

1. Retirement

One of the important functions of HR department is to

Cannanore spinning and weaving mill. Recruiting the persons

searching for prospective candidate and simulate them to apply

for the job in the mill. For this purpose both internal sources of

recruitment is followed by the company. Recruitment at factory

gate, employment exchange, advertisement etc. In the major

source of recruitment the internal source include promotion

and transfer. Transfer in Cannanore spinning and weaving mill

shifting of employee in one position to another without

changing the remuneration and status. Promotion means giving

higher position to an employee who carries higher status and

more responsibility. Promotion policy of Cannanore spinning

and weaving mill is based on seniority or ability of a person

2. Selection

Another important function of HR department is selecting

the right person from the available candidates or chooses right

type of candidates to fill the position of an organization.

Selection process will start when some applications are

received from the candidate in Cannanore spinning and

weaving mills. The HR department will clarify the file

applications and will screen out the applicant for initial

interview or employment test. There are different tests which

44

are conducted to select office staff, in case of factory workers

directly to give training to him

3. Placement

In Cannanore spinning and weaving mills placement of the

worker means placing them in an appropriate production

department, spinning department, winding department etc.

4. Training

In Cannanore spinning and weaving mill training given for

workers are induction training, apprenticeship training for

promotional type. In order to carry out the production

activities, on the job training methods also followed here

5. Compensation

Another important function of HR department is to

compensating the worker. Various allowances are provided by

the mill to its workers, it includes.

PF

ESI

Gratuity ,retirement benefits, pension

Leave with wages etc, is provided to the workers to

compensating the worker.

6. Better working condition

Motivating the worker is the main function performed

by the HR department

7. Absenteeism

In Cannanore spinning and weaving mill absenteeism of

worker create lots of problem. If any employee absents

regularly the personnel manager give notice to him. If the

reason for absent is not sufficient, the company dismiss the

45

worker. In the current situation 20% of employees are in the

absent trend.

INITIAL TRAINING PROGRAMMES

No Opinion No. Of

Respond

percentage

1 On- the -job 50 100

2 Off- the-job 0 0

3 Total 50 100

on -the- job of -the- job0

20

40

60

80

100

120

140

160

180

INTIAL TRANING PROGRAMMES

opinionno of respondpercentage

Axis Title

FOLLOWING ARE THE MAIN AREAS OF

ADMINISTARATION.

46

RECURTMENT, TRAINING, PROMOTION

Currently no recruitment is taking place in Cannanore spinning

and weaving mill. From time to time training is conducted apprentice

training is held as per the apprentice act. Clerical staff is decided by

the NTC. A promotion for the workers or staff is security merit.

PROVIDENT FUND CONTRIBUTION

All employees are covered under PF &ESI act, the employee

contribute 12 %( basic pay +DA) of their wages to EPF or salary with

12% contribution by employer. The employees are eligible for up

service with a calling of Rs 6500/ month.

Other pension is worked out as per the following formula

1/70*pensionable*pensionable service

ESI CONTRIBUTION

4.75% of employer’s contribution

1.75% of employee’s contribution

Medical benefit, accidental benefit, sick benefit, leave are provided if

necessary, funeral benefit are also provided if any one dies during the

period service.

GRATUTIY

Gratuity is calculated under the given formula

Per month salary *15 days

Last drawn basic + DA * number of years of experience *15/26

The previous ceiling limit of total amount of gratuity payable was

3.50lakhs and now it has exceeded to 10 lakhs

WAGES ADMINISTRATION

They are two types of wages followed in Cannanore spinning and

weaving mill according to the production stages. For mixing blow

47

room and carding wages are based on the basis of pieces rate system

for all other production process time rate system is obtained.

RETEREMENT BENIFITS

At the time of retirement all these benefits are provided.

Gratuity

Provident fund

Pension(PF)

Leave with wages if any

TIME SHEDULE

There are around 509 workers and 22 administration staff. Time

schedule in Cannanore spinning and weaving mill for workers in 3

shifts are,

6.45 am to 2.30 pm - 1st shift

2.30 pm to 10.30 pm - 2nd shift

10.30 pm to 6.45am - 3rd shift

Opinion about canteen facility

No Opinion No .of

respond

Percentage

1 Good 50 100

2 Average 0 0

3 Poor 0 0

4 Total 50 100

48

OPINION ABOUT CANTEEN FACILITY

good average poor0

10

20

30

40

50

60

70

80

90

100

opinon no . Of respondpercentage

Interpretation

Above table shows that 100% of the employees are satisfied with the

canteen Facility .The company may provide good and healthy food to

employees

49

OPINION ABOUT SALARY AND ALLOWANCE

No. Opinion No. Of

respond

Percentage

1 Highly

satisfied

0 0

2 Satisfied 23 46

3 Naturally 27 54

4 Not satisfied 0 0

5 Total 50 100

50

HIGHLEY SATISFIEDSATISFIED

NATURALLYNOT SATISFIED

0

10

20

30

40

50

60

NO .OF RESPONDPERCENTAGE

Permanent Employee Strength

OFFICE 6

SUPERVISION 4

STAFF 12

PERMANENT WORKERS 263

OTHER 246

Relationship between trade union and Cannanore

spinning and weaving mill

In order to carry out the personnel activities a separate

department functioned in Cannanore spinning and weaving mill that

is, personnel department dealing with wages of employee is not for or

if any bargaining between the workers and the management need of

51

trade union is essential. Trade union is an organization of employees

formed on a continuous basis for the purpose of securing benefit.

There are different type of trade union organization which play a vital

role to attain the right of employee in the organization important

trade unions, which have members in Cannanore spinning and

weaving mill are INTUC (Indian national Trade union congress),

CITU(centre of Indian trade union),BMS ( Barathiya Mazda sangh)

and NLO (national labour organisation). The main objective of this

union is to steady employment. Nationalization of personnel policies

act as a voice in decision effecting workers, ensure reorganization and

participation of worker in any task carried out by the management.

SOWT ANALYSIS

Strength

Company contains a large number of efficient employee

Friendly atmosphere exist in the organization

This company has highly trained employees.

There is a good factory and highly sophisticated machineries

Weaknesses

Cannanore spinning and weaving Mill is not giving chance for the younger people

The administration desk is not fully computerized

Employees are not appreciating in time

Conflict between the trade unions occurs as there are more than two unions

Opportunities

Textile industry have a very good future in the world market

The market demand for the yarn is increasing day by day.

The growth rate will high in the coming years in the case of spinning mills.

The global textile is gradually shifting from china to other lowest destination

Weaknesses

The administration desk is not fully computerized

52

Employees are not appreciating in time

Conflict between the trade unions occurs as there are more than two unions

FINDINGS

PRODUCTION DEPARTMENT

Safety measures are adequate, but there is a need to improvement in

arraigning safety measures.

They did not waste any type of material; the waste are sold to the person

who needs it.

Quality products and with adequate standards.

Less efficient employees are working in Cannanore spinning and weaving

mill.

HUMAN RESOURCE DEPARTMENT

Most of employees are satisfied with the present working conditions.

Waste disposal system and leave facility provided to them

Management provides good canteen facility at a cheaper rate, meals at I

and others at 20 paisa.

Employees in the Cannanore spinning and weaving mills are well

informed with all type of changes in the company

Most of employees are having good opinion about the welfare programs of

the company

Some employees are not satisfied with their present compensation.

Trade union plays a vital role which will affect the good employee

employer relationship

The company provides almost all welfare facilities to employees. But this

does not increase the productivity and profit

Most employees are satisfied in training amenities provided to them.

53

Employee welfare facilities and productivity are associated. If the welfare

facility is favorable, the productivity of the firm is same only.

Less workload to employees

High employee turnover is there

SUGGESTION

Marketing function should be given to the firm itself.

Firm can give more awareness to the public about its product by

conducting exhibition and other programs.

Official website need to make more attract full and should be added more

advanced information about the product.

Offers should be made in an influencing manner, so that the consumers

would be attracted towards the products.

Promotion tools should be improved like the advertisement on internet and

E-mail marketing etc.

Political influence should be minimized.

A study should be conducted to measure the overall performance of the

organization and which help to understand the strength and weakness of

the company.

Firms can also concentrate on promotional tools like personal selling.

Telemarketing etc. it may help to give better result in business.

The firm should take necessary steps to avoid back tracking and re-

handling of materials.

54

Organization should maintain good relation with costumers and public.

Which will increase the reputation of the firm

The firm should maintain a good research and development departments to

understand the market trend, popular designs. Costing etc.

If the workers turnover is reduced, it will result in good productivity.

The firm should reduce the lead time that will help to achieve customer’s

credibility.

In order to improve the employee’s standard of living the management

should implement competent remuneration structure

The firm should give more incentives. Bonus, festival allowances etc. to

the workers. It motivates the workers to work more. It also reduces

absenteeism and labor turn over.

Company should organize family get together or tour program once in a

year to develop an informal relationship between employees and

management in the organization

The firm imparts more training programs to employees. Training should

increase the efficiency and productivity of labor force. Proper training

helps to develop positive attitude among employees. job satisfaction can

be achieved and it increases the morale of the employee.

55

CONCLUSION

The study has been conducted on overall performance of Cannanore spinnining weaving

mill. The study has helped to gain more knowledge about textile industry the main

objective of the company is to carry on the jobs for 100s of employees and producing

Yarn. With the regularization of multi fiber agreement and the boom in the retail market,

the textile industry has a great potential growth. However, in order to ensure a sustainable

growth. jobs in the future, it is essential to use innovation in the process and to produce

new products. If proper functions are applied there is a chance of growth of company in

rapid manner. As it is a government company, it takes long time to create some change in

the company. it is also essential to invest in new productive assets to streamline

operations and to intensify their innovation activities. The Cannanore spinning and

weaving mill too have been allocating funds that would assist in bringing about such

changes.

At present the company going to start producing cotton yarn. New building has

been built and new machinery has purchased, for the production of yarn. The Cannanore

spinning and weaving mill is producing super high twist yarn which is of high demand in

the current market. They consider the human element as the important input management

has given preference to human ability rather than any other factor of production. Like

machine, material. Capital etc .The workers are considered as the wealth of the company.

Now day’s companies are offering soft benefits to attract and retain competent

56

employees. If the welfare activities are not attractive. The existing employees will leave

the organization and joint other concern. If the employee is not satisfied, he will not work

properly. It will effect the growth and reputation of the organization. The sales report of

the firm using international branded companies machineries and expert workers work

under the strict super vision of quality section can create the perfected finished yarns and

it results in the customer satisfaction. The success of Cannanore spinning and weaving

mill largely depends up on the performance of the employees.

ANNEXURES

Questionnaire

In which year Cannanore spinning and weaving mill was started?

Who is the current general manager

What are the general information regarding the company

What are the organizational structures to be followed by NTC?

What is the present position of the mill

What is the profile regarding a product?

What is the mission ,vision ,objectives of the company

What are the sources of requirement either internal or external?

What are the time schedule of the company

How can fix the compensation, allowances and other benefits?

What do you meant by absenteeism according to NTC?

Is there is any controversy regarding Cannanore spinning and weaving

Mill and trade unions?

Is there any credit help by the company?

Which accounting system followed by NTC?

Who are the buyers in the spinning mill?

What type of product produced in the spinning mill?

What type of machineries is used in the mill?

57

How can find out plant location of the mill?

How can measure the quality of a product?

What are the statistical quality control to be followed?

BIBLIOGRAPHY

WEBSITES

www.google.com

www.yahoo.com

www.ask.com

OTHERS

Official document

Direct personal interviews with official & workers

58