project vysakh babu(1)
TRANSCRIPT
1
An ORGANIZATION STUDY
OnMenma Food Industries
Submitted to
Mahatma Gandhi UniversityKottayam,Kerala
In partial fulfillment of the requirement
For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION2010-2012
By Vysakh BabuRegister No: 21725
Admission No: MM1/095/10July2011
Under the Guidance of
Mrs Anjali ( Asst.prof)
MARIAN ACADEMY OF MANAGEMENT STUDIES puthupady P.O, kothamangalam
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DECLARATION
I ,Vysakh Babu an MBA student of Marian Academy of Management, Puthupady do
hereby declare that this report on “Organization study at Menma Food Industries, under the
guidance of Ms Anjali , Faculty of Operational Research, Marian Academy of Management
Studies in partial fulfillment of the requirements for the award of the degree of “Master of
Business Administration” is a bonafide study I have done in the organization. I also declare
that this report has not been previously formed for the award of any Degree, Diploma,
Associate ship, Fellowship or any other similar title of this or any other university or institution.
Kothamangalam. Vysakh babu
14th july 2011
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ACKNOWLEDGEMENT
I would like to take the opportunity to express my profound gratitude to all the
people who have helped me to successfully complete is organizational study with their
sound advice and able guidance.
I place my sincere thanks to Mr.shafeek muhammed Mg Partner , Menma
Limited for permitting me to do the organizational study at Menma . I would also like to
thank the members of all other departments for their constant support and guidance
I am greatly thankful to Prof.Dr P K Sundaresan, Marian Academy of
Management Studies for providing proper encouragement in the completion of the
organizational study. I express my sincere gratitude to Asst.Prof.Anjali sijo , whose
guidance and support throughout the organizational study helped me to complete this
report successfully.
I would like to express my profound gratitude to all faculty members of Marian
Academy Of Management for their interest and co-operation in the regard.I would like to
thank my classmates for their support and co-operation.
Above all I would like to thank The almighty for all the benevolence that He shower
on me and to have helped me to complete this work very successfully
Kothamangalam Vysakh Babu
27/10/2011
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CONTENTS
Chapter No; Contents Page No
1
1.1
1.2
1.3
1.4
1.5
Introduction
Need &Significance Of The Study
Objectives Of The Study
Scope Of The Study
Methods Of Data Collection
Scheme Of Reporting
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7
7
7
8
9
2
2.1
2.2
2.3
2.4
Company Profile
Introduction To Company
Vision And Mission
Organizational Structure
Industry Profile
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14
15
15
9
3
3.1
3.2
3.3
3.4
3.5
4 4.1 4.2 4.3 4.4 4.5 4.6 4.7
General Management Practices
Planing process
Descion making process
Information system
Communication system
Corporate management representatives
Functional Departments of MENMA
Human Resource Department
Marketing Department
Production Department
Accounting & Finance Department
Other Departments
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No
contents Page No
5 Swot Analysis 68
6
Conclusion 71
7 Bibiliography 73
List of Chart & Tables
No Chart no Chart name
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2
3
4
5
6
7
8
9
10
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Chart 2.1
Chart 4.1
Chart 4.2
Chart 4.3
Chart 4.4
Chart 4.5
Chart 4.6
Chart 4.7
Chart 4.8
Chart 4.9
Chart 4.10
Organisation structure
HR department structure
Marketing department
Production department
Finance department
Purchase department
General stores
Maintenance department
Quality control
Transport
Packing house
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Chapter-1
INTRODUCTION
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INTRODUCTION
Organization is a social unit which is deliberately constructed and reconstructed to seek specific
goals .An organization comes into existence when there are a number of persons in communication and
relationship to each other and are willing to contribute towards a common Endeavour. The evolution of
organization dates back to the early stages of human civilization when two or more persons began to
cooperate and combine together for fulfilling their basic needs of food, clothing, shelter and protection
of life .Thus, an organization is born when people combine their efforts for some common purpose. It is
a universal truth that an individual is unable to fulfill his needs and desire alone because he lacks
strength, ability and resources. So he seeks the cooperation of other people who share goals with him.
This organization study is carried out at Menma food Industries Ltd, Manikkinar; .The
organization study has been carried out to get an understanding of the structure and functioning of the
organization.
1.1) NEED & SIGNIFICANCE OF THE STUDY
Organization is one of the inevitable part of business & management .there for study of
organizational structure management process, functions etc.... are very significant as far as present day
trend is concerned textile industry and business is fast growing one. The study is very important for
knowing the following.
1) To have an idea about the products
2) To have an idea about the organizational structure of the company
3) To have an idea about the departmental functions of the company
4) To have an idea about the financial position of the company
1.3) SCOPE OF THE STUDY
The internship training was intended to provide Industrial exposure to the trainee and bridge the
gap between theory and practice .the study was only covered the few departments of MENMA FOOD
INDUTRIES LTD namely personnel & administration(HR) department, the finance department,
marketing department ,production department, purchase department and was intended only for a period
of one month from 15th June 2011 to 15 the July. The study was mainly conducted to understand the
functions , processes and procedures of different departments of the company. This training report
covers the details of the departments in which the trainee could get access and interact with responsible
executives.
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1.4) METHODOLOGY
This study was a descriptive study conducted mainly to familiarize with the activities, processes,
policies, programmers’ and procedures followed in the firm. Required data for the study was collected
through monitoring and interrogation. The study is made personally visiting the company at
Manikkinar.the data were collected through various methods. the methods adopted mainly are:
1) Primary data
2) Secondary data
METHODS OF DATA COLLECTION
Primary data Observation
Interviews
Interactions
Secondary data Website
Documents
Organization manuals
Primary data
Primary data collected through discussion with manager, various department heads ,officers and
employees.
Secondary data
Secondary data for the study was collected from both internal annual reports, website, office
records were used for collecting relevant information for this study. and external sources . Internal
records like annual reports, website, office records, management reports, house magazines were used for
collecting relevant information for this study. The data needed to prepare this project was obtained from
other published sources like internet, magazines, business dailies, journals and business magazines
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1.5)SHEME OF REPORTING
This report is presented in five chapters .the first chapter introduces the study by highlighting the
need for the study, the study objectives, methodology and scheme of reporting. The second chapter on
industry profile discuss about the textile industry. it describes about the world textile industry and the
Indian textile industry in detail. Third chapter describes profile of MENMA FOOD INDUSTRIES PVT
LTD. the fourth chapter describes the detailed study of different departments in which the trainee had
under gone the training. The fifth chapter describes the suggestions and recommendations .the last
chapter includes the conclusion.
OBJECTIVES OF THE STUDY
To have an overall study of the company and to familiarize with its various functions
To enable the trainee to understand the organization structure and processes in a practical
o setting.
To get an idea about how different functional departments are structured and how each one
of them operate
To know how the key business processes are being carried out in a manufacturing firm.
To have first hand information about the various policies and programmes of the firm.
To provide an opportunity to the trainee to analyze real life problems and apply the concepts
and theory learnt in the class room
Chapter-2
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INDUSTRY PROFILE
INDUSTRY PROFILE
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Spices play an important role in enhancing the flavour and taste of the processed foods. They are
also used in the medicines because of their carminative, stimulative and digestive properties. India
produces almost all the known spices and is the largest exporter of this commodity. Ground spices
are extensively used in all types of curried dishes in India and abroad. Although spices are traded
chiefly in an unprocessed form, a small yet significant quantity enters international trade as spice
powders. Curry powder is the foremost of those blends or mixes and sometimes consists of 20 or
more spices designed to add the characteristic flavour of an Indian curry, which is appreciated all
over the world. Apart from the overseas market, processed curry powder is becoming popular in the
domestic market also. Hence the
demand for unadulterated spices and curry powder in attractive handy packaging, is fast emerging.
By 3000 B.C. turmeric, cardamom, pepper and mustard were harvested in India. The Harappans
who occupied Harappa and Mohenjodero in the Indus Valley, were of mixed stock, somewhat
larger in stature than either the Sumerians or Egyptians denying theories that they were an
extension of those communities. They had club wheat, barley, sheep and goats from the Iranian
Plateau and cotton from Southern Arabia or North East Africa but were held back by their reliance
on flood waters due to general lack of knowledge of irrigation.
Sumer had trade links with the Indus Valley via Hindu Kush by 3000 B.C. and by sea from 2500
B.C., thus linking the Harappans with both Sumerians and Egyptians, where cumin, anise and
cinnamon were used for embalming by 2500 B.C.
By 1750 B.C., the Harappan civilization had disappeared, probably due to floods and tectonic
shifts, to be replaced by the Aryans who invaded via Hindu Kush by 1500 B.C. The Aryans had
considerable contact with Babylon from whence the original flood legend arose to be adopted by
both the Aryans and the Hebrews and several other civilizations.
Curry powder was largely popularized during the nineteenth and twentieth centuries through the
mass export of the condiment to the western table, throughout Europe and North and South
America and through its use in British Army rations. Curry powder did not become standardized, as
many of the original blends of curry powder were still available throughout the world. The late
1960s and early 1970s saw a growth of Indian-based food consumption in the west and
internationally. This led to an increase of Indian restaurants throughout the world. The tradition of
keeping special blends of curry powder simply became uneconomical, and curry powder became
increasingly standardized outside India.
Spices, aromatic vegetable products used as flavoring or condiment, normally refer
to the derivatives from certain herbs like Seeds, Leaves, Bark, roots etc. They are used
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mainly for enhancing taste of the food. The name spice is derived from the word species,
which was applied to groups of exotic foodstuffs the Middle Ages.
Spice term was formerly applied also to pungent or aromatic foods, to ingredients of
incense or perfume and to embalming agents. Modem usage tends to limit the term to
flavorings used in food or drinks, although many spices have additional commercial uses,
e.g., as ingredients of medicines, perfumes, incense and soaps
The earliest literary record in India on spices is the Rig Veda (around 6000 BC). The
story of Indian Spices dates back to 7000 years into the past. In the modern world, major
trade is related to eating and spices provide the major thrust - traditionally a country of
agriculture, India leads the trade.
Spices can improve the palatabilily and the appeal of dull diets or spoiled food.
Piquant flavors stimulate salivation and promote digestion. Pungent spices can cause
sweating, which may even cause a cooling sensation in tropical climates; on the other hand
they can add a sense of inner warmth when present in cooked foods used in cold climates.
In India, traditionally, spices formed a part of common man's daily food.
India and Spices
Indian Spices played important role in the history of various lands, discovered or
destroyed, kingdoms built or brought down, wars won or lost, treaties signed or flouted,
flavours sought or offered. Spices have also played a political role in the history. The use of
spices from the Hast became a status symbol by the year 1200 and the European
preoccupation with the world of spice was born. The use of spice in food meant money and
power, and lite desire to acquire these precious status symbols led to world exploration pan-
global communication, trade, alliances and wars.
Indian Spices also fitted into philosophic concepts of improving health, since it was
understood that they could affect the four humors (blood, phlegm, yellow bile and black
bile) and influence the corresponding moods (sanguine, phlegmatic, choleric and
melancholic). Thus, ginger would be used to heat the stomach and improve digestion; clove
was believed to comfort the sinus; mace would prevent colic and bloody fluxes or diarrhea;
nutmeg would benefit the spleen and relieve any bad cold.
Business of spices
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Within the past one decade the international trade in spices has grown by leaps and
bounds. An estimated 500,000 tonnes of spices and herbs valued at 1500 million US dollars
are now imported globally every year. An impressive 46% of this supply-comes from India.
India's exports of spice extracts have shown spectacular growth attaining over 50 percent of
the global market within a short span. The Indian export of spices has crossed the 450
million US dollar mark during 1999-2000 and has reached 468 million US dollar. This
remarkable achievement is born of a sea change in the industry scenario. From traditional
commodity exports, Indian Spices have evolved into a state-of-the-art industry.
The Indian share
At present, India produces around 2.5 million tonnes of different spices valued at
approximately 3 billion US $, and holds the premier position in the world. Because of the
varying climates suitable for the spice cultivation. Almost all spices are grown in this
country. In almost all of the 25 states and seven union territories of India, at least one spice
is grown in abundance. No country in the world produces as many kinds of spices as India.
In recent years, export of Indian Spices has been taking giant leaps. The Indian
export of spices has crossed the 450 million US dollar mark during 1999-2000 and has
reached 468 million US dollar. The Spices Board, India is the apex for the export promotion
of Indian Spices The Board has been with the Indian Spice industry every step of the way.
The Board plays a far-reaching and influential role as a developmental, regulator and
promotional agency for Indian Spice
Spice Business in Kerala.
Kerala is a land of spices considering the large variety of spices grown in the state.
Today there are as many as 26 Indian spices that are greatly in demand in different
countries. Little wonder then that India is the single largest source of spices in the world.
The most popular among the spices are pepper, cardamom, turmeric, chilies and
ginger. Pepper, known as the 'King of Spices' is perhaps the world's oldest known spice and
is cultivated in over 158,000 hectares in Kerala, which accounts for 96 % of the total
production in the country. There are a lot of opportunities for investors in the spice sector
and Spices Board, the caretaker of the sector in India is based in the state.
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COMPANY PROFILE
COMPANY PROFILE
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MENMA FOOD INDUSTRIES Ltd has established in the year of 1994. . It was promoted by K.S
Mohammad, K. M Shihab and Kerala State Industrial Development Corporation Ltd. The main object is
to manufacture food products. It is also having the certification of ISO 9001-2000. It is one of the
leading food products manufacturers in Kerala. Impeccable quality, reasonable prices and timely
delivery of the products are the hallmarks of the enterprises. The organization is a progressive
manufacturer, exporter and trader of chilly powder, coriander powder, turmeric powder, wheat powder ,
. Equipment with the latest technology and supplemented by skilled work force have enable the
company to stand up to stringent national and international standards. The company has carved a
valuable rich for itself in today’s competitive business scenario by delivering higher grade solutions at
reasonable prices.
The group started its activities by venturing into wholesale trading. Subsequently the group
diversified its business into manufacturing and sales of bar soaps, detergent, match box.
Menma Vision
A. To be a preferred employer in the industries we are in, by providing challenging work
environment and adding value to our people through varied exposure and continuous education.
B. To be preferred suppliers catering to the basic needs of the mass market by providing
products of outstanding value through adoption of global standards and innovative practices.
Few of keynote worthy achievements under this eminent management are the following:-
1. ISO 9001 – 2000 Certified company
2. Human Resource Development concepts fully implemented
3. Quality circles formed and working effectively
4. TQM implemented which is headed by a TQM professional
5. Enterprise Resource Planning implemented
6. Progress in introgression of operation
7. Finance committee receives the performance of each unit every month
8. Corporate governance introduced
MENMA FOOD INDYSTRIES AT A GLANCE
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Name of the firm : MENMA FOOD INDYSTRIES LIMITED
Year of establishment : 1994
Registration Number : L25119KL1993PLC007213
Industry Name : Food Processing / food Products
Nature of organization : Public Limited Company
Status : ISO 9001-2000
Number of Employees : 154
TIN No : 32151527054
CST No : 1515C-002705
Land Area : 3 Acres
Building Area : 20,000 Sqft
Bankers : The Federal Bank Limited
Registered& Corporate Office : MatherSquare, 6th Floor
North Railway Station Road,
Ernakulum, Kochin-16
Factory : Manikkinar,
Kothamangalam,
Ernakulum (Dt).
Auditors : JVR & Associates
Chartered Accountants
Ernakulum
Cochin – 16
Registrar and share transfer Agents: Integrated Enterprises (India) Ltd.,
Ernakulum, Kochi – 18
Main Product a) Aliya wheat powder
Branches : a) Coimbatore
b) Indore
Exports : Aliya food Ltd, Mainly exports its goods to:-
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a) Dubai
b) Saudi-ariba
c) Qatar
BOARD OF DIRECTORS
Mr. K.M. Shihab : Chairman
Mr. M.E. Mohammed : Managing Director
Mr. Shefeeq Mohammed : Director
Mr. Shajesh Mohammed : Director
Mr Babu K.M : Director
Mr. Joseph Vargese : Director
Product profile
No Item Packs available now
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2
3
4
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Wheat powder
Chilly powder
Coriander powder
Meat masala
Chicken masala
Fish curry masala
Rasam powder
Sambar powder
Pickle powder
500g 1kg 5kg
100 g 250 g 500g 1kg
100 g 250 g 500g
100 g 250 g 500g
100 g 250 g
100 g 250 g
50g 100 g 250 g
100 g 250 g
100 g 250 g 500g
Production Process
Purchase of raw material
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Drying and cleaning
Grinding
Mixing
Packing
Dispatching
Drying and cleaning
The company cleaning the raw material before its transformation. In this stage
company removing the dust and unnecessary parts. At the same time company drying the
raw material necessary.
Grinding
At the same stage of grainding the raw material transformed in the form of
finished products, ie, in the powders dust CTC machine is using these for secondary.
Mixing
This is the fourth phase of production process. Mixing use especially in masala.
Powders and pickle mixes etc. Packing. After the second phases company is packing the
products in plastic cover, bottles etc.
Packing
The company packs its products in polythien cover and bottles.
Plant Layout
The company have process layout must be affect companies efficiency, quality of
production, supervision etc. Process layout help to the company for effective suspension,
quality checking in each stage, effective utilization of spices etc.
Structure of the plant layout
Drying machine
Cleaning machine
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Grinding Machine
Packing Machine
Method of releasing the raw material for production
FIFO method
The Menma foods products and Curry Powders Company release the raw
material in the first in first out method (FIFO).
Menma foods products and Curry Powders Company have a very good production
department. The main objectives of the production department is quality maintenance
because quality is more important especially in the case of food products. The company
successfully maintaining the products quality by highly involving workers and
management.
Bonus
The company gives at the time of festival occasions, such as onam, Christmas,
Ramzan etc.
Workers Participation in management
The company considers the valuable suggestions of workers especially I packing
design, products quality maintaining etc.
The company has good distribution channels
Whole sailors
Retailers
Shops
Customers
Advertisement
Menma Foods and Curry Powders Company gives advertisement through different
media like, electronic media, print media, and wall paints etc.
Co-Brand
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The company market is produced under the brand name Promise. Co-Brand the
company market is product under the Co-Brand Name “Alia” especially for wheat powder.
EXPORTS
Exports of processed food have been identified as one of the thrust area for
augmentation of country's exports. India exports of processed foods also need expensive
diversification at present about 54% of the export reach the USSR and another 20% gulf
countries. The agricultural and processed food products export development authority
(AP£DA),proposes to setup exports complexes for fresh fruits and vegetables in Bombay,
Calcutta, New Delhi and Trivandrum processed food items currently exported, cover a wide
gamut of items, such as fruits and vegetables meat products and other miscellaneous item of
which , fruits and vegetables, is one of the important area offering scope for export
development the main constraints that inhabit export growth are the high fright and lack of
adequate air cargo space. The export strategy should take suitable measures to neutralize
them.
Today with the indigenous availability of a variety of raw materials, growth of
Agriculture in India coupled with the development of technology, machinery, and
equipment required which are mainly met indigenously a remarkable growth is foreseen.
The countries small scale industry based on food processing can now confidently
look forward to a very healthy growth because of the small capital investment, simple
process of production besides large employment potential. It cannot be denied that this wide
spectrum of item of food processing industries had changed the life of every Indian in some
way or others. Hence with maximum encouragement, the processing capacity will increase
by leaps and bounds.
Today a group of educated entrepreneurs are marching ahead with noble ideas and
ready to work hard. Basically those entrepreneurs are really frustrated by unemployment
even through they are properly trained and educated. They are searching a way to earn their
live hood the government and supporting department should definitely help them to
implement their project ideas.
Products marketing
Menma foods & curry powders marketing their products under the brand
name of Promise curry powders and is well accepted by the consumer's ion the market.
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Now this brand is having ovary strong dynamic and result oriented and target achieving
marketing using. The main competitors of Promise curry powders are Pooja curry powders,
Melam Masala and Saras curry powders. The main areas where the promise curry powders
are marketed on Trivandrum, Ernakulum, Idukki, Pathanamthitta districts.
More over he company can planned to meeting the delivery schedule at least 90% of orders
received in a period reducing customers complaints 10% every year. Increase the customers
base at least by 5% during the financial year 2008-2009.
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ORGANIZATIONAL CHART
ORGANIZATIONAL STRUCTURE
Manager
Supervisor
Company operator
Accountants
Machine operators
Sales representatives
Others
Manual workers
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Chart-2.1
Chapter-3
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GENERAL MANAGEMENT PRACTICES
GENERAL MANAGEMENT PRACTICES
The planning process:-
Analyses the external environment
Analyses the internal environment
Define the business mission
Set corporate objectives
Formulate strategies
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Make tactical plans
Build in procedure for monitoring and controlling
The decision –making process:-
The all decisions are taken by the top level management on the basis of daily
meeting and weekly meeting.
Information system Menma food Industres mainly used to MIS (management information system) .
other information systems are ;
Letters
Daily meeting
Weekly meeting
Through computer
Communication system Letters
Daily meeting
Weekly meeting
Through computer
Telephones
Inter office memo
Circulars
Display Board
Duties and responsibilities of the top level managers All the personnel have requisites authority to discharge responsibilities
indicated against their functions. Apart from the specific responsibilities mentioned all
personnel have organizational freedom to
Identify and record any problems related to product , process and QMS
(Quality Management System)
Initiate action to prevent the occurrence of any non –conformities related to
the product ,process and QMS.
Initiate ,recommend or provide solutions through designated channels.
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Verify the implementation of solution
Implementation and maintenance of QMS.
Top management consists of
Chairman
Vice chairman
Group Director project and operations
Group Director Manufacturing and Technical
Group Director Finance and Accounts
The Duties And Responsibilities and authorities of all the employees
communicated through job profiles.
1. Chairman
Formulating Quality Policy and objectives
Overall control of company and sustained growth
Chairing management review meetings
Financial decision
Providing Resources
2. Vice chairman
Approval of new project
Charging management review meeting in the absence of chairman
3. Group Director project and operations
In charge of all construction activities
In charge of all purchase activities
4. Director Manufacturing and Technical
Establishing and Maintaining QMS.
In charge of all manufacturing activities
In charge of all technical related activities
In charge of all HR related activities.
5. Group Director Finance and Accounts
Financial planning and accounting
Financial control and responsible for all audit related activities
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Corporate management representativeMr .Shefeeq Muhammed ,Group Director Manufactuiring and Technical has been appointed
as corporate M R by chairman ,who in addition to his other responsibilities acts as the chief
person to coordinate for the effective implementation and monitoring of QMS of the entire
group of companies .
Management representativeMr Nelson M paul, Assi . Manager Technical is appointed as management representative
who in addition to him other responsibilities ensure that all the requirements of quality
management system in accordance with the international standard ISO 9001:2008 are
established implemented and maintained . Following are responsibilities of management
representative .
Implementation of Quality policy and Quality objectives.
Organizing internal audit.
Control of Quality manual and Quality system
Chapter-4
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FUNCTIONAL DEPARTMENTS
DEPARTMENTS
Departmentalization is a method of arranging activities to facilitate the accomplishment of
organizational objectives. The organization process of determine how activities are to be grouped is
called department. The departments show the horizontal different of an organization.
The main departments are:
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HUMAN RESOURCE OR PERSONNEL DEPARTMENT
MARKETING & SALES DEPARTMENT
PRODUCTION DEPARTMENT
ACCOUNTING & FINANCE DEPARTMENT
PURCHASE DEPARTMENT
OTHER DEPARTMENTS
Under the General Manager we have: Purchase Manager, Production Manager, HR Manager,
Financial Manager and Marketing Manager.
1. HUMAN RESOURCE OR PERSONNEL DEPARTMENT (HR)
Managing Director
General Manager General Manager
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Chart-4.1
Functions of HR Department
To maintain good relationship between the employees
To look into the welfare of the employees
To maintain leave register
Attendance making
Overtime confirmation
It is the department that is connected to other departments in Menma food industries. This
department is headed by Joint General Manager. Under him Joint Chief Manager followed by Junior
Executive and Office Assistants. This department does the recruitment and selection of the personnel.
Another important function of the personnel department is to look into the welfare of its employees.
Time office comes under this department. The function of the time office is to maintain leave register,
attendance making, over time confirmation etc. The above data is forwarded to the accounts department
for accounting the wages of the employees.
Recruitment & Selection
Workers
The workers are selected through interview and physical test. Every worker is liable to be
transferred from one department to another and one job to another according to the experience of work
in the factory.
Office Staff
Chief Manager Chief Manager
Junior Manager Junior Manager
Office Assistance
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Recruitment of office staff is done through direct application . Selection is mainly based on written
test and interview. But it is also done according to the discretion of management. Selected persons will
have to undergo training, which is usually six months it is based on the working experience.
Managerial Level
Recruitment for managerial level is done through direct application . Selection is mainly based on
written test and interview. Selected persons will have to undergo training for more than one year.
Salary and Wages
Salary and wages paid to the employees are determined on an agreement between CMI and Trade
Union.
Leave Pattern
There are 14 days of casual leave and 12 days of sick leave. For non staff workers 18 days of
privilege leave are allowed and for Officers it is 30 days.
Working Conditions
Proper working conditions are maintained. Facilities like bathroom, toilets are provided at all
plants and in offices. Rest rooms and seating facilities are provide
Canteen
A fair price canteen is operating at the premises. The employees are given Rs 25 per day of
attendance as canteen allowance and maximum of Rs 750 per month.
Transportation
Free transportation facility is provided to employees for coming and returning after duty.
Transportation facility is also provided to the children of the employees for attending the educational
institutions in and around Kothamangalam.
Quarters Facility
A limited numbers of employees are provided with quarters with free electricity and water. Very
nominal rents are charged for them.
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LABOUR WELFARE FACILITIES IN MENMA FOOD INDUSTRIES LTD
Insurance Facilities
Menma food industries Ltd provides insurance facilities to its labours. Company mainly provides
two types of insurance facilities which are:-
Workmen compensation insurance policies
Medi- claim policies.
Factory labours include permanent workers and casual workers. Insurance facilities are mainly
provided to permanent workers.Two year medi-calim policies are taken for casual workers
In case of major accidents the company provides compensation to labours by way of taking
workmen compensation insurance policies.
Insurance Scheme
A labour is entitled for the insurance scheme up to Rs.50000/- for injury caused during employment.The
insurance scheme in case of death is amounted to Rs.100000/-
Canteen
The organization provides canteen facilities to all employees. Free food is given to every employee
every day. So 100% canteen facilities are provided by the company for the welfare of labours.
Ventilation
The factory has effective and suitable ventilation for the circulation of air and maintains a
temperature as will secure to workers there in reasonable condition of comfort and prevent injuries.
Medical Facilities
Company provides medical facilities to employees. First aid appliances are also maintained in the
factory. In the case of any minor accidents, hospital treatments are provided. Company takes medi-claim
policies for the protection of its employees. Provision of medical facilities protects the health of labours.
Accommodation
Company provides accommodation facilities to the employees. It is arranged near to this firm. It
helps the employees who are living in distant place. It is to be noticed that the accommodation facilities
are provided mainly to other state labours. But accommodation facilities are not in a good condition. To
solve this bad condition, a new building is to be established by the company.
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Wages and Incentives
Salaries are provided on the basis of number of days worked during a month. Factory wages are
calculated on the basis of number of hours worked. Working time of labours is 8 hours. So wages are
provided on the basis of working hours.
Production incentives are also offered to employees. A production target is fixed for providing
incentives. Incentives are provided to those employees who attain the production target. Production
target may different in different months. Incentive should be provided to an employee who works for 23
days without taking leave.
Benefits Provided for Women Workers
Company provides maternity benefits to regular women workers. Separate rest rooms and uniforms etc.
are also provided by the firm for the welfare of women workers
Rest Rooms
This firm also provides rest rooms for employees for takes rest. This room is
properly lighted and ventilated.
Rest Time
The rest time of workers is thirty minutes at the lunch time.
Drinking Water Facilities
The firm provides drinking water facilities to the employees. The effective arrangements shall be made
to provide and maintained the suitable water facilities to the employees.
Entertainment Programmes
The firm conducts entertainment programmes for the employees. The firm conducts Onam Celebration
programmes and other festival programmes in some year. .
Free Uniforms
Two types of uniforms are provided by the company to the workers. One is for working categories and
another one is for managerial staff. Navy blue is uniform color of working categories. Managerial staffs
wear grey color uniforms. Women wear churidar.
Washing and Bathing Facilities
Firm provides bathing facilities to labours. The firm issues bath soap and washing soap to the labours.
Latrine and Urinals
In this firm, there are separate latrines and urinals for male and female workers. It should be cleaned,
lightened and ventilated..
Leave Facilities
The firm allows 18 leaves per year for permanent workers. An employee is working for 20 days. He can
take one additional leave i.e. Privileged leave or earned leave. Accident leave is also provided.
Arranging Loans
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The firm arranges loans to its employees without charging any interest. The limit of interest free loan is
amounted to Rs. 10,000/-.
Provision of D.A, T.A, Etc.
This allowance is given to protect the real wages of workers during inflation. It is paid mainly to offset
the rise in prices. Traveling allowance is provided to employees to meet company requirements.
Provident Fund
Firm arrange provident funds for employees. Firm’s provident fund scheme is the contribution of 12%
of basic salary and dearness allowance for permanent workers and employees.
Gratuity Fund
The company is a member of group gratuity scheme of the Life Insurance Corporation of India. Annual
contributions are charged off to the revenue.
Holidays
Company allows leave to employees on public holidays. The important holidays allowed by the firm
are:-
Republic day
May day
Independence day
Gandhi Jayanti
Sivaratri
Good Friday
Thiruvonam
S.N.Guru jayanthi
Ramzan
Mahanavami
Deepavali
Bakrid
Christmas
Benefits to Casual Labours
The company provides monetary benefit to casual labours such as dearness allowances, shift
allowances, production allowances, production incentives overtime incentives and bonus.
Safety
The firm arranges various safety measures for labours. Safety inspections are conducted once in a
month. The inspection panel includes representatives from maintenance department and human resource
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department. The DMQC reviews the report and follow up action initiated. Safety conditions include the
following aspects:-
Display of safety instructions in prominent and relevant places in the plant
Providing dress glows, shoes and masks
Workers and operators give instructions regarding the importance of following safety
aspects.
Safety measures and inductions are provided in two reads
1. Educational safety and 2). Protection safety
Educational Safety:
a). Conducting special classes for safety
b). Arrange demonstrations for safety once in a year
c). Pre-induction training regarding safety regulation must be provided for new recruits
Work Environment
The management determines and manages the work environment needed for the conformity to the
product and to make employees to work in a good environment by adopting the following methods
a). Health aspects of workers and employees to ensure work environment
b). Cleaning of work places and machineries
c). Proper lighting
d). Facilities such as drinking water, urinal, latrine etc.
e). Safety conditions
Precautions
The firm undertakes precautionary measures for the protection and safety of employees. Fire
extinguishers of required class and type are provided by the company. Demonstrations are arranged
minimum once in a year to educate about the operation of different classes of fire extinguishers.
All machinery and equipments are insured and the company also takes medical and on the job
accident insurance.
Work schedule
The working time of the company is from 9.00 a.m. to 5.00 p.m. on working days. On Saturdays,
office time is till 1.00 p.m.
Employees Strength (As on 25.06.2011)
Total Employees = 124 male + 30 female = 154
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Department Managers = 5
Board of Directors = 8
Grand total = 167
RESPONSIBILITY OF HR MANAGER:
Manpower planning to meet company objective.
Searching and locating quality human resources.
Advertisement, Selection, Induction and Placement.
Job Analysis.
Developing suitable incentive plan.
Periodic evaluation of performance.
Maintenance of employee records.
All work related to ESI and PF.
All work related to employee insurance.
Employee welfare, accommodation and entertainment.
Housekeeping of factory, office and premises.
Maintenance of employee feedback system such as suggestion box.
Need assessment and preparing annual training plan.
2. MARKETING DEPARTMENT
MENMA FOOD INDUSTRIES PVT Limited has got a very good marketing department controlled
by efficient and dynamic marketing managers.Mr.M V John is the marketing manager of
MENMA .Marketing Manager Reports to General Manager and Managing Director. Marketing
Department is divided in two sections, such as marketing of finished goods and advertising and sales
37
promotion. Under each section assistant managers, marketing executives, sales executives and salesmen
are there to assist him
Functions of marketing department
Protect the interest of customers.
Tie-up with the dealers.
Monitoring of supply chain system.
Identify distributors.
Studying market fluctuations.
Maintain customer relationship.
Gather market information.
Study the conditions existing in competitive firms.
Through better and effective distribution of product, increase the availability and reduced cost
of distribution.
Objectives of marketing
The marketing department of aqua tech has put down the following as their objectives.
To provide guiding policies regarding market procedures and their implementation.
To analyze the shortcomings in the existing pattern of marketing.
To develop an intelligent application of modern marketing practices.
To study marketing problems according to circumstances and to suggest solutions.
General Manager (Marketing)
Sales Representatives
Chief Manager
Administration
Junior Executive
Marketing Manager
Sales Representatives
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Chart-4.2
The company markets its processed products ( Wheat powder, coriander powder, turmeric etc )
mainly through dealers. the company has a dealer network of more than 250 dealers spread all over
Kerala. Almost all MENMA products are available at the dealer shop. the products are transported to
the dealers by delivery vans. Sales executives take orders of different items from the dealers once in a
month.
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CO-ORDINATION OF MARKETING ACTIVITIES
The marketing executives in MENMA follow certain procedures. all sales executives have to
report to the assistant managers in sales every day .the assistant manager and marketing manager are in
constant touch with the sales executives who are in the field. The sales executives have to daily sales
report in all Monday’s. Meeting of allpersonnal in marketing department is presided by the general
manager. In this meeting all the activities and achievements are discussed. new plans and strategies to
increase the sales formulated and other issues are discussed.
MARKETING POLICY
The marketing policies of MENMA in such way that it does not entertain middleman. a direct
marketing approach and all the dealings are direct. there are no stockiest of whole salers.it can be seen
that MENMA by following this approach has a more favorable condition in the market situation .the
company is following a hierarchical channel of distribution
Company
Dealers
Consumers
CUSTOMERS
The company’s customers are average and above average income earners.
MARKETING DEPARTMENT OF MENMA FOOD INDUSTIES
The marketing department of MENMA is very efficient, it scans the environment ,analyses
marketing opportunities ,designs marketing strategy ,implementing and controlling marketing
functions .It employees direct marketing strategy, avoiding intermediates ,Menma enjoys large customer
in core markets especially in south Indian market, it has high demand.
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ADVERTISEMENT
The basic function of the advt is to influence and motivate people to buy a product .the main media
used by the company are television and print media .Apart from this advertisement are made through
hoardings ,wall paintings, banners ,metal boards, stickers and danglers. The company has special
advertisement, schemes, i.e. sponsoring entertainments like sports and festivals.
MARKETING FUNCTIONS
MENMA has a dealer network of more than 250 dealers who spread all over Kerala .It sales all
over Karnataka and Tamil Nadu.. Dealership are allotted only after assessing of credit worthiness
efficiency etc. Dealers obtain the products upon order over the van of company and products are
delivered either at go down or showroom.
ROLE OF MARKETING MANAGER
Monitoring of order taking and to ensure promote delivery
Occasional field visits to follow upon the sales executives
Direct enquires to be dealt
Attending marketing meetings chaired by the marketing manager and follow up of the
decisions taken
Maintenance of customer relationship
Marketing survey report analysis
Supply of products based on the order taken and handling collection of cash cheque ,
demand brand money etc. from dealers, outstanding collection etc.
MARKETING STRATEGY
Marketing department of MENMA is very vigilant of its environment and also very conscious of
market potential about their major competitors, company’s strategies, weakness etc... .as a result of stiff
competition the top management has appointed a general manager in the marketing and he looks over
all the activities very efficiently.
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Major competitors of MENMA are EASTERN, SARAS, MELAM, DOUBLE HOURSE etc.. and
they adopt various marketing strategies this companies also offer a wide variety of Packing and taste of
products which attract customers. their marginal price will be also high when they sell to their dealers
but in the case of MENMA the margin is very less.
Also the firm enjoys a good market owing to its quality even though it has a bit high pricing ,but
when compared to other companies poor quality products. its profitable. Profit margin of products is 15
-20%.MENMA also has technical competence, it has introduce new automatic grinding machine which
except eastern, no other manufactures introduced
MARKET SEGMENTATION
We know that customers preference vary with segments and different aspects. the marketing
segmentation procedure of MENMA mainly focuses on surveys. Marketing manager conducts survey
process. The staff of research and development department does this process, this includes informal
interview with a focus group of customers. This is done to gain a clear insight in their motivation,
attitude and behavior. Using their findings a researcher prepares a formal questionnaire which is
administered to a sample of customers to collect data on the following
Brand awareness and rating
Product usage and pattern
Demographic, psychographic details of respondents
MARKETING MIX
Marketing mix consist of everything a firm can do to influence demand for its products. MENMA
also follows the ideas of marketing mix, they are
PLACE MIX
Location of plant is one of the early decisions of entrepreneur has to make for earning maximum
profit. Location determines the survival as well as the prosperity of business in the free market
economy. the unit is located Manikkinar,Kothamangalam.the total extent of land is around 15000 square
feet .it is well connected with road. the availability of skilled and unskilled labor is also a factor in
selecting location
Nearest places
Railway station : 34 KM
Airport :Cochin (38 KM)
Town : 14 KM
Hospital :MBMM Hospital, ST Joseph Hospital (14 KM)
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PRODUCT MIX
The food products produced are the finest quality and it mostly used for various export
purpose .they provide curry powders in various quantity as per customer specification. The Menma
product is reputed for its quality and free from weaving defects up to greater extent. The special feature
is that raw material are passed through strict inspection.
PRICE MIX
The company maintains stable price for a long period of time. price of product depends on the
price of Raw materials .it maintain constant price and concentrates on quality of product and so it
requires less investment in advertisement and sales promotion and also very well formulated pricing
policy is provided.
PROMOTIONAL MIX
To promote its products advertisement are used in MENMA .the basic function of an advertisement
is to influence and motivate people to buy products in MENMA various advertisements agencies are
called upon and a brief idea is given about what to advertise and these agencies prepare a pre
demonstration .the marketing manager general manager ( marketing) and the general manager directly
analyze and select the best among them and entrust the agencies for covering their advertisements
plans.Menma chooses the following media:
Video ads :C.E.E videos,SAN videos
Closed circuit TV :K.S.R.T.C,Railway station
Print media :All dailies,Vanitha,Grihalakshmi,etc.
Demonstrarion and sponser events
Banner,metal board,wallpaper etc.
In addition,the customer get valuable information from company’s website.
FUNCTIONS OF ADVERTISING
Cheaper of pricing
Windening of the market
Reduction of distribution expenses
Promotion of social welfare.
MENMA-STAGES IN THE PRODUCT DEVELOPMENT PROCESS
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Idea research
Screening analysis
Product development
Market testing
Commercialization
MENMA-STAGES IN THE PRODUCT LIFE CYCLE
Introduction
Growth
Maturity
Decline
PRICING STRATEGEIS
Prestige pricing
Skimming pricing
Penetration pricing
Price lining
Dual pricing
MENMA –CHANNELS OF DISTRIBUTION
Distribution is the act of carrying goods or services from the producer to the customer
DISTRIBUTION OF CONSUMER GOODS
Producer consumer
Producer retailer consumer
Producer wholesaler Retailer Consumer
DISTRIBUTION OF INDUSTRIAL GOODS
Producer industrial user
Producer industrial distribution user
MARKETING SYSTEM
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Production
Dealer Showroom
customers
CRITERIA FOR SELECTING DEALERS
Usually not more than two dealers are appointed in a town .dealers are selected on their experience
in relating potential of particular town after selecting dealers a contract is entered between the dealers
and company the contract lays certain items and condition of dealership at the time of appointment. A
deposit of 2000 is accepted from him. The dealer is allowed 12% interest per annual of the deposit
received. The deposit decrese is payable on termination of dealership effort.
PRODUCT INNOVATION
Company takes its time to analyze its opportunities and prepare the best product and then compete itself
for the long run to make product a success.
All the products are marketed through a network of over 250 authorized dealers.
Marketing Activities
The industry has a well established marketing department. There is an efficient sales force which is
under the Marketing Manager. The whole system comes under the General Manager.
Marketing Distribution Channels
Company Wholesalers Retailer Customers
Sales Promotion
Menma industry has an advertisement budget of 5 lakhs per annum. Since the amount is too
small the company is advertising at low level. Other promotional activities include conducting dealers
meetings once in two years. In addition to these the company offers various incentive schemes for its
dealers according to their sales performance. Due to very low advertisement budget the company does
not engage in any large scale type of advertisement activities. The company occasionally engages in
advertisement through newspapers, magazines etc. The main modes of advertisement are displaying
boards which are positioned where they get maximum attention. They also use Asia net cable vision,
wall painting etc.
Competition
45
The company is facing tough competition from the companies like Eastern, Sevana, Nirapara,
,Melam,Saras etc. The major competitors are Eastern and Brahmins. The MENMA products give good
quality and more benefits to customers in a low cost compare to the competitors.
Procedure For Marketing And Distribution
The company has been carrying out production oriented strategy. With the entry of competition the
need for marketing oriented strategy is analyzed. The company was mainly depending on distributors in
various regions.
The company care about the availability of the products in the markets so the company provides
better transportation facilities for the product distributions. The company owned more than 30 vehicles
(delivery vans) they make the distribution is efficient in side Kerala. The products are exported to
Middle East countries like Dubai, Saudi, Qatar etc according to the demand.
3. PRODUCTION DEPARTMENT
46
Among all functional areas of management production is considered as a crucial in any industrial
organization like MENMA FOOD INDUSTRIES LTD. Production is the process by which raw material
and other inputs are converted in to finished product. In MENMA mainly the production of food
products take place under the production.
Production manager is the head of production department.Mr.M Ajith is the production
manager in MENMA FOOD INDUSTRIES LTD the production department or factories have an
installed capacity of grinders and generally 100% capacity is utilized for production. In addition to those
grinders, the company has recently installed 22 modern grinding machine. The advantages of these
machine over modern machine that they are, fully automated, more productive with quality goods at
reduced manpower. Modern grinding machines are operated by qualified and highly experienced
personnel. They hired from other operated by qualified and highly experienced personnel. Other
workers are trained to operate the modern machines under the experienced worker. The ordinary
grinding machines are also in the process of automation or modernisation,85% of the modernization
works is completed. The company also has a plant in Coimbatore The various reasons, which can be
attributed for the decrease in actual production that compared to the production capacity due to the
failure in supply and unexpected break down machines. To counter failure in the power supply , the
machines is having 11KV diesel generator station. To over come major as well as minor looms
breakdown there is a well- equipped maintenance department with experienced mechanical and
electrical engineers with all the required tools and other equipments. The maintenance mechanism
followed is preventive in nature. The company is undertaking production on job order basis. The
production department works in 8.00A.M.to4.00PM
General Manager (Operator)
JCM Production & Service
Dy. Manager (Kiln)
Junior Executive)
Machine Operators
Junior Manager
Charge Hands
Senior Machine Operator
Helpers
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Chart-4.3
PRODUCTION HEAD
Overall supervision and control of all the section in the production areas of MENMA and
to provide quality products in accordance with the requirements and to maintain high
productive standards .
Prescribing required quality control measures and implementing the same.
Planning, scheduling and co-ordinating work of different sections of the
department.
Raw materials indenting or scheduling and co-ordination with purchase department.
Implementing preventive maintenance system for all equipment and machineries installed.
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To control wastage to the minimum, both in finished goods as well as raw materials
consumption.
Production functions
In a manufacturing company the production function may be split into five sub-functions:
1. production and planning The department will set standards and targets for each section of the
production process. The quantity and quality of products coming off a production line will be closely
monitored. In businesses focusing on lean production, quality will be monitored by all employees at
every stage of production, rather than at the end as is the case for businesses using a quality control
approach.
2. Purchasing The department will be responsible for providing the materials, components and
equipment required to keep the production process running smoothly. A vital aspect of this role is
ensuring stocks arrive on time and to the right quality.
3. Stores The department will be responsible for stocking all the necessary tools, spares, raw materials
and equipment required to service the manufacturing process. Where sourcing is unreliable, buffer
stocks will need to be kept and the use of computerized stock control systems helps keep stocks at a
minimal but necessary level for production to continue unhindered.
4. Design and technical support the department will be responsible for researching new products or
modifications to existing ones, estimating costs for producing in different quantities and by using
different methods. It will also be responsible for the design and testing of new product processes and
product types, together with the development of prototypes through to the final product. The technical
support department may also be responsible for work study and suggestions as to how working practices
can be improved.
5. Works The department will be concerned with the manufacture of products. This will include the
maintenance of the production line and other necessary repairs. The works department may also have
responsibility for quality control and inspection.
A key aspect of modern production is ensuring quality. The term quality means fitness for purpose i.e. a
product, process or service should do exactly what is expected of it.
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HEALTH AND SAFETY POLICY
MENMA Limited, a leading manufacturer of condiments industry and committed to
protect employees by imparting training and providing personnel protective equipments where ever
necessary.
Protect equipments by incorporate built in safety system using modern engineering
technology.
Protect the environment by imparting necessary to training to the employees a monitory
and controlling the efficient discharge as per the stipulation laid down by Kerala state pollution control
board.
Maintain clean and safe working environment.
Aims for achieving a accident level by investigate and analyzing the accident and
implementing the recommendation suggested by prevent recurrence.
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3 FINANCIAL DEPARTMENT
Chart-4.4
The finance department maintains all the account’s of the various departments in an organization. It
is the duty of the finance department to receive money and make payments on behalf of the company. It
also prepares the annual budget according to which the expenses of the company are monitored. The
finance department is a vital part in an organization, as without finance the day to day activities of the
company will not function in a smooth and rapid way. It is the core of the organization. The cash section
and account section also forms part of finance department. The recording of day -to-day transactions
routine functions like sales tax, payments and receipts of cash, Cheque etc comes under the purview of
accounts section. The accounts section also undertakes the employee’s payroll function. The cash
section deals with the disbursement of cash.
The important managerial finance functions are:
Board of Directors Board of Directors
Managing Director Managing Director
Chief Manager Finance Chief Manager Finance
Assistant Manager Assistant Manager
Office Staff
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Investment decision: A firm’s investment decision involves capital expenditures. They referred as
capital budgeting decisions. A capital budgeting decision involves the allocation of capital commitment
of funds to long term assets that would yield benefits(cash inflow) in the future.
Financing decision: financing decision is the second important function which a financial manager
performs. He or she must decide when, where from and how to acquire funds to meet the firms
investment needs. The financial manager must strive to obtain the best financing mix or the optimum
capital structure for his firm. The mix of debt and equity is known as the firm’s capital structure.
Dividend Decision: A financial manager must decide whether firm should distribute all its profits
or retain them, or distribute a portion and retain the balance. The proportion of profits distributed as
dividends is called the dividend payout ratio and the retained portion of profits is known as the retention
ratio. A financial manager should consider the questions of dividend stability, bonus shares and cash
dividends in practice.
Liquidity decision: Investment in current assets affects the firm’s profitability and liquidity.
Current assets should be managed efficiently for safeguarding the firm against the risk of illiquidity.
Lack of liquidity in extreme situations can lead to the firm’s insolvency. A financial manager should
develop sound techniques of managing current assets. If a firm does not invest sufficient funds in
current assets, it may become illiquidity and risky.
In a broad sense, it is concerned with planning and controlling firm’s financial resources. The
finance department is headed by responsible executives; the finance director carries out these functions.
Financial statement analysis
The analysis of financial statement is the process of evaluating the relationship between component
parts of the financial statements to obtain a better understanding of the firm’s performance and position.
Financial statements are annual documents prepared by organizations for periodical review on the
progress by the management and deal with the status of investment in the organization and results
achieved during the period of under review. Financial statements are the financial periods of work done
during the accounting period say a year. Financial statement are prepared for the purpose of presenting a
periodical review or report by the management and deal with the state of investment in business. They
reflect a combination of recorded facts, accounting conventions and personal judgments. Only those
facts which are recorded in the business books are reflected in the financial statements.
The first task of financial analyst is to select the information relevant to the decision under
consideration from the total information contained the financial statements.
The second task is to arrange the information in a way to high light significant relationships.
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Functions of Finance Department
Financial forecasting and planning
Acquisition of funds
Investment of funds
Maintaining proper liquidity
Assigning the Chief Accounts officer and others
Accounting of all receipts and payments, cash at bank, sales etc.
Preparation of annual accounts and other periodical report and statements
Checking of wages and salaries
Regular payments of statutory dues like Provident Fund, Sales tax etc.
Furnishing necessary records relating to finance cash to Managing Director or Chief
Accounts Officer.
Financial Management is that specialized functions of general management which is related to the
procurement of finance and its effective initialization for the achievement of common goal of the
organization. It deals with each and every aspect of financial activity in the business. It includes
planning and control of financial resources. It is also concerned with finding out various sources for
raising capital for the firm. The source must be suitable and economical for the needs of the business.
The most appropriate use of such funds also forms a part of Financial Management.
Finance is indispensable to facilitate efficient and effective operation of business enterprise. In this
context, effective financial management holds key to success in today’s highly competitive world,
modern financial managers are assigned five roles:
Planning of funds
Raising of funds
Allocation of funds
Control of funds
There are mainly three sectors of finance department of MENMA FOOD INDUSTRIES. They are
1. Accounts Section
2. Finance Section
3. Cash Section
1. Accounts Section
The most important task done by accounts section is the recording of day to day accounts.
Routine accounting functions like sales tax payment, receipts and payment of cash; cheques etc. come
under the preview of the accounts section. The employee payroll function is also undertaken by the
accounts section of the finance department.
2.Finance Section
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Finance section is mainly concerned with the maintenance of accounts. The various financial
statements are kept in the computer as well as in the manual form.
3. Cash Section
The cash section is concerned with the disbursement of cash.
Duties Of Finance Department
i. Overall financial control
ii. Monitory decision making in consultation with Managing director
iii. Finalization of accounts
iv. Budget preparation
v. Control overall matters relating finance in the organization
The accounts and finance departments have to ensure that the salaries due to the employees are
paid in time. The department is also concerned with the preparation of budget and budgetary control of
the concern. The department has to ensure that all the entries are properly posted in the books of
accounts.
The main accounts that are kept by the accounts department:
i. Cash book
ii. General ledger
Scope Of Financial Management
It can be summarized as follows:
a) Estimating financial Requirements
The first task of a Finance Manager is to estimate short term and long term financial requirements
of his business. For this purpose, he will prepare a financial plan for the present as well as for the future.
The amount required for purchasing fixed assets as well as needs of funds for working capital have to be
ascertained. The estimations should be based on sound financial principles so that neither there are
inadequate nor excess funds with the concern. The inadequacy of funds will adversely affect the day to
day working of the concern whereas excess funds may tempt the management to indulge in extravagant
spending for speculative activities.
b) Deciding capital Structure
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Capital Structure refers to the kind and proportion of different securities for raising of funds. After
deciding about the quantum of funds required, it should be decided which type of securities should be
raised. It may be to arise finance through long term debts Even here if gestation period is longer, the
share capital may be most suitable. Long term funds should be employed to finance working capital.
Entirely depending upon over drafts and cash credits for meeting working capital needs may not be
suitable. A decision about various sources of fund should be linked to the cost of raising funds. If cost
of raising funds is very high, then such sources may not be useful for long. A decision about the kind of
securities to be employed and then proportion in which these should be used is an important decision
which influence the short term and long term financial planning of the enterprise.
c) Selection of Sources Of Finance
After preparing a capital structure, an appropriate source for finance is selected. Various sources
from which finance may be raised include share capital, debentures, financial institutions, commercial
banks, public deposits etc. If finances are needed for shorter period, then banks, public deposits and
financial institutions may be appropriate, on the other hand, if long term finances are required, and then
share capital and debentures may be useful. If the concern doesn’t want to tie down assets as securities,
then public deposits may be the suitable source. If the management doesn’t want to dilute ownership,
the debentures should be issued in preference to shares. The need, purpose, object and cost involved,
may be the factors influencing the selection of a suitable source of financing.
d) Selecting a Pattern Of Investment
When funds have been purchased, then decision about investment pattern is to be taken. The
selection of an investment pattern is related to use of funds. The funds with have to be spent first on
fixed assets and then an appropriate portion will be retained for working capital. While selecting a plant
& machinery, even different categories of them may be available. . The decision making techniques
such as capital budgeting, opportunity cost analysis etc. may be applied in making decision about capital
expenditures. While spending on various assets, the principles of safety, profitability and liquidity
should not be ignored. A balance should be struck even in these principles. One may not like to invest
on a project, which may be risky, even though there may be more profits.
e) Proper Cash Management
Cash management is also an important task of finance manager. He has to assess various needs of
the company at different times. He has to make arrangements for cash. Cash may be required a) to
purchase raw material b) to make payment to creditors c) to meet wage bills d) to meet day to day
expenses.
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The usual source of cash may be a) cash sales b) collection of debts c) short term arrangement with
banks etc. The cash management should be such that neither there is a shortage of it nor it is idle. Any
shortage of cash will damage the creditworthiness of the enterprise. The idle cash with the business will
mean that it is not properly used. Cash flow statement is regularly prepared so that one is able to find
out various sources and applications. All these information will help in efficient management of cash.
Income Statement or Profit and Loss Account:
It reveals the profit or loss arising from the operations of a business. It gives the results of
operations of a business and gives an idea about the progress of a business over a period of time. It
presents the summary of revenues, expenses, and net income or loss of a firm.
Balance Sheet:
It is the most significant financial statement. It indicates the financial condition or the state of
affairs of a business at a specific moment of time or a particular date.
Funds Flow Statement:
The fund flow statement analyses the causes of changes in the firm’s working capital position.
Working capital is the difference between current assets and current liabilities. Working capital
determines the liquidity position of the firm.
Cash Flow Statement:
The cash flow statement is prepared to analyze changes in the flow of cash only. A firm needs
sufficient cash to pay debts maturing in the near future, to pay interest and other expenses and to pay
dividend to shareholders.
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OTHER DEPARTMENTS
o PURCHASE DEPARTMENT
o GENERAL STORES
o MAINTENANCE DEPARTMENT
o ELECTRICAL DEPARTMENT
o QUALITY CONTROL DEPARTMENT
o TRANSPORTATION DEPARTMENT
o PACKING HOUSE
o TIME OFFICE
o SECURITY DEPARTMENT
Joint Chief Manager (Purchase)
Junior Manager (Purchase)
Junior Executive Officer
Office Assistants Office Assistants
General Manager (Operation)
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1, PURCHASE DEPARTMENT
Chart-4.5
Functions of Purchase Department in MENMA
Placing order
Inviting quotations
Correspondents
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To perform the functions effectively, the purchasing department has to follow the following
procedure.
a. Purchase Requisitions
The purchase officer does not initiate any action for purchasing of materials on his own record.
With the help of purchase requisitions, the purchase officer come to know the types of materials needed
by the organization. A purchase requisition is a from used as a formal request for the purchasing
department to purchase materials.
b. Exploring The Sources OF Supply & Selecting The Supplier
A source of supply of materials is to be selected after the receipt of purchase requisition. In
MENMA, the process of choosing the supplier is not a hard task. The store keeper generally mentions
the name of current suppliers, their price quotations and the purchase department also has a series of
good suppliers. Choosing the right supplier from the suppliers list involves a process of comparative
statement of purchases. It is a statement prepared by the purchase department.
c. Purchasing Order
After choosing the supplier, the purchase department prepares the order for the supply of stores.
The order is a written authorization to the supplier to supply the particular material or materials. It is the
evidence between the buyer and the supplier having the terms and conditions of the purchasing order.
d. Receiving & Inspecting Materials
In large concerns, a separate receipt & inspection department independent of stocking location
should be set up to receive and inspect the materials. But in small concerns, the work is done by the
store keeper. In MENMA, the stores department makes the general purchase only. When goods are
received in stores, the consuming department is informed and the personnel’s from this department
come to stores and inspect the quality, quantity etc.
e. Checking & Passing Bills Of Exchange
After checking, the bills are passed. Generally, the payment terms of MENMA are
Against invoice or acceptance of stock a minimum 15 days credit
In case of monopoly suppliers, they are sent or paid through banks.
Advantages of Purchase Department In MENMA
1. Because of centralized purchasing of materials, favorable terms like trade discount or economic
in transportation cost can be obtained, because quantity will be large.
2. The purchase department is staffed with highly paid officials who are experts in the art of
purchasing the material. Specialized knowledge and skill of these persons can be utilized.
3. All records with regard to purchase department is kept under the supervision of the purchase
officer.
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4. This department helps in achieving uniform purchasing policies, practices and procedures.
5. It avoids duplication of efforts and is helpful in achieving standardized products.
Vendor Selection
The MENMA has a main list of suppliers for all items it have to purchase. The company invites
tenders through advertisements in the newspapers. The suppliers give quotations and after a detailed
study of the concerned department, the supplier should be selected and the order is placing.
Vendor Rating
A vendor is rated according to his monopoly in the market, brand equity of the products, his
established dealings with other reputed organizations. There is a vendor evaluation committee which
evaluates the vendors. The committee consists of officers from concerning finance and material
departments. Vendor who is rated below 50% will be removed from the lists. Vendors rated between
50% & 75% are advised to improve their quality.
Vendor Re-evaluation Rating
The suppliers of raw material who are re-evaluated periodically by the company.
i Vendor supplying all raw materials for white cement and cement paint.
ii Packing material
iii Critical spares and machinery
POLLUTION CONTROL
The company does not have any pollutant products/bye products. In the addition to this ,the factory
and premises are cleaned in a regular basis.
2 . GENERAL STORES
Purchase Manager
Store keeper
Assistant store keeper
Helper
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Chart-4.6
Functions of General Stores Department
To store the raw materials for different departments
To prepare the purchase order
To prepare the stores records such as Bin card and Karade - X card
General stores is the department for storing the raw materials. The materials are collected as per the
order made by the department, which is known as purchase order.
Advantages of Centralized Stores In MENMA
Better control can be exercised over stores because all stores are housed in one
department.
Better layout of stores is possible.
Investment in stock is minimized.
Economy in cost.
Economy in staff and concentration of experts in one department will lead to development in
high technical skills.
Less botherisation in inventory checking as all the stores are located in one place.
Stores Records
The Bin card and Karade – X card are the two important stock records that are kept in MENMA
for making a record of various stores.
1. BIN CARD
A bin card makes a record of the receipts and issue of materials and is kept for each item in the
stores. Quantity of materials received are entered in the receipt column and the quantity of stocks issued
are recorded in the issue column of the bin card and the balance of the quantity of stock is taken after
every receipt or issue , so that the balance can be seen readily at any time. A bin card is usually hanged
up or placed in shelf, rack or bin where the materials have been kept.
Sweeper
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2. KARADE X - CARD
This card is used in MENMA by store keeper in addition to the bin card for storing the list of stock
of items. MENMA doesn’t maintain a stores ledger now, instead of this all the details are stored using
software in the computer. The existing system is a Foxpro based system.
3 . MAINTENANCE DEPARTMENT
The company has 1 workshop under the control of the mechanical maintenance department. All
machinery works and repairs are undertaken in the workshop.4 members are there in the workshop.
Mechanical section
All the mechanical works are undertaken by the mechanical section of the maintenance
department. The company has a workshop under the control of this department. Total number of
workers in the mechanical section is 10 . The rest include officers and other skilled workers.. There are
4 section of maintenance (workshop).
1. Welder - 1
2. Blacksmith - 1
3. Automobiles - 1
4. Lathe section -1
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Functions of Maintenance Department
Operation of electrical equipments & machineries
Maintenance of electrical equipments & machineries
Chart-4.7
Maintenance of equipments
Annual maintenance Preventive maintenance
Half yearly maintenance
Quarterly maintenance
Monthly maintenance
Fortnightly maintenance
Weekly maintenance
Daily maintenance
Hourly monitoring
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4 . ELECTRICAL DEPARTMENT
This department deal with all the works connected with the electrical equipment, power links and
other allied activities.
Consumption of electricity per day is 1300 units. The electricity bill in a month is Rs 85000 . If the
plant is not working or functioning the company has to pay Rs 30000. This is a fixed charge set by the
government. The total number of employees in the electrical maintenance section is 2. The main
activities undertaken in the electrical section of the maintenance department can be discussed as
follows:
The electrical section undertakes mainly three types of maintenance works .They are:
1. Break down maintenance.
2. Preventive maintenance.
3. Shut down maintenance.
1. Break down maintenance
In case of any break down of the machineries in the production departments information
regarding the break down is given to the maintenance department, and subsequently maintenance
workers are sent to the production department to solve the machine failures.
2. Preventive maintenance
Under this activity, a team of maintenance workers is sent directly to the production plant to
check out whether there is any failure in the machinery or not.
3. Shut down maintenance
When the plant is shut down, the employees in the production department sent a letter to the
maintenance department to solve failures.
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5 . QUALITY CONTROL DEPARTMENT
Chart-4.8
Production manager
Junior Manager (Quality
control)
Junior Manager (Lathe)
Junior executive (Lathe)
Junior Executives ( Lathe)
Assistant Chemist
Chief Gauger
Tester
Sample boy
Helpers
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Functions Of Quality Control Department
To test the quality of raw materials
To whether the product involves the right proportion of raw materials
To maintain the quality of the products
There are three levels of testing conducted in the laboratory. They are:
a) Raw Material Testing
Raw materials are tested for ensuring the quality of products even before manufacturing.
b) Process Testing
Process testing is done before the grinding of lime shell, sand and clay.
c) Intermediate Testing
In this testing, slurry is tested for finding out whether it contains right proportion of lime shell, sand
and clay. Then slurry is taken to kiln for burning.
6 . TRANSPORTATION DEPARTMENT
Chart-4.9
Chief Manager
Deputy Manager
Transport Controller
Charge hand
Fitter
Barge crew
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Functions Of Department
Staff conveyance Free transportation facilities are given to the staff to come to the office.
For the purpose the company has two buses of their own. It is available to workers in all
shifts.
Transportation facilities to employees’ childrenAs a welfare measure, free transportation
facilities are provided to employees’ children. For bringing them to the schools in and
around Manikkinar, this facility is available.
For providing goods to customers If a person purchases one of the products from the
company, free transportation facilities are provided for bringing the same and he will get it
at the premises of his house.
7 . PACKING HOUSE
Chart-4.10
Packing house in charge
Assistant in charge
Supervisor
Packer
Helpers
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8 . TIME OFFICE
Time Office comes under the personnel department. The main function of the office is to maintain
attendance register and calculate the monthly working hours of each employee. The company follows
punch card system for measuring attendance.
9 . SECURITY DEPARTMENT
The department is mainly concerned with the security and control of the company. There are 2
employees working in the security department on shift basis.
10 . MEDICAL DEPARTMENT
This department provides medical aid to both permanent and temporary employees. The
medical leave of the employees is recorded and sectioned from this department.
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Chapter-5
SWOT ANALYSIS
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SWOT ANALYSIS
STRENGTH.
Ability to meet huge requirements at any point of time.
Better internal control.
Highly experienced management team.
Skilled experienced and efficient workers.
Strict measurement for Quality control.
Better location for transportation.
Production process without causing harm to the environment.
Better working condition.
Suitable environment for processing.
Using good and quality rawmaterials.
WEAKNESS
Slump in market.
Government policies aganist the export.
High cost of materials.
Change in the habits and preferences of customers.
There is no proper communication between workers and management
OPPURTUNITIES
Exclusive changes in food industry.
Company has an oppurtunity to diversity their products.
Market expansion.
Globalised economy.
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THREATS
Stiff & severe competition from rivalries.
High cost of the product.
Lack of quality raw materials.
High labour cost.
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CONCLUSION
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CONCLUSION
The project study entitled “organizational study of MENMA INDUSTRIES LTD has given me
deep knowledge about the organization and the Curry powder industry.
The data with regard to the study collected from MENMA helps to understand the process of
production of products .each department in MENMA was analyzed in detail. Various processes are
controlled and monitored under the skilled supervision and skilled labours.
The study given information about the manufacturing products, organizational structure of the
company, departmental functions and gives a good knowledge about the financial position of the
company. The co-operation and interaction extent by the employees and management of the
MENMA have made it possible for the depth organizational study which would be of much used to
the research in the future.
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BIBLIOGRAPHY
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BIBLIOGRAPHY
BOOKS
Kothari C.R. “Research Methodology: Methods and Techniques”, New Age Publishers,
New Delhi, 2nd edition 2005.
Company Records and documents.
Philip Kotler “Marketing Management”, Prentice Hall of India Pvt. Ltd, New Delhi.
Pandey I.M. “Financial Management”, Vikas Publishing House Pvt. Ltd, New Delhi.
Company books and records.
WEBSITES
www.menmafoods.in
www.google.com
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