OS Report
OS Report
OS Report
Textile industry in India is the second largest employment generator after agriculture. It holds significant status in India as it provides one of the most fundamental necessities of the people. Textile industry was one of the earliest industries to come into existence in India and it accounts for more than 30% of the total exports. In fact Indian textile industry is the second largest in the world, second only to China. At Baird Mcnutt weave, dye and finish linen fabrics at their mills in Ireland and India. In all aspects of their operations they aim to bring to their customers the expertise learned through three generations of weaving the finest Irish linens. Leading fashion brands and high street stores worldwide uses their fabrics.
Study is mainly based upon the nature of the work carried out by each department.
The student can indulge in a fresh and novel approach to a problem which may not be the case the personal already employed in the firm as they already tend to have an intelligible platform on an issue.
The student shall get familiarized with the structure, systems, procedures and functioning of an organization.
a) To study in detail about the organization. b) To analyze the industry and company profile with an overview of the Strengths, Weaknesses, Opportunities and Threats of the company. c) To examine critically the organizational structure of the company. d) To acquire knowledge about the functioning of various departments. e) To acquire practical knowledge on an organization day to day working. f) To study the quality assurance procedures and techniques to know about the organization. g) To observe workers at their place of work and to interact with them. h) To analyze the management of an organization. i) To interact with the managers at various levels and to understand their responsibilities and routine activities. j) To identify internal and external factors that affect Strengths, Weaknesses, Opportunities, and Threats to activities or operations
1.3 Methodology
For getting complete information of this organization study both primary as well as secondary data collection method were used. SOURCES OF DATA: The main sources of data are primary and secondary data.
PRIMARY DATA: The main and serious information is that what I have stated in this study by taken by primary data collection method. The methods used were: Personal interview with various department heads. 3
SECONDARY DATA: Some kind of information like companies infant stage, financial reports, previous data of sales and profit of the company are the sources of secondary. The main secondary sources are:
Company annual reports. Company records. Company magazine. Auditors report. Company website.
1.4Limitations
Time was a major limiting factor. Secondary data available from company manuals were outdated (the manuals are being updated). Lack of co-operation from certain departments due to their work load.
Textile industry is unique in the terms that it is an independent industry, from the basic requirement of raw materials to the final products, with huge value addition at every stage of processing. Textile industry in India has vast potential for creation of employment opportunities in the agricultural, industrial, organized and decentralized sectors & rural and urban areas, particularly for women. Indian textile industry is constituted of the following segments: Readymade Garments, Cotton Textiles including Handlooms, Man-made Textiles, Woolen Textiles, Handicrafts and Jute.
The textile industry in India is one of the largest segments of the Indian economy accounting for one fifth of the country's industrial production. The sector employs around 15 million people and earns a lot of foreign exchange through this industry.
Table and kitchen linen are broadly an important section of the home furnishing industry that falls under the preview of the textile industry. Manufacturers and exporters in this industry offer a spectacular range of table and kitchen linens including table cloth, towels, napkins, table mats, aprons, mittens, etc.
India is one of the major suppliers of kitchen linens in the world market. Export of handmade cotton table and kitchen linens and other cotton furnishings accounts for a major section of export.
A forerunner in international markets, the Textile Industry in India is widely acclaimed and acknowledged for its superb quality textiles. Total textile exports during April-March 1998-99 were to the tune of US $ 12533.1 million (RS.52720.78 crores). April 2000 to December 2000 has seen a remarkable increase in total exports of textiles at US$9735.2 million (RS.440179.4 million). The main markets for Indian textiles are USA, UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh and Japan.
Till the year 1985, development of textile sector in India took place in terms of general policies. In 1985, for the first time the importance of textile sector was recognized and a separate policy 6
statement was announced with regard to development of textile sector. In the year 2000, National Textile Policy was announced. Its main objective was : to provide cloth of acceptable quality at reasonable prices for the vast majority of the population of the country, to increasingly
contribute to the provision of sustainable employment and the economic growth of the nation; and to complete with confidence for an increasing share of the global market. The policy also aimed at achieving the target of textile and apparel exports of US$ 50 billion by 2012 of which the share of garments will be US$ 25 billion.
Indian textile industry is largely depends upon the textile manufacturing and export. It also plays a major role in the economy of the country. India earns about 27% of its total foreign exchange through textile exports. Further the textile industry of India also contributes nearly 14% of the total industrial production of the country. It also contributes around 3% of the GDP of the country. Indian textile industry is also the largest in the country in terms of employment generation. It not only generates job in its own industry, but also opens up scopes for the other ancillary sectors. India textile industry currently generates employment to more than 35 million people. It is also estimated that, the industry will generate more than 12 million new jobs by the year 2012.
Indian textile industry is one of the leading in the world. Currently it is estimated to be around US$ 52 billion and is also projected to be around US$ 115 billion by the year 2013. The current domestic market of textile in India is expected to be increased to US$ 60 billion at the end of 2012. The textile export of the country was around US$ 19.14 billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-08. The share of exports is also expected to increase from 4% to 7% within 2012. Following are the area, production and productivity of cotton in India during the last six decades. Though during the year 2008-09, the industry had to face adverse agro-climatic conditions, it succeeded in producing 290 lakh bales of cotton comparing to 315 lakh bales last year, yet managed to retain its position as worlds second largest cotton producer. Earliest linen industry The earliest records of an established linen industry are 4,000 years old, from Egypt. The earliest written documentation of a linen industry comes from the Linear B tablets of Pylos, Greece, 7
where linen is depicted as an ideogram and also written as "li-no" (Greek: , linon), and the female linen workers are cataloged as "li-ne-ya" (, lineia). Flax has been cultivated for its remarkable fiber, linen, for at least five millennia. The spinning and weaving of linen is depicted on wall paintings of ancient Egypt. As early as 3,000 B.C., the fiber was processed into fine white fabric (540 threads to the incliner than anything woven today) and wrapped around the mummies of the ancient Egyptian pharaohs. Mentioned several times in the Bible, it has been used as a cool, comfortable fiber in the Middle East for centuries as well. Ancient Greeks and Romans greatly valued it as a commodity. Finnish traders are believed to have introduced flax to Northern Europe where it has been under cultivation for centuries. Both wool and linen were tremendously important fibers in the New World. Relatively easy to grow, American settlers were urged to plant a small plot of flax as early as the seventeenth century. While flax is easy to grow, settlers knew all too well the tedious chore of processing the woody stalks for its supple linen. Before the industrial revolution much sturdy, homemade clothing was woven from linen cultivated, processed, spun, dyed, woven, and sewn by hand. It may be argued that until the eighteenth century, linen was the most important textile in the world. By the late eighteenth century, cotton became the fiber that was most easily and inexpensively processed and woven in the mechanized British and New England textile mills. By the 1850s, linen production had virtually been abandoned in the United States because it was so much cheaper to buy the factory-made cotton. Some New Englanders of Scot or Irish background continued to cultivate some flax for processing into linen used for fancy domestic linens such as bed sheets, toweling, and decorative tablecloths as their ancestors had for centuries. However, most Americans abandoned the cultivation of the plant in this country and instead chose cheap cotton that was carded, spun, woven, and roller-printed for just pennies a yard. Thereafter and until recently, a different variety of flax plant was raised in this country not for its linen fibers but for its seeds which exude a useful vegetable oil known as linseed oil when pressed.
The Phoenicians, who, with their merchant fleet, opened up new channels of commerce to the peoples of the Mediterranean, besides developing the tin mines of Cornwall, introduced flax growing and the making of linen into Ireland before the common era, but it is not until the twelfth century that we can find records of a definite attempt to systematize flax production. When the Edict of Nantes was revoked, in 1685, many of the Huguenots who had to flee France settled in the British Isles, and amongst them was Louis Crommelin, who was born, and brought up as a weaver of fine linen, in the town of Cambria. He fled to Ulster, and eventually settled down in the small town of Lisbon, about ten miles from Belfast. Belfast itself is perhaps the most famous linen producing center throughout history, during the Victorian era the majority of the world's linen was produced in the city which gained it the name Linen polis. During the late war Cambria became well known as one of the centers of the most desperate fighting. The name "cambric" is derived from this town. Although the linen industry was already established in Ulster, Louis Crommelin found scope for improvement in weaving, and his efforts were so successful that he was appointed by the Government to develop the industry over a much wider range than the small confines of Lisburn and its surroundings. The direct result of his good work was the establishment, under statute, of the Board of Trustees of the Linen Manufacturers of Ireland in the year 1711. Outlook for Indian textile industry
The outlook for textile industry in India is very optimistic. It is expected that Indian textile industry would continue to grow at an impressive rate. Textile industry is being modernized by an exclusive scheme, which has set aside $5 billion for investment in improvisation of machinery. India can also grab opportunities in the export market. The textile industry is anticipated to generate 12 million new jobs in various sectors.
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The company is a wholly owned subsidiary of William Frederic Burgoyne BAIRD & Company Ltd, Northern Ireland, U.K. The parent organization which is well known by its brand name Baird Mcnutt, is privately owned business founded in 1912 as a specially manufacture of linen blend apparel fabrics. Baird is the largest producer of Irish linen fabric in Europe. Baird Mcnutt is a vertical manufacture and controls the complete production from flax fiber to finished garments. Baird Mcnutt is the combination of Baird who deals with leading finished work and Mcnutt who offers design services.
The parent company Baird Mcnutt is a privately owned company who not only manufactures linen but also produces world class linen yarn for weaving, knitting and industrial purposes out of finest quality of west European flax. Baird Mcnutt spin, weave, dye and finish for international fashion market by bringing the enterprise learned through three generations of weaving the Irish linen fabric. All major international garment makers find a place in its client. The function of the parent company is to cultivate the flax plant.
Manufacturing facilities are located at Downing, Ireland, Kells, Northern Ireland, Estonia, Bulkow, Poland and in India, Delhi and Kochi with marketing offices in U.S.A, U.K, Germany and France. Hence Baird is surviving as a independent leader in producing 100% linen Fabrics.
WFB Baird is a vertically integrated textile processing unit whose main functions is to process the raw material, by separating the fiber for weaving purpose and dyeing the linen fiber for market purposes. The raw material is supplied from the parent organization. This processing unit is situated in Cochin Special Economic Zone (CSEZ) where only weaving and dying of linen fabric takes place.
WFB Baird is a textile processing unit having world class in house facilities in manufacturing 100% pure linen, cotton linen, yarn dyed, natural fabric and bed spreads. With a clear vision, sense of purpose and sheer hard work guided by a team of professionals and steered by an enterprising management, WFB Baird continues to diversify its products and extend its customer reach. 11
It was found in the year 2005, it has grown consistently and today reached US$250 million and with a new capacity additions. Baird is planning to reach more than US$700 million by the end of 2012. Baird Mcnutt decided to add the state of art weaving and processing and finishing capacity of 45000 meters per day, out of which 20,000 meters piece dyed and balance 25000 meters yarn dyed and natural fabric can be processed with the help of state of art machines. All actions are oriented towards offerings complete solutions to customers. It also has the state of art backup facilities for quality assurance & color management including Mathis pilot plant which enables it to get the firsttime right in dyeing. The unit boasts of state-of the art facilities in the process and Quality Assurance Laboratories.
The Kochi unit has the capacity process six to nine yards of fabric. Linen yarn for the unit will be sourced from Estonia and cotton within the country. The Cochin facility manufacturers linen and linen blend fabrics for export to the global customers like GAP, Marls & Spencers, Levis, J Jiu, French collection etc. They offer their clients a mesmerizing range of linen fabrics, which are offered in variety of colors, designs and patterns. Designed in compliance with the contemporary trends, these fabrics are quality tested for thickness of fabrics and stitch durability before being dispatched at clients end. They also hold an expertise in custom designing and the range as per the specifications and requirements of their clients.
Stages of growth: The family biz of Baird was established in the year 1912. It was equipped with 400 Atherton Looms, which had been modified from the cotton trade. The factory mainly manufactured piece goods for the hand kerchief trade in USA, where the largest market at that time. The company survived depression of the late 1960s to change hand kerchief production to apparel production. 12
Gradually they started their processing units (Dyeing and Weaving) in many parts of the world including India in order to popularize the use of linen.
They started their first venture in Asia in the year 2005 in Kochi at the Cochin Special Economic Zone (CSEZ) where both processing and exporting is done.
Product Portfolio
Linen cloth Table linen Kitchen linen Table mat Kitchen apron Disposable hand towels Luxury towels Pool towel Printed towels Towel hook Striped kitchen towels
Some useful information about linen fabrics High moisture absorption capacity. Highly comfortable for all weather conditions. Protect skin from harmful UV rays. 13
Natural anti - bacterial health fabrics. Skin friendly. Durable and wear - resistant. Naturally anti - static, dust repellant. Naturally anti bed sore. Pure linen influences lowering of muscle tensions. Soft texture enhances body comfort. Retains the creases and wrinkles due to the individual body movements of the wearer. Wrinkles of linen have its own way of expressions. Eco friendly fabric.
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Corporate mission:
To function as a dependable and globally competitive producer of fabrics and other allied products and seeks to make its presence felt globally as reliable suppliers of top quality linen fabrics and garments for chosen market segments.
The main aim of the organization is to ensure total customer satisfaction through a thrust on quality, rapid modernization and expansion. Baird wishes to build its reputation as a caring organization, utilizing all its resources through team work and continues emphasis on human resource development, knowledge, integration, system perfection and research and R&D. Hence the organization is dedicated to achieve excellence in all spheres of management.
Vision of Baird:
To emerge as a leading company in the business by providing quality outputs. The main aim is to popularize linen fabrics and use in India. Another vision is to make available the fabrics to retail outlets as much as possible and to be a premium conglomerate with a clear business focus at each business level.
Financial performance
As a processing unit Baird is completing its seventh year doing fairly well as well as the clients and the people associated with them are also growing.
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Corporate goals
To focus on cost reduction and technology up gradation in order to become competitive in each line of business. To constantly innovate it in new business lines, where profit can be made on sustainable basis over the long term. To compete through speed, ability and flexibility in recognizing and capturing opportunities in existing markets. To invest sufficiently to stay in the game but avoid premature commitments.
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Maximize recovery of waste energy. Conducting regular management reviews to ensure continual improvement.
Quality policy
They are committed to enhance customer satisfaction by providing goods and services complying with continually improving improving quality management system. Baird strives to provide quality of the highest standard to the satisfaction of the customer. Quality management to the Baird combines fundamental management techniques, innovative improvement efforts and specialized technical skills to continuously improve manufacturing processes. The company strives for continues growth and development through customer satisfaction, teamwork, honesty and integrity.
Eco preserve
Baird is well aware of the responsibility that manufacturing industries bears towards environment. Conserving the resources of environment from pollution and preserving healthy living conditions are important concerns at Baird. Bairds commitment is to sustain the toxic free environment observing statutory stipulation and legal regulation. Baird believes in pollution prevention rather than pollution control. Their activities comprise awareness programs among the employees, customers, contractors and all those who are associated with them. Their endeavor is to minimize hazardous emission of waste and to reduce the impact of the manufacturing activities. Baird aims to achieve zero effluent discharge by the end of this year.
Maintain and continually improve our quality, environmental, occupational, health & safety and social performance by setting appropriate objectives and targets and reviewing them.
Conserve input resources like water, power and fiber and minimize associated risks through proactive measures, adoption of best quality practices including pollution prevention and active improvement of all personnel at different level and functions.
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ORGANIZATIONAL STRUCTURE
(PTO)
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STRUCTURE
MANAGER (SALES)
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1. SALES SECTION
Sales accounting deals with: Accountability for selling and distribution of products and by products. Accountability to take order and distribute to the retail outlets. Recording the transaction. Transfer of information from depots to head office. Compilation of reports.
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Classification of the cost: Variable cost:- This includes raw materials that is yarn, intermediate products, consumable products, packing materials, pollution control expenses. Fixed cost:- Fixed cost of a product mainly consists of conversion cost of salaries and wages (direct, indirect, administration and maintenance ), staff welfare expenses, insurance, plant maintenances, depreciation, factory overheads, administrative overheads, head office overheads, gratuity and bonus, interest on term loans and working capital.
MIS
To provide the management with vital facts which affects the efficient running of the business for the decision making on planning, organizing and controlling the major activities of the organization and initiating suitable action. MIS briefly consist of: a. Divisional reports. b. Profit and loss account and its analysis. c. Production performance of the division. d. Inventory position. e. Cost of production actual and budget for the month. f. Specific information important for the management major projects, man hour utilization etc.
Budgeting
Two types of budget revenue and capital budget. Two types of estimates budget estimate and revised estimate.
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Revenue budget:-
Every year early in august detailed production targets and norms for consumption of raw materials for remaining portion of current year and also for the next financial year are prepared by head of divisions.
Capital expenditure:Show all items of capital expenditure to be undertaken during the budget period like expense on acquisition of new assets like machinery, furniture and office equipment which have reasonable life; expansion of existing facilities and modification & improvements to plant and machinery resulting in: a. Increase in capacity b. Increase in useful life c. Improvement in quality of output d. Reduction in cost of output is treated as capital expentiture
Budget revision:While preparing the next years revenue budget, the revenue budget for the
current year is revised, based on the actual from April to September and anticipated trend for the remaining period. On closing of the accounts of the months a monthly profit and loss account is prepared for each division and same is send it to the dividend head.
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Payroll section
Function of this section is: a. Preparation and disbursement of salaries and wages to managerial and non managerial employees. b. Effect on various recoveries through payroll. c. Processing of various personal payments in advances. d. Keeps books of account for the above transaction.
All revenues, costs, assets and liabilities are on the accrual basis, except customs duty claims and insurance claims. Sale excludes excise duty and sales tax. Inventories valuation a. Stock in trade: finished linen fabrics material at work cost or net realizable value which never is lower. By products are valued at net sales realization during the year. b. Raw material: yarn, colored dyes, acid dye, packaging materials, fuel oil, stores and spares are valued at weighted average cost. c. Tools and equipment are shown at revalued cost.
All fixed assets are carried at cost less depreciation. Depreciation a. For plant and machinery depreciation is calculated on straight line basis specified in schedule XIV to the companies act. b. For buildings, service equipment, furniture, fixtures, office equipments, electrical installation etc, depreciation is calculated on Written down value method (WDV) basis at the rates specified in the act.
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OBJECTI VES
Production planning. Co-ordination of production function. Co-ordination with maintenance department.
STRUCTURE
PRODUCTION DEPARTMENT
MATERIALS DEPARTMENT
WEAVING DEPARTMENT
SAMPLING DEPARTMENT 28
Production process
Annual production targets for the next year are prepared on installed production capacity of the plant and production data for the previous year. Necessary feedback is also taken from marketing department while fixing the production targets. The production target thus fixed and presented to the corporate office for review and approved by CMD and plants manager are informed of the same. The production and the control ratio for the previous years are duly considered. All the data are compiled to the production budget. A copy of the production budget is send to the finance department for preparing finance budget based on the production plan; purchase department initiates action for procuring raw materials.
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Plants at baird
For weaving the yarn plants used are: Automated looms. Chinese tapier looms. Vacuum steaming auto clave. Lab for sophisticated machines. For dyeing the yarns machineries are imported from Germany. The dye house or dye kitchen includes plants like: Yarn conditioning plant. Yarn vacuum steaming. Vertical dyeing machine. Tabular dyeing machine. Space dyeing machine.
Products
Linen fabric or natural fabric for garmenting purpose used for both apparels and for industrial purpose. Cotton linen fabrics. Dyed or colored linen fabrics. Bed spreads.
Optimization of production
The company is making all efforts to optimize production and reduce losses. Steps are being taken to enhance the procurement of yarn as well as now recently market demands for pre dyed yarn made product.
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The year 2008 has witnessed an acute shortage of raw materials affecting industries badly. The raw materials yarn is spun from long fibers found just behind the bark in the multi-layer stem of the flax plant, through flax plant is not difficult to grow, and is grown only in few countries. The yarn plant needs cool, humid climate and within moist, well plowed soil to grow. Due to unfavorable climate there was a considerable reduction in the production of flax plant which resulted in the production of tarn fiber.
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STRUCTURE
GENERAL MANAGER
ASSISTANT MANAGER
ELECTRICIANS
FITTERS
BOILER SUPERVISOR
The engineering department has been divided into four departments 1. Electrical department 2. Mechanical department 3. Instrumentation department 4. Civil department
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I.
ELECTRICAL DEPARTMENT
There are two functions for this department a. Operations b. Maintenance
A. OPERATIONS:
Electrical supply is received from Kerala State Electricity Board [KSEB] through substations. DC (direct current) is needed for the plant and machines operations and AC (alternating current) is converted into DC. AC is used for auxiliary purpose. The following are the functions of the operational section, Ensuring uninterrupted power supply. Man management.
B. MAINTENANCE:
This section is headed by a chief engineer. In planning and implementing on engineering works the section also provides assistance to project development of new project.
a. Electrical maintenance. b. Electrical utility: Air conditioner maintenance, plant lighting, motor for pumping water. c. High tension: maintenance of high tension equipment.
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II.
MECHANICAL DEPARTMENT
Mechanical section found to be backbone of Baird. All type of manual maintenance is handled by this section and look forward to maintain the best possible manner and ensure healthy and sound flow works within the organization.
III.
INSTRUMENTATION DEPARTMENT
Instrumentation department is a section that comes under engineering department. The main functions of instrumentation department are:
Plant processing operation and control of plant and equipment. Keeping record for it. The maintenance or up keep of equipments.
IV.
CIVIL DEPARTMENT
Civil section is an independent department is headed by chief engineer. The main role of this section is the construction of the building and other premises of the company. It is also engaged with the social task to ensure the smooth flow of industrial activities.
Maintenance of the existing building. Painting and insulation. Tender issue for civil works.
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4. MATERIALS DEPARTMENT
Material is an important factor of production, material department of Baird plays an important role in reducing cost and increasing the profit going with the technical changes. Baird has a computerized purchases inventory control system.
OBJECTI VES
To control and account for the materials in the organization. To ensure the availability of materials and its quality.
STRUCTURE
ASSISTANT MANAGER
OFFICERS
HELPERS
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A. Purchase department
The purchase procedure covers the following areas of procurement of goods and services of the company. Capital items. Equipment and spares. Raw materials and intermediary materials. Package items involving design, supply and erection. Purchase department is again divided into: a. Raw materials section. b. Equipment spares and suppliers.
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FUNCTIONS Importing raw materials under the approval of safe purchase committee by the board of directors. Procurement of materials needed for production. Determination of quantity of materials required. Issue of purchase order. Pre and post purchase order. Insurance. Payment. The main raw materials for producing linen fabrics is yarn and colors for dyeing the yarn, pre dyed yarn which is imported from China and European countries.
INVENTORY CONTROL
Inventory control is an essential function of the stores department. It helps to reduce cost and increase profit of organization. For controlling the inventory, certain levels of inventory such as maximum, minimum and reorder level is prepared. When the stock reaches the reorder level, purchase request is made.
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FUNCTIONS
Receiving Holding Inventory control Issuing Disposal
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Check whether the material is real. Inspection may be carried out by Baird or the third party inspection agencies. Department is authorized for the inspection, receives the dispatch document.
X-Y-Z ANALYSIS
This analysis is done on the basis of stock in hand at the end of the financial year. 80% value of the total inventory is labeled as X, 15% value of total inventory as Y, 5% value of total as Z.
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STRUCTURE
MANAGERS
OFFICERS
OPERATORS
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1. Baird has established a common effluent plant which is run by Cochin Special Economic Zone (CSEZ). This plant is run by CSEZ and they treat it by discharging the waste according to the norms and guidelines specified by Kerala state pollution control board.
It is a sophisticated effluent treatment plant with the most modern D.A.F, Floculater, together with a highly efficient microbiological treatment, which fully satisfies the environment protection norms of the land and discharges the waste without causing any issue to the land. 42
2. Before discharging the waste some interim treatment is also made. 3. In addition, the working environment is kept clean within suction devices in all machines, and with constant circulation of fresh air.
The company continuous to give top priority to pollution control activities. It has already invested lot of money especially for setting up pollution control plant. As a commitment to humanity, the company has taken all necessary safeguards to prevent water and atmospheric pollution caused by effluent liquid and goes thrown out from the factory. The company could maintain all effluent parameters within limits as prescribed by the statutory authority. Treated effluent plants confirm to the Kerala state pollution control board are followed in the disposal of all hazardous wastes generated.
Recently Baird has done research on enzyme treatment on fabrics to make them evenly smoother and softer. Baird maintains two labs:
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Quality assurance lab Quality control cell has been set up in R & D centre, for efficient monitoring of quality of fabric products at the dispatch and selling points.
Process lab Process lab is the place where innovations on new way of processing and techniques take place while is done by a group of well versed persons having knowledge in this field.
Baird has also got a small section for sampling and also got a dye lab. Sampling section is a place where new market trends samples are researched that matches with the customer requirement. Dye lab tests the color contrast that is to be given to the fabric. Normally linen fabrics natural color is off white, brown but according to need linen is being dyed. The yarn after weaved is again washed to give colors. The dyes used are fiber reactive and acid.
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STRUCTURE
ASSISTANT GENERAL MANAGER
MANAGER
DEPUTY MANAGER
ASSISTANT MANAGER
OFFICERS
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\FUNCTIONS
Preparatory process Dyeing Finishing
fabric is fed into the washers and to the neutralizer. Finally the fabric is squeezed well and passes through the dyeing cylinders. MERCERIZING: Mercerizing is the treatment of fabric with high concentrated caustic soda solution, under tension at room temperature. Here chainless paddles clip mercerized is used. To increase the luster absorbing capacity and dye ability of the linen cotton blend the cloth must be mercerize with high concentrated caustic. The stretching is done in weft way direction to the required dimensions. Now the caustic present in the fabric will be removed by the help of suckers. Finally the fabric is dried with the help of drying cylinders and then plaited in trolleys. DYEING: Application of color uniformly into the textile material is called as dyeing. There are different types of dyes are available. In this company there are two types of dyes are used, VAT DYES- these dyes are insoluble in water. Vat dyes are very costly dyes. It is mainly used for light and medium colors. REACTIVE DYES- these dyes are soluble in water. These are marketed under different trade names.
FINISHING: Finishing is to improve the attractiveness and durability of the fabric or to impart certain desirable properties to the fabric. It improves feel depends on the handle of fabric and its softness and to improve the wearing qualities. It also increases the value of the fabric.
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OBJECTIVE
To distinct set of yarns or threads called the warp and the filling (weft) are interlaced to form a fabric cloth.
STRUCTURE
MANAGER
DEPUTY MANAGER
JUNIOR MANAGER
OFFICERS
JUNIOR OFFICERS
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FUNCTIONS
Drawing Denting Gating Knotting
Denting is the process of passing the warp ends through the reeds with the help of denter. Two workers are working in denting. Maximum number of ends in a dent is 6 ends and the minimum number is one end.
Gating is the process of fixing the drawing heads and dented reeds into the looms. The time taken for gating is 5-6 hours. Three workers are in gating per shift.
Knotting is the process of knot the ends of new warp beams with the old warp ends present in the loom, the total time taken for the knotting in 2-3 hours.
After knotting and gating the warp stop motion is activated by the help of droppers and dropper bars. 30 minutes may take for the activation of warp stop motion.
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STRUCTURE
OFFICERS
OPERATORS
FUNCTIONS
Create new styles and designs in linen fabrics. Develop the new designs.
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OBJECTIVES
Monitoring of sales and distribution. Study and respond adequately to the information from market research department and from field establishment.
STRUCTURE
MERCHANDISERS
SALES ASSISTANTS 52
Marketing department consist of various sub department on the basis of their function. They are: Sales department Distribution department
SALES DEPARTMENT
The sales department is headed by a chief manager. He is responsible for sales coordination of function across various depots, conduct on effective market research for analyzing market and calculating the demand and finally promotes the sales of Baird products. Baird is adopting a marketing strategy according to product nature, market situation, demand of product etc.
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MAIN PRODUCTS
Linen fabric/ natural fabric Cotton linen fabric Dyed or colored linen fabric Bed spreads Bath linen Kitchen linen
SALES NETWORK
The products in Baird in are mostly sold through a variety of channels. These include: Sales through exclusive company owned retail outlets. Baird has a retail space in various malls for show casing their products and maximizing sales. Outright sales to retailers. Operating through franchisee arrangement. This arrangement is made in order to popularize the brand within the country.
a. Mass communication techniques This method involves catering to a large number of people in the shortest time possible advertisement are done through exhibition, radio jingles, hoarding, posters, wall painting, direct mail service, advertisement etc. b. Personal method As the name implies, in this method more personal and closer contact with customer are developed through promotional methods. The methods are adopted by Baird through demonstration, block demonstrations, seminar, study classes, co-operative training programs, dealer training, squad programs etc.
DISTRIBUTION DEPARTMENT
Physical distribution of products is a meaningful function of the marketing division chief distribution manager is entrusted with planning, monitoring and implementing of product distribution and coordinating the movement from production units and ports. Marketing operations of Baird follow a completely centralized pattern. The marketing network of Baird is spread over the world. The marketing offices apart from India are also there in U.K, U.S.A, Germany and France.
MARKETING RESEARCH
Marketing research department is essential for the success of marketing function. The
main function of marketing research is the collection, analysis and interpretation of data pertaining to textiles market.
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FUNCTIONS
Preparation of product wise, month wise annual sales plan for each area. Publication of annual report of division. Monitoring and reporting of competitors sales as per Performa. Collection, scrutiny, analysis and compilation of region wise, area wise sales performance of own and purchased products for providing information to management on achievement against the target on a daily basis. Submission of monthly performance report. Ensuring product availability, dispatch, monitoring and inventory control.
PRICING POLICY
The company has adopted a differential pricing policy. An open body named textiles manufacturers association of India fixes selling price for a particular period. Price of the product is fixed by adding the production cost, excise duty, VAT and freight charges. Tenders are issued to the customers with a price quoted and if turns to be the lowest bid and satisfies the customer, the sales are done. 56
The prices are finally made into action only after communicating with the parent organization. For transportation of the product, raw materials and also all other logistics purpose, company have given contracts to outside agencies. The contract is placed for each material that is done in annual basis.
PLACE
Here direct selling is made i.e. the fabrics processed in the units are given to the retail shops for further stitching process ready for garmenting. The entire marketing functions are done by the company itself and not by any marketing office outside the company. All payments take place through Banks in Cochin.
PROMOTION
Baird is the only manufacturer of linen fabrics in the entire state. But it lacks a good promotion policy to withstand competition. The customers are aware of the existence of the company and when and how to get the product. There are some promotional activities like mass communication technique and personal contact method. But the main marketing factor is price, which depends in the national and international price. The company advertises through radio jingles, hoarding, wall painting etc. The promotional activities are also done through company website (www.bairdmcnutt.com).
THE COMPETITORS
Aditya Birla group-linen club Aditya Birla group-Jaishree textiles Ganga Silk fabrics Linen INC. World linen and textile company 57
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MARKET ANALYSIS
The company is going to complete its seventh year. The first two year was tough for the company as they could not fetch much profit but at seventh year they are doing fairly well with a increased sales turnover. This was due to higher production, increased demand and better sales realization. Though there was recession in the realization towards the end of the last financial year, but it was not reflected on Baird Cochin Pvt Ltd, as the contracts was made earlier. The indications are that the market will improve on the coming financial years.
Unnecessary intervention of State and Central Government in sales and distribution. Recurring losses have put the organization the back foot looking for survival in the present than long term plans and resulting research, leading to low level of research.
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GENERAL INFORMATION
H.R.M is one of the most complex and challenging fields of endeavor. It is considered to be the most expensive and important of every organization. In Baird the scope of HRD is fast. Baird is always committed to learning and sustains growth. It fosters a culture that promotes excellence and rewards entrepreneurship. The people processes initiated at Baird are a reflection of the overall Human Resources policy of Baird group.
OBJECTIVES
To maintain the optimum manpower required to sustain the growth of the organization. To motivate and manage human resource and train them to ensure their personal and organizational development.
STRUCTURE
SYSTEM ADMINISTRATOR
SUPERVISOR ADMINISTRATOR
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FUNCTIONS
Organizational human resource planning and development. Retirement and selection. Wage and salary administration. Employee records maintaining. Performance appraisal. Welfare program. Job evaluation. Handling employee grievances. Handling the legal issues within and outside the organization.
PROCESS OF HR DEPARTMENT
The human resource department has 3 blocks which are:
1. Establishment section
I. II.
Recruitment and selection Transfer, rotation and placement of employees in consultation with divisional heads
III. IV. V.
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2.
Industrial relation
Industrial relation operates only within the organization. The Inter organizational relation is handled by the corporate cadre. 60 to 70% of management time is lost in resolving IR issues. Therefore the H.R department is of paramount importance.
Communication between management and trade unions Grievance handling Settlement of dispute Handling disciplinary action Safeguarding employee rights Career related issues like promotion, transfer and rotation Resolving daily petty issues
3. Welfare
Welfare schemes can be divided into statutory, agreement, voluntary and incentives. The main objective of welfare measures is to maintain healthy working environment and raise the standards of living of employees which create harmony to the society and finally to the organization. Baird has always maintained very healthy welfare measures. These are done with the consultation of personal department.
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The details are handed over to the training department by respective department head. Training department does compilation of the identified training needs of the employees. Necessary training programs are arranged by the training department to cater the identified needs of the employees.
Training department organizes training programs using internal faculty or engaging faculty from reputed organization. The training department in consultation with concerned department heads organizes in house training programs on special recruitment. When employees attend training programs conducted in house, a feedback about the usefulness of the training obtained and consolidated. The concerned department heads evaluates the feedback from the participants after a period of 2-3 months to ascertain the effectiveness of the training programs.
Employees are also sent for training to other reputed institutions. Nominations for sending employees for training in such institutions outside the company are put up for approval of the appropriate authority as per the guidelines issued by the company from time to time. The employees attending outside programs submits a feedback on
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the trainee undergone the training department. Not only that various training programs for shop floor employees are also given a great importance.
The achievement against annual training calendar is reviewed half yearly. The department helps for the number of programs held, number of employees participated for each programs, the highlights of training effectiveness feedback etc.
The training department maintains a register on the training program attended by the employees. Training department maintains the format received from participants after getting it evaluated by the concern department head regarding the effectiveness of training. The managerial personal of the company are imparted training to improve their managerial capability at the HRD centre of the company and outside institutes depending upon the needs identified by the head of the department.
a. Canteen management committees. b. Safety committees. c. Shop floor committees. d. Grievance committees. e. Provident fund trust. f. Tri party committee. g. Complaint committee
Group management trainee scheme Succession planning Internal recruitment system E-learning Knowledge management
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STRENGTH:
The main strength of Baird is that it is the only unit in the state who process 100% Linen fabric. So it has the advantage in the pricing policy. It means that they can follow a flexible pricing policy. Baird is the pioneer in the fabric market and has created reliability and credibility among its consumer. Large pool of skilled and cheap work force, adding to the competitive edge of the industry in the international arena. Government support to increasingly diversify and further exports. Baird is one of the producers of Irish linen fabric in India with world class quality. Sustained operating parameters of the plant at good level and productivity of plant at good level. Company has excellent infrastructure facilities including nearness to national highways, railway station and seaport and airport facilities. Baird has an excellent group of capable fabric designers.
WEAKNESS:
In India man-made fabric among various textile materials sells the most, sales of cotton came next in the order. As linen is not much popular among the consumer in India, they constitute negligible percentage of sales which is one of the main limitation faced by the organization. Linen is one of the expensive fabrics and also this fabric does not suit with our climate which affects the sales of the company. Lack of working capital resources. Several unskilled jobs which could be sub contracted are undertaken by the permanent employee at high cost. Access to raw materials is very difficult as it has to be transported from different places.
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OPPORTUNITIES:
Less expensive alternative sources of energy and other inputs. Acquiring technology to utilize other resources. Expanding production capacity to drive benefits of sales. Linen fabrics have greater demand in foreign countries. As there is an effective R&D department, they can bring out new innovation, hence product diversification is possible. Very large asset base.
THREATS:
High pricing of products. Less demand for linen fabrics in India. Pollution (air & water). Inherent bottleneck in infrastructure facilities. Unfavorable policy of parent company.
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FINDINGS
Baird is the only company in the state who manufactures 100% linen fabrics, the objective of the company is to popularize linen. The major competitors are Aditya Birla Jayashree Textiles and Ganga Silk Limited. Location, preference, reference and quality are the major criteria for selecting manufacturer. Company follows management by convenience and not management by objectives. The company has a strong organizational structure that is backed by systems and procedures, these rules and regulations support the entire structure. Pricing policy of Baird is average, according to the industrial standards. Since now the clients have not reported any rejection of Baird product, which shows the product satisfaction. In case of lead time, it was noted that order processing took too much time due to lot of work. The strength of Baird is the quality of their products, services and delivery. No strikes have been reported till now; it shows the relationship of workers and the
management as better. The company is depending heavily on electricity and around 40% of their product price is for this. The entire exports are done and dealt with the permission of Development Commissioner of Cochin Special Economic Zone (CSEZ). No major environment pollution has been reported till now.
SUGGESTIONS
In case of lead time, the production has to increase and delivery on time. To reduce the heavy use of electricity by using advanced machineries. The company has to concentrate more on retail sector also. Move to the manufacturing of textile garments directly. Expanding production capacity to drive benefits of sales.
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CONCLUSION
WFB BAIRD is a Private limited company situated in Cochin which is a vertical manufacturer of 100% linen fabrics in the state. Their products are known for the quality. Baird products have international reputation for quality and the company gives high priority to customer satisfaction. Baird takes vital steps at the right time to make innovations in technological up gradations as well as organizational improvements, which had helped it to face problems quite efficiently. The company started its operations at the year 2005 and till now they have a steady growth in production as well as sales. In this seventh year financially they are growing and also the people associated with the company. It is hoping that it would continue in the coming years. The joy and hardship to build a good carrier was reflecting from the department heads at Baird, which has motivated me to face the challenges in my life. As per the study conducted in the organization, the capacity of production is increasing and the company is moving into more profitable stages. The 30 days I spend at Baird had created a concrete impression in the development of my carrier.
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BIBLIOGRAPHY
C.R Kothari, Research Methodology, New Age International Publishers, second edition, 2004. Philip Kotler, Marketing Management, Prentice Hall of India Private Limited, tenth edition, 2002. www.bairdmcnutt.com www.moneycontrol.com www.burgoyne.in
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