Professional Documents
Culture Documents
INTRODUCTION
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INTRODUCTION
In countries like India, rubber is one of the main agricultural and commercial
products. About 90 % of the natural rubber is produced in Kerala. So rubber has become
the backbone of our economy. Due to the bad impact of globalization the overall market
of rubber fall down in Kerala, that time instability in price of rubber was one of the major
problem that farmers facing in the market. The farmers were not getting fair price for their
effort, but this problem has come to an end since 1997, because the Kerala state rubber co-
operative limited came into existence in this year on the purpose of exporting the infinite
possibilities of rubber. It literally means that Kerala state rubber co-operative limited
(RUBCO) has become the backbone of the rubber cultivator. Kerala state rubber co-
operative Ltd, popularly known as RUBCO, is a Rs 280 cores group with strong presence
in the rubber based industrial segment. RUBCO is incepted with prime objective of
effectively utilizing the abundant rubber resource of Kerala.
In a short span, RUBCO has successfully introduced a wide range of fast moving
rubber based product. Today the RUBCO group has interest in rubber footwear, casual
shoes, cycle tyres and tubes, two and three wheeler tyres, rubberized coir mattress process
and rubber wood furniture, block rubber (ISBR) and pale latex crepe, apart from natural
rubber trading.
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1.1 SCOPE OF STUDY
3
1.4 METHODOLOGY OF STUDY
PRIMARY DATA
Data is collected by formal and informal interview and discussions with
managers and officials at various levels and personal visit to plant.
SECONDARY DATA
Data is collected from published and unpublished sources, official
records, organizational manuals and department manuals.
TIME LIMIT
To understand an organization and its working the period of 30 days is
not at all enough. So time was the most important limiting factor in the study.
LACK OF DATA
Some of the data are treated as confidential and hence the researcher
could not get the details of the same.
LACK OF COMPARATIVE DATA
The detailed data of other companies related to the same business was not
available to take comparative study.
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CHAPTER –2
THEORETICAL OVERVIEW
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2.1 INDUSTRY PROFILE
The birth of rubberized coir industry is quite amusing interesting. Prior to the
year 1960 people hardly had any idea of this novel and high utility product. In those days
the world famous car manufactures/s V
olks Wagon of Germany, were using horse hair as cushion famous material for
their car seats. As their production increased from 100 cars per day to 300, there was
dearth of this raw material. This necessitated a suitable alternatives tried like sail fibre,
jute fibre, the coir fibre was decidedly found to be the best. This was the beginning of
rubberized coir industry. The Indian rubberized coir industry is nearly four decades old. It
was in 1964 that m/s Bharath Motors of Chennai established its manufacturing unit. Many
other units came up during sixties itself.
Cotton mattress
Form mattress
Spring mattress
Air mattresses
Viscoelectic mattresses
Rubberized coir mattress
COTTON MATTRESS
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The cotton mattress mainly targets lower income group. This mattress is
priced very low. The cotton mattress industry has a market share of 50%.
FORM MATTRESS
Form mattress segment comes at next place after rubberized coir
mattress industry. This industry is having a market share of 9 to 10 %.
SPRING MATTRESS
The industry targets consumers belonging to the upper income group.
The major players in spring industry are spring industry are spring well, Sealy
Kurl-on, etc.
AIR MATTRESSES
Air mattresses are designed to relieve discomfort due to back pain or
joint pain. If you are having back sore or aching joints an air mattress may
accommodate to your needs perfectly.
It is a material that was first designed by and developed for NASA. The
foam was used to relieve pressure on astronauts when experiencing G-force
upon exiting the earth’s atmosphere.
There are mainly three major players in the mattress industry and are as follows
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SEALY CORPORATION
Sealy Corporation is the major mattress manufacture and it got the name
form the place it started, Sealy, Texas.
KING KOIL
KURL-ON LIMITED
DUROFLEX
CENTURY MATTRESS
Century fiber plates Pvt Ltd. Started its rubberized coir plat at
Hyderabad in 1988 under the brand name “CENTURY”. Centaury is the first
mattress manufacturer with ISO 9001-2000 series and ISI certification.
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2.1.4 STATE SCENARIO
In India, the coir industry has developed very well especially in Kerala where
they produce. Retted Fiber. Green husks of coconut arte immersed in the salty backwaters
for 10 to 12 months.
DUROFLEX
EASTERN SUNIDRA
RUBCO
Kerala state rubber Co-operative Limited was set up in the year 1997,
RUBCO was incepted with prime objective of effectively utilizing the
abundant rubber resource of Kerala.
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2.2 COMPANY PROFILE
Kerala state rubber co-operative ltd (RUBCO) was set up on June 9, 1997 with the
main objective of effectively utilizing the absolutely available rubber resource of Kerala.
In a short life, span this co-operative sector enterprise based at Kannur has created history
in the whole co-operative movement of the state, by redefining the roles, the sector
comply in bringing welfare to the people and the pace for the co-operative movement in
Kerala.
Since its inception, RUBCO has travelled long. Today from a single unit
company started with a modest Rs.2.5 million investment made out by local co-operative
societies. RUBCO has grown into Rs.7500 million conglomerates with well diversified
operations and a market presents extending beyond the boundaries of Kerala.
Today it enjoys 4th position in the production of natural rubber and the small
states of Kerala contributes 92% of it. Rubber has become the backbone of our economy.
Due to the impact of globalization the overall market of rubber fell in Kerala and the
stability in of rubber was one of the major problems that the rubber farmers faced.
The farmers were not getting fair price for their efforts but this problem came to
an end since 1997, because the Kerala State Rubber Co-operative Limited (RUBCO) come
into existence and there started. A series of possibilities for the utilization of rubber in
multi- furious spheres and fields. Since its inception in 1997, RUBCO has travelled a long
way. It has entered into various rubber based industries like Hawaii Chappell with reputed
Malaysian technology, cycle Tyres and tubes, rubberized coir mattress conventional and
procured tread rubber, block rubber (SMX) pale latex crepe (plc) casual shoes etc. For last
decade with a vision to become a global leader in the production of natural rubber and
innovative product development, RUBCO has adopted the best and the latest process in
the production. In their slogan itself they had mention that
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“RUBCO means RUBBER and RUBBER means RUBCO”
Today from a single unit company RUBCO has grown into a 280 crore
conglomerate with well diversified operations. Under RUBCO group there are wide
ranges of business such as:
Foot wear
Furniture
Cycle tyre and tube.
Rubber coir mattress
Natural Rubber
Virgin Coconut oil
Panel board (treated rubber wood)
Interior furnishing
Lush Ayurvedic Product
Casual shoes
Tread Rubber
Crumb Rubber
RUBCO is the largest exporter of natural rubber in the country today. Even in the
domestic market, RUBCO is a major supplier of natural rubber base company in India.
Lead by the professional management team and support by the committee workforce.
RUBCO is now poised to enter and high growth phase with several initiatives on the path
of great expansion and diversification.
2.2.2 HISTORY
Kerala state rubber co-operative ltd (RUBCO) was set up on June 9, 1997 is an
ambitious project realized with an investment of 260 million. The manufacturing plants
among the very few in the country to employee Austria machinery, sourced from DOA-
Austria is a technology leader in rubberized mattress. The manufacturing plants is among
very few in the country employee advanced Australian machinery sourced from Austria.
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and extremely durable. As they do not say, there are very comfortable and ensure a healthy
and rest full sleep.
Rubberized coir mattress are crafted from the four finest materials and finished to
perfection, one of India’s most modern computer controlled machines imported from UK
and USA, strict quality control is observed at every stage of production to ensure that
RUBCO rubberized coir mattress always measure to the highest quality.
A unique feature of the main sheeting plant is that facilitates vertical fibber
orientation, a process that results in a deeper penetration of latex into the sheet, making it
very elastic. This provides the mattress with uniform density throughout and an extra
cushioning effect. The plant has an annual installed capacity of 4.8 million units,
consisting of mattress and other rubberized coir process
PASSION IN MOTION
QUALITY
TECHNOLOGY
VISION
MISSION
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2.2.3 OBJECTIVES OF THE COMPANY
SOCIAL OBJECTIVE
COMMERCIAL OBJECTIVES
SOCIAL OBJECTIVES
COMMERCIAL OBJECTIVE
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Rubco's Rubberized coir mattress division is an ambitious project realized with
an investment of Rs.280 Million. The manufacturing plant is among very few in the
country to employ advanced Austrian Machinery, sourced from DOA, Austria. Rubco
rubberized coir mattresses are scientifically designed to provide proper back support
without compromising on comfort. By virtue of their ingenious design construction and
the unique 3-D technology, Rubco mattresses are firm without being hard and extremely
durable. As they do not sag, they are very comfortable and ensure a healthy and restful
sleep. Rubco rubberized coir mattresses are crafted from the finest materials and finished
to perfection in one of India's most modem manufacturing plants.
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without compromising on comfort. By virtue of their ingenious design and construction
and the unique 3-D technology.Rubcomattresses are firm without being hard and
extremely durable. As they do not sag, they are very comfortable and ensure a healthy and
restful sleep. Rubco rubberized Coir Mattresses are crafted form the finest materials and
finished to perfection in one of India’s most modern manufacturing plants.
9th June 1997 Registered RUBCO, Commercial operation in October in the same year
15th Oct 1997 Commenced procurement of natural Rubber, directly from farmers
28th May 1998 Foundation stone laid for Footwear Manufacturing factory and tread Rubber
Manufacturing Unit at Koothuparambu, kannur, Kerala
July 1998 RUBCO takes over the reins of Sreekandapuram Latex Pvt Ltd.
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2nd March 1999 Foundation stone laid for PLC factory in Sreekandapuram
9th Dec 1999 Entered into an agreement with M/S Tong tieck (pvt) Ltd of Singapore to
exp 150 metric tons of rubber first time from India.
8thMarch 2000 Entered into a technical collaboration with panaswrna management and
consulting service, Malaysia for manufacture of casual shoes.
6th May 2000 Foundation stone laid for casual shoe project
1st June 2001 Rubco Haut Woods Pvt. Ltd started commercial production.
20thApril 2002 Started activities of coconut complex for the production of virgin coconut oil
and ancillary products.
6th Dec 2002 Started RubcoRufaas scheme.(Collection of Natural Rubber From farmers)
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23rd Jan2003 Signed MOU with KokonutpacifiePty.Ltd. of Austria for the production of
Virgin Coconut Oil.
2003 Signed MOU with Trpura Forest Development and Plantation Corporation
Ltd. For setting up a unit for rubber wood processing and manufacturing of
furniture.
2006 Started interior design Division and become one of the largest organization
for interior solution for Govt. Department
2006 Virgin Coconut Oil under the brand name “Nutri-ko” Launched
2008 Corporation sponsored scheme from NCDC to the tune of55.76 Crores.
2014 Inauguration of RUBCO spring mattress and RUBCO natural coconut oil.
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Four Ex-officio directors viz.
Registrar of Co-operative societies, Kerala.
Chairman of the Indian Rubber Board.
President, Kerala State Co-operative Bank Ltd.
Managing director RUBCO.
CHAIRMAN
Sri. V N VASAVAN
MANAGING DIRECTOR
MR. P V HARIDASAN
GENERAL MANAGER
MR. A MOHANAKRISHNAN
ADMINISTRATIVE CUM PERSONNEL OFFICER
MR. AJITH KUMAR P C
PRODUCTION MANAGER
MR. P K VINOD
Sri. Anoopdaviskada
Sri. Bhaskara M
Sri. Najeebmohammed H
Sri. Gopalakrishnan K C
Sri. M. Chandran
Sri. K. Manoharan
Smt. Kanjanavally P V
Smt. Sasikala P V
Smt. Seetha K R
Sri. Vijayadas K V
The chairman rubber board, Kottayam
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The Registrar of Co-operative Societies, TVM.
The president, Kerala State Co-operative Bank, TVM.
Skilled workers 24
Semi-skilled workers 43
Unskilled 113
Casual workers 41
Total 250
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RUBCO in the process of setting up a project for the manufacture of tyres
and tubes for two/three wheelers, passengers, cars, heavy duty trucks, and
light commercial vehicle. The ground work in underway and the division
will be launched in the near future. It will have production capacity of 6
million tyres and tubes annually.
LOCATION:
The project will be located in the proposed industrial growth centre being
developed at Valiuavelicham, about 35 km from Kannur city.
The plant will have a 2.3 million nos. of radial and baistyres per annum
which 75 million would be utilized for the truck drivers, 1.5 million for
light passenger’s tyres and balance would be for two or three wheelers.
Investment : 96 million,
2.2.13 COMPETITORS
KURL-ON
It came into existence on 1962. It otherwise called Karnataka consumes
product limited. Kurl-on produce rubberized coir mattress.
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DUROFLEX
Duroflex is Kerala based company and its factoring located at
Alappuzha. They produce mattress and rubberized coir mattress.
SUNIDRA
Sunidra otherwise called eastern mattress pvt ltd. Its manufacturing unit
located at Thodupuzha. Sunidra also produces rubberized coir mattress.
COIR-ON
Coir is division of M/S Harish coconut product Pvt Ltd. Started in 1979
at Pollachi, Coimbatore.
RESTOFLEX
Restoflex manufacturing facility located at Karnataka. It produces
rubberized coir mattress.
2.2.14 PROMOTERS
Govt. of Kerala along with Indian rubber board and same district and primary co-
operative bank in Kerala are the promoters of RUBCO. The govt. of Kerala holds the
majority of shares.
Government of Kerala
Rubber Board
Kottayam District Co-operative Bank
Ernakulam District Co-operative Bank
Calicut District co-operative Bank
Kannur District co-operative Bank
Thiruvananthapuram District co-operative Bank
Kollam district co-operative bank
Palakkad District co-operative bank
Thrissur District co-operative bank.
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2.3 PRODUCT PROFILE
2.3.1 MATTRESS
HEAVEN MATTRESS
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HI-TECH MATTRESS
It is high and end model. It has every good finish and luxurious. It is available in
6 inch and density of 60 kg/m3.
RENOVA
It is a premium model mattress having 6 and 3.5 inch thickness and of 90kg/m3.
DOSTH MATTRESS
It has an economy model that is offers true value for money, its available 3 and 4
inch thickness and density of 75kg/m3
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SAFAL MATTRESS
YATHRI MATTRESS
An elegant mattress meant for hotels, tourist’s resorts etc. yathri combines
superior sleeping comfort with perfect beak support, enabling a relaxed, healthy sleep. It is
available in 5 and 3.5 inch and density of 90kg/m3.
HEAL MATTRESS
It has a quality product suitable for use in hospitals. It’s available in 2, 3 and 4
inch thickness and density of 75 kg/m3.
RELIEF MATTRESS
TRAVELER
DREAM 50:50
Newly introduced economy model available in three inch and 4 inch thickness.
Knited fabric, Gorvaluated form-1.5 inch, Re bonded form-2 inch, Bare block-2
inch, P v form-2 inch.
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TWIN LIT -5 INCH
SPRING NOVA
HIGHLIGHTS
RUBCO
MANUFACTURER
DISTRIBUTOR
s RETAILER
CUSTOMER
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CHAPTER –3
ORGANIZATION STRUCTURE
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ORGANIZATON STRUCTURE OF RUBCO RCM Ltd
This pattern of relationship governs duties and activities of persons ho are dependent
upon each other for accomplishing the objectives of the enterprises. An organization
structure should be designed to clarify who is to do what tasks and who is responsible
for what results, to remove obstacles to performance caused by confusion and
uncertainty of assignment, and to furnish decision making and communications
network reflecting and supporting enterprise objectives.
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ORGANIZATION CHART RUBCO RCM DIVISION
Managing Director
Accountant Steno
Mechanical Electrical QS QS QS QS
JR. Clerk JR. Clerk Receptionist Maintenance Maintenance
Supervisor Supervisor
Production
Electrician
Assistant Assistan Planning
t
Workshop
Dispatch S.S.O Technicians Electrician
Electrician
SIC SIC SIC SIC
Electrician
Assistant
Supervisors 7 Nos FigureNo.2
(Leave reserve) (Leave reserve)
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CHAPTER –4
FUNCTIONAL DEPARTMENTS OF
THE ORGANISATION
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DEPARTMENT PROFILE
The organization process of determining how activities are to be grouped is called
departments. Departmentalization is a method of activities to facilitate the accomplishment of
organization objectives. The department show the horizontal differentiates in an organization.
3. PRODUCTION DEPARTMENT
a. PRODUCTION (MAIN PLANT)
b. PRODUCTION (FURNISHING)
c. PRODUCTION DEVELOPPMENT
d. PRODUCTION PLANNING AND CONTROLLING
5. ENGINEERING DEPARTMENT
6. MARKETING DEPARTMENT
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People, acquiring their services, developing skills, motivating them to the higher level
performance and ensuring that they continue to maintain commitment to the organization are
essential to achieve organizational objectives. This is true regardless of the type of the
organization, government, business, education, health, recreation and social action.
APO
Figure No. 3
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Human resource is the greatest of all resources. RCM division has the total strength of
employees and staff of Rubco RCM factory is 218, out of which permanent alone will come up to
147. It is a high to manage this large resource. For that efficient functioning of administrative cum
Personnel department needs special mention. The department comes under administrative cum
personnel officer.
The Functions of Administrative cum personnel department can be divided in two heads:
ADMINISTRATIVE FUNCTION
PERSONNEL FUNCTIONS
ADMINISTRATIVE FUNCTION
PERSONNEL FUNCTION
MANPOWER PLANNING
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o To forecast further skill recruitments that will serve as a basis for training and
development programmers.
Following are the steps involved in manpower planning at Rubco RCM division
4.2.5 RECRUITMENT
Recruitment is the process of searching right persons and stimulating them to apply for
job in the organization. Rubco RCM division follows a centralized system of recruitment at
head office level. Only recruitment of causal workers in directly done by RCM division in
itself.
4.2.6 SELECTION
In Rubco RCM division selection of employees are done at two levels at the workers
level and at managerial level. The workmen are divided into 3 levels based on their skills. They
are:
Skilled workers
Semi skilled workers
Un skilled workers
4.2.7 INDUCTION
The main function process at Rubco RCM is to make the worker understand the
relevance of his or her in the overall organization set up, apart from the general orientation
program concerning all aspects of the company operation given by personal department
specific induction programme are also conducted depending upon necessity.
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4.2.8 EMPLOYEE REMUNERATION AND COMPENSATION
At Rubco RCM the employee are remunerated well considering its year of inception
was just 3 years back. The average wage of permanent workers is more than 150 per day
allowance. The wage is given on a monthly basis. The employee compensation for accidents
happening in the factory as also handled by personnel department.
External agencies include personnel from worker educational centre as well as from
professional training agencies. Internal training includes both in-house training and on-the job
training .The development programmes for top manager are done by head office which is
mostly external.
Evaluation is done to determine whether or not the objectives and content of the
training courses are consistent with the aim and current needs of the company and whether
these objectives being reached in the most effective and economical manner. Evaluation of
training is conducted through internal assessment; evaluation is based on measuring the
performance of employees before and after the training periods.
Performance appraisal is a systematic and objective way of judging the relative worth
or ability of an employee in performing his job. The performance appraisal in RCM division of
Rubco is normally conducted for:
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4.2.12 INTERNAL ASSESSMENT DATA CARD
Item No. Description Ass Ass Ass Ass Ass Ass Total
1 2 3 4 5 6
1 ATTENDANCE
2 ATTITUDE
3 PUNCTUALLY
4 WORKAWARENESS
5 CO-OPERATION
6 HOUSE KEEPING
7 INITIATIVE
8 MARK OBTAINED
Total mark
Grade
REMARKS:
VERIFIED BY APPROVED BY
Table No. 3
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4.2.13 WELFARE OF EMPLOYEES
All employees in the organization are covered under the employee’s state insurance scheme
Festival advances are given to the employees on the occasion of notified festivals.
Annual bonus/incentives are paid to the employees as per the company rule
Drinking water
Latrines and urinals
Canteen
Transportation
Company is very much aware of the safety needs of the worker. Rubco RCM division
has a very good safety policy in which it was envisaged to make it an accidents and the worker
working over there are given extra training and proper caution boards displayed at accident
prone areas. First aid facilities are provided in the factory for all employees. Health is wealth
for employees as well as for managers. Rubco RCM division has done enough measures to
ensure mental as well as physical health of employees. Precautions are taken to avoid dust in
factory complex.
Administrative cum personnel department looks after the key area of union and
management relationship. The department has set in place on effective system to speedy sort
out any difference and disputes. The department gives updated reports on the lab or situation to
the head office time to time.
Most of the employees are young who are gaining experience at Rubco. So after going
enough experience they may opt for other companies. So in order to retain them and build
loyalty towards the organization. Administrative cum personnel department has drawn clear
cut plan and are working towards the plan by implementing it on a step by step basis.
ABSENTEEISM
Absenteeism rate in Rubco RCM is normal only. More than 940 attendances are
maintained. Management has initiated many steps as the absenteeism is coming down.
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GRIEVANCE REDRESSAL
A very good grievance redressal system is in place in the factory. An employee’s
has full freedom to take up any grievance with his immediate supervisor, who tries to
solve it to the extent possible
WORK COMMITTEE
The factory has 9 member work committee constituted under the provision of
industrial disputes act 19947. It is working smoothly. Workers welfare as well as health
measures are generally revised in work committee.
TRADE UNION
The trade union in Rubco RCM division is Rubco employees union. In the factory
there exists a good and healthy relationship between management and trade union. The
union is lead by C.I.T.U.
Finance refers to the application of skill or care in the manipulation in the use and
control of money. The finance in the modern business world is the life blood of the business
economy. We can’t image a business without finance because it is a central point of business
activities.
FINANCEMANAGER
FIGURE No.4
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4.3.4 FINANCIAL FUNCTIONS
Financial planning
Raising of necessary funds
Controlling the use of funds
Disposition of funds
Tax planning
Book keeping and accounting
Internal audit
Profit planning
A trade credit arises when a company sells its product or services on credit and does
not receive cash immediately. A company grants credit to protect its sales from the
competitions and to attract the potential customers to buy its product at favourable terms.
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Credit period allowed is 60 days. It can be extended to 180 days. The collection of credit will be
handled over to factory manager. The company will give creditors on further extension of one
month legal action will be taken against the person or company. If the company has submitted the
cheque or person for the credit due and the cheque has bounced or dishonoured the company can
sue take legal action against the person or company.
Planning of funds in a creditful estimate made by the manager about the total fund
required. This is the estimation done by observation over the physical activities of the
company.
Providing at the funds to proper place at proper time is also an important task to be
done by financial manager studies the cash requirement of each department and then funds are
distributed.
Each and every transaction that takes place in the company has to be record properly
for the purpose of having better control over funds. All the transaction are recorded in journal
and then posted to the ledgers.
The cost is controlled in raw material and reduction to expenses as there is limitation of
utilization of funds. The company will always have a comparison of budget and actual.
It is complete information system that provides flexible and speedy access to accurate
data. A set of computer based system and procedure implemented to help managers in their
crucial job making. The actual process involved effected data, organizing data discrimination
of data and storage of data. It focuses on accessory data and takes the uses into confidence.
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4.3.14 CAPITAL BUDGEING
Capital budgeting is done at the beginning of the year itself. The requirement of
capital will be specified clearly for the approval during the budgeted year. If any other
requirement of capital is faced then proper justification has to be made. If the requirement is
seen as on important one then approve of the capital is suctioned.
Cash management system is one of the key areas in any business. Apart from the fact
it is the most liquid current asset can be reduced cash is the common denominator to which all
current assets can be reduced because that other major liquid asset receivable and inventory get
eventually converted into cash.
4.3.16 CREDIT CONTROL FUNCTION
A trade credit arises when a company sells its products or services on credit end does
not receive cash immediately. A company grew to credit to protect its sales from the
competitors and to attract the potential customers to but its products at favourable terms.
Credit period allowed is 60 days o 90 days of can be extended to 180 days. The collection of
credit will be handling over to factory manager. The company will give the creditors on
further extension of one another legal action will be taken against the person or company if
the company has submitted the cheque or promissory for the credit due and the cheque has
bonded or dishoured the company can sue or take legal action against person or company.
Trade creditor’s receivable when the company is extended to collect in the near future.
4.3.17 STOCK IN STORES
Store department is an auxiliary department of financial department. The major
purpose of this department is to receive raw material from suppliers to different department and
here after verify the bill or invoice to ensure of incoming material and confirm the quality and
value its purchase order.
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Providing proper storage facilities.
Arranging the receipts and disbursement.
STORE DEPARTMENT
STORE KEEPER
STORE CLERK
FIGURE No.5
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Material documents of this department are produced in coordination with the
production department. Monthly check and other periodical checks are done to certify
the actual inventory value in quantities. There is a separate section for rejected
products. Such products are inspected before and after by the quality control
department. Such products are sold out as separate sale items.
RAW MATERIALS
Latex
Coir
Chemicals
Cloths
Fabrics
Electrical items
Mechanical items
Capital item tool etc
Furniture
Paper
Bill book
This is the department which purchases the required raw materials for the production of
mattress. So this department can be said as the backbone of Rubio. The store keeper verifies
the materials and if it goes beyond the minimum level, h will inform it to the accounts
officer and he will pass on the information to the general manager. The general manager
then does further action to buy the required raw materials. The main function of purchasing
department is to ensure uninterrupted flow of production
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4.3.23 STRUCTURE OF PURCHASE DEPARTMENT
PURCHASE OFFICER
FIGURE No. 6
SOURCE IDENTIFICATION
Source identification involves the identification of suppliers from which purchase are
to be made.
SOURCE SELECTION
Source selection involves selecting the best supplier from different suppliers, which is
based on desired quality, quantity, price, service etc.
VENDOR RATING
This responsibility lies with Rubco head office. Vendor rating is done on the
basis of product, price of the materials and the reports from the production department in the
case of latex or chemicals.
RECEIPT OF MATERIAL
Materials are collected by the receipt store and the details will be given to the
section for inspection. Number of items passed, rejected and the reason for rejection if any will
specified. Receipts store will then prepare materials receipt report and then sent it to the
concerned sections i.e., purchase and accounts. The original will be retained by the receipt
store.
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4.3.25 CLASSIFICATION OF MATERIALS
The materials used in Rubco RCM division are broadly classified as:
RAW MATERIALS:
Latex, coir rubber chemicals, cloths and qualified fabrics, PU forms and threads.
GENERAL ENGINEERING ITEMS:
Electrical items, Mechanical items, spare parts and capital item tools.
REQUISITION
The power of approving material requisitions is with Rubco headquarters.
PURCHASE PROPOSAL
After purchase requisition has been approved by the head office, the order is
placed.
PURCHASE ORDER
After fixing the right supplier, purchase order is prepared and placed with
proposed party. The order rate, quantity, delivery schedule and terms of payment
will be mentioned.
VENDOR RATING
The responsibility lies with the Rubco head office. Vendor rating is done on the
basis of product, price of the material and reports from the production department
in case of latex or chemicals.
RECEIPT OF MATERIALS
Materials are collected by the receipt store and the details will be given to the
section for inspection. Number of items passed and reason for rejection if any will
be specified. Receipts store will then prepared materials receipt report to be send
to the concerned section i.e., purchase and accounts. Original copy will be
retained by the receipt store.
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4.4 PRODUCTION DEPARTMENT
PRODUCTION MANAGER
Figure No. 7
The main raw materials used for the production of bare mattress are
Sulphur
Zinc oxide
zmbT
ZDC
Dispersal F
China clay
B-rods
TDQ
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4.4.3 FINAL PRODUCT FROM THIS DEPARTMENT
The final product from this department is bare rectangular shaped rubberized
coir block. Rubberized coir is resilient and because of resiliency of the curled fiber. The
purpose of rubber latex is to bond the resilient coir fibers together and impart shape of
the product.
The skilled worker at this department comes to 33. There are 46 semi skilled
and 35 unskilled workers. Casual workers will come to 42. Temporary workers are 12
in number. The production process of Rubco RCM division consists of following
stages:
PROCESSING OF COIR
Coir is one of the major raw material for the rubberized coir mattress, which is
purchased as bundles (140 bundles=1 load). This purchased bundle may contain
moisture in them. To eliminate this moisture content it is kept in coir drier machine
and by using steam from boiler it is heated for three days, where specified
temperature is maintained.
o COMPOUNDING
In this stage the above made chemical dispersion is mixed with latex
stirrer machines. Sufficient quantity of stabilizers also added in to the above
mixture at this stage.
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4.4.5 SHEET FORMING STAGE
o Untwisted unit
o Distributor and first spraying section
o Drier and second spraying section
o Cutting table
VULCANIZING STAGE
The pressed pads are then loaded in a trolley and further processed in a
Vulcanize to give the desired resilience to the product.
TRIMMING
After vulcanizing the bare blocks are cut in machine called band saw to
form rectangular bed like a block of desired length and width.
FINAL INSPECTION
After final inspection and checking this bare block are given the furnishing
department for further processing.
Here completely dried and tempered rope are fed in to the untwisted unit were
the ropes are opened up to make it coir fibres and curled coir fibres are thrown by a
‘cyclone’ in to a feeding conveyor.
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Fifers are opened further with air from compressors and supplied to a sheet
former. The sheet former takes the fibre over and pragmatically produces sheet with
partly vertical finer orientation adjustable width and surface weight.
The sheet is sprayed with compounded latex from the top in the automatic spraying
section called spraying gun. The sheet is then dried in its passage through the tunnel drier.
After drying on its first passage through the tunnel drier.
After drying in its first passage, the sheet is automatically turned over and sprayed
with compounded latex on the other side. After the final drying the sheets are cut to the
required size in automatic cutting machine.
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4.4.7 STRUCTURE OF THE PRODUCTION PLANT
PRODUCTION DEPARTMENT
COMPOUNDING
COIR DRIER
(LATEX, MIXED WITH CHEMICAL)
UNTWISTING
SHEETING PLANT CONVEYER DRIER
MACHINE
INSPECTION
TRIMMING
DISPATCH
FIGURE No. 8
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4.4.8 PRODUCTION (FURNISHING)
Furnishing at different model of mattress, cushion and pillows as per the set
standards.
Find inspection of mattress, cushion, pillow and other bedding accessories.
Labeling, packing and dispatching mattress and cushion.
Preparation of furnishing material.
Dispatch of mattress, cushion and pillows as per planning department instructions.
Reworking of rejected mattress after referring the condition.
Adding
Feeding
Stitching
Quality checking and inspection
Labelling
Corner cutting
Outline machine
Border stitching machine
Tape edge machine
Corner cutting machine
Sewing machine
Fabric cutting machine
Handle stitching machine
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4.4.12 CONSUMABLES REQUIRED FOR FURNISHING DEPARTMENT
Quilted fabrics
PU forms
Clothes
Threads
Expanded poly ethylene sheets
Threads
Labels
Polyethylene covers
Tapes
ISI sticker
Brand name
MRP sticker
Quality CHEK sticker
SHIFT IN CHARGE
FIGURE No.9
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4.4.15 PRODUCT DEVELOPMENTS
Rubco’s products have domestic and international acceptance due its stringent
quality maintenance. A well equipped lab functions at Rubco RCM division to assure
the quality maintenance and quality control of mattresses produced here. This
department comes directly under factory manager.
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4.5.2 QUALITY ASSURANCE FUNCTIONS
Testing of material this include testing and analysis work of raw materials like
latex and coir, furnishing materials like cloth, PU foam cotton, blanket, threat etc
and finished product.
Effluent treatment plant
THE EFFLUENT TREATMENT FUNCTIONS ALSO COMES UNDER LAB
o Testing of sub-contract material.
o Testing of packing and sealing department
o Customer relations management
o Vendor analysis
At the effluent treatment plant rubber and latex is separated from the effluents
and this water is used for irrigation purpose in the garden at Rubco RCM factory
compound.
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4.5.5 PERSONNEL IN LAB
Only shift-in-charge (lab & Q.A) quality supervisor lab and a clerk are the
permanent staff. The rest of lab technicians, lab assistants etc. are all temporary
employees. Shift-in-charge (lab Q.A.) is at freedom to appointment these technicians
and assistants according to the need.
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o FLEXING TEST
This test is done to check the internal hardness of bare mattress. The bare
mattress block is kept in flexing apparatus and subjected to 250000 times of
flexing to check the hardness.
COMPRESSION TEST
This test is done to check the hardness of bare mattress. It is kept in for 22
hours. 3 hours after the release of the load reading is noted from the compression test
apparatus, under following condition.
At atmospheric conditions
In hot air oven (700C)
AGEING TEST
This test is done to the durability performance of the mattress.
PH TEST
PH test is conducted to analyze the durability performance of the mattress.
SULPHATE TEST
To estimate the sulphate contents the extract of rubberized coir sheet.
SHIFT IN CHARGE
WORKERS WORKERS
FIGURE No.10
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4.6 ENGINEERING DEPARTMENT
Instrumentation
Electrical maintenance
Maintenance and utility
Boiler unit maintenance
Marketing is the foremost function that gives the management hopes for their
integrated task through making profits. It is a social and managerial process by which
making profits. It is a social and managerial process by which individuals and groups
obtain what they need want through creating and exchanging products and value with
others.
Rubco mattress has attained wide market coverage in Kerala the short period
of it being established. Now Kerala market is dominated by Rubco mattress industry.
The effective marketing strategy that they have adopted is the reason behind this
explosive growth of Rubco. Expansion of existing market into other geographical areas,
i.e., now Rubco is the market leader in Kerala mattress industry and they are about to
expand their market all over South India in order to attain their target turnover.
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4.7.2 FUNCTIONS OF RSIL
Rubco mattress has also entered Tamil Nadu with setting up of distribution
channel in Chennai ad Erode. With the aggressive market expansion plans and the
domestic sales turnover of Rubco Rubberized Coir mattresses are all poised to double.
As Rubco has entered into export deal with some of the European Union
nations and the shipment already flagged off, the current year’s sales figures may even
go up further.
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4.7.3 ORGANIZATION STRUCTURE OF RSIL
CHAIRMAN
MANAGING DIRECTOR
AREA MANAGER
SALES EXECUTIVES
FIGURE No.11
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4.7.4 NEW MARKETING INITIATIVES
The marketing initiating other than maker expansion include the function of
new innovative product like –Budget mattress, Foldable mattress, Mattress protector,
Hi-tech pillow top mattress with 7 inch thickness, cross pillow, latex pillow.
4.7.5 PRICING
The margin for distributor is 11 % on transfer price and margin for retailer in 20% on
MRP in Kerala 25% on MRP in Tamil Nadu. The retailers are at freedom to sell below
MRP.
4.7.7 PROMOTIONS
4.7.8 ADVERTISING
4.7.9 PACKING
Packing of the product plays vital role in the success or failure of a product
packing strongly affects the purchase decision. Packing is the covering given to a
product for protecting it on the plastic covering of Rubco mattress contains information
regarding its unique 3-D technology.
4.7.10 EXPORT
It is not a function of marketing department at Kannur. This function is done
by RCM factory Pampady itself. This year Rubco has starting of its mattress to some
European Union country. Rubco RCM division also receives enquiries for Sri Lanka,
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UAE and another Middle East centre. As Rubco RCM decision strictly follows its
quality policy and product satisfaction of the customer the export opportunities are
plenty. As for exports ISO certification is preferred. Rubco RCM division is all set to
take ISO 9001 certification shortly.
RUBCO (MANUFACTURER)
DISTRIBUTOR
RETAILER
CUSTOMER
FIGURE No.12
Identify potential export market and establishes liaison and co-ordinates sales.
Negotiates and enters into sales contracts with customers. Preparation, review
and finalization of quotations and enders on approval from M.D.
Collect market intelligence and develops effectives ales promotions
techniques, including product promotion and advertising pricing.
Develops an aggrieve marketing strategy to survive and progress under
competitive environment.
Liaisons with production manager for changes in production schedules
depending on market demands.
Prepares periodical performance appraisal of employees in the department.
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4.7.13 ASSSISTANT MARKETING OFFICIER
Primary sales projection – Domestic RCM: Rs 7200 lakhs and Domestic Spring:
Rs 600 Lakh.
Sales promotion activities: Rs 780 lakh. (Budget utilization based on actual
turnover achieved).
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4.7.17 NEW MARKETS
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CHAPTER – 5
ANALYSIS
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SWOT ANALYSIS
5.1 STRENGTH
Rubco mattress division has lot of product variety and price range.
In the company there exists a cordial relationship between employees and top
management and among dealers and distributors.
Through effective marketing Rubco products could have acquired wide market
acceptance to customer. Preference within a short period of being time
established.
Style of leadership that company following is leadership through dedication and
coordination. That encourages employees of the organization to work towards
their organizational goals.
The strength of the company lies with the quality of their products, wide range of
products capable to challenge variable environment condition, goodwill and
customer service, technical advices marketing intelligence, wide network and
interaction with customers.
Effective material management system is one of their strength.
Good financial management system that exist in the organization.
5.2 WEAKNESS
Rubco is newly established company, most of the employees are fresher’s and
therefore the company has to conduct training programs to improve their skill. So
large volume of productive time is consumed to make enable these inexperience
workers to familiarize with their work procedures to be followed.
High price compared to their competitors.
Rubco plans to expand their market in overall south India, but transportation from
Kerala to other market will be a big burden they are facing in the market when
comparing to their competitors they can easily supply goods into market demand
because they are having manufacturing plant in other state.
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5.3 OPPORTUNITIES
The company has introduced lot of product verity in to the market therefore
customers having lot of alternatives to make their own decision.
Rubco RCM division is not yet fully tapped their 100% utilization of existing
machine capacity so opportunities lies there. The factory can undertake new
projects regarding project diversification.
Opportunity of identifying the regions where introducing more and more quality
products so that strecture can with stands the different regional environment.
Rubco mattress faring high level competition in the market, but their products
having higher demand in the market, it is because of the quality policy that they
are adopting in their production process.
Rubco Rubberized coir mattress planning to be entering in to foreign market.
5.4 THREATS
Rubco RCM division division is very high regional and domestic competition
from other companies like Kurl-on, Duroflex and Sunidra mattress
Competition in the market is increasing day by day because of lot of unauthorized
companies in the market. They are products of low quality at less price and
attracting same customers. This major threat company facing in the market.
Each and every company facing threats in the market because customers
requirement are changing day by day.
Changing in the environmental factors can make influence in the market.
Fluctuating price of raw materials
Lack of raw materials.
Increasing competitions
Taste of customers varies.
Product differentiation
For the past several years company is facing severe competition.
Rubco ensure high quality product due to which the price of the products is
comparatively high compared to its competitors. So there is possibilities that
customer can switch to its competitors.
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PORTERS FIVE FACTOR ANALYSIS
The five-factor model of porter is an outside in business unit strategy tool that is used
make an analysis of the attractiveness of an industry structure. The competitive forces
analysis is made by the identification of fundamental competitive forces threat of the entry
of new competitors
Profitable markets that yield high return will attract new firms. This result in many new
entrants, which eventually will decrease profitability for all firms in the industry. Unless
the entry of new firms can be blocked by incumbents, the abnormal profit rate will trend
towards zero (perfect competition)
The existence of barriers to entry (patent, rights etc).The most attractive segment is one in
which entry barriers are high and exit barriers are low. Few new firms can enter and non-
performing firms can exist easily.
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Pictorial Depiction of Porters Five Factor Analysis
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Threat of substitute product or services
The existence of product outside of the realm of the common product boundaries
increases the propensity of customer to switch to alternatives.
The bargaining power of customer is also described as the market of outputs: the ability
of customers to put the firm under pressure, which also affects the customers sensitivity to
price changes.
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Bargaining power of suppliers
The bargaining power of suppliers is also described as the market of inputs. Suppliers of
raw materials, components, labour, and services to the firm can be a source of power
over the firm, when there are few substitutes. Supplies may refuse to work with firm or
e.g. charge excessively high prices for unique resources.
For most industries, the intensity of competitive rivalry is the major determinant of the
competitiveness of industry.
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Threat of New Entrants
Since the beginning of their manufacturing unit, they have a lot of representative offices,
indicating substantial growth. The demand in this sector is likely to outstretch the supply
position. New competitors are not likely to adversity effect. The fortunes of rubco in the
coming decades.
Threat of Substitute
Substitute product or servicing are these that apparently are different but satisfy the same of
customer needs. In porter’s model substitute product refers to the product of another firm.
With the entry of new manufactures, the choices before the customer vary to counter this,
the company may have to think of spreading their dealer network to unrepresented areas
and be watchful about the new comers. It has to keep a good relationship with it’s
customers, the quality of products developed should with customer’s expectations and
price of the product should be attractive.
Purchases are made and service obtained through a process of open tendering. This way
the company is able to obtain the most competitive race in the market and the other terms
and conditions.
The intensity is more competitive through innovations cost reduction assurance, customer
relation etc.
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CHAPTER – 6
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FINDINGS AND SUGGESTIONS
6.1 FINDINGS
Rubco is manufacturing eco-friendly products, making sure that it does not cause
any kind of harm to the society. This has created is subsequent effect regarding
the goodwill of the company.
Presence of good industrial relations with local unions and there is greater co-
operation between management and employees.
As a result of efficient monitoring and quality control of every stage of production
wastages and rejections are brought down.
Wage system is fair in RUBCO
Labour turnover is very low
Workers health and safety are given prime importance.
A good co-ordination exists between different departments.
In RUBCO RCM division there exists an opportunity to diversity the product line.
There is provision to manufacture other rubberized coir products rather than
mattresses, like cushions and furniture upholstery.
6.2 SUGGESTIONS
Considerably within a short period of time being established RUBCO division has
earned the reputation of being a leading manufacturer of rubberized coir mattress by virtue of
an enviable manufacturing infrastructure.
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Based on the study conducted the following suggestions are made:
RUBCO has to tap their 100% utilization of existing machine capacity in order to
tap market demand.
RUBCO has to adopt a strategy that would result in lowering the production and
distribution cost.
If the customers will be able make the orders online, the company will be able to
increase the sales, mainly abroad.
The company has to engage in production of variety products. It has to add new
product line thus widening its product min i.e. cushions and furniture upholstery.
The company has to make strengthen their supply chain in other states, in order to
tap the target market.
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CONCLUSION
The rubberized coir mattress industry has a great market in India. There are number
of mattress manufacturers in the market who are struggling hard to make an impact in the
mind of customers. Branded and unbranded mattresses are there in the market, unbranded
ones are concentrated on the local market. They are mainly giving attention to provide
customized product, who cannot afford to buy branded mattress at comparatively high price.
At present, mattress market has become one of the most competitive markets in India, which
spend huge amounts of money for advertisement and other promotional activity. Rupco is a
major player in this industry. The internship study is helped to make a valuable conclusion
through the analysis of different functional department of the Rubco. Presently it is ranked at
the top with consideration to quality.
Professional Management
Effective Leadership
Cordial relationship between employees and top level management
The company has well established network in industry with sound
manufacturing and marketing experience.
The company has adequate resources available for expansion.
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BIBLOGAPHY
1. Chary, S.N., Production and Operations Management, New Delhi, Tata Megraw
Hills Publishing Company Limited, 1997
2. Dessler, Human Resource Management, New Delhi, Prentice- Hall of India Private
Limited, 2003
3. KOTHARI, C.R., Research Methodology, New Delhi, New Age International (P)
Limited, 2004
4. Kotler, Philip, Marketing Management, New Delhi, Prentice-Hall of India Private
Limited, 2004
5. Robbins, Stephen, Fundamentals of Human Resources Management, New Delhi,
Wiley India Pvt. Ltd, 2005
6. Sarma, A.M., Industrial Relations, Mumbai, Himalaya Publishing House, 2007
7. AswathappaK, “ Human Resource and Personnel Management” 2nd Edition-New
Delhi, 2004
8. Shashi.K.Gupta and RoshyJoshy, “Human Resource Management”, Kalyani
Publishers, 2002
WEBSITES
http://www.rubcogroup.com/products/mattress
http://www.rubcomattress.com/products/mattress
http://www.rubcoindustry.com/products/mattress
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