INDUSTRY PROFILE

RUBBER WOOD INDUSTRY RUBBER PLANTATION SECTOR IN INDIAThe rubber industry is one of the key sectors of the Indian economy. Commercial cultivation of rubber in India started in 1902.India is one of the largest rubber producers in the world and occupies the 4th position in the production of natural rubber. Thailand, Indonesia and Malaysia occupy the 1st, 2nd and 3rd positions respectively, accounting for more than 9% of the global output. India ranks 5th in terms of acreage, 4th in terms of production and 1st I terms of productivity. The rubber plantation sector in our country is dominated by small holdings(less than 0.5 hectares) almost 10 lakh in number, covering 88%of the total area; and about 71 lakh of people derive their employment from rubber plantation sector either directly or indirectly. Rubber cultivation in India has been traditionally confined to hinder lands of south west coast; mainly the state of Kerala and Kanyakumari district of Tamilnadu. The non-traditional regions cultivating rubber include coastal Karnataka, Goa, Konkan region of Maharashtra, coastal Andhra Pradesh, Orissa, Tripura, Assam, Meghalaya, Mizoram, Manipur and Andaman Nicobar islands. Kerala contributes 90% of Indias total production of natural rubber; Also Kerala and Tamil Nadu together occupy 86% of the growing area of natural rubber.

IMPORTANT CHARACTERISTICS OF THE INDIAN RUBBER INDUSTRYThe following are the special characteristics of the rubber industry in the country, which make India a little different from many of the other natural rubber producing countries;

India is a major producer and consumer of natural rubber The rubber products manufacturing industry in India had been mostly inward oriented, catering to the domestic market In recent year India has entered the global market exporting both raw natural rubber as well as rubber products With its large population base India is emerging as a large market for rubber products and with the opening up of the economy, import of rubber products has also been increasing in recent years The rubber product mix in India is based mostly on the dry forms of rubber dictated by the requirement of the domestic market

ROLE OF INDUSTRY IN THE ECONOMYDue to various factors like extensive plantations good availability of raw materials availability of economical and technically skilled man power and a vast domestic market, India is all set to make a mark in the global rubber industry. India is ideally poised to supplement and compliment overseas manufacturers through joint collaborations and technical exchange to contribute substantially to the world rubber trade. The main purpose of rubber plantations is the production of latex, which is major raw material for all the rubber products manufacturing industries. In India, 72.2% of the production is processed as ribbed smoked sheets (RSS).block rubber, concentrated latex, crepe rubber and others constitute 9.8%, 10.5%and 7.77% respectively. a rubber tree with a useful economic life span of 23 to 30 years will yield high amount of latex . Also being a tree crop it has tremendous potentials for eco restoration. Rubber plantation also provides a variety of auxiliary products like honey seed oil rubber wood and scope for rearing honey bees Established in 1921, the Indian rubber goods manufactured industry has grown to the 4th largest producers and consumers of natural rubber. It is also the 4 th largest consumer of natural rubber and synthetic rubber. Put together, India has about 5000 rubber goods manufacturing units including large and small scale units .the range of rubber wood product manufactured in India caters to all most every sectors including the common people. it also helps a social cause through condoms. In tandem with the manufacturing sectors growth, the industry is posing to deliver high growth rates in the domestic and export sectors. Development of rubber wood industry in our base particularly in the automobile industry and the availability of competitive labor the country offers great opportunities for rubber products manufactures with country will help to generate employment strengthen national economy make rubber cultivation sustainable and preserve the environment. considering the large population and the large manufacturing further investments in r&d and infrastructure ,the country is poised to become a leader in rubber product manufacture in the years a head

COMPANY PROFILE

RUBCO HUAT WOODS PVT LTDRUBCO HUAT WOODS PVT LTD, registered under the company act 1956 is the rubber wood processing and furniture manufacturing factory of RUBCO set up with financial and technical collaboration with M/S long Huat group Berhard Malaysia a well known name in the field of rubber wood industry for the last 30 years .it was set up in the year 2000 with plant capacity of 40 000 metric tones per year and started commercial production only on January 2001. RUBCO HUAT WOODS PVT LTD is an ultra modern rubber processing plant situated in KINFRA small industries park in tellichery kannur district, with state of the art machines imported from various parts of the world

RUBCO HUAT WOODS PVT LTD is a world leader in rubber wood furniture industry .the factory is the largest rubber wood processing unit in the country and the plant employees around 8000 employees. This division manufactures a range of elegant furniture and quality edge glued panel using the eco friendly rubber wood. Rubber wood furniture range comprises of dining table and chairs designers wardrobe futon kitchen cabinets computer and office furniture and is available in a choice of design and finish. The EGP manufactured by the finger joining technology is easy to saw drill and bore and have an excellent nail holding capacity. Rubber wood properly treated and processed is emerging as the ideal substitute to rain forest wood, as it offers the same strength durability and finish as the latter and helps preserve the environment. The RUBWOOD furniture combines excellent aesthetics with long term durability, and comes in a variety of shades and designs, adding elegance to the interior of homes and workplace .the product are being exported to UK, USA, Japan and many other countries across the globe. The company also has technological collaboration with the Long Huat Berhard of Malaysia, through which the company received its finger joining technology. Along side the employees of rubco got the training from the representatives of M/S Long Huat Berhard of Malaysia during the initial stages of the production.

OBJECTIVES OF RUBCO HUAT WOODS PVT LTD Maximum utilization of production capacity Minimum number of rejections Low break down of machineries Low rate of complaints from the customers Maximum customer satisfaction

PLANT LOCATIONPlant location means the place where the plant is located for achieving maximum operating economy and effectiveness. An ideal location may not by itself guarantee success, but it certainly contributes to the smooth and efficient working of the organization. RUBCO HUAT PVT LTD is situated at KINFRA small industries park chonadam near thalassery, Kannur district of Kerala .The plant is located about 4 km from thalaserry town, spread over 18 acres of land and is also on the path of further expansion The main reason for the selection of location was the fact that it had favorable infrastructural facilities like power water and transport .The location is also beneficial in getting adequate supply of raw materials. There are two kinds of raw materials that are required for the production process they are direct and indirect materials. The direct material of rubber wood furniture production is the log rubber woods .These are mainly purchased from Kerala and Karnataka .The direct and indirect raw materials are easily available fro the near market. Continuous supply of power is another important reason for the plant location. The power is provided at cheaper rate compared to other areas because of the special subsidy package by Kerala KINFRA Structural Development Cooperation to the industries located in the special areas. Adequate supply of local labors is another advantage of the location of the plant and wages are given as per the Minimum Wage Act. The region is well connected with rail and transport system. Road transport system is mainly used for carrying the raw materials to the yard and the finished products to the markets .it also make use of rail and shipping transport; postal and telecommunication are also utilized The plant is 100% eco friendly and causes no pollution

INFRASTRUCURE

The company is located in 18 acre of land. It has sophisticated machines imported from Germany, Italy, Malaysia Japan UK, Taiwan and Netherlands. It has a combined layout capable for producing standard furniture continuously well as customized production on the request of consumers .The upgraded production capacity of the plant is 40 000 cubic metric tons/year The operation of machines is pollution free and the plant was accredited with pollution free award. The company has an electrical substation of 1250kv and has a stand by generator capable of producing 750kv electrical power to serve during power failure. The 220000 sq feet factory building is a single storied building with natural ventilation, natural lighting and enough working space for workers. The single storied buildings help the easy movement of materials with in the factory. The tool room and storage are located in the centers of the factory so that easy access from different production sections is possible. New multistoried office building will be completed in a short span of time. The company uses computerized punching system for keeping attendance. It has good canteen for the employees. Company provides drinking water in the factory at the easiest access to the workers

ORGANISATION CHART OF THE RUBCO HUAT WOODS PVT LTDChairman

Managing Director

General Manager

Chief Productio n Manager

Purchas e Manage r

Account s Officer

Admin cum personnel Officer

Sales & Shippin g Manage

Marketin g Manager

Producti on Manager

Store Keeper

Junior Clerk

Time Officer

Sales Executi ve

Asst Marketin g Manager

Shift Enginee r

Clerical Staff

Computer Programm er

Head Guard

Clerical Staff

Junior sales officer

Quality Supervis or

Section Supervis or

Maintenan ce Engineers

Sales Executiv e

Skilled/unskilled workers

PRODUCT PROFILE

PRODUCT PROFILERubber wood, properly treated and processed, is an ideal substitute to rain forest wood, as it offers the same strength durability and finish as the later. The technical properties of rubber wood which makes it ideal for making furniture are

colour Structure Figure

Cream to pale stream colour Uniform wood structure Cross section shows vague concentric markings, which resemble growth rings. the markings combined with large vessels give the timber an attractive appearance Density comparable to oak and teak Good binding strength Low shrinkage compared to teak Similar to that of hardwood

Weight Strength Shrinkage Chemical composition

The RUBWOOD furniture introduced by RUBCO HUAT WOODS PVT LTD, comprises of elegantly design modern furniture fashioned out of eco friendly rubber wood. Manufacturing in technical collaboration with M/S Long Huat Berhad Malaysia, it is the countrys largest rubber wood processing plant situated at thalaserry in kerala.The RUBWOOD range confirms to international standards in finish and durability .the RUBWOOD furniture is crafted from specially treated rubber wood for extra durability and finish. Following are the various ranges of products offered by rubco Huat Woodss pvt ltd.

RUBCO TIMBER PANNELRubco rubber wood pre-finished panels open unlimited possibilities in design and processing on pair with the highest standards unequal elegances .RUBCO timber panels are produced by the sophisticated process of finger joining and edge gluing ,using the resigns of polymers which are either white or translucent; and excellent finish or durability, is guaranteed .They also confirm to international quality standard. The solid Lumber panels of RUBCO are easy to saw, machine, drill, bore or strain. Sanded to 240 grit they offers smooth finish and excellent nail holding

capacity, making it the ideal usual-friendly choice of furniture manufactures and carpenters .This proven concept which is popular among builders and architects in western countries, offer the perfect solution the problems routinely encountered in handling various cross sections of timber scantlings. The panel boards are made to the standard of British Wood Preserving Assocaition.RUBCO timber panels are eco friendly; they ensure lower wastage of materials and cut down of labor, time and overall cost

The panel board specifications made by Rubco Huat woods pvt ltd are:

Data Minimum

Thickness(mm) Length(mm) Width(mm) 12 305 5200 150 1300

Maximum 50

RUBCOS timber panel come in varied size from 12mm thickness onwards with a maximum cross section size of 5200mm x 1300mm.RUBCO timber panel can be applied for the following uses:

Door and window frames Office furniture and partitions Modular tables and peripherals for computers Designer wardrobes Kitchen cabinets Dining tables and chairs etc.

RUBCO HUAT FURNITURE

The colonial furniture collection from RUBCO is the ideal way to add splendor and comforts to the home.RUBCOS range of the finished furniture range comes in varied shades coated with several layers of lacquers

The furniture ranges offered by RUBCO HUAT are:

Dinning table with chairs Computer tables TV stand Sofa sets Rocker chairs Cot Tables Designers wardrobe Futons Kitchens cabinets Teapoy Kids table Display rack

DEPARTMENTAL STUDY

FINANCE DEPARMENTFinance consists of rising, providing and managing of money, capital or funds of any kind to be use in connection with the business. The finance department is an organization which is responsible for managing financial activities off the firm. The finance department deals with a wide range of activities like planning rising controlling and administrating the funds of the business. In Rubco Huat Woods pvt ltd, the accounts officer is the head of the finance department and takes all the financial decessions.He is assisted by the clerical staff

ORGANIZATION STRUCTURE OF FINANCE DEPARTMENT

Managing director

General Manager

Accounts officer

Junior Clerk

Responsibility of accounts officer Maintenance of accounts Auditing company accounts Preparing of financial statement Preparing reconciliation statement Issue of TA bills, purchase bills and other miscellaneous bills

CAPITAL STRUCTURE OF RUBCO

The authorized share capital of RUBCO as per the byelaws is 300 crore made up of 25000 A class shares of Rs 10000 each - 25 crore 5600 B class shares of Rs 25000 each - 14 crore 26000 C class shares of Rs 100000 each - 260 crore 1000000 D class shares of Rs 10 each - 1 crore

A class shares are open to primary agricultural cooperative credit societies or banks, primary cooperative rural banks and rubber marketing societies functioning in the area of operation of RUBCO.

B class shares are open to Kerala State Cooperative bank, other state level cooperative federation or institution, district cooperative banks etc.

C class shares are open only to the Central and State govt and rubber board.

D class share are open to individuals, who are within the area of operations and having business association with RUBCO, either by keeping deposits or by supplying materials either for processing or for sale.

CAPITAL STRUCTURE OF RUBCO HUAT WOODS PVT LTDThe Rubco Huat Woods pvt ltd is 100% owned by Kerala State Rubber Cooperation. The annual turn over of the company is nearly 30 crores

ADMINISTRATION AND PERSONNEL DEPARTMENTHuman resource refers to the boy of persons employed in an organization. Human resource management is the art of processing employing and maintain competent workforce to achieve organization goals effectively.HRM is management functions that helps managers to recruit select train develop motivate and maintain members in an organization if focus on people is an organization. In Rubco Huat Woods Pvt ltd, the Administrative cum personnel officer (APO) is in the charge of this department, who is assisted by Time Officer

ORGANIZATION STRUCTURE OF ADMINISTRATION AND PERSONNEL DEPARTMENT

Managing director

General Manager

Administrative cum personnel officer

Time Officer

Head Guard

Computer Programmer

Receptionist

Junior clerk

Security Guard

Clerical Staff

Manpower deployment at Rubco Huat Woods pvt ltdThe company has a total workforce of 775, of which 120 are female, employed in different sections of work. The man power deployment is as follows:

Specialist / highly skilled workers 35 Skilled workers 146 Unskilled workers 347 Semi skilled workers 31 Learners 54 Casuals 73 Saw workers 35 Staff (including managerial staff) 54

Specialist or highly skilled workers they are mainly carpenters ,who concentrate on work like final sanding assembling of finished parts etc.They have more than 5 years experience in the concerned field. They receive a remuneration of 300/- + VDA per day (Variable daily allowance, VDA is Rs 4 / day) Skilled workers they are specialized in doing a particular job or operating a specialized machine .They are basically ITI / ITC diploma holders with 4-5 years experience in the concern field .They receive remuneration of Rs 250 + VDA/day. Semi skilled workers they also do specialized task but of lesser complication or less risk, mainly female workers involved in specialized job under this category they receive a remuneration of Rs 220 + VDA / day. Unskilled workers they are workers who have undergone initial 6 months training in the company they receive a remuneration of Rs 111 + VDA / day. Learners they are newly selected workers who undergo training for the first 6 months and then are promoted to unskilled category, based on their performance they have a remuneration of Rs 90 + VDA / day Casual workers they work only in the saw mill section. Casuals are entrusted with job of sorting of rubber wood, stacking , pallet clearing etc

PURCHASE DEPARTMENTThe purchase department plays an important role in the organization, since purchasing has its effect on every vital factor concerning the manufacture, quality cost efficiency and prompt delivery of finished goods to the customers. Purchasing is the act of buying an item at a price. The main objective of purchasing is buying raw materials of the right quality, in the right quantities, at the right time, at the right price, and from the right source. Purchasing is a vital function of materials management as the moment an order is placed for the purchase of materials a substantial part of the companies finance is committed, which affects the cash flow position of the company Rubco Huat Woods Pvt Ltd has an efficient purchase department which is entrusted with the purchasing of quality raw materials in the required quanity, at the right time for the entire departments functioning in the organization. The head of the purchase department is the purchase manager

ORGANIZATION STRUCTURE OF PURCHASE DEPARTMENT

Managing director General Manager Purchase Manager

Asst Purchase Manager

Store keeper

Store assistant

Unskilled workers

FUNCTIONS OF PURCHASE DEPARTMENTThe company mainly requires two types of materials direct and indirect materials. The direct material is the round log rubber wood and indirect materials include hardware items used for production. The amount of materials purchased by Rubco Huat Woods Pvt ltd is around Rs 30 lakh per month, which comprises of items like;

Round log rubber wood Hardware items like screws, nuts, bolts, nails, lock and keyset Chemicals like boric acid and borax Finger joining glue Finishing items like lacquer, thinner, Steiner, sanding paper etc.

The company makes use of VED analysis (Vital Essential and Desirable) for grouping the materials based on their criticality for the purpose of purchasing

The company purchases rubber wood from eight suppliers, mainly located at Perumbavur, Taliparamba, Kasargod, Iritty and Peravoor in Kerala. The company also owns a rubber estate in Sullya, Karnataka. Purchase committee checks the quality of the raw materials Purchase comprises of purchase manager, accounts officer, saw mill supervisor and Quality supervisor. As a substantial portion of companies finance is used for the purchase of rubber wood the purchase department should keep in mind the following specifications at the time of purchasing rubber wood The logs of rubber wood must have a minimum 24 inches diameter It must have minimum 4-8 feet length There must be nor or very less tapping marks bending nails etc The logs having excess fiber should be rejected

The items which are frequently purchased include glue, chemicals sanding paper and packaging items. Most of the items are purchased from local markets with in India. The finger joining glue is made by a German company based in Mumbai. Lacquer is imported from Korea and Saudi Arabia whereas thinner is from Dubai.

STORES DIVISIONA store is an important part of an organization which has an active production department. stores is defined as supplies of goods. Store is the function of receiving storing and issuing of Materials. The stores is a place were all critical and consumable goods are stored Critical items are those which are essential for the production with out which the production cannot be carried out; whereas consumable items are those which are used o support production process .Stores ensure ready accessibility of major materials there by providing efficient service to users. Minimization of store cost and continuous supply o materials are the prime functions o the stores. At Rubco Huat Woods Pvt Ltd, the stores section is headed by the store keeper, who comes under the direct purview of the Purchase Manager.

ORGANIZATION STRUCTURE OF STORES DIVISION

Managing director

General Manager

Purchase Manager

Store keeper

Store assistant

Unskilled workers

The company has four major sections for stores for storing raw materials and finished goods .They are : Stores for rubber wood Stores for saw mill and impregnation Stores for glue, paints, packing items and tools Stores for finished goods Panel boards and furniture

The major items stored in the store for saw mill and impregnation are Hardware items for sawmill Chemicals Boric acids and Borax

The major items stored in the store for EGP, finishing and packing are: Hardware items like screw, bolts, nuts, locks, bearing. Finger joining glue Finishing items like lacquer, thinner, Steiner, sanding paper etc Spares and tools

Stores are maintained under First In First out (FIFO) method. The sores section maintains a reorder level and reorder Quantity. When the items reaches the reorder level the stores section issue purchase requisition

PRODUCTION DEPARTMENTProduction is the process of conversion of raw materials and other inputs into finished products, using men machine and tools. Production consists of sequence of operations that transform materials from a given form to a desired form. The highest efficiency in production is obtained by manufacturing the required quantity of products, of the required quality, at the required time, by the cheapest method. At Rubco Huat Woods Pvt Ltd, the chief production manager is the head of the production department, who controls the overall production activities with the help of assistant production manager and shift engineer.

ORGANIZATION STRUCTURE OF PRODUCTION DEPARTMENT

Managing director

General Manager

Chief Production Manager

Production manager

Shift engineer

Quality supervisor

Section supervisor Skilled / unskilled workers

Maintenance engineers

The plant operations are divided into six sections, each section executing different operations of production .Each sections is monitored and controlled by section supervisor, who records the day to day operations of the concerned sections in a register .Section supervisors compare the days labor and productivity; and report to the chief production manager. The worker report directly to the concern supervisors

The workers in the production department can be classified as; Specialist / highly skilled workers Skilled workers Unskilled workers Semi skilled workers Learners

The worker in the production department works in two shifts in a day 8.30am5.00pm and 5.00pm-1.00am.But the boiler and seasoning chamber work 24hrs a day and so maintenance department works 24hrs taking three shifts .So a part of the production department ie Maintenance department works 24 hrs ; even on holidays and harthals.

WORK FLOW MODEL (END TO END)The overall production process at Rubco Huat Woods Pvt Ltd can be dividing into six important sections where each sections carries out an individual process of the overall production, the six important sections of production are:

Saw mill and boiler section S4S section EGP section Furniture section Finishing section Assembling , Packing & Dispatching section

Saw mill & boiler sectionThe production process begins from the log yard. The rubber wood supplied by the suppliers are unload at the factory log yard in the presence of the security guard, who maintains a register to the detail like the name ,weight of the load, and date of receipt. The quality department checks the log for any visible defects The main operations at the saw mill & boiler sections can be divided into three stages Sawing Chemical treatment / impregnation Kiln drying

Sawing The rubber wood from the yard is directly sent to the saw mill. The saw mill operations are controlled by the saw mill supervisor. At the saw mill the rubber wood log are first weighed by the means of Weigh Bridge. Then the wood under go the process of sawing, whereby the rubber wood logs are cut into required length and width. It is estimated that only 48% of a rubber wood log can be used for the production and the rest 52% of the wood is unfit/wastage due to tapping marks, curb, nails etc.So when logs are taken the quality checkers inspect the quality of rubber wood and grade them

Three types of saws are mainly used for sawing.1. Band saw it helps to cut thick and huge rubber wood logs into smaller ones.

There is one band saw for this purpose.2. Re-saw the logs that are cut by the band saw are taken here. The logs are cut

in to the required width and size according to the instruction given by the supervisors. There are 10 number of re-saw in the factory3. Jump saw- the logs cut from the re-saw are taken to jump saw, where the logs

are length wise cross cut and made into smaller ones according to the specifications given by the supervisors. There are 12 umber of jump saw in the saw mill section.

After the sawing process the chopped pieces of rubber wood are brought to conveyer belt and the pieces are sorted according to the width length and thickness. The sorted wood pieces are stacked over a trolley by using aluminum rods and they are tied well.

Chemical treatment / impregnation The stacked wood pieces are taken in a trolley to the impregnation chamber. Natural rubber wood is a soft wood in which the glucose content is higher than the cellulose so a rubber wood is easily attacked by the fungus, bacteria and other insects. The impregnation process is done to provide rubber wood the resistance from the attack of insects and fungus; it increases the durability of rubber wood. The chemicals used in impregnation process are Borax and Boric acid in the ratio 3:2 72kg of borax and 48 kg of boric acid are mixed with 4000 liters of water in the mixing tank of the impregnation chamber. The stacked rubber wood pieces are then fed into the impregnation chamber and dipped into the chemical mixture. About 15 bars pressure is applied in every 15 min for about 2.5hrs. At this high pressure the chemical penetrate into the inner most layer of the wood and its sap is removed. It gives the rubber wood hardness and also resistance from the attack of the fungus and other insects.

Kiln drying / Seasoning The stacked wood pieces, after the impregnation process are taken to the kiln drying section. Kiln drying is a quick method of seasoning the timber so that the moisture content of the logs is reduced to 8-10% and the wood pieces become light weighted.

Stacked wood pieces are placed in the drying chamber and arranged in rows and coloums.There are 10 drying chambers of 72 cubic meter capacity and almost 70 stacks of one cubic meter each can be feeded in one chamber. The wood stacks are dried with he help of hot air that is passed to the drying section from boiler, through pipelines. The temperature of the kiln drying chamber is maintained at 65 degree Celsius throughout the day continuously till the moisture content of the wood reaches the required level Moisture content is measured with the help of computerized equipment. It takes approximately 10-21 days in the seasoning chamber for the wood pieces to reduce the moisture content to 8-10%. Hence the boiler section and the seasoning chamber function continuously for 24 hrs , till the moisture content reduces to the specified level. After the kiln drying process the semi finished product known as RSKD (Rough Sawed kiln Dried) is stored in the store, till it is taken for further processing.

S4S sectionAfter the kiln drying process the dried wooden pieces are then transferred to S4S section. The machine in the S4S section and their functions are:

Two side plainer this machine is used to rip the top and bottom sides of the wooden pieces and smooth the surface. Multiple ripsaws- this machine rips the remaining two sides of the wooden piece, thus smoothing the sides and reducing the width to the desired specification. After the operation of both two sides plainer and multiple rip saw the wood pieces will have smooth surface on all four sides. (S4S means smooth 4 sides) Jump saw the wood pieces which have smooth surface on all four sides are further cut into desired length with the help of jump saw.

Sorting process The rubber wood pieces are sorted and classified into groups based on its quality, color and damage. It is done manually .The timber is classified into following categories.

A grade - if two sides of the timber are clear. B grade - if only one surface of the timber is clear. C grade - if both the surfaces are not clear.

X grade if all sides are clear. Clear wood is the first quality

EGP sectionFor the manufacture of furniture and panel boards the wood piece should have certain length and width. So the wood pieces should join properly. It is done by the process called finger joining which is based on the Malaysian technology. The various machines used in the section are1) Finger joining machine

In finger joining process the finger joining machine is used to make long timber pieces. The timber after sorting process from the S4S section is sent to the finger joining machine.10-12 pieces of rubber wood having the same width but may vary in length are horizontally arranged and fed to the finger joining machine. At first these woods are cut in its edge 90 degree with the cutter machine. Then these pieces automatically pass through a finger utter machine which rotates at high speed. The finger cutter machine gives a teeth shape to the each sides of the timber and the timer moves automatically to the other side if the machine which is glue spreader. The glue spreader sprays the glue PVA (Poly Vinyl Acetate) to one side of the timber. The side of the timber to which the glue is spread is known as the female part and the other side is known as the male part of the timber. Each timber is then fed one by one to the feeding machine where the male side of the timber is joined to the female side of the timber. In the feeding machine there is a sensor which helps to measure the length of the rubber wood pieces and the jump saw cuts the rubber piece in to the required the length. A hydraulic pressure pump presses the two sides of the long timber and it helps the tight joining of the rubber pieces. After this an iron beam automatically falls on the surface of the timber to increase the hardness. There are 3 finger joining machines in the EGP section. After making the long timber it is kept aside for a day for the drying and setting of PVA. These long timbers are then sent o t the moulding machine to mould the four sides of the timber.

2) Radial arm saw

If any defect occurs in the finger joining process the timber is sent to the radial arm saw. The machine consists of a high speed rotating saw which cuts the default area. After the default area is removed then the timber is once again sent to the finger joining machine.

3) Moulding machine This machine is used to mould the four sides of the rubber pieces that are joined by finger joining machine. The moulding width is adjusted according to the requirement.

After moulding these rubber pieces they are sent to the hydraulic rotary composer machine for composing. These machines are imported from Malaysia. 4) Hydraulic rotary composer There are three hydraulic composer machines in the EGP section to do the composing. A conveyer and a glue spreader are attached to each hydraulic rotary composer which is used for making panel boards of different sizes. The timber pieces of equal thickness from the moulding machine are used for making boards. As the rubber pieces pass through the conveyer the glue spreader spreads glue on either side of the timber pieces. Hardener is also used to make the board hard. It is used at the ratio of 1:10 that is 150g of hardener is mixed with 1kg of the composing glue. Hydraulic pressure is applied whereby the long wooden pieces are pressed to form panel boards. It varies with the thickness of the wooden pieces. For making panel boards pressure is applied for minimum half an hour whereas wooden beams requires at least 40 min of pressure. 5) Panel saw machine The panel saw machine equipped with a scoring saw gives a smooth cut the sides of the panel board to give the correct shape. It is also used to cut the panel board to the required size.6) Sanding machine

Wide belt sander is used for sanding the panel board to give it a fine and smooth finish. Two numbers of three head wide belt sanders give a superior finish to the panel boards and table tops.

Finishing for panel boards Finally at EGP section the panel boards are tested for its quality. Skilled workers check the panel boards to identify any minor defect occurred in the process. The holes in the boards are corrected by the wood putty (wood powder mixed with glue) and finished by sand paper. After quality checking the finished panel boards known as EGP boards (Edge glued panel board) are sent to dispatch where as furniture parts are sent to the furniture section.

Furniture sectionThe overall operations of the furniture section are controlled by the section supervisor. This section produces different types of furniture using a variety of machines of which many are imported and costly machines. Rubco provides a variety

of house hold furniture like sofa set cots dining table with chair TV stand wardrobe etc

Finishing sectionThe furniture items from the furniture section are sent to the finishing section. Here the activities are controlled by the concerned section supervisor. The finishing section has two main units a) Sanding unit b) Spray painting section Sanding unit The furniture items come first to the sanding unit of the finishing section. A material mix called sand putty is used to fill the finger joints, holes and scratches on the furniture parts. After filling sanding is done. 180 grit sand papers are used for sanding. After sanding the furniture items are sent to pallet conveyor and hanging conveyer in the spray booth section depending on the size of the furniture parts. Spray painting section Here there are two types of conveyors - pallet conveyors and hanging conveyors both having spray booths attached to it. Pallet conveyor spray painting of large sized furniture items are done with the help of pallet conveyor. There are about 70 pallets in the conveyor, which is used to hold the furniture Hanging conveyor spray painting of small sized furniture parts is done with the help of hanging conveyor. There are 525 hangers in the conveyor where various parts of 150 chairs can be hanged at a time.

Spray booth This is used to spray Steiner, sealer and lacquer. There are two spray booths in the hanging conveyor and four spray booths in the pallet conveyor. In every spray booth there is water flowing through huge pipes from top to bottom over a metallic background. At the time of spraying Steiner or sealer the excess chemical sprayed is washed away by the water. The various coats of spray applied in the painting section are: Steiner The type of Steiner depends on the type of colour that is required. Different colours are given to the furniture based on the requirement. The general using colours are:

Honey Northern rose wood etc

First sealer After spraying the Steiner the conveyor is stopped for drying the Steiner and after drying the furniture items moves through the conveyor and reaches the second spray booth where a sealer is sprayed over the side of the furniture, then it is sanded. Second sealer The concentration of Steiner and sealer depends on the colour specification. After spraying the second sealer the conveyor is stopped till it dries and then it is sanded. Lacquer It is the final stage of spray painting. It gives a shining appearance to the furniture. Then the furniture is dried in room temperature. After drying it is send to the assembling and packing section

Assembling, packing & dispatching sectionFrom the finishing section the furniture is sent to the assembling section where the activities are controlled by section supervisor. At Rubco only chairs are assembled after finishing while the rest of the parts of sofa, cots, table etc are only finished and then send to domestic dealers and other agencies. After assembling, the quality of the products are checked and damaged and defective parts are sent for repair. After quality checking by the quality department the products are sent for packing. The finished panel boards come directly to the packing area of the EGP section. The finished goods are over with p-form and bubble sheet and placed in cardboard so as to protect it from mishandling during transit.

QUALITY CONTROL DEPARTMENTQuality of a product is a customers perception of the degree to which the product meets his / her expectations. It is the sum total of features of a product which influence its ability to satisfy a demand. At Rubco the entire activities of the quality control department are controlled by quality supervisor. The department is responsible for maintaining and improving the quality of products. About 25 people are working in this department.

ORGANIZATION STRUCTURE OF QUALITY CONTROL DEPARTMENTManaging Director

General Manager

Chief Production Manager Production Manager Shift Engineer Quality Supervisor Quality Assistant Skilled/unskilled workers

Rubcos quality objectives High yield from input materials Low levels of rejection High level of profitability Low level of machine break down Less customer complaints Maximum utilization of plant capacity Enhance competence of employees

Quality control testsThe quality control department at rubco conducts following tests at various stages of production, to verify whether the chemical physical and functional specifications are met. Some of the tests conducted by the department are:

Dry salt retention test - after the impregnation process Reagent test or penetration tests - after the impregnation process Moisture content tests after seasoning of the wood Boiling water soak delamination test done on EGP Cold water soak delamination test done on EGP

MAINTENANCE DEPARTMENTMaintenance refers to upkeep and protection of plant, building, machinery and other fixed assets of the firm, which are subject to deterioration due to their use and exposure to environmental conditions over a period of time. At Rubco there is a well equipped maintenance department to look after the proper functioning of the plant and machinery. The maintenance department of the company has three chief engineers, each responsible for the maintenance activities of electrical, mechanical and civil areas. The maintenance department undertakes all functions related to maintenance and report its activities to the chief production manager.

ORGANIZATION STRUCTURE OF MAINTENANCE DEPARTMENTManaging Director

General Manager

Chief Production Manager Asst Production Manager Shift Engineer

Electrical maintenance engineer

Mechanical maintenance engineer

Civil maintenance engineer

Skilled / unskilled workers

Sections of maintenance departmentMechanical section Mechanical section undertakes weekly inspection and lubrication of machine tools and other equipments. The room is functioning under the mechanical engineer. The welding function is also performed in the tool room

Electrical section Electrical section ensures uninterrupted power supply to the production unit. In case of power failure the company uses generators. The electrical consumption of the company depends on the production capacity. Electricity charges of the company come around Rs 10-12 lakh per month.

Civil section The civil section is concerned with maintaining service facilities such as water gas steam compressed air heating and ventilation plumbing and carpentry work maintaining drainage and fire fighting equipments.

MARKETING DEPARTMENT

Marketing is meeting needs profitably. It is a human activity directed at satisfying the needs and wants through an exchange process. In Rubco the entire range of products is marketed by RUBCO Sales International Ltd (RSIL). They formulate marketing strategy for both domestic and international market. The marketing department is headed by marketing manager. He is assisted by junior sales officer in Kerala and by sales manager outside Kerala.

ORGANIZATION STRUCTURE OF MARKETING DEPARTMENTManaging Director

General Manager

Marketing Manager Asst Marketing Manager

Inside Kerala

Out side Kerala

Junior Sales officer

Area sales manager

Sales executive

Sales executive

Promotional tools

Promotion involves a variety of techniques, including advertising sales promotion; public relation and personal selling that are used to communicate with the potential customers. The customers of Rubco are informed in the following ways: Advertisement in print and electronic media. Conducting dealers meet once in a year. Discounts on bulk purchase of products. Gifts pack during festival season

Advertisement and publicity Advertisement helps the organization to create awareness to their products and about the organization itself, among the target audience. Advertisement also helps in building a strong image of the product or brand apart from increasing its sales. The advertisement methods followed by RUBCO are: Ads through press media Ads in visual and electronics media Sales promotion schemes Hoardings Exhibitions Branding of the product The products produced by the company are sold under the brand name RUBWOOD furniture Pricing policy Rubco follows cost based pricing policy. The price of the product is compute by adding a certain percentage of profit to the cost of the product per unit. Discount The company provides 2% trade discount on furnitures and boards. If the per purchase value exceeds Rs 8 lakh then 10% discount is given.

SALES AND SHIPPING DIVISION

Rubco Sales International Ltd (RSIL) is the sales and marketing outfit of entire RUBCO group of companies. The company has already well established dealer / distributor network and it is expanding its horizon through out the world. RUBCO has a sales and shipping officer, who controls the sales activities of the company on behalf of RSIL. Shipping is the activity taken by the central excise and they check all the products in the company itself to avoid damages incurring in loading. It is done at Cochin shipyard.

ORGANIZATION STRUCTURE OF SALES AND SHIPPING DIVISIONManaging Director

General Manager

Sales and shipping manager Sales executive Clerical staff

SWOT ANALYSIS

Swot analysis

SWOT is acronym for Strength Weakness Opportunity and threat. SWOT analysis is a technique for analyzing a firms competitiveness by assessing organizations internal strength and weakness and impact of environmental opportunities and threats. An organization should evaluate its internal characteristics to determine its strength and weakness, and the relevant external environmental factors to determine the opportunities and threats. The SWOT analysis of RUBCO Huat Woods Pvt Ltd is:

Strengths of the organizations

Honored with ISO 9001-2001 certificate Strong brand name and reputation of the company in the market Wide range of quality of products Technological collaboration with M/S Long Huat Company in Malaysia Preferred by customers for its quality products Good financial management system of the organization. Trust worthy suppliers who supply quality raw materials Company owns a rubber estate in Karnataka Highly competitive skilled and experienced workforce Effective material management system High utilization of machines for production Good relation with trade unions Wide market acceptance in short period

Weakness of the organization

Under utilized plant capacity In capacity to meet market demand Improper utilization of work force Low productivity Lack of proper training to the employees to meet the changing work High price compared to the competitors Very low promotional activities Not attracting new customers as rapidly as competitors Low retail outlets

Opportunities for the organization

Since company has not utilized 100% plant capacity, they can undertake new projects Company is trying to find new markets in European countries Rubco is starting a new venture, shoe factory in Tellicherry. High market demand for quality and branded furniture items Cheap labor easily available in the neighboring states

Threats for the organization

Increasing price if rubber in domestic market Scarcity of domestic supply of rubber wood Imported furniture from china available in market at cheaper prices Recent inflation in the global economy Competition from domestic companies as they started using the technology of finger joining Changes in the countries export policies Availability of furniture in market in variety of designs and colours

7s MICKENSY MODEL

BACK GROUND OF THE MODEL

The 7s model is better known as Mc Kensys 7s. This is because the two persons who developed this model. It is developed by tom peters and Robert waterman. They published their 7s model in their article structure is not organization (1980) and in their books the art of Japanese management (1981) and in search of excellence (1982).

Struct ure Strat egy Shar ed Valu es Skill Style Syst em

Staff

Mickensys 7s model

The 7s model is a tool for managerial analysis and action that provides a structure with which to consider a company as whole. So that the organizations problems may be diagnosed and a strategy may be developed and implemented. The 7s of Mckensys model are: Strategy Structure System Style Staff Skill Shared values

These are the 7 s elements are distinguished in so called hard Ss and soft Ss. The hard elements are feasible and easy to identify. They can be found in strategy statements corporate plans organizational charts and other documentations. The four soft Ss however, are hardly feasible. They are difficult to describe since capabilities values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organizations. Although the soft factors are below the surface, they can have a great impact of the hard structure , strategies and system of the organization.

Practical relevance of hard SHere strategy, structure and system can consider as Hardware of success of an organization.

Strategy Actions a company plans in response to or anticipation of changes in the external environment.

HRM strategy of Rubco Huat Woods Pvt Ltd To provide social welfare measures to work force To make the best and efficient To recruit and select right person for the right job at the right time in the right place.

Production strategy of Rubco Huat Woods Pvt Ltd Producing high quality of goods Quick production of products or goods Efficient use of raw materials Minimize the waste in the production process

Financial strategy of Rubco Huat Woods Pvt Ltd Maintaining the perfect accounting and auditing system Reducing the block of capital Maintaining the cash receivables

Marketing strategy of Rubco Huat Woods Pvt Ltd To create new customers To motivate the sales team Making profit through customer satisfaction Develop a pricing strategy

StructureOrganizational hierarchy - RUBCO rubber wood division.

Chairman

Managing Director

General Manager

Chief Productio n Manager

Purchas e Manage r

Account s Officer

Admin cum personnel Officer

Sales & Shippin g Manage

Marketin g Manager

Producti on Manager

Store Keeper

Junior Clerk

Time Officer

Sales Executi ve

Asst Marketin g Manager

Shift Enginee r

Clerical Staff

Computer programm er

Head Guard

Clerical Staff

Junior sales officer

Quality Supervis or

Section Supervis or

Maintenan ce Engineers

Sales Executiv e

Skilled/unskilled workers

Organizational hierarchy RUBCO

SystemThe formal and informal procedure that support the strategy and structure.

System of HR in Rubco Huat Woods Pvt. Ltd The system oh HR undertaken by Rubco is enough competent for leading their employees towards the ultimate objectives. Below given the diagram briefly explain the system of HR in Rubco.

Resource Requirement

Resource Planning

HR budgeting

Resource allocation

Selection process

Responsibili ty allocation

Performanc e verification

Appraisal employees

Training on job

Posting for new area

Performanc e evaluation in the new area

Designing of system in new area

Implementat ion of HR system in new area

Study the conformanc e in the new area

Check the effectivenes s of each employee

Allocation of duties, responsibilities and authority of each personnel

HR system in Rubco

Practical relevance of soft SSkill, style, staff and shared values can be seen as the software of success of an organization

SkillThe Rubcos recruitment is mainly through advertisement in leading newspaper based on the recruitment of the organization. The MD consulting with administrative personnel officer to decide the number and type of people needed for the organization.

Qualification required for the personnel Technical staff Office staff : ITI/Diploma and 1or 2 years experience : Degree, sufficient computer knowledge, Fluency in English and minimum 2 years Work experience. Managerial personnel : Minimum 5 years of work experience, Qualified from reputed institution and have a relevant knowledge in the latest Computer terminologies and MBA

StyleIt says about how the decisions are made and the flow of authority in the organization. The Rubco was using the participative leadership style order to take the decision is taken by the management by discussing with concerned supervisors or workers. The organization is taking the day to day decision such as the quality of output usage of materials, purchasing etc are determined by the production manager to concerned supervisors or workers. So the decision making is decentralized.

StaffThe term staff refers to the way organization introduce young recruits into the main stream of their activities. Around 775 workers are working in the company. They are

Specialist / highly skilled workers 35 Skilled workers 146 Unskilled workers 347 Semi skilled workers 31 Learners 54 Casuals 73 Saw workers 35 Staff (including managerial staff) 54

Shared valuesThese are the guiding principles, fundamental ideas around which a company is built. It must be simple usually stated at the abstract level, have great measuring inside the organization even through outside may not understand them. These are the main values on which the company is built. These values are shared by the members in the organization. It remains customer focused by providing the quality cost and through manufacturing excellence, adopts a continuous of all organization activity to meet dynamic requirement of customers. It empowers all employees across the organization to achieve total quality. The company aims at customer delight by exceeding expectation blend of quality-cost-delivery of the companys products and services that company provides.

FINANCIAL SUMMARY OF RUBCO HUAT WOODS PVT LTDProfit and loss account for the year ended 31-03-2010 Particulars 1-04-09 to 31-03-10 Opening stock Finished goods Raw materials 34,52,383.96 77,97,861.26 1,12,84,226.0 8 Purchase accounts Furniture handicraft Nt Mattresses Nt Mattress-taxable-Nt Purchase-non taxable Purchase-others Nt Plastic and steel furniture Nt Raw materials form 18 Raw materials Nt Purchase-taxable Purchase-timber-25A Purchase timber-5A Purchase timber-against C form Purchase timber form 18 3,09,419.33 58,59,363.05 8,61,038.79 1,24,481.25 3,85,343.56 1,35,554.00 7,22,597.76 59,82,837.63 76,500.15 8,06,273.95 310,000.00 2,17,738.00 3,49,296.00 1,61,17,583.5 3 Direct expenses 21,48,452.29 Direct incomes Goods transferred to exhibition Stock transfer to branch Closing stock Finished goods Raw materials Work in progress 8,31,050.00 8,36,331.54 34,85,406.93 79,96,440.27 1,02,415.94 1,15,84,263.14 Sales accounts Sales Non taxable Sales Taxable 1,62,24,538.84 87,32,575.70 2,49,57,114.54 Particulars 1-04-09 to 31-03-10

Stock transfer branch Gross profit c/o

from 30,46,404.55 56,12,092.77 3,82,08,795.2 2 3,82,08,795.22 Gross profit b/f Indirect income Accounting charges CST-12.5% collected Discount received Sales tax collected 2.3% Sales tax collected 9.2% 25,000.00 1,17,065.18 24,445.00 54,797.67 5,08,686.43 56,12,092.77

Indirect expenses EPF paid Auditors fee

1,46,715.00 19,13,311.00 7,500.00

Auditors fee for tax 8,265.00 audit Ban charges Bank interest 35,424.87 6,19,515.89

Bank interest on term -1,27,486.78 loan Bonus Cellular phone charges Cst paid Depreciation Electricity charges Finance charges Insurance premium Loss on sales of vehicle Office expenses Postage and telegram Preliminary written off 89,979.00 1,59,085.00 1,18,172.50 12,90,427.62 3,53,036.62 92,571.28 62,752.70 29,197.20 11,108.00 4,131.50

Sales tax collected 1500.75 KGST-13.8% Vehicle collection 4,45,040.00 11,74,535.03

expenses 2,170.00 30,884.00 37,200.00 37,302.00

Printing & stationary Purchase tax paid Rates & taxes

Rent Repairs & maintenance Sales tax paid St paid-03-04 St registration charges TDS paid Telephone charges Vehicle Exp Batta Vehicle Exp fuel Vehicle insurance Vehicle maintenance Vehicle tax paid

70,800.00 1,02,061.00 6,09,230.50 29,498.93 1,650.00 5,997.00 20,555.00 89,008.00 1,55,826.86 63,999.00 30,472.26 7,960.00 3,82,08,759.2 2

Net profit Total

5,884,307.47 67,86,627.80 Total 67,86,627.80

Balance sheet as on 1-04-09 to 31-03-10

Liabilities Capital accounts Share application Share capital

As at 31-03-10

Assets Fixed assets

As at 31-03-10

26,000.00 1,47,32,000.00 1,47,64,000.00

Building computer & software Office furniture equipments Plant and machinery

63,86,821.30 56,940.00 & 2,82,230.11 40,317.00 10,88,632.23 5003.73 18,97,948.73 99,14,303.32

Loans (liability) Bank OD a/c Unsecured loans 54,35,665.35 14,55,906.81 68,91,572.18 Current liabilities Deferred tax liability Sundry creditors Employees contribution to pf 10,64,012.00 3,65,790.00 77,40,595.30 12,539.00 91,82,935.30

Power and electricity Tools and equipment Vehicles

Current assets Closing stock Loans & advance Sundry debtors Cash in hand Bank accounts Chappanagadi branch 1,15,84,263.14 2,89,523.68 5,49,155.39 19,66,003.19 9,694.43 18,17,987.27 1,62,16,627.10

Miscellaneous expenses ( assets)

Deferred expenditure

revenue 2,13,141.50

Profit & loss Account Opening balance Current period Total 3,08,38,507.46 Total 50,78,743.01 -5,84,307.47 3,08,38,507.46

Ratio analysis for the year 2010 Sl no Ratios 2010

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Current ratio Liquidity ratio Absolute ratio Debt equity ratio Proprietary ratio Fixed assets to net worth Debtors turn over ratio Gross profit ratio Net profit ratio Selling admin expenses Working capital turnover Funded debt to total capital ratio Solvency ratio Debt service ratio

0.9:1 times 0.56:1 0.1:1 6.5 0.06 10.16 6.4 24.76 2.9% 29.35 9.286 76.88% 15.57% 1.87 times