SANOOP. V

Project Report 2006 Dept. of BBM

S.E.S COLLEGE S R E E K A N D A P U R A M

PROJECT REPORT ON

An overall study on the Kanhirode Weavers Co-operative Production And Sales Society Ltd. kannur

DECLARATION

This is to certify that the project report entitled “An over all study about

the Kanhirode Weavers Co-operative P & S Society Ltd., Kannur”, submitted

Taliparamba Arts & Science College,Kanhirangad 1


to Kannur University in partial fulfillment of the requirement for the award of the

Degree of Bachelor of Business Management (BBM) is a record of original

work done by me during my period of study in Taliparamba Arts & Science

College, Kanhirangad, under the guidance of Mr. Ajai Abraham Thomas,

MBA.

Place: KANHIRANGAD SANOOP . V

Date: Reg No: 78950



ACKNOWLEDGEMENT

I am grateful to Mr. V.V. Kunhikrishnan, M.A, B.Ed, Ph.D, Principal

Taliparamba Arts & Science College, Kanhirangad, for permitting me to take up

this project work.

I wish to express my sincere thanks to Mr. P.V. Kamalakshan, M Com,

B.Ed, MBA, Head of the Department of Business Management for the help, co-

operation and advice extended to me throughout the study.

I wish to express to my sincere thanks to Mr. Ajai Abraham Thomas,

MBA, and faculty guide for the continuous and valuable information rendered to

me in completing my study with in the allotted time.

I thank Mr. Bhaskaran, the secretary of Kanhirode Weavers co-operative

P & S Society Ltd., for giving permission for conducting the project work in their

esteemed organization.

I express my deep sense of thank to Mr. Biju, Quality Handling officer and

Mr. Gireesh Kumar, Production Manger, for their continuous help and motivation

which help to me complete my study successfully.

Last but not least I thank my bellowed loving friends and all those helped

me in completing the study.



CONTENTS

CHAPTER HEADING PAGE NO.

1 INTRODUCTION 5

2 AREA WISE ANALYSIS OF HANDLOOM IN KERALA

10

3 RESEARCH METHODOLOGY 16

Objectives of the study

Research methodology

Limitations of the study

4 COMPANY PROFILE 18

5 DEPARTMENTS IN THE SOCIETY 37

6 PRODUCTION DEPARTMENT 40

7 MARKETING DEPARTMENT 43

8 PERSONNEL DEPARTMENT 62

9 FINANCE DEPARTMENT 72

10 PURCHASE DEPARTMENT 79

11 QUALITY CONTROL DEPARTMENT 86

12 FINDINGS AND SUGGESTIONS 93

13 CONCLUSION 96



CHAPTER I

INTRODUCTION



INTRODUCTION

The handloom was devised about 2000 Years ago and was brought to

England by the Romans. The process consisted of interlacing one set of threads

of yarn (the warp) with another (the weft). The warp threads are stretched

lengthwise in the weaving loom. The wefts, the cross-threads, are woven into the

warp to make the cloth.

Weaving remained unchanged for hundreds of years until John Kay

devised the flying shuttle. This enabled a weaves to knock the shuttle across the

loom and back again using one hand only. The speed of weaving was doubled,

and a single weaver could make cloths of any width, whereas previously two men

hand sat together at a loom to make broad cloth. By 1800 it was estimated that

there were 250000 handlooms in Britain.

Kerala, the greenish land lies between the western ghat and Arabian Sea,

about 15000 square miles with varying scenic beauty. Kerala is known as the

epitome of India. Historically Kerala has long been a land of racial mixture and

co-existence.

The milestone in Kerala’s history is that by first Christian church, First

Muslim mosque and first synagogue were established in Kerala. A number of

historically important Hindu Temples can be seen in Kerala.

Tolaracne and cosmopolitan out look are the characteristics of a “Keralite”.

This may be attributed to the religious and trade contract, which existed for

centuries with out side India. Handicraft handloom weaving, ivory works, Weaving

of coir are well known heritage of Kerala.Kerala handloom industry carries a vital

role in states economy as well as in the field of employment.



A very large number of looms are located in rural areas. The rhythm of

handloom can be heard in almost every village in Kerala. There are men and

women weavers for whom weaving is a way of life. In early days majority of

handloom weavers followed the hereditary line. The main communities engaged

in weaving are saliyas and devangas. With the available information it is clear

that the saliyas and devangas migrated from the near by princely states.

Earlier they were producing cloth for their own consumption and for the

need of their village. Increase in production and improvement in transport

facilities removed the hindrances of time and easy the exchange of commodities.

The skill of weaving has been passed from parents to children.

During 15th century, British, French and Portuguese people visited Kerala.

The things like spices, ivory and beauty of handloom fabrics attracted them. They

began to purchase large quantities and exported to their countries.

Germany has established a mission called ‘Basal mission’ in 1829. This mission

paved the way of changing form home production to factory system. Apart from

this, French people started to give training in weaving. The imported versatile

loom and introduced principle designs from hooks.

After the British captured India they took up and nourished handloom

industries fro the purposes. At the end of 18 th century the monopoly came to an

end. Since 19th century with the advent of Industrial revolution, The English

people gave up all. They started mechanical production in their land during this

period of foreigners the weavers of Kerala learned al techniques and they

paralleled the way for the production of furnishing fabrics according to the new

style of demand.

During the dawn of 20th century, the Sree Narayana movement influenced

Kerala society by and large prompting the caste-based culture to change towards



secular and modern industrious culture. So that many people from traditional

Thiyya/Ezhava community had take up their employment in handloom industry to

do away with the to day tapping to respond with the advice of Sree Narayana

Guru. These changes also have its own mark in making the present shape of

Kerala handloom industry. It has resulted in the production of various types for

artistic handloom goods in Kerala.

The women all over India for their fineness of count and natural colours,

texture and gold borders praise the ‘Kerala Kasavu Sarees’. Kerala is also known

for its unbleached cotton handloom crepe popularly known as ‘Kora’ cloth this

has entered in the foreign market and occupied a proud place in the garment

industry.

The secret of furnishing fabrics from Malabar is the excellent structure and

texture of the cloth, unique colour combination, wide width (98” - 120” ) and

craftsman ship. When we look back to the history of Kerala, it can be seen that in

1498 vascode Gama, the Portuguese navigator visited Calicut in Malabar. So it is

well known that 15th century handloom cloths of excellent qualities were exported

to Asian and European countries.

Balaramapuram, in Thiruvananthapuram district is the most historically

important place for handloom fabrics. The weavers belong to saliyas were

migrated from Nagar Coil and Thirunalveli in Tamil Nadu during the time of

Balarama Varma before 250 Years. Here they produced super fine ‘Mundum

Neriyathu’, for the need of royal family. Still they are existence and carry

important part of the total production. The technique of producing superfine

fabrics spreaded from them to the local weavers in Balaramapuram and

surrounding places. Initially they were producing ‘Mundu’ for men with 0.4cm of

width of “Kara” (cross border) with black yarn. Before 100 years the jeri from

Surat takes to Balaramapuram and “Kasavu Sarees” production was started.



Koothampalli in Thrissur district is also well known for handloom fabric.

Here Devangas immigrated from Karnataka are engaged in weaving. The

‘Kasavu Sarees’, which are being produced here, is mostly with half fine jeri. The

middle class people would like to purchase this sarees because of its cheapness.

The price of a saree can be reduced from 5000 to 1000 by using half fine jeri

instead of pure jeri.

Chendamangalam, in the Eranakulam district is also an important

handloom center in Kerala. Here they have been producing the double and

‘Mudnu’ and ‘Neriyathu’. The distinction of these fabrics is in its structure in the

plain structure, they have producing a special effect in weft direction.



CHAPTER II

AREA WISE ANALYSIS OF HANDLOOM IN KERALA



AREA WISE ANALYSIS OF

HANDLOOM IN KERALA

Kerala has 14 districts from Thiruvananthapruam to Kasargod. The

handloom industry is spread allover the state. But the handloom industry is

concentrated in certain places. The southern Kerala is famous for its superfine

products, like sarees, dhothies and ‘Set Mundu’ etc. The middle Kerala also

engaged with such products. Btu while going to northern side called Malabar the

main production changed to coarser verities like furnishing items, spreads, towels

etc. The common production in Kerala is ‘Thorthu’ (bathing towel) and ‘Lungies’.

Almost two lakhs of weavers are earning their livelihood from handloom 75% of

the mare in the co-operative line. Almost five lakhs families are depending upon

handloom industry.

A district wise analysis gives us a clear out idea about the places where

handlooms are concentrated and the places, which are important for traditional

verities.

1. THIRUVANANTHAPURAM:

The capital city has its own historical importance. And in the map of

handloom also it has an important place. There are 349 societies and 44700

weavers are working with their looms. The main products of district are fine

cotton textures; during with special design Balaramapuram is very famous for its

fine grey sarees with Kasavu (Jeri). The other products here are set mundu

‘mundum neriyathum’- (Traditional dress for a malayalee lady) ‘Mundu’ (dhothi for

men), Earezha thorthu (bathing towel) ‘Melmundu’ etc. Other places where

handloom concentrations are Parassala the south most of Kerala where weavers

are involved in weaving of sarees, dhothis, etc. Cheravinkeezhu, Kulathur are the

other places where handloom density places. Here also the productions are as

explained above be range of counts is 60s – 120s. The jeri used here is superfine

one.



2. KOLLAM:

The very old city has few handloom production places. Her almost 80 co-

operative societies with 10271 registered weavers with their looms. In this district

almost all varieties produced in Kerala are produced in small scale. In olden days

the Kollam was an important port in south India. So the effect of exporting items

are effected the weaves in Kollam district Lungies, Furnishing items, Erazha

Thorthu, Sarees, Dhothies are the main products. Terry towels, Jacquard durries

we also produced.

Kollam, Karunagappally, chathannur, are the main places related to

handloom in the district. The products from these places are mainly for domestic

market. Therefore colours, fashions etc of these products suit the domestic

market.

3. PATHANAMTHITTA:

There are seven co-operative societies and 165 registered looms are here.

With these 281 weavers are earning their livelihood. In this district the main

products are lungies and dhothies.

4. ALAPPUZHA:

Alappuzha is very famous for its coir products. Coir weaving also done

with the hands only. But its is considering as another wing. The main products in

these centers are mainly dhoties, sarees, lungies, erazha thorthu, etc. There are

25 co-operative societies with looms and 2309 weavers in this district.

5. KOTTAYAM:

In Kottayam district the main products are Earezha Thorthu, Panimundu,

and Lungies. They are also producing bed sheets and sarees. There are 16

societies with looms and 1853 weaves are here. Kidangoor, Karingannoor, are

main centers.



6. IDUKKI:

In this district there are 11 societies and 414 weavers with their looms. The

main products are sarees, lungies etc.

7. ERANAKULAM:

‘Chennamangalam Sarees’ is famous in Kerala. This fine grey sarees are

the product of Eranakulam District. The main products are super fine double

dhothies, synthetic and silk sarees, matching set etc. In Paravoor 120s fine

double dhothies are produced. In east Eranakulam, earzha thorthu, and cheaper

variety bed sheets are produced. There are 30 societies and 8494 weavers with

their looms.

8. THRISSUR:

The cultural capital of Kerala has an important role in the tradition of

Kerala. Here a traditional variety named ‘Koothampally Saree’ is produced.

Koothampally is a place situated in Thrissur. The productions are set mundu,

woven with half fine jeri., Dhothies, Lungies are also produced in this district.

There are 30 societies in Thrissur and 6052 weavers.

9. PALAKKAD:

In this district is handloom weaving is very popular Chittur, Pudunagaram,

Kollengode, Peruvemba, Karimpuzha are some of the handloom concentrated

place situated in the district. Here main products are sarees, dhothies, lungies

etc. here silk sarees production also started recently. There are 45 societies and

11236 weavers depending on the handloom weavers with their looms.



10. MALAPURAM:

A number of Muslim weavers are here. The main places are Tiroor, etc.

The main products are furnishing items, which influenced from Calicut and

sarees, lungie. There are 13 societies and 2774 weavers.

11. KOZHIKODE:

The district from Malapuram to Kasaragod known as Malabar. The

famous “Malabar loom” came from this place only. The other famous of this place

is, in olden days famous “calico cloth” came from Calicut only. In olden days

foreigners established some companies. Some of them remaining now also.

“Common wealth Trust” which is situated in Calicut is one such company. The

main products are mainly meant for export. Furnishing, Jacquard products, Bed

sheet, Tablemats, coarser varieties etc. The products are mainly coming from

Malabar loom.

The products from Kozhikode have an excellent value in domestic market

also. The main centers are Kozhikode, Qualandi, Vatakara, Chombal, and

Maniyur etc. There are 41 societies (most of them are industrial societies) are in

this district.

12. WYANAD:

There is not that much important in this high range. There are only four

societies in this district and 136 weavers. The products will be a part of Calicut

and Kannur.

13. KANNUR:

Kannur is called as “the Manchester of Kerala”. The famous Kannur sports

shirting, varieties like crepe is the donation of this district. The weavers are

mainly working industrial societies.



For export of handloom products Kerala mainly depending upon the products

from Kannur. The main products are shirting, made-ups, Jacquard, Furnishing,

Turkish towels, Sateen sheets, Crepe such export oriented and Lungies, Earzha

thorthu etc for domestic purpose. The products are coaser varieties Kannur

Mundu are a popular variety.

The main centers are Kannur, Azhikode, Chirakkal, Kanhirode, Irinav,

Morazha, Mayyil, Panoor, Kuthuparambu, Kalyassery, and Pappinissery etc.

There are 73 societies established in this district and with about 50 exporters in

private sector together have, 13667 weavers working this field.

14. KASARAGOD:

Kasaragod is the north most district in Kerala. Here sarees are produced

and export varieties also produced here. Kasaragod, Mancheswaram are main

centers. 11 societies are here and 3401 weavers working in there societies.

Kasaragod sarees are very famous in Kerala. Now a days there is a very

good demand for the silk sarees woven with different colours pattern and

ornamented sarees.



CHAPTER III

RESEARCH METHODOLOGY



RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY:

To know about the administration and management of KWCS.

To know about the production processes carried out in the KWCS.

To know about the personnel policies of the KWCS.

To known about the marketing strategies of the KWCS.

To know about the quality control measures used by KWCS.

To known about the financial policy of the KWCS.

RESEARCH METHODOLOGY:

Primary data is collected through personal interview with manager,

secretary, and other staff of the society.

Interactions with various departmental heads and supervisors.

Secondary data is collected from company’s annual reports and other

published materials.

LIMITATION OF THE STUDY:

A detailed study could not be made due to time constraints.

A comparative study with a similar concern was not made.



CHAPTER IV

COMPANY PROFILE



COMPANY PROFILE

The Kanhirode weavers co-operative P & S society is one of the main

handloom manufacturing unit in Kerala. This society is registered as a co-

operative society under the Act of VI of 1932 (Madras) on 16-9-1952 and started

its function on 05-10-1952. At that item it’s paid up share capital was only 10,130

Rupees. It is also known as “weaveco”.

The main object of the society is to provide regular employment to poor

workers at a reasonable wages and there by improving the standard of living and

economic conditions of the weavers.

In the initial period, the company ahs only 200 members and they

produced “Thorth” and “Pudava”. They sold these products in their locality by the

weavers. Later bullock cart have used to carry these goods.

The society is engaged for manufacturing various kinds of cotton fabrics.

Which is suitable for export market as well as local market. The 1964-65’s was

the period, which gave the society a hope to shine in the textile world and they

started to produce shirting, lower count lungies. Which were sold different parts of

the country through agents.

During 1973-74, the society started to producing crepe fabrics which

attached orders of merchant exporters. Then again started production of

furnishing fabrics suitable for export market and the products to merchant

exporters.

The Kanhirode weavers co-operative society is an ISO 9001-2000 certified

company. It is the first ISO certified handloom co-operative society in the state.

The society has very good market for its products.



The society’s address shall be Kanhirode village, Kanhirode post in the

Taluk of Taliparamba, in the cannanore district. Its operation shall be confined to

Kanhirode and Kuttiatoor Amsam in Taliparamba Taluk, Munderi and

Anjarakandy Amsams in Kannur and Koodali in Tellichery Taluk.

The company having workforce of 500 workers and 300 working looms

with various width capacity from 48-90 inches. It includes five looms for silk. They

are also having 30 stitching machines and two dehumidification rooms to keep

the geniuses of fabrics.

Majority of the society employees are females. There by ensuring the

economic freedom of the major households in around the locality.

The company mainly producing different items like lungies, shirting, saten

and printed bed sheet, bed spread, Dhothies, Towels, Thorth etc. for local market

and furnishing fabrics, jacquard items, shritings, crepe, bed sheet, table cover,

Napkin, Cushion covers etc for export markets. For the last 8 years the company

engaged in direct exporting. The earn 75% of profit from international markets.

They produced goods on the basis for customers requirement.

For the diversification of products, the company had established a silk

weaving centre, and a jute development center, quality dyeing unit etc. the

society had availed financial assistance from central and state government for the

following purposes.

1. Working capital for handloom development centre.

2. Silk weaving unit.

3. Quality draining unit.

4. Project package scheme.

5. Jute development centre.



The important requirements for any business activities are land, labour,

capital and organization. This company ahs permanent building and adequate

workforce, storage places and other working environment requirements as per

the factory act of Land. The company also has adequate equipments for

manufacturing as well as other documentation requirements like computer and

other accessories. Al these facilities are very helpful in the success of this

society.

The society has a better working environment. The workers enjoy the best

working atmosphere. Like space, machinery, wages etc. fabrics and made-ups

manufacturing is not hazardous to the personnel involved in it. How ever the

company strictly supported to all mandatory requirements of safety like fire

extinguishers, first aid facilities.

LOCATION OF KWCS.

Kannur, “city of Looms and lores” lies in northern part of Kerala. The

kanhirode weavers co-operative P & S society Ltd. is located at Kudukkimotta.

This place is 15KM away from Kannur and it is near to the Mattannur.

VARIOUS FECILITIES AVAILABLE IN THE KWCS.

Cabinet dyeing machine with capacity of 250 Kg.

Dyeing chamber with capacity of 500 Kg.

300 working looms with up to 90 inches.

10 numbers silk weaving loom width up to 90 inches.

Dehumidification rooms for moisture control of fabrics.

In house stitching unit with 30 numbers juki machines.

VISION OF KWCS



A complete range of handloom fabrics inheriting age-old tradition of classic

warp weft combinations importing modern chrematistics of convenience without

compromising up on the core values of quality.

The fabric range has been created through adequate research and

expertise that will enable Indian textile to acquire a competitive edge in global

market.

AWARDS GOT BY KWCS:

1. The first ISO 9001-2000 certified primary handloom co-operative society in

the state.

2. The contribution of the society in the field of craftsmanship was well

appreciated and awarded with GOLD MEDAL for the BEST

PERFORMACNE by the ministry of textiles, Govt. of India during 1993-94.

3. The Govt. of India had selected this society for participation in international

Trade Fair at Frankfurt, Germany during 1995 and 2004.



MEMBERSHIP

The liability of the members of the society shall be limited to the share

capital subscribed by them.

The capital of the society shall for the present be Rs 4000000/- made up of

40000 shares of Rs 100/- each. The value of each share shall be paid either in

one lumsum on allotment, or installment, when paid in installment Rs 25/- shall

be paid at the time of taking share and the balance in five months commencing

from the months subsequent to that in which share was taken. In the case of

weaver members, installment maybe collected, as stipulated in bylaw 16 CA. The

monthly installments shall be paid on before 15th day of the months to which it

relates.

Application for admission as members and for allotment of shares shall be

made to the secretary in the form, if any, prescribed by the society for the

purpose. The Board of Directors who shall be disposed of by the Board of

Directors who shall have power to grant admission or to refuse it without

assigning reasons shall dispose of every such application.

Every member shall take at least one share, but no member shall take

more than 50 shares. But this application is not applicable for the share

participation by the Government of Kerala. In very member except govt. of Kerala

shall pay on entrance fee or Rs 5/- for each share taken by him, at the time of

taking the share, provided that the total payment of entrance fee by any member

of all the shares held by him shall not exceed Rs. 5/-.

No member shall be permitted to withdraw any of the shares held by him

in the society with in three years after the date when he took such shares. But a

member may with draw shares with the consent of the board of directors after

such period, provided, firstly that he has given at least six months notice of



withdrawal, secondly that the total amount of share capital that is permitted to be

withdrawn in any one year does not exceed 10 percentage of the aggregate paid

up share capital of the society, as it was on June 30 th proceeding, thirdly that

there are no debits due to the society and fourthly, that there are no debts due to

the society in regard to which he has stood surety. When a member withdraws

shares under this bylaw, he shall be paid back the share capital actually paid by

him with the dividend declared if any.

The Govt. of Kerala shall have the right to withdraw the share participation

in the society at any time with out assigning any reason thereof.

A past member shall be liable as provided in bylaw 3 for the debts due by

the society, as they existed on the date when he ceased to be member, for a

period of two years from such date.

The estate of a deceased member shall be liable as provided in the bylaw

3 for the debts due by the society, as they existed on the date of his decease for

a period of two yeas after his decease.

No member shall be permitted to transfer his share or shares or create a

charge in respect of the same in favour of another member or person except with

the previous sanction of the Board of Directors.



MANAGEMENT OF THE SOCIETY

Subject to such resolutions as the general body may from time to time

pass the Executive Management of the affairs of the society shall vest in a Board

of Directors. The Board of Directors shall consists of not more than a members of

whom 7 members shall be elected as stipulated in bylaw No. 20 and the two

members shall be nominated by the District industries officer from his staff and

their term of office shall be subject to the direction of the District Industries

Officer.

The members of the board of directors shall be elected as per the rule 35

of Kerala co-operative rules for a period of five years from among the members

for the period of the members of the Board the year shall begins from the date of

assumption of the office. A retiring member of the Board shall be eligible for re-

election. After the member of the Board of Director are elected they shall elected

from among themselves a president and a vice-president.

All the members of the Board of Directors shall vacate their offices on

completion on their term of five years unless the period is extended by the

Registrar under sub-rule (2) of Rule 39 of the Kerala Co-operative Rules. All the

members of the board of directors shall be elected at one and the same time for

the specified period of five years. Any interim vacancy or vacancies, which has

not been filled, may be filled up by the election as per rule 35 of Kerala co-

operative rules for the unexpired portion of the original period. The proceedings

of the board of directors shall not be invalidated on account of any vacancy or

vacancies of the board that remain unfilled.

Any member of the board of directors may at any time resign from his

office by sending a letter of resignation to the secretary of the society but such

resignation shall take effect only from the date of the society but such resignation



shall take effect only from the date on which it is accepted by the board of

directors. The board shall appoint a full time paid secretary from among suitable

qualified persons approved by the general manager. District industries officer,

Kannur. The secretary shall not have a seat in the board.

The board of directors shall meet once a fortnight or oftener, if necessary

to conduct the affairs of the society. The president or in his absent. Vice-

president shall preside over the meeting of the board. In the absence of the both

a chairman shall be elected from among the members present. The quorum for

the directors meeting is four. All the questions before the board of directors shall

be decided by a majority of votes. Should there be an equality of votes the

president or other presiding members shall have a casting vote. No member of

the board of directors shall be present at any meeting of the board of directors

shall be present at a meeting of the board when any matter in which he is

personally interested 15 being discussed. In case of urgency where there may

not be sufficient time to convene a meeting of the Board of Directors and in all

case in which such a procedure may from time the secretary may obtain the

orders of the Board of Directors by circulation of papers among members present

at the headquarters of the society such division arrived at by circulation shall be

placed before the next meting of the board of directors for their rectification. It

should a difference of opinion arise in the course of such circulation the member

shall not be decided by the circulation but shall be placed before a meeting of the

Board of Directors.

Any member of the Board of Directors who commits default in respect of a

loan taken by him from the society shall ipso facto be considered disqualified to

continue as an office bearer. But if the default has been for a period of 3 months

or less, the defaulter may reinstated by the General body on his showing good

cause for the default. In no circumstances a defaulter continue to hold office as a

member of the board of directors if his default has continued for more than three

months.



Receipt shall be issued for all moneys paid to the society. For moneys

paid by members the receipts shall be signed by the president or the secretary,

or the manager who ever is selected by the board of directors to discharge his

function. In the case of borrowing from non-members or from other society the

receipt of the bond shall be executed by at least four members of the board of

directors of whom the president shall be one.

The board of Directors shall have power to prescribe from time to time the

scale of office establishment and to inure such expenditure as may be necessary

for the management of the society with reference to the scale and with in budget

allotment sanctioned by the general body for each year which will be subjected to

the approval of the Dy. Registrar. It shall be competent to the secretary to insure

the peti contingent expenditure subject to a maximum of Re. 1/- for any time. The

board of directors shall be competent to fix the amount and nature of the security

if any, to be given by the office establishment, as prescribed by the Registrar.

The services of the members of the Board of Directors shall be gratuitous

except as provided under bylaw 50. They shall be eligible for sitting fee for

attending the board, sub-committee meeting and the president shall be eligible

for a daily allowance for attending the office. The board of directors shall also

eligible for Traveling allowance for the journey performed in connection with the

affairs of the society. The rate of sitting fees, daily allowances and Traveling

allowances should be fixed by the committee and approved by the registrar.



BOARD OF DIRECTORS OF KWCS

1. Sri. Kala Balan : President

2. Sri. K. K. Narayanan : Vice-President

3. Sri. K. Rameshan : Director

4. Sri. M. Pavithran : Director

5. Sri. V. M. Rajan : Director

6. Sri. P.P. Kumaran : Director

7. Sri. P. P. Kumaran : Director

8. Smt. P. Sumithra : Director



COMPANY ADDRESS

Name of the Company: The Kanhirode Weavers co-operative

P & S Society Ltd., No. L.L.44

Registered Office: Kanhirode (P.O),

Koodali (Via)

Kannur Dist.,

Kerala – 670592

India

Telephone: 0497-2857259

0497-2857865

Fax: 0497-2858546

E-Mail: [email protected]

[email protected]

[email protected]

Website: www.weaveco.com

Bankers: Kannur Dist. Co-operative Bank.

SBI

SBT

Auditors: Dept. Co-operative society,

Asst. Registrar office, Kannur.



PRODUCT PROFILE

The Kanhirode Weavers co-operative P&S society Ltd. produced different

types of handloom products for local market and international market. They are

as follows.

For Local Market:

Lungies

Shirtings

Satin and printed bed sheet

Dhothies

Towels

Thorth

Saree

International Market:

Furnishing Fabrics

Jacquard items.

Shirtings.

Crepe

Bed sheet

Bed spreads

Table cloth

Napkins

Cushion covers

Curtains

Sofa cases

Sofa covers

Floor mats

Bolster



ACTIVITY CHART OF KWCS


Buyers order Yarn Purchasing Boiling

Inspection

Vertical warping Bobbin winding Dyeing

Beaming

Sewing

Drawing & Denting Pirn winding

Cutting Weaving

Inspection

Button holing & buttoning Pressing

Finishing & Packing

Inspection

Billing Stock entry Pricing

Dispatch


ORGANISATION STRUCTURE


Board of Directors

President

Secretary /CE

Management Representative

Manager Export & Administration

Weaving Master

Dyeing Master

Business Manager

Production Manager

Q.A Supervisor

Quality controller

Store Keeper finishing works

Accountant Accounts Assistant


AUTHORITY AND RESPONSIBILITY

1. President:

He is responsible to:

To take policy divisions of the company.

To make investment division, long term financial commitments and

diversification plan of the company in consultation with board of directors.

2. Chief Executive/Secretary:

He is responsible to:

Define and document the company’s quality policy and objectives.

Provide adequate resources for implementing QM.

Discharge the duties of purchase manager.

Over all operations of the company.

Allocation of various resources to the different departments.

Assessing the training needs of the HOD’s and initiates training programs.

New customer development.

Attend the fair ad develop new markets and new customers.

Procure orders for the company.

Handling customers complaint.

Define company’s long-term business plans.

3. Management Representative:

Establish, implement, maintain and monitor quality system.

Control the distribution of QM, SOP, WI and TAD.

Plan and arrange internal quality audit.

Co-ordinate the activities concerned with the external agencies.

Responsible to reporting to the top mgt on the performance quality

management.



4. Manager-Raw material purchase:

Establish and document specification for raw materials and accessories.

Assess the availability of raw materials and accessories as per the

requirements.

Purchase the raw material through purchase orders.

Development the new raw-material suppliers.

Acts as a factory manager.

Maintain inspection status of raw materials and accessories in the store.

Production, planning and control activities.

Responsibility for issues of materials, stock updating, and material

reconciliation for yam, dyes and chemicals.

5. Weaving Master:

Plan and execute the production activities at the weaving production units.

Allocation of work to various workmen.

Ensure the product characteristics during production.

Assess the training needs of the work force in weaving dept.

Initiate the corrective action in the dyeing and weaving dept.

Preserve the approved samples/customer samples with proper

identification.

Acts as custodian of grey and dyed yarns.

Maintenance of weaving machines.

6. Quality Assurance supervisor (QAS):

Ensure inspection of yarn, dyes and chemicals accessories, and fabrics,

made up and garments at all stages.

Maintain inspection status of raw materials in process and finished goods.



Arrange proper handling, storage and presentation of raw materials and

accessories.

Prepare suppliers evaluation record.

7. Production Manager:

Develop new samples as per the requirements communicated by CE.

Develop designs from the existing samples.

Prepare costing details of samples.

Ensure the all required accessories are available in the unit before made-

ups the production started.

Initiate the corrective action and preventive action as necessary.

Help the CE in the mater of matter of marketing activities.

Responsible for verification of yarn, dyes and chemicals.

8. Dyeing Master:

Production, planning and control in the dyeing dept.

Maintenance of the dyeing machines.

Prepare the recipe as per the shades required.

Maintain the master shade card.

Approve dyed yarn before issued to further processing.

Safe keeping of dyes and chemicals in procurements.

9. Manager Export & Administration:

Handle all export/import and banking formalities.

Liaise with clearing agents regarding the shipments of merchandise.

Communicate with customers.

General administration of the company.

Carry out stock verification activities.

10. Business Manager:



Assist secretary to procure orders.

Assist the secretary to co-ordinate with buying houses and buying

agents.

Assist the secretary to handle customers complaints.



CHAPTER V

DEPARTMENTS IN THE SOCIETY

DEPARTMENTS IN THE SOCIETY



The Kanhirode weavers co-operative society is one of the famous

handloom products manufacturing society in Kerala. This society working under

the co-operative societies act. The overall control of the society is the secretary of

the society controls came under the board of directors and all day-to-day

activities.

This society has different departments for functioning different specialized

activities. The main departments in this society are production department,

Finance departments, Marketing departments, Personnel department, Quality

control department and purchasing department.

Weaving and dyeing are the main production process in the society. They

produce different types of handloom products for local market and international

markets. The foreign countries have heavy demand in handloom products so

they mainly concentrated in export marketing.

Production is the main activity in the society. The production department

functioning very well in this society. They are designing and producing quality

products as per the requirements of the parties for local market and international

market. They utilise the equipments, labours and other facilities in the society in a

maximum manner and to make uninterrupted production of goods.

The finance department of in the society, prepare various financial

statements like trading ale, P & L ale, Balance sheet etc. This society has its own

finance department under a financial manager.

The marketing department concerned with the marketing of the goods

produced by the society. It is one of the important functions in an organization.

The efficient marketing department helps to achieve the organizational

objectives. It is very important in handloom manufacturing



Industries. The problem of marketing is greatly affecting the industries in India,

especially in Kerala. Many cotton mills and cotton textile industries are closed

due to the inefficient management of the marketing area.

Personnel department is concerned with the obtaining and maintaining of

a satisfied and satisfactory work force in an organization. It is an extension of

general management. The primary objective of this department is to satisfying

employees and achieving organizational objectives. This society provides various

welfare measures to its employees for motivating them.

The quality control department plays an important role in an organization.

This society has an efficient quality control department headed by the quality

assurance supervision (QAS). This department checking raw materials, work-in-

progress and finished goods and to ensure the quality. It conducts various tests

for ensuring quality.

The main raw materials used in the production like yarns, dyes, and the

purchasing department purchases chemical. This department purchase material

on the basis of quantity of production. They mainly purchased materials from

National Handloom Development Corporation (NHDC). It may be either on cash

or on credit basis.



CHAPTER VI

PRODUCTION DEPARTMENT



PRODUCTION DEPARTMENT

Among all the functional areas at management, production is considered

to be crucial in any industrial organization. Production is the process by which

raw materials and other inputs are converted into finished goods. It means

generation of goods or services to satisfy customer’s needs. The other word

synonymously used with production is manufacturing. Manufacturing is

understood to refers to the process of producing only tangible goods. Where as

production include creation of both tangible goods as well as intangible service.

Production management refers to the application of management

principles to the production function in a factory. In other words production

management involves application of planning, organizing, directing and

controlling of to the production process.

The application of management to the field of production has been the

result of at least three developments. First is the development of factory system

of production. Until the emergence of the concept of manufacturing, there was no

such thing as management as we know it. It is true that people operated business

of one type or another, but for the most part these people were owners of the

business and did not regard themselves as managers as well. The second

essentially stems form the first, viz, the development of the large-scale

organization with many owners and the necessity to hire people to operate the

business. The third reason stems from the work of many of the pioneers of

scientific management who were able to demonstrate the value from a

performance and profit point of view, of some of the techniques they were

developing.

The production department is normally under a production manager. He

assists the production functions. The production manager is the co-ordination link

between production department and the society.Production department must

work in coordination with planning as that both of the production target and as

estimated by the objectives are achieved.



The production department maintenance the progress of different departments in

the society. The production manager has to the responsibility to the co-ordinate

the availability of raw-materials, machines, labours etc. and also fore cast any

possible delays which could affect the production. The efficient working of the

production department can prevent delays before they arise and there by

ensuring maximum utilization of production capacity.

The inspection department in factory has a major responsibility in as much

as it has to estimate loses due to low quality material purchasing, control in time

all detective production and ensure quality of raw materials, work in progress and

finished goods. A good inspection department is very helpful for achieving

production quality.

PRODUCTION SYSTEM IN KWCS LTD.

The kanhirode weavers co-operative P & S society produces different

types of handloom products for local market and international market. They

produce products on the basis of orders. This society has its own production

factory with inches looms. There are 345 workers are engaged in production

process. They produce pure cotton products with different colours and designs on

the basis of order received from parties.

The main raw materials used in the production are;

Yarns

Dyes

Chemicals

Accessories



They purchase these raw materials from Government agencies, National

Handloom Development corporation (NHDC) and also purchase materials from

private firms. At the time of purchase materials from NHDC, they provide different

subsidies. The purchase of raw materials either on cash or on credit basis. The

purchase department does this.



PRODUCTION CAPACITY

SCOURING

IN HOUSE 6000 Bundles/Month

BLEACHING & DYEING

IN HOUSE 6000 Bundles/Month

WEAVING

Width Monthly In house capacity Monthly outsource

100 Inches 500 Mts 2000 Mts






36 to 42 Inches 2000 Mts 2000 Mts

JACQUARD


STITCHING

IN HOUSE 4 machines

OUT SOURCE 25 machines



PRODUCTION PROCESS CHART


BOILING

DYEING

WINDING

WARPING

WEAVING

QUALITY INSPECTION

CUTTING & SWEING


PRODUCTION PROCESSES IN KWCS

The main production processes in Kanhirode Weavers Co-operative

society Ltd. are as given below.

Boiling

Dyeing

Winding

Warping

Weaving

Quality inspection

Cutting & Sewing

1. Boiling

Boiling is the first step in the production process. It is done for removing

the impurities present in the yarn used for bleaching and dyeing. Fro the boiling

process they use wood as fuel. The processed yarn is bleached using bleaching

powder/and hydrogen peroxide according to the requirements.

2. Dyeing

Dyeing is the process of impregnating the fiber, yarn or fabric with the

dyestuff. Dyeing can be done on the yarn, fiber or fabric. It is the method by

which colour is applied to the fabric. Usually they are dyeing the material on the

yarn stage.

3. Winding

Winding converts the package of the yarn the hank yarn is wounded on

the pirn (small bobbin used in handloom weaving) for preparing the weft. It is

done manually, especially of ladies are engaged in this work.



4. Warping

Warping is the preparatory stage for weaving. Which prepares the yarn for

weaving. Cones of yarn are created on to a machine and winding about 500 to

700 threads produce a sheet of yarn on beam together.

5. Weaving

Weaving is interlacing of vertical yarn (warp) and horizontal yarn (weft).

Depending on the type of the weave, warp yarn sheet is divided and lifted. Weft

yarn is carried across in a pirm held in a shuttle. This is the basis weaving

process. The shuttle is thrown from one end of the warp sheet to another end by

hand.

6. Quality Inspection

Quality of the products is thoroughly checked by trained and qualified

employees. The inspection is carried out various stages such as purchase of raw

materials, during manufacturing process and final stage to assess the status of

the product for acceptance or other wise.

7. Cutting & Sweing

The made-ups are then stitched at the society. Styles are followed in

precision with great care given to detailing in each and made-ups items. This unit

has a workforce of 45 workers.



CHAPTER VII

MARKETING DEPARTMENT



MARKETING DEPARTMENT

The success of every business organization depends on providing right

product at right time in right quantity to the customers. Marketing deals with all

activities, which create, promote and distribute products in accordance with the

customers demand.

Marketing management is another important functional department in the

society. It is concerned with decisions and policies relating to the marketing

activities in the business. The concept to market has three inter related aspects

place; which pre supposes a convenient meeting place for the buyers and sellers.

Area aspect; which limits the market to a convenient area, the demand aspects

which implies customer demand. Marketing is the process of discovering and

translating the consumer needs and wants into products and services. And they

in turn making it possible for more and more consumers to enjoy more and more

of those products and services.

This society produced products mainly for exporting. In the society more

than 75% of the products are exported.

The KWCS Ltd produces different types of handloom products for local

market and international market.

For Local Market

Lungies

Shirting

Satin & Printed bed sheets

Dhothies

Towels

Thorth

Saree etc.



For International Market

Furnishing Fabrics

Jacquard Items

Shirtings

Crepe

Apron

Bed sheet

Bed spreads

Table cloth

Napkins

Cushion covers

Curtains

Sofa cases

Sofa covers

Floor mats

Balster

Terry towels

Other made-ups etc.

This society mainly exported to UK and USA. And other countries are

Australia, France, Germany, Italy, Dubai, Hong Kong, Europe etc. They produce

and export these. Products on the basis of orders from foreigners. After receiving

the orders from parties and produced with high quality and then exported.

They started exporting in 1960 to 1970. At that item they exported in small

quantities. Later the major portion of productions is selling through exporting.

They export more than 75% of the total production and earn more profit.

For catching foreign customers they conduct exhibitions in foreign

countries.



They export their products through ships and airways. Mostly they use

ship because of less transportation cost. They adopt two types of marketing in

exporting. They are,

1. Merchant Exporters

2. Direct Exporting

1. Merchant Exporters.

These are the middlemen for party and the company. The collect orders

from parties and the society receive orders from these merchant exporters.

According to these orders the society produced products.

2. Direct Exporting

In this type of export, the society directly conducts with the foreign

customers and collects orders from these parties. Then produce products on the

requirements of customers and export these products directly. This company

started direct exporting in the year 1998 on wards. Now a day they gave more

importance to direct exporting.

They earn 75% of profit in international market and earn 25% profit in

domestic market.

The 25% of products are sold in local market through dealers (deports)

and exhibitions etc. During the festival season they conduct exhibitions in various

places. They have six depots; they are in Kudukkimotta, Kanhirode, Taliparamba,

Kuttiyattoor, Kambil and Iritty.

The prices of the products are fixed on the basis of cost of production and

certain percentage of profit. They also provide 20% discounts or rebate for its

products.

MARKETING CHANNELS



For International Market:

For Local Market:

Following are main products for local market.

1. Bed Sheet

The Bed sheet is one of the main products in local market. There are three

types of bed sheet are manufactured by the society. They are plane, printed and

check. From these printed bed sheet is of more demand in the market compared

to other two’s. The cost of printed bed sheet is high because printing charge will

be insured in it.

2. Lungies

It is of high demand in the local market the read in lungies are 60, 72, 80

and 100.

3. Shirtings


Company Merchant Exporters

Customers

Company Dealer (Deport) Customers


The demand for shirting is very high because it is made pure cotton. The

brand name used by the society in selling the shirting items are a “weaveco”. The

company is planning to concentrate on the market of ready-made shirts.

4. Dhothies

Dhothies are two types; they are double dhothi and Kavi dhothi.

In Marketing, they function of buying implies buying raw materials by

manufacturers for use in production of buying goods by middlemen or sale to

consumers and not buying of goods by consumers for final consumption. Buying

refers to the purchase of the right type of goods in right quantity, at the right time

from the right source at the right place.

Selling is another important function of marketing. Selling include,

1. Product planning and development, forecasting consumer needs etc.

2. Searching for new uses of the product.

3. Creation, maintenance, and extension demand for goods through such

means as advertising, personal selling, sales promotion etc.

4. Negotiation with the buyers as to the terms of sale made of delivery, terms

of payment etc.

5. Entering into final contract with buyers and effecting transfer of ownership

and possession of goods to the buyers.

This company sells its products through local market and international

market. The sales turnover and export sales turnover of the company are given

below;



SALES TURNOVER FOR THE LAST 4 YEARS.

2001-2002 Rs. 39672917

2002-2003 Rs. 37981807

2003-2004 Rs. 47115928

2004-2005 Rs. 42524980



SALES TURNOVER CHART FOR THE LAST 4 YEARS

EXPORT SALES TURNOVER FOR THE LAST 5 YEARS.



2000-2001 Rs. 25502166

2001-2002 Rs. 32557209

2002-2003 Rs. 26660562

2003-2004 Rs. 34262702

2004-2005 Rs. 28502695



EXPORT SALES TURNOVER CHART FOR THE LAST 5

YEARS



Production and consumption are linked through transportation.

Transportation is an important function of marketing. The speed and reliability of

transportation encourages the function of storage. The manufactures need

transportation for carrying machinery and raw materials to the factory. Then

finished goods have to be transported to the middlemen and finally delivered to

the consumers, at all these stages transportation is very essential. The

transportation for marketing involves the selection a particular model of transport

depending upon the speed and economy.

They mainly use road transport for carrying raw materials. For exporting

they use airways and waterways. They exported mainly through ships be cause

of less transportation cost.

Storage is an essential function at marketing. Warehousing facilitates

storage. Storage refers to the holding and preservation of gods between the time

of their production and consumption. Warehouses are large storage hours

contracted for the purpose of storing and preserving goods.

This society has its own warehouse for storing materials and finished

goods. The yarn bales received area stored off the floor count wise. The dyes

and chemicals are stored in a separate room to avoid exposure to air and

probable deterioration. It is issued on a “First-in-First out” basis. The yarn during

the wet procession is stored off the floor using bamboo stick or polythene rodes.

The processed yarn is stored safely in the designated area. The trims and

accessories are stored in the bin or racks. Packing materials are stored size wise

in a separate place. The weaving supervisor ensures proper storage of

intermediate products such as ball warp, bobbins, warp beam, and pirns at the

proper storage of pattern, cut components and finished made-ups or garments.

The export in charge ensures proper storage of final pack ages with clear

identification such as order number, package number, buyer’s name, destination

etc. The items are stored for more than one year, and it is re-Inspected to find out

the probable deterioration and to ascertaining the usability in future.



Standardization and grading of products is essential function in marketing.

Natural raw materials require standardizations and grading in the process of

selling. Manufactured goods are standardized and graded in the process of

production itself. Standardizations refer to the establishment of certain standards

for commodity on the basis of its physical properties or quality. Standardized

goods have some quality from who ever they are bought. Standardization and

grading facilitates selling by description and sample. Cost of advertising and

sales promoting will be less standardized goods.

Package

Packaging is the out of designing and creating proper packages for

different products. A package is wrapper or container in which a product is

concluding for the purpose of sale. The main advantages of packaging are;

1. Packaging protects the goods from deterioration, expose etc during

transport, storage and use.

2. It helps to identify the product by the brand name and re collect the name

while purchasing.

3. Packaging indicates nature, weight, content etc of the product. This

provides an assurance to the customer about quality, weight etc.

4. Packaging attracts the attention of the buyers and acts as an advertisement.

5. Packaging facilities handling and use of product. This method o fusing the

product is sometimes indicated on the package.

6. Packaging helps branding as the brand name can be printed.



STANDARD PACKING INSTRUCTIONS OF KWCS

Fabrics:

1. Roll the fabrics in paper width 61’ length and 1’ diameter.

2. Cover the fabrics in polyethylene sheet.

3. Cover the fabrics in far paper (Craft paper).

4. Pack each roll in polyethylene bags.

5. Strap two rolls tightened.

6. Cover the rolls with water paper and far paper and gunny fabrics.

7. Mark bale number. Party Name, address etc.

8. Add silica gel into bale pieces while packing.

Made-ups/cushion covers:

1. Put each pieces in polyethylene bags.

2. 10 pieces into master bags.

3. 4 Master bags into 7 ply cartons.

4. Make the cartons with number and party’s name.

5. Ad silica gel in master bags and in cartons.

Sofa case and other made-ups:

1. Bundle 5 or 10 pieces required together to one polyethylene bag.

2. 2 master bags into 7 ply cartons.

3. Mark the carton with number and party’s name.

4. Add silica gel in each master bag.

Brand Name

Branding is a marketing technique. In the society the brand name is used

in all products. Their brand name is “WEAVECO”. The products of the society

are very familiar and attractive in local market and international market.



Advertisement

Advertising is one of the major promotional tool in marketing. Advertising is

the any paid form of non-personal presentation and promotion of ideas, goods

and services by an identified sponsor. The advertising increases the demand of

the products.

They mainly used advertisement medias are newspapers, magazines and

other published materials. The publications of co-operative and other

organizations, souvenir published during festival seasons and other cultural

events are the main media of advertisement of the society. They are selling

products directly or through middlemen.



CHAPTER VIII

PERSONNEL DEPARTMENT



PERSONNEL DEPARTMENT

The success of modern business organization is heavily dependent upon

the contribution made by employees as they perform the various tasks to which

they are assigned. Organizations tend to be successful when employees are

satisfied and productive in performing their tasks.

The term ‘personnel’ refers to body of persons employed in an

organization, factory, office etc. personnel management, therefore means

management of people employed in an organization. In this sense, personnel

management is related to the staffing function of management.

The basic objectives of a personnel department is to assist the

management to produce and distribute goods and service by creating, retaining a

workforce with the ability and motivation to accomplish the objectives of the

organization.

The importance of personnel management is increasingly realized in these

days, especially, in business and industry. The problems in spite of increasing

automation, the future of mankind depends on the effective utilization of human

resources. That is whey in modern industry a separate department is developed

for managing the human resources.

The personnel department is responsible for the execution of policies

regarding selection, employment, transfer and discharge of workers and payment

of wages to them. Different departments to the personnel department send

requisitions for placement of workers. The personnel department then initiates

actions in selecting personnel either locally or advertisement in newspapers.

Personnel management is an extension of general management that

promotes and stimulates every employee to make all contribution to the purpose



of the business. The main object of human resource department is the

accomplishment of the objectives of an enterprise. It is making an uninterrupted

supply of labour force in the organization & motivates the workforce of the

organization.

In Kanhirode Weavers co-operative society, there is a separate

specialized department for managing human resources. This department is co-

coordinated by the chief executive/secretary.

The over all control of the society is carried by board of directors. The

shareholders elect the board of directors. The boards of directors are selecting

one of the directors as a president or a vice-president.

The board of directors recruits all the office and administrative staffs. The

board of directors shall consists of not more than a members of whom 7

members are elected and at least five shall be weavers members and the

remaining two shall be nominated by the district industries officer from his staff.

The secretary shall be responsible for the executive administration of the

society Subject to the control of the president. The secretary shall be the ex-

officio treasurer and shall have the custody of all the properties of the society.

The president has a general control over all the affairs of the society.

No person shall be eligible for the post mentioned below unless he

possesses the qualifications noted against him or her.

1. Secretary or manager : SSLC (Eligible for college course and a course of

training undergone in any of the co-operative industries)

2. Clerk A: Pass in IV form

3. Attenders A: Pass in II form

4. Peons : Literate knowing read and write.



At the present 370 employees are working in the society. Which include

office staff, dyeing workers, weavers, winding workers, packing, sales, designing

and stitching workers. Majority of the society employees are womens. There by

ensuring the economic freedom of major household in around the locality.

Number of Employees in KWCS

Working Area No. of Workers

Office 15

Dyeing 16

Weaving 230

Winding 79

Packing 9

Sales 7

Designing 2

Stitching 12

All the employees working in the organization to undertake the specified

duties are competent to undertake the job on the basis of education, training,

skills and experience.

This society provides appropriate training to the employees as per the

requirements. The Chief Executive or Secretary maintains the records of

employees.

The head of the department conduct periodical meeting to create

awareness, relevance and importance of their activities towards the achievement

of quality objectives.

Wage Structure:

For staff : Salary + D A

For workers : Piece rate + D A



Benefits to Workers

Apart from the actual wages, the society provides the following benefits to

its workers.

Contributory provident Fund 12%

Bonus 8.33-20%

Casual leave wages 5%

Medical Allowances 5% (Approximate slab system-

Maximum 6%)

Loom maintenance/Allowances 3%

Gratuity 5%

Festival Holidays wages 5% (13 days Avg. wags)

And the society also provides maternity benefits.

Incentive schemes

Apart from the above benefits, the society had implemented its own

welfare fund scheme and Employee State Insurance (ESI) scheme for the

benefits of the workers and employees.

Towards the fund, the society shall collect from workers @ Rs 4/- per

month and society shall be paying Rs 16/- per month per worker. Both these

contributions were deposited in the bank A/c. The interest accrued are also

credited in the same A/c. 10% of the Net profit of the society are also credited to

this A/c. Out of these, the society provide 6% production incentives to

workers.Out of these benefits, the society provides various financial assistance to

its workers. They are as follows.

1) Financial assistance to meet the educational expenses of workers

children.



Pre Degree/Diploma - Rs. 500/ Year

Graduation - Rs 750/ Year

Post Graduation - Rs 1000/ Year

Medical/Engineering - Rs 2000/ Year

2) Financial assistance to meet the funeral, when the workers, or their family

members die.

3) Retirement Benefits:

When a worker retire from service, after, completing 20 years of ser vice

and after attaining the age of 55 years, then the workers are entitled to get

a lump sum amount of Rs. 5000/- from the fund.

4) The society also provides medical assistance to its employees.

Bonus

The society gives bonus to its workers and employees in festival time. The

management in a discussion determines the rate of bonus payable with trade

union representatives. In the last year, the society provide 20% bonus to its

employees.

Leaves

Every employee of the society shall be entitled to casual leave not

exceeding 15 days in a year. Every employee of the society shall be entitled to

sick leave on any reasonable ground up to 18 days of every 12 months of his

service.

The secretary shall be authority competent section casual leave to other

employee of the society and the president shall be the authority competent to

sanction of causal leave to the secretary and privilege leave to all the employees

including the secretary. No employee of the society shall canvassing or otherwise

use his influence in any way in the election of office bearers of the institution in

which they are employed.



Promotion

Promotion is the upward reassignment in an organizational hierarchy

accompanied by increased responsibility, enhanced status and usually with

increased income.

In Kanhirode Weavers Co-operative Society, the promotion of the

employees is base don seniority.

Time Schedule

Office Time : 9 AM to 5.30 PM

Working Time : 8.30 AM to 6 PM

In this schedule includes one-hour lunch break and half hour tea break.

Trade Union

Trade union is a continuous association of wage earners for the purpose

of maintaining and improving the conditions of their working life. In the company,

employee-employer relationship is very cordial. The trade union influence

industrial democracy, morale and productivity. The workers and staff of the

company formed their own unions to protect their interest.

In this society there are mainly two trade unions. They are;

1. Kerala Co-operative Employees union (KCEU)

2. Handloom Workers Union (HWU)

These two trade unions are affiliated to CITU. Since there is only one trade

union. So there is no scope for interunion revelry.



FUNCTIONS OF PERSONNEL DEPARTMENT

The personnel department performs various functions in an organization.

The personnel function is concerned with the procurement, development,

compensation, integration and maintenance of the personnel of an organization

towards the accomplishment of the organizations major goals and policies.

The important functions of personnel department are as follows.

1) Procurement of personnel

This includes manpower planning, recruitment, selection, vocational

guidance, and placement of the right people for various jobs in the organization.

2) Development of personnel.

This is concerned with the increase of workers skill through education and

training, necessary for efficient job performance, it is concerned with forming

sound promotion policy, determination of the basis of promotion and making

performance appraisal also came under the personnel department function.

3) Compensation

Compensation to the employees in the form of wages, salaries, and bonus

assumes great significance, as remuneration is probably the best motivation for

workers to perform the jobs assigned to them. Implementation of incentive and

premium bonus plans and policies.

4) Integration

The personnel department has to reconcile or integrate individual and

organizational objectives through sound industrial relations. The measures for



promoting industrial relations include industrial discipline, maintenance of

industrial peace, securing co-operation between trade union and management,

workers participation in management, collective bargaining, grievances and

suggestion systems.

5) Maintenance

Maintenance refers to the keeping of the workforce in a highly satisfied

and motivated condition. It is very essential for the smooth running of the

organization.

6) Records and Researches

The personnel department keeps the detailed record of the employees of

the organization. The information collected and recorded includes information’s

relating to selection, employment, induction, education and training of each

employee. It also covers information regarding labour turnover, absenteeism,

grievances, suggestions, complaints, accidence etc. recording is essential for

every management because it assists the management in decision-making.

Research is also an important function of personnel department. Research

is needed to improve the methods of selection, job analysis, merit rating, training

etc. new motivation technique may also be experimented up on.



TRAINING PLAN

Sl. No.

Scope Participants Conducted by

Method Period

1Safety (Fire

Fighting)Selected

employeesExternal agency

Classes with demonstration

-

2On the job

trainingIdentified

employeesIn-house training

Demonstration Continuous

3Induction Training

New recruitsIn-house training

Classes3 moths

from date of joining.

4Safety (First

Aid)Selected


Classes -

5Technical Training

Technical staff

External agency

Practical training

As per the availability of training

6Skill up

gradation programme

Selected operators

Agency notified by Govt. of Kerala

On the job training

AS per the Govt.

sanctions.

7IQA

TrainingSelected


ClassesAs notice by the agency.



CHAPTER IX

FINANCE DEPARTMENT



FINANCE DEPARTMENT

Finance is an integral part of modern economic life and occupies

important plays in all economic activities. Economic growth depends on the

adequate and timely finance. Finance is required to bring a business into

existence, to keep it alive and see it growing.

Finance is the life blood of business. Finance refers to money, cash or

fund available for the operations of the business, without finance a business

cannot function. The management of all business cannot function. The

management of all activities related to finance requires considerable expertise

and specialized knowledge of banks, financial institutions, the different sources of

finance and ways to profitably utilise these funds. Financial management will

there fore, include planning, organizing, directing and controlling financial

activities in an organization.

Financing is a very important factor in every business. Therefore its

management requires special attention. As finance or money is important for any

activity especially in business. One has to procure it from available sources.

Finance collected from various sources and it cannot be kept idle. It has to be

invested in profitable venture.

Now a days the importance of financial management has increased

because of the commitment of the management to various parties interested in

the organization.

Financial management performs various functions. They are financial

planning, procurement of funds, utilization of funds, disposal of surplus, financial

control etc.

The KWCS has well efficient finance department. The secretary of this

society heads this department. They collect fund from various societies. Such as



members share, Govt. share etc. They will get 1.20 crores cash credit from

NABARD.

The organization chart of finance department is given below.

They prepared daybook, general ledger, personal ledger, stock register

etc. the final accounts are audited by statutory auditor. They follow concurrent

audit for verifying the accounts. The Govt pays the cost of audit.

Following are the systematic representation of accounting procedure of

KWCS Ltd.


Secretary

Manager

Accountant

Journals

Sub ledger

Main ledger

Trial balance

P & L Account

Balance Sheet


Source of Capital

The various sources of capital are as follows.

1. Thrift deposit

2. Fixed deposit

3. Recurring deposit

4. Home safe deposit

5. Insurance deposit



FINANCIAL MANAGEMENT IN THE SOCIETY

The financial management performs various functions in the society. The

main and important functions performed by the society are as follows.

1. Financial planning:

The objective of financial management is to make necessary funds

available for investment for the purpose of achieving organizational objectives.

Financial planning is the first step in the direction. Planning is to deciding in

advance. What is to be done in future? Financial planning there fore involves

management divisions regarding the financial plans.

The primary task of financial manager is to formulate financial plans

suitable for the firm’s size and requirements. The financial planning involves long

range plans for plant expansion. Replacement of machinery and equipments and

a lot of other expenditures causing large cash drains.

2. Procurement of funds:

The second responsibility of financial manager is to procure the necessary

funds to satisfy the needs of the organization. It is decided to realize the needed

funds by assuring shares and debentures. The finance manager has to arrange

for the issue of prospectus and take other steps necessary for the purpose.

Where it is proposed to borrow money from financial institutions or banks, the

finance manager will negotiate with the concerned authorities.

3. Utilization of funds:

After procuring the funds the finance manager take steps to allocate funds

among different assets according to their respective needs. The finance manager

should carefully manage the optimum utilization of funds, avoiding wastage etc.



He has to ensure that creditors due are maintained and shareholders get a fair

return on the capital untested by them.

4. Disposal of surplus:

Another function of financial management is disposal of surplus arising

from the investment of funds. It is the finance manager job to allocate the earning

after enterprise as between different claims. A part of earning may be rationed for

financing expansion of business. The balance of powerful maybe distributed to

the owners as dividend as a return on their capital.

5. Financial Control:

This is another important function of financial management. The financial

managers are responsible for controlling the uses of funds placed at his disposal.

He will ensure that funds re being utilized effectively in accordance with the pre-

determined plans. Control funds involve development of standard of performance

and comparison of actual performance with standard.

6. Analysis and evaluation of finance function:

It involves financial reporting, financial statement analysis, fund flow

statement, cash flow statement and cash and capital budgeting.



THE BALANCE SHEET OF KWCS LTD AS ON 31.03.2006

LIABILITY AMOUNT ASSETS AMOUNT

Share capital 2191535.00 Cash in hand &

bank

1316525.22

Deposits 495529.59 Investments 1861520.40

Reserve fund 3586653.11 Adj. Heads due

to society

22158539.68

Other funds 7586617.23

Govt. Loan 167500.00 Fixed assets 15025433.98

Grant 33451262.11 Looms & other

accessories

12370727.00

Dividend due 439431.74 Closing stock 11559405.80

Borrowing 3403258.17

Grade charges

due

2398178.10

Establishment &

Cont. due (Audit

cost)

40283.25

Reserves 24839491.94

Net profit

2003-2004

1427821.88

2004-2005

507613.581935435.46

Net profit 509976.38

Total 81045152.08 81045152.08



CHAPTER X

PURCHASE DEPARTMENT



PURCHASE DEPARTMENT

Purchasing is one of the important activity in a business organization. In

narrow sense purchasing means merely the act of buying the required items. But

in modern management this term is used in a boarder sense. It includes a

number of activities beyond the simple buying they are;

1. Research and development required for proper selection of material.

2. Methods and procedures required for purchasing.

3. Follow up to insure proper delivery.

4. Co-ordination of activities of related department like receiving, store

keeping, inspecting and accounting.

In modern management purchasing is substituted b the term procurement.

It is a broader term and includes all the activities performed by purchasing

department and additional functions like supervision, inventory management etc.

In large scale organization there will be a separate department ie,

purchasing department headed by purchasing manager. In small scale the

manager or storekeeper may carry organization the duty of purchasing.

Purchased department plays a very important role in an organization

because purchasing has its effect on every vital factor concerning manufacture,

quality, cost, efficiency and prompt delivery of goods to the consumers. Its

function is to procure material, suppliers, services, machines and tools at most

favorable terms constant with maintains the desired standard of quality.

For an organization, purchase is a window to the outside world. The

primary function of purchasing is that of being sensitive to the external supply

market situation and also of feedback this information to the other functions of the

organizations.



Purchasing is the most important function of material management. The primary

objectives of purchase department are to purchase right quality material at the

right time at the right place, from right sources with at least cost.

In this society, the secretary,/chief executive has the over all responsibility

for all purchasing activity in this society. They purchase raw materials, and

accessories in accordance with the order of quantity produced.

The purchase department purchase different types of raw material and

accessories for producing products they are;

Raw materials:

Yarn

Dyes

Chemicals

Accessories:

Carton

Celica jel

Labels

Zip runner

Poly bags

Rope

Buttons

Sewing threads

Lace

Elastic

Tape etc.



They mainly purchased raw material like yarn, dyes and chemicals from

national handloom development corporation (NHDC) and other private parties. At

that time of purchasing yarn, they will get Govt. subsidy, hank yarn subsidy and

handling charge subsidy.

All the purchases made from approved supplies based on their ability to

supply and past performance. All the purchase are made after assessing the

availability of stock in the society. In case of emergency time they purchase

material from other than approved supplies.

They maintain a minimum of yarn, dyes and chemicals. The head of the

department verify the stock position level periodically. The stock is reached at the

minimum re-order level, they will made new purchase. This society has a very

good quality control department. This department ensures the quality of

purchased materials.

Made OF Payment

The payment is made through cash, DD, or cheque.

The payment is made at the time of delivery to goods or with in the credit

period allowed by the superior.



FUNCTIONS OF PURCHASE DEPARTMENT

The functions of purchase department is to decide what to purchase,

when to purchase, where to purchase, how much to purchase, at what price to

purchase and make availability of the product as per the request of the

production department of the organization. The main functions are to take

decision relating to;

1. What to purchase

2. When to purchase

3. Where to purchase

4. How much to purchase

5. What price to purchase

PURCHASING PROCESSES IN KWCS

To perform these functions the purchase department must perform certain

procedures the procedure for purchasing of raw material in the society are as

follows.

1. Receiving of purchase requisition:

A purchase requisition is a request for purchase of a product. The

production department or production supervisor normally gives it. He will give a

request to the purchase department for the goods required for production. The

purchase requisition is generally prepared three copies. The first one is sent to

purchasing department, the second one is sent to the storekeeper or the

department, which initiates the requisition, and the third one is sent to the

authorizing executives.

2. Exploring the sources of supply and selecting the suppliers.



A source of supply of materials must be selected after the receipt of the

purchase requisition. The purchase department usually maintains for every group

of materials a list of suppliers name and addresses. After receiving the purchase

requisition, the purchase manager must explore the source of supply and choose

the supplier. He must identity the source of product and where it is available.

Quotation may be invited from these suppliers by issuing tenders to them. On

receipt of quotation from suppliers, a comparative statement of various quotations

received should be prepared and the desirable suppliers should be selected. He

must ensure that the items as per the request of the production departments.

While selecting the suppliers to whom the order is the purchase manager is keep

in mind the following cases.

Manufacturing capability.

Reliability of the suppler.

Financial conditions of the suppliers.

Price quoted.

Quantity of purchase.

Terms of delivery

Terms of payment

Specification to which the products are manufactured.

3. Purchaser Order

After identifying the sources of materials and selection of suppliers, then

he must take the necessary action requires for the purchase of the item. He must

enter a contract for the supply the item. He must ensure the quality of the product

also. He must specify the date and time of delivery of goods.

The purchase order is the written document between the buyer and the

supplier. The supplier is bound to supply materials according to the terms and

conditions of the purchase order and the purchaser is require to accept deliveryof

material and make the payment for material as agreed upon. In the society



normally fire copies are prepared and kept by different departments and persons.

They are, the original copy is send to the suppliers, one copy is send to the

receiving department ,one copy is send to finance department, one copy is send

to production department and the last copy is retained by the purchase

department for future reference.

4. Receiving and Inspecting Materials.

After receiving the goods, the purchase manager must make arrangement

for storage and he must ensure the products are as per standards. He must

inspect the items by physical examination or laboratory examination required and

ensure that the items as per the order.

5. Checking and passing of bill for payment

When the invoice is received form the suppliers, it is send to the stores

accounting section to check both the authentically as well as the arithmetical

accuracy. After the physical or laboratory examination of the goods, the purchase

manager must check the bills, he matched with goods specified in the bill and

received goods. The arithmetical accuracy of the invoice is also checked and

verified. After the verification of invoice, the stores accounting section certifies

and passes the invoice for payment. On the basis of invoice. On the basis of

invoice, the cashier can make payment. Payment made according to the terms

and conditions agreed between the parties.



CHAPTER XI

QUALITY CONTROL DEPARTMENT



QAUALITY CONTROL DEPARTMENT

One of the major achievements of industrial revolution is mass production

of uni9form quality. The industrialist maintained their quality in production and all

other aspects.

The need for quality is felt in our country than anywhere. For too long

consumers have been the victims of poor quality goods. They are subject to

various exploitations such as low quality, low weight, and different quality in same

package etc.

The quality is important due to the following reasons.

1. By using quality raw materials qualified employees, plant & machinery etc

are lead to increase in the productivity.

2. Better quality reduces the cost of repairs and rework. So cost of production

can be reduced.

3. Quality of the products results in sustained profit.

4. Satisfied customers are important assets of a company. Customer loyalty

can be attained only through maintenance of required quality.

5. Goodwill of the company depends on the quality of the products. So good

quality helps to increase goodwill.

Quality control does not begin after the goods are produced. In stead it

begins log before the actual production. The following diagram can show the

quality control.



The Kanhirode Weavers Co-operative society is a ISO 9001-2000 certified

company. The scope of ISO 9001-2000 certification covers manufacture and

supply of home textiles. Such as fabrics, made-ups and other textile articles for

direct export and other merchant exporter.

For the purpose of implementing ISO 9001-2000 Quality management

system (QMS) in M/s Kanhirode Weavers Co-operative society has established

and documented a quality management system to continually improve the

effectiveness as per the requirements of this international standard.

This society has a good quality control section or verifying the incoming

goods and final inspection of finished goods. The overall responsibility of the

quality control department is quality assurance officer (QAO). He ensure the

quality of raw materials, work-in-progress and finished goods. A quality controller

is also work-under the Quality Assurance Officer.

For improving quality, they conduct quantity plan and inspection, Test plan

for measuring and at analyzing the quality of the products.


Input Conversion Output

Raw materials components/parts Work-in-progress Goods & Service

Acceptance test

Control Charts

Acceptance Test

Quality of input Quality of WIPQuality of Output


THE STRUCTURE OF QUALITY CONTROL DEPARTMENT .

The quality Management System (QMS) in the society are as follows.

Levels

I

II

III

IV

V

QM - Quantity Manual

OP - Operating Procedure.

TAD - Technical and allied Documents

WI - Work Instructions.


Q.A Officer

Quality controller

QM

OP

TAD

WI

FORAMT & RECORDS


QUALITY MANAGEMENT SYSTEM PLANNING.

Management representative is over all responsible to ensure that planning

of quality management system is carried out to meet the company’s stated quality

requirements of the products and as well as quality requirements of the products

and as well as quality objectives. The management representative is also

responsible to ensure the dynamism of quality management during the planning

and implementation of the system.

QUALITY OBJECTIVES OF KWCS

The company has formulated the quality objectives keeping in line with the

started quality policy and the quality parameters of the product. The objectives

are measurable in quantitative terms. The company formulated quality objectives

are as follows.

1. To maintain 95% first time acceptance in the dyeing department.

2. To maintain 95% first time acceptance in the made-ups department.

3. To provide in house test facilities to test colour fastness to washing,

rubbing and colour matching cabinet.

4. To achieve 95% on time delivery indirect export on the continuous basis

5. Start commercial production in dyeing by using modern facilities.

The actions plans are reviewed once in six months for ascertaining the

degree of conformance and the management provides the necessary resources

as required for achieving these objectives.



INTERNAL AUDIT

The internal audit are planned and conducted at least three times in a

year. It covers all the departments of the company. The audit is intended to find

out,

Adequacy of the quality management system as per the international

standard.

Compliance of the system in the company and,

Effectiveness of the quality management system for continual improvement.

The audits are planner taking into consideration.

The importance of the activity of the stated quality objectives and companies

scope of activity.

The summery of the previous audit, which shows the area of immediate

attention and improvement.

The qualified internal who is independent of the area being audited

conducts audits. The management representative follow up the audit reports and

ensures timely corrective actions on the deficiencies found during the internal

audit.

The follow up audits are conducted to see the effectiveness of the

corrective action taken and also to verify the reports of action taken and also to

verify the report of action taken.



QUALITY POLICY

The Kanhirode Weavers Co-operative society is committed to be a quality

driven organization with a philosophy “Together Forge Ahead” in the area of

manufacturing and supplying of home textiles such as fabrics, made ups and

other textile articles for exports and domestic market.

They Aim At

Providing home textile to the requirements of the customers at an economical

price and meeting on time delivery schedules to the satisfaction of the customers.

Promoting term work and respecting human values and ethics providing

resources for continual improvement through technology up gradation and

development of human resources.



CHAPTER XII

FINDINGS AND SUGGESTIONS



FINDINGS AND SUGGESTIONS

Findings:

1. They mainly concentrate in International markets and less importance to

local markets.

2. They must give more importance to the quality of the product and also try to

reduce the cost of production.

3. Production is done one the basis of customers order.

4. Productions are 100% export quality.

5. This society provides employment opportunity for a lot of people in that

locality.

6. Every worker of the society is a shareholder of this society.

7. There is a proper grievance handling system in the society.

8. During the festival season this society provide special packages for its

customers like discount, rebate etc.

9. Labour problems are very less in this society.

10. Trade unions have freedom to function effectively.

11. The co-operation of workers and management are very high in this society.



Suggestions:

1. The society should have more promotional activities like advertisement,

sales promotion, personal selling, etc to increase sales.

2. The society shall utilise its 100% production capacity.

3. Pricing should be flexible according to the demand.

4. The society shall concentrate more on local market.

5. Production speed should be increased and must give importance to quality

factor also.

6. Latest technology should be used in production. It will helps to reduce the

labour cost and to increase production.

7. More training should be provide to its employees.

8. Diversified product can create more sales. Innovations in product design,

size, colour etc should be essential while meeting foreign orders.

9. Develop a good image for product and create brand loyalty among

consumers.



CHAPTER XIII

CONCLUSION



CONCLUSION

The Kanhirode Weavers Co-operative P & S society Ltd was the first ISO

9001-2000 certified handloom society in Kerala. They produce high quality

products to the local market and international market. This society’s products are

very familiar in national and international market. But the attractiveness of silk

and other synthetic products affected the society. The globalization and

liberalization also affected the society in the selling of its products.

Now they are contributing their share in the international market by selling

their products to units or companies who are exporting in the country.

Globalization and liberalization affects the society and other industries in the

country. Globalization and liberalization affects the society and other industries in

the country. But the society must take it as a challenge and produce quality

products in a most competitive price, as per the international standards. The

society engaged in direct exporting for their products because the handloom

products have heavy demand in foreign countries.

They must know the pulses of the international market, which is very easy

in the era of computerization. Handloom is the most attractive and eco friendly

products used by Indians from the early civilization. Handloom is becoming more

and more important in foreign market.

The society has to face heavy competition from the part of large-scale

private handloom industries. The cost of production is high in Kerala than other

states. This is due to high wages to the workers, low productivity of workers, high

transportation cost, high raw material cost etc. so the society cannot make a

reasonable profit. But the modernization and sophistication will help the society to

reduce cost and to compete in the foreign market. Not only that the society must

know have the pulse of the international market to exit profitable in the handloom

sector.



BIBLIOGRAPHY

1. Philip Kotler - Marketing Management - Pearson Education

2. K. Aswathappa & K. Shridhara Bhat - Production and operation

Management - Himalaya Publications House.

3. www.weaveco.com



ABBREVIATION

1. KWCS – KANHIRODE WEAVERS CO-OPERATIVE SOCIETY

2. P & S – PURCHASE AND SALES

3. Q A – QUALITY ASSURANCE

4. C E – CHIEF EXECUTIVE

5. LTD – LIMITED

6. CO-OP – CO-OPERATIVE

7. HOD – HEAD OF THE DEPARTMENT

8. WIP – WORK IN PROGRESS


SANOOP. V

Documents

add silica

ajai abraham

taliparamba

half fine

quality assurance

area wise

fine grey

achieving