Description
We conducted our research analysis on the chemical industry as the part of the MBA curriculam
Familiarization Report on Top Note Aromatics
Report 2013
1. INTRODUCTION
The Business Familiarization Report describes the overall functions of the departments and the firm. Any organization carries number of functions in the organizations but all the functions have its own identity in the firms business. There for our study focuses on entire business organization and its activity. For this we the team members selected a chemical firm in the Mysore. In this report we will focus on the various departments and its working responsibilities.
Objectives of the study:
? ? ? ? ? ? To get an overview of management in industrial functions. To study the functions of various departments. To understand the process flow in each departments. To understand hierarchical structure of various departments. To do SWOT analysis of the organization. To have an exposure to the working environment.
Scope of the study:
The study has been conducted at Top Note Aromatics Chemicals in Mysore during August in 2013.The study focuses on acquiring knowledge regarding the functioning of various departments in the organization.
Methodology:
The study is based on both primary & secondary data. Primary data are being collected from employees & staff through formal interview. Secondary data are those collected from annual reports or unpublished source that is through quality reports, brochures, company records and Internet.
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2. Industry Profile
Chemical industry is one of the oldest industries in India. It not only plays a crucial role in meeting the daily needs of the common man, but also contributes significantly towards industrial and economic growth of the nation The chemical industry which contributes significantly towards industrial and economic growth of the nation. It is highly science based and provides valuable chemicals for various end products such as textiles, paper, paints and varnishes, leather etc. which are required in almost all walks of life. The Indian Chemical Industry forms the backbone of the industrial and agricultural development of India and provides building blocks for downstream industries. Chemical Industry is an important constituent of the Indian economy. Its size is estimated at around US$ 35 billion approx. which is equivalent to about 3% of India's GDP. The total investment in Indian Chemical Sector is approx. US$ 60 billion and total employment generated is about 1 million. The Indian Chemical sector accounts for 13-14% of total exports and 8-9% of total imports of the country. In terms of volume, it is 12th largest in the world and 3rd largest in Asia. Currently, per capita consumption of products of chemical industry in India is about 1/10thof the world average. Over the last decade, the Indian Chemical industry has evolved from being a basic chemical producer to becoming an innovative industry. The Indian Chemical Market Segment wise is as under: Segment Basic Chemicals Specialty Chemicals High End / Knowledge Segment Total Market Value (billion US$) 20 9 6 35
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The Indian Chemicals Industry comprises both small and large-scale units. The fiscal concessions granted to small sector in mid-eighties led to establishment of large number of units in the Small Scale Industries (SSI) sector. Currently, the Indian Chemical industry is in the midst of a major restructuring and consolidation phase. With the shift in emphasis on product innovation, branch building and environmental friendliness, this industry is increasingly moving towards greater customer orientation. Even though India enjoys an abundant supply of basic raw materials, it will have to build upon technical services and marketing capabilities to face global competition and increase its share of exports. As the Indian economy was a protected economy till the early nineties, very little large-scale R&D was undertaken by the Chemical industry to create intellectual property. The Industry would, therefore, have to make large investments in R&D to successfully counter competition from the international chemicals industry. India has a number of scientific institutions and the country’s strength lies in its large pool of highly trained scientific manpower. India also produces a large number of fine and specialty chemicals, which have very specific uses and are essential for increasing industrial production. These find wide usage as food additives and pigments, polymer additives, anti-oxidants in the rubber industry, etc. At present the India has emerging in its basic chemical sectors because it constitutes the small owned as well as family well developed industry too. It encourages the individual income and comes to the national growth. Addition of more and more of establishment of basic chemical industries helps to create good feasible environment to the chemical industries and the dependent industries too. In case of manufacturing of daily needs like paste, soaps, foods and some more products require the chemicals, if the firm fails to supply the needs then normally the country should import daily needs at higher price. Totally, the basic chemicals controls the currency outflow to other nations.
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3. Company Profile
a) Background of the company:
Topnote aromatics is one of the leading industrial chemical manufacturer and supplier meetings the demand of global clients in various fields of pharmaceutical, agricultural, metal furnishing and reagents for laboratory and research applications. They deal in both organic and inorganic chemicals, and therefore our horizon of trade in the market has widened. They are engaged in the manufacture and supply of ammonium molybdate, molybdic acid, sodium molybdate, sodium tungstate and tungsten acid and many more. By pursuing and implementing the highest standards of excellence in their operations, they have nurtured their capabilities. TOPNOTE is the history of chemical production in Mysore. It established itself 1983, as small size enterprise with the 2 partners namely Dr. SubbaRao and Dr.B.R.Pai. It is 10kms away from Mysore town and placed in the Metagalli Industrial Area. In 2004 the Top Note partners sold to 3 partners namely Mr. Dinesh Kothari, Mr. Madanlal Kothari and Mrs. Seema Kothari as family members are the partners to the firm of chemical industry. It began the production and distribution of chemicals under the brand name TOPNOTE. The firm valued while transferring its ownership it costs around Rs.40 Lakhs. Top Note Aromatics is the market leader in Karnataka, Maharashtra & some parts of the Gujarat, West Bengal and Himachal Pradesh. The company has made its presence significantly in West Indian market. It is a multi-core, multi-Product Company which has been deeply involved in the manufacture, distribution, sale, and installation and servicing to bring the customer satisfaction and social responsibilities.
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In the last one decade paralleled growth was witnessed in Top Note company to emerge as a leader in the chemicals diversify into the manufacture of various fields of pharmaceutical, Agriculture, metal furnishing and reagents of laboratory & research application. At present Top Note Aromatics Company have average turnover of Rs 5.0 crore per annum and with manpower of 18 employees including 3 Lab Technicians. It has an incremental growth due to the young and dynamic MD’s expansions and growth plans. The company increased its production capacity over 20% in recent years incurring huge additional investments. Presently it is enjoying the benefits. At the end of current year an increment growth of 20% when compared with the last year is witnessed. The Top Note is the single largest chemical industry in partnership firm which manufacturing specialty chemical over the years in the Mysore area. Top Note has steadily developed in to a professionally managed firm comprising its manufacturing unit with a total installed capacity of 300 ton per annumand effective centralize support services wholly dedicated to the most existing standards of quality and customer services, constantly motivated by the need to ensure total product satisfaction.
b) Vision, Objectives and Quality Policy:
“Our vision is to expand product capacity and environmental protection from usage of wastages and add some more products to our customer to enhance their business as well as ours. We aim to make each of our products a paragon of quality and quality excellence. Through our constant Endeavour’s of research and innovation we strive to come up with new products that help build the products”
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Objectives: ? ?
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To control environmental pollution from the using of wastages of the industries To add more chemical products to the firm
Quality policy: For every industry it is challenge to control the quality related issues. For quality check they have adopted in house quality monitoring facilities to make product effective. The tests conducted in the plant premises are, ? ? ? ? Purity test Assay test Moisture content test Other impurity test.
c) Location:
Topnote Aromatics is located just 6km from historical city Mysore in the State of Karnataka. It is about10km from Krishna Raja Sagara dam. The manufacturing facility consists of laboratory administration and head office is housed over an area of,
Address of the factory
Topnote Aromatics (P) ltd. #97P, K.R.S Road, Metagalli Post, Mysore- 570016.
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d) Corporate Social Responsibilities:
The Top Note Aromatics chemical is also very passionate about several Social initiatives. The CSR activities are run through the firmto save the natural environment.
The firm started to save natural environment from the chemical equipment, however it is the firm which producing from the wastages of other industries as raw materials. And the firm facilitate in to the development of the forests and gardening to save the soil. They are taking their own firms wastages to production in the form of water and smoke. Using that they are controlling their cost and producing by-products.
From the negligence of wastages of chemical instruments saves the outside nature and also the firm adopted a good smoking zone for wastages cannot mix with the oxygen.
The firm has started water management in their firm campus. They are using the waste water in to the production purpose. Not only implementing in the firm campus they are also consulting other firms to adopt these activities to implementing.
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4. Product Profile
Topnote aromatics is one of the leading industrial chemical manufacturer and supplier meetings the demand of global clients in various fields of pharmaceutical, agricultural, metal furnishing and reagents for laboratory and research applications. They deal in both organic and inorganic chemicals, and therefore our horizon of trade in the market has widened. They are engaged in the manufacture and supply of ammonium molybdate, molybdic acid, sodium molybdate, sodium tungstate and tungsten acid and many more. By pursuing and implementing the highest standards of excellence in their operations, they have nurtured their capabilities. The product of the firm comes from the wastages of other manufacturing concerns. It inputs the wastages into output for the firm. And this output goes to other chemical industries as raw materials.
Types of Products:
? ? ? ? ? Ammonium Molybdate Molybdic Acid Sodium Molybdate Sodium Tungstate Ammonium Sulphate
Products Grades:
The products grade can be divided as agricultural purpose and laboratory purposes a. AL Grade Chemicals b. AR Grade Chemicals
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Ammonium Molybdate: [[NH4]6MO7O24.4H2O]
It is an odorless crystalline compound ranging in color from white to yellow green that has a solubility of 43 g/100 cc in cold water. Ammonium molybdate decomposes at 190 c boiling temperature and loses one water at 90 Celsius freezing temperature. It is also called molybdic acid hex ammonium salt tetra hydrate, ammonium molybdate tetra hydrate, and ammonium hepta molybdate tetra hydrates. Ammonium molybdate is used in various sectors: ? ? ? ? ? ? Used as catalyst in manufacturing color pigments To decorate ceramics In chemical analysis to find the presence of phosphates, arsenics, lead. In the chemical industry as a source of molybdenum’s ions. Pharmaceutical Other fields
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Molybdic Acid:
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It is a white or slightly yellow color powder that largely consists of an ammonium molybdate compound. Practically used for the determination of phosphorus-phosperate and lead. It is graded as a reagent and technical acid. Sparingly soluble in cold and more in hot water, it is Sparingly soluble in cold and more in hot water, Sparingly soluble in cold and more in hot water, it is also mixes with some of the ammonium and other fixed alkaline.
Sodium Molybdate:
Sodium molybdate is an odorless compound with the small white scales and flakes appearance that has a melting point of approximately 680 c (1200 69 ). Available with a specific gravity of 3.28 at 18 (64.4 ). It emits toxic metal fumes when heated to be decomposed. Soluble in (212 ). Sodium molybdate should be preserved to avoid moisture,
84g/100g water at 10
heat,flames, ignition sources, and incompatibles. Sodium molybdate acts as an excellent inhibitor and is extensively used as:
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? ? ? Production of molybdate tonners and colors. Dye and pigment production Metal production.
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Sodium Tungstate: [Na2WO4]
Sodium tungstate of sodium is useful as a source of tungsten. It is prepared from tungsten ores used to manufacture tungsten by reducing it.It is often found as the dihydrate, Na2WO4-2H2O this salt is soluble in water and is a moderately strong oxidizing agent but finds no common use in the chemistry laboratory. Like the molybdate, the deep colored complex tungstate (VIV) is formed on reducing the compound with the very mild reducing agent such as complex organic compounds. It is also thought to be a possible inhibitor of protein-tyrosine phosphate (PTPAC). It is also sometimes used as a fire proofing agent.
Ammonium Sulphate: [(NH4)2SO4] Ammonium sulphate is an inorganic salt with a number of commercial uses. It contains 21 cat ion, and 24 nitrogen as ammonium
sulfur as sulfate an ions.
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5.
ORGANIZATION STRUCTURE
5.1 Organizational Structure
The Top Note follows absolute dedicated approach. The organization of its manufacturing operations is based on product divisions in to group of products in which are similar in technology or manufacturing process. Each group is constituted by divisions or profit centers. Each of these group, are led by absolute supervisors. A central manager leads the major corporate function, human relational, marketing, production and financial functions. Some of these functions in turn are reported to the managing director.
5.2 Organizational Chart
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5.3 Organizational Outlook
PARTNERS Dinesh Kothari Seema Kothari Madanlal Kothari Managing Partner Manager Auditor Establishment Main production Raw materials for production Production range Present production Number of machines Number of workers at factory Dinesh Kothari Prakash Kumar N Umed Raj Jain 1983 Chemical powders and by-products
- Waste acids, caustic soda, water, nitric acid and others Premium 20 tons p.m. (including by product)
- 04 (Reactors and Driers) - 15
Payment within one month to suppliers - 80%
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5.4 Duties and Responsibilities Heads
1. Manager
He is responsible for all the business activities of the firm matters in the organization. He prepares financial plan and activate in the same. He assesses the financial needs of the organization. He should be known the financial activities, marketing, human relational and production activities. All these are necessary to prepare a sound financial policy for the organization. He is also responsible for all the firms’ activities. Other function includes the human relational, controlling the resources, recruitment, coordinating and directing.
2. Office Assistant
She is responsible for keeping the details of day book, ledger and P.F registers. Moreover, she should record and maintain all the details of the sales tax calculation and related documents and produce them on demand, salary administration, attendance registers and maintaining the office requirements.
3. Supervisor
He is charge of the production department of the organization. The heart of the manufacturing industry is production department.He aims to increase the production capacity and control the wastageswhile producing. As a part of the manufacturing industry it is necessary to maintain the production quality and product quality assurance. The supervisor should be tactful in his attitudes. He should coordinate the workers and
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neglects the conflicts in organization and while production. He should be known the strength and weakness of the firm’s products. He is also able to design and implement production strategies to enhance increase the capacity of production and product quality. He should understand changing market condition and customer satisfaction.
4. Operators
A operator occupies a very important position in an organization. The duty of an operator is to operate the machines and train the lower people to enhance the organizational goals and objectives.He should know the operating the machines. For that he should take the necessary training from the experts appointed by the management.
5. Helpers
The duty and responsibility of a helper include the labour work engaged in the production activities. He ordered from the supervisor to do his work.
6. Packers
Their duty consists of package making. He should do the packaging activity as per the instructions of the management.
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6. FUNCTIONAL DEPARTMENTS
6.1 Finance Department
Finance department manages the fund available for the operations of the business, by making a balance between the fund inflow and fund outflow. 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 profitability utilize these funds. Finance Manager directly does the planning, organizing, directing and controlling financial activities in the society. Finance department is headed by general manager. Factory supervisor should report to the General Manager and in certain strategy and urgent issues directly report to managing director and take decisions. Factory supervisor works in the coordination with chief accountant, internal auditor, production manager, marketing manager, branch managers. Sources of Finance:Top Note find sources of finance through banks. As it is a partnership firm, the partners contribute their funds to make capital requirements and other expenditure with the help of banks and financial institutions. Top Note Aromatics full fills its requirements from the different financial institutions and partners too. The firm get benefits from the industrial development banks. As in the credit sale the firm will allowing up to 30 day to their customer to pay the credit amount.
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Company’s Financial Policies:-
? ?
?
Low cost of operation of funds. Efficient receivable management, through acceleration of funds. Faster sourcing of funds from institutions.
Functions of Finance Department:Finance function is concerned with all aspects of business operations. It is very difficult to set limits to the finance function. The key activities under finance department are: ? ? ? ? ? ? ? ? ? Management of firm’s assets structure. Financial analysis, planning and control. Management of firm’s financial structure. Estimating capital requirement. Determining sources of fund. Utilization of fund. Disposal of surplus. Management of cash. Financial controls.
6.2 Accounts Department
Accounts department deals with day to day book keeping, daily collections, salaries of all employees, etc. Accounts department is headed by chief accountant who is the internal auditor of the firm. From his assistance the partners will decide the firm monetary requirement. An internal auditor works in coordination with the partners, managing partner and office assistant on the fund flow issues and in case of any shortage of cash occurs. Managing directorcanalized
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the shortage from financial institutions in case of emergency and normal cases, manager tightness the payment collections from the whole sellers and other sources. Other main function of accounts department is tax payments. They deal with the central sales tax, KVAT, excise and other department. Monthly returns are prepared by the accounts department.
6.3 Marketing Department
Marketing department is entrusted with the function of planning and executing the conception, pricing, promotion and distribution of ideas goods services, to create exchanges that satisfy individual and organizational boards. In simple terms the marketing function is catered around the customer and his needs. Marketing Policy: Top Note Aromatics chemical industry wants to reduce the number of intermediaries, so they have no distributors. Billing is directly done to the customers. In case of other state sales, it’s a one through the unit only. It indicates the direct export to the customers from the authorized employee of the firm. In the case of logistics the supply of products is done through company owned feet of vehicles and other channel. For long distance it should decide the channel because the products are the sensitive in nature, this shows the quality aspects of the product. Same policy followed with inter-state also.
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Objectives of Marketing: The basic objectives of marketing are to satisfy human wants. The important objectives of marketing are briefly explained below: 1. Customer Satisfaction through Quality Products 2. Sales Service 3. Maintaining Price Leadership: 4. Achieving Maximum Market Share: 5. Other Objectives: ? Increasing firms sales. ? To guarantee firms survival. ? To fortify better resource utilization. ? To meet customer needs.
Present Turnover of the Firm:
Year 2011-12 2012-13 Turnover (in lakhs) 400 600
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Present market condition: For their products Top Note Chemicals is facing demand higher than supply, which is a healthy situation. Some time it had failure in the supply of the materials to their customers. The output depends on the availability of raw materials mainly waste acids, mixture of sulfuric acids. It tries to later products to major customers. It is the main reason for expansion of production facilities. Market Segmentation: Top Note Chemical industry is the premium brand player in the Mysore area according to the basic chemical products. Geographically the market Top Note segmented into three areas. 1. Karnataka 2. Maharashtra 3. Gujarat 4. West Bengal 5. Himachal Pradesh Customers of the Top Note Chemicals: Topnote Aromatics, through its dedication to technical excellence and an unwavering commitment to its clients has developed an efficient network of satisfied clientele. Having established a strong domestic and international presence, we now look forward to expand our horizons and enter into fresh markets. Topnote Aromatic’s meticulous efforts, transparency, integrity and commitment to technical excellence have contributed in creating vast customer base across the globe. We are moving ahead with its vision to develop global strategic alliances with quality lenders and expand into new markets.
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Some of our valued customers are: ? ? ? ? ? ? ? ? Glaxo India S.D Fine Chem Ltd Rankem E Merck India Thermo Fisher Nerolac Paints Rajesh Enterprises, Mumbai Karnataka Agro-Chemicals(leading manufactures in agricultural fertilizers)
Distribution Channel:
Pricing Strategy: Top Note has taken pricing strategy special kind of plan formatted in order to meet the changes of external factors particularly from the policies of competitors and internal factors. Pricing strategies change with competitive situation. But the firm adopted premium pricing strategy for its customers.
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Price Fixation: Price of the product depends on two components: a. Cost of raw material - variable. b. Operational &Processing cost - fixed. Product price changes with change in raw material price, which is considered as a variable. Minimum period of two weeks taken for price revision, though in some cases raw materials price fluctuates each day.
6.4 Human Resource Department
Human resource management involves personnel management, personnel administration, employee welfare, manpower planning, industrial relations etc.Human resource department is headed by General Manager and assisted by all the employees in the organization. A top note chemical does pro-active approach to managing people in the organization. It constitutes a series of integrated decisions that helps to consolidate the employment relationship and believes that their quality contributes to the efficiency of the organization and helps the employees to achieve their objectives.
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In the case of production centers, factory manager manages all personal staff and creates a good relationship with office staff and workers. He undertakes their wants. He will motivate entire unit as a whole. Each unit works as an independent unit with its own modes of training, induction, performance, appraisal etc. All the functions are done in consultation with the partners of the firm and the general manager. The general manager suggests the salary system as per the labour laws to the workers as well as the firm employees. The Top Note adopted the schemes which are legally accepted by the laws and local authorities. As the Top Note is chemical industry for that manager should take care of his employees and workers. He should provide safety utilities to the workers. And develop a safe environment to work in the plant area. Health and Safety: In Topnote Aromatics personnel department has taken adequate to ensure healthy working condition within the organization by taking adequate measure like cleanliness, disposal of waste and effluents, ventilation and temperature, dusts and fumes, lighting, providing, clean drinking water etc. Welfare Facilities: Washing facilities,firstaid, shelter rooms, Rest rooms, lunch rooms, uniform and shoes, etc. Working Hours : Office time begins with 9 A.M up to 5.30 P.M. Production time begins with 9 A. M to 5.30 P. M
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Remuneration Policy: As per the minimum wages act the firm providing to their employees and workers the fair wages. The firm providing the benefits like fixed wages, basic, dearness allowance, ESI, PF and some cases advances too. The firm is providing the salaries to their wages on the basis of rules prescribed under 137 K E A 1969 and under Karnataka Minimum Wages and Rules and P W Rules 1969.
Manager handles many planning process they are: ? Forecasting future manpower requirement, it is estimated based upon specific future plans of the company. ? Identifying present manpower resources and analyzing the degree to which these resources are employed optimally. ? Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of the requirement, to determine their adequacy, both quantitatively and qualitatively. ? Planning the necessary programs of requirement, selection, training and development, utilization, transfer, promotion, motivation and compensation. So that future manpower requirement will be met.
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6.5 Production Department
Production is the core function concerned with Top Note as it has wide range of products and production take place in plants located at faraway places. More over as faced with stiff competition, the only way to increase the profit is by the cost reduction, as price increase is not at all possible. So each unit has its own research and development facilities working for the better production functions to increase the efficiency in a way result in cost reduction. Production takes place in Mysore, Metagalli production center. Each division is self-reliant in its activities of manufacturing, quality control, research and development production center is headedby factory manager’s reports to a production manager at the corporate office. The Company’s production department handles the production of chemicals. The main raw material for product is caustic soda, raw water, consists or sulfuric acids, waste acids from the production these are the waste chemical of the production except caustic soda.According to the composition of the raw material the production department takes its activities. The plant production style comes to in process layout. The raw materials go through the various processes for development of final product and it takes more time too approximately a week for final output. The Top Note firm installed the driers and reactors it costs around 30 lacks each.
Functions of Production Department:
? ? ? ? ? ? Improving volume of production. Reduction rejection rate. Controlling idle machine and manpower hours. Eliminate Accidents. Total quality management. Minimization inventory and achieving better yields.
Depending upon the type of products, the production process is divided in to three: ? Reactors – it converts the liquid form into powders ? Driers
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Driers and Reactors
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Driers
Reactors
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Familiarization Report on Top Note Aromatics Duties and Responsibilities:
? ? ? ? ? ? Checking absenteeism, theft and pilferage. Maintaining accuracy. Maintaining delivery schedules. Effective grievances handling. Controlling the quality of product. Decreasing machine set up time
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Process of Chemical Production
Reactors
Driers
Storage of F.G
6.6 Purchase Department
The purchase department is entrusted with the function of purchasing raw materials. In the present scenario with the cut throat competition, cost reduction is practiced in every sphere of the business and purchase is one of the important functions where cost can be highly controlled. High quality materials with lower cost became the motto of every organization for a meaningful survival, for this organizations practice supplier rating and vender management. There is a centralized purchase department headed by purchase manager who is responsible for taking purchase decisions for all units. The decisions are made on the basis of following factors:
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? Market conditions ? Availability of raw materials ? Price of raw materials The purchase manager concerns with the factory managers regarding the technical specifications, manufacturer, quality standards, cost of materials, availability, time delay etc. In case of engineering goods, testing equipments, speciality chemicals, instruments etc the purchase
manager seeks help from the engineers and the other technical persons working with the research and development. Purchase manager also works in coordination with the chief accountant, to know the position and about the credit position with the suppliers.
Procurement and Issue of Materials: ? Purchase. ? Store. A. Purchase The production department, usually factory manager informs the purchase department about the requirements of materials. The information is passed through the purchase intent issued by factory manager to the purchase manager. In case of regular product like stationary and small purchase, the store in charge issues the purchase intend giving a copy to the factory manager item specification, required quantity, name of the manufacture, approximate costs etc. are mentioned in the purchase intend. The purchase department then enquires with the suppliers and invites quotation. From the received quotation mentioning the offered price, mode of payment, discount if any, time need for dispatches etc., purchase department chooses the most appropriate by considering all the criteria.
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Purchase manager consults with accounts department about the availability of cash, payment condition, balance of any paid, whether the account with the supplier crossed the credit limit etc. with the approval of accounts department, purchase manager then sends a purchase order to the supplier. In case of new materials or new supplier, purchase department insist or samples to be supplied before the purchase. These samples are tested within house laboratories. Orders are given only when the sample confirms to the required quality levels.
B. Store Store is very important to arrange different items of materials in a systematic manner. Store records information relating to receipts and issue of materials and products. Proper storage is essential for material cost control. Store is headed by the store in charge who report to the factory manager and purchase manager. Each production center has its own store. Material purchasing is done as a centralized activity and then it is supplied to stores at production centers. The risk job in chemical industry comes in the stores. Because if any leakages findings during storage it states the material efficiencies and quality of the material. And it is the major duty to protect the raw material in storage from the sunlight and water, so the Top Note adopted some measurement to save the raw material as well as the final product. Store is divided into three: ? ? Raw material stores. Engineering Stores (electrical suppliers).
? Finished goods store.
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6.7 Laboratory
The Top Note adopted inbuilt laboratory facility in the firm campus. For utilizing the time and expenditure it will help to protect the interest of the customer as well the firm. It is necessary to check whether the material quality is positive or negative. From the adopting the laboratory department in the Top chemicals will helps to control the cost and wastages. This laboratory is furnished with well-equipped lab equipment’s and the environment. On the other, the quality process done in the same. And this laboratory department under the control of the well trained lab in charge and quality person. With the assistance of the quality person the lab in charge will do the necessary procedure and tests for the chemical products and raw material. For the quality issues they will conduct the tests for the materials are: ? Raw material test ? Finished product test Raw material testing For the inbound materials they are doing the laboratory testing for future usage. It will check efficiency and quality of the material. As per the instruction of the management this test will conducting for the future usage in the firm. This testing helps while the production procedures carried out. Finished product testing After the completion of the manufacturing process it is the duty of the production department to test the output. For better results finished goods testing will helps positive results from the customers. Here the lab can find out the deficiencies in the product and neglects the selling of defected materials.
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APPENDIX:
Websites Referred:
? www.wikipedia.com ? www.topnote.in. ? www.google.com ? www.indiaindustrystat.com
Journals:
? ? Annual reports of the partnership firm Audited report of the firm.
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doc_408293873.docx
We conducted our research analysis on the chemical industry as the part of the MBA curriculam
Familiarization Report on Top Note Aromatics
Report 2013
1. INTRODUCTION
The Business Familiarization Report describes the overall functions of the departments and the firm. Any organization carries number of functions in the organizations but all the functions have its own identity in the firms business. There for our study focuses on entire business organization and its activity. For this we the team members selected a chemical firm in the Mysore. In this report we will focus on the various departments and its working responsibilities.
Objectives of the study:
? ? ? ? ? ? To get an overview of management in industrial functions. To study the functions of various departments. To understand the process flow in each departments. To understand hierarchical structure of various departments. To do SWOT analysis of the organization. To have an exposure to the working environment.
Scope of the study:
The study has been conducted at Top Note Aromatics Chemicals in Mysore during August in 2013.The study focuses on acquiring knowledge regarding the functioning of various departments in the organization.
Methodology:
The study is based on both primary & secondary data. Primary data are being collected from employees & staff through formal interview. Secondary data are those collected from annual reports or unpublished source that is through quality reports, brochures, company records and Internet.
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2. Industry Profile
Chemical industry is one of the oldest industries in India. It not only plays a crucial role in meeting the daily needs of the common man, but also contributes significantly towards industrial and economic growth of the nation The chemical industry which contributes significantly towards industrial and economic growth of the nation. It is highly science based and provides valuable chemicals for various end products such as textiles, paper, paints and varnishes, leather etc. which are required in almost all walks of life. The Indian Chemical Industry forms the backbone of the industrial and agricultural development of India and provides building blocks for downstream industries. Chemical Industry is an important constituent of the Indian economy. Its size is estimated at around US$ 35 billion approx. which is equivalent to about 3% of India's GDP. The total investment in Indian Chemical Sector is approx. US$ 60 billion and total employment generated is about 1 million. The Indian Chemical sector accounts for 13-14% of total exports and 8-9% of total imports of the country. In terms of volume, it is 12th largest in the world and 3rd largest in Asia. Currently, per capita consumption of products of chemical industry in India is about 1/10thof the world average. Over the last decade, the Indian Chemical industry has evolved from being a basic chemical producer to becoming an innovative industry. The Indian Chemical Market Segment wise is as under: Segment Basic Chemicals Specialty Chemicals High End / Knowledge Segment Total Market Value (billion US$) 20 9 6 35
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The Indian Chemicals Industry comprises both small and large-scale units. The fiscal concessions granted to small sector in mid-eighties led to establishment of large number of units in the Small Scale Industries (SSI) sector. Currently, the Indian Chemical industry is in the midst of a major restructuring and consolidation phase. With the shift in emphasis on product innovation, branch building and environmental friendliness, this industry is increasingly moving towards greater customer orientation. Even though India enjoys an abundant supply of basic raw materials, it will have to build upon technical services and marketing capabilities to face global competition and increase its share of exports. As the Indian economy was a protected economy till the early nineties, very little large-scale R&D was undertaken by the Chemical industry to create intellectual property. The Industry would, therefore, have to make large investments in R&D to successfully counter competition from the international chemicals industry. India has a number of scientific institutions and the country’s strength lies in its large pool of highly trained scientific manpower. India also produces a large number of fine and specialty chemicals, which have very specific uses and are essential for increasing industrial production. These find wide usage as food additives and pigments, polymer additives, anti-oxidants in the rubber industry, etc. At present the India has emerging in its basic chemical sectors because it constitutes the small owned as well as family well developed industry too. It encourages the individual income and comes to the national growth. Addition of more and more of establishment of basic chemical industries helps to create good feasible environment to the chemical industries and the dependent industries too. In case of manufacturing of daily needs like paste, soaps, foods and some more products require the chemicals, if the firm fails to supply the needs then normally the country should import daily needs at higher price. Totally, the basic chemicals controls the currency outflow to other nations.
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3. Company Profile
a) Background of the company:
Topnote aromatics is one of the leading industrial chemical manufacturer and supplier meetings the demand of global clients in various fields of pharmaceutical, agricultural, metal furnishing and reagents for laboratory and research applications. They deal in both organic and inorganic chemicals, and therefore our horizon of trade in the market has widened. They are engaged in the manufacture and supply of ammonium molybdate, molybdic acid, sodium molybdate, sodium tungstate and tungsten acid and many more. By pursuing and implementing the highest standards of excellence in their operations, they have nurtured their capabilities. TOPNOTE is the history of chemical production in Mysore. It established itself 1983, as small size enterprise with the 2 partners namely Dr. SubbaRao and Dr.B.R.Pai. It is 10kms away from Mysore town and placed in the Metagalli Industrial Area. In 2004 the Top Note partners sold to 3 partners namely Mr. Dinesh Kothari, Mr. Madanlal Kothari and Mrs. Seema Kothari as family members are the partners to the firm of chemical industry. It began the production and distribution of chemicals under the brand name TOPNOTE. The firm valued while transferring its ownership it costs around Rs.40 Lakhs. Top Note Aromatics is the market leader in Karnataka, Maharashtra & some parts of the Gujarat, West Bengal and Himachal Pradesh. The company has made its presence significantly in West Indian market. It is a multi-core, multi-Product Company which has been deeply involved in the manufacture, distribution, sale, and installation and servicing to bring the customer satisfaction and social responsibilities.
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In the last one decade paralleled growth was witnessed in Top Note company to emerge as a leader in the chemicals diversify into the manufacture of various fields of pharmaceutical, Agriculture, metal furnishing and reagents of laboratory & research application. At present Top Note Aromatics Company have average turnover of Rs 5.0 crore per annum and with manpower of 18 employees including 3 Lab Technicians. It has an incremental growth due to the young and dynamic MD’s expansions and growth plans. The company increased its production capacity over 20% in recent years incurring huge additional investments. Presently it is enjoying the benefits. At the end of current year an increment growth of 20% when compared with the last year is witnessed. The Top Note is the single largest chemical industry in partnership firm which manufacturing specialty chemical over the years in the Mysore area. Top Note has steadily developed in to a professionally managed firm comprising its manufacturing unit with a total installed capacity of 300 ton per annumand effective centralize support services wholly dedicated to the most existing standards of quality and customer services, constantly motivated by the need to ensure total product satisfaction.
b) Vision, Objectives and Quality Policy:
“Our vision is to expand product capacity and environmental protection from usage of wastages and add some more products to our customer to enhance their business as well as ours. We aim to make each of our products a paragon of quality and quality excellence. Through our constant Endeavour’s of research and innovation we strive to come up with new products that help build the products”
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Objectives: ? ?
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To control environmental pollution from the using of wastages of the industries To add more chemical products to the firm
Quality policy: For every industry it is challenge to control the quality related issues. For quality check they have adopted in house quality monitoring facilities to make product effective. The tests conducted in the plant premises are, ? ? ? ? Purity test Assay test Moisture content test Other impurity test.
c) Location:
Topnote Aromatics is located just 6km from historical city Mysore in the State of Karnataka. It is about10km from Krishna Raja Sagara dam. The manufacturing facility consists of laboratory administration and head office is housed over an area of,
Address of the factory
Topnote Aromatics (P) ltd. #97P, K.R.S Road, Metagalli Post, Mysore- 570016.
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d) Corporate Social Responsibilities:
The Top Note Aromatics chemical is also very passionate about several Social initiatives. The CSR activities are run through the firmto save the natural environment.
The firm started to save natural environment from the chemical equipment, however it is the firm which producing from the wastages of other industries as raw materials. And the firm facilitate in to the development of the forests and gardening to save the soil. They are taking their own firms wastages to production in the form of water and smoke. Using that they are controlling their cost and producing by-products.
From the negligence of wastages of chemical instruments saves the outside nature and also the firm adopted a good smoking zone for wastages cannot mix with the oxygen.
The firm has started water management in their firm campus. They are using the waste water in to the production purpose. Not only implementing in the firm campus they are also consulting other firms to adopt these activities to implementing.
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4. Product Profile
Topnote aromatics is one of the leading industrial chemical manufacturer and supplier meetings the demand of global clients in various fields of pharmaceutical, agricultural, metal furnishing and reagents for laboratory and research applications. They deal in both organic and inorganic chemicals, and therefore our horizon of trade in the market has widened. They are engaged in the manufacture and supply of ammonium molybdate, molybdic acid, sodium molybdate, sodium tungstate and tungsten acid and many more. By pursuing and implementing the highest standards of excellence in their operations, they have nurtured their capabilities. The product of the firm comes from the wastages of other manufacturing concerns. It inputs the wastages into output for the firm. And this output goes to other chemical industries as raw materials.
Types of Products:
? ? ? ? ? Ammonium Molybdate Molybdic Acid Sodium Molybdate Sodium Tungstate Ammonium Sulphate
Products Grades:
The products grade can be divided as agricultural purpose and laboratory purposes a. AL Grade Chemicals b. AR Grade Chemicals
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Ammonium Molybdate: [[NH4]6MO7O24.4H2O]
It is an odorless crystalline compound ranging in color from white to yellow green that has a solubility of 43 g/100 cc in cold water. Ammonium molybdate decomposes at 190 c boiling temperature and loses one water at 90 Celsius freezing temperature. It is also called molybdic acid hex ammonium salt tetra hydrate, ammonium molybdate tetra hydrate, and ammonium hepta molybdate tetra hydrates. Ammonium molybdate is used in various sectors: ? ? ? ? ? ? Used as catalyst in manufacturing color pigments To decorate ceramics In chemical analysis to find the presence of phosphates, arsenics, lead. In the chemical industry as a source of molybdenum’s ions. Pharmaceutical Other fields
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Molybdic Acid:
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It is a white or slightly yellow color powder that largely consists of an ammonium molybdate compound. Practically used for the determination of phosphorus-phosperate and lead. It is graded as a reagent and technical acid. Sparingly soluble in cold and more in hot water, it is Sparingly soluble in cold and more in hot water, Sparingly soluble in cold and more in hot water, it is also mixes with some of the ammonium and other fixed alkaline.
Sodium Molybdate:
Sodium molybdate is an odorless compound with the small white scales and flakes appearance that has a melting point of approximately 680 c (1200 69 ). Available with a specific gravity of 3.28 at 18 (64.4 ). It emits toxic metal fumes when heated to be decomposed. Soluble in (212 ). Sodium molybdate should be preserved to avoid moisture,
84g/100g water at 10
heat,flames, ignition sources, and incompatibles. Sodium molybdate acts as an excellent inhibitor and is extensively used as:
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? ? ? Production of molybdate tonners and colors. Dye and pigment production Metal production.
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Sodium Tungstate: [Na2WO4]
Sodium tungstate of sodium is useful as a source of tungsten. It is prepared from tungsten ores used to manufacture tungsten by reducing it.It is often found as the dihydrate, Na2WO4-2H2O this salt is soluble in water and is a moderately strong oxidizing agent but finds no common use in the chemistry laboratory. Like the molybdate, the deep colored complex tungstate (VIV) is formed on reducing the compound with the very mild reducing agent such as complex organic compounds. It is also thought to be a possible inhibitor of protein-tyrosine phosphate (PTPAC). It is also sometimes used as a fire proofing agent.
Ammonium Sulphate: [(NH4)2SO4] Ammonium sulphate is an inorganic salt with a number of commercial uses. It contains 21 cat ion, and 24 nitrogen as ammonium
sulfur as sulfate an ions.
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5.
ORGANIZATION STRUCTURE
5.1 Organizational Structure
The Top Note follows absolute dedicated approach. The organization of its manufacturing operations is based on product divisions in to group of products in which are similar in technology or manufacturing process. Each group is constituted by divisions or profit centers. Each of these group, are led by absolute supervisors. A central manager leads the major corporate function, human relational, marketing, production and financial functions. Some of these functions in turn are reported to the managing director.
5.2 Organizational Chart
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5.3 Organizational Outlook
PARTNERS Dinesh Kothari Seema Kothari Madanlal Kothari Managing Partner Manager Auditor Establishment Main production Raw materials for production Production range Present production Number of machines Number of workers at factory Dinesh Kothari Prakash Kumar N Umed Raj Jain 1983 Chemical powders and by-products
- Waste acids, caustic soda, water, nitric acid and others Premium 20 tons p.m. (including by product)
- 04 (Reactors and Driers) - 15
Payment within one month to suppliers - 80%
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5.4 Duties and Responsibilities Heads
1. Manager
He is responsible for all the business activities of the firm matters in the organization. He prepares financial plan and activate in the same. He assesses the financial needs of the organization. He should be known the financial activities, marketing, human relational and production activities. All these are necessary to prepare a sound financial policy for the organization. He is also responsible for all the firms’ activities. Other function includes the human relational, controlling the resources, recruitment, coordinating and directing.
2. Office Assistant
She is responsible for keeping the details of day book, ledger and P.F registers. Moreover, she should record and maintain all the details of the sales tax calculation and related documents and produce them on demand, salary administration, attendance registers and maintaining the office requirements.
3. Supervisor
He is charge of the production department of the organization. The heart of the manufacturing industry is production department.He aims to increase the production capacity and control the wastageswhile producing. As a part of the manufacturing industry it is necessary to maintain the production quality and product quality assurance. The supervisor should be tactful in his attitudes. He should coordinate the workers and
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neglects the conflicts in organization and while production. He should be known the strength and weakness of the firm’s products. He is also able to design and implement production strategies to enhance increase the capacity of production and product quality. He should understand changing market condition and customer satisfaction.
4. Operators
A operator occupies a very important position in an organization. The duty of an operator is to operate the machines and train the lower people to enhance the organizational goals and objectives.He should know the operating the machines. For that he should take the necessary training from the experts appointed by the management.
5. Helpers
The duty and responsibility of a helper include the labour work engaged in the production activities. He ordered from the supervisor to do his work.
6. Packers
Their duty consists of package making. He should do the packaging activity as per the instructions of the management.
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6. FUNCTIONAL DEPARTMENTS
6.1 Finance Department
Finance department manages the fund available for the operations of the business, by making a balance between the fund inflow and fund outflow. 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 profitability utilize these funds. Finance Manager directly does the planning, organizing, directing and controlling financial activities in the society. Finance department is headed by general manager. Factory supervisor should report to the General Manager and in certain strategy and urgent issues directly report to managing director and take decisions. Factory supervisor works in the coordination with chief accountant, internal auditor, production manager, marketing manager, branch managers. Sources of Finance:Top Note find sources of finance through banks. As it is a partnership firm, the partners contribute their funds to make capital requirements and other expenditure with the help of banks and financial institutions. Top Note Aromatics full fills its requirements from the different financial institutions and partners too. The firm get benefits from the industrial development banks. As in the credit sale the firm will allowing up to 30 day to their customer to pay the credit amount.
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Company’s Financial Policies:-
? ?
?
Low cost of operation of funds. Efficient receivable management, through acceleration of funds. Faster sourcing of funds from institutions.
Functions of Finance Department:Finance function is concerned with all aspects of business operations. It is very difficult to set limits to the finance function. The key activities under finance department are: ? ? ? ? ? ? ? ? ? Management of firm’s assets structure. Financial analysis, planning and control. Management of firm’s financial structure. Estimating capital requirement. Determining sources of fund. Utilization of fund. Disposal of surplus. Management of cash. Financial controls.
6.2 Accounts Department
Accounts department deals with day to day book keeping, daily collections, salaries of all employees, etc. Accounts department is headed by chief accountant who is the internal auditor of the firm. From his assistance the partners will decide the firm monetary requirement. An internal auditor works in coordination with the partners, managing partner and office assistant on the fund flow issues and in case of any shortage of cash occurs. Managing directorcanalized
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the shortage from financial institutions in case of emergency and normal cases, manager tightness the payment collections from the whole sellers and other sources. Other main function of accounts department is tax payments. They deal with the central sales tax, KVAT, excise and other department. Monthly returns are prepared by the accounts department.
6.3 Marketing Department
Marketing department is entrusted with the function of planning and executing the conception, pricing, promotion and distribution of ideas goods services, to create exchanges that satisfy individual and organizational boards. In simple terms the marketing function is catered around the customer and his needs. Marketing Policy: Top Note Aromatics chemical industry wants to reduce the number of intermediaries, so they have no distributors. Billing is directly done to the customers. In case of other state sales, it’s a one through the unit only. It indicates the direct export to the customers from the authorized employee of the firm. In the case of logistics the supply of products is done through company owned feet of vehicles and other channel. For long distance it should decide the channel because the products are the sensitive in nature, this shows the quality aspects of the product. Same policy followed with inter-state also.
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Objectives of Marketing: The basic objectives of marketing are to satisfy human wants. The important objectives of marketing are briefly explained below: 1. Customer Satisfaction through Quality Products 2. Sales Service 3. Maintaining Price Leadership: 4. Achieving Maximum Market Share: 5. Other Objectives: ? Increasing firms sales. ? To guarantee firms survival. ? To fortify better resource utilization. ? To meet customer needs.
Present Turnover of the Firm:
Year 2011-12 2012-13 Turnover (in lakhs) 400 600
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Present market condition: For their products Top Note Chemicals is facing demand higher than supply, which is a healthy situation. Some time it had failure in the supply of the materials to their customers. The output depends on the availability of raw materials mainly waste acids, mixture of sulfuric acids. It tries to later products to major customers. It is the main reason for expansion of production facilities. Market Segmentation: Top Note Chemical industry is the premium brand player in the Mysore area according to the basic chemical products. Geographically the market Top Note segmented into three areas. 1. Karnataka 2. Maharashtra 3. Gujarat 4. West Bengal 5. Himachal Pradesh Customers of the Top Note Chemicals: Topnote Aromatics, through its dedication to technical excellence and an unwavering commitment to its clients has developed an efficient network of satisfied clientele. Having established a strong domestic and international presence, we now look forward to expand our horizons and enter into fresh markets. Topnote Aromatic’s meticulous efforts, transparency, integrity and commitment to technical excellence have contributed in creating vast customer base across the globe. We are moving ahead with its vision to develop global strategic alliances with quality lenders and expand into new markets.
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Some of our valued customers are: ? ? ? ? ? ? ? ? Glaxo India S.D Fine Chem Ltd Rankem E Merck India Thermo Fisher Nerolac Paints Rajesh Enterprises, Mumbai Karnataka Agro-Chemicals(leading manufactures in agricultural fertilizers)
Distribution Channel:
Pricing Strategy: Top Note has taken pricing strategy special kind of plan formatted in order to meet the changes of external factors particularly from the policies of competitors and internal factors. Pricing strategies change with competitive situation. But the firm adopted premium pricing strategy for its customers.
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Price Fixation: Price of the product depends on two components: a. Cost of raw material - variable. b. Operational &Processing cost - fixed. Product price changes with change in raw material price, which is considered as a variable. Minimum period of two weeks taken for price revision, though in some cases raw materials price fluctuates each day.
6.4 Human Resource Department
Human resource management involves personnel management, personnel administration, employee welfare, manpower planning, industrial relations etc.Human resource department is headed by General Manager and assisted by all the employees in the organization. A top note chemical does pro-active approach to managing people in the organization. It constitutes a series of integrated decisions that helps to consolidate the employment relationship and believes that their quality contributes to the efficiency of the organization and helps the employees to achieve their objectives.
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In the case of production centers, factory manager manages all personal staff and creates a good relationship with office staff and workers. He undertakes their wants. He will motivate entire unit as a whole. Each unit works as an independent unit with its own modes of training, induction, performance, appraisal etc. All the functions are done in consultation with the partners of the firm and the general manager. The general manager suggests the salary system as per the labour laws to the workers as well as the firm employees. The Top Note adopted the schemes which are legally accepted by the laws and local authorities. As the Top Note is chemical industry for that manager should take care of his employees and workers. He should provide safety utilities to the workers. And develop a safe environment to work in the plant area. Health and Safety: In Topnote Aromatics personnel department has taken adequate to ensure healthy working condition within the organization by taking adequate measure like cleanliness, disposal of waste and effluents, ventilation and temperature, dusts and fumes, lighting, providing, clean drinking water etc. Welfare Facilities: Washing facilities,firstaid, shelter rooms, Rest rooms, lunch rooms, uniform and shoes, etc. Working Hours : Office time begins with 9 A.M up to 5.30 P.M. Production time begins with 9 A. M to 5.30 P. M
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Remuneration Policy: As per the minimum wages act the firm providing to their employees and workers the fair wages. The firm providing the benefits like fixed wages, basic, dearness allowance, ESI, PF and some cases advances too. The firm is providing the salaries to their wages on the basis of rules prescribed under 137 K E A 1969 and under Karnataka Minimum Wages and Rules and P W Rules 1969.
Manager handles many planning process they are: ? Forecasting future manpower requirement, it is estimated based upon specific future plans of the company. ? Identifying present manpower resources and analyzing the degree to which these resources are employed optimally. ? Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of the requirement, to determine their adequacy, both quantitatively and qualitatively. ? Planning the necessary programs of requirement, selection, training and development, utilization, transfer, promotion, motivation and compensation. So that future manpower requirement will be met.
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6.5 Production Department
Production is the core function concerned with Top Note as it has wide range of products and production take place in plants located at faraway places. More over as faced with stiff competition, the only way to increase the profit is by the cost reduction, as price increase is not at all possible. So each unit has its own research and development facilities working for the better production functions to increase the efficiency in a way result in cost reduction. Production takes place in Mysore, Metagalli production center. Each division is self-reliant in its activities of manufacturing, quality control, research and development production center is headedby factory manager’s reports to a production manager at the corporate office. The Company’s production department handles the production of chemicals. The main raw material for product is caustic soda, raw water, consists or sulfuric acids, waste acids from the production these are the waste chemical of the production except caustic soda.According to the composition of the raw material the production department takes its activities. The plant production style comes to in process layout. The raw materials go through the various processes for development of final product and it takes more time too approximately a week for final output. The Top Note firm installed the driers and reactors it costs around 30 lacks each.
Functions of Production Department:
? ? ? ? ? ? Improving volume of production. Reduction rejection rate. Controlling idle machine and manpower hours. Eliminate Accidents. Total quality management. Minimization inventory and achieving better yields.
Depending upon the type of products, the production process is divided in to three: ? Reactors – it converts the liquid form into powders ? Driers
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Driers and Reactors
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Driers
Reactors
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? ? ? ? ? ? Checking absenteeism, theft and pilferage. Maintaining accuracy. Maintaining delivery schedules. Effective grievances handling. Controlling the quality of product. Decreasing machine set up time
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Process of Chemical Production
Reactors
Driers
Storage of F.G
6.6 Purchase Department
The purchase department is entrusted with the function of purchasing raw materials. In the present scenario with the cut throat competition, cost reduction is practiced in every sphere of the business and purchase is one of the important functions where cost can be highly controlled. High quality materials with lower cost became the motto of every organization for a meaningful survival, for this organizations practice supplier rating and vender management. There is a centralized purchase department headed by purchase manager who is responsible for taking purchase decisions for all units. The decisions are made on the basis of following factors:
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? Market conditions ? Availability of raw materials ? Price of raw materials The purchase manager concerns with the factory managers regarding the technical specifications, manufacturer, quality standards, cost of materials, availability, time delay etc. In case of engineering goods, testing equipments, speciality chemicals, instruments etc the purchase
manager seeks help from the engineers and the other technical persons working with the research and development. Purchase manager also works in coordination with the chief accountant, to know the position and about the credit position with the suppliers.
Procurement and Issue of Materials: ? Purchase. ? Store. A. Purchase The production department, usually factory manager informs the purchase department about the requirements of materials. The information is passed through the purchase intent issued by factory manager to the purchase manager. In case of regular product like stationary and small purchase, the store in charge issues the purchase intend giving a copy to the factory manager item specification, required quantity, name of the manufacture, approximate costs etc. are mentioned in the purchase intend. The purchase department then enquires with the suppliers and invites quotation. From the received quotation mentioning the offered price, mode of payment, discount if any, time need for dispatches etc., purchase department chooses the most appropriate by considering all the criteria.
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Purchase manager consults with accounts department about the availability of cash, payment condition, balance of any paid, whether the account with the supplier crossed the credit limit etc. with the approval of accounts department, purchase manager then sends a purchase order to the supplier. In case of new materials or new supplier, purchase department insist or samples to be supplied before the purchase. These samples are tested within house laboratories. Orders are given only when the sample confirms to the required quality levels.
B. Store Store is very important to arrange different items of materials in a systematic manner. Store records information relating to receipts and issue of materials and products. Proper storage is essential for material cost control. Store is headed by the store in charge who report to the factory manager and purchase manager. Each production center has its own store. Material purchasing is done as a centralized activity and then it is supplied to stores at production centers. The risk job in chemical industry comes in the stores. Because if any leakages findings during storage it states the material efficiencies and quality of the material. And it is the major duty to protect the raw material in storage from the sunlight and water, so the Top Note adopted some measurement to save the raw material as well as the final product. Store is divided into three: ? ? Raw material stores. Engineering Stores (electrical suppliers).
? Finished goods store.
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6.7 Laboratory
The Top Note adopted inbuilt laboratory facility in the firm campus. For utilizing the time and expenditure it will help to protect the interest of the customer as well the firm. It is necessary to check whether the material quality is positive or negative. From the adopting the laboratory department in the Top chemicals will helps to control the cost and wastages. This laboratory is furnished with well-equipped lab equipment’s and the environment. On the other, the quality process done in the same. And this laboratory department under the control of the well trained lab in charge and quality person. With the assistance of the quality person the lab in charge will do the necessary procedure and tests for the chemical products and raw material. For the quality issues they will conduct the tests for the materials are: ? Raw material test ? Finished product test Raw material testing For the inbound materials they are doing the laboratory testing for future usage. It will check efficiency and quality of the material. As per the instruction of the management this test will conducting for the future usage in the firm. This testing helps while the production procedures carried out. Finished product testing After the completion of the manufacturing process it is the duty of the production department to test the output. For better results finished goods testing will helps positive results from the customers. Here the lab can find out the deficiencies in the product and neglects the selling of defected materials.
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APPENDIX:
Websites Referred:
? www.wikipedia.com ? www.topnote.in. ? www.google.com ? www.indiaindustrystat.com
Journals:
? ? Annual reports of the partnership firm Audited report of the firm.
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