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AN INDUSTRIAL VISIT REPORT ON AEMEZ INDUSTRIAL

PREPARED BY CHOVATIYA SAGAR D. ACADEMIC YEAR: 2010-2011

GUIDED BY PROF. CHIRAG V. ERDA

FOR PARTIAL FUTFILLMENT OF F.Y.B.B.A. SUBMITETED TO SAURASHTRA UNIVERSITY RAJKOT.

SHRI GYANYAGNA COLLEGE OF SCIENCE & MANAGEMENT RAJKOT.

Declaration
I, the undersigned, CHOVATIYA SAGAR a studet of F.Y.B.B.A. of Shri Gyanyagna College. Here by declare that the project work presented in this report is my own work and has been carried out under the supervision of prof. Chirag V Erda

Date :- . Place:- Rajkot Signature of the student

(Chovatiya sagar)

Acknowledgement
It is great pleasure for me to submit this industrial project to saurashtra university, Rajkot. This project has been provided a really wonderful learning experience

I would like to show gratefulness to all the person who have helped me first of all I would like to thanks my co-operative principal Mr. Ashok Patel who has allowed me to have a visit at AEMEZ Industry. I would like to thanks Prof. Chirag V Erda who had helped and guided me.

Secondly I am very grateful to Mr. Pravin Gothi the manager of this industry who give all information about various department.

Date:Place:-Rajkot

Signature of the student

(chovatiya sagar)

Preface

A Student of F.Y.B.B.A. of Gyanyagna college of science and management, Rajkot. According to the syllabus subscribed by saurashtra university of Gujarat is required to submit a project report on an industrial training made by items. Here is given on project report on AEMEZ Industry This report has been prepared on the basis of information collected during training undergone by me. Almost care has been taken by me that to information true and I sincerely apologies if any wrong information is tare.

Index

Sr.

Particulars

Page No.

1. General Information 2. Production Department 3. Personal Department 4. Marketing Department 5. 6. 7. 8. Financial Department S.W.O.T Analyses Future Plans Social Activities

9. Suggestion 10. Conclusion 11. Appendix 12. Bibliography

Index

Sr. No. Particular 1. Introduction 2. 3. 4. 5. 6. 7. History and Development Name, Firm, Type, and Size General Organization Structure Register Office Location of the Unit Time Keeping System

Page No.

Introduction

AEMEZ Industry is located in lodhika G.I.D.C.,Metoda. This industry is small scale unit. This industry manufacturing PVC shrink film. There are four partners in this industry.

(1) (2) (3) (4)

Pravin Gothi Vasant Makadia Santilal Makadia Denish Gothi

Pravin Gothi is manager of this unit. This industry was establish on 25-09-1998. It covered 2000sq.m. area by land and the built area of this industry is 1200sq.m.

History and Development

The promoters of AEMEZ industry is very much nature. They have 15 years of experience in production line of packaging industry.

First of all they start to produce general packing bages for saries packing at junagadh. In 1995 they come to Rajkot and survey some new product like packing of articles.

The PVC shrink film is best for packing. Therefore all partners have decided to manufacturing PVC shrink film of Metoda GIDC.

Profile of the Company

Name Establishment Date Size of unit

:- AEMEZ Industry :- 25-09-1998 :- Small Scale Unit

Industrial Investment :- 40 Lakh Address Product Weekly off Day Slogan of Company Member of Board of Director :- Plot No. G. 1087, G.I.D.C., Metoda, Dist. Rajkot-360021. :- PVC Shrink Film :- Wednesday :- SAVE Product :- Pravin Gothi, Vasant Makadia, Santilal Makadia, Denish Gothi.

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General Organization Structure

Board of Directors

Production Department

Personal Department

Marketing Department

Finance Department

Production Engineer

Personal Manager

Marketing Executive

Accountant

Sales Assistant

Correspondence Clerk

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Register Office

This company is small scale unit so there is same place of register office and production unit. Address of the register office is as following

Plote No. G. 1087, Lodhika G.I.D.C., Metoda, Dist. Rajkot-360021.

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Location of the Unit

For deciding the location of an manufacturing unit various factor play an important role. However the relative importance of the factors which influence the location decision under particular circumstances change with time and situation.

The partner of AEMEZ Industry collected this particular place because government provide many facility like electricity, water supply, transport facility etc. and this place 10 km. away from Rajkot city. Address is given as above.

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Time Keeping System

Time keeping system is very essential for the regulation on rfirm has to develop an efficient time keeping system. There are various factor that offered the system of time keeping like production capacity, demand for the product inventory conversion period etc. After studying all this factors the time schedule of AEMEZ Industry are as under:

For Office People:7 am to 7pm

Break for Office People:1 pm to 2 pm

For Laborer or Worker:7 am to 7 pm

Break for Office People:12:30 to 2:30

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Index

Sr. No. Particular 1. Introduction 2. 3. 4. 5. 6. 7. Organization Structure Production of the Unit Raw Materials used in a Process Manufacturing Process Quality Control Pollution Control

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Introduction

The production function of a business is concerned with the creation of a product or service required to satisfy customer needs, wants and desires. In any business that supplies a needed product or service, it is quite obvious that activities of production system must be closely related to the customer demand as reflected in the continuous flow of orders.

Production means creation of utilities and covers all the activities of procurement, allocation and utilization of resources such as labour, energy, materials, equipments, machinery, etc... Utilities are goods and services which have wantsatisfying powers. Marketing research enables the enterprise to determine the nature and character and of output of by customers. Principles of Management are applied in production involving planning, organizing, directing and controlling the production system. Production management is a process of effectively programming, cocoordinating and controlling production.

Production will be considered most effective when it serves a dual purpose: -

(1)

It must operate primarily to satisfy customer demands particularly relating to quality, quantity, price and above all timing of delivery as scheduled in the orders. It must permit production activities to operate in an economical and efficient manner because cost of production is a vital factor in facing the market competition and in ensuring normal profit and sooner or later enterprise will be priced out of the market. Production management is called upon to develop and establish close relationship day in and day out. Production management assures the accomplishment of twin organizational goals, viz., satisfaction and productivity mainly through the functions of production planning, production control, quality control and inventory control.

(2)

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Organization Structure

Production Engineer

Machine Operator

Helper

Peons and workers

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Production of the Unit

AEMEZ Industry produce mainly PVC shrink film which use to produce varies plastic bags like for cloth, soap, and other product. This PVC shrink film is also use to produce plastic pipe. AEMEZ Industrys directors are also think to introduce other product like PVC pipe, bags, and printing of plastic bags.

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Raw Materials used in Process

For any manufacturing company raw material is most important thing. In AEMEZ Industry raw material used PVC resine, stabilizer, plasticizer i.e. DOP Wax etc.

AEMEZ Industry is also using many equipment like concuter mixer, exdure machine with control panel water tank and winder. All these machine have purchased from Raju Engineering Pvt. Ltd. And some parts of machines have purchased from Bombay Dahiser.

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Manufacturing Process

The main raw material for PVC film is PVC resine and to make it process able some add fives are mixed with PVC resine like stabilizer plasticizer DOP filler etc.

Above all the material drop into high speed mixer and mix the material in 100*C degree temperature and cool in to the tray for 15 minute. Then this material is known as PVC compound.

The PVC compound process into the extrusion with die and various temperatures. Controller in extrusion process proper air given in the film for required size of PVC roll.

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Quality Control

Today the existence of any manufacturing unit depends on the quality of product or services it manufactures or supplies. The image or goodwill of any unit is closely related to the quality of product or services made or supplied by that unit.

Quality is very important for a manufacturer of products or services, because the very existence of a manufacturer depends on the quality level. Level of quality is the mirror for the manufacturer.

In AEMEZ Industry there is a systematic quality control process.

In this industry all the materials coming to the company from different firms has to undergo the inspection and testing as per inspection plan before it goes to stores. There is random testing done on the goods produced so as to check the quality level of the final products. Utmost precautions are taken so as to maintain the quality of final products produced by the firm. Good quality of machineries and raw materials are selected to meet the standards fixed by the firm.

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Pollution Control

The standard of leaving of the people in every country depends upon their industry but it s large responsible for water pollution, air pollution, noise pollution and radiation waste. No one can escape the adverse effects of pollution that has become part of everyday life in every country. Pollution is define as the unwanted my product of human activity.

AEMEZ Industrys directors are applied many rules for pollution control For example, they try to reduce their consumption of electricity. They process west comical before relies it.

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Index

Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Particular Introduction Organization Structure Recruitment and Selection Training and Development Promotion and Transfer Policy Performance Appraisal Industrial Relations Grievance Handling System Employee Benefits and Services Personnel Records

Page No.

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Introduction

There are four main function of industry or production like land, labour, capital and organization. In these labour is most active and effective factor of industry. Employee put their best efforts for an effective performance of their job.

To achieve basic objectives an organization efficient and effective use of the people at work is essential personnel management is a function of the general management with the objective of ensuring that every employee makes his fullest contribution to the achievement of the objective of the business.

It employees get desirable atmosphere and interpersonal relation they give maximum individual development the management of men is challenging task because of the dynamic nature of the people. No two people are similar in mental abilities traditions sentiments and behavior.

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Organization Structure

Personal Department

Personal Manager

Assistant

Clerk

Peons

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Recruitment and selection

Recruitment:

Recruitment is the process of searching for prospective employee and stimulating them to apply for jobs in the organization. Two source of recruitment:

(1) Internal Source :Internal source include personnel already on the pay roll of the organization whenever any vacancy arises somebody from within the organization may by locked into.

(2) External source:In that method employees are recruited from the outside the usually include new entrants to the labour force the use.

AEMEZ Industry fulfill the requirement of worker most of from the external sources. They give advertisement in newspaper and tan after they collect application and select by personal interview.

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Selection:Selection is the process of choosing best alternatives out of number of alternative.

Selection implies to select the person for right ob and at night time. First the applications of the candidates are sent to the concerned department which contained name, age, education qualification, experience etc.

In AEMEZ Industry there is scientific way for the selection. There is process of selection of person like, Interest Exam, personal interview, training etc.

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Training and Development

Training is an art of increasing the knowledge and skill of employee executive for doing particular of training is a process of learning a sequence of programmed behavior.

Training is the act of increasing the knowledge and skill of an employee for doing particular job.

In AEMEZ Industry training is given it two ways. They are as following

On the job training method.

Off the job training method.

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Promotion and Transfer Policy

Promotion:-

Promotion involves a change from one job to another that is better in terms of status one responsibility.

There are two bass on which promotion:

On the basis on seniority.

On the basis on merits.

AEMEZ Industry gives promotion on the bases of merit on seniority.

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Transfer Policy :Transfer is a process placing employee position where they are likely to be more effectively of where they are likely to get more job satisfaction. This transfer is a process of employees adjustment with the work time and place. In transfer there is change in responsibility designation and pay etc. AEMEZ Industry has only branch in Rajkot so for transfer the workers are sent to one sent department to another department.

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Performance Appraisal

Performance appraisal has been considered as a most significant indispensable tool for an organization, for the information it provides highly useful in making decisions regarding various personal aspects such as promotion and merit increases. Performance appraisal is also discussed as merit rating in which one individual is ranked better or increase in comparison to other.

In this firm, performance appraisal system is undertaken by work performance to appraise by result. An employee who performs well in terms of result is ranked first and accordingly other rank based on performance. They dont have any proof for this but they dont have proof for this but they declare in public.

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Industrial Relation

The concept of industrial relations has been extended to denote the relations of the state with employers, workers and their organizations. The subject, therefore, includes individual relations and joint consultation between employers and workers at their places of work; collective relations between employers and their organizations and trade unions; and the part played by the state in regulating these relations.

Moreover, in addition to their primary objective of bringing about good and healthy relations between employers and employees, industrial relations are designed: -

a)

To safeguard the interests of labour and of management by securing the highest level of mutual understanding and goodwill among all those sections in the industry which participate in the process of production. To avoid industrial conflict and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country.

b)

c)

To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequent absenteeism. To eliminate, as far as possible, strikes, lockouts by providing reasonable wages and improved living and working conditions and fringe benefits. To establish government control of such plants and units as are running at a loss or in which production has to be regulated in the public interest.

d)

e)

In AEMEZ Industry the relationships between the staff and management are very cordial and satisfactory. No industrial problem arises normally. Any matter requiring discussions is settled satisfactorily to all the parties.

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Grievance Handling System

Grievance can be defines as, A complaint of one or more workers in respect of wages, allowances, conditions of work and interpretation of service stipulations, covering such areas as overtime, leave, transfer, promotion, seniority, job assignment and termination of service.

In other words, Grievance is a type of discontent which must always be expressed. A grievance is usually more formal in character than a complaint. It can be valid or ridiculous, and must grow out of something connected with company operations or policy. It must involve an interpretation or application of the provisions of the labour contract.

Grievances exist in the minds of individuals, are produce and dissipated by situations, are fostered or healed by group pressures, are adjusted or made worse by supervisors and are nourished or dissolved by the climate in the organization which is affected by all the above factors and by the management.

Grievances generally give rise to unhappiness, frustration, discontent, indifferences to work, poor morale and they ultimately lead to the inefficiency of the workers and low productivity. A personnel administrator should, therefore, see to it that grievances are redressed at the earliest possible moment, failing which the whole management of the organization may tumble down. He must know and understand the causes which lie behind the grievances, and how these may be set right. He should assist the foreman and supervisor and other members of the line staff to ensure that grievances are properly handled by them.

In AEMEZ Industry there are complain box, so workers can give their complain and they can get satisfaction.

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Employee Benefit and Services

Employee Benefit:-

(1) Employees security related benefit

Health Insurance Accident insurance Pensions Contribution to saving plans, health and welfare funds.

(2) Rest period

(3) Holidays

(4) Vacation

(5) Sick Leave

(6) Leave of absence

(7) Bonus

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Employee Services: Medical services Housing services Child care facilities Loan services Canteen services

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Personnel Records

A record is a piece of writing or a chart which provides ready information and which preserves evidence for future reference or use.

The importance of records and reports for the management of an organization cannot be over-emphasized, for they enable it to get information with a view to taking timely decisions on issues pertaining to the different aspects of personnel management. They are needed: -

(1)

To supply the information required by government agencies on the rate of accidents, on large-scale absenteeism or turnover, or on wage rates occurring or prevailing in an organization. To conduct research in the field of industrial relations. To enable personnel managers to prepare training and development programmes. To review and revise pay scales; and To keep and maintain up-to-date data on leave, transfers, promotions, dismissals, strikes, expenditure incurred on employee benefits and services, etc

(2) (3)

(4) (5)

In the absence of reliable records and reports, the management would not be able to function; in fact, it would be paralyzed, for it would not know where the organizations weakness lies and what precautions to take to set matters right.

In AEMEZ Industry the personnel record and data regarding the production breakdowns, as well as disruptions with reasons is maintained in computers. So, whenever required all the relevant information regarding staff, production, and further training requirements can be easily achieved.

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Index

Sr. No. 1. 2. 3. 4. 5. 6. 7. 8.

Particular Page No. Introduction Organization Structure Market segmentation Pricing Policy Channels of Distribution Advertising and Sales Promotion Market Research Competitors

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Introduction

Marketing may be defined as the process of exchange between seller and buyer. It involves a number of inter-related activities designed to plan, promote, distribute and price the parties in exchange transaction. Because, consumers (buyers) and producers (sellers).

In its broader sense, marketing is the creation and delivery of standards of living to the society and a total system of interacting the business activities designed to plan, price, promote and distribute want-satisfying products and services to present and potential customers.

Marketing management represents an important functional area of business management efforts for the flow of goods and services from the producers to the consumers. It looks after the marketing system of the enterprise.

Marketing management has to implement marketing strategies, programs and campaigns. It must evaluate the effectiveness of each part of marketing mix and introduce necessary modifications to remove discrepancies in the actual execution of plans, policies, strategies, procedures and programs.

Marketing management has to plan and develop the product on the basis of known consumer demand. It has to build up appropriate marketing plan or marketing-mix to fulfill the set-goals of the business. It has to formulate sound marketing policies and programs. It looks after their implementation and control. In essence, marketer is a manager of customer demand in a changing business world.

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Organization structure

Marketing Executive

Marketing Assistants

Field Staff

Sales Assistant

Correspondence clerk

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Market Segmentation

It is a sub-division of the market as based upon the modern marketing concept. It points out that there are several demand schedules. Each demand schedule represents a separate market consisting of a group of buyers with similar needs and characteristics of demand.

The market segmentation is done on the basis of age, sex, family size, income, education, occupation, social class, life styles, etc... Market segmentation as a product policy implies an extensive range of products, each of which is fitted for one segment or for one demand curve. The conscious search is made to separate buyers into a number of segments each varying in size, buying power and buyer behaviour.

AEMEZ Industry is producing industrial products so the company does not have any formal segmentation of market.

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Pricing Policy

Sr. No. 1. 2. 3. 4.

Particular In tubing forms roll Both side open One side sealed Bags Tailor made shape

Rate Per Kg. Rs. 100/Rs. 102/Rs. 105/Rs. 110/-

Remarks 2% C.D. 2% C.D. 2% C.D. 2% C.D

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Channel of Distribution

Distribution means to distribute, spread out or disseminate channel of distribution and routs of pathways through which goods and services flow from the place of consumption.

AEMEZ Industry has very wide network of communication with the customer and effective channel of distribution of its product, the company has appointed sales representative. These representatives go to the dealer and bring order to the particular marketing branch office. Then after the branch or zonal office send the order to Rajkot office from where goods are dispatched through the zonal office also stored same quota of goods with and them and it send directly to the party.

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Advertising and Sales Promotion

Advertising is massage design to promote a product service or idea by an identified sponsor

Advertising can be handed through following ways:

Television Internet Magazines Newspaper Local traders

AEMEZ Industry market is fixed. There is no need of advertising. It has potential market but now days they take the help of magazine for their products advertising. It spends about 0.2% to 0.3% of net profit on advertising.

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Market Research

Marketing research may be defines as the scientific and controlled process of gathering of non-routine marketing information helping management to solve marketing problems. Marketing research concentrates on the study of product planning and development, pricing policies, effectiveness of personal selling, advertising and sales promotion, distribution structure, marketing strategies, market competition, buyer behavior and attitudes in the market place.

AEMEZ Industry is one, which is ready to take challenges and try better combinations of new raw materials and accept latest techniques to produce more beautiful and durable tiles in different colors and shapes.

For market research the company does survey. They have agents appointed for specific areas related to this task. As per the demand, the new Varity is produced and all the varieties are added in the catalogue.

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Competitors

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Index

Sr. No. 1. 2. 3. 4. 5. 6.

Particular Page No. Introduction Organization Structure Source of Finance Trading Account Profit and loss Account Balance Sheet

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Introduction

Finance is the lifeblood of business. It is rightly termed as the science of money. We need finance for the production of goods and services as well as their distribution. The efficiency of production and marketing operations is directly influenced by the manner in which the finance function of the enterprise is performed by the financial personnel. Finance function assumes an important role in the business system and it should be given equal importance, as with production and marketing functions. Under the systems approach we have an integration and coordination of these three vital sub-systems of business going hand in hand and offering jointly ways and means to accomplish the common goals of the enterprise, viz., productivity and satisfaction.

Financial management involves the application of general management principles to particular finance operations. It is that part of management which is concerned mainly with raising funds in the most economic and suitable manner, using these funds as profitability as possible; planning future operations; and controlling current performances through financial accounting, cost a/c, budgeting, statistics and other means.

Financial management provides the best guide for future resource allocation by a firm. Financial management is important because it has an impact on all the activities of a firm. Financial management is concerned with those managerial decisions which result in the acquisition and financing of long term and short term assets of a firm.

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Organization Structure

Managing Director

Cash and Bank Officer

Assistant Account

Clerk

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Source of Finance

According to time there are two type of source of finance are following

Long Term Source:

Equity shares, debentures, preference shares, long term bank loan etc.

Short term source:

Advance from commercial bank, public deposits, trades credit etc.

AEMEZ industries produce finance by partner capital, term financial loan and private depositors.

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AEMEZ INDUSTRY TRADING ACCOUNT FOR THE YEAR ENDED ON 31-03-2010


Particular Sales Finished goods Second Quality goods Closing Stock 5,470,557 135,330 Rs. particular Rs 498,680 2,289,122 347,750 398,360 6,800 9,180 42,319 33,250 21,881 18,000

Opening Stock Purchase Manufacturing Expenses 5,605,887 Electricity Usage 857,930 Production Labour Machinery Repairing Exp. Freight Expenses Packing Material Factory Expenses Machinery Spare-parts Machinery Sizer Exp. Gross Profit 6,463,817

877,540 798,475 6,463,817

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AEMEZ INDUSTRY PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED ON 31-03-10
Particular Gross Profit Other Income Interest on Term Deposit Rs. particular 798,475 Administration & Selling Exp. Bank Commission 8,103 Motor Bike Petrol Expenses Accounting & Banking Expenses Selling Expenses Outward freight Expenses Telephone expenses Electric Expenses Miscellaneous expenses Printing & Stationary Expenses Sealing Machine Expenses Office Expenses Audit Fees Legal Fees Vatav-Kasar exp. Insurance Premium Delayed Payment Charges Bonus Expenses Preoperative Expenses Interest on Unsecured Loans Depreciation Interest to Partners Remuneration to Partners Net Profit 806,578 Rs.

210 36,990 39,000 39,000 20,100 7,110 3,989 2,368 510 5,940 24,700 5,500 10,721 4,447 8,667 1,067 41,300 1,530 253,149 47,958 76,273 272,093 150,000 7,105 806,578

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AEMEZ INDUSTRY BALANCE SHEET AS AT 31-03-2010


Liabilities Partners Capital Pravinbhai Gopaldas Denishkumar Gopaldas Ranjanben P. Gothi Bhavishaben D. Gothi Unsecured Loans Gopaldas Kalabhai Gothi Provisions C.S.T. A/c. Out Put VAT Additional VAT Payable Sundry Creditors G.T. India Nishan Marketing Darshit Impex Connell Bros. & Co. P. Ltd. Consumers Plastic Pvt. Ltd. Assets Fixed Assets Land Factory Shed Machinery 2,597,183 Weighing Scale Furniture Electric Fittings 367,675 Primary & Pre- operative Exp. Deposits & Advances 3,941 GEB Lodhika Telephone Deposit Cash on hand HDFC bank Rajkot Nagrik Bank State Bank of Saurashtra 161,355 Inventories Sundry Debtors Supreme Plastic Gaytri Enterprise Kaneriya Oil Industry Ashok Iron & Steel Pvt. Ltd. Rajan Enterprise Shyam Enterprise Shrey International Ultra Tubes Jamnagar Tin Factory Amar Polyfilms Pvt. Ltd. Vasu Chemicals Nextech Engineering Daulat Proteins Parashnath Foods Master Pack Ind. Gems Industries Ramaji Parbat Gin Mill Rs. Rs. 100,105 326,939 201,915 2,380 4,473 30,578

855,527 1,094,572 523,872 123,211

666,390

13,800

539 -180 3,582

8,400 1,000

9,400 4,281 724,510 2,732 19,319 857,930

25,326 1,260 19,885 99,474 15,410

11,354 157,740 60,074 25,988 124,452 57,477 113,689 25,731 3,255 12,878 27,138 29,840 22,343 28,266 19,451 12,116 100,000

831,792

3,130,154

3,130,154

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S.W.O.T. Analysis

SWOT analysis consist of a Strength Weakness Opportunities and threats of the company

Strength: Good reputation in the market Constant increase in the net profit.

Weakness: Marketing activity is limited Finance capacity is limited

Opportunities: Enter in the new market segment Demand is very high of the product, need more marketing and can expands the market. Threats: Globalization and liberalization may increase number of competitor. The company aims for the growth and development and also to the production of variety of shrink films. Want to increase the quality of the product as per customer demand. Wants to make more and more profit day by day.

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Future Plans

The future plans of AEMEZ Industry are the following:

The company aims for the growth and development and also to the production of variety of tiles. Want to increase the quality of the product as per customer demand. Wants to make more and more profit day by day.

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Conclusion

It was a very cordial visit to AEMEZ Industry for me. It was a very wonderful experience for me during my ten days of industrial training. The management as well as the staff members was very cordial and helpful to let me gain exposure of the company about processing product rate, opportunity, etc...

During my visit, management and staff, highly praised effort of my Christ college to enable students to get first hand view and information regarding an industrial training.

In the end, I thanked the management and staff members of AEMEZ Industry with good wishes for a brighter future.

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