INTRODUCTION

Parco is a well known brand in the field of commercial kitchen equipments

manufacturing and distribution in the south Indian region. Parco equipments and furnace was
established in the year 2008.It is a reputed firm in the field of steel equipment industry.
At first, the company was started in U.A.E. and the successful acceptance of its
product manufactured with good quality stainless steel brought them a widely accepted brand
in the Middle East region. When there is an increase in the demand for commercial kitchen
equipment in India, they extended new branch at Kinfra Small Industries Park Thalassery.
Now it is one of the largest manufacturers of commercial kitchen equipments, Modular
kitchen, refrigeration, bakery equipments in south India. Parco specializes in providing total
solutions- including consultancy, layout plans with complete technical details of F & B
equipments for commercial kitchen, bakeries, canteen and messes etc.
Parcos corporate policy is to provide best quality products prompt services and
timely execution of projects/delivery of products to customers at all times. Management and
work force is constantly engaged in upgrading new generation technological changes as per
the requirements of the times. Parco products are superior in technology and performance due
to this policy and strict quality control R&D practices in the manufacturing units.

SIGNIFICANCE OF THE STUDY:1

The major significance of this study is that, it provide an appropriate to get practical
experience in the fast changing, competitive business world. The academic curriculum
provides a basic knowledge about the theoretical aspect in the management of business. The
implications in the theory are compared with the actual situation in the light of this study and
an analysis can be made. The various functions of the firm with its advantage and
disadvantage could be studied intensively.

SCOPE OF THE STUDY:This report is concerned with sketching a fair picture of PARCO EQUIPMENTS &
FURNACE. It covers every aspect relating to history and growth of the firm, details of all
departments, xworking process and different factors concerned with it etc.

OBJECTIVES OF THE STUDY:-

1.
2.
3.
4.
5.
6.
7.
8.

To familiarize with the organization study

To collect profile of the company
To understand the organizational structure and the various functional departments.
To study about the management of the concern and over all working of the company.
To make analysis of organizational performance.
To study about machines and equipments are used in the company.
To know about various department performance.
To make out difference, find out problems, if any to put forward suggestions and
recommendations.

IMPORTANCE OF THE STUDY: The organization study helps to know about the overall performance of the
organization.
To understand the functions of various departments.
2

To enlarge the knowledge and skills needed to establish a private venture in the area.
To provide knowledge for modern office procedures and practice.
To understand the working of various office machines and equipments.
To know the delegation of authority.

LIMTATIONS OF STUDY: Since the project was of 18 days duration, an exhaustive study could not be
conducted
Busy schedule of the management and operative staff was another limitations
It was not possible to get an in depth knowledge each as every work in the
organization because of the tight schedule of the selected

METHOD OF DATA COLLECTION

Primary Data:The primary data have been collected through discussions with the concerned executives
of the company.

Secondary Data:Secondary data are those data, which are gathered for some other purpose and are
already available in the firms internal records and publications.

INDUSTRY PROFILE
A modern residential kitchen is typically equipped with a stove, a sink with hot and
cold running water, a refrigerator and kitchen cabinets arranged according to a modular
design. Many households have a microwave oven, a dishwasher and other electrical
appliances. The main function of a kitchen is cooking or preparing food but it may also be
used for dining and entertaining.
3

The evolution of kitchen is linked to the invention of the cooking range or stove and
the development of water infrastructure capable of supplying water to private homes. Until
the 18th century, food was cooked over an open fire technical advance in heating food in the
18th and 19th centuries, changed the architecture of the kitchen. Before the advantage of
modern pipes, water was brought from an outdoor source such as well, pumps or springs.
Early medieval European long houses had an open fire under the highest part point of the
building. The kitchen area was between the entrance and the fireplace. In place of chimney,
these early buildings had a hole in the roof through which some of the smoke could escape.
Besides cooking, the fire also served as a source of heat and light to the single-room building.
The kitchen remained largely unaffected by architectural advance throughout the Middle Age;
open fire remained the only method of heating food. European medieval kitchens were dark,
smoky, and sooty places, whence their name smoke kitchen. Beginning in the late middle
ages, kitchens in the Europe lost their home heating function even more and were
increasingly moved from the living area into a separate room. The living room was now
heated by tiled stoves, operated from the kitchen, which offered the huge advantage of not
filling the room with smoke. Freed from smoke and dirt,
Technological advances during industrialization brought major changes to the kitchen.
Iron stoves, which enclosed the fire completely and were more efficient, appeared. Early
models included the Franklin stove around 1740, which was a furnace stove intended for
heating, not for cooking. Benjamin Thompson in England designed his "Rumford stove"
around 1800. This stove was much more energy efficient than earlier stoves.
Poggenpohl led innovation in the kitchen area by presenting the "reform kitchen" in
1928 with interconnecting cabinets and functional interiors. The reform kitchen was a
forerunner to the later unit kitchen and fitted kitchen. Poggenpohl presented the form 1000,
the world's first unit kitchen, at the imm Cologne furniture fair in 1950. The idea of
standardized dimensions and layout developed for the Frankfurt kitchen took hold while
Poggenpohl began exporting to neighboring countries which for the first time required a
kitchen specifier known today as a kitchen designer. The equipment used remained a standard
for years to come: hot and cold water on tap and a kitchen sink and an electrical or gas stove
and oven.
2.2 Stainless steel home appliances:4

A trend began in the 1940s in the United States to equip the kitchen with electrified
small and large kitchen appliances such as blenders, toasters, and later also microwave ovens.
Following the end of World War II, massive demand in Europe for low-price, high-tech
consumer goods led to Western European kitchens being designed to accommodate new
appliances such as refrigerators and electric/gas cookers. Restaurant and canteen kitchens
found in hotels, hospitals, educational and work place facilities, army barracks, and similar
establishments are generally (in developed countries) subject to public health laws. They are
inspected periodically by public-health officials, and forced to close if they do not meet
hygienic requirements mandated by law. Canteen kitchens (and castle kitchens) were often
the places where new technology was used first. For instance, Benjamin Thompson's "energy
saving stove", an early-19th century fully closed iron stove using one fire to heat several pots,
was designed for large kitchens; another thirty years passed before they were adapted for
domestic use.
Today's western restaurant kitchens typically have tiled walls and floors and use
stainless steel for other surfaces (workbench, but also door and drawer fronts) because these
materials are durable and easy to clean. Professional kitchens are often equipped with gas
stoves, as these allow cooks to regulate the heat more quickly and more finely than electrical
stoves. Some special appliances are typical for professional kitchens, such as large installed
deep fryers, steamers, or a bain-marie. (As of 2004, steamers not to be confused with a
pressure cooker are beginning to find their way into domestic households, sometimes as a
combined appliance of oven and steamer.).The fast food and convenience food trends have
also changed the way restaurant kitchens operate. There's a trend for restaurants to only
"finish" delivered convenience food or even just re-heat completely prepared meals, maybe at
the utmost grilling, a hamburger, or a steak.

3.1 COMPANY PROFILE

PARCO Group was formed as a result of the vision of Mr.P.Abdul Rahman, Chairman
of the PARCO Group of Companies, Late Mr.P.Abdulla and Mr.P.Aboobacker, the Groups
Managing Directors. They realized the opportunities in the Hospitality and Retail industries
across the United Arab Emirates, Middle East and the Sub Continent and decided that the best
approach would be to consolidate all the companies under the umbrella of the PARCO Group.

Mr.P.Abdul Rahman, a versatile entrepreneur, founded Mina Jebel Ali Canteen &
Catering Services, the flagship of the PARCO Group of Companies. Over the last 33 years,
Mr.Abdul Rahman, along with his brothers, Mr.Abdulla and Mr.Aboobacker, built successful
and diverse business units with interests in Hospitality, Retail, Manufacturing, Real Estate &
Property Development, Steel Factory, Contracting, Jewellery, Healthcare, Commodities
Trading, General Trading, and Educational Institutions. These are supported by a large team
of dedicated professionals to develop and manage the various activities of the Group.
Since the inception of the first company of the group in 1977, it has become
synonymous with quality service and products, and has had significant success within the
UAE, the Middle East and India. With his commitment to customer satisfaction and high
quality control, these endeavors were a huge success. His novel ideas and vision led to the
establishment of PARCO group of companies which now owns more than 30 state of the art
Restaurants, Super and Hyper Market and General Trading Company in U.A.E and many
similar off shore ventures. It gives us great pleasure to introduce ourselves as a specialist
supplier of all kinds of Bakery & Kitchen Equipments.

3.2 PARCO EQUIPMENT:For more than three decades PARCO Group of companies in the United Arab
Emirates has established their supremacy in the production and distribution of most modern
and high quality product. PARCO REFRIGERATION & KITCHEN EQUIPMENT
FACTORY L.L.C was established in the year 1998 in United Arab Emirates under the
leadership of Mr.P.A.Rahman (Chairman, PARCO Group). It is a one-stop-shop for the
production, installation, supply & service of stainless steel kitchen equipments& refrigeration
equipment. It is a part of a large & multi-disciplined business organization with interests in a
gamut of operation stretching across the United Arab Emirates. Recently Mr.P.A.Rahman,
Chairman of PARCO group inspired by his patriotic commitment has extended service to
India and started PARCO INDIA a new endeavor in the industrial realm of India.
PARCO is a well-known brand in the field of commercial kitchen equipment
manufacturing and distribution. Their mission is to understand and fulfill customers
requirements by providing them a value product with good quality in service. The successful
acceptance of products manufactured with good quality stainless steel brought us a widely
6

accepted brand in the Market. Wide range of PARCO products has been evolved as result of
the lessons of the past. The most attention in the manufacturing process by our competent
working force has always helped them to maintain exceptional quality standard.

COMPANY DETAILS

Name of the Firm

PARCO EQUIPMENT & FURNACE

Address

Kinfra small industries park,

Eranholi, Thalassery, kannur (DT)
Kerala-670107, India.
7

Started at

2008

Phone

0490-2354337, 2354338

Fax

0490-2354339

E-mail

infoatparcoindia@gmail.com

Website

www.parcoequipments.com

Chairman

P.A. Rahman

Managing Director

Riyas P.P

No. of employees

48

Nature of business

Manufacturing of kitchen
Equipments & Bakery Equipments.

THE PROMOTERS
Mr.P.A.Rahman and his brothers are the promoters of this firm. Mr.P.A.Rahman is
Chairman of the firm. Mr.Riyas P.P is the Managing Director of the firm.

INFRASTRUCTURAL FACILITIES:1. Land:-The land occupied by the PARCO is 1.8 acres.

8

2. Location:-The firm is located at Kinfra small industries park, Thalassery.

3. Transportation:-The unit is just .5km away from the main road and it is only 5 km away
from Railway station.
4. Communication systems:-There is a good communication system is exists in the
organization. All activities of the office and administration section is linked through Intercom, LAN, Internet, Fax etc

VISION:We want to be one among those who are providing quality products at affordable
price.

MISSION:To understand and fulfill customers requirements by providing them a value product
with good quality in service.

AIM:Unlimited ideas in kitchen equipment.

SOCIAL COMMITMENTS:1. We are aware and conscious in the process of wealth creation.
2. We focused on employment generation and providing training to unskilled work force
in technical and supervisory cadres to them employable.

3.3 ORGANISATIONAL STRUCTURE

CHAIRMAN
MANGING DIRECTOR

PRODUCTION
MANAGER
QUALITY
CONTROLER

FOREMAN

FINANCE
MANAGER

MARKETING
MANAGER

ACCOUNTANT

MARKETING
EXECUTIVES

STORE
KEEPER

PRODUCTIONS
UPERVISOR

WORKERS

10

HR MANAGER

SECURITY

MAINTENANCE
PURCHASE
MANAGER
MANAGER

HOUSE
KEEPING

PRODUCT PROFILE
The different types of products are:-

Cooking equipments:

Four burner gas range with oven: ideal equipment for cooking multi cuisine with 2HP and
2LP quality burners. Fabricated with stainless steel top side cover and panel in sturdy
frame work.

Electric range: efficient equipment with heavy duty hot plates. Each of 2.5KW offered with
nos of hot plates with/without oven underneath.

Double burner Indian gas range: convenient low height suitable not only for bulk cooking
but also for frying/panning and sauting.

Chinese range: perfectly designed for authentic delicacies.

Steam jacketed vessels: an equipment that accelerate cooking speed with low energy cost,
high performance and without burning or scorching, most hygienically.

Idli steamer: legend designed to make instant steaming idles. Ideal for fast food restaurant
and industrial unit.

Sandwich griller: Elegantly designed that grills and steaks.

Multi cooking station: convenient low height cooking platform for

11

bulk cooking.

Four burner gas range with

oven

Electric range

12

 Work table:High utility product ensures hygienic cutting chopping, sorting and general purpose usage.

Pick up counters:Most modern way to keep food steaming hot . Ideal for industrial canteens . Complete stainless
steel, with choice of varied capacities gastro norm and customized containers.

Dish washer:

Clean dish table with below rack

Two sink unit

Pot rack

Clean dish table

Soil dish landing dish

Ovens:

Pizza oven

Refrigerator:

Under counter refrigerator

Double door refrigerator

Food processing:o Dough kneading machine

13

o Potato peller
o Vegetable processor
o Mixer

DEPARTMENTS
o PRODUCTION DEPARTMENT
o PURCHASE DEPARTMENT
o HUMAN RESOURCE DEPARTMENT
o MARKETING DEPARTMENT
o FINANCE DEPARTMENT
o MAINTENANCE DEPARTMENT

14

INTRODUCTION
The production department is the functional area and is responsible for turning inputs into
finished outputs through a series of production processes. The production processes are the
various stages of production that turn raw materials into finished goods. Although businesses
such as bank, insurance companies and internet service providers do not supply physical goods
that can be seen or held, they do have to organize their resource to meet customers demand.
The main role of production is to turn inputs (raw materials) into outputs (finished goods).
Outputs refer to a finished product or service and inputs are the materials that are needed to
manufacture certain goods. When a business completes this process they are able to achieve
customers satisfaction by producing products that are ready to be used and fit for purpose.
The production department is responsible for ensuring quality is achieved in each item
produced. They will need to carryout inspections and implement suitable quality initiatives.
This is one of the major duties of this department because if mistakes are made on products,
customer satisfaction will be decreased or if products are ruined during the production process
it means that the company will have to throw bad products away (creating waste). Both
aspects will lead the company to a loss of profit. Quality assurance will have to be carried out
every day on a number of occasions to ensure that the production process is working
efficiently and effectively. For example Coca-cola will carryout approximately 200 inspections
per day to ensure quality is being achieved and also to make sure all equipment is running
well.

Functions of Production Department;

15

To locate, evaluate and develop sources of a material, suppliers are service that
company needs.

To ensure good working relation with their sourse in matter like quality, delivery,
payment and exchange on return.

To seek out new material and put new sources of better product and materials, so that
they can be evaluate for possible use by the company.

The purchase wisely the items that the company used the best prices consistent with
quality requirements and to handle the necessary negotiation to carry out this activity.

To initiate, if necessary, wed to co-operate in cost reduction program value, makes or

buy studies, market analysis and long range planning.

To work to maintain an effective communication linkage between departments within

and its suppliers or potential suppliers.

To keep top management too aware of costs involved in the companys procurement
affect the companys profit or growth potential.

Activities of production department;

The entire responsibility of the production department rest with production manager as such
overall production activities are performed in production department under the control of
production manager.

Production planning;
The term prepares annual statement of production planning based on market demand and
special orders. Production planning separately mention monthly, weekly and daily budget
target. Thus it is based on production planning that the firm carry out its daily performance
report and other performance report and so on
16

5.1 INTRODUCTION
Production is the most important function of every organization. . Production is the
process by which, raw materials and other inputs are converted into finished products.
Improved production technology, efficient utilization of material and cost efficient are the
important factors, which determined the long-term success of an organization. In Parco, the
Factory manager and Technical advisor are the head of the Production department. The
production department takes all decision about the production. It needs no exaggeration to say
that production makes significant contribution to the societys well being. The standard of
living of people depends on production of goods and services.

5.2 Functions of Production Department:1. To locate, evaluate and develop sources of a material, suppliers are service that
company needs.
2. To ensure good working relation with their source in matter like quality,
delivery, payment and exchange on return.
3. To seek out new material and put new sources of better product and materials ,
so that they can be evaluated for possible use by the company.
4. The purchase wisely the items that the company used the best prices consistent
with quality requirements and to handle the necessary negotiation to carry out
this activity.

17

5. To initiate, if necessary, wed to co-operate in cost reduction program value,

makes or buy studies, market analysis and long range planning.
6. To work to maintain an effective communication linkage between departments
within and its suppliers or potential suppliers.
7. To keep top management too aware of costs involved in the companys
procurement affect the companys profit or growth potential

Activities of production department:The entire responsibility of the production department rest with production manager as
such overall production activities are performed in production department under the control of
production manager.

Production planning:The term prepares annual statement of production planning based on market demand and
special orders. Production planning separately mention monthly, weekly, and daily budget
target. Thus it is based on production planning that the firm carry out its daily performance
report and other performance report and so on.

Resource planning:Resource planning depends on production planning. It is only after production planning
there the resource planning can be done. Purchase officer related to the amount and time does
the function of planning.

Production:Based on customer specification and approval production is made and also ascertain to
know whether production is confirming to customer order and specification. It also helps us to
know whether production meets the standard norms and quality standards set up in each stage
of production. It also helps to prepare a proper reconciliation of the consumption of material
with cost sheet and variations of any.

18

Production planning department:Production planning department is working under the planning engineer who is
reporting to the production engineer. This department is responsible for the entire production
planning in consultation with the various departments.
Proper communication with all departments is necessity for the success of production.
This is mainly done because every activity in the plant is in some way of other way related to
this department. This department plans monthly as well as daily production and monitoring the
same.

5.3 Production department structure:Organization structure is the pattern of relationship among various activities and
positions. Since these positions are held by various persons, the structure is the relationship
among people in the organization.
Here Parco Equipments and Furnace is proposed to be set up in the private sector and
hence will be controlled by the firm. However the unit will be delegated adequate autonomy
and authority. As such the General Manager of the unit will look after the finance,
administrative and other aspect of the company. A technologist will be in overall charge if
production and quality control. To supervise production, there will be production supervisors,
Peon/watchman. The labour force consists of skilled, semi-skilled workers.

19

5.4 PRODUCTION PROCESS

SHEARING

MARKING

BENDING
ASSEMBLIN
G
WELDING

BUFFING

20

Production process:In parco products are produced according to the order of the customers. Here the products
are produced by selecting the pre-designed model of the product by the customers. The major
raw material used for manufacturing is stain less steel sheet, pipes, etc. there two types of stain
less steel according to their quality stain less steel 202 and 304.
The production process in PARCO Equipments and furnace involves the following
process.

1. Marking:It is the first and foremost process. In this process marking on the steel sheet are done
according to the desired length and breadth.

2. Shearing:In this process a metal working process is done which cuts stock without formation of
chips or the use of burning or melting.

3. Bending:It is the process by which deformed by plastically deforming the material and changing
its shape. Bending helps to make the steel heet more soften. It is the flexible process by which
many different shapes can be produced.

4. Assembling:21

It is the important process. In this process the joining of components or piece parts
such as stain less steel sheets and beneded sheets or pieces are joined to produce a single
component that has a specific function.

5. Welding:In welding process two pieces of material are joined into a single piece by fusion due
to heat or combination of heat and pressure with the help of a welding machine.

6. Buffing:Buffing is he another most important process and also the final process. In this process
Polishing and buffing are finishing process for smoothing a work pieces surface using an
abrasive and a work wheel.

LIST OF MACHINES:

Shearing machine
Bending machine
Driller
Welding machine
Buffing machine

COMMON MACHINES:1. Air compressor.

2. Generator.
3. Hydraulic lift

22

5.5 PURCHASE DEPARTMENT

INTODUCTION:Purchasing is a major function in every organization, purchasing manager controls the
purchasing of raw materials. They purchase the raw materials from Mumbai, Bangalore,
In its narrow sense, the term purchasing refers merely to the act of buying an item at a
price. A border meaning of purchasing makes it a managerial, activity which goes beyond the
simple act of buying and includes the planning and policy activities covering a wide range of
related and complementary activities. Include in such activities are the research and
development strategies required for the proper selection of materials and sources from which
those materials may be bought, the follow-up to insure proper delivery, the development of
procedures methods and forms to enable the purchasing department to carry out the established
policies; the co-ordination of the activities of the purchasing department with such other
internal divisions of the concern as traffic, receiving, store-keeping, and accounting, so as to
facilitate smooth operations and the development of a technique of effective communication
with the top management of the company so that , a true picture of the performance of the
purchasing function is presented.
The buyers or purchasing officers are the people responsible for discharging
purchasing function. They are the full time staff of the company. The head of the section or the
department is the purchasing agent, also variously known as the purchasing officer, purchasing

23

manager or simply buyer. The department where all the purchases operate is called the
purchasing department.
In Parco, the Factory manager and Technical advisor are the head of the Production
department. The supervisors do the quality checking. Mainly there are three types of materials
are purchasing for production process. They are:

Stainless steel

(Sheet, Pipes, Nuts, Bolts)

Refrigeration items

Casting items

Accessories

5.6 Objectives of purchasing:The purchasing objective is sometimes understood as buying materials of the right
quality, in the right quantity, at the right time, at the right price and from the right source. This
is a broad generalization, indicating the scope of the purchasing function, which involves
policy decisions and analysis of various alternative possibilities prior to the act of purchase.
The specific objectives of purchasing are:
1. To pay reasonably low price for the best values obtainable, negotiating and
executing all company commitments.
2. To keep inventories as low as is consistent with maintaining good relations
with them.
3. To develop satisfactory source of supply and maintain good relation with
them.

24

4. To secure good vendor performance including prompt deliveries and

acceptable quality.
5. To locate new materials or products as required.
6. To develop good procedures, together with adequate controls and
purchasing policy.
7. To implement such programmes as value analysis, cost analysis, and makeor-buy to reduce cost of purchase.
8. To secure high caliber personnel and allow each to develop to his maximum
ability.
9. To maintain as economical a department as is possible, commensurate with
good performance.
10. To keep the top management informed of material development which
could affect company profit or performance
11. To achieve a high degree of co-operation and co-operation with other
departments in the organization.

5.7 Functions of purchase department: Maintaining a minimum stock of items required by various departments.
Obtaining prices.
Selecting vendors.
Awarding purchase orders.
Following up on delivery promises.
Adjusting and setting complaints.
25

 Selecting and training of purchasing personal.

Vendor relation.

4.8 Purchasing cycle:

Recognition of need.

Description of need.

A suitable source is selected for the supply. Often a source has to be developed.

Price and availability are determined.

Purchase order is obtained and sent out to the supplier.

Acceptance of the purchase order is obtained from the supplier.

Follow up is done by the purchasing department to ensure timely delivery of the

material.

Checking the invoice and approving it for making payment to the supplier.

4.9 Purchasing method:In Parco, the raw materials are purchased on the basis of credit & cash.
Following are the some of the steps followed at purchasing.

Material requirements from stores

Sending the orders details in the purchase requisition form

Quotation from the suppliers

26

Affordable will be accepted

Collecting raw material within two weeks.

Checking quality of material when received.

Storing the raw materials at different stores.

4.10 Purchase section deals with: Purchases of stock items are revealed by inventory report.
The planning and planned section requires purchase of maintenance items.
Purchase of raw materials required for the process.
Purchase of bulk consumable for the process.
Follow ups of demand items.
Payment against delivery through bank.

Stores section:Inventory control: It is affected to avoid surplus and scarcity of materials. The inventories
item are classified based on value contributed by each items depending on the cost of and
turnover of materials.

27

5.11 Objective of inventory control:

Avoid unwanted pilling up of inventory

Material codification to avoid duplication

To maintain records

To dispose scraped items

To determine which and how much to replenish

To determine the items to be stored

Stores section deals with: Maintaining a minimum stock of items required by various departments
Issuing of stock of items required by various departments according to the
Materials Request

Preparation of various reports like:

Receiving report

Inventory control

Inspection report

Evaluation of MPR for purchase of new items

Inventory control section:28

Inventory control is an essential function of store department. It helps to reduce cost and
increase profit of organization .certain levels of inventory such as maximum, minimum and reorder level is prepared. When the stock reaches the re-order level, purchase request is made.

5.12 Inventory control technique used at Parco:ABC analysis:It is based on consumption. Here the inventory is divided into three categories. A, B, and C
based on the value of stocks. Among the various items in the store 10% cover 70% of total
cost, these stocks are included in A category. Another 20% of stock covers 20% of total cost
and falls in category B. the remaining 70% of material in the stores are contribute 10% of total
cost of material and are included in the C category. Different controlling techniques are
applied for each category.

5.13 Functions of inventory control:Maintaining a minimum stock of item required by various departments . Preparation of
various reports regarding inventory.
Receiving reports
Inventory ledger
Inspection report
Evaluation of MPR
Fix various levels such as minimum level, maximum level, re-order level, danger
level etc., of each items
Calculate and minimize lead time

29

5.14 STEPS IN FACILITY LOCATION STUDY

In most cases, a location analysis should begin with a preliminary survey of the
factor indicated above to determine whether or not a new facility sight may be justified. If the
survey indicates that it is not justified then the study simply ends. If the survey indicates that
the new site may be desirable, a detailed analysis that the new site may be desirable, a detailed
analysis that evaluates all possible alternatives should be undertaken.
The analysis usually recognizes the following distinct stages
Stage 1 : Area selection
Stage 2 : Community selection
Stage 3 : Site selection

Stage 1 : Area selection

This initial planning stage involves management in selecting the region or
general area in which the plant or facility should be located. The important factors that
influence this decision are:
30

1. Location of markets
Locating plants and facilities near the market for a particular product or service
is of primary importance in the location decision. The manufacturing process may
increase the bulk or weight of the product. It will make the product more delicate and
make it susceptible to spoilage. Additional transportation costs increases transit time,
which decreases deliveries. It will affect the promptness of service. When the selling
price of the product is inexpensive and transportation costs add substantially to the
price a location near to the market is advantageous. In the case of a custom made
product close customer contact is essential. In the case of assembly type industries, in
which raw material are gathered together from various diverse locations and are
assembled into a single unit, tend to locate near the intended market.

2. Location of materials
Accesses to suppliers of raw materials, parts, suppliers, tools, equipments, etc.
are considered important factors for selecting the location of the plant. The main issue
here is the promptness and regularity of supply from suppliers and the level of freight
costs incurred. In general the location of materials is likely to be important if;
a. Transportation of materials and parts represent the major portion of unit costs.
b. Material is available only in a particular region.
c. Material is bulky in the raw state.
d. Material can be reduced in various products and by products during processing.
e. Material is perishable and processing decrease the perishability.
Materials may come from a variety of location; the plant would then be located
to minimize total transportation costs. It is to be noted that transportation costs are not
simply a function of distance they vary depending on: specific routes, specific product
classification.

3. Transportation facilities
31

Adequate transportation facilities are essential for the economic operation of a

production system. The regions should be well connected with road, rail, waterways
and airports. The bulk of all freight shipments are made by rail since it offers flexibility
and speed. Companies that produce or buy heavy and bulky low-value-per-ton
commodities are generally involved in import and export activities: water
transportation is of prime importance in the plant location. Truck transport for intercity
transport is increasing as is airfreight and executive travel. Travelling expenses of
management and sales personnel should also be considered in the equation

4. Labour supply
It is one of the most important inputs in an industrial enterprise. The type and
supply of labour available in the vicinity of a proposed plant site must be examined.
Consideration should be given to prevailing pay scales, restrictions on number of hours
worked per week, competing industries that can cause dissatisfaction or high turnover
rates among the workers, and variation in the skill and productivity of the workers. The
study should consider the following aspects.

1) Ample supply
Manpower is the most costly input in most production system. A sufficient
supply labour is essential to any enterprise. The following rule of thumb is
generally applied,
a. The area should contain four times as many permanent jobs applicants then
will be required.
b. There should be a diversification between industry and commerce
roughly 50/50.

2) Type of skill
32

The type and level of skill possessed by workers must also be considered. If the
required is not available then training costs may be high priced and the resulting
level of productivity will be inadequate.

3) Regional wage differential

Regional wage differentials (north-south divide) can also be important
particularly in those cases in which labour costs represent the bulk of the total
production costs.
In short, the following points are to be considered while thinking about labour
supply.
a. Skills available
b. Size of the labour force.
c. Productivity levels
d. Unionization
e. Prevailing labour management attitudes
f. History of labour relations
g. Turnover rates absenteeism, etc

4) Location of other plants and warehouse

Business organizations always try to place new plans where they will
compliment sister plants warehouses in order to minimize total system costs. The
locations of competitors plant and warehouses must also be considered. The
object is to obtain an advantage in both freight costs and the level of customer
service.

33

Stage 2 : Community Selection

The community selection visibly depends on the region already chosen. The
community selection is subjective since the selection factors cannot be quantified.

1. Managerial preference
The location selection is heavily influenced by the preferences of the managers
and executives who will likely to be transferred to that selection.

2. Community facilities
The character and facilities of a community can influence on the location of the
plant. If a certain minimum number of facilities for satisfactory living for employees
are not available, it often becomes a burden for the company to provide such facilities.
Cultural facilities of the community are important to sound growth. Churches, libraries,
schools, civil theatres, concert associations, and other similar groups, if active and
dynamic, do much to make a community progressive. The problem of recreation
deserves special consideration.
The efficiency, character, and history of both state and local government should
also be evaluated. The existence of loss is not in itself a favourable situation unless the
community is already well developed and relatively free of debt. In other words the
community facilities involve such factors as quality if life. This in turn is affected
by the following factors.
a. Cultural, social and recreational opportunities
b. Housing, streets and highways
c. Medical services range, frequency and reliability of transport
d. Police and fire protection
34

3. Community attitudes
It is difficult to evaluate the attitude of community towards the location of
plant. Most communities would welcome new and increased business opportunities
provided if the industry is not of an offensive nature (nuclear dumping). The formation
of anti-industrial pressure groups or a lack of co-operation, interest and enthusiasm on
the part of the community can result in pure public relations between the relocating
firm, local government offices, labour and the general public.

4. Community, government and taxation

Honest, stable and co-operation government officials are important asset, as
most of the local legislation affecting industry is under the control. Building codes,
pollution control planning permission etc. Tax rates should be made for an increase in
local taxes if local services improve.

5. Financial inducements
Local and state governments offer financial inducement to companies to
locating specific areas. Various other bodies can also offer monitory grants to locate
specific industries in specific locations. All inducements are of a temporary nature and
should not under estimate the basic merits of a particular location.

6. Profile of present industry

The kind and quality of industrial plans already in the proposed community are
relevant factors.

35

Stage 3 : Site selection

Site selection is the final stage in the plant location analysis in which following
factors should be considered:

1. Size of site size

The plot of land must be large enough to hold the proposed plant and must
provide sufficient space for further expansion. Parking and access facilities must also
be included.

2. Topography
The topography, soil mixture and drainage must be suited to the type of
building required and must be capable of providing it with a proper foundation. Land
improvement and concrete rafts to provide the required foundations always prove
expensive. In this instances low price land many not to be economical.

3. Utilities
Costs associate with the volume and reliability of power, water and fuel
supplies must be evaluated carefully. These costs are considerable and constantly
recurring problems associated with the supply of utilities are:
a. Possible restrictions on power availability.
b. Cost differentials at peak periods.
c. Availability of water supply during a hot summer.
d. Quality of water-hard or soft, etc.

36

e. Connection cost of services from main supply lines to the intended

plant.

4. Waste disposal
In this special attention should be given to answer the following questions.
i.

What waste will the plant produce and how will it be disposed off?

ii.

Will the plant be situated in a smoke-free zone?

iii.

Can water and oil be discharged directly or must it be transported from

the plant?

iv.

What local agencies are available to provide solutions?

5. Transportation facilities
Rail and networks should be near to the proposed plant to minimize the cost of
spur lines and access roads. Some indication can be gained by looking at the present
road and rail accessible by car and public transport. Intangible factors to be considered
include the reputation of the available carriers, the frequency of service, and freight and
terminal facilities. Cost and time required transporting the finished product to market,
and the time required to contact or service a customer must also be considered.

6. Land costs
These are non-recurring costs and of little importance in the determination of
the facility location. In general the plant site will be one of the following locations.
a. City
b. Sub-Urban

37

c. Country

7. Transport equipments
Transport equipment is used to move material from one location to another
(e.g.: between work places, between a loading dock and a storage area, etc.) within a
facility or at a site. The major subcategories of transport equipment are:
a) Conveyors: these are the equipments used to move materials over a
fixed path between specific points.
b) Cranes: equipment, which is used to move materials over variable paths
with in a restricted area.
c) Industrial trucks: equipments used to move materials over variable
paths, with no restrictions on the area covered by the movement (i.e.
unrestricted area).

38

DATA ANALYSIS AND

INTERPRETATION

TABLE 1
AVERAGE REVENUE (DAILY)
Average Revenue

No of respondents

Percentage

Below 5000

12

24

5000-15000

15

30

15000-25000

16

Above 25000

15

30

39

Total

50

100
FIG 1

35
30

30

30

24

25
20
15
10
5
0

Below 5000

5000-15000

16
15000-25000

Above 25000

INTERPRETATION
Among 50 respondents 24% of the respondents have average revenue below 5000,
30% of have the average revenue in between 5000-15000, 16% of the respondents have the
average revenue in between 15000-25000 and the remaining 30% have the average revenue
above 25000
TABLE 2
MODE OF PURCHASE
Mode of purchase

No of respondents

Percentage

Cash

15

30

Credit

35

70

Total

50

100

40

*source: primary data

FIG 2

70
70
60
50
30

40
30
20
10
0

Cash

Credit

INTERPRETATION
Among 50 samples 30% of respondents made purchase in cash and remaining 70% of
them are made credit purchase.
TABLE 3
SATISFACTION TOWARDS PROMOTIONAL ACTIVITIES
Satisfaction towards satisfaction

No of respondents

Percentage

High

20

40

Moderate

18

36

Low

12

24

Total

50

100

41

FIG 3

24
40
High

Moderate

Low

36

INTERPRETATION
Among 50 respondents 40% are highly satisfied with the promotional activities of
MARYAN 36% of the respondents are moderately satisfied with promotional activities and
24% of them are less satisfied with the promotional activities of MARYAN
TABLE 4
SATISFACTION TOWARDS SALES PROMOTION
Satisfaction

No of respondents

Percentage

High satisfaction

15

30

Moderate satisfaction

26

52

Lower satisfaction

18

42

Total

50

100

FIG 4

52

60
50
30

40
30

18

20
10
0
High satisfaction

Moderate satisfaction Lower satisfaction

INTERPRETATION
Among 50 respondents 30% of them are highly satisfied, 52% of the respondents are
moderately satisfied and remaining 18% are less satisfied
TABLE 5
*PRODUCTS ORDERED BY THE CUSTOMER
Types of products

Percentage

Kiwi shorts

10

Ladies top

40

Coverall

17

Kafthan top

21

Others

12
FIG 5
43

21

Kiwi shorts

17 Ladies top

10

Coverall 40

Kafthan top

INTERPRETATION
Most ordered product is ladies top. From the opinion of the manager the most ordered
product is ladies top. They get more order for ladies top compare to other product.

44

TABLE6
*RESPONSE SHOWING SATISFACTION WITH THE QUALITY
Option
Highly satisfy
Satisfy
Neutral
Dissatisfy
Highly dissatisfy
Total

No of respondents
19
16
10
5
0
50

Percentage
38
32
20
10
0
100

FIG 6
Satisfaction with the quality supplied by the company

40
35
30
25
20
15
10
5
0
Highly satisfy

Satisfy

Neutral

Dissatisfy

Highly dissatisfy

INTERPRETATION
Out of 50, 38% are highly satisfied with the quality of the organization. 32% are
satisfied to the point, 20% are the neutral condition and only 10% are dissatisfied. There is no
respondent which is no highly dissatisfied to this condition.

45

TABLE 7
*table shows that respondent opinion about suitable media for advertisement.
Media

No of respondent

Percentage

Internet

32

80

Magazine

15

Poster

Total

40

100

FIG 7
80
80
70
60
50
40
30
15

20

10

2.8

0
Internet

Magazine

Poster

INTERPRETATION:

46

Category 4

From the above table it is clear that 80% of respondent opinion in that suitable media
for MARYAN garments is through internet, 15% opinion in that magazine and 5% is poster.
TABLE 8
*the reason for using Maryan products
Factors

Percentage

Quality

46

Price

Brand loyality

10

Availability

Durability

30

Total factor

100

FIG 8
50
45
40
35
30
25
20
15
10
5
0

46

30

Quality

Price

10

Brand loyality

INTERPRETATION

47

Availability

Durability

From the above table the researcher inferred that quality influenced 46%

of

respondent, price and availability influenced 7% of respondent, brand loyality influenced

10%, and durability influenced by 30% .

SWOT ANALYSIS
SWOT analysis is a systematic approach to find the strengths, weakness, opportunities
and threats pertaining to an organization and its environment. Through such an analysis he
strength and weakness existing within the organization can be matched with the opportunities
and threats operating in the environment so that an effects strategy can be formulated.
The strength, weakness, opportunities and threats of the company totally depended
upon the export policy of the government of India.
STRENGTH
The strength is an inherent capacity, which an organization uses to gain strategy
advantage over its competitors and markets.
The main strength of the firm is high quality management
Good service.
Good relationship between management and employees.
Sales outside the country.
Use quality materials.
WEAKNESS
Weakness is an inherent limitation or constraints, which create strategic disadvantage.
Not able to meet the market demand as production level is not enhanced.
48

 High cost of production.

No proper techniques to tackle labour absenteeism.

OPPORTUNITIES
An opportunity is favorable condition in the organization environment it enable it to
consolidate and strengthen its position. Then opportunities are
New market to be identified by utilizing global warming situation.
Introduce high quality and attractive variety products for the international market.
Economic development of the country may result in higher demands.
Market expansion and foreign market.
THREATS
Threats are unfavorable condition in the organization environment which create risk or
causes damages to the organization.
High price of raw materials.
Increasing competition in the market.
Shortage of materials.
Strikes of labour.

49

6-FINDINGS

The following are the major findings

1. Existing whole departments.
2. No trade union existing in the company.
3. Only direct marketing existing.
4. Company is in growth stage.
5. Parco as good export performance
6. New technology membrane cell has the advantages of being environment friendly
7. Safety precaution and employee welfare programs are attractable and useful
8. The capacity utilization should be increased every year
9. Pricing policy of the Parco is average
10. Quality is main objective of parco

7-SUGGESTIONS

50

Some of the suggestions are as follows,

1. Need more stores for raw material.
2. Adopt new material handling techniques for efficient production.
3. The firm has to provide canteen and more rest room facilities for workers.
4. Improve promotional activities like advertisement.
5. Appointing more marketing executives.
6. To start retail outlets.
7. Company needs to focus their attention on the distribution systems efficiency.
8. Parco must persuade the workers to use safety equipments.
9. Parco requires most modern plant and machinery to increase capacity.
10. New pricing strategies should be adopted.

8-CONCLUSION
Parco is always trying to produce quality products according to the needs of the
customers. Now they wish to produce supermarket trays according to the order. They mainly
concentrate on employment generation and training to those who are unskilled.

51

The organization study in Parco gave the deep knowledge about the company and we
are learned how theory is implemented in the firm. We conclude here our organization study in
a satisfactory manner.

9-BIBILOGRAPHY

Web:52

www.parcoequipments.com
www.Wikiepedia.com

Books:1. Production and Operations Management - K. Aswathappa and k.

Shridhara Bhatt
2. Human resource Management
3. Financial management
4. Marketing Management

53

- VSP.Rao
- IM.Pandey
- Philip Kotler