Project Report On
ORGANISATION STUDY OF HANNA SOFT DRINKS
Submitted in Partial Fulfillment Of The Requirements Of The Master of Business Administration to
BY Pradeep Kumar T Register no:092130379
Under the guidance Of Mrs. V.T. Shailashree (faculty , SIMS)
SRINIVAS INSTITUTE OF MANAGEMENT STUDIES, MANGALORE.
Mrs. V.T. Shailashree Lecturer of SIMS, SIMS.
CERTIFICATE This is certify that the project work entitled, ORGANISATIONAL STUDY
OF HANNA SOFT DRINKS WITH special ref erence erence to AL-MANHAL ENTERPRISES Kanhangad has been prepared by Pradeep Kumar T(Reg.no.092130379) under the guidance and supervision in partial
ulfillment of the requirement of the Master of Business Administration f ul rom SIMS. f rom
Place: Date:
Mrs. V.T. Shailashree Lecturer of SIMS, SIMS.
CERTIFICATE This is certify that the project work entitled, ORGANISATIONAL STUDY
OF HANNA SOFT DRINKS WITH special ref erence erence to AL-MANHAL ENTERPRISES Kanhangad has been prepared by Pradeep Kumar T(Reg.no.092130379) under the guidance and supervision in partial
ulfillment of the requirement of the Master of Business Administration f ul rom SIMS. f rom
Place: Date:
CERTIFICATE
This is certify that Mr. Pradeep Kumar T, 3 rd semester MBA student of Srinivas Institute of Management Studies, Mangalore, affiliated to Mangalore University has undergone an summer internship program in our institution from July 3rd to July 23, 2010.
SECRETARY
Pradeep Kumar T (Reg.No:092130379) Srinivas Institute Of Management Studies.
DECLARATION I hereby declare that the project work entitled, ´A Study on Overall functions of HANNA SOFT DRINKS with special reference to AL-MANHAL ENTERPRISES Kanhangadµ is a bonafide record of my summer internship project work for acquiring MBA degree and no part of I has been submitted by me for any degree or reorganization before.
Place
:
Date
:
Forwarded :
Pradeep Kumar T
ACKNOWLEDGEMENT In my endeavor to write this summer internship report ORGANISARION STUDY OF HANNA sof t drinks with special ref erence to AL-MAN HAL ENTERPRISES KANHANGAD. I have been f ortunate enough to receive whole hearted support and inspiration f rom many persons. I am gratef ul to our principal Mr. P.S.AITHAL sir, leading light of our institution.
I
am
also
indebted
to
my
internal
guide
Mrs.V.T.SHAILASHREE, lecturer, MBA department, who has provided me all sorts of advice, support and encouragement to complete this project
work successf ully. I would like to extend hearty thanks to Mr. Bahodoor Muhammed Kunhi
K.M. and Mr. Ashif f or providing me an opportunity to do my summer internship project work in their esteemed organization.
Finally I would like to express my hearty thanks to all teachers, my parents and f riends and colleagues f or encouraging me and f or their timely help. Above all I am thankf ul to the almighty, GOD f or the successf ul accomplishment of this project work.
PRADEEP KUMAR T
PREFACE
HANNA is a famous soft drink industry in Kerala. HANNA plays an important role in the Consumer Market. HANNA soft drink is an important source of income and it is an employment opportunity for the rural people who are unemployed. AL-MANHAL ENTERPRISES was constructed on December
1998.
AL-MANHAL
ENTERPRISES
mainly
manufacture three products. They are soft drinks, aerated water and drinking water. HANNA formed and registered under the SSI Act 1951.
CONTENTS
CHAPTER 1
INTRODUTION
INTRODUTION In the recent years soft drinks production have become more popular among different cross section of population due to increased demand for convenience product. Among the soft drinks, particularly cool drinks are the cheapest, processed and ready to drinking products. Irrespective of the language, cultures, countries and state people all over the world are using colorings. Even though this industry is on the profit, in recent years the industry faces many challenges such as non-availability of resources, strong, protest and legal banning due to environmental problem and health problem created by production and consumption of soft drinks. The industrial members have to overcome this problem for their success and survival.
INDUSTRIAL PROFILE Sof t drinks can be tracing their history back to the mineral water f ound in natural springs. Bathing in natural springs has long been considered a healthy think to do, and mineral water was said to have curative powers. Scient ists soon discovered that gas carbonium or carbon dioxide was behind t he bubbles in n atural mineral water. th
The first marketed sof t drinks (non-carbonated) appeared in the 17 century. There were made f rom water lemon juice sweetened with honey. In 1676, t he
campaigned De-Lemonadiers of Paris was granted a monopoly f or the sale of lemonade sof t drinks. Enders would carry tanks of lemonade on their backs dispensed cups of the sof t drinks to thirsty Parisians.
In 1767, an Englishmen, Mr. Jo seph Priestly, created the first drinkable man made glass of carbonated water. Three years later, the Swedish chemist Torbern Bergman invented a generating apparatus that made carbonated water f rom c halk by the use of sulphuric acid. In 1810, t he first US patent was issued f or the means of the mass manufacture of imitation mineral waters to Simons and Rendell o f Charston, South
Carolina. Carbonated beverages did not achieve great popularity in America until 1832, when John Mathews invented his apparatus f or making carbonated water. John Mathews mass manufactured his apparatus f or sale to others. The drinking of either natural or artificial mineral water was considered a healthy practice. American Pharmacists, who were selling most of the mineral
waters, started to add medicine and other f lavorf ul herbs to the unf lavored beverage: e.g., brinch bank, dandelion, sarsaparilla and f ruit extracts. The early dug stores with their soda f ountain become a popular part of American culture.
Customers want to take t he dr inks home with them and t he sof t bottling grew f rom the customers demand.
CHAPTER 2
ABOUT THE PROJECT
INTRODUCTION The study was conducted in HANNA SOFT DRINKS, Kanhangad
gives a fair idea about strategies implemented by the company f or its products. The study can be taken as a basis in case of similar studies by other ventures in this field.
OBJECTIVES OF THHE STUDY To study profile of the company. To study the perf ormance of product ion department. To study the financial status of the organization. To study the perf ormance of various departments like finance,
marketing, human resource, etc.
SCOPE OF THE STUDY The study was conducted in HANNA SOFT DRINKS, Kanhangad, the study gives a fair idea about strategic implemented by the company f or its
products. The study can be taken as a basis of similar studies by other ventures in this field.
METHODOLOGY PRIMARY SOURSES Some data is to be collected by conducting direct interview with staffs and rest of that f rom my experience in this concern.
SECONDARY DATA The main secondary sources which I used are, company records,
journals, magazines, newspapers, company manuscripts, etc.
LIMITATIONS Detailed study cannot be conducted due to t ime constraints.
Comparative study with other sof t drink companies could not be conducted due to the time constraints.
CHAPTER 3
ABOUT THE COMPANY 3.1(COMPANY PROFILE)
COMPANY PROFILE Name of the firm
:AL MAN HAL ENTERPRISES
Date of commencement
: 01-oct-2001
Brand name and Trade mark
: HANNA
Registered in
: FPO (Food Product Orgn.)
Promoter
: K.Muhammed Kunhi
Managing director
: Mr. Ashif
Location
: Kallomthol (parappally),
Kodom, Beloor Panchayath, Kanhangad, Kasaragod. Head office
: Bangalore
Numbers of officers
:8
Number of workers
: 17
Number of supervisor
:1
Nature of business
: manufacturing soft drink
pet soda and aerated water. Insurance
: United India Insurance Company
ORGANISATION CHART(Flow of Authority)
MANAGING DIRECTOR
PURCHASE AND PRODUCTION
MARKETING
HUMAN RESOURCE
MANAGER
MANAGER
FINANCE MANAGER
MANAGER
SUPERVISOR
DISTRIBUTION
AGENT
ACCOUNTANT
WORKERS
ABOUT THE COMPANY: AL MAN HAL ENTERPRISES is a famous sof t drink industry in Kerala. HANNA plays an important role in the customer market. HANNA sof t drinks are important sources of income and it is an employment opportunity f or the rural people who are unemployed. The st
firm was started on 1 October 2001 as a partnership w ith two partners, and then converted in to the sole trading concerns. The building was
constructed on 1998 December first week. AL AMN HAL ENTERPRISES mainly manufacturing t hree products, t hey are sof t drinks, pet soda, and aerated water. The company f ormed under SSI Act 1951 and registered in
FPO(Food Product Organization, Chennai ). AL MAN HAL the company name derived f rom the Arabic word, it means wide like ocean. The Product name HANNA is also f rom the Arabic word that means Divine food .
CAPITAL STRUCTURE /INITIAL INVESTMENT Mr. Muhammed Kunhi is the promoter of the company. The firm was starting w ith an initial investment of Rs one crore. The firm have got industrial subsidy Rs 6,00,000/- f rom the Government. Rs 60 lakh is the
contribution f rom the partner at 60:40 ratio. And rest of the amount is loan f rom KFC and Punjab National Bank.
PLANT LOCATION It is concerned with the function of determining where the plant should be located for maximum operating efficiency and effectiveness .
The firm is located in Kallanthol, Parappally: 6 Km away f rom
Kanhangad. This place is only 4 Km away f rom NH 17 in Mavungal junction. This site is selected because of the availability of the facilities like labour, market, transportation, water, waste disposal system, availability of power, etc.
OBJECTIVES OF THE FIRM Profit maximization through customer satisfaction. Reduced customer complaints. Utilization of modern machinery. Giving employment opportunity.
MISSION OF THE FIRM Providing healthy drink to the society. providing quality products at aff ordable price in on time. Always care on customer health. Providing employment opportunities to local people. Work f or social developments.
VISION OF THE FIRM Build f ully automated technology. Market expansion program all over in south India. New product development. Dominate the sof t drink industry.
SWOT ANALYSIS STRENGTHS: High demand in rural area. Consumer approach. Q uality products. Commission and discount scheme. Time supply. Location. Efficient workers.
WEAKNESS Law production capacity. Semi automated plant. Increase of production capacity. Market expansion
THREATS Competition f rom global sof t drink industry. Complementary schemes of competitors.
FUTURE PLAN OF THE FIRM Firm likes to enter toilet soap manufacturing industries. Company has idea f or start to make bottle cork, perf orm and laminated box with in
the firm. The management have been planning f or taking these steps.
PLANT EXPANSION PROGRAME Firm likes to expand its plant with f ully automated technology and also increase the production capacity. For that purpose, company took
land in f ront of the current plant location.
CHAPTER 3
ABOUT THE COMPANY 3.1(PRODUCT PROFILE)
INTRODUCTION Sof t drink industry is an one of the most competitive field business. We have well known about other brands like coca-cola, pepsi.co, etc. HANNA is an growing sof t drink company in south India. All products which produced by HANNA has shown growing profit curve. It simply means, all products which produced by HANNA is enables to keep consumer expectation.
PRODUCTS WHICH OFFERED BY HANNA are, The AL MAN HAL Enterprises mainly producing three products. They are;
1. SOFT DRINK y
LEMON FLAVOUR
y
ORANGE FLAVOUR
y
COLA
2. PET SODA 3. AERATED WATER.
CHAPTER 4
DEPARTMENTAL STUDY
DEPARTMENTAL STUDY
PURCHASE DEPARTMENT CHAPTER 4.1
INTRODUCTION purchasing is an art. A wrong purc hase increases the cost of materials. Theref ore the f unction purchasing should be e ff ectively and efficiently perf ormed. An efficient purchasing ensures the procurement of materials of the right quality, in the r ight quantity, at the right time, f rom the right sources and at a right place. The firm has no separate purchase department. Production
manager controls the purchase.
PURCHASE PROCESS All purchases are made f rom a selected suppliers based on their ability to supply and past perf ormance. All the purchases are made af ter assessing the availability of stock in the company. List of the selected suppliers are maintained by the purchase manager. List of the selected suppliers are maintained by the purchase manager. Purchase is also made f rom other than selected suppliers in the case of emergencies. Such
purchases are accepted af ter detail inspection. Suppliers are evaluated based on their ability to supply organizations requirements. Most of the raw m aterials are directly purchased f rom the m anufacturer and some of the items are purchased f rom agents.
PURCHASE PROCESS RECEIVING PURCHASE REQ UISITION.
INVITING Q UOTATIONS AND TENDERS.
SELECTING SUPPLIERS
PLACING PURCHASE ORDER
RECEIVING OF MATERIALS
INSPECTION OF MATERIALS
CHECKING INVOICE AND MAKING PAYMENT
PURCHASE ORDER SL.NO
ITEMS DESCRIPTION
QTY
DATE OF DELIVERY
MATERIALS FOR PRODUCTION
1
Sugar
Ba g
2
Citric acid
Kg
3
Carbon Hi f low
Kg
Essence
Kg
Food Preservative
Litter
Filter paper
number
4 5 6
BOTTLE MATERIALS 1
Pref orm
2
Caps(water, per soda)
3
Label(lemon, orange, cola, water,
GM no. µ
soda)
4
Empty bottle(green, white)
5
(2litter, 1litter, 500ml, 300ml)
µ
RAW MATERIALS DETAILS The quality of products mainly depends on the quality of raw
materials. Firm give extreme care while selecting the raw materials used or making used f or or making the products. Firm bas trusted suppliers f or or f or diff erent erent type raw materials.
RAW MATERIALS USING IN SOFT DRINKS Essence Citric acid Refined sugar Co2
low powder Hif low Carbon Filter paper Label Case box / Laminated paper
orm Perf orm
RAW MATERIALS USING IN PET SODA Water Co2
orm Perf orm Cork
Label Case box
RAW MATERIALS USING IN AERATED WATER Water
orm Pref orm Cork Label Case box
RAW MATERIALS IN BOTTLE
Preform
Bottle
Type
2 Litter
52 gm
500ml
26 gm
300ml
23 gm
Cork
Label
COST OF BOTTLE MATERIALS TYPE
PERFORM
LABEL PRICE
CORK PRICE
PRICE
2 liter& 1.5 ltr Rs 5 /piece
35 ps/piece
500 ml
Rs 3 /piece
25 ps/piece
300ml
Rs 2.60/piece
15 ps/piece
Soft drink and pet soda Aerated
65 ps /piece
35 ps/ piece
water
MATERIAL PURCHASING SYSTEM ollows a systematic material purchasing system. Material The firm f ollow stock is recorded in stock register.
ORDERING LEVEL Ordering of material on the basis of production. The raw material or 3 to 6 mont hs has long expiry date. So the firm store raw materials f or except sugar is only f or or week.
PAYMENT SYSTEM The firm using DD and cheque f or or clearing suppliers accounts.
SUPPLIERS CREDIT SYSTEM Suppliers are giving maximum of one month credit period.
SUPPLIERS OF RAW MATERIALS
NAME OD RAWMATERIALS
Citric acid, hi flow powder,
NAME OF SUPPLIERS
carbon
Mahaveer chemicals Bangalore
Essence
Das enterprise Bombay
Refined sugar
Tender Agent , Mangalore
Co2
Keerthi aerated products, Goa
Filter paper
Purchasing from Bombay
Cork & perform
Purchasing from Hyderabad & Bombay
Label
Swamy offset , Sivakasi
Laminated paper
Madras
CAPTER
4.2
PRODUCTION DEPARTMENT
INTRODUCTION Production is a process by which goods and services are created. It is considered to be crucial role in any industrial organization. In the production process raw materials are converted in to finished products. The production system receives input in the f orm of raw materials,
capital, utilities and inf ormation. These inputs are converted in to desired products and services. Workers, material and machineries are used f or converting inputs in to output s. A firm f ollows a clear and systematic production system. The production quantity varies as per the demand.
THE AL MAN HAL Enterprises produces three types of products the are;
Sof t drinks Pet soda
Aerated water
PRODUCTION PROCESS MOTOR M
CARBON FILTER
O BORWELL
TANK
CO2
CARTRIDGE FILTER
SUB
T
TANK
O R
MICRON FILTER
SAND
ULTRA
FILTER
VIOLET
AGITATOR TANK
ESSENCE TANK
CARBONA
CHILLING
TOR
TANK
ESSENCE AIR
CANDYMAN VOLUMETRIC FILTER
MACHINE
PACKING
LABELING
CONVEYER
CHECJING
FILLING MACHINE
The production process starts f rom Borwell. First o f all w ater comes f rom the Borwell through motor and it goes to the tank. Af ter these water
goes to the sand filter by help of motor. Sand filter is used f or water filtration purpose. Then the water shif ted to the carbon filter. It is another
method used f or water purification purpose. Next these water moves to the cartridge filter, micro filter and ultra violet filter respectively. These are the filters used also f or water purification purpose. Af ter all these
process filtered water store in sub tank. The tank contains 5000 liters of water. From the sub tank, water goes through pipeline to the Agitator tank. In this same time on other hand w ater also move to the chilling machine f or cooling process. There is gas cylinder which contains co2. The cold
water and co2 directly goes to the carbonator. Carbonator is used f or mixing co2 and cold water. Then it moves to the filling machine. Air compressor is used f or operating the filling machine. In the agitator tank, sugar and water are mixed and heating. Af ter that it goes to the candy man filter which is used f or sugar filtration purpose. Then the water directly goes to the essence tank. Here the essence is mixed. Af ter this process essence syrup moves on the volumetric machine. Then the bottle is kept on conveyers which help to reach filling
machine. Af ter that the essence bottle is filled with gas and water. Then corked by workers and it is transf erred to the checking department. Af ter checked, label the bottle. The last process is packaging, and then cases are moved in to the store room.
WATER FILTRATION PROCESS
Borwell(water)
SUB TANK
tank
Ultraviolet filter
Sand filter
Carbon filter
Micron
Cartridge
filter
filter
1. Sand filter: It is used f or water filtration purpose. It contains sand f orm seashore, black rock chips, and white rock chips. It helps the water
purification purpose. Sand is replacing in every year.
2. Carbon filter: It is another method used f or water purification purpose. It contains carbon chips and black rock chips. Filter replacing every year.
3. Cartridge filters: This filter is used f or the removal of all sediment like sand, silt, rust and other particles bigger than the 5 micron. This filter does not remove
bacteria that are smaller in size than this micron rating. This filter is replacing every week. It is working as the security on micron filter. Cartridge filter help to enlarge the lif e of micron filters.
4. Micron filters: It is the 5 layer filters used f or filtering the water. Layer indicates the diff erent size of the filter. It helps f or sorting the
water.
Types of layer: (1) 10 micron, (2) 8 micron, (3) 5 micron, (4) 1 micron. The filter is replacing in every year. 5. Ultraviolet filtering: Water filtering is doing with the help of ultraviolet rays. Ultraviolet light passing through the water, it helps to heating the water and prevents entering the germs in to the water. The filter contains a tube, the water passing on the tube f or the purification purpose.
CHILLING TANK
SUB TANK
AGITATOR TANK CANDIMAN FILTER
CARBONATOR
CO2 ESSENCE TANK VOLUMETRIC MACHINE
FILLING MACHINE
CHECKING
LABELING
PACKAGING
ESSENCE PREPARATION PROCESS Agitator tank: Agitator tank contains 450 liter water f or one batch production. 0
Here 3 quintal of sugar added with 450 liter water. Heating 60 Celsius. 0
Then add 1 cup of Hi f low and 3 cup of carbon powder . then heating 80
Celsius. H i f low is used f or sugar filtration and c arbon is used f or in order to remove yellow color of sugar.
Candy man filters It is a 12 layer paper filter used f or sugar filtration. Paper is like cotton and it remove every batch of production. Water rotates in candy man filter in 2.5 hours.
Essence tank Af ter the candy man process filtered sugar water store in the essence tank f or the essence mixing purpose. Essences are adding f rom this tank like orange, cola and lemon. Bef ore adding essence, the sugar water is cooling f rom the essence tank.
Volumetric machine It is used f or measuring and filling essence syrup in diff erent levels of bottle like 2 liter, 500 ml, 300ml, etc.
LITTER
2 ltr. 1.5 ltr 500 ml 300ml
ESSENCE
460ml 350ml 120ml 80ml
Chilling tank 0
It is used f or water cooling process. Water cooling 4 Celsius.
Carbonator It is used f or m ixing Co2with cold water. Cold water is f lowing f rom chilling tank and gas f orm separate cylinder. 80 kg g as is used f or one batch production.
Filling machine The machine used to filling essence syrup with cold water and co2,
which is coming f rom carbonator. Filling machine is operating by the help of air compressor.
PRODUCTION OF PET SODA CO2
SUB TANK
LABELLING
PACKAGING
CHILLING MACHINES
CHECKING
CARBONATOR
FILLING MACHINE
PRODUCTION OF AERATED WATER
SUB TANK
CHILLING
FILLING
MACHINE
MACINE
CHECKING PACKAGING LABELLING
BOTTLE MAKING PROCESS Bottle making f unction is a supporting f unction of main production process.
Air compressor Blowing pref orm rotate machine
machine
PREFORM ROTATE MACHINE It is the machine with 6 heaters, heating the pref orm with the help of these heaters. The heaters are arranged in a systematic manner. 0
Heating pref orm at 240 Celsius.
BLOWING MACHINE It is a semi automated machine adjusted as per the pref orm type. Heating pref orm passing air into the heated pref orm f or shaping into the bottle.
AIR COMPRESSOR It is used f or passing air into the pref orm f or making bottle. 2kg of air used f or one bottle.
MACHINE DETAILS: 1. Machine for product. The machines needed f or production are purchased f rom Bangalore, Coimbatore and Bombay. Most of the machines are purchased f rom smith industries, Bangalore.
2. Bottle making machines. Bottle making process is started at 2006. Bef ore that the firm was buying the bottle pref orm f rom Hyderabad and assembled f rom palakkad. Machine is purchased f rom Gujarat.
The production c apacity of this machine is 600 units per hour. They
only produce bottle like 2 liter, 1.5 liter and 500ml green and white respectively. And also 300 ml green.
PLANT DESIGN LAYOUT: it ref ers to the proper arrangement of the various machineries, equipments, production facilities and employee amenities-in a factory f or getting m aximum benefits by eliminating wastage of money,
eff ort, efficiency and materials. There are f our types of layout-process layout, product layout, group
layout and fixed position layout. The firm adopted product l ayout. Where the equipments are arranged as per the sequence of operation required to manufacture a
particular product. The layout is designed by Smith Industries Bangalore.
PRODUCTION CAPACITY Firm is making product as batches. The maximum production capacity in day is 4 batches. Normally the firm is producing 2 batches. It is varies based on the demand of products. One batch takes 4 hours f or production. The number of bottles in the one batch is on the basis of volume of the bottle.
If produce 2 liter bottle in a batch-contains around 1000
bottles. If produce 1 liter bottle in a batch-The batch contains around
1300 bottles. If produce 500ml in a batch-The batch contains around 3750
bottles. If produce 500ml bottle in batch-The batch contains around
5625 bottles.
MATERIAL HANDLING EQUIPMENTS Material can be moved f rom place to place manually or mechanically. Manual movement of material is the easiest. But mechanical handling is generally used by industrial establishments. Usually there is only one equipment is used in production
department. It is called conveyers. Conveyers are powered device generally used f or moving unif orm loads continuously f rom point to point over a fixed path.
TYPES OF PLANT HANNA is a multistoried or vertical building. There are only 2 f loors. There are adequate steps f or the movement.
SOURSES OF WATER In t he beginning stage firm w as using the well water up to the2002. Af ter that the firm has been using Borwell water.
WATER REQUIREMENTS The firm using Borwell water f or production. Maximum 5000 liter
water is required f or daily production.
ESSENCE OF MIX STORAGE The maximum storage period of essence mix in 48 hours and
minimum period is 1 hour bef ore production. Product lif e is 6 months.
POWER REQUIREMENTS Firm is using power f rom the separate transf ormer. That is provided by KSEB as per the m inimum guarantee system. Firm have a generator. It is using power break time. Production process can continue with the help
of the generator.
BATCH Product is producing as batches. Every batch has batch number including manufacturing date. It is used f or product identification.
MAINTAINANCE Maintenance is the set of activity which helps to keep plant, machineries and other facilities in good condition. The firm f ollows corrective m aintenance. Corrective m aintenance is
just like repairs. Repairs are made af ter the equipments are out order. Corrective maintenance occurs when there is a work stoppage because of machine break down. Employees are trained f or the maintenance work. They can do the machine operations in the smooth manner. Machines are servicing in every year.
DEPRECIATION POLICY Depreciation denotes fall in the market value of fixed assets due to
various reasons. Firm adopted written down value method.
WASTE DISPOSAL The firm has a provision f or the disposal of waste. For the disposal
of waste facilities are available near to the plant. There is a small tank f or dumping of solid waste such as bottle etc., and there is a separate tank f or paper waste. The liquid waste is going outside tank through pipe line and it going to be dry.
DAMAGE The product damage noticed 5%and raw material damage at 2%.
STORAGE The firm has a storage capacity of finished goods is 6000 case at a
time. The maximum stock level of the firm is 6 days supply.
POLLUTION The firm gives more important to the pollution f ree environment. So
the company try maximum f or avoiding pollution. So firm more care about waste disposal system
PRODUCTION COST There are the costs associated with production of goods. Cost of
production include direct material, direct labor, direct expenses, factory overhead, and office and administration overhead.
Soft drinks(lemon, orange, cola) type
Cost (in RS.)
2 litter
25
1.5 liter
24
500ml
12
300ml
6
Pet soda type
Cost(in RS)
1.5 litter 16 500ml
6.50
Aerated water type
Cost(in Rs)
1 litter 6
CHAPTER 4.2
QUALITY TECHNIQUES
QUALITY ENSURING TECHNIQUES One of the m a jor achievements of an efficient industry is the ability to mass production of goods with unif orm quality at reasonable cost. In recent years poor quality bas been causing problems to the industry owners. Q uality control has theref ore become highly relevant. So the firm always cares about the quality of the products. Q uality ref ers
to the sum of the attributes or property that describes
the products. It is the high bolding f eature of the modern market. Modern market is highly competitive. The existence of product is very difficult especially in the f ood industries. Customer has great awareness of their health, w ho can make the product differently
ith high quality they can survive
w
the market . so the firm always cares about the quality of the product. In every stages of product ion process it is doing very systematically and also great about the quality of raw materials using f or production. Diff erent quality measuring techniques are using in diff erent stages
of production, those are 1.
BRISK METER / REFRACTOR METER It is using f or testing t he sugar level of the product. It helps to keep the sugar in an accurate level.
Normal sugar level of the products Product
level
Cola
11
Orange
11
Lemon
12
If the sugar level is noticing higher or lower than the normal point, it is re-leveling into the accurate level f rom volumetric machine.
2. TOTAL QUALITY MANAG EMENT The quality management is implementing in theref ore
ensuring the quality of the product. Employees are participating in quality measurement. It is also implemented in raw materials purchasing system. Every employee has their role in TQ M. 3.
PH METER It is used f or c hecking purity of water. The normal PH value of
pure water is 7. Filtered bleaching powder is used f or purity purpose.
4. CALIBRATION METER It is another meter f or using to check the purity of water.
5.
INSPECTION Periodic inspection is conducting by the f ood inspector and
factory inspector without prior inf ormation. Inspection is also conducting
under FPO f or ensuring of the product. 6.
SAMPLE KEEPING Firm always keeps a sample product f rom every batch f or 6
months. The purpose of this sample is to ensure the product will not damage within 6 months. Because of the lif e of product is 6 months.
CHAPTER 4.3
MARKETING DEPARTMENT
INTRODUCTION Marketing is all around us. In one f orm or another. It is very close to every individual. Good marketing is become increasingly vital ingredient f or business success.
Marketing is the human activity directed at satisfying need and wants through an exchange process.
IMPORTANCE OF MARKETIN Financial success is mostly depends up on marketing ability. Finance, accounting and other business f unctions will not be really matter if there is no sufficient demand f or the products and services. Better marketing
will be the result. , marketing manager must make ma jor decisions such as f eatures to design in to a new product, what price to off er to
customers, where to sell product and how much to spend on advertising or sale.
MARKETING MIX Marketing mix is the combination of strategy and process adopted f or customer satisfaction. Marketing m ix involves f our element, these are
otherwise known as 4 Ps. (Product, price, place and promotion).
PRODUCT A product is something that is produced by the factory and sold in the market . A product is a set of tangible and intangible attributes,
including packaging, color, price, manufactures prestige, retailers
prestige, and manufactures and retailers services which the buyer may accept as off ering satisfaction, wants or needs.
Consumers are the king of modern market. Every company is look to make the customer satisfied goods. Who can make the better products based on the customer satisfaction, they can survive the market.
PRODUCT DETAILS Sof t drinks: sof t drinks are in three f lavors, orange, cola and lemon. Pet soda: it is the combination of water and soda. Aerated water: it is the drinking water.
PRICING Price is
the money value of the goods and services
Price is very important to both the buyer and the seller. The buyer always wants to buy at a very low price while the seller always desires sell at a high price. Only when both of them agree at a particular price,
exchange of goods and services take place.
PRICING POLICY The firm is f ollowing the cost plus pricing . Under this method, the
price is fixed to cover all costs and pre-determined percentage.
PRODUCT PRICE SOFT DRINKS (LEMON, COLA, ORANGE) TYPE
COST
2 litter
Rs. 25
1.5 litter
Rs. 24
500ml
Rs. 12
300ml
Rs. 6
PET SODA TYPE
COST
1.5 liter
Rs. 16
500ml
Rs. 6.50
AERATED WATER TYPE
COST
1 litter
Rs.6
DISTRUBUTION CHANNELS The firm has been f ollowing three types of distribution system.
COMPATY
COMPANY
COMPANY
RETAILER
WHOLESALERS
AGENT
CUSTOMER
RETAILERS
WHOLESALER
CUSTOMER
RETAILER
CUSTOMER
COMMISSION
AND PROFIT MARGINS OF AGENT AND WHOLE SALERS SOFT DRINKS TYPE
DISTRIBUTION PRICE
MRP
2 litter
Rs. 38
Rs.43
1.5 litter
Rs. 33
Rs.38
500 ml
Rs. 15
Rs.18
300 ml
Rs. 8
Rs.10
TYPE
DISTRIBUTION PRICE
MRP
1.5 litter
Rs.18
Rs. 25
500 ml
Rs. 7.50
Rs. 10
PET SODA
AERATED WATER TYPE
DISTRIBUTION PRICE
MRP
1 Box(12 pieces
Rs. 80
Rs. 90
Wholesaler and Agent Commission The firm is providing commission to the wholesaler at 5 % to 10% and agent at 10 to 15% on the base of distribution price.
PROMOTION Promotion
consists of those activities that are designed to bring a
companys goods or services at the favorable attention of customers.
The promotion mix includes f or the elements, namely, advertising,
public relation, personnel selling and sales promotion. In the firm, promotional activities include;
Sales promotion The firm adopts trade promotion. Success in sales depends on
the whole hearted co-operation of middleman. The firm g iving price deals, f ree goods, buying allowances, etc,. The f ree goods are like bags, calendar, diaries, clock, pen, boxes and T-shirts, etc,.
Advertising Advertising is another element of promotion mix. In todays competitive business world marketing has become impossible without advertising. It plays a vital role in the process of moving goods f rom the producer to the customer. It helps the customer to
pick up the products that suit his taste among a variety of products. The firm spends Rs. 1, 00,000/- per year f or advertisement.
CAPTION:
quench your thirst with HANNA
Firm have been giving their advertisement in f ollowing Medias, y
TELEVISION
Visual Medias are the mass advertising area. Customer can easily understand about the process through visual medias with the help of the product adds. It is the best way of presenting about the product. A customer is attracting on ads. Modern market id consumer oriented, so most of the
companies are spending crores of rupees in advertisement. The purpose is presenting the product f eatures in a nice and attractive manner to the consumer. y
Theater
y
News paper
y
Magazines
y
Publicity program
y
Banner
MARKET Firm sell their product mainly 3 districts. Kasaragod, kannur, and wayanad. EXPORT
There is no export.
ADVERISEMENT AGENCY Advertising agency of HANNA group is located at Calicut.
MARKET SEGMENTATION Firm adopted geographical market segmentation. This is ref ers to the grouping of customer according to their geographical location.
PACKAGING: Company makes bulk packaging. Packaging considered f or product protection.
TYPE
1 CASE
2 litter
9 piece
1.5 litter
12 piece
500 ml
24 piece
300 ml
30 piece
Pet soda
16 piece
is more
COMPETITORS:
We know that, this is really a competitive world. HANNA is a growing sof t drink company. We have well known about other global sof t drink giants, some of these are Pepsi Coca cola Mountain dew , etc,. Other local companies likes, Bindu, Neethu, Joy sip, etc.
These are the main competitors of HANNA.
GROWTH IN SALES: 5 4.5 4 3.5 3 sof t drinks
2.5
pet soda 2
aerated water
1.5 1 0.5 0 2007
2008
2009
2010
CHAPTER 5
HUMAN RESOURCE DEPARTMENT
HUMAN RESOURCE DEPARTMENT Human beings are the key resource of an every organization. The success of any organization depends on the efficiency with which its
resourses are managed. Its all resource are ultimately managed by human beings. Identifying the right man f or the right job is a crucial
element f or success. HR department basically aims at contributing human eff orts through personnel employed in the organization towards achieving the objective the organization, and these should come out
willingly with dedication and high degree of morale among the employees.
Human
resource
department
opens
channels
of
communication to build trust and commitment. Its policies are goal oriented with participative style.
Working Time: 8.30am to 5.30pm Manpower Details: Number of employees: 26 Male
: 16
Female
: 10
TYPES OF WORKERS Skilled workers
:6
Semi-skilled workers: 9 Un-skilled workers EMPLOYEES
: 11
LOCALITY
Most of the employees are f rom local areas.
RECRUITEMENT Recruitment is the process of searching f or prospective candidates and stimulating them to apply f or the job in the organization. The company using external sources f or the recruitment process Advertisement Recommendation
If any vacancies arise in the organization, it is advertising in the news paper and c all f or application. Firm always f orces to apply the right person f or the right job.
SELECTION Selection is the process of identifying the most suitable and promising candidates f rom the list of recruited person.
PROCEEDURE FOR SELECTION Scrutiny of applications Interviews Final selection Placement Training
TRAINING Training
means
to
impart
inf ormation
and
skills
through
instructions. It is the method of increasing the knowledge, skills and aptitude of an employee f or perf orming a particular job. There is no such training f or m anagers or to the office workers. But induction training is given to the employees. The method used in
organization is on the job training. The workers are trained by their supervisors within the organization. ELIGIBILITY
FOR APPOINTMENT
One must be a citizen of India and must have attained 18 years
of age. One must be sound health, active habits and f ree f rom bodily
def ects or infirmity rendering him unfit f or the post. One must satisfy the appointing authority of his character.
AGE LIMIT Mostly young employees are pref erred f or plant. The upper age limit of the employees is 40 years in plant.
TIME KEEPING SYSTEM A systematic record is f ollowing in the firm. Master role is used f or recording employees attendance.
LEAVE RULES Firm gives most of the Sundays and f estival days are as holyday. So that, there is no other casual leave. Sick leave is allowing on the basis of employees health.
ABSENTEEISM AND LABOUR TURNOVER There is no absenteeism and labor turnover because the workers are get enough satisfaction f rom their job. In most of the case
management interested in knowing workers grievances and they take remedial measures to solve this problem.
GRIEVANCE HANDLING MD has a direct relationship with every employee. If employees have any dis-satisfaction of their work, they can directly inf orm that to
the MD. The MD is always enquiring the work satisfaction of employees and he should solve the employees problem.
PAYMENT SYSTEM The organization is keeping minimum wage policy. Time wage systems are f ollowing the organization. Piece wage system is f or bottle
maker and other are in time wage system. Monthly salary is given to the office staff and other workers.
SALARY INCREMENT Management is increasing the employees salary in every year as per the profit margin.
PERFORMANCE APPRAISAL Supervisor will evaluate the perf ormance of employees.
LABOUR MANAGEMENT RELATIONS Healthy relationship between employees and management are in the firm.
BENEFITS Monitory benefits;
In the HANNA, management provides bonus and incentives in order to reduce their work. Fringe benefits;
Workers get unif orm, canteen, dressers, etc,. Retirement benefits;
There is no such benefit till now.
SAFETY MEASURES There is adequate lighting and ventilator and also saf ety measure against the fire. Glues, masks, dresses are using saf ety purpose.
MOTIVATION Employees are getting maximum f reedom in organization. They are involving in all activities of the firm. They are highly motivated people.
Management is protecting the employees rights and needs. Employees ideas are considered f or achieving the organization goals. Management
using Y Theory f or motivation.
WELFARE ACTIVITIES Canteen and rest rooms Saf ety and health measures Providing unif orms Sick leaves National and f estival holidays Bonus is giving at 3 times in a year
BEHAVIOUR ASPECT OF THE EMPLOYEES Initiative Willingness Punctuality Discipline Commitment Relationship with others.
CHAPTER 6
FINANCE DEPARTMENT
INTRODUCTION Financial management is that managerial activity which is concerned with planning and controlling of firms financial resources. The participating managers are interested in this subject because among the most crucial decisions of the firm are those which related to finance and an understanding of theory of financial management provides them with
conceptual and analytical insight to make those decisions skillf ully. Financial management is always thinking how we can use our money f or getting maximum return and f or achieving the organizational goals.
FINANCIAL YEAR: APRIL-MARCH CAPITAL
STRUCTURE OR INITIAL INVESTMENT
The firm was starting with an initial investment of Rs.1 crore. The firm got industrial subsidy Rs.6 lakh f rom the government. Rs.60 lakh is
the contribution f rom the partners at 60:40 ratios. And rest of the amount is loan f rom KFC and Punjab National Bank.
ACCOUNTING PROCEEDURES a) DAY BOOK
It is used f or recording the daily transactions.
b) PURCHASE DAY BOOK It is used f or recording the purchase details. It includes all customers transactions. c) SALES DAY BOOK It is used f or recording raw material purchase details. It includes all suppliers transactions.
d) LEDGER It is used f or recording in a separate account. e) STOCK REGISTER It is used f or recording raw material details. Purchase and production details of the raw materials are recorded in these books. f ) PRODUCTION REGISTER
It is like a stock register. Finished goods details are recorded in this book. The produced quantity of finished goods and how quantity is going f or sales, all details are recorded in the production register. g) CREDITORS DAY BOOK It is used f or recording creditors details. h) PAY ROLL
It is used f or recording employees remunerations payment details.
i) SALES RETURN BOOK It is used f or recording the sales return of the product.
j) PURCHASE RETURN BOOK It is used f or recording the purchase return of the product. k) DEBTORS DAY BOOK It is used f or recording debtors details. l) BANK REGISTER For recording transaction related with bank. m) TRIAL BALANCE
It is used f or verification purpose. It helps to check the accuracy of the accounts. n) MANUFACTURING TRADING AND PROFIT AND LOSS A CCOUNT It shows the financial result of the business. It is preparing based on the trail balance. o) BALANCESHEET It is preparing at the end of the financial year. It shows all asset and liability of the business. p) BUDGET PREPARATION The company is preparing the budget in two returns. That is f or annual budget and monthly budget. The company is operating the
business based on this budget. q) AUDITING Company f ollows the annual auditing system with the help of chartered accountant in Kasaragod.
r) BAD DEBTS The company had 40 % bad debts in the first two year. Most of them are in hotels. Now the company f ollows the strict credit policy.
Currently the company has 2% bad debt. s) WORKING CAPITAL Cost
of sales
y
Telephone
y
Transportation
y
Carriages
y
Commission
y
Discount
y
Wages
y
Food and accommodation
MANUFACTURING AND TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31-3-2010.
PARTICULRS
SCHEDULES
RS.
OPENING STOCK
3489658
PURCHASE
4850858
ADD:
8340516 LESS:
CLOSING STOCK
3589658 4750858
ADD: DIRECT EXPENSES
F
1473869 6224727
LESS: SALES
8808955 2584228
GROSS PROFIT LESS: ESTABLISHMENT EXP.
G
2198858 385370
ADD: INVESTMENT SUBSIDY WRITTEN OFF PROPORTIONATELY
NET PROFIT
74482
459852
Note-above mentioned figures are not correct figures; these are estimated on the basis of previous year financial statements.
CHAPTER
7
FINDINGS AND SUGGESTION AND CONCLUSIONS
FINDINGS ONE OF THE UP COMING COMPANY in upper M alabar. Main problem of this company is, lack of production
capacity. They are using only less pro motional activities. Good quality products. Lack of market expansion. Semi-automated plant. Lemon and orange f lavored sof t drinks are most movable
product so t hey should have to give more concentration to the cola. Lack of distribution of products- distri bution is only in f ive
districts in Kerala. I could underst and that, they are more conscious to keep
their product in good qu ality. Dedicated workers.
SUGGESTIONS More promotional activities are needed. The company can
give the product awareness through advertisements. In my view, the company should have to implement
prof essional management system. Conducting of market survey will help the company to know
about their current standings. Innovative sales promotion activities are needed. Publicity is also will be a usable thing to create demand.
Pepsi and coca cola are sponsoring f or c harity works. Have to expand the widening of distribution c hannel. As compared to the other well known sof t drink companies,
the label design needs to become attractive. HANNA is a product of India, so the peoples will have some
mental attraction to this product, so the management should have to create like these types of Advt. policy f or attracting the customers.
CONCLUSIONS The product has a high demand in Malabar area especially in
Kasaragod district. So the company wants to be exaggerating their market all over the sout h India. Another thing is that, the product demand is high but the company cant produce as per the market demand. So the company wants to be expanding the production capacity with f ull y automated technology. The company can get more market share by expanding their distribution channel over the sout h India.
BIBLIOGRAPHY
