spinning mill organizational study

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Introduction Spinning is a major part of the textile industry. It is part of the textile manufacturing process where three types of fibre are converted into yarn, then fabrics, which undergo finishing processes such as bleaching to become textiles. The textiles are then fabricated into clothes or other products. There are three industrial processes available to spin yarn, and a handicraft community who use hand spinning techniques. Spinning is the twisting together of drawn out strands of fibres to form yarn, though it is colloquially used to describe the process of drawing out, inserting the twist, and winding onto bobbins. Yarn is a long continuous length of interlocked fibres, suitable for use in the production of textiles, sewing, crocheting, knitting, weaving, embroidery, and rope making. Thread is a type of yarn intended for sewing by hand or machine. Modern manufactured sewing threads may be finished with wax or other lubricants to withstand the stresses involved in sewing.  Embroidery threads are yarns specifically designed for hand or machine embroidery. Industry Profile a. Background of the Industry India Spinning Industry has gone from strength to strength since a very long time now as it was the hub of cotton manufacturing. Cotton is not only consumed to the highest extent in India but it has also become one of the most profitable textiles in the export industry. Spinning in India can be classified into 2 categories: medium and long staple. But there was a shortfall in the 'extra-long' category that continued for many years. There was a massive downfall in the cotton spinning in India during 2004-2005. The production rate of cotton was about 4 lakh bales that was less by 5 lakh bales from the required rate which was 9 lakh bales.

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Detailed study of the spinning mill

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IntroductionSpinning is a major part of the textile industry. It is part of the textile manufacturing process where three types of fibre are converted into yarn, then fabrics, which undergo finishing processes such as bleaching to become textiles. The textiles are then fabricated into clothes or other products. There are three industrial processes available to spin yarn, and a handicraft community who use hand spinning techniques. Spinning is the twisting together of drawn out strands of fibres to form yarn, though it is colloquially used to describe the process of drawing out, inserting the twist, and winding onto bobbins.Yarn is a long continuous length of interlocked fibres, suitable for use in the production of textiles, sewing, crocheting, knitting, weaving, embroidery, and rope making. Thread is a type of yarn intended for sewing by hand or machine. Modern manufactured sewing threads may be finished with wax or other lubricants to withstand the stresses involved in sewing. Embroidery threads are yarns specifically designed for hand or machine embroidery.

Industry Profilea. Background of the IndustryIndia Spinning Industry has gone from strength to strength since a very long time now as it was the hub of cotton manufacturing. Cotton is not only consumed to the highest extent in India but it has also become one of the most profitable textiles in the export industry.Spinning in India can be classified into 2 categories: medium and long staple. But there was a shortfall in the 'extra-long' category that continued for many years. There was a massive downfall in the cotton spinning in India during 2004-2005. The production rate of cotton was about 4 lakh bales that was less by 5 lakh bales from the required rate which was 9 lakh bales.

b. Contribution to economyIndian Textile Industry contributes about 11 percent to industrial production, 14 per cent to the manufacturing sector, 4 percent to the GDP and 12 per cent to the country's total export earnings. It provides direct employment to over 35 million people, the second largest provider of employment after agriculture. Besides, another 54.85 million people are engaged in its allied activities.The fundamental strength of this industry flows from its strong production base of wide range of fibres or yarns from natural fibres like cotton, jute, silk and wool to synthetic or man-made fibres like polyester, viscose, nylon and acrylic. We can just track the strong multi-fibre strong base by highlighting the following important positions reckon by this industry across globe are : Cotton Second largest cotton and cellulosic fibres producing country in the world. Silk India is the second largest producer of silk and contributes about 18% to the total world raw silk production. Wool India has 3rd largest sheep population in the world, having 6.15 crores sheep, producing 45 million kg of raw wool, and accounting for 3.1% of total world wool production. India ranks 6th amongst clean wool producer countries and 9th amongst greasy wool producers. Man-Made Fibres- the fourth largest in synthetic fibres/yarns globally. Jute India is the largest producer and second largest exporter of the jute goods.

c. Market size The Indian textiles industry is set for strong growth, buoyed by strong domestic consumption as well as export demand. The most significant change in the Indian textiles industry has been the advent of man-made fibres (MMF). India has successfully placed its innovative range of MMF textiles in almost all the countries across the globe. MMF production recorded an increase of 10 per cent and filament yarn production grew by 6 per cent in the month of February 2014. MMF production increased by about 4 per cent during the period April 2013February 2014. Cotton yarn production increased by about 10 per cent during February 2014 and by about 10 per cent during April 2013February 2014. Blended and 100 per cent non-cotton yarn production increased by 6 per cent during February 2014 and by 8 per cent during the period April 2013February 2014. Cloth production by mill sector registered a growth of 9 per cent in the month of February 2014 and of 6 per cent during April 2013February 2014. Cloth production by power loom and hosiery increased by 2 per cent and 9 per cent, respectively, during February 2014. The total cloth production grew by 4 per cent during February 2014 and by 3 per cent during the period April 2013February 2014. Textiles exports stood at US$ 28.53 billion during April 2013January 2014 as compared to US$ 24.90 billion during the corresponding period of the previous year, registering a growth of 14.58 per cent. Garment exports from India is expected to touch US$ 60 billion over the next three years, with the help of government support, said Dr A Sakthivel, Chairman, Apparel Export Promotion Council (AEPC).

d. Major playersSome of the major players in this industry are Bhilwara Spinners Ltd. (LNG Group) Nitin Spinners Ltd. Sangam (India) Ltd. (Sangam Group of Companies. Ajay Group of Industries Laxmi mills pvt ltd

e. Government policies & regulations1. National Textiles Policy - 20002. Technology Upgradation Fund Scheme (TUFS)3. Textiles Workers' Rehabiliation Fund Scheme (TWRFS)-Guidelines & Funds Utilization4. Integrated Scheme for Powerloom Sector Development5. Group Insurance Scheme (GIS) for Powerloom Sector Workers6. Scheme for Integrated Textiles Park (SITP)7. Hank Yarn Obligation (YYO)

The Government of India has promoted a number of export promotion policies for the textiles sector. It has also allowed 100 per cent FDI in the Indian textiles sector under automatic route.Some of initiatives taken by the government to further promote the industry are as under: The government has taken a lot of initiatives for the welfare and development of the weavers and the handloom sector. Under revival, reform and restructuring (RRR) package, financial assistance to the tune of Rs 1,019 crore (US$ 169.66 million) has been approved and the Indian government has released Rs 741 crore (US$ 123.42 million). Encouraged by turnaround in textiles exports, the Government of India plans to set up a US$ 60 billion target for the current financial year, a jump of over 30 per cent from the previous financial year. The Cabinet Committee on Economic Affairs (CCEA) has approved an Integrated Processing Development Scheme (IPDS) with a corpus of Rs 500 crore (US$ 83.28 million) to make textiles processing units more environment-friendly and globally competitive. The Government of India plans to set up a Rs 100 crore (US$ 16.62 million) venture capital fund to provide equity support to start-ups in the textiles sector, in order to encourage innovative ideas in this export intensive sector. The Government of India has allotted Rs 700 crore (US$ 116.60 million) in the 12th Five Year Plan for the development of technical textiles. In 201213, the technical textiles industry reached Rs 7.48 trillion (US$ 124.60 billion) at an annual growth rate of 3.5 per cent.f. Recent trends in the industryThe Spinning Industry in India is on set to hit the global market with other fabrics as well like the cotton textiles with its enthusiasm and consistency in work. It has already reached a phenomenal status in India by beating the obstacles that caused a downfall since past few years and is now on its way to cover a wider area in the spinning sector.Indias yarn exports to be 1/3rd of yarn production in FY14 driven by import by China resulting in improved demand which coupled with weaker Rupee supports realization and profits:1. Indias dependence on China has increased in recent past as China accounted for ~33% of Indian cotton yarn exports as against ~4% in FY08. With improved export demand Indian spinners have witnessed improved capacity utilization levels, which stood at record high levels of ~90% in FY13.2. Increased export demand, stability in international cotton and yarn prices and depreciation of the Indian Rupee led to improved rupee realizations for Indian spinners, which averaged ~Rs 204/kg in FY13 and increased to ~Rs 220/kg by September 2013 due to further depreciation in Rupee.

Domestic cotton availability and prices to remain firm owing to high cotton and cotton yarn exports; situations remains highly vulnerable to Chinese policy changes:Domestic cotton prices remained stable till February 2013 at ~99/kg , well below minimum support prices of ~Rs 110/kgs in some states (especially Andhra Pradesh), which led to support price operations including purchase of ~2.3 million bales in CY13 by Indian government agencies. However, increased domestic cotton demand to meet export demand of yarn and continued cotton exports led to gradual increase in cotton prices to ~Rs 140/kg by September 2013 and owing to free exports allowed in CY13.

g. Challenges for the industry The Indian textiles industry is set for strong growth, buoyed by both strong domestic consumption as well as export demand. The industry is expected to reach US$ 220 billion by 2020, according to estimates by Alok Industries Ltd. The Central Silk Board sets targets for raw silk production and encourages farmers and private players to grow silk. To achieve these targets, alliances with the private sector, especially major agro-based industries in pre-cocoon and post-cocoon segments have been encouraged. For the textiles industry, the proposed hike in FDI limit in multi-brand retail will bring in more players, thereby providing more options to consumers. It will also bring in greater investments along the entire value chain from agricultural production to final manufactured goods. With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade with several international players such as Marks & Spencer, Guess and Next having entered the Indian market. The organised apparel segment is expected to grow at a compound annual growth rate (CAGR) of more than 13 per cent over a 10-year period.

Company Profilea. History & BackgroundThe company was founded by Mr.C.K.Sambandam in 1990 with some financial assistance from Tamilnadu mercantile bank and since then the company has gone through some serious changes in modernization and quality control. As the availability of the cotton has vanished to a negligible existence in TamilNadu it gets its raw material from the northern states of Gujarat, Andhra Pradesh, Madhya Pradesh, and Karnataka. And now the company has earned a name for its own in the spinning industry in Tamilnadu.The company is headed by the Executive director Mr. K.S.Prakash along with the board of directors Mr.S.Boopalan, S.Rajendran, R.Laxmi narayanan. The auditor of the company is Mr. CA. L. Narayanan.

b. Vision & MissionThe vision statement of the company states that Sri malini Spinning Mills strives to achieve excellence in all sectors of the textile industry, from fibre to finished product, constantly striving to be at the forefront of our industry and to generate highest possible value for all stakeholders.The mission statement of the company states that it thrives to manufacture international quality yarn and fabric, with the highest level of competitiveness on all parameters and to effectively harness and integrate all available technology across various elements of the textile chain and to cater to product innovation by mastering value added areas like processing and finishing.

c. ProductsTheir product is Polyester cotton yarn for clothing and the loosely knitted cotton yarn for inner wears.

d. Market The local market they serving are the garment companies from Salem, Namakkal, Tiruppur, Erode and Chennai. They are also serving the companies from outside the state such as Andhra Pradesh, Karnataka, Madhya Pradesh.

e. Financial performance Amount in lacs of RupeesParticulars

2012-20132011-2012

Sales including other income

106.83246.65

Profit/Loss before interest and Depreciation

(21.01)(13.55)

Financial Cost

98.74244.32

Prior Period Adjustments

5.27

Profit / Loss before Taxation

(15.74)(13.55)

Add : Loss brought forward from the Previous Year

1300.80(1287.25)

Net Loss carried to Balance Sheet

(1316.54)(1300.80)

f. Challenges for the companyWith increase in cotton prices in FY14, the working capital requirements of the sector are expected to increase and given the susceptibility of cotton prices to policy changes, prudential working capital management and inventory stocking will be the key challenge as any decision on cotton policy post March 2014 may lead to a decline in cotton and yarn prices and hence can result in inventory losses for the mills. They are also facing employee turnover citing health reasons and also competition from other spinning mills are major threat for them.

Organization structure

Managing DirectorExecutive DirectorHR ManagerSpinning MasterAsst. Spinning MasterSecurities & Canteen MastersCashierFitters & WorkersMarketing Manager

Overview of FunctionsHR Practicesa. Role of HR Manager The HR manager in the organisation takes care of all the activities involving human resources inside the organisation and their welfare and compensation. Human Resource Planning Interfacing with Management and Heads of Department for implementing HR policies & procedures in line with core organisational objectives to increase productivity with consistent quality. Formulation of HR Strategy as per the overall Business Strategy. HR Policy formulation and Communication Strategy for achieving the targets such as productivity with quality in the organisation.

b. Recruitment and selection Recruitment, Manpower organizing Maintaining Resume data bank , Resume screening, Generating Call letters Conducting Tests and Evaluation Handling Interviews Preparing fitments proposals and appointment orders Coordinating induction programme for new recruits.

c. Training & Development Identifying training needs across all levels through assessment of skills required for particular positions/jobs after analysis of the existing level of competencies. Implementing in-house training programmes with experts and development initiatives to achieve results; updating database with names of attendees, dates, faculty, cost and feedback. Conducting training feedback analysis; updating training undergone in the skill of the members.

d. Performance Appraisal Managing appraisal process across levels & establishing framework for substantiating Performance Appraisal System periodically linked to Reward Management.e. Career planning and development Employees who are capable of doing more than what they are assigned to do, then they are given proper training in the upper level to carry on top management works. The promotions are given for them for the moral boost of the employees.

f. Industrial Relations / Statutory Provisions

Taking care of Attendance and statutory works. Maintaining Attendance records. Payments and personal files of all employees. Maintaining Statutory Registers. Liaison with Govt. authorities like Labour department, Inspector of Factories, ESI and EPF.

g. Compensation plan All the direct and indirect compensations are planned according to the job value and their performance. Handling Time office functions. Payroll processing work. Preparation of Salary and Wage statements. Working out Increment as well as Bonus and Profit share

h. Financial incentives They gave all forms of monetary rewards like bonus, cash awards to their employees.i. Non financial incentives

Taking care of Employee welfare schemes viz. Mediclaim, Medical & Educational reimbursement. Maintaining hygiene condition at shop floor,etc. Co - ordinating with canteen, tea supplies etc.,

j. Discipline Administration The supervisor takes care of enquiry issues, day to day grievances of the employees. Coordinating development or up gradation of Time office and Payroll systems. Strict norms are followed by the employees inside the organisation for the better performance. Serious issues are directly handled by the HR manager and decisions like suspension and dismissal of the employees

Financial managementa. Sources of capital Loan from TamilNadu Mercantile bank. Share capital. Owners fund.b. Role of Financial Manager Raising Funds for the Company. Allocation of funds to various departments. Maintain the financial reports. Profit planning. Budget preparation. Perform the payments and receipts activities. Monitor and control the unwanted expenses. c. Cost of capital Share capital= Rs.50,00,000.00 Bank loans= Rs.91,26,180.00 Owners fund= Rs.28,39,200.00Total= Rs.1,69,65,380.00d. Allocations of funds to various departmentsThe financial manager ensures sufficient amount of funds for all the departments inside the organisation and allocates the fund according to their need efficiently. So in every other department every financial decision is made with the involvement of the financial manager. As it is a manufacturing company the production department needs more money than any other department for the purchase of raw materials, production cost and inventory cost. Marketing department for packaging and distribution of finished goods. HR department for employee recruitment, training and compensation. e. Credit policy Their cotton suppliers allowed 90 days credit period to the organization. The organization allowed 30 days credit period to their customers.

f. Payment & Collection procedure The company paid to their suppliers via bank transactions. The company collected their receipts via agents and bank transactions.

g. Budgeting methodThe organization follows TopDown method for budgeting. In this Top-Down budgeting method, top level management of the organization sets the budgeting guidelines and gives it to the lower level management. Based on the guidelines of the top level management, lower level management prepares the budget for the year.h. Control processThe finance manager checked the credit process regularly and cut down the over credit and unwanted expenses.

System managementThe main function of the system management is to Analyze Software handling Updating new technologies Ensure Security Database managementa. IT system platformAll of the systems are installed with Windows 7 operating system. All the software they use run on windows platform.b. Software used They keep up to date with all the transactions and other details in their system. Various software used are Windows Excel Tally Oracle database server Textile software developed by Aerosoft TechnologiesMarketing Managementa. Marketing manager`s roles Marketing manager plays an important role in the process of dealings with the buyer. He maintains the communication with the buyer and acts as the middleman between the buyer and the seller. Marketing strategy is a very important factors to sale the products to the buyer. In case of garments marketing dealing with the buyer is a very important factor. There are some fixed buyers for the company. The buyers give their orders continuously all over the year. The marketing managers on both the side understanding the rate and the order quantity are fixed.

b. Duties and Responsibilities of the marketing manager:Dealing with the buyer and convince the buyer is the main duty of the marketing manager and he also has some other duties: To prepare the cost sheet by dealing with the buyer. To take different steps by discussing with the high officials & merchandisers. To maintain a regular and good relationship between commercial officer and & merchandiser. To maintain a regular communication with the buyers and buying houses. Communicating with the new buyers. Display the better criteria of the products.

c. Marketing managers role with other functional heads

In the organisation, the marketing manager negotiates with the supplier of the raw materials and buyer of their products. Hence the funds are allocated according to their needs for those processes by financial manager. The marketing manager sends the sales report and demand in the future to the operations manager so that the operations manager could align their production accordingly. The marketing manager estimates the demand, the productivity and the workforce needed to achieve it and hence the HR manager is intimated for further actions of recruitment and firing of employees. As this is a world of technology a marketing manager heavily depends on the systems managers. But this is a medium scale company the marketing manager manages all the system related works by himself and he contacts the dealers and suppliers through internet.

d. Products and product policies Sri Malini spinning mills produces poly cotton yarn. The mill follows the pull strategy as it produces the yarn according the need of the customers. Various thickness levels are maintained in the yarn size.

e. Pricing Policies

The price of the yarn varies day by day as it depends on the priceof the cotton. As the cotton are transported from northern states such as Andhra Pradesh, Madhya Pradesh, Gujarat, and Karnataka to TamilNadu the transportation cost adds up to the cost of production of the yarn. Any deviation in fuel costs ends up in the price of the yarn. Yarn prices are controlled and regulated by the yarn association committee of the state.

f. Distribution StructureThe major customers for this spinning mill are some garments company and they get their yarn periodically according to the demand. But most of the time the spinning mill sells its yarn through the agents who distributes them to the customers.The distribution happens through the goods vehicles. Sometimes the spinning mill stocks the yarn for the price advantage.

Spinning MillCustomersAgent

g. Advertising Policies and sales promotion activitiesAs this spinning mill does have a specific set of customers who always depends on them for their yarn needs it manufactures just for them and it does not indulge in any sales promotion activities for attracting new customers.h. Marketing research ActivitiesMarketing researches are often carried out by the marketing manager for Estimating sales Cost of transportation Customer satisfaction Employee satisfaction Cost estimation Market demand

i. Promotions and CSR activities Sri Malini spinning mill funds 3 of the self help groups run by the women in the rural areas. They also help some poor children for their studies in Panamarathupatty Govt Higher secondary school.

Operations Managementa. Roles and responsibilities of the production manager Deriving the Master production schedule Supply chain management Estimating the stock of the raw material and their future need Making sure the product is produced according to the plan Maintaining a record for all the processes carried out in production sectionb. Production process

PackagingWindingSpinningRovingDraftingCardingBlow roomFinance ManagerRaw material

c. Receiving and processing orders The marketing manager sends the sales report to the operations manager, so the amount of product to be produced is estimated and then produced. Sometimes the order level depends on the customer needs and hence the yarn is produced according to that.

d. Types of production system Mass production system is used for producing the yarn.

e. Production planning and control procedures The demand from the customer is taken as a base to evaluate the amount of production. Based on the orders received the operations manager plans the days production. The production capacity of the spinning mills is taken in to account in the planning.

f. Inventory Management

The spinning mill keeps the inventory of

Raw materials Semi processed goods Finished goods

g. Record KeepingThe Asst. spinning master (ASM) keeping the records of the followings Availability of raw material. Records for each process of production. Availability of WIP and finished goods. Number of workers in various production process. Quality of the cotton and yarn.h. Lean manufacturingThe company used the blowing machines to absorb the wastes from the machines. The absorbed waste cottons are sold for producing the pillows and beds. The waste yarns are sold for producing the screen cloths, pillow covers and bed covers.

i. Quality control techniquesThey used the fibre testing machine to test the following qualities of the cotton Strength of the fibre Length of the fibre. Finesse of the fibre. Thickness of the fibre. Colour of the fibre.They used the following machines to check the quality of the yarns Wrapping machines for checking the count of the yarn. Single yarn strength machine for checking the strength of the yarn. Twist testing machine for checking the number of twists in a cone.

j. Work measurementWork measurement is the application of techniques designed to establish the time for a qualified worker to carry out a task at a defined rate of working. Thus it determines how long it should take to carry out the work.They measured the work based on speed of the machine. As per yarn association committee norms a spinning machine takes 8 hours to produce 105 gms of yarn per spindle.RESEARCH METHODOLGYResearch is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique, which provide precise tools, specific procedure and technical rather than philosophical means for getting and ordering the data prior to their logical analysis and manipulation. Different type of research designs is available depending upon the nature of research project, availability of able manpower and circumstances.

a. SELECTION OF THE TOPICThe study would help to find out the consumer satisfaction and their buying behaviour towards the yarn produced in the spinning mill and this would help the company know what are the consumer preference and what strategies should they adapt to grab and retain the market.

b. OBJECTIVES OF THE STUDY1. To study the Customer preference in quality of the yarn.2. To evaluate the cons and pros in the organization with the customer. 3. To know the consumers expectation and to adapt a strategy to satisfy their needs. c. SAMPLING PROCEDURE AND DESIGNThe research design is the blueprint for the fulfilment of objectives and answering questions. It is a framework, which determines the course of action towards the collection and analysis of required data.Sample design is definite plan determine before any data is actually obtaining for a sample from a given population

Sampling Technique: Convenience SamplingSample Size: 10 Respondents

d. METHODS OF DATA COLLECTIONThe data can be collected by two ways:- Primary source Secondary source PRIMARY DATA:The data collected for the first time by the researcher himself is called primary data. There are several methods of collecting primary data like questionnaire, Personal interviews etc. The method adopted for the study is: Questionnaire SECONDARY DATA:The data already available is called secondary data. This data may be present in the form of journals, publishings etc. under this report the information are collected from different sources like: Internet Newspapers

e. ANALYSIS AND INTERPRETATION OF DATAData presented in raw state appear unrecognized and complex. Statistical processors are used this complex data into some significant understandable form. I analyzed the data mathematically and then presented the results with the help of bar charts using percentage analysis.Tools Used: Percentage Analysis

1. How long have you been doing business with this company?

How long have you been doing business with this company?

FrequencyPercentValid PercentCumulative Percent

Valid1 year110.010.010.0

2-3 years330.030.040.0

> 5 years550.050.090.0

> 10 years110.010.0100.0

Total10100.0100.0

Interpretation:About 50% of the customers are doing business with this company for more than 5 years, 30% of the customers are doing business for 2-3 years and about 10% of the customers are doing business with this company for more than 10 years and 10% of remaining customers are doing business with them for 1 year.

2. How often do you order the yarn?

How often do you order the yarn?

FrequencyPercentValid PercentCumulative Percent

ValidOnce a Month330.030.030.0

Weekly220.020.050.0

According to the Need550.050.0100.0

Total10100.0100.0

Interpretation:About 50% of the customers order their yarn according the need and 30% of the customers order once a month approximately and 20 % of them order weekly once.

3. Are you satisfied with price range offered by the company for their products?

Are you satisfied with price range offered by the company for their products?

FrequencyPercentValid PercentCumulative Percent

ValidYes770.070.070.0

Just okay with it330.030.0100.0

Total10100.0100.0

Interpretation:About 70% of the customers are satisfied with the price range offered by the company for their yarn and the remaining 30% customers are just okay with it.

4. Are you satisfied with the quality of the yarn?

Are you satisfied with the quality of the yarn?

FrequencyPercentValid PercentCumulative Percent

ValidYes10100.0100.0100.0

Interpretation:All of the customers are satisfied with the quality of the yarn produced here.

5. Are you delivered the right product exactly like your specification?

Are you delivered the right product exactly like your specification?

FrequencyPercentValid PercentCumulative Percent

ValidYes990.090.090.0

No110.010.0100.0

Total10100.0100.0

Interpretation:About 90% of the customers satisfied the right kind of product delivered to them and the remaining 10% of the customers says that sometimes the products are not according to their specifications.

6. Your mode of transportation of goods?

Your mode of transportation of goods?

FrequencyPercentValid PercentCumulative Percent

ValidBy Truck550.050.050.0

By mini truck330.030.080.0

By Tata Ace220.020.0100.0

Total10100.0100.0

Interpretation:About half of the customers use truck to transport their goods and about 30% of the customers us mini truck and remaining 20% of the customers use Tata Ace.

7. Are you satisfied with the delivery time?

Are you satisfied with the delivery time?

FrequencyPercentValid PercentCumulative Percent

ValidYes990.090.090.0

No110.010.0100.0

Total10100.0100.0

Interpretation:About 90% of the customers are satisfied with the delivery time of the materials and remaining 10% of the customers are not.

8. Have you ever had any issues related to transportation?

Have you ever had any issues related to transportation?

FrequencyPercentValid PercentCumulative Percent

ValidYes550.050.050.0

No550.050.0100.0

Total10100.0100.0

Interpretation:About half of the customers have had issues related to the transportation and the remaining were mostly due to the fuel price rise and strikes due to the fuel prices and timing issues due to bad road condition.

9. Do you think the price of the yarn fluctuates very often?

Do you think the price of the yarn fluctuates very often?

FrequencyPercentValid PercentCumulative Percent

ValidYes990.090.090.0

No110.010.0100.0

Total10100.0100.0

Interpretation:About 90% of the customers think that the price of the yarn fluctuates very often and the remaining are not.

10. What do you think the reason for the price fluctuation?

What do you think the reason for the price fluctuation?

FrequencyPercentValid PercentCumulative Percent

ValidRise of the cotton prices110.011.111.1

Rise of fuel prices770.077.888.9

Inflation110.011.1100.0

Total990.0100.0

MissingSystem110.0

Total10100.0

Interpretation:Almost 70% of the customers feel that rise of fuel prices associates with the prise of yarn and 10% of the customers feel it is due to the rise of cotton prices and the remaining 10% of the customers feels it is due to inflation.

Findings & Suggestions1. According to the study most of the customers are doing business with the company for more than 5 years and they get their yarn from the spinning mill according to their need and they do not order very often. So I would suggest that the supply chain has to be restructured if it was not efficiently done before to reduce the wastage and to increase the manpower efficiency.2. Almost all of the customers are satisfied with the companys product and hence the quality issues are not a problem as of now.3. Also most of the customers feel that they are delivered the right product according to the specification so there are no issues in that too.4. Truck is the major choice of vehicle used for the transportation of goods.5. Almost all of the customers are satisfied with the delivery time and there are some transportation issues in the company due to the occasional strikes due to the fuel price rise and some supply chain issues. But those are not frequent.6. From the study it is very much evident that the price of the yarn fluctuates very much and that affects the customer behaviour. 7. On enquiring about the reason for the price fluctuation the price of the fuel plays a big part in it as the raw materials are brought from other states the transportation cost is much more. Thus company has to spend more on the transportation charges. If they could reduce the cost by somehow shifting the warehousing to the nearer place to the mill it would be efficient for them. Also if they could find some suppliers of raw material in TamilNadu itself it would reduce the cost of transportation. 8. Also if they could help the local farmers in planting the cotton they could harvest there itself and there is no need to spend extra money on that as the transport cost would suffice for that.9. Also they could request the government for giving subsidies for the cotton farmers as that would make the farmers grow more cotton that not only helps the company and the industry in TamilNadu but also it would increase the GDP of the state.

Conclusion:The organizational study helped me gaining the industrial exposure and also a brief introduction about the functional departments in the organization. All the processes from procuring the raw materials to delivering the final product to the customer are briefly touched upon during my tenure as an intern in the company.The marketing strategies to retain their customers for a long time is due to their strong quality measurements and timing on delivery. This organisational study not only gave the industrial exposure but also the practical knowledge on how things work in the real time.

Annexure QuestionnaireCustomer preference and satisfaction in spinning mill1. Name of the company:________________________________

2. How long have you been doing business with this company?a. 1 year b. 2-3 years c. >5 years d. >10 years

3. How often do you order for yarn?a. Once a month b. Weekly c. According to the need d. Rarely

4. Are you satisfied with the price range offered by the company for their products?a. Yes b. No c. Just okay with it

5. Are you satisfied with the quality of the yarna. Yes b. No

6. Are you delivered the product exactly like your specification?a. Yes b. No

7. Your mode of transportation of goods?a. By Truck b. By Mini truck c. By Tata Ace

8. Are you satisfied with the delivery time?a. Yes b. No

9. Have you ever had any issues related to the transportation?a. Yes b. NoIf yes specify it:_________________________________________10. Do you think the price of the yarn fluctuates very often?a. Yes b. No

11. If yes, what do you think the reason for the price fluctuation?a. Rise of the cotton prices b. Rise of fuel prices c. Inflation

Referenceshttp://www.citiindia.com/textile-industry/outlook-for-indian-textlie-industry.htmlhttp://texmin.nic.in/http://www.fibre2fashion.com/industry-article/market-research-industry-reports/indian-textile-industry/indian-textile-industry1.asphttp://www.texprocil.org/cotton-yarn