1.

1 INTRODUCTION

people, linked together by formal and informal relationships They have hierarchical orders
that are engaged in co-operative activities and they all have identical [Link] the study of
people in organization in important for future managers. Structure of an organization is very
important for its functioning and growth. It provides the basic frame work for its progress and
expansion. For future managers, it is imperative to study the organizational structure and
functioning of Successful organization so that they as Future managers may guide organizations
towards success and profitable Functioning.

The study was conducted at forest industries Travancore limited. It is a Kerala government
company established in 1946. This study enables get more knowledge regarding the various
departments of the organizational and their functions as well. The project on organizational studies
at forest industries help me to know how carefully each department is helpful for the smooth
functioning of the organization..
1.2 SIGNIFICANTS OF THE STUDY

➢ The study can be helpful to understand the production and the methods used for the
preservation
➢ The study helps to understand different management activities
➢ The study helps to understand the Various functions of each departments
➢ It help to identify the factors needed for motivating employees.
➢ Get an insight of the business concern.

1.3 SCOPE OF THE STUDY

There is something that cannot be understood by mere reading of textual matter There is a need
to see the application of textual knowledge be put into real life practice .The MBA course so far
has provided with only theoretical knowledge regarding the various management field sand
aspects. The industrial familiarization program has enabled to understand the practical use of the
theoretical perspectives.

1.4 OBJECTIVES OF THE STUDY

➢ To understand the history, growth profile structure and future plans of the .
➢ To understand the hierarchy structure followed in the organization
➢ To conduct a SWOT analysts
➢ To determine the function and procedure of various departments in the organization
➢ To interact with the manager at different levels and know their responsibilities and
routine activities
➢ To observe their work place and to interact with them.
➢ To give a profile of them under study.
➢ To undertake a study profitability of the firm
1.5 REASEARCH METHODOLOGY
Data required for the study has been collected from the primary and secondary source. Primary
data is collected through methods like observation and interviews with personal manager, technical
and non-technical workers, clerk, labors, etc.. Secondary data is collected through various other
sources like journals, magazines, books.

1.5.1 DATA COLLECTION METHODS

The study is conducted based on two types of data. They are;

Primary data

The primary data was collected through the personal interview and interaction with the workers
in the organization und also physical observation.

Secondary data

The secondary source included;

➢ Organization manuals.
➢ Official records.
➢ Annual records.
➢ Departmental manuals.
➢ Official website of the company.

The data collected from company's departmental manual added key information to this report
and helped to understand the process carried out by each department in details

1.5.2 ANALYTICAL TOOLS

SWOT analysis is used to analysis strength, weakness and opportunities and threats.

1.6 PERIOD OF THE STUDY

The study was conducted on the period of 21 days. Starting from may 5 to may21
1.7 LIMITATIONS
➢ The staffs were co-operative, but they were constrained by time due to their huge
schedule.
➢ The company personnel de not reveal the trade secrets and some confidential information
like financial and marketing etc...
➢ There is no choice for finding the problems: markets etc... because there are no research
activities are carried out.
➢ Since the job satisfaction of the employees is a mental attitude, it cannot be measured
accurately.
➢ The time duration of the study was only 21 days. It is not possible to do full justice to the
study with in such short period.
2.1 INDUSTRIAL PROFILE
2.1.2 International scenario
The global furniture market can be broadly categorized into four categories domestic furniture,
office corporate furniture, hotel furniture and furniture parts. Globally, domestic Furniture
accounts For 65 per cent of the production value, Whilst corporate office furniture represents 15
per cent, hotel furniture 15 per cent and furniture parts 5 per cent According World Bank study,
the organized furniture industry is expected to grow by 20 per cent every year. A large part of this
growth is expected to come from the rapidly growing consumer markets at Asia, Implying
significant potential for growth in the Indian furniture sector

The worldwide furniture industry promises significant growth opportunity in near future
as the global economy and worldwide real estate industry is booming at the present moment. The
growing disposable income is also driving the growth of the worldwide furniture industry. The
furniture industry includes manufacturing of a wide. range of home Furnishing products and
designed interiors related to offices, households and institutions.

The furniture market developed countries like the US and Europe was heavily affected
by the economic turmoil in 2009, but the market registered growth in 2010. The furniture market
in the emerging countries like China and India has significant growth opportunity in neat future.
The market in the emerging Countries is expected to drive the growth of worldwide furniture
market in the future.

The growth in the world economy, real estate industry, and urbanization is driving the
growth of the worldwide furniture industry. Low cost furniture producers like China, Vietnam are
playing a significant role in the competitive landscape of furniture industry. The furniture
producers are focusing more on retailing their products to attract new customers. However, scarcity
of skilled labor, transportation, and cast optimization continues to be significant challenges to the
furniture industry.
The report analyzes the global furniture market with focus on US, UK, France, India, and China.
The drivers, trends and challenges for the industry have been analyzed. The report also profiles the
major companies with a discussion of their key business strategies.

By combining SPSS Inc.'s data integration and analysis capabilities with our relevant
findings, we have predicted the future growth of the global furniture market, We employed various
significant variables that have an impact on this industry and created regression models with SPSS
Base to determine the future direction of the industry. Before deploying the regression model, the
relationship between several independent or Predictor variables and the dependent variable
analyzed using standard SPSS Output , including charts, tables and tests.

2.1.3 National and State scenario

As of 2006, the Indian furniture market is estimated to be worth USS 7,922 million. Of this,
wooden furniture accounts for USS 1,358 million. About 11 per cent (USS 152 million) of this
(wooden furniture) is imported and imports are growing al 50 to 60 per cent every year. India was
the largest furniture interior is the world in 2004-05, with a 17 per cent share in the furniture
imports worldwide. A total of 10, 476 importers shipped furniture to India during this Period,
mainly from Italy, Germany, Spain, china, Korea, Malaysia, Indonesia, Philippines and Japan.

The furniture sector in India makes a marginal contribution to the Gross Domestic
Product (GDP), representing about 0.5 per cent of the total GDP. The major part of this industry,
approximately 85 per cent is in the unorganized sector. The remaining 15 per cent comprises of
large manufacturers, such as, Godrej & Boyce Manufacturing Co. Lad BP Ergo, feather lite
Haworth. Style Spa, yanthra, Renaissance, Millennium Lifestyles. Duran, Kian, Tangent furniture
Concepts, furniture wala, Zuari , Truzo, N R Jasani& Company. V3 Engineers, PSL modular
furniture, etc..

The range of Indigenous furniture available in India, includes both residential and contract system
Furniture. Manufacturers in India usually use a three-tier selling and distribution structure,
comprising of the distributor, wholesaler and retailer. The market is mainly concentrated in A. B
and C category cities (the top 589 cities). A and B type cities together constitute 33 per cent of the
total market. With a healthy economy and increased household and institutional spending, the
market is growing steadily. As with the global market, home furniture is the largest segment in the
Indian furniture market, accounting for about 65 per cent of furniture sales. This is followed by,
the office furniture segment with a 20 percent share and the contract segment. Accounting fin the
remaining 15 percent.
2.2 COMPANY PROFILE

Forest Industries Travancore, a Kerala government company established in the year 1946,
is engaged in manufacture of wooden furniture and joineries (windows, doors, ventilators etc). It
is located at Thaikkattukara, near Aluva which is 15 km north of Kochi and 2 km south of Aluva
by the side of National Highway 47.

Forest Industries Travancore limited (F.I.T) was incorporated on 10th August 1946, under
the Travancore companies act of ME 1114 with the object of exploiting and selling timber and
other forest product from the malayattoor division and elsewhere in the state of Travancore.

FIT is a Kerala government undertaking under the Department of Industries. It is

registered under register of companies and registered as a SSI unit. The unit became a Kerala
government company in the year 1960. The unit was originally the agency of the FACT for
producing wood from Kerala forest department but since 1962, FACT change of their process and
therefore the FACT related operations were discontinued from 1963.

From then onwards FIT's main activity is wooden furniture manufacturing to meet the
needs of government of Kerala and commercial sectors. FIT is the only government owned
company in Kerala solely engaged in manufacture of wooden furniture and joineries. It's main
strength is its half a century long reputation of maintaining consistently superior quality of
products both in durability and finish.

The initial authorized capital was Rs. 1 core made by share of Rs. 10 each. But the authorized
capital was revised to 50 lakhs by a special resolution passed on 31st Dec. 1957.

The Companies Act 1956 was made applicable to the company by special resolution passed
at the annual general meeting held on 27th June 1960.
2.2.1 VISION AND MISSION OF THE COMPANY

Vision

Improving and sustaining healthy living conditions through conservation of biodiversity,

protection of environment, soil, water etc. and empowering forest tribes, woman and other weaker
section of the society through scientific, transparent and responsible methods.

Mission

The main mission of the company is to supply qualified furniture and joineries at competitive
price to customers ensuring customer satisfaction. It is concerned about environmental and safety
of the company.

2.2.2 OBJECTIVES OF THE COMPANY

The main objectives of the Forest Industries Travancore Limited are…..

➢ To produce and market high quality products at lower cost.

➢ To improve operational efficiency to maintained optimum productivity.
➢ To increase the profit without sacrificing quality of product.
➢ To promote organization development and to upgrade the quality of human resources.
➢ To improve the safety measure s and provide best working condition in the plants.
➢ To upgrade the machineries.

FIT’S Main Output Are;

➢ Wooden products
➢ Modular workstations
➢ Interior decorations
 ➢ Aluminium partitions
➢ Civil contracts
➢ Electrical contracts.

FIT'S Share at Present

Government of Kerala - 77.41 % Financial institutions -1.14% Public-

21.45%

FIT is situated at Thikkattukara near Aluva. This is 15 km north of Kochi and

2 km south of Aluva by the side of National Highway 47. The company possesses 9.095 acres of
land of which 1.475 acres is freehold land and 7.62 acres of land is leasehold land. The
administrative and factory buildings are situated in the leasehold land.

COMPETITORS

The main competitors of FIT are CADCO and SIDCO etc. Mainly FIT has two types of
customers, the state government and private members.

HIGHLIGHTS

The company always has an attention to adopt and accept modern technologies in its plants.
They introduce several innovations and modernizations schemes to achieve higher productivity
and energy conservation environmental control and economy inputs. The company markets their
product with a view to profitability.

FIT has no subsidiaries, branches etc... They have only one office at Thaikkattukara, Aluva.
They only the monopoly in this field.

PRODUCT PROFILE

The Forest Industries (Travancore) limited was established in 1946, is only government owned
company in Kerala exclusively engaged in the manufacture of wooden furniture and joineries.

Over the last six decades, FIT has done its part quite efficiently to provide high quality furniture
at reasonable rate. State of the art, high precision machinery and a highly skilled work force
ensure that their product attain the best possible quality. Apart from wooden furniture, FIT also
manufacture steel furniture, does custom interiors, aluminum /steel fabrication, modular work
stations for corporate civil/ electrical works etc.

FIT has a wide range of home furniture and decor solutions to provide the warmth and comfort
of a relaxed family life. The range includes: Sofas, Cabins, Telephone stands, Centre table,
Corner stand etc..

CORPORATIVE OBJECTIVE OF FIT

FIT is based on wooden things and now the industrial scenario of the company is continued to be
under depressed condition. Hence a part from manufacturing of furniture and joineries, company
as a part of diversification program has already entered into interior decoration; Aluminum steel
subtraction providing facilities for computerization such as marketing of computer cabins,
partition works supply of computer furniture and modular works and all type of civil work.

MANAGEMENT OF FIT

There are eight member team of board of directors to manage FIT. The managing director of the
company looks after the day to day affaires. The executives at different levels help the MD in
carrying out his work smoothly. There are directors to assist chairman and managing director.
The directors also include those nominated by the government of Kerala.

TRADE UNION PRESENTS

FIT maintained a very healthy relation with employee trade unions. There is no unrest in past
few. The atmosphere of the trust and mutual understanding is developed between management
and labor union. There are 4 recognize trade unions are;

FIT staff and workers association

FIT employee union

FIT employees federation

CUSTOMERS OF FIT

Kerala government.

Government institutions.
GENERAL MANAGEMENT PRACTICES

In every organization there are general management practices. These general practices are
the backbone of the success of the company. It provides the clear information about the
organization about the organization .Even a layman can understand what type of environment
exists in the company through study about the general management practices. Important general
management practices are.

PLANNING PROCESS

In Forest Industries Travancore Ltd, they are always looking for find out the opportunities
arising in the future, they analyses the economic trend and situation. Their planning process beings
only after going through a detailed analysis of the new opportunity. All the information they are
collecting from various sources like the type of customers, circumstance, product quality,
etc…This figure and facts help planning to be more realistic. Goals are which bind the whole
company. There is a tie between planning and objectives for making awareness to their employee
about their duties. Since they follow a motto best result will be achieved only when the best way
of doing work is selected they are seeking various ways through which organizational goals can
be achieved in best manners.

Any course of action may be suitable but it may involve huge investment and the other may
involves few amounts but it may not be very profitable. i.e., they study about the performance of
various actions and choose comparatively best one. In planning process, Board of Directors and
departmental managers are participating related with office and administrative matters.

DECISION MAKING PROCESS

Decision making is an important matter in an organization. Every day they have to decide
about doing or not doing a particular thing. A decision making may be related to problems. This
process helps in solving the [Link] making a final selection a number of responsibilities
are selected. A decision needs some sort of predication for the future on the basis of past and
present available information If a problem raised they try to identify the real problem, and
analyzing the problem, by analyzing they can understand the root cause of the problem. They
search for the alternative ways to handle the problems, in the light of past experiences. In case of
past and present situation are similar they can select earlier alternatives. The alternative one giving
better result is selected. Then the final decision is taken. The decision is committed to the
concerned person for action. Here in Forest Industries Travancore Ltd major decisions are taken
by the Board of Directors itself.

INFORMATION SYSTEM

Every activity of an organization is mainly depending upon communication, processing and

storage of information. Management needs some kind of information before decision making.
Management deal with organizational functions and managers drive the organization by planning
its future, organizing and controlling its present and directing others in the organization to work
towards their common objectives. Every decision requires information as an input. This need for
information is met by a set of information system in a synchronized manner, collectively called
Management Information System.

COMMUNICATION SYSTEM

In this world communication is very important part. Communication has certain purpose
such as:

➢ To provide orders and instructions, in connection with their duties.

➢ To solicit information from employees
➢ To keep employees informed
➢ To prevent employees turnover
➢ To make personal pride
➢ To maintain technological edge in the field of IT

CONTROL MECHANISMS

Control procedures followed in an organization. The use of objective standards enables

the supervisor to manage their duties, by providing quick information of deviations. In the use of
duties of personal as well as in the case of organization’s discipline the company follows certain
measures. Here in Forest Industries Travancore Ltd, the controlling processes are done by the
general managers and the major control issues are dealt by the Board of Directors.

GENERAL STRATEGIES

Strategy is an action which sets the direction that the company will be taking. It is a
decision making choice and would involve consideration for internal strength and weakness and
external environment affecting the company.

DUTIES AND RESPONSIBILITIES OF TOP LEVEL MANAGERS

A top level manager is expected perform creative functions of laying out goals and policies to
pursue his subordinate to work with confidence. The duties and responsibilities of the managers
are as follows:

Human Resource Manager.

➢ Manage all man power related activities.

➢ Liaise with local authorities and political parties.
➢ Ensure that proper records and maintained regarding employee welfare.
➢ Maintain salary records.
➢ In –charge of company security.
➢ Organize board meetings.
➢ Manage canteen activities and labor accommodation.

Finance Manager

➢ Supervise all accounts functions.

➢ Ensure that proper accounting practices are followed.
➢ Ensure that all taxes are paid on time and as per law.
➢ Proper sales tax and excises duty records shall be maintained.
➢ Follow up on payments from clients.

Marketing manager
➢ Liaise with auditors and bank.
➢ Ensure that cost escalation clauses of all contractors are properly followed up.
 ➢ Prepare management report on cash flow.
➢ Ensure that bank payments are done on time and without incurring penalties.
➢ Monthly outstanding collection statement to be prepared and inform/contact the client for
pending payment.
➢ Prepare monthly income and expenditure statement with separate head wise.

Purchase Management

➢ Carry all purchase activities of the company.

➢ Ensure that all raw materials and on time as per the requisition raised by production,
maintenance and office.
➢ Ensure that all stationary items are purchased as required.
➢ Ensure the purchases are done on a competitive bid and most economically at the
optimum price.
➢ Ensure that payments are done as per the terms of the purchase order and checking of
general manager.
➢ Stock control to be checked with production manager inventory to be maintained.

Production Manager

➢ To ensure optimum machine utilization so as to attain production target.

➢ Man power allotment as per the requirement.
➢ Ensure statistical quality work.
➢ Work execution as per the requirements of the client.
➢ Contract employee’s wages report.
➢ Work order analyze before the execution.  Ensure the quality assurance.
3.1 DEPARTMENT ANALYSIS
FIT has mainly five functional departments,

➢ PURCHASE DEPARTMENT
➢ STORE DEPARTMENT
➢ PRODUTION DEPARTMENT
➢ MARKETING / SALES DEPARTMENT
➢ PERSONAL / ADMINISTRATION DEPARTMENT
➢ FINANCE DEPARTMENT

3.1.1 PURCHASE DEPARTMENT

The purchase department handles the purchase activities. The main function of purchase
department is to procure raw materials, machines, tools etc., needed for production at the right
time at the right quantity from the kind of suppliers with right investments. Purchase manager is
the head of purchase department. Purchase manger is assisted by store keeper in charge and under
him there is material Assistant. The purchase manager reports to Managing Director.

The purchase department shall ensure that:

FIT requirements

Ensure uninterrupted production through supply of materials

➢ Correct specification of materials is provided in the purchase order

➢ The purchase items conform to the requirement of FIT.
➢ Materials required are identified, inspected and stored
➢ Materials received in store are preserved and finally issued to user departments
➢ Identify and control excessive storage and wasteful consumption

There are two types of purchase. They are cash purchase and credit purchase. Credit
purchases are settled within 30 days. Purchase items like raw materials, machines and machine
parts, office stationeries etc. are purchased according to the requirements of other department of
the organization. Final list of purchase items are prepared by the purchase department and given
to the Managing Director. If the MD approves the lists then the next step is to purchase the items.
The raw material used by the company can be divided into direct and indirect materials. Direct
materials include teak wood; rose wood, Sal, aanjili, pingoda etc. are purchased through auction.
It is mainly from nilambur forest depot. Forest Depot send auction chart to FIT which include the
details about timber. FIT purchase timber through yearly tender. They may recommend procuring
timber based on, quality and price. Glass used for teapoy is also purchased through quotation

Other raw materials like plywood, Formica sheet, Fevicol, screw nut, bolts etc. are directly
purchased from the manufacturing company in order to get the advantage of 16% excise duty
claim.

The following are the manufacturing company

Suppliers

Plywood - Western India Plywood Kannur

Formica Sheet - Formica India Division Pune

Fevicol- Pedilite Industries

STRUCTURES OF PURCHASE DEPARTMENT
3.2 STORE DEPARTMENT

The next department of forest industries (Travancore) limited is the material and storage.
According to forest industries the storage is the life blood of their business. It provides each and
every material to the workers in the plant. The store manager provides the things. Each and every
activity is done under the excellence of the stone manager.

The system followed by the store management is first in the first out method (FIFO). Under
this method material is used from the earliest consignment on hands and price a the coast at which
that consignment was placed in the stores this method is suitable in times of falling price because
the issue price of material to jobs or works orders will be high. FIFO is one-of the method that to
be used to be used to valuing material issue. The main through of this department is one product
at one place. Facer maintaining FIFO forest industries maintained a butcheries register. And they
provide only qualified material for manufacturing.

Each every product or materials have own characteristic of identification. They give more
importance for the preservation of the product. They use different types of preservation method
for different product or give they give importance to give preservation to the product. They provide
preservations in the group wise. Same products have one preservation method.

Forest industries Travancore have their own style to store different material ie fast moving and
commonly used products are kept in one place. This is more helpful for the smooth and fast
working of the manufacturing process.

The workers in the plantation collect the required materials and storage department they
use materials registration and issue note (MR) form for collecting the materials from storage.

The supervisor check the need of the worker is correct or not. When theworker tell their wanted
things for their work. After checking the supervisor list the wanted materials in the materials
requisition form. Then sign in. Then it will give to the material and storage department. Then the
worker can collect the wanted things from the store.

This process is helpful for the forest industries to know how many materials are used by the worker
and also avoid the wastage of materials by the worker. Only wanted items are only provided.
They also conducted monthly stock review for find out next month requirements and then the
information passes to the purchase departments and then the information passes to the purchase
departments to make appropriate purchase.

When the order is accepted by the company those orders have a number. No number means
acceptance order number. This no number and the card numbers are same. The delivery of
materials is done by this number. After making the product sometime the party make it themselves
or otherwise the company made it they store the finished goods in the showroom or in the store up
to making the delivery. The packing of product is changed according to the materials; it is for
preventing the damages in hand potations.
STRUCTURE OF STORE DEPARTMEN
3.3 PRODUCTION DEPARTMENT
Production is the most important activity of this organization. Production department starts its
production in accordance with the work order. This is one of the main departments in FIT, In
addition to production activities they also monitors the problem arising mechanical, electrical and
instrumentation activities. The various factors which prevent the department from achieving the
budgeted production are failure of power supply, unexpected break down of machines etc.,, to
overcome these, the company provided with Generator and well equipped machine shop with
efficient electrical and mechanical engineers.

Production department starts its production after receiving the Acceptance Order (A.O).
Acceptance Order is received through the effect of Planning and Marketing Department. So the
deduction Department has a direct link with the Planning and Marketing. Production Manager is;
the Head of this department. This Production Manager is the one who report to the Managing
Director. Production Manager is assisted by one Assistant Manager, and the Assistant Manager is
assisted by junior executive. There are 3 Super Visors come under the Junior Executive to control
the Band saw, processing and carpenting.. This Production unit works from 8.00 A.M to 5.00 P.M.

The production process includes various sub-processes. Machine shop is the sub-process of
production process which follows a maintenance mechanism. It has necessary tools and
equipment’s that it replaces worn out parts and lubricate the machinery on time and regularly 1
checks the working of the machinery.

The target of modern industrial organizations is to produce what has been planned at the budget
cost, and maintenance has the primary aim of enabling plant and Machinery to carry out the
production. Therefore every manufacturing organization needs maintenance because Machines
break down; parts where out over a period of time of use. It must also solve the problem of
preventing failure as process of loss of production.

The main objective of maintenance Is to get the equipment back into operation as quickly as
possible without interruption of production, periodic inspection of plant and equipment to prevent
break downs before they occur. This maximizes the availability of machinery and equipment for
production and preserves the values of the plant by minimizing wear and tear.
FUNCTIONS OF PRODUCTION MANAGER

➢ To ensure uninterrupted production.

➢ To provide necessary allocation of duties to the workers.
➢ Daily production and reporting.
➢ Over time calculation.
➢ Maintain report of production loss due to various reasons

QUALITY OF THE PRODUCT

The existence of the unit is in public interest that FIT is the only unit where the Kerala consumers
can cent percent rely on quality wood products. Quality is buzzword of the company. The company
is not ready to sacrifice quality for any monetary gains. Hence, the company possesses different
equipment’s and mechanism to ensure quality at .different stages of production it takes necessary
steps to ensure that maximum and minimum cost is incurred.

RAW MATERIALS USE BY THE DEPARTMENT

Raw materials used by the Department can be divided into Direct and Indirect Materials. Direct
Materials include Teak wood, Rose wood, Sal, Anjily, Pingoda etc., and Indirect Material includes
plywood, Mica, Polish, Inches and Screw etc. The purchase Department controls the purchase and
storage of raw materials.

SAFETY MEASURES IMPLEMENTED IN THE PLANT

The company gave much more importance to the Health & Safety Measures it obey the rules
regarding safety insisted in the factories Act, 1948. The overhauling of the machinery and power
supply system is done on the regular basis. Awareness programs and training class for plant
workers and supervisors are conducted. The unit is provided with Firefighting equipment’s,
Alarming system, first aid facilities etc. Besides these, the production unit is properly ventilated
and assures proper air circulation. Thus the company provides good working condition which
improves the quality of work which ultimately results in the production of high quality goods.

The production department Is the major function of the each and every organization. And it is also
same in the case of Forest Industries (Travancore) Limited. In production department the function
is start through exacting. That is receiving orders from the public and check whether it is accepted
or not. Then accept the order.
This order is passed to the planning section. They are planning about the product according to the
order. It is making after considering the customers interest and the money and estimate of the
customers. Then passing this information to the customers if they agreed it forest Industries
(Travancore) Limited received agreement from the customers.

PRODUCTION PROCESS

1. Band saw:-

This is the first step in production [Link] is huge machine for cutting the wood in to different
pieces. The machine is in rounded form. The band sow making the wood into different pieces ie.,
in thin and straightly. ;

2. Re Saw:-

In the second stage the Re Saw machine is used. The usage of band saw and resaw are same. Re
saw is also used in cutting the wood. It cut the wood into smaller pieces. These are functions of
1st section. Then the next section is the browsing section. There are different processes in this
section. It includes:

➢ Plainer
➢ Lath
➢ Drilling Plainer
➢ Thickness plainer
➢ Chisalmortizer
➢ Tennon machine
➢ Plainer

Plainer is a machine which cuts the woods in correct rectangular shape. It smoothen the two sides
of the wood. The hard things are remaining in this process. And that waste is given to the public
in cheap rate, ie., one big bag have only 6Rs.

They collect it directly from the plant itself.

Thickness Plainer

It is the same version of plainer. Plainer, correctly cut it in to correct

rectangular shape. In this it will correct the width and thickness of the wood.

Chisal Mortizer

This machine is used to make rectangle hole in the wood which

complete the above process.

Tennon

Tennon is another machine which is used to make the correct partner

of the chisel mortiser marked holes.

Lath

➢ It is one of the actual forms in the forest industries Travancore.

➢ It helps to make art work in the wood. It is only done by skilled and persons.

Drilling Machine

This is used to make round holes in the woods.

After all these next is the assembling section. Here the product will come into its final position.
After this the next step is moving all products into polishing section. Mainly they use melamine,
lacktor, wax polishing etc., for polishing the products. After the making of the product it will be
delivered to the customer or it is moved to the showroom.

FIT also doing upholstery work on the 1st floor. They are also supervised by the production
department. The materials that are wanted in the production is provided in the store with the
consent of store manager.

Then the final appearance is made. When one order is completed before the due date , it will be
kept in the stores. When the customer comes to take that order it will be provided only after a final
touch [Link] of the product in each department is correctly checked by the supervisor. They
are totally 24 supervisory staffs in FIT to checkout the manpower.

Each and every worker in the plant is safely secured. The machinery's are properly covered. And
each and every activity of workers in the plant is checked by the supervisors.
STRUCTURE OF PRODUCTION DEPARTMENT
3.4 MARKETING / SALES DEPARTMENT

Forest Industries Travancore Limited is having an efficient marketing system inside the state.
The products manufactured by the production department are marketed through this network.
The products are best quality products compared to private firms. The success and failure of every
organization or profit and loss are depends upon the marketing strategy. Marketing is the prime
mover of all functions of management. The demand for bench, desk, table and chairs are increasing
when compared to other furniture products.

The marketing function will start after the production process completion. FIT collect the raw
materials from the Forest and take it in to the manufacturing process. The cost of the finished goods
includes 33% of tax. The FIT produces their products according to the order received. And they
market 99% products to government departments like (info park etc) and after 1% to the public.

Channels of distribution for a product is the route taken by the title of good as they move from
producers to the ultimate consumers. Forest industries (Travancore) limited follow only force
channels to distribute their products services.

1. Company - Consumer

In this channel sells products directly to consumer 60% of forest industries Travancore Ltd.,
products are sold through this channel. FIT have 4 field staff they work for forest industries.

2. Company Contract - Government Institution

In this channel, the company sells their products according to the order to govt, institutions the
company can earn more profit from these channels.

Marketing is helpful in company planning and taking various decisions regarding business. It
helps in increasing the business profits b reducing the selling cost on the one hand and by
increasing demand of the product through advertising and sales promotion activities on the other
marketing is responsible for a company revenue generation.

FIT participated in exhibitions and make advertisement for sales promotion. The product range
and its pricing is mainly depend on the government rate. The government gives an order to the FIT
and they follow that order for fixation of price.
 Price fixation of forest industries (Travancore) Ltd., is attached with this information and also
a copy of government order too.

The main competitors of FIT are CADCO and SIDCO etc., mainly FIT has 2 consumers State
government and private members. Up to 99% FIT have government department and have also
limited private members.

MARKETING STRATEGIES OF FIT IS AS FOLLOWS;

1. Advertisement based sales:-

The forest industries Travancore Ltd., imposes product wise advertisement through press media to
get maximum sale of product. The company makes an assessment of about 2% on sales as
advertisement expenses.

2. Discount Sales:

The company offers discount sales to consumers for improving this profit. In the festival period
like Onam, Christmas and Vishu the company offer their discount sales. It provides more
satisfaction to consumer because they earn good quality products at discount rate.
3.5 PERSONAL AND ADMINISTRATION DEPARTMENT

It is one of the important function or department of management. Actually the main asset of
one organization is their manpower. We can achieve our organizational goal more easily by proper
control and coordination of each department. The management also properly understood one thing
that unity is the strength of each and every activity. In my view forest industries Travancore have
more importance to coordinating the each department in their limited facility.

The forest industries Travancore have 2 times to start their work. The plantation works are
starts 8.00 am and ends in 5.00 pm. The office time is 9.30 – 5.00 pm the shiftis not uncontained
in FIT. If there were any over works they will get OT. For every member there were 14 casual
leaves and 30 earn leaves. If they event to take any leave they will submit a leave application form
to the supervisor at one day before. They will keep an attendance register in the plant. The worker
will sign it when they came and also signed after noon intervals. If they are coming late, they will
be given only half day attendance.

If one person wants to take a casual or privilege leave they want to write the duration of leave
and they also want to specify the reason for that leave. This leave application will be signed firstly
by the applicant. Then it passes to the section head and then to the personal department. After that
it will passes to the head of the department.

And for office staff an Electronic punching is maintained for making attendance. Each staff has
their own card. When they come and go they will put the card into the matching and punch that
time, the time will recorded in that card. So the manager can identify when the staff had come and
gone. Forest industries Travancore provide holidays for the workers and staff according to the
company’s act. The act will recorded some holidays. That days and the national holidays the FIT
will not functioning.

The main functions of the personnel and administration department include the following

➢ Recruitment
➢ Interview and selection
➢ Training and development
➢ Performance appraisal
➢ Wage and salary
➢ Welfare measures
➢ Grievances handling
➢ Industrial relations
3.5 FINANCIAL DEPARTMENT

FINANCIAL ANALYSIS OF FIT

To have a very clear understanding of the profitability of a business the statements will have
to be analyzed and interpreted. Financial analysis is the process of identifying the strength and
weakness of the company with the help of accounting practices information provided by the Profit
and Loss A/c and Balance sheet. There will provide the management considerable insight in to the
levels areas of strength and weakness.

The Finance Department deals with the procurement and management of funds. This
department controls the overall financial transaction of the company. It controls the receipts and
payments of each and every activity for all the divisions. In FIT, finance department plays a major
role because in public sector only very few companies are earning profit. FIT is single unit
organization. The company is in profit for several years. The surplus money is invested in the
treasury and gets a fair rate of interest from the treasury.

The Finance Department keeps a record of everything concerning any expense or Income. They
have no interest on working capital and also no secured or unsecured loans. In most of the private
sectors achievement is always less than budget, but in the case of FIT achievement is always
greater than the budget. There is no stability in the profit of FIT. The areas under the purview of
the finance department include salary administration, bill processing, statutory payments like
taxes, central excise etc, financial administration, costing, internal audits and balance sheet
preparation, budgeting, payments and receipts, bank negotiations etc.

FUNCTIONS OF FINANCE DEPARTMENT

[Link] Of Receipts

Payment from dealers is received only through marketing department. They issue proper receipts
customer wise/dealer wise accounting is adopted. There will be a debit outstanding and it must be
informed to marketing development once in a month.

Insurance, freight outward, bank negotiation etc are accounted and maintained to arrive at the cost
of sales.
2 .Budget and budget control

The budgets are presented before the management for approval. The budget is reviewed half yearly.
If some changes are occurred they are submitted to management/board through a revised budget
for approval.

3. Auditing

l audit is mainly based on corporate functioning. The main function of this department is to ensure
that policy decisions of the management is strictly followed by the functional departments and is
verified by the internal audit.

4 .Statutory Transactions

Sales tax/income tax/tds certificates/c-forrn/form-18 etc are issued. They are properly accounted
and properly accounted and proper time settlements are made.

Salaries and other payments, remittances and recovery etc in the case of employees are done in
a time.

These are the major functions of finance department in FIT

The method employed to examine the vertical as well as horizontal Relationships of different
variables with a view to study the profitability and financial position of the business firm are called
techniques of financial analysis. These techniques of financial analysis include Ratio analysis and
trend analysis.
STRUCTURE OF FINANCE DEPARTMEN
4.1 SWOT ANALYSIS

S -STREGTH
W-WEAKNESS
O-OPPORTUNITY
T-THREATS

SWOT analysis is a strategic planning framework used to identify an organization’s

Strengths, Weaknesses, Opportunities, and Threats. Strengths and weaknesses are
internal factors, while opportunities and threats are external factors. It is a widely
used
tool for assessing current standing, identifying potential challenges, and developing
strategies to leverage advantages and minimize disadvantages.

REASON FOR USING SWOT ANALYSIS

• To analyse the overall situation of the business

• To plan strategies based on strengths and opportunities.
• To improve weaknesses before they become problems.
• To reduce risks by preparing for threats.
• To make informed decisions with a clear understanding.
4.1.1 STRENGTH

➢ Continued market leadership in the dominant industry segment.

➢ Global presence
➢ Presents qualified products inn furniture segment
➢ Dynamic, progressive and stable management
➢ Responsive to change with the changes in market condition and product profiles
➢ Product innovation and technological superiority.
➢ Natural and qualified woods are used i.e. Nilamboor Teak etc.
➢ Global quality standards and international process and system certification
➢ Strong brand in the price sensitive market

4.1.2 WEAKNESS

➢ The work orders are not consistent

➢ Household products does not have good market
➢ High price for the products
➢ The employee perks and facilities are not up to the market.

4.1.3 OPPORTUNITIES

Now a day’s people change their teats and preference according to the changes in the climate, they
use wooden product in the place of plastics and other items. The wooden industry pay an important
role in the changing condition

➢ Leadership position in the commercial furniture segment will enable the company to
leverage new and related business opportunities
➢ Growing consumers preference in wooden products may lead to growing demand
➢ Access to global sources for raw material at competitive price due to economies of scale.
4.1.4 THREATS

➢ Fluctuations in availability of raw materials

➢ Large number of competitors
➢ Government policies and intervention
➢ Emergence of quality plastic product varieties.
➢ Rise in transportation and fuel costs
➢ Economic fluctuations
5.1 FINDINGS

Conditions of work.

It is found that more than half of the employees are satisfied with the conditions of work. Few are
unsatisfied with the same.

Extend of participation possible.

It is found that more than half of the employees are neutral with the statement, only very few are
satisfied, and the rest are unsatisfied with the participation possible.

Recognition in work.

It is seen that half of the employees have a neutral opinion, only few of them are satisfied with the
same and the rest are dissatisfied.

Satisfaction with the job.

It is evident that most of the employees are satisfied with the job and only few remain neutral.

Loading of work.

Most of the employees are satisfied with loading of work, only few remain neutral and rest are
dissatisfied with the same.

Supportive supervisors.

Majority of the employees are satisfied with the supportive supervisors, few remained neutral and
rest are classified with the statement.

Management Support.

It is clear that more than three - fourth of the employees are satisfied with the management support,
but few are disagreed with the same.

Opportunities for development.

It is found that most of the employees are disagreed with the opportunities for development, but a
few are neutral.

Adequate and fair compensation.

Hardly few are satisfied with the adequate and fair compensation. More than three- fourth of the
employees are dissatisfied with the statement.

Reasonable incentives and other benefits

Hardly few are satisfied with the incentives and other benefits given to [Link] there is a mixed
opinion regarding the same.

Freedom and autonomy in the job.

It has been interpreted that most of the employees are satisfied with the freedom and autonomy
in the job. Less than half of the employee's only remain neutral.

Training opportunities available.

More than half of the employees are disagreed with the opportunities [Link] a very few
are happy with the same.

5.2 SUGESSTIONS

It was found that there were many problems and weaknesses in many of the benefits according to
the respondents. The following suggestions can be done to overcome the present situations:

➢ The employees should have faith in the management and their activities.
➢ The employees should be educated to make proper use of benefits so that they are truly
benefited from it.
➢ All the employee benefit schemes must be properly implemented on a continuous basis.
➢ The management should have HR initiatives to show that they are concerned about the
employees.
➢ The timely revision and updating of employees benefit according to the changing situation
will enhance the employee satisfaction.
➢ Employees are to be given awareness about grievance redressal forums to solve their
problems, if any.
➢ More employee motivation techniques should be applied.
➢ A periodic raise of the salary should be given to the employees.
➢ More training programs should be introduced.
6.1 CONCLUSION

From the findings we can conclude that the firm has provided all the basic
necessities to its employees, which are normally provided. It has been able to
motivate its employees to a greater extent. Employees being the backbone of the
company, it is very essential to motivate them so that they can make the best out of
their skills and abilities.

The firm has to look into the maters like salary benefits, bonus, other
motivational factors, participation in management, proper delegation of work load,
information technology training and other similar benefits. The firm must also pay
attention to the suggestion and recommendation of employees.
7.1 LEARNING EXPERIENCE

The learning experience at Forest Industries (Travancore) Ltd. (FIT) involves

exposure to the manufacturing of wooden furniture and joineries, chemical treatment
of wood, and the management of a government-owned enterprise with a focus on
public service and quality. Employees learn about traditional manufacturing methods
and how to adapt to market competition and modernization through proposed
upgrades to machinery and processes. Interns gain insights into production,
marketing, and the challenges of a competitive MSME environment, while the
company itself undergoes continuous learning for organizational improvement and
to meet growing market demands.
BIBLIOGRAPHY