CHAPTER 1 INTRODUCTION

INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE

INTRODUCTION
In an environment of the rapidly escalating competitive challenges, every company has to invest across the value chain, where feasible towards acquiring world class competitive capability in each of the businesses in its portfolio. These strategic interventions resulted in progressive transformation of traditional organisation in to internationally competitive organisation, where the focus is superior value for all stakeholders. Each business within the portfolio is continuously engaged in upgrading competitive capabilities to effectively addresses growth challenges in the fast globalising Indian markets the vision of every company is now apparently in the creation of unique business model that faster international competitiveness of not only its business but also the entire value chain of which it is a part. This has made functioning of each organisation much complex than the older days. Systematic and organised approach is indispensible to meet this challenge of complexity. It is very costly and time consuming. All these lead to the emergence of a modern organisations concept which realise on identifying and grouping the work to be perfumed, defining and delegating responsibility and authority and at last establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives.

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INDUSTRY PROFILE
Furniture is a mass noun for the movable objects which may support the human body, provide storage or held or contain smaller objects such as clothes, tools, books, and house hold goods. Furniture is a product of design and is considered and forms of decorative art. In addition to furnitures functional role it can serve a symbolic or religious purpose. Furniture is the name given all movable and immovable accessories provided for rooms or other areas of any structure for a wide range of material but wood and materials are usual what is known about furniture stretches back to the ancient Egyptian and progress with some breaks to the present day. During these long span basic forms, such as the chair, table and were evolved and passed on to the succeeding people and culture.

HISTORY OF FURNITURE
The word furniture come Frome the French word FURNITURE which means equipment. Furniture fashion has been a part of human experience since the development of non nomadic culture evidence of furniture may survive from Neolithic period and latter in antiquity in the form of painting such as the wall murals discovered at pupil l, sculptures and example have been excavated in Egypt. The history of furniture is very wide it is consisting of period start from Neolithic, Classical, Early Morden Europe, 19th century, early North A From the earliest of times, man has sought to invent things to make his life easier. And from the dawn of recorded history, man has built and used furniture. Furniture as we know it was first used in the middle-east and Mediterranean areas. The Egyptians, who to this day produce fine furniture, created some of the worlds first functional furniture. Crude by todays standards, this furniture was designed to make life easier and as such was quite successful One of the first pieces of furniture invented was a throne, after all how could a people have a king with no place for him to sit? The basic concept of a storage box, a table or chair was not difficult to design.

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Neolithic; the main evidence of this era is bare, Orkney Scotland evidence of home furnishing i.e. dresser containing shelves. Classical; early furniture has been excavated from 8th BC phoryglain evidence of home furnishing i.e. a dresser containing shelves. Early modern Europe; the furniture was usually heavy oak and ornamented with carved design the Italian renaissance in 14th and 15th made a rebirth to furniture design in 17th southern and northern Europe were popularised by different kind of furniture especially provision of vegetal and scrolling ornaments. In 18th furniture began to develop more rapidly there were some styles that belong to one nature. 19th century; it is usually defined by concurrent revival style including gothic revival style the design reforms of the late century introduced the aesthetic movement, art and craft movement. Modern furniture; after the world war there were three kinds of furniture, functionalist modern, traditional modern, commercial modern. Asian History Asian furniture has a quiet distinct history. The tradition out of India, Pakistan, Indonesia, and Japan are some of the best. But the place such as Korea Mongolia and the countries of south East Asia had their own unique facts.

FURNITURE INDUSTRY IN VARIOUS REGIONS European Union: Italy, France, Germany, and Denmark are the leading, exporting countries in the furniture industry. United States: the upholstery furniture, industry in US is fast

growing one and an important business sector.

INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE

Turkey: Turkish furnishing industry, is one of the fast growing and, potential for modernisation. Brazil: in the developing countries, the furniture, industry is a part of investment sector. Mexico: Mxico were important furniture exporting country, but now it were slow down. Russia: Russia also one of the slow running furniture industry in modern period. New Zealand: forestry resources, and expected development is future, to this sector. Office furniture, distribution in Europe is through direct sales and specialist dealers. They are two major distribution channels. Egypt: local supply is oriented towards, satisfying domestic demand. Only three percentage of production is exported.

HISTORY OF FURNITURE IN INDIA

Historically, Furniture India did not have much of an influence on India's interior design. Indians tend to sit on the floor on cushions and sleep on pads. The Muslims began to influence Furniture India around 1,000 A.D. as beds, chests and tables were introduced to the India interiors. Wood tended to be of poor quality as a material for furniture. Ivory, stone and metals were used instead. Carpets, rugs and textiles were still the dominant Indian Furniture around that time. With the growing influence from Europe, more and more furniture were being produced in India. Most of them were for export to Europe.

Engraved ebony-wood India furniture was known in South India during the 19th century. Later rosewood became popular also in that region. Walnut India furniture was famous in North India. Kashmir, sheesham furniture was known in

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the plains. Traditional wooden carvers still use simple tools following the Furniture India styles which have been passed on from generations.

FURNITURE INDUSTRY IN INDIA

Furniture industry in India has started growing in a vast manner furniture being a necessity and its need have risen to a large extend. India is populated country so that, use of furniture equipments is very higher. The furniture industry in India has started a tremendous growing in the vast manner. Furniture is being necessity its need have risen to a large extent. Furniture industries have grown in the state of Delhi, Mumbai, Kerala, UP and Tamilnadu. The furniture industry in India is very rush and competitive one. Furniture industry in India seeks more export trading. The imported woods are used by most of the Indian companies. Rose wood, teak wood, mahogany, are some Indian woods are used for furniture industry. Malaysian rose wood and African paddock also available in the Indian industry. As of 2006, the Indian furniture market was worth US$ 1358million. About 11 %( US$152million) of this (wooden furniture) is imported and imports are growing at 50 to 60 % every year. India was the largest furniture importer in the world in 2004-2005 with a 17% share in the furniture imports worldwide a total of 10478 importers shipped furniture to India during this period mainly From Italy, Germany, Spain, China, Korea, Malatya, Indonesia, Philippines and Japans. The furniture sector in India makes a marginal contribution to the Gross Domestic Products (GDP), representing about o.5% of total GDP. The major parts of the industry approximately 85%is in unorganised sector the remaining 15% comprises of large manufactures the range of region of furniture available in India, includes both residential and contract system furniture. Manufactures in India usually use a three tier selling and distribution structure, comprising of the distributer, wholesaler and retailer.

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Furniture companies must look towards the important and potentially giant Indian consumer markets, since all world leaders in deferent industrial sector have already established their production in joint venture in India. Since the furniture industry in India is at the threshold of a big boom in the next three years its time for companies to consider a serious business activity over there. Some companies have already set up their manufacturing units.

GROWTH OF FURNITURE INDUSTRY IN INDIA India is a land of wonderful and marvellous artistic work of wood. The rich handicraft and beautiful traditional attributes of art and design have established a reputation of Indian Furniture Industry in the nation and worldwide. The exceptional designs, rich, compact, and luxurious trends and, not the least, the supreme quality have given elegance to the furniture segment in the traditional as well as modern aspect. The fast emerging concept of standard lifestyle, interior designing, sense of comfort and architecture has given Furniture Industry an essential ever growing platform and thus empowering the industry to be termed as great manufacturers and exporters of grand quality furniture in terms of art, style, technology and beauty. And of course, globalization and media are also strong factors to give rise to the industry. The strongest factor for this upraise is the huge investment done by the foreign manufacturers and the credit definitely goes to versatile range of products by the industry. The Indian wooden furniture industry is generating approximately a turnover of Rs 3,500 crore annually. The market of wooden furniture solely owns the share of nearly Rs 60 crore. And as per one of the survey done recently, the industry is expected to grow by 20 percent in coming times. To conclude the vast development and growth of the industry, it can be well quoted that it has infarct become a great pride for the nation to hold a magnificent impact for its fine art and marvellous work in furniture all over the world. The future

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is with too many bright colours of growth miles and miles ahead in terms of unique furniture of all trends to occupy every thought of decorating or renovating the era for decades and decades. Three cheers for the excellent growth of Indian Furniture Industry.

INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE

OBJECTIVES OF THE STUDY

To identify overall organisation structure of TIP TOP FURNITURE Pvt. Ltd. KOTTAKKAL. To study about the origin and development of the organisation. To study about the structure and functions of deferent departments of the organisation. To know the official procedure maintained by the company. To make myself confident and active to handled the future jobs and assignments. To give valuable suggestions if there is any flaw. To identify the strength, weakness, threats and opportunities of the firm.

INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE

CHAPTER 2 PROFILE OF THE ORGANISATION

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INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE

COMPANY PROFILE
In the history of Indian and Kerala furniture industry the name

TIP TOP furniture Pvt. Ltd. is a vital one. TIP TOP furniture Pvt. Ltd. is the most personalized furniture industry in Kerala. The major market of furniture industry in Kerala is handled buy TIP TOP furniture Pvt. Ltd. TIP TOP furniture Pvt. Ltd. has grown to be, milestone in the history of Kerala and Kottakkal. An organisation which had been instrumental in projecting, the

name of Kottakkal to the face furniture business of the world is first time. In the ground of furnishings industry the name TIP TOP furniture Pvt. Ltd. is as a substitute for majestic and excellence, to one side from its sacrosanct, incomparability in the field of Ayurveda medical science. TIP TOP furniture Pvt. Ltd. is largely expertises in the field of handy crafting in the equipment. TIP

TOP furniture Pvt. Ltd. is principally, exporting their products in to provincial countries, and Arabian countries. TIP TOP furniture Pvt. Ltd. is imperial name in the Gulf countries also. TIP TOP furniture Pvt. Ltd. is a golden spike in the crown of the nation as it is a principal of its brand in Asia. Prior to screening the present of

organisation we will have an excellent esteemed prominence in previous periods also.

ORIGIN OF TIP TOPFURNITURE Pvt. Ltd. KOTTAKKAL The managing director Mr: Saidalavi started TIP TOP furniture Pvt. Ltd. in the year 1979. It is the positioned in the Kottakkal in Malappuram district in Kerala. At present it is the prevalent manufacturing industry in wood furniture on after its celebrated of, silver jubilee. They have very good demand for their products, in the spite of huge price tags also. TIP TOP equipment is the most leading furniture giant which believes in trustworthiness, and hard work. Today the company has fully fledged up to spot of headship in the sector of furniture business, in a diminutive period. It uses an amalgamation of
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improved condition of art technology, and cutting edge technology, to fabricate, exquisite wood furniture without compromise its quality. This resolute committed to superiority combined with the proficiency of 100, extremely qualified, skilled and dedicated professional has helped TIP TOP carve niche for itself in the furniture business. TIP TOP furniture Pvt. Ltd. kottakkal is private limited company, incorporated under the companies act 1956. The main object of company is to carry on the business of export, manufacturing, assembling, and dealing of wood furniture. TIP TOP furniture, having a show room at Kottakkal which is largest wooden shoe room in India it since 1979.

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INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE

COMPANY REVIEW

NAME OF THE FIRM

: TIP TOP FURNITURE.PVT.LTD

HEAD OF THE FIRM BRANCHES

: CHAGUVETTY, KOTTAKKAL :TRIVANDRUM : COCHIN : CALICUT : ERANAMKULAM : KUNNAMKULAM : KANNUR : KOTTAYAM : PERINTHALMANNA

CAPTION

: CRAFTED FOR GENERATIONS

INDUSTRIAL CATOGERY

: WOODEN FURNITURE

STATUS

: LARGE SCALE

COMMENCEMENT

: 1979

MANAGING BODY

: MANAGING DIRECTOR : BOARD OF DIRECTORS

EMPOLYEMENT

: ABOUT 600 WORKERS

MAIN MATERILAS

: ROSE WOOD, TEAK WOOD, MAHAGANI, UPHOLSTERY AND POLISHING

WORKING TIME

: 9AM TO 5.30 PM

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INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE

OBJECTIVES OF THE COMPANY To carry on business of manufacturing assembling export and import and dealing in all type of furniture handicraft. Maintaining the highest quality and be a leading manufacturer in the industry. Provide employment opportunities in the nearby area. To maintain technological leadership through continues effort to update product technology and manufacturing method. To maintain employment and safeguard the interest of labours. To exploit and utilise the plenty availability of raw material.

VISION To be the preferred furniture manufacturer with the highest user base whilst delivering world class quality at affordable prices for the masse.

MISSION To provide reliable and efficient customer-tailored products and services for the client using highly trained personal, aided by advanced technology and sound technical expertise, all the while continually striving to maintain the highest sense of ethical and moral standards.

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ORGANISATIONAL CHART

BORD OF DIRECTERS

MANAGING DIRECTERS

PERSONNE L MANAGER

MARKETIN G MANGER

ACCOUNTS MANAGER

PRODUCTIO N MANAGER

MATERIALS / PURCHASE

MANAGER

OFFICE ASST AN
CLERKS

TERRITORY
MANAGER

EXICUTIVES

SUPERVISOR

STORE
KEEPERS

OFFICE
WORKERS

SALES EXECUTIVE

CLERKS

OFFCIE

CLERKS

STAFF

FACTORY WORKERS

CARPENTE RS/LABOUR ERS

UN SKILLED LABOURS

SECURITY

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ACHIEVEMENTS
VANIJYA RATHNA AWARD of 1998-1999 by SOUTHERS VANIJYA federation. Award by CONSUMER PROTECTION CENTER (Kerala) for outstanding contribution in design and quality. To honour VANIJYA RATHNA award given POUMA SMARAKA SAMATHI. KAIRALI-A Unit of Handicraft Development Corporation of Kerala Ltd., had certified that the products manufactured by TIP TOP are maintaining hand carved. Kerala State Small Scale Industries Kottakkal wings awarded for the ideal entrepreneur 2001. Tip Top furniture Celebrated silver jubilee in the year 2007.

FUTURE PROSPECTS AND GROWTH PLAN TIP TOP FURNITURE Pvt. Ltd. Is planning to start its business in all over India and also they are planning to start in gulf countries. Their business in Kerala is reaping huge profits, So they want to establish their units in aboard and they are also planning to strengthen their export.

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PRODUCT PROFILE
TIP TOP FURNITURE.PVT.LTD has spectacular range of products that transform the house in to luxuries home. Our skilled and dedicated work forces have produced some of the best designs in the furniture segment. And thus have provided us with big reputation, in India and abroad. TIP TOP FURNITURE is one of a never ending tread mill of progress by incorporating the latest trends in the market, constantly probing its design strategy and fine turning its craft. TIP TOP FURNITURE.PVT.LTD remains committed to improving its range so that you have the latest for your home. TIP TOP FURNITURE is associated with, classic and value added design furniture created, out of superb ethnic, craftsmanship spectacular best which is acclaimed both in the domestic and international market, particularly in the Gulf market. They make their products of the best Indian teak wood and rose wood that last for generation all their products are available in different model. The especially about their furniture design is its of traditional and modern furniture exclusively made by hand.

MAJOR PRODUCTS TIP TOP FURNITURE.PVT.LTD is more concentrate on choosing the name of the product. They use modern and ancient names based upon the products. The main products as follows:SOFA: TIP TOP FURNITURE provides to you a distinctive, Elizabethan feel. Pearls of opulence that make you feel snug and comforted. Sofa is a series of drawing room furniture made of rose wood. They have a collection of more than 10 designs to suit the customers function value. The fabrics are used in different sofas are from USA and UAE. The price ranges for sofas started from 12000. Best models in market: paramount, chakra, and diamond.

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DIVAN COT:

Divan cots are beautifully shaped and expansive. It is an

extravaganza of sumptuousness. It is customised series of products provide from comfort and relaxation which is their most sought after product in Gulf countries. Price ranges start from 10000. Best models in market: Victoria, and classic. TEA POY: teapot is available in different models in wide variety range of designs. Its price range starts from 1500. Best models in market: catchy, offbeat, and apt. DINIG TABLES: Presenting a statuesque table with smooth finish to add charisma to every dining experience. The wide range of designs of dining tables made of rose wood and teak wood that maintain an optimum balance between style and comfort to use. The price range starts from 10000. Best models in market: celebration, extreme, and delight. DRESSING TABLES: A dressing table that showcases your best

features so that you can dress to impress. The price range starts from 15000 Best models in market: Venus, smart, and elegant. COTS: the cots also have many models in different designs are made to give optimum relaxation and comfort. The strength associated with cots is five times more than the normal. The price range starts from 10000. Best models in market: swasthya, Santana, and deluxe. CULERY CUP BOARD: marvel at the skill and the handicraft work of rosewood cutlery self that imbues your dining hall with grace and elegance. Price tarts from 30000. Best models in market: barman, prodigious, and roomy.

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WARDDROBE CABINET: another stellar example of craftsmanship it the best choice to keep your belongings. TIP TOP more concentrates on wardrobe with modernised design. The price starts from 80000. Best models in market: enjoy, glory, and saffron. CHAIRS: TIP Tops chairs are very durable and attractive. It gives the users very comfortable. Price starts form 3000. Best models in market: dignity, ethnic, and royal. OTHER ITEMS o STOOLS o STUDY TABLE o DOORS o PARTITION AND PANELLING o MIRRORS o T.V. STAND o KITCHEN UNIT o SIDE BOX o OFFICE AND COMPUTER TABLES o STAIRCASES o FLOWER STANDS o PHONE STANDS

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CHAPTER 3 DEPARTMENT STUDY

PRODUCTION DEPARTMENT MATERIALS DEPARTMENT MARKETING DEPARTMENT HR DEPARTMENT ACCOUNTS DEPARTMENT

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STRUCTURE OF PRODUCTION DEPARTMENT

PRODUCTION MANAGER

ASSISTANT PRODUCTION MANAGER

QUALITY CONTROLLER

SUPERVISORS

WORKERS

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PRODUCTION DEPARTMENT
Production function of a business is with citation of a product or service required to satisfy customer needs, wands and desires. All the business that sullies a product or service, it quit a belief that the activities of production system must be closely related to the customer demand as reflected in the continuous flow of orders. Production function will be considered most effective when it serves a dual purpose: 1. It must operate primarily to satisfy customer demand, particularly relating

to quality, quantity, price and above all timing of delivery as scheduled in the orders. 2. It must permit production activities to operate in an economical and

efficient manner because cost of production is a vital factor in facing the market competition and is ensuring normal profit or return on the investment.

PRODUCTION PROCESS
TIP TOP furniture Pvt. Ltd. able to keep up their brand name in the market because of its particular style of production and High quality of furniture with excellent design of the company. The production department of TIP TOP is having a vital role in the high quality of products, the production process of TIP TOP also so better than compared to other furniture manufactures. The production function carries out the following process. Sizing This is the first stage in the production function under this stage the round longs are cut in the required size by sowing. Then the pieces are planed according to their necessity and design of the product. For sizing the long rounds they are using deferent type of machineries the main machines are named Banso and Renso.

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Seasoning It is an important process of keeping the quality of products the sized timber is seasoned in this stage. It is the process of removing the moisture from the timber by passing heat and cold at a particular condition by seasoning timber will become dry and hard and the quality will be improved. There are two types of seasoning. a) Chemical seasoning b) Natural seasoning Chemical seasoning Chemical seasoning is done in low quality timbers certain chemicals are used for this purpose usually chemical seasoning is done in rubber wood due to this process it become hard and dry. Now this kind of furniture is popular in office furniture and house hold equipments. Natural seasoning Under this process timbers are seasoned purely by way of natural storing in river or open area for log days. it is subject to rain and sunshine for some days in this way all moisture is removed from the wood and it become dry. Natural seasoning is a time consuming process same time delay in executing orders, hence to speed up seasoning plans are installing wood is kept in standard size and thickness in the special plant and certain amount of stream and cold is passed through it. This may be done for a period of 6-7 days. After completing the seasoning process the wood will pass to carpentry section. Carpentry This is the main stage of production process. Carpentry section is the biggest section in this factory where more workers are required compared to other section in this stage, timber longs are checked if any defective part is there it will again send for further operation. Skilled labours have given full freedom for this work. One worker is assigned for the complete work of that particular product. So there will not be any confusion and any riper is needed he can do it easily.

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Assembling of furniture is carried out in this section if any carving work is necessary, it will be sent to craving section before assembling or after assembling as the case may be. Craving After the carpentry semi finished products will send to the craving section. If necessary all the craving on one product is done by same workers. Highly skilled labours are employed for this work under this firm craving is done by hand work. There is no machinery used for this purpose because the quality of carving by machinery will not reach carving by hand work. Polishing The next process is polishing, under the polishing department the first process is surface furnishing by applying sand paper, Secondly filling the surface by using transparent wood filter. It is used to fill up hols and small damages. Thirdly the surface is coated with sealer, each time sand paper work is repeated, and then the putty work done in all furniture by using matching colour wood. After this work polishing work is carried out. There are deferent methods for polishing. Under this polishes some are glazy and some are not glazy. After the polishing works the furniture will move to the next section that is upholstery section. Deferent polishing are; Lacquer polishing Melamine, gloss machine polish Matt polishing Ordinary wood polish

Upholstery Upholstery is not used for all kind of furniture. It is used only for in sofa, divan cot, dining chair, steel chair, etc. For upholstery work they using various types of cloths, velvet, and cotton, and they are use high quality polythene. It is the last step in the process of furniture making.

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PRODUCTION PROCESS CHART

SIZING

SEASONING

CARPENTRY

CARVING

POLISHING

UPHOLSTERY

STORE

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MACHINERIES USED FOR PRODUCTION PROCESS The various machineries used by the firm for manufacturing furniture as follows; o CHAIN SAW o BAND SAW o RR SAW o SEASONING PLANT o MINI RE SAW o LATHE o SPINDLE o ROUTER o SURFACE PLAINER o THICKNESS PLAINER o TENOTF SNF MORTISE o WIDE BEHSANDER o DRILLERS o PANEL SAW o BLOWERS o COMPRESSORS 3HP 60HP 15HP 2HP & 75HP 5HP (designing& cutting) 1HP 3HP 3HP 3HP 3HP 10HP 15HP

TREATMENT OF WASTE Under this firm, the production takes various stages. Certain amount of loss occurs in various stages of production. There is always some waste and sapwood. The wastes are sold as fire wood and dust.

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QUALITY ASSURANCE TIP TOP furniture Pvt. Ltd. Never compromise in quality assurance is their main motto; special care is taken while manufacturing furniture. Seasoned wood, excellent workers, grate furnishing are their key manufacturing or controlling quality. TIP TOP furniture Pvt. Ltd. Has maintaining the export quality. They are enjoying monopoly in high quality wooden furniture.

COST OF PRODUCTION

ITEMS TIMBERS WAGES FOR WORKERS UPHOLSTERY POLISHING MATERIALS OTHER MATERIALS

COST IN PERCENTAGE 30 20 20 10 20

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STRUCTURE OF MATERIALS DEPARTMENT

MATERIALS DEPARTMENT

MATERIAL MANAGER

PURCHASE MANAGER

WAREHOUSE SUPERVISOR

INVENTORY CONTROLLER

PROCUREMENT OFFICER

STORE KEEPER

CLERKS

PURCHASING CLERKS /ACCOUNTANT

CLERKS /ACCOUNTA NT

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MATERIALS DEPARTMENT
Material is one of the most vital factors for production and the most important part of the necessary asset in all the organisations. Materials accounts for 60% of the cost of production according to an analysis of the financial statement of large number of privet and public organisation. Material management can be defined as the function responsible for the co-ordination of planning, purchasing, moving, storing, and controlling materials in an optimum manner so as to provide pre decided services to the customer at minimum cost.

DEFERENT TYPES OF MATERIALS USED FOR PRODUCTION TIP TOP furniture manly producing the furniture items; so wood is one of the important materials they are using for production purpose; the main material for production as follows: Timber Upholstery materials Steel items Polishing materials Nails, Nuts and Bolts Packing materials Other materials

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COST FOR MATERIALS ON TOTAL MATERIAL COST

material Timber

Cost /percentage 35

Upholstery materials

25

Steel items

Polishing materials

20

Nails, Nuts and Bolts

Packing materials

Other materials

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FUNCTIONS OF MATERIAL DEPARTMENT

There are mainly four major functions of material department Purchasing of raw materials Storing of material Inventory control Issue of materials

PURCHASING Purchasing is related to the procurement or purchase of raw materials, intermediate product and suppliers in the case of the manufacturing concern and furnished products in the use of trading business. Purchase of capital equipment and other business requisites all so include in the purchase function. The overall objective of purchasing is organised and regenerate purchasing activity in such a manner that materials of the right time at right price from the right source. Purchase with in the country The materials department purchase some items of woods from the suppliers with in the country. The main sources are Nilambur, Wayanad, Kannur, etc. sometimes they will purchase the woods locally. Purchase from the out said of the country The company purchase their materials sometimes from outside India. Quality assurance is the main motto of the firm. They are using high quality of wood. The woods are mainly imported from Africa, Malaysia, Burma, Thailand, etc. The upholstery materials like velvet and other type of cloths are imported from UK, USA, and Japan etc.

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PURCHASE PROCEDURE The other departments in the organisation make their purchase requisition to the purchase department. This should send to the materials department for conforming t purchase requisition and finely purchase department will place the purchase order. Purchase requisition The purchase officer in the purchase department does not initiate any action for the purchase of materials on his own accord. For purchasing the materials the purchase department should get proper requisition letter from the concern department the letter is known as requisition letter. Floating enquires After receiving the concerned requisition letter next step is decision regarding from where materials is to be purchase, the purchase department keeps a list of the suppliers which contain the name, address and other details about the suppliers who are providing the required items of material for this firm. A number of factors are to be considered while selecting the suppliers such as reliability, financial position, quality of goods, terms of delivery, conditions of payment, etc. Enquiries made in the prescribed form are sent to deferent parties for obtaining quotation. Selection of suppliers After receiving quotation from the suppliers next step is the purchasing officer will compare different factors concerned with the materials and suppliers. While selecting the supplier the purchase department consider the following factors, manufacturing or supplying capacity, and reliability of the supplier, quality of the product management of the supplying firm, price quoted, and terms of payment terms of delivery. After selection of suppliers the purchase department will call the concerned supplier for negotiation. It includes deliberation on quality, quantity, price, time of delivery, place of delivery, mode of transportation, etc.

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Sending purchase order After choosing the supplier, the purchase department prepares order or the concerned supplier. The order is the written authorised to the supplier to supply the particular material. Timber is the main raw material for this firm the material department of the unit has regular purchase of the material like timber, polishing materials upholstery materials, etc. Receipts and inspection of materials In large concern, a separate receipt and inspection department will function for receiving and inspecting the materials under this firm the receipt and inspection of materials are done in the stores of the materials department. The functions of stores are to receive, guard and care for all the materials and to issue them on proper requisition. The mode of transportation they are using is the road transportation. When the materials arrived the head of the section is responsible for making the delivery of goods. He has to check the materials with the purchase order and he should verify everything is right.

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CHART SHOWING PURCHASE PROCEDURE

Ascertaining the requirement of materials

Exploring the source of supply

Inviting quotation

Preparing comparative statement of quotation

Sending purchase order

Follow up of purchase order

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STORING OF MATERIALS The firm is storing all the materials in their warehouses. They are having deferent warehouses for storing the materials. Under this firm the maximum stock level is maintained by the material department is one year. In the case of timber 3 month is the average stock storing period other materials like polishing and other chemical items will store for one month. To avoid problems arising due to the time lag in receiving materials, they will keep half month materials as safety stock. CLASSIFICATION OF MATERIALS For storing and retrieving materials they are classified mainly in five types, Woods, Polishing materials, Upholstery materials, Nuts and Bolts, and other items. Manly four types of wood are used for making furniture; they are red wood, rose wood, teak and mahogany. The main types of polishing materials are natural polish, Lacquer polish, semi Lacquer polish, and melamine, matt and wood polish. All these items are storing in deferent warehouses. ISSUE OF MATERIALS The store keeper issues the materials on proper authenticity to avoid miss appropriation of materials. A materials requisition serves the purpose of an authenticity to the store keeper to issue the materials; it is signed by the authorised person. When the issue pass is received by the store keeper, he will check the authenticity and verify whether it is filled and coded properly. Material issued from the store is valued under first in first out (FIFO) method. The issue orders are fed in the computer for day to day recording, all the information are preparing by using the computer. INVENTORY CONTROL Inventories have the vital role in cost of product so we have to control the inventories for reducing the cost of production. Under this firm in order to have proper control on inventories, it is practiced to fix the minimum and the maximum limits of inventory so that there should be neither over stocking of material or

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shortage of material. To fixing the level of inventories they are considering two factors. 1. The Time between purchase requisition and receiving the materials i.e.

lead time. 2. Rate of consumption during lead time.

Under this system an order of sufficient size is placed when a minimum point in inventory is reached, to bring the inventory to the maximum point. Past experience may help fixing of minimum and maximum point of inventories. One of the other methods used by the firm for inventory control is Re-ordering level or ordering level. It is a point where orders for fresh material are placed with the suppliers. The point is fixed somewhere between the maximum and minimum point. In such a way that the quantity available between the minimum level and this point is sufficient to meet the requirements of production up on the time fresh suppliers are received. For fixing the ordering level, a danger level is considered. It is a level at which normal issue of materials are stopped or made at specific instruction of purchase officer. At this point the purchase manager makes the effort to get the materials available wit in the earliest possible time. This level is below the minimum level of stock. These are the important methods used by the firm for inventory control.

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STRUCTURE OF MARKETING DEPARTMENT

MARKETING AND SALES DIRECTOR

SALES MANAGER

MARKETING MANAGER

SALES OFFICERS

MARKETING RESEARCHER

SALES MANS

MARKETING EXECUTIVES

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MARKETING AND SALES DEPARTMENT

The marketing department must act as a guide and lead the company's other departments in developing, producing, fulfilling, and servicing products or services for their customers. The marketing department typically has a better

understanding of the market and customer needs, but should not act independently of product development or customer service. Marketing should be involved, and there should be a meeting of the minds, whenever discussions are held regarding new product development or any customer-related function of the company. The Marketing Department focuses on all product and brand functions, and is generally headed by the director of marketing. Product or brand managers under the director are usually assigned to a specific brand or category of products. Sales management is the term applied to the process of distributing goods from the producer to the ultimate user. It consists of advertisement, selling, storing, transporting, financing and risk taking.

SALES DEPARTMENT The sales department is responsible for meeting the sales and volume goals as set forth by the chief marketing officer. The department is usually headed by the director of sales. The sales department works closely with the marketing department, providing vital insights and feedback on customer needs, issues, and the competition. Most of their work is external. They are charged to develop strong sustainable relationships with retailers and key clients and increase sales orders. Feedback from the sales department is critical and greatly relied upon in new product development, analyzing pricing, and identifying new channels for distribution, sales and marketing efforts. Tip top furniture is following the indoor selling system they are selling the goods to the customers who visit the showroom for purchasing furniture. Seven sales executives are working in the showroom at kottakkal for capturing the customers. In the year 1995 they started their export business in small manner,

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now they are concentrating more foreign market. Furniture supplied from Tip Top, adorn the palaces of many Sultans of Gulf as well as many VIPs of Europe, UK and USA. Tip Top has every reason to be proud of its products that are still sought avidly by many from India as well as from abroad. Such is the quality of his furniture. He thinks in terms of decades than immediate future. Today, Tip Top Furniture Mart has branches in Trivandrum and Kochi too, apart from its giant showrooms at Kottakkal, Perinthalmanna, Kozhikode, Kunnamkulam and Kannur. More over franchisees has also been given to some to deal with his trademark furniture elsewhere.

SALES AND PROFIT ANALYSIS

SALES (IN PROFIT 2003-04 CRORES) 21.83

PROFIT (IN CRORS) 4.06

2004-05

30.71

7.35

2005-06 2006-07 2007-08 2008-09 2009-10

35.71 42.91 48.05 54.32 61.42

8.93 13.16 18.9 21.9 23.2

2010-11

68.12

24.9

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sales

profit

68.12 61.42 54.32 48.05 42.91 35.71 30.71 21.83 13.16 4.06 2003-o4 7.35 8.93 18.9 21.9 23.2 24.9

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

MARKET SIZE OF TIP TOP FURNITURE TIP TOP furniture Pvt. Ltd. Market its products both in the domestic market and the international market. Majority of the products are selling in the domestic market. Home market The home market comprises of the area within the state and outside the state. The firms customers are mostly located the district of malappuram Calicut, trichur, and cannure, etc. The products are also having the demand from the southern districts of the state and other state like tamilnadu and Karnataka. The company gives most care and attention to maintain the quality and perfection of its products. Still the company is facing its problem in meeting the demand in roper time. Most of the customers are NRIs, business mans and other rich peoples in the society. The firm is planning to start its business in all over India currently they are starting Cochin, karunagapally and Bangalore.

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International market The company is having wide range of international market for its products. Nowadays the company is more concentrating in foreign market. It started exporting in the year of 1995, the main countries they are exporting is Bahrain, UAE, Dam am, Muscat, and Saudi Arabia.

ADVERTISEMENT

Advertisement is one of the main functions of sales and marketing department. It is the pivot of modern trade and commerce. Advertisement is the art of making know to the percent prospective customers the existence of service and commodities meant for sales. The TIP TOP furniture is using deferent method of advertisement. They have chosen some Medias for advertisement like news papers, magazines, periodicals, journals, printed and flex board in public places, direct mail advertisement, delivery vans, etc. They are using the modern methods like visual Medias and internet advertisement. The company is having the website; it is also a tool for the company to advertise its products it focuses the world level customers.

SALES PROMOTION ACTIVITIES Every business wants to increase the sale of goods that he deals in. He can adopt several Ways for that purpose all these are incentives offered by manufacturers or dealers to increase the sale of their goods. These incentives may be in the form of free samples, gifts, discount coupons, demonstrations, shows, contests etc. The TIP TOP furniture also using this kind of promotional tools for increasing their sale some of the important tools they are using are; premium or bonus offer, exchange schemes, price-off offer, fairs and exhibitions, scratch and win offer, money back offer, etc.

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PRICING POLICIES TIP TOP is manly looking for the high income people so the price range of the products are also higher compare to other firms. Based on the variation in the market the price level will change, the prices are changing on the basis of changes in the raw material and other items cost. They are using the cost plus pricing strategies for their products.

CUSTOMERS OF TIP TOP FURNITURE The most of the products of TIP TOP are costly products they are mainly looking for middle class and upper class people. They are producing the products for high standard people. And the company providing more services to its costumers if the customers are not satisfied with the products in the showroom, they will make the products according to customers preferences.

PRODUCT MIX OF TIP TOP FURNITURE

SOFA DIVAN COAT TEA POY DINIG TABLES DRESSING TABLES COTS CULERY CUP BOARD WARDDROBE CABINET CAHAIR FLOWER STAND STOOLS

STUDY TABLE DOORS PARTITION AND PANELLING MIRRORS T.V. STAND KITCHEN UNIT SIDE BOX OFFICE AND COMPUTER TABLES STAIRCASES

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STRUCTURE OF HUMAN RESOURCE DEPARTMENT

HUMAN RESOURCE MANAGER

RECRUITMENT OFFICER

HUMAN RESOURCE OFFICER

TRAINING AND DEVELOPMENT OFFICERS

OFFICE WORKERS

FACTORY WORKERS

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HUMAN RESOURCE DEPARTMENT

With the increase in the size of business, manpower has become the most vital factor in business. Human recourse management is a specialised branch of management that deal with the people in the organisation. Human resource is the principal asset of business or industry. People are the main subject matter of human resource management and its business to educate employees, managers, line and staff and supervisors to place high value of the dignity and work of individual human being. Human resource management is the part of total management of Tip Top furniture Pvt. Ltd., which specially deal with human resource with respect of their;

INCENTIVES AND LABOUR WELFARE ACTIVITIES.

PROMOTION AND TRANSFER

RECRUITMENT AND SELECTION

HUMAN RESOURCE DEPARTMENT

REMUNERATION AND WAGES

TRAINING AND DEVELOPMENT

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RECRUITMENT AND SELECTION Recruitment is a linking function joining together those with job to fill and seeking jobs. Recruitment makes it possible to acquire the number and type of people necessary to ensure the continued operation of the organisation. The recruitment and selection process under TIP TOP Furniture are doing in two ways internal recruitment and the external recruitment. Internal recruitment The internal recruitment is seeks applicants for positions from those who are currently employed in this organisation the main methods of internal recruitment are transfer, promotion of present employer and employee references. An employer and employee reference is the main method of recruitment. External recruitment The external recruitments under TIP TOP are advertisements, personal constancy, recommendations and labour contractors. The advertisement method is usually applied for selecting office staff and supervisors etc. Under this organisation the recruitment are mainly done through newspaper advertisement and personal constancy .the applicants are given practical tests to assess their skill and if it is satisfied they will be kept under probation for one year. After the probation period, they are permanently appointed in the factory.

SELECTION Various tools and techniques are adopted by the firm for the selection of candidates for various categories of post. Application blanks are employed for extracting the detailed bio-data of candidates. The company calls the eligible candidates for interview. Practical and written test are conducted for selection to technical post. For the post of clerical staff, written test and interview are conducted for the candidates.

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TRAINING AND DEVELOPMENT Training is the important subsystem of human resource department training is a specialised function and it is one of the fundamental operative functions for human resource department. Every organisation should provide training to all employees irrespective of their qualification, skill, and suitability for the job. Training is not something that is done once to new employees it is used every time in this organisation. Under this firm the selected candidates are given training in the specified jobs at the end of the training period the trained people must be capable of taking work as per the conditions if the employees are not able for particular work the will treated as cancelled. The training activities are conducted not only for new employees it is used continually in every well run established further, technological changes, automation, require up-dating the skill and knowledge.

REMUNERATION AND WAGES The literal meaning of reward is to counter balance. In the case of human resource department, compensation is reefed to as money and other benefits received by an employee for providing services to his employer. Compensation and reward system plays vital role in every organisation since among four Ms i.e. men, material, machine and money. Man has been most important factor it is impossible to a business imagine process without men. Under this organisation they are using deferent reward system for the employees, the workers in the factory are compensated on the basis of hourly rate, and their remuneration is RS 25 to 50 per hour. Remuneration is deciding on the basis of work, speed, accuracy. The skilled workers can get RS 450 to 600per day, the semi skilled workers can get RS 300 to 400- per day the average labourer can get RS 150 to 250- per day. All payments are paid monthly basis. Other employees in this organisation especially workers in the office and administrative, they all are working on salary basis.

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INCENTIVES

Bonus Employees who are drawing more than Rs.3500/- per mount are eligible for bonus almost all the employees working here are eligible for bonus irrespective or casual worker. Gratuity Minimum amount payment payable as gratuity is Rs.3500 Employees having continues services of the year are eligible for gratuity. Employees Insurance All the employees working here come under Employees insurances Scheme.

PROMOTION Promotion is the movement of an employee from a lower position to another position with a better pay, and responsibility. Every organization chances of promotion chances of promotion came up occasionally. Employees will consider for promotion only if they have qualification and experience in the respective field. The application received will be screened by the personnel department. Every employee promoted to a higher post will be on probation in that post for a period of one year. Four factors are considered for promoting an employee. Seniority Test/Interview Attendance Performance

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ACCOUNTS DEPARTMENT
The respect and reputation gained by an organization came from the effectiveness of its internal department. The efficiency of a department differs on the level of knowledge and skills carried out by the people working within it. Most of the departments are enumerated as the human resource department, marketing, production department and the accounting department. However, all of the departments are not given such importance because of the complexity and difficulty in understanding their functions. In most cases, the accounting department often involves criticisms because of the complexities from the external business environment and thus their roles within the organization change as well. Accounting departments are expected to perform, not only to relay all the needed financial reports and book-entering, but to also participate in making a sound decision. The shares of economics, logic, and mathematics in the accounting make the profession effective in the face of the world. TIP TOP furnitures accounts and finance department is working in the main branch at kottakal. The company is following the double entry system, the accounts section is fully computerised. The department is responsible for coordinates bookkeeping, budgeting and financial reporting. The Accounting Department is divided into two divisions. Budget Division The Budget Division prepares the draft budget and amended budget drafts for firms structural units and institutions within its jurisdiction (subjects of the general budget), guarantees the resources necessary for the firms activities and development, audits and submits a report to subjects of the general budget on the use of finances and proprietary obligations.

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Bookkeeping and Accounts Division The Bookkeeping and accounts division guarantees the acquisition of up-todate, important, objective and comparable information regarding economic and interim account reports on internal expenditure.

MAIN FUNCTIONS OF ACCOUNTS DEPARTMENT The Company maintains a clear and perfect accounting system. The main activity of the Finance Department is Working Capital Management, Preparation of Fund statement, cash Flow Statement, Balance Sheet, Profit and Loss

Account, etc are the activities of Financial Department. Secretarial work relating to Board comes under the review of the Finance Department. Most of the activities carried out by the Finance Department are pertaining to long term and short term requirements of the operation, closing purchase bill, maintaining the account of contractors, subcontractors, income tax deduction, salary discrepancy, dealing with the financial institutions with imports and exports are also the functions of the Financial Department.

To record/get recorded initial entries of all financial transactions in the initial books of record and to ensure their proper maintenance. Preparation and submission of monthly Accounts. To maintain Objection Book of Accountants. Preparation and submission of monthly progress reports of works-inprogress and targets. To reconcile the annual Accounts/March Financial Accounts. To prepare and submit the annual accounts of the firm. To control the budgets and maintain the Accounts, books of records for budgetary control. To prepare the annual budget estimates/revised estimates of the firm. To test check and internally audit the accounts. To tender financial advice to the departmental Officer.

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To maintain the Voucher Registers and all the monthly vouchers properly. To maintain and keep updated all the subsidiary books/registers of accounts like, property register, stock register, inventory register, Ledger and other related records/registers.

CASH MANAGEMENT Cash is the important current asset for the operation of the business. Firm should keep sufficient cash, neither more nor less. In this context cash management of a company is very important. At TIP TOP cash flow forecasting is done for a short term period. The adjusted net income method is used for the short term forecasting. Cash budget is prepared periodically. When the company is running on profit, it is prepared monthly. The major cash inflow and out flow at TIP TOP is through operating activities. It is giving only adequate importance to collection, since most of the sales are done on ready cash.

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PROBLEM ANALYSIS TIP TOP FURNITURE Pvt. Ltd. was started in the year 1982 and toddy they are one of the leading furniture giant which believes in loyalty and hard work. Today they are having business all over the state and country and now they started their business in international level especially in gulf countries. Today they are the growing business concern in the furniture industries. After studding about the firm one of the main problems in TIP TOP furniture, I found out is that in the human resource department. That is the company is not following the real recruitment system in the organisation. They are recruiting employees manly through reference system. That means they are recruiting the employees based on the reference from employees and management. So The Company is not getting proper young and efficient people. Another problems relating to this firm is the incentive programs. The firm is not providing proper incentive programs to its workers they are not conducting proper performance appraisal programs for rating the performance of the employees. it will affect the performance of the employees. There is also problem in companys wage and salary structure, their wage structure is less coppered to other firms so it will affect the young, well trained and experienced employees. The problems in the other area are the marketing department. The problem facing the marketing department is firm is looking manly for high income people so marketing separately for this kind of people is difficult for the organisation and another problem is in the marketing the products in international level , the firm is not able to market the products in international level properly, this area also firm have to improve.

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Chapter 4 SWOT ANALYSIS

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STRENGTHS
Increasing demand in modern, clean and minimalist designs. High quality and standard products. Large size of market within the country and all over the world. Established branding and tradition. Speciality of craftsmanship. Less number of competitors in the field of furniture exporting. Highly educated, skilled, young, capable & dynamic human resources. Well established manufacturing base. Healthy financial structure.

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WEAKNESSES
The Price ranges of products are very high and not affordable for all kind of people. Problems for designing the products based on deferments in culture and taste of customers. Unavailability of ready to use seasoned wood. Lack of international marketing skills. High cost of production due to high rate of raw material.

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OPPORTUNITIES
Big potential market in furniture Design and emerging new market segment in furniture. Increasing interiors and real estate industry in India Very little competition in modern furniture design. More efficient production method. Modernization in furniture usage and concepts. Availability of modern technology and equipment.

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THREATS Competitions from new entrants in to furniture industries. Shortage and supply of materials at proper time. Availability of low quality furniture in low price. Rising cost for materials and other equipment will increase the cost of production. Unfavourable polices from government will affect the industry.

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CHAPTER 5

FINDINGS CONCLUSION RECOMMENDATIONS

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FINDINGS
The company has been in the field of furniture in the last 32 years; so it is one of the experienced firm in the furniture industry. Quality is the main motto of the company; that is the reason customers prefer this company. The Price ranges of products are very high and it is not affordable for all kind of people. The firm is having large size of market within the country and all over the world. Highly educated, skilled, young, capable and dynamic human resources are the main asset of the firm. The firm is does not having proper international marketing skills for marketing at international level. Advertisement is the main tool used by the company for marketing its products. Majority of customers believes that the furniture they on reflect their stats.

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CONCLUSION
It was a small and humble beginning for Mr Saidalavi of Kottakkal. He just wanted to add comfort to the life of many by way of creating furniture. He began to make household furniture with legendary quality and ethnic touches on mostwanted woods from kottakkal, decades back. Soon all kinds of furniture, made in Teakwood, Rosewood, Mahogany etc. began to roll out from his small furniture store in Kottakkal to many places not only in India but abroad also. Today the firm is renowned for its high quality of products. They have very good demand for their products in spite of huge product tag. Today it is the one of the leading furniture giants which believes in loyalty and hard work. Quality is the
main motto of the company; that is the reason customers prefer this company, and the firm is having the advantage of less number of competitors in the field of furniture

exporting. And every department in the firm is controlled and managed by professional and experts in the respective fields. And the firm is more concerned for quality and customer satisfaction.

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RECOMMENDATIONS
The firm only prefers for high income people, if they are segmenting the market in to high and middle, it will give more advantages to the firm. The firm have to improve their international marketing skill; it will help them for increase sales at international level. The furniture industry in India is growing at a higher rate so the firm can make more invest in their business. The firm should use the opportunity of growing real estate and office constriction.

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BIBLIOGRAPHY
o http://www.tiptopfurnishing.com/about.html o http://www.worldfurnitureonline.com/showPage.php?template=reports&maste rPage=Market-research.html o www.economywatch.com/business-and.../furniture-industry.html o http://www.indianmirror.com/indian-industries/furniture.html

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