S. E.

S COLLEGE
SREEKANDAPURAM

PROJECT REPORT
An overall study on the Rubco Industrial Complex Valiyavelicham, Kuthuparamba.

Submitted by Arun K Anand Davis Joseph Bijesh T V Nizar K Riyas V P Sajeesh P V

Project report submitted to Kannur University, in partial fulfillment of the award of Bachelor of Business Studies. Under the guidance of Mr. Sabu, Technologist, Rubco Industrial Complex

Department of Business Studies, SES College Sreekandapuram 2004 - 2005

Declaration

We hereby declare that the project work done by us on the Rubco Industrial Complex, Valiyavelicham, Kuthuparamba; from 1.12.2004 to 21.12.2004 under the guidance and supervision of Mr.Sabu (Technologist), is an original and bonafide work done by us in requirement of the award of Bachelor of Business Studies at SES College, Sreekandapuram.

Sreekandapuram 27 December 04

Arun K Anand Davis Joseph Bijesh T V Nizar K Riyas V P Sajeesh P V

Acknowledgement

We are greatly indebted to great many people who have extended their kind help and valuable co-operation directly or indirectly in completing this project work. We thank Mr. G R Tampy, General Manager, Rubco Industrial Complex, for giving us permission for conducting the project work in this esteemed organization. We thank our project head, Mr. Sabu, Technologist, who guided and supported us during the entire period of our study. We would like to express our gratitude to Mr. Pockoo, Factory Manager, hawai chappal unit and Mr. Gopakumar, Factory Manager, cycle tyre and tube unit for their valuable support and co-operation. We express our thanks to Dr. V.P Raghavan, Principal SES College, for providing an opportunity to do our project work, Mr. M.A Cyriac, Head of Business Studies Department; and Mr. K.J Varghese, Lecturer, Business Studies Department for their kind assistance.

INTRODUCTION
3

The Kerala State Rubber Co-operative Limited (RUBCO) is a Rs.280 Crore conglomerate with well diversified operations and a market presence extending beyond the boundaries of Kerala. RUBCO has, in a short span redefined the way the cooperative sector functions and set the pace for the co-operative movement in Kerala today. It was set up in 1997 with the objective of effectively utilizing abundantly available rubber resources of Kerala. Rubco manufactures and markets a variety of products footwears, furniture, cycle tyres and tubes, mats, mattresses etc. Rubco has technological alliances with world leaders in respective fields, sourcing from them state of the art technology. Substantial investments in modern manufacturing facilities, coupled with wellorganized marketing activities, have seen Rubcos products earn a reputation for quality and significant market shares. Rubco is the largest exporter of natural rubber in the country today. Even in the domestic market, Rubco is a major supplier of natural rubber to all leading tyre companies in India. Rubco is also a Government intervention agency towards market stabilization and has been serving the farming community directly and indirectly to get reasonable price, arresting drastic fall in price during peak production periods. Rubcos policy in natural rubber trading has

been a harmonious blend of social obligation and commercial practicability. Led by a professional management team and ably supported by a committed workforce, Rubco is now poised to enter a high growth phase, with several new initiatives that will take the group on a path of expansion and diversification. Rubco hopes to create opportunities and bring industrial progress to a land that accounts for 92% of the countrys rubber production. In the process, Rubco also aims to achieve its vision of turning into a multifaceted, globally competitive organization, excelling in its every sphere of activity.

OBJECTIVES OF THE PROJECT WORK 1. To know about the management of Rubco Group of Undertakings. 2. To know about the administration and management of Rubcos Hawai chappal unit and Cycle tyre and tubes unit. 3. To know about the production processes being carried out in the hawai chappal unit and cycle tyres & tubes unit. 4. To know about the personnel policies of the hawai chappal unit and cycle tyres & tubes unit 5. To know about the marketing strategies of Rubco.

Period of study 01 December 2004 - 21 December 2004

SOURCES OF DATA The data collected were from both primary and secondary sources. The primary data were collected through pre-tested interview schedules and the secondary data were colleted from both published and unpublished materials.

LIMITATIONS OF STUDY A detailed study could not be made due to time constraints. A comparative study with a similar concern was not made. The study is based on both primary and secondary data.

TABLE OF CONTENTS
Company profile About Rubco Promoters Byelaws Board of Directors Rubco Group of Undertakings Product Profile Rubco Industrial Complex Production Process cycle tyre Production Process cycle tube Production Process hawai chappal Quality Control Quality objectives Qualtity policy Inspection Quality Control Chart Marketing Department Distribution channels Competitors Personnel and administration department Functions Number of workers Number of staff Wages Welfare Leave Shift timings Recruitment Finance / Accounts department Conclusion 9 10 11 11 12 15 16 20 24 28 31 36 36 36 37 38 39 40 40 41 42 42 43 43 44 44 44 45 46 48

CHARTS AND DIAGRAMS

Organisation Chart Kerala State Rubber Co-operative Ltd Organisation Chart Rubco Group of Undertakings Organisation Structure Cycle tyres and tubes manufacturing unit Organisation Structure Hawai chappal manufacturing unit Process diagram Cycle tyre manufacturing Process diagram Cycle tube manufacturing Plant layout Cycle tyres and tubes factory Process diagram Hawai chappal manufacturing Quality Control Chart Organisaion Structure Marketing department Organisaion Structure Personnel Department

13 14 22 23 27 29 30 35 38 39 11

COMPANY PROFILE

Name of the company Registered office

Kerala State Rubber Co-operative Limited. KVR Tower, 4th floor South Bazar, Kannur, 670 002 Kerala, INDIA. 04972 709747 04972 711134 04972 701908 04972 711376 - 378 04972 711030 info@rubcogroup.com www.rubcogroup.com Keral State Co-operative Bank Syndicate Bank Federal Bank

Telephone

Fax E -mail Website Bankers

Auditors

M/s Varma & Varma Chartered Accountants, Cochin

ABOUT RUBCO

The Kerala State Rubber Co-operative Limited, popularly known as Rubco, is a well-diversified industrial conglomerate with a strong presence in the Rubber based industrial segment. Rubco was formed with the prime objective of utilizing the abundant rubber resources of Kerala. In a short span of time, Rubco has successfully introduced a wide range of fast moving rubber based products achieving a turnover of Rs. 100 crores. The divisions operating under Rubco Group are involved in a wide range of business such as footwear, furniture, cycle tyre and tube, rubberized coir mattresses and natural rubber. Many new initiatives are on the anvil in line with Rubcos vision of turning into a multi-faceted, globally competitive organization. Rubco came into being on 9th June 1997, with a view to augment the commercial utilization of natural rubber and to ensure a reasonable price to rubber growers and also to share value addition with them. The objectives of Rubco are To ensure a steady market for rubber with remunerative price to rubber growers. Welfare of rubber growers particularly of small and marginal segment.

10

 To promote, establish, maintain and manage the business related to manufacture and sale of tyres, both radial and bias for heavy vehicles, LCV, passenger cars and other four wheelers. Tyres for two-wheelers and three-wheelers. Purchase of rubber in any form such as latex, sheets, crumbs, and laces. Manufacturing of rubber and rubber wood based products

PROMOTERS The Government of Kerala along with Indian Rubber Board and some District & Primary Co-operative banks in Kerala are the promoters of Rubco. The Government of Kerala holds the majority of shares. The top ten shareholders are - The Government of Kerala, Rubber Board, Kottayam District Co-operative Bank, Palakkad District Cooperative Bank, Ernakulam District Co-operative Bank, Kozhikode District Co-operative Bank, Kannur District Co-operative Bank, Thrissur District Co-operative Bank, Thiruvananthapuram District Co-operative Bank and Kollam District Co-operative Bank.

BYELAWS Rubco is governed by the Byelaws that cover the entire state of Kerala. However, there is no restriction on the area of operation as far as sales and marketing of products manufactured / dealt in by Rubco is concerned. As per the byelaws, the main social objects interlaid include

11

further rubber cultivation in the state to accelerate the industrial growth and strengthen the co-operative movement.

BOARD OF DIRECTORS

The administration and management of the co-operative vests in the board of directors consisting of fifteen members as follows. Nine directors elected by A class shareholders from among themselves. Two directors elected by B class shareholders among themselves. Four ex-officio directors viz Registrar of Co-operative societies Chairman, The Indian Rubber Board President, Kerala State Co-operative Bank Ltd. Managing Director, Rubco

Mr. E. Narayanan is the Chairman of Rubco. He is a veteran co-operator and is holding various positions as Chairman in Central and State legislative assemblies. Mr. Jacob D Mathew is the Managing Director of Rubco. He has more than twenty-five years of experience as CEO in corporate sector.

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ORGANISATION CHART Kerala State Rubber Co-operative Limited (Head Office) Board of Directors Managing Director

Trading Wing Factories Finance Manager Administrative Manager DYM (EDP) Accountant Internal Auditor Project Manager

Stenographer

Clerks

Clerks

Receptionist cum telephone operator

Typist/clerk

Clerks Drivers

Attenders

13

ORGANISATION CHART Rubco group of undertakings

14

Kerala State Rubber Co-operative Limited

Rubco Huat Woods Pvt. Limited

Rubco Sales International Limited

Rubco Sreekandapuram Latex Pvt. Limited

Rubco Tyres India Pvt. Limited

Casual Shoe Manufacturing Unit

Hawai Chappal Manufacturing Unit

Cycle Tyre and Tube Manufacturing Unit

Tread Rubber Manufacturing Unit

Rubberized Coir Mattress Unit

Natural rubber Trading

15

16

RUBCO GROUP OF UNDERTAKINGS Rubcos conglomerate comprises of Rubco Huat Woods Pvt. Limited Kerala State Rubber Co-operative Limited Rubco Hawai Chappal Unit Rubco Cycle Tyres and Tubes unit Rubco Mattresses Division Natural Rubber Trading Division

Rubco Sales International Limited Rubco Sreekandapuram Latex Limited Rubco Tyres India Private Limited

RUBCO HUAT WOODS PRIVATE LIMITED Rubco Huat Woods Private limited is a joint venture with Long Huat Group Berhad of Malaysia, a world leader in rubber wood furniture. This division manufactures a range of furniture and edge glued panels using the eco-friendly rubber wood. This plant has a processing capacity of 40000 metric tones per year. The products are exported to UK, USA, Japan and many other countries.

RUBCO HAWAI CHAPPAL UNIT Rubcos Hawai chappal unit manufactures a range of quality casual rubber footwear. The plant was built in technical collaboration with

17

M.s Hitesh Settas, SDN, BHD, Malaysia. This unit manufactures both conventional and ultra lightweight models. The plant has a production capacity of 3.6 million pairs per annum.

RUBCO CYCLE TYRES AND TUBES UNIT This plant has been set up exclusively to manufacture Bicycle Tyres and Tubes at the most economical cost with no compromise on quality. The plant is equipped with imported machinery from UK and Taiwan and has an annual production capacity of 3 million tyres and tubes per annum.

RUBCO MATTRESS DIVISION Rubcos rubberized coir mattress division is a project with an investment of Rs. 2.6million. The manufacturing plant is among the very few in the country to employ advanced Austrian machinery from DOA, Austria, a technology leader in rubberized mattresses. The plant has an annual installed capacity of 4.8 million units.

NATURAL RUBBER TRADING DIVISION Rubcos Natural Rubber Trading division was started with its head quarters at Cochin, exclusively for the procurement, marketing, distribution and export of Natural Rubber.

RUBCO SALES INTERNATIONAL LIMITED

18

Rubco Sales International Limited, (RSIL) is a public limited company promoted by Rubco to spearhead the sales and marketing activities for Rubcos entire range of products in the domestic and international markets. The Company is run by eminent professionals with the active support from the management. The company has already well established Dealer/Distributor network and it is expanding its horizon throughout the world.

RUBCO SREEKANDAPURAM LATEX PRIVATE LIMITED Rubco Sreekandapuram Latex Pvt. Limited became part of the Rubco group, when a loss-making unit was taken over by Rubco by acquiring 65% of its shares. The company manufactures block rubber (ISNR), and pale latex crepe (PLC).

RUBCO TYRES INDIA PRIVATE LIMITED Rubco Tyres India Ltd is a company promoted by Rubco for manufacturing tyres and tubes for two wheelers, passenger cars, and trucks in a phased manner. This division will be launched in the near future. It will have a production capacity of 6 million tyres and tubes annually.

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PRODUCT PROFILE
The Rubco cycle tyres and tubes unit manufactures different types of tyres and tubes with distinguished characteristics. The different models of tyres and the sizes in which they are available are given below Model Estrella Diamond Arjun Chakra Cross Track N. Diamond Liberty Road Master Toofan Bullet Sizes 26 x 1.95 26 x 1-3/8 26 x 2.175 28 x 1 26 x 1-3/8 26 x 1.95 28 X 1 28 x 1 26 x 1-3/8 28 x 1 28 x 1 26 x 1

The various models of chappals manufactured by the hawai chappal unit are Rubco Powergrip Rubco Rainbow ( Lightweight) Rubco Plus Rubco Rani Rubco Economy Rubco Super

20

The chappals are also available in various sizes for gents, ladies, boys and kids. Gents 7 to 10 Ladies 4 to 6 Boys 1 to 3 Kids 11 to 13

21

RUBCO INDUSTRIAL COMPLEX, VALIYAVELICHAM

The Rubco Industrial Complex (RIC) is located at the

Industrial Growth Centre, Valiyavelicham, about 35 kilometers from Kannur City. The industrial complex covers 50 acres of land leased from Kerala State Industrial Development Corporation (KSIDC). The Cycle Tyre and Tubes unit and the Hawai Chappal unit are operating here. The Rubco Cycle Tyres and Tubes manufacturing unit started production in March 2001. The plant, which was set up exclusively to manufacture bicycle tyres and tubes at the most economical cost, is equipped with the most modern machinery and employs the latest technology. The plants centralized mixing facility includes F270 Banbury from Farrell Ltd, UK and computerized auto feed system from Chronos Richardson, UK. The plant also has a combination of heavy duty 84 inch mixing mills with AC and DC drives for continuous operation and an automatic batch-off unit for uniform cooling facility. This unit has a production capacity of 3 million tyres and tubes per annum.

Advanced features of Rubco tyres and tubes. More rubber on tyres, more life Blend of natural and synthetic rubber More mileage and puncture resistant PPD anti flexing, anti degradents for flexibility Special tread patterns for wet skid resistance

22

 Taiwan made CNC mould for better finish Multi-strand, high tensile copper coated steel bead wires.

The Hawai Chappal unit started production on 26th May 1999. This unit produces both conventional and ultra lightweight models, which are manufactured under the renowned Malaysian Technology. The plant covers an area of 20000 square feet and is equipped with advanced machines like Inter Mix Kneaders, Multicolor laminating line, Quick opening hydraulic press and Automatic chappal assembling unit.

Advanced features of Rubco Hawai chappals Uses renowned Malaysian technology Durable flexi-strap Soft insoles PowerGrip technology Perfect blend of raw material Varied range of colours

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ORGANISATION STRUCTURE OF CYCLE TYRES AND TUBES MANUFACTURING UNIT

GENERAL MANAGER (RIC) FACTORY MANAGER

TECHNOLOGIST ACCOUNTANT CHEMIST CLERK / STOREKEEPER TYPIST DRIVER ATTENDERS/PEON S LAB ASSISTANT BOILER OPERATOR

STAFF IN CHARGE

PRODUCTON SUPERVISOR ELECTRICIAN/ TECHNICIAN

SKILLED WORKERS SEMISKILLED WORKERS UNSKILLED WORKERS

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ORGANIZATION STRUCTURE OF HAWAI CHAPPAL MANUFACTURING UNIT

GENERAL MANAGER (RIC)

FACTORY MANAGER

ACCOUNTANT

PRODUCTION SUPERVISORS

TECHNOLOGIST

STOREKEEPE R

CHEMIST CLERK CUM TYPIST ELECTRICIAN / TECHNICIAN DRIVER SKILLED WORKERS SEMI SKILLED WORKERS UNSKILLED WORKERS

LAB ASSISTANT.

ATTENDER

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PRODUCTION PROCESS CYCLE TYRE

The major raw materials used in the manufacturing of tyre are natural rubber, clay, bead wire, cotton thread, chemicals like carbon black, calcium carbonate, MBTS, TMTD etc. The tyre manufacturing process starts with mixing.

Mixing Mixing is the process of mixing the raw materials. The mixing process is done in two stages, master mixing and final mixing. The master mixing process involves the mixing of rubber, clay and carbon to form the masticated rubber. Only natural rubber is used for

manufacturing cycle tyres. Carbon black is added to get the black color. Final mixing involves the mixing of the chemicals like sulphur, zinc oxide, PCC etc to the masticated compound.

Profile calendering This is the process of building the tread portion of the tyre. Tread is that portion of the tyre which comes into contact with the road. The width of the tread varies according to the different types of tyres. The tread is then passed to the monoband machine. The machine used for this process is called profile calendaring machine.

26

Creel calendering Creel calendaring is the process of stitching the thread with the compound to form the ply. The two types of threads used for this process are nylon and cotton. The machine used for this purpose is called creel calendar.

Bead wire wrapping The copper-coated steel wire is called bead wire. This wire is dipped in the rubber solution. After dipping, it is dried in open air. The bead wire is wrapped with cotton fabric and is then passed to the monoband machine

Tyre building The ply is wrapped around two bead wires in the monoband machine. In this process the tread is attached to the wrapped ply. This process is called green tyre building.

Air bag insertion In this process an airbag is inserted in the tyre. This is done to attain the circular shape of the tyre.

Tyre moulding

27

After inserting the airbag, the tyre is passed to the hydraulic press for moulding. The tread design is created in this process. While moulding three factors are taken into consideration temperature, time and pressure.

Tyre inspection The tyres are then inspected for any defects. This process is done manually. If there is any defect, the tyre is treated as waste. After inspection it is send to the packing section.

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PROCESS DIAGRAM CYCLE TYRE MANUFACTURING

INSPECTED BEADWIRES

PREPARATION OF RUBBER SOLUTION

BEAD DIPPING

DRYING IN OPEN AIR FINAL COMPOUND CREEL CALENDERING BEAD WRAPPING

FINAL COMPOUND

PROFILE CALENDERING

TREAD

GREEN TYRE BUILDING

FINAL COMPOUND

CORDS IN CREEL CALENDER

PLY

STORAGE

TYRE PACKING

TYRE INSPECTION

TYRE MOULDING

AIRBAG INSERTION

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PRODUCTION PROCESS CYCLE TUBE

The first process in the cycle tube production is mixing. After mixing the compound is passed to the straining machine. Straining is done to eliminate the waste materials and stones from the compound. After straining, the compound is sent to mixing mill for the final mixing. The final compound is then sent or the extrusion process. This is the process where the tube shape is formed. Chalk powder is sprayed inside the tube to avoid the walls of the tube sticking together. The next process is depowdering removing the chalk powder inside the tube. After this the tube is cut in the required length and is sent to the splicing machine. It is the process of joining the two edges of the tube. The splicing machine uses a finger-joint type technology. After splicing the hole for the valve is cut. This process is called valve hole punching. The valve is then fixed onto the tube. This is done by pressing the valve portion with the tube. The next process is moulding of the tube. Moulding is done in hydraulic presses. After moulding the nut is fitted onto the valve. It contains four parts - rim nut, top nut, plug and dust cap. These parts are bought from outside. The tubes are then teted for any defects. Firstly it is inflated if any defect is found it is sent for water testing. The good tubes are washed to get the shining. The tubes are kept for drying and after this they are packed and sent to the store.

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PROCESS DIAGRAM CYCLE TUBE MANUFACTURING

STRAININ G

FINAL MIXING

EXTRUSI ON

SIZE CUTTING

SPLICING

1 MASTER BATCH WARMING 1.1

MOULDIN G INSPECTED VALVES

2
PAINT PREPARATION

3
PAINT PREPARATION

VALVE BASE PAINTING

7.1

8.1 1
PRE SHAPING

8.2

8.3
VALVE FIXING HOLE AREA PAINTING
NOT OK

10

VALVE HOLE PUNCHING

NOT OK

WATER TESTING

REPAIRING

21

22

INSPECTIO N

11

NUT FITTING

12

INFLATIO N

13

OK

OK
DEFLATIO N SCREEN PRINTING

14

15

STORES

PACKING

FOLDING

DRYING

WASHING

20

19

18

17

16

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PLANT LAYOUT CYCLE TYRE AND TUBE FACTORY

TA B TOILET BEADWI RE DIPPING TA B A B B LW TYRE CURING PROCESS
TBM TBM TBM

DRESSING ROOM

M M

M M C R E E L M M P C P C C A L E N D A R

TBM

M M

TBM

MB

S T M S T M

M M

T C M

MB

T C M

MB SM SM

M M

T A B L E

BW

BW BW BW BW

E X T R U D E R

M M

LATHE

DRILLING MACHINE

T A B L E

BW

M M

S S

BW BW

STRAINER

MM PC TBM ABB TCM MB

MIXING MILL PROFILE CALENDAR TYRE BUILDING MACHINE AIR BAG BUILDING TYRE CURING MACHINE MONOBAND

S BW SM

- SPLICING - BEADWIRE WRAPPING - SPOOLING MACHINE

PACKAGING AND STORE STORE

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PRODUCTION PROCESS HAWAI CHAPPAL

The major raw materials used for manufacturing chappals are natural rubber, synthetic rubber, chemicals like zinc oxide, stearic acid, silica, titanium dioxide etc. The main processes in the manufacturing process are discussed below.

Mastication Mastication is the process of mixing natural rubber with the synthetic rubber and the colors to form the masticated rubber. The machine used for the mastication process is called as kneader.

Master batch mixing Master batch mixing is the process of adding chemicals and filler to the masticated rubber. The output of this process is called a master compound. This compound is then kept for 24 hours ageing.

Final mixing The final mixing is done in the mixing mill. The final chemicals are added to the master compound. Chemicals like sulphur, stearic acid, BMPT etc are added during this process.

Blank preparaton

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This is the process of converting the master compound to sheets of particular length and width.

Sheet moulding In the moulding process the blank sheets are pressed for nearly 7 minutes at 210 kg pressure and at 180 C temperature. Hydraulic presses are used for this purpose. Thermic fluid heater is used to generate heat in these presses. This process produces sheets with the designs (sole and insole) moulded on it.

Post curing After pressing, the moulded sheets are kept for 20 days post curing. This is done because rubber expands when it is heated and contracts when it becomes cool.

Cutting After 20 days post curing, the sheets are cut into the required shapes and sizes of chappals. The machine used for this purpose is called cutting press.

Drilling In this process holes are drilled on the chappal for fitting the straps.

Strap fitting

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After drilling the holes, the next process is fitting the strap. The strap fitting machine is used for this purpose. The strap is made of natural rubber for getting more flexibility.

Inspection and cleaning The chappals are inspected and cleaned. The defected chappals are rejected.

Sticker application Stickers are applied on the chappal in this process. The stickers contain the size, model name etc.

Packing After applying the stickers the chappals are packed in cardboard boxes and are the send to the store.

STRAP MANUFACTURING The strap manufacturing processes involves the following processes 1. Master batch mixing Strap uses only natural rubber. The natural rubber, chemicals and other ingredients are added to form the master compound. 2. Ageing for 24 hours 3. Final mixing - In this process the final chemicals are added to the master compound. The output will be in the form of sheets.

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4. Moulding The sheets are pressed at high temperature and pressure to form straps. Hydraulic presses are used for moulding straps. 5. Trimming The moulded sheets are then trimmed to form the finished strap. These straps are sent to the strap fitting machine for assembling.

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PROCESS DIAGRAM HAWAI CHAPPAL MANUFACTURING

Natural rubber Natural rubber / Synthetic rubber

Colors Masticatio n

Master batch mixing Masticated Rubber Ingredients Master batch mixing Natural rubber Ingredients Ageing

Ageing 24 hours

Final Mixing

Blank preparatio n

Moulding

Post Final Mixing Curing Store

Cutting Moulding Drilling Finished Strap Strap fitting

Packing

Sticker applicatio n Inspection & cleaning

Trimming

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QUALITY CONTROL
The Rubco Industrial Complex has a separate quality control section with Computerized REHO meters, Poly Visco Meters, Universal Tensile Testers, Compression set Apparatus, Flexometers, Abrasion testers etc. This section ensures the quality parameters of all incoming raw materials, in-process materials and finished goods.

Rubcos Quality Objectives High capacity utilization Enhancing competence of employees High level of profitability Low level of rejection High yield from input materials Low level breakdowns Least possible customer complaints

Rubcos Quality policy Rubcos quality policy is to give enhanced satisfaction to their customers through the manufacture and supply of rubber products by the use of modern manufacturing facilities. They voluntarily meet the entire product and process related regulatory requirements. The employees at Rubco are committed to continuously improve their performance in all spheres of activities.

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Inspection The act of determining conformance or non-conformance of the expected performance is the function of inspection. In other words by inspection a manager seeks to determine the acceptability or nonacceptability of the product or a part of it. The basis for inspection is usually a certain specification which is called inspection standard. Inspection is made by comparing the quality of the product to the standard. At Rubco, the inspection standard for every product and process is pre-determined. Based on these standards, inspection is carried at all the stages of production. Incoming inspection (Raw materials) Inprocess inspection (Work-in-Process) Final inspection (Finished Product)

Quality Control Chart

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Inputs

Conversion

Output

Raw materials parts and supplies Acceptance tests

Production processes

Finished products

Control Chart

Acceptance tests

Quality of inputs

Quality of work-inprocess

Quality of output

The above chart shows the stages at which the inspection is done, what is inspected, type of inspection done and what attribute is being inspected.

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MARKETING
The Rubco Industrial Complex does not have a separate department for marketing its products. Rubco Sales International Limited (RSIL) markets the entire range of products manufactured by Rubco. The RSIL formulates the marketing strategies for both domestic and international markets. The RSIL adopts full cost pricing strategy to the products that are marketed by them. Organisation structure of the marketing department
Board of Directors

Managing director

General Manager

Marketing Manager Furniture and Panel Board

Marketing Manager Footwear and Cycle tyre

Marketing Manager Rubberised Coir Matresses

Kerala

Outside State

Sale officer

Area sales manager

Sales Executive

Sales Executive

Distribution channels

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Rubco Factory

Distributors

Retailers

Retailers

Consumers

Competitors Rubco tyres and tubes face competition from companies like Ralson, Metro, etc. In the Hawai chappal market, the main competitors are Lunars, Paragon, Veekesy etc.

Advertisement and sales promotion Rubco has advertisements for its products in all leading Medias. Unlike the earlier strategies, Rubco tries to establish a strong relationship with distributors, wholesalers, retailers and sales executives.

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PERSONNEL AND ADMINISTRATION DEPARTMENT

The personnel and administration department of Rubco is headed by an Administrative Manager. He is responsible for the recruitment, training, human resource management etc. and

administrative activities such as general administration, convening board meetings and other meetings, correspondence with Government and Non-Government organizations etc. Rubco is trying to identify, train and develop competent personnel with the growth potential and to provide a better environment for high level of performance.

Organization structure of the Personnel Department

Administrative Manager

Stenographers

Receptionist cum telephone operator

Typist/Clerk

Clerks

Drivers Attenders

43

Functions The functions of personnel department are as given below 1. Recruitment and selection of employees 2. Training of Employees 3. Evaluating employees performance through performance appraisal 4. Motivating the employees to get best result 5. Preparation of personnel records like Employment record, Training Records, Remuneration Records, Health and Safety Records etc 6. Taking decisions on employees wage payment system, transfer, retirement and promotion

Number of workers The Rubco cycle tyre and tube unit employs 198 workers. The

workers fall in two categories skilled and unskilled. Among them 30 are skilled workers and 168 are unskilled. The Hawai chappal unit has 106 workers who fall into three categories skilled, semiskilled and unskilled. 19 workers are skilled, 37 are semiskilled and 50 are unskilled.

Number of staff

44

Hawai Chappal Unit

Cycle Tyre and Tube Unit

Production Supervisor Factory Manager Accountant Storekeeper Clerk Electrician Boiler operator

4 1 1 1 2 2 2

6 1 1 1 2 2 2

Wages The wages are fixed on the basis of the Minimum Wages Act. The workers earn wages fixed on this basis plus DA and additional allowances like service weightage. The DA is calculated based on the Consumer Index Price. If a worker has 270 days attendance in one year, he is provided service weightage. For a skilled worker it is Rs.3 per day and for an unskilled worker it is Rs. 2 per day.

Wages - Cycle tyre and tube unit Skilled workers Rs. 95/day + DA Unskilled workers Rs. 85 /day + DA

Wages - Hawai Chappal unit Skilled workers Rs. 98/ day + DA Semi-skilled workers Rs. 92.50 /day + DA Unskilled workers Rs. 85 /day + DA

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Welfare The workers are also entitled to many other benefits like ESI, PF, festival allowances, uniform allowance, canteen, free transportation, Shift rooms etc. To the ESI company contributes 4.75% and the workers contribute 1.75%. To the PF both workers and the company contribute 12% of the salary. The workers also get a night shift allowance Rs.10 for the 4.30 12.30 shift and Rs. 15 for the 12.30 8.30 shift. A shift room is also provided by the company for the night shift workers.

Leave 240 days attendance 12 days National Holidays Earned leave Half pay leave - 13 days - 1day per 11 days (33 days per year) - 20 days (ESI Persons)

Shift timings The production is done in three shifts of eight hours each. Production starts on Monday and ends on Saturday. The shift timings are as follows 1st shift 8.00AM 4.30 PM 2nd shift 4.30 PM 12.30 AM 3rd shift 12.30 AM 8.00 AM

Recruitment

46

Recruitment is done as per the Kerala Service Rules. Vacancies are advertised in newspapers. Interviews are conducted to select the prospective applicants. The workers are given 6 months training.

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FINANCE / ACCOUNTS DEPARTMENT

The finance department of Rubco is headed by the inance Manager. The finance manager is a Chartered Accountant from ICAI. The organization chart of the Finance department is given below.

Finance Manager

Accountant

Internal Auditor

The Rubco Industrial Complex is a Rs.4.38 Crore project. The capital is raised from various sources. Rs. 2.50 crores was raised as loan from the National Co-operative Development Corporation (NCDC). The balance was raised from the member societies and co-operative banks. There is asales tax exemption on the products for five years. Additional investment of Rs.31 lakhs was made in 2000-2001, Rs.6 lakhs in 2002 and Rs. 3 lakhs in 2003.

Production for previous years

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Cycle tyres (in numbers) 2001 - 2002 2002 2003 2003 - 2004 492295 617175 688960

Cycle tubes (in numbers) 2001 - 2002 2002 2003 2003 - 2004 429760 863260 508787

Hawai Chappals (pairs) 2001 - 2002 2002 2003 2003 - 2004 1119824 1247549 1667194

Depreciation Depreciation is the gradual decrease in the value of an asset due to any cause. It is the permanent and continuing diminution in the value of an asset. Depreciation is calculated based on fixed installment system as per the Co-operative Societies Act.

CONCLUSION
Rubco has redefined the way in which the co-operative sector functions. Rubcos products have earned a reputation for quality and significant market shares. Rubco is lead by a group of energetic

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professionals as compared to other co-operative societies in the state. Rubco is the largest exporter of natural rubber in the country today. Rubcos policy in natural rubber trading has been a harmonious blend of social obligation and commercial practicability. Within a few years Rubco has grown into a 300 crore conglomerate in the field of rubber and rubber related products. Now under Rubco there are about four associated companies and another four units directly under the co-operative. Rubco is committed to harness the latest technology in rubber processing and continuously upgrading its processes and

machinery. Due to the high quality maintained, the company found ready market for their products both in India and abroad. Rubcos production facilities at the Rubco Industrial Complex are equipped with the most modern machinery, which produces quality output. Their quality policy is to give enhanced satisfaction to their customers through the manufacture and supply of rubber products by the use of modern manufacturing facilities. Rubco indisputably has a bright future in the field of rubber and rubber related products.

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