A

PROJECT REPORT
ON
GREENPANEL INDUSTRIES
LTD

Name: Gagandeep Singh

Class: BBA (5th Semester)
Ku Enrollment: 19106643
Roll No:190835250005
Email: mr.gagandeep2000@gmail.com
Submitted To: Miss. Shweta Mishra

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 DECLARATION

I hereby declare that this project report entitled industrial training entitled “A study on

functional areas of “GREENPANEL LTD” submitted to department of Business

Management, SURAJMAL in partial fulfillment of the requirement for the award of the degree

of BACHELOR OF BUSINESS ADMINISTRATION is an original work done by me during

the period of my study at the college under the supervision and guidance of Mrs. SHWETA

MISHRA Department of business management SURAJMAL.

I Further declare that the work reported in this project has not been submitted and will not be

submitted either, in part or full for the award of any other degree in this institute or any other.

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 ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind

support and help of many individuals. I would like to extend my sincere thanks to all of

them. It has been great honour and privilege to undergo training at GREEN PANEL

INDUTRIES LTD.

I am highly indebted to Mr. KAMALJEET SINGH (AM and HR Head) for their guidance and

constant supervision as well as for providing necessary information regarding the project and

also for their support in completing the project. His constant guidance and willingness to share

his vast knowledge made us understand this project and its manifestations in great depths ad

helped us to complete the assigned tasks on time.

I would like to express my gratitude towards my parents and members of all the department for

their kind cooperation and encouragement which help me in completion of this project.

My thanks and appreciations also go to my colleagues in developing the project and people who

have willingly helped me out with their abilities.

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 ORGANIZATION STRUCTURE

Managing Director

Executive Director
HD/PFP/PCPB
GM
(administration) GM (production)
Store/P&A

Company Secretary
Chief Accountant officer Electrical

Technical Manager
Development Manager

Marketing Head
Works Manager Plywood, Flush door, Block board

Central Excise
Plant Manager

Densified Wood Products

Sales Manager
DWD

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 CONTENTS

CHAPTER-1

 EXECUTIVE SUMMARY
 OBJECTIVE
 INTRODUCTION
 INDUSTRY AND COMPANY PROFILE

CHAPTER-2

 MEANING OF RESEARCH
 OBJECTIVE OF RESEARCH
 TYPE OF RESEARCH
 RESEARCH DESIGN
 SAMPLING DESIGN
 METHODS OF DATA COLLECTION
 ANALYSIS TOOLS

CHAPTER -3

 MEANING OF JOB SATISFACTION

 HISTORY
 IMPORTANCE
 DEFINTION
 FACTORS

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 CHAPTER -4

 DATA INTERPRETATION
 ANALYSIS OF DATA
 TABLES & CHARTS

CHAPTER -5

 FINDINGS
 CONCLUSION
 RECOMMENDATION

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CHAPTER -1

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 EXECUTIVE SUMMARY

After going thick on the thing, now time is to make a complete picture, while making a product
a SKU (stock keeping unit) of the shop retailers think about the GMROI(Gross margin return
on investment) and they promote the brand which provides highest. They expect return in the
form of profit margin, company scheme, window display and references of the shop. Among
these, company schemes make the differences and are the highest source of motivation after
profit margin. Retailing demands a constant push from the company.

Market needs to use advertising and brand building strategies to address the discerning buyers
and retail push to in different buyers. The manufacturer should understand consumer behavior
because retailers can’t help quality and price. It is only on dealers said it is demand they sell
Greenpanel 42% agreed that at retail shop it is brand popularity which determine the purchase
of plywood.

There is a greater need to understand the retail behavior considering them as a team working for
the company may help them to be attached to the company. There should be feeling of
belongingness to the company in inner of the retailers. Setting value club for retailers so that
they may exchange views with the company and help in understanding consumer behavior.

In today’s competitive world while entering in the market it is very necessary to have good
knowledge of the potential of a particular market. The information regarding the activities of
competitors existing in the market so that we can plan our each activity according to that. It is
also necessary to sell the existing customers apart from attracting the new customers.

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 OBJECTIVES OF THE STUDY

Every task is undertaken with an objective. Without any objective a task is rendered
meaningless. The main objectives for undertaking this project are:

 To examine the level of job satisfaction in Greenpanel.

 To know whether job satisfaction process is conducted successfully or not.
 To know whether employees are aware about their responsibilities and authorities or no.
 To understand the internal job satisfaction process in the organization.
 To identify & analyze the reasons of dissatisfaction, if any.
 To study the factors leading to job satisfaction among the employees.
 To examine whether the healthy employee relationships s there or not.

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 INTRODUCTION

Management is the process by which people, technology job tasks and other resources are
combined and coordinated so as to effectively achieve organizational goal.

The organizational study conducted at ‘GREENPANEL LTD.’ Is to study about organizational

structure communication channel, span of control organizational culture etc. of the organization.
The relevance of the study is to understand the above-mentioned facts through a real
organizational scenario.

The chief objective of the organizational study is to familiarize with the job satisfaction for a
particular period, so that one can have exposure to the practical side.

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INDUSTRY
PROFILE

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INDUSTRY PROFILE
India is one of the developing countries in the world. The small- and large-scale manufacturers
of the modern days played a significant role in the Socio-economic development of the country.
Our country is blessed with immense stock of natural resources both above and beneath the soil
surface. Among that tree are great bounty to man. They provide shelter, fuel, medicines and
tools for war, commerce, or transport. Nature develops trees as a mother brings up children,
making each one a separate individual. It is an amazing sight to see the natural abstract rhythm
of line, color and texture of wood. Nothing from nature indoors gives a long-lasting enjoyment.
That is why decorative wood had as much importance in the past, having in present and will be
in future also. And another fact was that it was timber from trees, which in the early days helped
man to conquer the oceans and to fly in the air.

WOOD BASED PANEL INDUSTRY IN INDIA

Wood panel products effect considerable saving of scarce wood as compared to solid timber.
The basic types of wood-based panels are:

1. Plywood
2. Particleboard
3. Hardboard and Medium Density fiberboard

Plywood
The history of plywood industry in India is old. It is more than 75 years old that this industry
started here on a very modest scale. It was in the year 1906-07 that plywood was imported in
India for the first-time valued at Rs.32 lakh. Imports rose steadily and by 1924-25 it was worth
Rs.90 lakh. Tea industry in Assam, West Bengal and Kerala was steadily developing and it was
thought that plywood industry in the form of Tea chests production mainly for export should be
developed. Accordingly, two plywood factories were started in Assam in 1923-24 but their
development was steady, slow and not potential. These were the pioneers and the
resourcefulness and courage shown by them in the early stages of growth of Plywood industry
was remarkable and the industry owes gratitude to these courageous entrepreneurs.

With the outbreak of Second World War, necessity of manufacturing tea chests locally was very
much felt and plywood industry in India is a gift of Second World War. Now that tea chests
must be produced, Forest Departments in various states started thinking in terms of finding
suitable timber for manufacturing tea chests. Experiments were made at Forest Research
Institute; Dehra Dun and it was found that plywood made from

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 Indian timbers were good as imported products and therefore advised forest
entrepreneurs to set up modern factories in different States. Accordingly, well equipped plants
were started at different places like Sitapur, Bangalore, Baliapatam (Valapattanam), Dandeli
and Coochbehar. Some of these factories suffered setbacks in the post war years, as after
cessation of war the vested interests tried to sabotage these industries by trying to restart
imports of tea chests. Tariff Board enquiry was held and the Government imposed a lien on the
importers to purchase Indian products equivalent to the quantity allowed to be imported.
Slowly, the Government encouraged the Indian entrepreneurs to modernize their plants and
invest substantial capital in this industry.

After 1947-48, the industry resorted to diversification of its products and block boards, flush
doors, commercial plywood, marine and aircraft plywood, produced in Indian factories came
into the market which were second to none in the world quality and diversity of its products.
Industrial licensing is governed by the industries (Developmental and Regulation) Act, 1951
under the wood-based industry was covered.
There was no restriction of putting up plywood Mill up to 1970. The only criteria were that the
applicant was required to obtain an Industrial License which was being considered by Ministry
of Industry after consulting various Ministries including Ministry of Environment & Forests.
Forest Ministry was being consulted for ascertaining sustainable raw material of Timber for a
particular project; the wood-based industry was more or less in medium and large scale. The
wood-based industry was under Compulsory Industrial Licensing 1988 whether a small-scale
unit or a medium/ large unit, new undertaking or substantial expansion would require Industrial
License.

During 1970 there was clear cut definition of Small-Scale Sector and units having an
investment of less than 7.5 lakhs in plant and Equipment were covered under the definition of
Small-Scale Sector which would be registered with the respective State Director of Industries.
At that particular stage some of the units with such investment got themselves transferred to
small scale sectors. Meanwhile there were modern technology and machinery equipped
plywood units coming up in different places in India like North East Zone.
In 1997 the Government of India totally delicensed wood-based industry as a result more than
2000 small scale units coming up.

The potentialities of the industry can be judged from the many uses to which plywood can be
put. Apart from tea chests plywood marine and aircraft plywood there are specific demand for
the following articles from consumer.

1. Shuttering Plywood
2. Packaging Plywood
3. Plywood drums

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14
 4. Commercial & Decorative Plywood
5. Block Boards
6. Moulded Plywood furniture and chair seats
7. Laminated picking sticks for cotton and jute textile industry
8. Sliced decorative veneers of walnut, teak, rosewood etc.
9. Compregnated wood veneers required for heavy chemical industry and electrical
industry and electrified railways.

Particle Board

Particle board is a reconstituted constructional panel particularly developed as a substitute for

natural construction wood and is made from low grade waste woods or from certain agricultural
ligneous wastes. In that respect particleboard assumes one of the greatest importance in the
wood panel products industry from the point of view of conservation of scarce forest resources
in a country.
In India the first particleboard plant was set up in late 1950s at Sitapur in UP. There are recently
about 12 woods based and agriculture ligneous waste- b a s e d particleboard units in India.
Hardboard and Medium Density Fiberboard (MDF)

Fiberboard is a board encompassing sheet materials of widely varying diversities manufactured

from refined or partially refined wood fibers or other vegetable fibers. Bonding agents and other
materials may be incorporated in the manufacture to increase strength, resistance to moisture,
fire or decay.
The first fiberboard (Hardboard) Industry was established in India during late 1950s and first
Medium Density fiberboard plant was set up in India about 20 years back.

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FURNITURE INDUSTRY:

The other important field is the furniture industry. Competition is keen in this industry.
Furniture manufacturers and exporters are suffering from decreasing profit margins. Many
companies strive to reduce their cost of production and increase efficiency. Some relocate their
manufacturing operations to other areas as on the other hand, foreign manufacturers are taking
steps to strengthen their domestic production through product specialization .

To stay globally competitive, Hong Kong furniture manufacturers strive to reduce costs,
initiate quality control, improve design concepts and capability, and upgrade management
skills and increase marketing and sales effectiveness. Many manufacturers have obtained or
are applying for ISO 9000/9002 certification.

Hong Kong's furniture makers also started to develop their own brands. Furniture
manufacturers also become more careful about the choice of raw materials to meet
international standards, such as compliance with legal or other environmental requirements
in their target markets. China is the largest furniture exporter to many countries, including
the US and Japan. The total furniture exports of China exceeded US$6,683 million in 2002,
with the US being its largest market. Guangdong province is the major manufacturing centre
of furniture on the Chinese mainland. Apart from Hong Kong, manufacturers from Taiwan
and even the US have also set up production plants on the mainland. China also offers a
huge potential market for furniture makers.

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COMPANY
PROFILE

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COMPANY PROFILE

Founder

Mr. Shobhan mittal, the founder of the company He was the Managing Director of the
company. he continued as Director and Technical Adviser to the company also. He was
considered to be the doyen of the wood working industry in the country. Not only he built up a
wood-based panel product empire in the remote part of rudrapur, Andhra Pradesh, which
became a model for the industry within this country, and also outside, he was also
instrumental in transferring the latest technology in wood working industry into reality. He was
a member of the International Academy of Wood Science. He was very closely associated with
the Federation of Indian Plywood and Panel Industry (FIPPI), The Indian Plywood Industries
Research and Training Institute (IPIRTI) and South Indian Plywood Manufacturers Association
(SIPMA). He was closely associated with the Bureau of Indian Standards and was the chairman
of the subcommittee (BDC: 20) dealing with wood-based panel products. The Government of
India recognized him and nominated him to the National Credit Council and other committees
of Central Government on different occasions.
He pioneered a lot of research programmers in wood working industry and one area to be
highlighted is the application of Radio Isotopes for upgrading the quality of ordinary timber, for
which he set up a pilot plant at Nepal. He was recognized by NAARI for the pioneering efforts
in this connection. He has been received various awards.

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Science Award and Vyavasaya Sree Award. He was basically instrumental in placing the wood
working industry in India on the international map with his pioneering efforts. He has served on
the board of various industries within and outside the state, besides on the Government body.
Vision

Continue to remain the best Plywood-Panel Corporation in India with growth in allied areas.
Mission
 To provided utmost satisfaction to the consumer through best quality and customer care.

 To continuously upgrade the product through innovations and convergence of new

technology and to produce the best quality at the lowest cost

 To safeguard and enhance shareholders value

 To respect the dignity of all employees and together to become instrumental in the
development of the country while protecting the environment.

 To utilize the surpluses for the welfare of employees and the society at large.

Infrastructure Facilities

GP found an optimum location. It is located in rudrapur, through which transport is easy. The
factory is located at SIDCUL and also very near to the railway station. The company is having
the following infrastructural facilities;

 Is having a separate plant and sophisticated imported machineries from Germany, Italy,
Sweden.
 It has a co-operative store exclusively for employees.
 Employees State Insurance is undertaken.
 Subsidies canteen facility is available both for administrative staffs and workers.
 Rest room.
 R & D with sophisticated equipment and library.
 Separate office for each department.
 The company owns trucks and other transportation vehicle.

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PRODUCT PROFILE

The major product for which the company has been the leaders in quality is just because of
its finest quality products produced as per international standards. The products of the
company are globally accepted. Over the last 20 years, through its close-knit co-ordination of
various processing units, professional management and maximum utilization of facilities
available, the company has made an indelible mark in the wood industry – a mark of glorious
achievement.
Plywood’s

Following are the plywood products

 Air craft plywood
 Marine plywood
 Shuttering plywood
 Cold Water-Resistant Plywood
 Warm Water Resistant
 Boiling Water Proof
 Block board
 Super Block board
 Flush Door
 Inlay board

Product Mix

 Hardboard 58.32%
 Plywood 15.13%
 Densified Wood 17.60%
 Pre-Compressed Press Board 04.15%
 Others 04.80%

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Competitors
The company’s competitors include medium and small- s c a l e plywood industries. The main
competitors are
 Jolly board
 Century plywood
 Rubco
 Novopan
 Bhutan Board
 Duratuff
 Hibond
 kit ply

Achievements and Awards

1. First to obtain ISO-9002 certification for hard board and pre-finished boards
2. It receives the CAPEXIL Export award for 2002-03 with this the company has become
eligible to be recognized as an export house
3. First to make the irradiate wood
4. First to make the aircraft plywood
5. First to make Fire Retardant plywood confirming to BS: 476 specifications
6. First to develop weather proof, marine and Fire Retardant Hard boards
7. First to make metal faced plywood
8. First to make pre finished plywood and hard boards using OV-Cured surface finishing
technology
9. First to manufacture DAP resin in the country with indigenously developed know how.
Functional Areas Wood
For general purpose, the wood used are Kalpine, Vellapine, Neeli, Eucali, Mullanpali Pasupali,
Red Cidar, Pula, Red Pine, Cher etc.
For decorative purpose, the woods used are Rose Wood, Teak, Mahogany, Padauyk, Silver Oak
Dhavala and Champak.

Steam

Steam is the energy used to operate the machines. The steam comes from the boiler. There are
four to five types of boilers.
1. Saw Dust Boiler
2. Fire Wood Boiler
3. Indusial Engineering and Agricultural Corporation Boiler
4. Fuel Bed Combustion Boiler
5. Thermo Path Boiler

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Chemicals

The various chemicals used in the preparation of plywood are

1. Formaldehyde
2. Aerolyte
3. Phenyl Formaldehyde etc.

PRODUCT HEIRARCHY

Log Yard Cross Boiling Peeling Clipping

Assembling Gluing Edging & Joining Drying

Pre Pressing Hot Pressing Conditioning

Trimming

Finishing Sanding

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CHAPTER -2

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 RESEARCH METHODOLOGY

MEANING OF RESEARCH
Research can be defined as the search for knowledge, or as any systematic investigation, with
an open mind, to establish novel facts, solve new or existing problems, prove new ideas, or
develop new theories, usually using a scientific method. The primary purpose for basic research
(as opposed to applied research) is discovering, interpreting, and the development of methods
and systems for the advancement of human knowledge on a wide variety of scientific matters of
our world and the universe.

DEFINITION OF RESEARCH
“Research is systematized effort to gain new knowledge”
Redman & Mory
“Research is a process of looking for specific answer to a specific question in an organized,
objective and reliable way”.

TYPE OF RESEARCH
My research study is based on DESCRIPTIVE TYPE OF RESEARCH with the main
purpose of describing the level of job satisfaction among employees in Greenpanel Private
Limited rudrapur unit.

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RESEARCH DESIGN
The basic RESEARCH DESIGN of the project thus includes:
 TYPE OF STUDY- Descriptive Research

 OVERALL DESIGN- Flexible Design

 SAMPLING DESIGN- Non probability sampling design (convenience sampling)

 STATISTICAL DESIGN- Percentage

 OBSERVATIONAL DESIGN- Structured Questionnaire

 OPERATIONAL DESIGN- Survey

 SAMPLE SIZE- 50

SAMPLING DESIGN
• UNIVERSE- Finite universe (it was concentrated in GREENPANEL Pvt ltd.)

• SAMPLING UNIT: The sampling unit in this project includes the employees of Greenpanel
Pvt. Ltd from different departments.

• SOURCE LIST: Middle level managers from various existing departments.

• SAMPLING SIZE: The sampling size includes 50 middle level managers.

• PARAMETERS OF INTEREST: Parameters of my interest is to identify whether the

employees are satisfied or not.

• BUDGETARY CONSTRAINTS: Non-probability sampling design is chosen to

supplement the budgetary constraints.

• SAMPLING PROCEDURE: The technique being used is the convenience sampling which
is one of the types of non-probability sampling.
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METHODS OF DATA COLLECTION

PRIMARY DATA:
•Collected data through structured questionnaire of both close ended & dichotomous type.

SECONDARY DATA:
• Collected data from the websites.

• Collected data from books.

• Collected data from search engine.

ANALYSIS TOOL:
Percentage is used as analysis tool

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 LIMITATIONS AND CONSTRAINTS OF THE STUDY
Every effort has been made to keep the study without flaws but even then there are some
limitations. The limitations of the study are as follows:
• Due to constraints of time and resources the study is limited to small area of rudrapur unit
of greenpanel only.

• The possibility of some biased opinion of the respondents in answering the questionnaire
could not be ruled out.

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Visit to company:--

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WHAT MAKES A GREENPANEL”S

If you think Greenpanel’s are extraordinary individuals who are passionate about everything
they do…create inspiration through everything they do… and succeed in everything they do…
you’re probably right. greenpanel’s are hand-picked for a singular purpose… to perpetually
ensure Market Leadership and generate exemplary performance in every function.

Greenpanel exhibit the following leadership behaviors (we fondly call GULBs- Greenpanel’s
Universal Leadership Behaviors):
• Integrity
• Team Orientation
• People Development
• Learning Orientation
• Customer Orientation
• Quality Orientation
• Drive for Results
• Entrepreneurial Spirit
• System and Process Orientation
• Communication

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 ACTIVITIES OF THE COMPANY

• Sale

• Marketing

• Research and Development

• Quality Assurance

• Exports

• Technical & Operations

• Finance and IT

• Human Resources & Legal

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GREENPANEL (GP) SALES SUMMARY

When a customer approaches to purchase the products of GP, they first place a purchase
requirement asking about the details of the department and the conditions of sales. Then they
place a purchase order specifying their requirements. The sales department then make
arrangements to schedule the manufacturing process according to the specification and
requirements in the purchase order. They prepare a production order in triplicates, the original is
sent to the factory, duplicate to the dispatching section and triplicate is kept by the sales
department.

After the production of the required quantity of products the dispatch section prepares a
dispatch advice in triplicate. The original is sent to the factory side, the duplicate is to the
billing section and the triplicate is to the dispatch section manager.
After receiving it the billing clerk prepares the bills. In case of cash sales, the cashier sends the
1st bill to the customer and the duplicate is kept by the accountant. In case of credit sales, the
dispatch section prepares a gate pass in order to release the goods from the factory.
In short, the document connected with the sales are

Purchase requisition: -asking about the details of the products and conditions of the sales.
Purchase Order: - if the customer satisfies with the conditions of sales, he will place a
purchase order.
Production Order: - it is prepared only at the time of stock out of demanded goods.
Delivery Order: - it is prepared when the demanded goods are in stock.
Gate Pass: - in case of credit sales in order to release the goods from the factory a gate pass is
produced.

The GREENPANEL Ltd has branches or depose all over India. The branch managers prepare
the intend. The first, second and third copies are sent to the head office and the fourth copy is
kept by the depose itself.
The sales department maintains the following records to keep the daily transactions: Daily Sales

Report

Sales Day Book

Stock and Sales Statement

SELLING TECHNIQUES USED BY GP

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GP concentrates more on industrial market than on consumer market as its products are semi-
finished and are used by the industries for further production. 80% of its total sales are of hard
boards.

The techniques used by GP are: -

1. Direct Sales
2. Agency Service

Direct Sales-
It means sales through the company directly. Many of the sales of GP are through direct sales.
The process of the direst sales in GP are as follows:
GP get enquires from the market through different medias of communication and they sent their
quotations to them/ the GP makes follow to their quotation and make sure that the customers are
interested in their products.
When the firm receives a Receipt of Order in which the details of the department and their units
etc. would have been mentioned, the sales manager makes his order to the production
department. Here any specific suggestions made by the customers and the date of issue etc are
also mentioned, the sales manager of GP also follow up with the production department check
that the production processes are going well.
On completion of the production the sales manager of GP gives a Dispatch Order to the
concerned department to make issue of the ordered products and is sent to the respective
customers.
After supplying the billing is made an invoice is prepared which contains the following details
like:
Depot Sales

It means sales through depots. The sales procedure of the depots is same as that of the direct
sales. The goods are recorded as sold just on transfer than the sales. The price list in each depot.
Which are added with the transportation cost, carriage & freight charges etc., excise duty is not
included as they are charged at the time of actual sales, GP has got depots in all parts of the
country.GP also attends Many Exhibitions and Trade Fair to improve its sales. They also have
many agents who are paid commissions on the basis of the sales they market. Some of the
organization also act as its agents. They take the company products and makes payment only
after the actual sales.

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 SWOT
ANALYSIS

33
SWOT ANALYSIS

SWOT stands for Strength, Weakness, Opportunities and Threats. Strengths and Weakness are
the internal factors of the company where as Opportunities and Threats are external factors.
SWOT Analysis is the tool for auditing an organization and its environment. It is the first stage
as planning and helps marketers to focus on key issues have been identified, they feed into
marketing objectives. It can be used in conjunction with other tools as audit and analysis.

STRENGTH

The company has been maintaining a high quality for its products and as its products are well
accepted in the market by quality conscious customers, it does not anticipate any marketing
problem. They are considered to be the “The Leaders in Quality Since 1945”.

 The company has a well-established R&D unit, one of the best kinds in the wood-based
industry.
 The company is duly equipped to develop new products to meet the requirements of the
market.
 The products of GP are certified by ISO.
WEAKNESS

There is an acute shortage of good raw materials which has forced the company to import a
substantial portion of its main raw material viz. timber, which has also seen a considerable
increase in price.
 Lack of good distribution network as compared to the competitors.

 Promotion of competitors is better to that of GP. The Company concentrates only on

Industrial Market.

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  The price of GP’s products is high as compared to its competitors.

OPPORTUNITIES

 The company is a leading supplier to Railways, Defense, Automobile, Electrical,

Transport, Civil Aviation and other industries.

 Several products have been developed for the specific requirements of the Automobile,
Transport and communication sectors such as Densified wood etc. and these products
which have technological advantages over competitive products.

 The Company diversified from the production of chest and commercial plywood to
manufacture Decorative Plywood, Block Boards, Shuttering Plywood and Aircraft
plywood.

 The products of the Company are being exported to Germany, France, U.S.A, Sweden,
West Asia and South Asian countrie

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THREATS

 The high- power tariff and increasing cost of furnace oil and other petroleum products
and chemicals.

 There are many medium scales and small-scale plywood industries. They fix low price
for their products.

 In some product ranges, imported items are available at lower cost than is currently
produced in India.

 In general, the working of the company has been adversely affected by the effects of
Globalization.

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 DEPARTMENTS OF THE COMPANY
There are mainly six departments of the company. These are as follows:

HR MANAGER

ACCPOUNTANTY MANAGER

MAINTENANCE MANAGER

PRODUCTION MANAGER

PURCHASE MANAGER

STANDRAD MANAGER

HEADS OF DEPARTMENT OF THE COMPANY

Finance :
Human Resource :
Production :
Purchase :
Engineering :
Unit Head :

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 QUALITY & SAFETY POLICY OF THE COMPANY

The purpose of this policy is to ensure that we win through quality in the market place.
This means that we must do everything to ensure consistent delivery of quality products to
the customer every time.
Our commitment to quality & safety will be reflected very action & is non- negligible.
That means:
All ingredients used in our factories always meet specified quality standards.
Our manufacturing products always ensure delivery of product consistent with product &
pack specification which is free from contamination.
Our supply chain practices enable delivery of speddy product to our customers.

We will fulfill these objectives through:

• Investing in appropriate technology & equipping our factories adequately.
• Working collaborates with our business partners to create ‘win-win’ business outcomes.
• Developing process which enable consistent delivery of quality products of quality
products to our customers.
• Continually Training & retraining our employees & business partners to create a culture
that values quality & food safety as the core pillars of our business.

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H.R.VISION

• Attracting the right talent at the night time and retaining them.
• Providing efficient, safe, caring and enjoyable work environment.
• Developing and training employees which balances individual aspiration and biz goals.
• Institutionalizing fair, user, friendly and developmental BAT to match individual goals
and business results.
• Motivating employees through an objective & transparent RLR system which promotes a
culture of excellence.

39
CHAPTER -3

40
MEANING OF JOB SATISFACTION

Job satisfaction is regards to one’s feeling or state of mind regarding nature of their work.
Job can be influenced by variety of factors like quality of one’s relationship with their
supervisors, quality of physical environment in which they work, degree of fulfillment in their
work, etc. positive attitude towards job has been defined variously from time to time.
In short job satisfaction is a person’s attitude towards job.

DEFINITIONS OF JOB SATISFACTION

Job satisfaction is an intangible variable. It consists of a complex number of variables,

conditions, feelings and behavioral tendencies. Robert’s dictionary of industrial relations
defined jab satisfaction as “those outward or inner manifestations which give the individual a
sense of enjoyment or accomplishment in the performance of his work”.
In simple words, job satisfaction can be defined as the extent of positive feelings or attitude that
individuals have towards their jobs. When a person says that he has high job satisfaction, it
means that he really likes job, feels good about it and values his job highly.
Feldman and Arnold (1985) have defined job satisfaction as “the amount of overall positive
effect or feelings that individuals have towards their jobs”.
Khushnumalrani (2008) defines job satisfaction as “Job satisfaction is more an attitude, an
internal state. It could, for example, be associated with a personal feeling of achievement, either
quantitative or qualitative.

41
HISTORY OF JOB SATISFACTION
The term job satisfaction was brought to lime light by HOPPOCK (1935). He revived 35 studies
on job satisfaction conducted prior to 1933 and observes that job satisfaction is combination of
psychological and environmental circumstances. That cause a person to say, “I am satisfied
with my job”. Such a description indicate the variety of variables that influence the satisfaction
of the individual but tell us nothing about the nature of job satisfaction.
Job satisfaction has been most aptly defined by PESTONJEE (1973) as a job, management,
personal adjustment and social requirement. Morse (1953) considers job satisfaction as
dependent upon job content, identification with the company, financial and job status and
priding group cohesiveness.
One of the biggest preludes to the study of job satisfaction as the Hawthorne study. These
studies (1924-1933), primarily credited to Elton mayo of the Harvard Business School, sought
to find the effects of various conditions (most notably illumination) on workers’ productivity.
These studies ultimately showed that novel changes in work conditions temporarily increase
productivity called the Hawthorne effect it was later found that this increase resulted, not from
the work conditions, but from the knowledge of being observed. This finding provided strong
evidence that people work for purpose other than pay, which paved the way for researchers to
investigate other factors in job satisfaction.

42
IMPORTANCE OF JOB SATISFACTION

• Job satisfaction is an important indicator of how employees feel about their job and
predictor of work behavior such as organizational, citizenship, absenteeism, and turnover.

• Job satisfaction can partially mediate the relationship of personality variables and deviant
work behavior.

• Common research finding is that job satisfaction is correlated with life style. This
correlation is reciprocal meaning the people who are satisfied with the life tends to be
satisfied with their jobs and the people who are satisfied their jobs tends to be satisfied
with their life.

• This is vital piece of information that is job satisfaction and job performance is directly
related to one another. Thus it can be said that, “A happy worker is a productive worker”.

• It gives clear evidence that dissatisfied employees skip work more often and more like to
resign and satisfied worker likely to work linger with the organization.

43
 FACTORS OF JOB SATISFACTION

• COMPANIES POLICIES

In order to promote satisfaction within one’s job, so factor need to be addressed. First, clear
company administrative policies should be developed. According to Syptak, Marshald and
Ulmer (1999), unclear or unnecessary organization policies can be a great source of frustration
for the company’s employees. It can be even worse if the policies are not required to be
followed by everyone in the organization. By addressing this issue, organizational psychologists
can decrease employee dissatisfaction by making sure the company’s policies are fair and apply
equally to all. Another consideration is to make printed copies of the company’s policies-and-
procedures manual easily accessible to all organizational members.

• SUPERVISION

Another challenging factor to be addressed is supervision. In his book Noe (2005) briefly
describes a number of studies that “have identified managerial behaviors that can cause an
otherwise competent manager to be a ‘toxic’ or ineffective manager”. According to Noe (2005),
“these behaviors include insensitivity to others, inability to be a team player, arrogance, poor
conflict management skills, inability to meet business objectives, and inability to adapt during a
change transition”. Organizational psychologists should advise their clients to appoint the right
person for a supervisory position. Companies should view this role critical.

44
• AY/ COMPENSATION

The third factor that needs be addressed is pay. Employees expect to be fairly paid for the work
they have done. If this expectation is not met, then employees will probably be dissatisfied with
their jobs, adversely affecting their productivity. Syptak marshald and Ulmer (1999)
recommend organizations to consult salary surveys or local help wanted ads as a way to identify
whether the salaries and benefits the company is offering are comparable to those of other
offices in the area or the industry.

OPPORTUNITY FOR PROMOTION

The next factor that should be addressed is opportunity for promotion. Employee perceptions
about opportunity for promotion are also another determinant that influences job satisfaction.
One survey found that a perceived lack of promotion opportunities was the strongest reason
why federal employees left government service. (U.S. Merit Systems Protection Board 1987)

• WORKING CONDITIONS

The next factor that should be addressed is working conditions. It is important for the
company’s workforce to feel comfortable at the place they work. Little things such as a nice
desk or a clean work area can make a difference in the employee’s productivity. Syptak
marshald and Ulmer (1999) advice organizations to do everything they can do they keep
company’s equipment and facilities up to date. In their article Syptak marshald and Ulmer
(1999) also recommend companies to “avoid overcrowding and allow each employee his or her
on personal space, whether it is a desk, a locker, or even just a drawer”.

45
• COLLEAGUES

The next important factor that should be addressed is colleagues. Colleagues play an important
role is job satisfaction. If a person has good relations with his peers group or with his colleagues
then he can be satisfied with his/her job. If a person has not good relation with his/her
colleagues or peers group then can’t be satisfied with the job.

• WORK ITSELF

The next important factor to be considered is the work itself. Companies should make sure that
their employees believe that “the work they are doing is important and their tasks are
meaningful” (Syptak, marshald and Ulmer, 1999). It is fundamental to emphasize to individuals
that their contributions significantly impact the company’s results. Syptak, marshald and Ulmer
(1999) suggest companies to make a big deal out of meaningful tasks that may have become
ordinary. Even though employees may not find all their tasks interesting or rewarding,
companies should stress to their employees how those tasks are essential to the overall
processes (Syptak marshald and Ulmer, 1999).

46
CHAPTER -4

47
DATA INTERPRETATION
A questionnaire was prepared for the purpose of getting feedback from the middle level
managers regarding ‘Job Satisfaction’ of Greenpanel. Employees selected are 50 middle level
managers from different departments and were distributed the questionnaire with the purpose of
the study.
Analysis of the data
The analysis of the data is done as per the survey finding. The data is represented graphically in
percentage.
The percentage of the people opinion were analyzed and expressed in the form of charts and
have been placed in the next few pages.

1. How long you have been working in the industry?

Opinion No. of Respondents Percentage

Less than 3 years. 35 70%
3 to 5 years. 12 25%
More than 5 years. 03 5%

5%
25% ]Interpretation: This
graph shows that 70% of the
highly satisfied
satisfied employees have worked
neither satisfied or dissat -
for isfied less than 3 years, 25% of
70%
employees have worked
for 3 to 5 years of the
employees have worked
for more than 5 years.

48
2. How do you feel the working environment?

Opinion No. of Respondents Percentage

Excellent 15 30%
Good 25 50%
Not Satisfactory 10 20%

20%
30%

highly satisfied
satisfied
neither satisfied or dissat -
isfied
50%

Interpretation: This graph show that 30% of employees say the working environment is
excellence, 50% of the employees say the working environment is good & rest of the 20%
employees says the working environment is not satisfactory.

49
3. How secure do you feel in your job?

Opinion No. of Respondents Percentage

High secure 05 10%
Secure 10 20%
Insecure 35 70%

10%

20%
high secure
secure
70%
insecure

Interpretation: This graph show that 10% of employees feel highly secure about their job,
20% feels secure & rest 70% of employees feels insecure.

50
4. Do you feel the smooth relationship with your employees and co-workers?

Opinion No. of Respondents Percentage

Very High 03 5%
High 12 25%
Medium 30 60%
Low 05 10%

5%
25%
highly satisfied
satisfied
neither satisfied or dissat -
isfied
dissatisfied
70%

Interpretation: This graph shows that 5 % employees feel highly smooth relationship with
their employees & co-workers, 25% feels high, 60% feels medium & rest 10% feels low
smoothness of relationship with their employees and co-workers.

51
5. Are you satisfied with your job?

Opinion No. of Respondents Percentage

Highly Satisfied 15 30%
Satisfied 25 50%
Neither Satisfied or 10 20%
Dissatisfied

20%
25%

highly satisfied
satisfied
neither satisfied or dissat -
isfied
50%

Interpretation: This graph shows that 30% of employees are highly satisfied about the point
50% of employees are satisfied on the point 20% are neither satisfied nor dissatisfied.

52
6. Are you satisfied with the appreciation or reward system provided by your
management?

Opinion No. of Respondents Percentage

Yes 20 40%
No 30 60%

40%

highly satisfied
satisfied

60%

Interpretation: This graph shows that 60% employees are satisfied on the point & rest 40%
employees are dissatisfied on the point.

53
7. Are you satisfied with the bonus or incentives given?

Opinion No. of Respondents Percentage

Yes 18 35%
No 32 65%

35%

highly satisfied
satisfied

65%

Interpretation: This graph shows that 35% of employees are satisfied on the point and 65%
employees are dissatisfied on the point.

54
8. Are you satisfied with the overall compensation package?

Opinion No. of Respondents Percentage

Highly Satisfied 05 10%
Satisfied 08 15%
Need Improvement 37 75%

10%
15%

highly satisfied
satisfied
neither satisfied or dissat -
isfied
75%

Interpretation: This graph shows that 10% are highly satisfied about the point, 15% of
employees are satisfied on the point & rest 75% of employees says that overall compensation
package needs improvement.

55
9. Do you agree you are frequently stressed out at your work/

Opinion No. of Respondents Percentage

Strongly Agree 12 25%
Agree 35 70%
Neither Agree or Nor 03 5%
Agree
Disagree None -
Strongly Disagree None -

5%
25%
highly satisfied
satisfied
neither satisfied or dissat -
isfied
dissatisfied
70% highly dissatisfied

Interpretation: This graph show that 25% employees are strongly agree about the point 70% of
employees are agree on the point 5% are neither agree or disagree on the point.

56
10.How much you are satisfied with the work assigned to you?

Opinion No. of Respondents Percentage

Highly Satisfied 03 5%
Satisfied 12 25%
Neither Satisfied or 35 70%
Dissatisfied
Dissatisfied None -
Highly Dissatisfied None -

5%
25%
highly satisfied
satisfied
neither satisfied or dissat -
isfied
dissatisfied
70% highly dissatisfied

Interpretation: This graph show that 5% of employees are highly satisfied about the point 25%
of employees are satisfied on the point 70% are neither satisfied or dissatisfied and none of the
employees are dissatisfied and none of the employees are highly dissatisfied.

57
CHAPTER -5

58
 FINDINGS

• The study revealed that employees do not work for a long time in the company. Through
personal interaction with the employees. It was found that monetary rewards help in
retaining the employees.

• The study revealed that employees are satisfied with the working environment.

• Most of the employees are not satisfied with the job security.

• The study revealed that employees have smooth relationship with their supervisor & co-
workers.

• The employees of the company felt satisfied with job. They seem to be satisfied as far as the
various job related factors are concerned like company and administrative policies,
supervision, etc.

• The study revealed that employees felt that they should be recognized on the basis of
individual performance rather than on the basis of team performance. According to
employees it motivates them.

• Most the employees said that the monetary rewards are best for recognition than certification
or gifts.

• Another finding of the study revealed that employees felt that the employees are not satisfied
with their existing compensation package is concerned.

• The stress level is high because of high target & as a result they can’t take time off for the
personal and family related matters.

59
 CONCLUSION

The conclusion is based on the analysis and interpretation of the primary data regarding the job
satisfaction of the employees of Greenpanel Company of SIDCUL RUDRAPUR. My objective
of research as concerned are:
• To examine the level of job satisfaction in greenpanel.

• To identify & analyze the reasons of dissatisfaction, if any.

• To study the factors leading to job satisfaction among the employees.

• To examine whether the healthy employee relationships is there or not.

From the analysis and interpretation, it is conducted that most of the employees are satisfied
with the working conditions and only few employees are not satisfied with supervisor, which is
negligible in number. This study shows that only few employees strongly feel that the working
hours decided by the organization are most convenient for them. Other employees are not in
favor of working hours. So it is clear that the management should keep the main consideration
on working conditions and the hours, which satisfy the employees.
The study shows that a small numbers of employees are satisfied with the job security. And
remaining of the employees is not satisfied with the job security provided by the organization.
Only public sector employees are satisfied with their job security. An analysis shows that
employees are strongly in favor that the targets given to them are achievable and only few are
don’t feel that the targets given to them are achievable. Hence the targets set by management
are achievable. From the analysis it is concluded that a small number of employees are satisfied
with the payment as per their roles and responsibility and remaining all are not satisfied with the
payment according to their roles and responsibilities.

60
 RECOMMENDATION

Organization can help to create job satisfaction by putting systems in place that will ensure that
workers are challenged and then rewarded for being successful. Organization that aspires to
creating a work environment that enhances job satisfaction need to incorporate the following:
 The organization should provide a secure work environment that includes job
security/continuity to their employees.
 Organization should provide shift system so that employees are satisfied with the
working hours.
 Organization should provide opportunities to their employees to use one’s talents and to
be creative in the organization.
 Organization should organize events to reduce stress among the employees.
 Organization should provide an environment to their employees in whom they are
supported by an accessible supervisor who provides timely feedback as well as congenial
team members.

A number of employees are not satisfied with their job. So, organization should provide
competitive salary, job security and opportunities for promotion to their employees, which can
help them in retaining the employees.

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64
65
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68
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70
HUMAN RESOURCE DEPARTMENT
GREENPANEL is highly successful in management its productive human asset. Mutual
understanding between the management and workers is appreciable in of the matter of
the attainment of company’s ultimate goal.
GP looking is a forward-looking organization, committed to identify, train, develop and sustain
its human resource in such a manner so as to integrate the individual career aspiration of its
executives with the fulfillment of the objectives. Towards this, GP accepts basically that of fair,
equitable and performance-oriented policy with respect to its human resource
HUMAN RESOURCE STRUCTURE
General Manager is the head of the HR Department followed by the factory executive, who
deals with all the matters in the HR Department. The Personnel Officer. The Chief Time Keeper
and The Time Clerks assist him. The Time Clerk deals with attendance, leave and time
management of the workers in shifts and in general shifts. Besides there are also people dealing
with ESI, PF Canteen Token Wages and Salary Administration and disciplinary action.
PURPOSE
The purpose of the HR Department is:

 Recruitment and selection

 Job analysis, job description and job specification
 Placement and induction
 Training and development
 Performance Appraisal
 Other HRD functions
Candidates are evaluated and selected on the basis of scrutiny of application, personal,
interview and other means. Employee’s referrals are the main sources of recruitment. Job or
skill requirement has been defined department wise to clarify responsibility, authority, and
inter-intra department communication.
Training needs are identified and plans are prepared accordingly. Training is provided
according to availability of faculty and considering operational constraints.
New employees are inducted on the basis of GP Induction Manual on-the-job training and
informal guidance. Apart from these employees attends the seminar/training programs
conducted by the external agencies.

71
CLASSIFICATION OF WORKERS

In GREENPANEL1 Ltd., workers are classified as follows;

 Permanent
 Probationers
 Substitutes
 Temporary
 Casual
 Apprentice

SHIFTS

Shift working shall be regulated in accordance with the provisions of the Factory Act.
Company’s shift includes:

1st shift : 6.30 am to 2.30 pm.

2nd shift : 2.30 pm to .30 pm.
General shift : 7.30 am to 4 pm. Office time : 9 am to 5 pm

TICKET OR ATTENDANCE CARD

Every workman shall be given a ticket or attendance card, free of cost, showing his number or
name, classification etc. Every workman shall punch his attendance card at the punching
machine and deliver up his card or ticket at the
place provided in the time office before the commencement of each session of the shift in a day.

ENTRANCE AND EXIT

The workman shall not enter or leave the premises of the factory except by the gate or gates
appointed for the purpos

72
LEAVE AND HOLIDAYS

1. Leave with wages will be allowed to workmen as provided for in the chapterof
Factories Act.
2. Leave for sickness, maternity and accident will be allowed to the workmen as provided
for in the Employees State Insurance Act.
3. National and festival Holidays with wages will be allowed to the workmen as provided
for in the Kerala Establishment Act.

WAGE AND SALARY ADMINISTRATION

In GP Ltd., the managers analyze and interpret the needs of the employees so that reward can be
individually designed to satisfy their needs. Here the workers are paid wages and the staff
officers’ managers etc are paid salary. The wage /salary system which GP follows is time rate
system. Under this system workers are paid according to the work done during a certain period
of time. He is paid at the settled rate as soon as the time contracted for is spent. The basic
purpose of salary administration is to establish and maintain an equitable wage and salary
structure.

DISCIPLINARY ACTION

Any workman who is found guilty of misconducts is liable to be summarily dismissed without
notice or compensation in lieu of notice or alternatively to be suspended for period not
exceeding 4 days or to be fined up to 2% of his wages in a wage period in accordance with the
provisions of the Payment of Wages Act. Wages and other dues, if any, due to workman whose
service is terminated by way of dismissal or discharge or retrenchment shall be paid to the
workman within 2 days of termination of his service.

73
TRADE UNIONS

Trade unions are an inevitable part of a modern industry set up. Trade union influence
industrial democracy, morale, productivity. There are four trade unions in GP Ltd. They are;
 CITU (Affiliated to CPM)
 INTUC (Affiliated to Congress)
 AITUC (Affiliated to CPI)
 STU (Affiliated to Muslim League)

RETIREMENT

Any workman who is declared mentally unfit or found to be on continued ill- health or reached
the age of 58 (fifty-eight years) shall be retired from the service according to the Gratuity Act.

VOLUNTARY RETIREMENT SCHEME

 To achieve the optimum level of manpower with the desirable average age mix as per
the changing needs of the organization.
 To provide necessary manpower adjustments.
 To provide monetary benefits in terms of terminal benefits and voluntary retirement,
compensation to the who opt for voluntary retirement.

BENEFITS

Statutory benefits including ESI, PF, Gratuity etc. are provided to all the employees. Besides
that, GP Ltd., provides food at subsidized rate to the workers. Whenever any employees meet
with any accident, all the expense in the course of treatment borne by the company.

74
WELFARE MEASURES:

1. Employee Provident Fund [EPS]

The EPF Act was enacted in 1952. The Act is now applicable to employees drawing pay not
exceeding RS.6500 per month. The pay includes basic wages and Dearness Allowance. Three
schemes are framed under the Act
a) The Employees PF Schemes 1952

b) The Employees’ Pension Scheme 1995

c) The Employees Deposit Linked Insurance Scheme 1976

This Act is applied to every factory in which 20 or more persons are employed without the aid
of power or more workers with the aid of power. 12% of employee’s wages and equal of
employer’s contribution is transferred to PF of employee’s wags from this to Pension Fund of
the employee.

2. Employee State Insurance Scheme (ESI)

ESI ACT ,1948 is social security legislation. The Act provides certain benefit to employees in
case of sickness, maternity and employment injury. The coverage under the Act is at present
restricted to employee’s drawing wages not exceeding Rs.7500 per month. The pay includes
salary, DA and HRA. The employees contribute 1.75% of the wages and 4.75% of the wages is
contributed by the employer.

CANTEEN FACILITY

Tokens are given to the workers for the food for one week. In each day they are remitting the
token in Time Office. Food is available to workers at a concession rate of Rs.2.50 for meals and
60 paise for snacks

75
HIERARCHY OF HUMAN RESOURCE DEPARTMENT

Managing Director

GM
(Administratio

Factory executive

Personnel Officer Welfare officer

76
PRODUCTION
DEPARTMENT

77
PRODUCTION DEPARTMENT

Production involves conversion of raw material into finished products/ goods. It can be
briefly explained as follows.
Input Conversion process Output

In the GREENPANEL Ltd, the raw material that are used to the output is steam wood, and
chemicals. After introducing these raw materials to a series of process the finished goods are
obtained. GP produce three categories of products, namely, plywood, hardboard and furniture.
The wood that is required for the production is acquired from both local as well as international
markets.
INDIAN TIMBER SPECIES USED IN GP

Commercial Timber Decorative Timber

Vella pine Teak

Calpine Rose wood

Pali Mahogany

Mullan Pali White Cedar

Pashupali Kussia

Padapine Poom

Kulirmavu Beech

Mango Silver Oak

Badham Gombia

Red Cedar Chempak

78
Chipping Machine for the formation of wooden chips:

These chips are transferred to the head tank for washing it using conveyor belts.

Cleaning of chips: -

This is done using boiling water. It also provides sufficient softness for the chips.
Passing through sieve does the separation of water from the chips.
Cyclone

Chips from the deliberating machine are transferred to a conical chamber called cyclone
using steam.
Defibrator

The Defibrator used in the plant is the aspluent Defibrator. The moisture content in the
chips is removed by increasing the temperature and the cleaned chips are converted into fine
powder. After grinding it with two grinding wheels of which one is kept stationary while the
other is rotating.
Pulp formation:

The powder form of wood is converted into pulp byadding sufficient quantity of water
and chemicals. The chemicals used are dilute sulphuric acid, paraffin wax and certain resin.
The pulp is then pumped into board forming section

79
FLOW CHART OF PLYWOOD PROCESS

Log yard
Cross cutting

Boiler

Cross cutting Chipping Slicing

Drying

Edging

Drying Boiler
Splicing

Glues spreading

Assembling

Pre-Pressing

Hot pressing

Conditioning

Trimming

Sanding

Finishing

Grading

Plywood

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LOGYARD

Log yard is where the logs are stored for 2 months to 5 years. Logs are arrived from all over the
countries like Malaysia, Africa, Andaman and Nepal. Before dipping into water, the length and
diameter of the logs are noted and given a specific number. According to necessity the logs are
taken out. Storing of wood in water make wood durable and prevents from fungus attack and
softening the wood before peeling. In GP the layout of the log yard is such that it is able to
facilitate the free movement of the transport from one part to another. Trolley lines are provided
for easy transport of timber.

Cross Cutting

The wood from the log yard is brought in for cross cutting. The long wood is cut into block of
varying sizes ranging from 3 to 8 feet as required. Chain saw is used for cutting the logs that
works on a hydraulic system.

Boiling

This is to convert the hard timber into soft and remove the oily material. In order to make the
hardwood soft and to remove its oil content, the blocks are boiled with the help of steam at a
temperature ranging from 1200C to 1800C. The wood is boiled for a minimum of 24 hours. The
steam that is required is produced in boilers. After boiling logs are cleaned and bark is removed
manually and the metallic particles are also removed which may damage the knife.
GP has 4 types of boilers. They are,
1. Saw dust boiler
2. Firewood Boiler
3. FBC (Fuel Bed Combusting)
4. IAEC (Industrial Agricultural and Engineering Corporation)
5.
Peeling

After boiling, the logs are peeled with the help of the peeling machine. The output is called the
veneer. Two kinds of veneers are obtained – Face and core. Both

81
of them have the same quality, but the soft and smooth part is known as face and the hard and
the rough is called as core. The thickness of veneers ranges from 0.4 mm to 2.8mm.
Sometimes the slicing machine is used instead of a peeler. This is mainly used in decorative
plywood.
SLICING

Mainly decorative veneers are sliced in a slicing machine. For slicing the logs are first cut in the
form of flitches from the Kohinoor Saw Mill. There are two slicing machine vertical and
horizontal. GP uses horizontal slicing machine. This flitch is fixed on bed and the knife is
moved. Each veneer produced is stocked manually from the machine in an order.

CLIPPING

The next process is called clipping. Clipping is the process of converting the veneers into
required size and also remove the detective part of the veneer. Here the veneer produced from
the peeler is passed through clipper. Clipped veneers are moved to transfer which they are
selected on to faces, cores, cross band and then dried.

DRYING:

Drying is the next process. Drying process is conducted by considering time, steam, and
thickness of wood. The machine used for this process is known as Dryad. Usually, the moisture
content is reduced to 6% to %.

EDGING & JOINING

The majority of veneers obtained after clipping would be relatively narrow in width, so edging
and joining necessary for plywood manufacture. It includes edge cutting, joining, taping and
spicing. The dried veneer may not straight edge. Edge

82
cutting machine is for straightening the edge of veneer after cutting. For this GP has two edge
cutting machine. It is working under hydraulic or air pressure. After cutting, the UF resin is
applied on the edge of the veneers. Electric heat is used for joining the veneers. A gummed tape
is also used for joining the veneers. After joining, it is cut into required size.

GLUE SPREADING:

Uniform distribution of glue on the surface if veneers is called glue spreading. In GP the roller
is used for spreading of adhesive. Both side of veneer can be glued at a time. Each machine
consists of two spreading rollers made up of steel covered with rubber. The distance of the
roller can be adjusted. Minimum thickness of the veneer that could be glued on this machine is
0.3mm. Glue spreaded veneers are again dried in the dryer. The glues used are – Urea
formaldehyde, Areolyte, Melanine formaldehyde.

ASSEMBLING:

In assembling the core veneers are places in between the face veneers. The adjacent veneers are
placed in such a way that the gains are across each other. Minimum three plies should be there
in plywood. In this process, several boards are pressed in certain temperature. The main element
that should be taken as important in this process are steam, thickness and time.

PRE-PRESSING:

Pre-pressing is the compression of panel assembly to attain to attain its final thickness without
obtaining the final polymerization or cured state of glue line. Pre- pressing is done on the
siempel kamp press. The duration of pre-pressing may vary from 20-30 minutes depending on
the adhesive.

HOT PRESSING:

It is an important process in plywood manufacturing. In hot pressing high temperature and

pressure will be applied. The temperature and pressure will be
83
different to each of plywood. Temperature is used for curing the resin and pressure is used for
reducing the thickness. There are 3 types of presses used for plywood manufacturing. They are
multi daylights and working under hydraulic pressure. The pressing time may vary according to
the thickness.

CONDITIONING:

After pressing commercial plywood are dipped into the chemical tank for 2.5minutes. t provides
resistance and gives strength to the board. Conditioning is the process in which the pressed
plywood is treated with chemical water to avoid termites and fungal attacks.

TRIMMING:

In trimming the plywood is passed into the trimming machine for cutting the sides according to
the sizes required.

SANDING:

This is the process in which the trimmed surface of the plywood is smoothened and softened by
using sandpaper or belt sender or drum sander.

Finishing

Finishing is the final step in the plywood production process. All the finishing works such as
repairing of face veneer and patch works are done carefully, fine splits, checks, and small gaps
on the surface plywood are filled with French choke powder and airtight powder. The boards
are sealed and labeled and made ready for dispatch.

84
SPECIALLITY PLYWOODS

1) AIRCRAFT PLYWOOD:
Aircraft plywood is used for the interior of the aircraft like in military and field. It is a 3-
ply construction and its thickness ranges from 1mm, 1.2mm, 1.5mm. Because of its small
thickness it can easily bend as desired. Pali& White Cedar is only used for its construction with
PF resin.

2) MARINE PLYWOOD:
Marine plywood is used in the application of marine vessels. Main species for its
construction are kussia (used as face), kalpine (used as core & cross band), Red Cedar as a
whole. Sometimes Kalpine is also used as all veneers in its construction. Kussia has good
bonding strength and resistant to microorganisms. Usually, 7ply of 9mm is taken and PF resin is
used for its construction.

3) SHUTTERING PLYWOOD:
Shuttering plywood are used for concrete shuttering. 3 types of shuttering plywood are
manufactured in GP

4) FIRE RETARDANT PLYWOOD:

Fire retardant plywood has a quality to resist the fire. BWR plywood are treated with fire
proofing chemicals such as boric, boarxetc and treated in vacuum pressure for 72 hours to get
the fire proofing property

DENSIFIED WOOD DIVISION:

Densified boars are of 3 types- low Densified board, medium Densified board, and high
Densified board. Density of these boards is 0.97 g/cc, 1-77g/cc respectively. Kalpine and
vellapine are the mainly used species. The method of manufacture of Densified boards is
slightly different from plywood in glue spreading. All the veneers including face are also glued.
PF resin is used. The viscosity of the resin is 30-45 second. After glueing veneer is dried to
reduce the moisture content present in the glue.

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FURNITURE
Furniture is another product which is produced in GP. The furniture is used by using decorative
woods like Teak, Mahogany, and Rosewood etc. The veneers are molded in various shapes to
make different types of furniture. All the furniture is long- lasting and is with best quality.
Along with this, the wastes of decorative veneers are used to make various handicrafts products.
Inlay board is an example.

HEIRARCHY OF PRODUCTION DEPARTMENT

Production manager

Productionexecutive
Production assistant

Production supervisor

Workers

Skilled Semiskilled Unskilled Casual

86
 PURCHASE
DEPARTMENT

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PURPOSE
To lay down the procedure for procuring/purchasing of items from domestic supplier as well as
import.
SCOPE
Procurement items like timber, chemicals, spares, instrument, oils, lubricants, fuel, equipment and
machinery. Purchase department deals with all purchase of the organization.
GP has two departments:
1. Purchase department-Stores and spares
2. Purchase department-Timber

PURCHASE PROCEDURE

1. Purchase Requisition or Indenting of materials

With the help of purchase requisition purchase officer come to know the type of materials
needed in the organization. Purchase requisition is a written request sent to inform the
Purchasing Department of a need for material and surplus. Both the stores send Stores Indent,
which is duly signed by the Stores Manager and Works Manager and is authorized by GM. The
particulars of the stores Indent are entered in the Stores Register in the purchase Register and
Purchase Register in the Purchase Department
, with reference to its serial number

2. Purchasing Enquiry
Purchasing enquiry is sending in the prescribed enquiry from quoting the quantity, item,
rate/unit etc. After checking whether the required specifications are met or not, they invite
quotations.

3. Receiving Quotations
A source of supply of material is selected after the receipt of the Stores Indent. Enquiry is sent
and quotations are invited from the suppliers. Usually the Purchase addresses. The received
quotation is sent to respective sections. After checking whether their required specifications are
met or not, the quotations are accepted or rejected.

88
After receiving the quotation, in order to decide to whom, the order should be placed, the
relevant file with Stores Indent, enquiry and quotation are sent to Works Department, does final
decision regarding the placement of order.

4. Purchase Order
Once the quotations are accepted, the Purchase Department sends the Purchase Order. Purchase
Order is the written request to supplier for specified goods at an agreed price. It stipulates terms
of delivery and terms of payment.
Three copies Purchase Department sends the Purchase Order. The original order is sent to the
supplier. The copies are sent to Accounts/Finance and respective stores

5. Receiving Materials
When the goods ordered are delivered, the Stores Department will receive the material. Before
receiving the materials, a detailed inspection is carried out. The invoice is sent to the Production
Department, which will be signed by Worker’s manager.

Government Orders
Orders are met against enquiry from Railways and Government. The procedure includes:
Government notification inviting quotation Government sends quotation Government
quotation
Government carries out inspection Government gives the order
The sales will be 95% cash sales and 5% credit sales. In the case of Government orders
normal credit period allowing is 30 days.
The details of purchases are entered in Purchase Day Book kept in the Purchase
Department.
PURCHASE – TIMBER SECTION
This Department does the purchase of timber. There are three sources for the purchase of
timber:
1. Local Purchase
2. Importing or outside/interstates Purchase
3. Purchasing from Government Source (very rarely)

89
LOCAL PURCHASE
The dealer may be registered or non-registered. Registered dealer will give Bill to GP Ltd. In
the case of non-Registered dealer GP prepares a Bill and pays cash.

LIST OF TIMBERS USED

COMMERCIAL TIMBER DECORATIVE TIMBERS

Vellapine Rose wood

Kalpine Teak

Red pine Mahganauy

Penta pine Pecca

Ekoba Silver oak

Mango Kuacia

Neeli Jombi

Eucalypts Dhavala

Pali Chemaka

INTER STATE PURCHASE OR IMPORTING

In the case of interstate purchase there will be 4% sales tax. The Central State Tax Number
should be provided in the Bill.

Timber is imported as per import procedure after the MD/ED or an assigned representative does
on-site evaluation and selection. The timber logs cleared from the port are transported to the
and log yard and stored in water.

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PURCHASE – GOVERNMENT SOURCE
Now in the case of GP Ltd this is very rare. It can be said that it is almost nil. For this there will
be notification from the Government. The company verifies this notification and report to the
management. If the company is willing attends the auction the Government will give the Bill.
The timber is purchased as and when it is available. After purchasing Mopanes take care of the
timber. As and when required the timber moves to the Production Department.

PURCHASING PROCESS
 The extent control on suppliers and their products/services, is the dependent on the
relative importance of the product/services on GP’s operations
 Suppliers are selected on the basis of qualification/past experience
 Suppliers’ information is available with respect to records of their qualification and
subsequent performance
 Suppliers can be re-evaluated and/ other disqualified for non-performance or other
justifiable reasons, during a Manager Review
 Material specifications are referred to in enquiries and purchase orders
 Emergency purchase can be authorized by Managing Director/Executive Director

Purchasing Information
Appropriate and adequate information about the product is provided in the purchase order or
other documents. Requirements for approval of product/process/equipment as applicable,
reference to drawing if any, qualification requirements of personnel if any, are intimated to the
suppliers

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HEIRARCHY OF PURCHASE DEPARTMENT

Managing director

GM(Administration)

Purchase Executive

Assistants

92
 SALES
DEPARTMENT

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SALES DEPARTMENT
Sales department is a part of Marketing Department and starts only after the production of
finished goods.
The GP products mainly takes the form of DIRECT SALES AND DEPOT SALES and also
through COMPANY AGENTS AND REPRESENTATIVES, Agents are paid service charges
against sales, there is an agency agreement with the agents.

SALES PROCEDURE
 Receiving the order
 Placing the order
 Three copies of placement order are maintained, one copy is sent to the works
department, one copy to dispatch section and one copy s kept in the Sales Department
itself.
 Preparation of Dispatch Invoice
 Billing section receives dispatch invoice from the dispatch section. Four copiers are
prepared, one is kept in the sales department, if the order is booked, a copy is kept in the
hands of transporter, one copy is sent to the party who placed the order and another copy
is given to the agent.
 Preparation of Dispatch Document
 Dispatch Document are prepared by the Central Excise Department and Billing staff of
Sales Department as per Base documents issued by Dispatch Section.
 The Depots Return Stock Transfer invoice copy after receipt of the material. They are
filed in head Office Depot wise files.
 Depots supply indented products to the respective customers. Sufficient no. of copies of
bills including original to customer and copy to Head Office. Depots sent sales day book.

GP SALES SUMMARY

When a customer approaches to purchase the products of GP, they first place a purchase
requirement asking about the details of the department and the conditions of sales. Then they
place a purchase order specifying their requirements. The sales department then make
arrangements to schedule the manufacturing process according to the specification and
requirements in the purchase order. They prepare a production order in triplicates, the original is
sent to the factory, duplicate to the dispatching section and triplicate is kept by the sales
department.

94
After the production of the required quantity of products the dispatch section prepares a
dispatch advice in triplicate. The original is sent to the factory side, the duplicate is to the
billing section and the triplicate is to the dispatch section manager.
After receiving it the billing clerk prepares the bills. In case of cash sales, the cashier sends the
1st bill to the customer and the duplicate is kept by the accountant. In case of credit sales, the
dispatch section prepares a gate pass in order to release the goods from the factory.
In short, the document connected with the sales are

Purchase requisition: -asking about the details of the products and conditions of the sales.
Purchase Order: - if the customer satisfies with the conditions of sales, he will place a
purchase order.
Production Order: - it is prepared only at the time of stock out of demanded goods.
Delivery Order: - it is prepared when the demanded goods are in stock.
Gate Pass: - in case of credit sales in order to release the goods from the factory a gate pass is
produced.

The GREENPANEL Ltd has branches or depose all over India. The branch managers prepare
the intend. The first, second and third copies are sent to the head office and the fourth copy is
kept by the depose itself.
The sales department maintains the following records to keep the daily transactions: Daily Sales

Report

Sales Day Book

Stock and Sales Statement

SELLING TECHNIQUES USED BY GP

GP concentrates more on industrial market than on consumer market as its products are semi-
finished and are used by the industries for further production. 80% of its total sales are of hard
boards.

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The techniques used by GP are: -

3. Direct Sales
4. Agency Service

Direct Sales-
It means sales through the company directly. Many of the sales of GP are through direct sales.
The process of the direst sales in GP are as follows:
GP get enquires from the market through different medias of communication and they sent their
quotations to them/ the GP makes follow to their quotation and make sure that the customers are
interested in their products.
When the firm receives a Receipt of Order in which the details of the department and their units
etc. would have been mentioned, the sales manager makes his order to the production
department. Here any specific suggestions made by the customers and the date of issue etc are
also mentioned, the sales manager of GP also follow up with the production department check
that the production processes are going well.
On completion of the production the sales manager of GP gives a Dispatch Order to the
concerned department to make issue of the ordered products and is sent to the respective
customers.
After supplying the billing is made an invoice is prepared which contains the following details
like:
Depot Sales

It means sales through depots. The sales procedure of the depots is same as that of the direct
sales. The goods are recorded as sold just on transfer than the sales. The price list in each depot.
Which are added with the transportation cost, carriage & freight charges etc., excise duty is not
included as they are charged at the time of actual sales, GP has got depots in all parts of the
country.GP also attends Many Exhibitions and Trade Fair to improve its sales. They also have
many agents who are paid commissions on the basis of the sales they market. Some of the
organization also act as its agents. They take the company products and makes payment only
after the actual sales.

96
 HEIRARCHY OF SALES DEPARTMENT

Managing Director
Executive Director

Sales Executive

Sales Assistants Dispatch Assistants Depot Assistants

Sales Agents

97
 MARKETING
DEPARTMENT

98
MARKETING DEPARTMENT

Marketing is the art of selling products. It is also defined as societal process by which
individual and groups obtain what they need and want through creating, offering and freely
exchanging products and services of value with others.

GP MARKETING

Due to the high standard of quality maintained by the quality control department of this
company, the product of the company has found ready acceptance in markets both in India and
abroad. The company has succeeded in arranging manufacturing programs on the basis if firm
orders, which in regularly for all types of products. The plywood manufactured by the company
is being regularly used for manufactures of T.V cabinets, bus bodies, building constructions,
railways, furniture industry etc. The hardboard is used for partition walls, false ceiling,
furniture industry etc. The densified wood is being supplied to the electrical industries in
various forms and also to the textile and chemical industries in the form of filter plates and as
checkered boards for flooring in buses and railway coaches. The DAP and FRP compounds are
being used by the electronic and molding industries. The furniture manufactured by the
company is being absorbed the market in drawing rooms, bedrooms, schools, office etc. The
products of the company are being exported West Germany, France, Sweden, West Asia and
South Asian countries regularly.
MARKETING STRATEGY

The strategy that has been adopted by the firm is customer-oriented GP’s marketing strategy
evolves around its product quality. The company does not aim at making profit by competing
with the local manufacturers, rather aims at Niche Marketing. Niche marketing is typically a
small market whose needs are not well secured. The GP Ltd follows high quality with high
price policy but the consumers are

99
still ready to buy their products at high price because of its quality. So, the company mainly
aims quality conscious customers.
GP Ltd has three segments namely industrial market, domestic market and export market.
About 50% sales constitute industrial sales. GP has positioned its brands in upper end of
market and targets those segments that require the quality it offers backed by willingness to
pay. GP’s positioning stands in product performance and resultant value for processing stands
in product performance and resultant value for money. It is backed by GP’s commitment to
harness the latest technologies in wood processing field and continuously upgrade its process
and machinery.
MARKET SEGMENTATION

GREENPANEL is well-established organization manufacturing high quality goods. Company

believes in quality. In order to ensure the quality each batch of the products will undergo quality
tests. Company has an efficient marketing strategy. The prices of GP’s products are
comparatively high, but of high quality. The company is targeted at the high income as well as
at the low-level income groups GP is marketing more than 300 products.
Products are segmented as;

Domestic INSTITUTIONAL

AUTOMATIVE EXPORT

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0
 PROMOTION

Long term brand building is undertaken through personal selling and direct mail marketing
besides promotional visits by selling agents. In general, promotional activities include
advertising, public relation and publicity. In the case of GP’s there is a separate department for
public relations. But the very important point to be noted is that till now there has been no
advertising. The main promotional activities of GP include conducting and participating
exhibitions, trade fair etc.to attract potential customers. They have more of a direct selling
approach. It has around 40 sales depots nationwide.
DISTRIBUTION CHANNEL

Distribution channel is just like a pipeline through which water flows from a source to final
destination. Marketing channels make possible the flow of goods from a producer through
intermediaries to a buyer.

1. Zero level channel

In which the company sends catalogues, price list, data regarding major certification etc.to the
potential customers. In direct marketing company gives a cash discount of 5%-%.

2. One level channel

Company sales depots customers Company agents’
customers

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1
MARKETING MIX

Plywood Section: -

Product

GP produce a range of plywood to suit specific requirements in both industrial as well as

domestic sector of the market. To support its philosophy of providing value added products,
only Phenol bonded boiling water-resistant plywood and other superior grades are
manufactured by GP. Some of the plywood manufactured by GP are:
 BWR treated Plywood conforming to IS:303
 BWP treated Plywood conforming to IS:303
 Marine Plywood conforming to IS:7
 Resin Surfaced Shutting Plywood conforming to IS:4990
 Fire Retardant Plywood conforming to IS:5509
 Decorative Plywood conforming to IS:1328
 Aircraft Plywood conforming to IS:709

PRICING
Consequent to superior raw material and additional processing incorporated in the
manufacture of GP panel; they are more expensive than product offered by others and state of
the art technology also adds to final product cost. However, the additional perceived value
arising out of such investment is more than marginal cost addition and hence customers are
willing to retain loyal to GP’s products.

PLACEMENT
GP’s products are sold through exclusive retail outlets, which are either owned by the company
or commission agents representing the company. In some areas, established dealers are
appointed to increase availability and reach of the products. Company directly deals with
customers

SUBSTITUTE PRODUCT
GP’s products have heavy duties, but still, it has no cost-effective
substitutes for the reason that the end user does not allow any compromise regarding its quality.

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2
HARDBOARD SECTION

Product
GP’s board ‘WESTON’ possesses superb physical and mechanical properties and is
indispensible to manufactures of automobiles, door pads, shoe heels, clocks, fiber and drum
lids among many other applications. GP’s hardboard is exported to many countries in the world
where it holds its own position against the best brand in the world.

The commonly demanded kinds of hardboards are:

 Standard hardboards conforming to IS:1658
Used for manufacture of furniture, shoe heels etc.
 Oil tempered hardboard conforming to IS:1658
Used in manufacture of furniture, shoe heels etc.
 Perforated hardboard conforming to IS:1658
Used for interior decoration, auditorium interiors etc.
 Pre finished GPLAC hardboard
Used in automotive coach building manufacture of handicrafts, toys

PRICING
GP is able to offer its hardboard at a very competitive price due to an efficient production
process using the latest machinery. As a result of this, product is being sold at huge premium in
the retail market.

PROMOTION
The hardboard produced by the GP is short in supply, but the market it serves is rapidly
growing. As a result of this there is absolutely no need for any short-term promotion practices.

PLACEMENT
Hardboard is a product of mass consumption. So, GP in addition to its own outlets utilizes the
established dealer networks in various towns and cities to increase availability and product
reach.

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3
SUBSTITUTE PRODUCTS
Being the most economical building material used today, hardboard has cost effective
substitute material. When its economy is compared with quality control that GP is able to
offer, hardboard offers tremendous value for money.

STRUCTURE OF THE DEPARTMENT

Managing Director

Marketing manager

Marketing co-ordinator

Business manager

Marketing officer

Executives

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4
EXPORT
IMPORT
DIVISION

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5
EXPORT / IMPORT DIVISION

PURPOSE
To popularize the products to the international level. The company’s Exports are carried out as
per the export policy of Government of India and responsibilities lies in the hands of the
Import /Export Executive of the company.

FUNCTIONS
Export functions are carried out by the General Manager and the Import / Export in charge.
Quotation or Performa invoice is sent to customs along with the details of the products to be
supplied with samples wherever required for the approval.
Export orders are obtained against payment through Letters of Credit. (LC) or other terms of
payment.
Once the price is approved, the customs offer L.C, covering value, quantity, destination of
supply, specification etc. and arrange for payments according to the terms.
On confirmation of order and consequently on the placement of order and opening of L.C or
arranging for payment according to terms of the L.C, foreign buyer’s product note is sent to the
production department to start production strictly as per the requirement for the foreign buyer as
per the delivery schedule given by them.
As soon as the cargo is ready, necessary clearance is obtained and cargo is moved to the nearest
post or the shipment to the destination port. As desired house stuffing is also arranged according
to requirements of the import in GP factory by container from the port to works.
The cargo is handed over at the port to GP’s clearing agents and they are undertaking all the
customs formalities to get a clarity for the shipment within.

10
6
The least possible time, including getting back to the ARM from the customs immediately after
shipment for submissions to the Central Excise Department.
Once the shipment is affected and bill of lading obtained from the customer agent, the shipment
documents are prepared for foreign buyer and negotiated with GP, bankers immediately.
After negotiation of L.C of arrangement for payment according to the terms, the payment for
the cargo dispatch to the customs is obtained, customs take realize to the cargo on its arrival at
the destination port and also takes recent of original documents from their banker.
Proper care and supervision are taken in all process of production, packing and sufficient care
taken to ensure the product exported are of top most quality and to keep up its product image
high in the international market.
The section takes sufficient care to fix the price for export and ensure cost reduction in all
stages where ever possible such as packing, transport etc. to obtain better financial return in
each and every transaction.
Most of the products are exported to UAE, Africa, Australia, China, Sweden, USA, New
Zealand, Sri Lanka and other parts of the world.

HIERARCHY OF EXPORT / IMPORT DEPARTMENT

Export / Import in Charge

Export / Import in

General Manager (Admin)

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7
 STORES
DEPARTMENT

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8
STRORES DEPARTMENT
GP has two separate stores-Hard Board Stores and Plywood store. Hard board store keeps all
the materials and spare parts necessary for the production of hard board (except timber). Ply
wood stores keep all the materials, and spares needed for the production of plywood (except
timber).
FUNCTIONS

 To send Stores Indent or Purchase Requisition to Purchase Department

 To receive materials, spares, tools and equipment ordered by purchase department
 To ensure inspection of purchase materials
 To enter the receipts of accepted items in records and return the rejected ones
 To keep the materials at proper place in the stores
 To maintain the safety of items from damage, pilferage etc.
 To issue materials on authorized requisitions
 Valuation of stock

PROCEDURE

 Indenting of materials
 Making purchase order by Purchase Department
 After reaching the materials checking the quality, quality etc.
 Receiving the materials
 Materials go to stock

DOCUMENTS

 Stores Indent
 Goods Inward note
 positive Recall
 Goods Register Note
 Card X
 Issue Slip
 Stores Warrant

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9
 TOTAL
QUALITY
MANAGEMENT

11
0
TOTAL QUALITY MANAGEMENT

GREENPANEL has implemented a quality management system considering the aspects of

personnel, inputs, appropriate technology and machinery for the various operational functions
such as production, marketing, purchase, maintenance etc. The quality policy of GP has been
defined by the Managing Director as appropriate to the long-term vision, commitment to
quality, customer perception of GP products and other aspects of the industry. The policy is
reviewed periodically during management review for its continuing suitability. The policy is
communicated to all the employees for a clear understanding and deployment.
GP Ltd. has separate department for total quality management and is well known for its
quality throughout the world it has recognition of ISO 9001-2000 for one of best and
standardized production system in the world. ISO provides a lot of standards for the quality
assurance. GP has both internal and external auditing system. Internal auditing is done every six
months by the concerned department head. External auditing is conducted mainly by the
external certifying body.
The processes needed for the quality management system have been identified and
applied throughout GP. The criteria and methods needed to ensure effective operation and
control of the processes are in place

QUALITY OBJECTIVES

 Suitable equipment and machinery for process control at all stages

 Provision of adequate resources including raw material and personnel to ensure
consistent product quality.
 Well-defined process and product characteristics, to enable monitoring, analysis and
continual improvement.
 Communication of requirements of products including customer requirements, statutory
Regulatory requirements, aspects of Quality Management System including policy and
objectives among all employees.

WORK INSTRUCTIONS

The requirement satisfied by the GP in order to get ISO certification

is the following

o Quality Manual
o Resource Management
o Management Review
o Product Realization
o measurement analysis and improvemen
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1
QUALITY MANUAL
The system procedures deemed necessary by the quality
management system is referred in this manual. Any other document for
planning/operation/control of processes is referred in this manual. The instructions for the
specific tasks that are contributing to quality of product are referred to as work instructions. The
data generated by implementation of the system are maintained as records, which have been
referred to in the appropriate document

RESOURCE MANAGEMENT
GP management is committed to identifying, providing and reviewing the resources
required to sustain the quality management system and improves its performance from time to
time. Resources needs also include those required to enhance customer satisfaction by meeting
customer requirement. It is ensured that adequately skilled personnel are assigned to various
operations.

MANAGEMENT REVIEW
The Management Review is held by a committee headed by the Managing
Director/Executive Director, Management Representatives and all Heads of Departments.
Management Review is performed once in six months and the minutes of the review meeting
are maintained. The Management reviews the continuing suitability of quality policy, objectives
and overall quality management system with respect to information on performance and
feedback from various review inputs.

PRODUCT REALIZATION
Realizing the product that meets the requirements involve translating the
customer’s needs and schedule into product requirements within the facilities available,
carrying out various production operations and ensuring that the
acceptable products reach the depots/dealers and customers. Systems are in place to provide
adequate confidence about these functions

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2
ISO CERTIFICATION
The main objective of International Standards Organization is to produce and publish
international standards.
The GP Ltd is an ISO certified company. The ISO certification was awarded to the company IN
1996 for the quality management system of the hard board and GPLAC prefinished boards. In
May 1999 for another three years and the company has also received the same certification for
its plywood, classified wood, flush loan and block boards.

STRUCTURE OF TQM

MANAGING
DIRECTOR
Management
Representative

Quality Engineer

Train
ee

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3
 RESEARCH
AND
DEVELOPMENT
DEPARTMENT

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4
RESEARCH AND DEVELOPMENT DEPARTMENT
The GP has an in-house R&D Department approved by the Department of Science and
Technology and Council of Scientific and Industrial Research. (CSIR). It has the required
analytical, conditioning and testing facilities for product or process evaluation, rigid quality
control and new technology analysis. The testing equipment available consists of the standard
machines for conducting physical, mechanical and electrical test of all kinds. They include a
weather-o-meter in which the extreme weather conditions of the world can be simulated in
accelerated manner in order to arrive at quick inferences. Karl Fischer, titration equipment,
Torque Rheometer and Permeable gel, Chromatogtaph are available in the testing lab of
GP’sR&D division for accurate analysis of rawmaterail and finished products, the products
developed and modified by the R&D division include DAP (Di-Allyl phthalate) Molding
powder and fiber glass reinforced plastic, sheet Molding Compound (SMC). which find use in
the manufacture of sophisticated products required in highly specialized electrical and
electronic applications’ can also be overlaid on Plywood and Hard board. The manufacture of
DAP molding has been achieved for the first time in South East Asia in the GP. This has put
India on the road to self-reliance in the material of strategic importance.

Material Testing Lab

GP possesses a full-fledged material testing lab which is monitored by its government
recognized R&D division. The Lab is equipped to perform various physical, mechanical and
electrical test specified in the IS specification.
Every day random samples drawn from panels produced in GP’s plants are tested for
conformance to the relevant IS specifications.
The integrity and quality of GP’s testing division can be gauged by the fact that representative
samples drawn from material to be supplied to the Indian Railways, Defense and other
government organizations are tested on its own material testing lab under the supervision of
officials deputed by the respective inspection Agencies

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5
 FINANCE
DEPARTMENT

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6
ACCOUNTS /FINANCE DEPARTMENT
THE GP LTD IS A WIDELY HELD PUBLIC COMPANY. Its share is listed
in Cochin and Madras Stock Exchanges. On 31 st March 2003 Company has 13 Crores Paid Up
Capital of which 8.5 Crores are Equity Shares and the remaining are Preference Shares.
The GREENPANEL Ltd follows the Double Accounting System. Various accounts are
prepared by them to keep their transactions. The following are the main types of accounts kept
by GREENPANEL Ltd.
 Journal
 Ledger
 Sub ledger
To record receipt and payment they maintain 4 records. These include the following Accounts.
 Total debtor account
 Total creditor accounts
 Purchase day book
 Sales day book
They also prepare a commission register. For charging depreciation against fixed assets straight
line method was used.
GP publishes Annual Report every year, which includes the Profit and Loss Account, Balance
Sheet, Accounting Policies of the business etc.

SOURCE OF FINANCE
1. Shares
2. Reserves and Surplus
3. Loans Secures loans
4. Unsecured loans

ACCOUNTING PROCEDURE
GP follow double accounting system and also maintain four types of journals. They are;
1. Cash payment book (CPB)

2. Bank payment book (BPB)

3. Cash receipt book (CRB)

4. Bank receipt book (BRB)

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7
For these four types of journals, a sub ledger is prepared. This sub ledger is classified into
three;
Accounts Receivable Book (ARB) Accounts Payable Book (APB) Personal ledger (PL)
At the end of every month the sum total of the sub ledgers is transferred to the main ledgers.
Then there should have the equality in the amount of the sub ledger and main ledger, i.e., total
amount of sub ledger= Total Amount of Main Ledger
The next accounting procedure is preparing the trail balance. At the end of every financial year,
profit and loss account and Balance Sheet is prepares, from which financial position of GP is
noticed
CAPITAL STRUCTURE
The capital structure GREENPANEL Ltd was made up of equity shares and preference shares
having value of Rs.0 each. They issue only redeemable preference shares. They also issue
bonus shares at the time of high profit. Their shares are registered in the madras stock
exchange.
Board’s decision. They transfer a certain percentage of profit to the following reserves

 Export-profit reserve
 Share premium reserve
 General reserve
Loans: -
The GP Ltd has the following Loans for financing the long-term requirement of funds.
 Secured loans
 Term loans
 Foreign loans overdraft
 Long-term loans

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8
FOREIGN CURRENCY TRANSCATION
Foreign currency liabilities outstanding as at the balance sheet date are translated to exchange
rates prevailing on the date and the loss or gain arising out of the said transactions relating to
acquisition of fixed assets is adjusted to the cost of relative assets and others are charged to the
profit and loss account

Revenue Recognition
Revenue from sales has been recognized on raising of sales invoices on respective parties and is
inclusive of excise duty but exclusive of sales tax.

DIVIDENDS
Due to shortage of operating profit, directors are not recommending any dividend for the
accounting year ended.

Retirement Benefits:
Contribution to Provident Fund is made monthly, at the rate prescribed by the Employees’
Provident Fund Act and charged to the Profit and Loss account on accrual basis
The company has a arrangement with LIC of India under the Employees Group Gratuity cum
Assurance scheme to administer its gratuity scheme and the annual premium paid/payable
is charged to the Profit & Loss Account. The accruing liability for Gratuity to employees is
ascertained on actuarial basis and provided for.
Leave encashment benefits payable to employees including the accrued thereon (taken on
estimate basis) are charged to the Profit & Loss Account.

Income Tax
Provision for income tax is made based on the assessable income as computed in accordance
with the provision of the Income Tax Act, 1961. Timing differences between accounting
income and taxable income capable of reversed in subsequent years are recognized as deferred
tax.
GP publishes Annual Report every year, which includes the Profit and Loss Account, Balance
Sheet, Accounting Policies of the business etc.

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9
STURCTURE OF THE DEPARTMENT

Managing Director

Company secretary

Chief Accounts Officer

Finance Manager

Cashier
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SWOT ANALYSIS

SWOT stands for Strength, Weakness, Opportunities and Threats. Strengths and Weakness are
the internal factors of the company where as Opportunities and Threats are external factors.
SWOT Analysis is the tool for auditing an organization and its environment. It is the first stage
as planning and helps marketers to focus on key issues have been identified, they feed into
marketing objectives. It can be used in conjunction with other tools as audit and analysis.

STRENGTH

The company has been maintaining a high quality for its products and as its products are well
accepted in the market by quality conscious customers, it does not anticipate any marketing
problem. They are considered to be the “The Leaders in Quality Since 1945”.

 The company has a well-established R&D unit, one of the best kinds in the wood-based
industry.
 The company is duly equipped to develop new products to meet the requirements of the
market.
 The products of GP are certified by ISO.

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WEAKNESS

There is an acute shortage of good raw materials which has forced the company to import a
substantial portion of its main raw material viz. timber, which has also seen a considerable
increase in price.
 Lack of good distribution network as compared to the competitors.

 Promotion of competitors is better to that of GP. The Company concentrates only on

Industrial Market.

 The price of GP’s products is high as compared to its competitors.

OPPORTUNITIES

 The company is a leading supplier to Railways, Defense, Automobile, Electrical,

Transport, Civil Aviation and other industries.

 Several products have been developed for the specific requirements of the Automobile,
Transport and communication sectors such as Densified wood etc. and these products
which have technological advantages over competitive products.

 The Company diversified from the production of chest and commercial plywood to
manufacture Decorative Plywood, Block Boards, Shuttering Plywood and Aircraft
plywood.

 The products of the Company are being exported to Germany, France, U.S.A, Sweden,
West Asia and South Asian countrie

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THREATS

 The high- power tariff and increasing cost of furnace oil and other petroleum products
and chemicals.

 There are many medium scales and small-scale plywood industries. They fix low price
for their products.

 In some product ranges, imported items are available at lower cost than is currently
produced in India.

 In general, the working of the company has been adversely affected by the effects of
Globalization.

FINDINGS

 Because of the increasing demand, now the company has changed their distribution
system in order to reach more parts of the state.
 Due to the high standard of quality maintained by the company, its production costs are
relatively high so that company facing a serious problem and wants to reduce the price.
 The company’s various operations on raw material performed in sequence and the
machines are placed along the product flow line. Because of this, the company’s
products get completed in lesser time and also have a smooth and continuous work flow.
 The company gets 25% of the profit from the exporting.
 Company concentrates all over the market.
 Still the company is not computerized fully.
 The company maintaining 0 % wastage.
 Promotional expense is very less.
 GP focus on quality

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 SUGGESTIONS

 It is desirable to launch an advertising campaign to attract more customers

 It is advisable to maintain and efficient market intelligence system and advice mgt of the

changing needs of the market.

 The company may introduce more measures such as fencing of machineries, which will protect

the workers from accidents.

 The company may prepare budgets for each activity which will provide it a better control

and coordination mechanism. This will aid in reduction of production costs.

 The company can save time and cost through the computerization.

 The company have to follow more safety measures because there is a risk of fire in the factory

layout.

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 CONCLUSION

GREENPANEL ltd., the second largest wood processing industry in South East Asia, as a

bright future in this field. During the running period since 1945, the co. achieved various

milestones. The high-end production technology of GP is well acknowledged among the wood

processing industries in India.

The GP Ltd., achieved 0% utilization of raw materials due to its integrated production

system. Therefore, it would be apt to call GP Ltd., ‘a company with a conscience’ . GP

Ltd., stands for superior product performance and provides value for money to its customers. It

is backed by GP’s commitment to harness the latest technology in wood processing industry

and continuously upgrade its processes and machinery. Due to the high quality maintained, the

company has found aready market both India and abroad. The company does not aim at

competing with the local manufactures but wants a main player in the plywood export.

Now the company is producing more quantity is hardboards than plywood, because of the

development of technology. Presently the company is operating in loss- the major cause being

globalization. Another reason is the pricing policy of the company. The price level of the

products is higher as compare that of other companies manufacturing similar products. The

company should try to create brand awareness in the local market by advertising in medias and

conducting exclusive exhibitions etc.

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