ORGANIZATION STUDY ON HIJAZ LEATHERS PVT LTD

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ORGANIZATION STUDY ON HIJAZ LEATHERS PVT LTD

  1. 1. “AN ORGANIZATIONATIONAL STUDY ON INDIANLEATHER INDUSTRY WITH REFERENCE TO HIJAZ LEATHERS PVT LTD VANIYAMBADI” SUMMER INTERNSHIP REPORT SUBMITTED TO VEL’S INSITITUTE OF SCIENCE, TECHNOLOGY AND ADVANCED STUDIES (VISTAS) (VELS UNIVERSITY) (Estd.U/s 3 of the UGC Act, 1956) In partial fulfillment of the requirement For the award of the degree of MASTER OF BUSINESS ADMINISTRATION Submitted by MOHAMMED MUZAMMIL M (REG.NO:10301127) Under the guidance of Mr S. SIVA KUMAR.MBA M.Phill SCHOOL OF MANAGEMENT STUDIES (VIBA) VELS UNIVERSITY P.V.VAITHIYALINGAM ROAD,OLD PALLAVARAM CHENNAI-600 117. 1
  2. 2. _______________________________________________________________ School of Management Studies (VIBA) BONAFIDE CERTIFICATEThis is to certify that internship report titled “ANORGANIZATIONATIONAL STUDY ON INDIAN LEATHERINDUSTRY WITH REFERENCE M/S HIJAZ LEATHERS PVTLTD VANIYAMBADI” Is a Bonafide record of work carried out byMOHAMMED MUZAMMIL.M school of management studies, underVELS UNIVERSITY submitted in partial fulfillment of therequirements for the award of the degree of master of BusinessAdministration from the VELS UNIVERISTY.M/S S.PREETHA. MR. S.SIVA KUMARHOD-Management Studies (PROJECT GUIDE)Internal Examiner External Examiner 2
  3. 3. DECLARATIONI hereby declare that this project work entitled “AN ORGANIZATIONALSTUDY ON INDIAN LEATHER INDUSTRY WITH REFERENCE TOM/S HIJAZ LEATHERS PVT LTD “ Vaniyambadi in partial fulfillment ofMaster of Business Administration Course of the Vels University isrecord of original work done by me under the guidance of Mr Shiv Kumar.Lecturer of department of management studies, VELS UNIVERSITYPLACE:CHENNAI MOHAMMED MUZAMMIL MDATE: REG NO:103011127 3
  4. 4. 4
  5. 5. Acknowledgement “FOR EVERY OPPORTUNITY MAY GOD BE THANKED”I am extremely thankful to the management of Vels institute of businessadministration for providing me the opportunity to undergo M.B.A course during theacademic year 2009-2011.I would also like to express my sincere thanks and gratitude to our chancellorDr. Ishari k. Ganesh, M.com., Ph.D., for his kind words.I would also like to express my sense of gratitude to our DeanDr. P. Govindarajan ,M.A., Ph.D., for giving us valuable guidance andencouragement.I would also like to express my sincere thanks to our head of the departmentMrs. S.Preetha, M.B.A. , M.Phil., for giving us good guidance and suggestion. I would like to express my deep sense of gratitude and sincere thanks to my guideMr S Siva Kumar M.B.A. M.Phil,. for giving me valuable suggestion, guidance andencouragement.I also wish to express my sincere gratitude to MR.M.MD.MUNEER. MANAGINGDIRECTOR . has taken great pleasure to complete my project successfully and others,who had helped me by providing sufficient information In “HIJAZ LEATHERSPVT LTD” Vaniyambadi.I also extend my sincere and heartfelt thanks to my family members and my friends, whogive their full co-operation and valuable help throughout my project. MOHAMMED MUZAMMIL M 5
  6. 6. CONTENTSS.L.NO PARTICULARS PAGE NO. CERTIFICATE DECLARATION ACKNOWLEDGEMENT I INTRODUCTION. 7 INDIAN LEATHER INDUSTRY AN OVERVIEW. II. COMPANY PROFILE. 10 III. OBJECTIVE & LIMITATION OF STUDY 14. IV. DEPARTMENTATION ANALYSIS. 21. V. FINDING & ANASLYSIS. 34. VII SUGESTION 41. VIII CONCLUSION 52. XI. BIBLOGRAPHY 54. 6
  7. 7. 1.INTRODUCTION 7
  8. 8. 1. Introduction.Chronologically the birth of Leather in India dates back to 3,000 years B.C. Theinnate strengths, innovative technology and marketing strategies have converted thecomparative advantage of India into a commercial success making the country acynosure of Leather and Tanning in the Global Leather Map.1.1 The Industry- Economic SignificanceThe Euro 5.25 Billon, Indian Leather Industry – 6th largest in the World, is one of themajor established manufacturing industries in the modern as well as traditional sector.It is an indigenous industry in which the country is well endowed with an affluence ofraw materials, skilled manpower, innovative technology, increasing industrycompliance to international environment standards and the dedicated support of theallied industries. The industry has undergone a structural change during the last threedecades, from merely an exporter of raw material in the sixties to that of value addedproducts occupying a place of prominence in the Indian economy in terms of foreigntrade, employment generation and growth and is among the top ten foreign exchangeearners for the country, gradually parading towards the magic figure of Euro 5.27Billion3 of exports by 2013-14.1.2 Industry – StructureLeather product / leather industry in India is spread over organized as well asunorganized sector dominated by the presence of family units. The small scale,cottage and artisan sectors account for over 90% of the total production. Table 1- Sectoral Classification of the Production Units Turnover Type of Unit Small < Euro 2.25 Million Medium Euro 2.25 -11.25 Million Large Euro11.25 – 41.25 Million1.3 Major production CentersThe major production centers for leather and leather products are located in TamilNadu -Chennai, Ambur, Ranipet, Vaniyambadi, Trichy, Dindigal; West Bengal –Kolkata; Uttar Pradesh - Kanpur, Agra and Noida; Maharashtra – Mumbai;Punjab – Jallandhar; Karnataka – Bangalore; Andhra Pradesh – Hyderabad;Haryana - Ambala, Gurgaon, Panchkula and Karnal and Delhi. 8
  9. 9. Table 2- Top 8 States in Terms of Manufacturing Units States Footwear Units ( Leather Total Factories + Household) Garments + Leather Goods Units Tamil Nadu 160 598 758 West Bengal 230 436 666 Uttar Pradesh 268 22 290 Haryana & Punjab 163 8 171 New Delhi 112 43 155 Andhra Pradesh 128 10 138 Karnataka 48 40 88 Maharashtra 20 48 68 Table 3 - Estimated Production Capacities: Item Capacity Leather Footwear 909 Million Pairs Leather Shoe Uppers 100 Million Pairs Non – Leather Footwear 1056 Million Pairs Leather Garments 16 Million Pieces Leather Goods 63 Million Pieces Industrial Gloves 52 Million Pairs Saddlery & Harness 12.50 Million PiecesSources CLRI DATA. Central Leather Research InstituteDistinguishing Features. Own raw material source - 21% of world cattle & buffalo and 11% of world goat & sheep population are housed in India. 2 Billion sq feet of leather produced annually. 2nd largest producer of Footwear and Leather Garments. 3rd largest producer of saddlery and harness items. Generating employment for 2.5 Million people, mostly from the weaker sections with 30% women predominance. Nearly 60-65% of the production is in the small / micro sector. Promising technology inflow and Foreign Direct Investment. World-class institutional support for Design and Product Development, Human Resources Development and R&D activities. Presence of support industries like leather chemicals and finishing auxiliaries. Presence in major markets-Long European experience and strategic location in Asian landmass. 9
  10. 10. 2.COMPANY PROFILE 10
  11. 11. 2.Company profile.In the year 1982 a company has started in the name of “M/S MAROOF LEATHEREXPORTS”. No 1107 cutchery road, Vaniyambadi.635751. With partnership concern4 partners, Later name of the company had been changed to “M/S HIJAZLEATHERS” established in 1990 is a leading manufacturer and exporter of HighQuality Finished Leather. The company is located at a place that has both manpowerand raw material in abundance. Equipped with modern machineries, the company hasa capacity to handle any quantity of tanning. Hijaz Leathers offers a complete range offinished leather at competitive prices. In-house leather sourcing facility helps in strictquality control, right from tanning up to the finished product stage. The company isalso a member of Council for Leather Exports and National Chamber of Commerce.In the year 2005 company had become “HIJAZ LEATHERS PVT LTD” wasestablished with the diligent efforts of three young and energetic youths with the soleaim of producing quality finished leathers. The honorable CEO Mr. P MohammedYousuf has also helped in the fast and steady growth of the enterprise via his deepand in-depth knowledge. We are also reckoned as one of the most preeminent FineLeather Gloves Exporters,Garments and Suppliers in India. Moreover, we have alsogained specialization in the dealing of Leather Fashion Gloves and Synthetic LeatherGolf Gloves. .presently it’s maintain and managed by Mr. M.MD.MUNEER, Mr.P.MD YOUSUF, and Mr. C.MD.PARVEZ. Are the director. In the year 2009company had got ISO 9001 -2000 certified company?The Vaniyambadi unit is ear marked for processing leather from raw to finished stageand further value added goods are manufactured at Vaniyambadi unit. The companynot only produce no the basis of their own resource by procuring raw and hides andskin arranging for labour and finally finishing the goods as well as converting intoreadily usable article for their own sake but,they also do job work for the otherconcern of the industry.Daily 100 atleast 100 labors are employed to carry out the work at the tannery,apartfrom that permanent staff employed at the administrative department. They exporttheir product to foreign countries such as “Indian Subcontinent, East Asia, MiddleEast and South East Asia”. HIJAZ LEATHER PVT LTD Is established in two units. The total factory area (in square feet) UNIT I - 25,000. No 1104,cutthery Road, Vaniyambadi -635 751. 11
  12. 12. Tamil Nadu, India Website: www.hijazleathers.com Email id hijazleathersindia@yahoo.com. UNIT II - 20,000. No 1056/A-1, C N A ROAD, Vaniyambadi - 635751, Tamil Nadu, India. HEAD OFFICE ADRESS: No 17 Wuthukattan street, Periament, Chennai 600 003, They are an Indian supplier of, Clothing, Leather or Suede Clothing. They are the larger exporter of leather garments.2.1 Products :Manufacturers and Exporter of - High Quality Finished Leather. Finished leathers-Nappa Nubuck ,Antique Aniline Sheep Lining Goat Lining Suede.1. Nappa.2. Drum Dyed. 3.Metalic. 12
  13. 13. 4.Analine.5. Suede6. Napalane. 13
  14. 14. 2.2About the company: ClienteleOur clients are located in every nook and corner of the world and are placing hugeand repeated orders for the leather and leather gloves. Additionally, customers areoffered quality products that help in acquiring cent percent satisfaction. Quality Policy / ProcessesAs our prime motto is to serve quality products to our clients, various stringentquality tests are conducted in our in-house laboratory and to satisfy our customerswe also test in SGS laboratory. Additionally, all the testing procedures areperformed under the supervision of our quality control executives. InfrastructureOur state-of-the-art tanneries are equipped with the technologically advanced toolsand machineries that assist in the production of 10 million square feet of finishedleather per annum. Additionally, providing finished leather and allied products asper the specifications of the clients have also become an easy task.Fact Sheet: Year of Establishment 1983 Nature of Business Manufacturer, Exporter Major Markets Indian Subcontinent, East Asia, Middle East and South East Asia.2.3 Location of the Company:The company is located at vaniyambadi. It has the following facilities.1.Supply of the labor: Labor is one of the most important inputs in an industrial enterprises.thisfacility is available in the organization adequately:large numbers of local labors areavailable reguraly near the company.2. Transport facilities: Transport is very important for bringing raw material and this facility is alsoavailable to garment & glove factory in Vaniyambadi is well connected with rail,roadtransport system. 14
  15. 15. 3. Communication Facilities: Similarly good communication facilities Like Internet,Postal,Tele Com and Fax,Available which helps greatly towards the success of the organization.4.Integration with the groups of companies: The area in which Vaniyambadi the leather units is located is fully surrounded byso many tanneries, garment, gloves and shoes units. This company has greatintegration.5. Supply of Operating Power: There is a continuous and adequate supply of power.6. Suitable of land and climate: The land is suiatable for the production of leather and shoe similarly the climatecondition i.e humidity temperature and others atmospheric conditions are also verymuch favourable for the production of finished leather and gloves.7.Availability Of Raw Material: Raw Material are also adequately available.8.Availability of other service: Good housing board facilities, Adequate numbers ofshops,theatres,restaurants,local transport services, rail services and sufficientavailability of water,gas,supply,drainage and disposal are also available. 15
  16. 16. 2.4 Plant layout: Plant layout implies the physical arrangement of machines,equipment and otherindustrial facilities on the floor of factory in such a manner that they may be handledefficiently and effectively. The plant layout of this company is so scientifically designed that is has thefollowing characterstics. 1. Economic in material,handling from various process and easy handling of semi finished and finished goods. 2. Proper and efficient utilization of available floor space. 3. Provison of better supervision and control of operation. 4. To provide adequate safety to the workers from accident. 5. To suggest improvement in production and work methods. 6. Benefits to the workers: a) Lesser number of operation and material handling b) More labor productivity. c) More safety and security d) Better working condition resulting in improved efficiency. 7. In Manufacturing Cost: a) Maintenance and replacement cost are reduced. b) Loss due to waste and spoilage in minimized. c) Better cost control. 8. Production Control and supervision: a) Better and convenient facility b) Result in less inspection activities. c) Provides in less inspection activities. d) Cost and efforts in the supervision of the production process are minimized. 16
  17. 17. 2.4 ORGANIZATION STRUCTURE 17
  18. 18. 2.4 ORGANIZATION STRUCTURE: ORGANIZATION STRUCTURE OF HIJAZ LEATHERS PVT LTD.VANIYAMBADI. 18
  19. 19. 3.OBJECTIVE ANDLIMITATION OF STUDY 19
  20. 20. 3.Objectives and limitation of studyThe project was done in HIJAZ LEATHER EXPORTS PVT LTD,VANIYAMBADI TAMIL NADU. It’s a Leather Export enterpriseknown for its commitment to quality and good values. Leather was the firstclothing fabric over the past few decades. Leather is emerging as a hip look onthe streets and in the office covering men or women, young or old from top tobottom. Thanks to a blend of nature and modern technology, the new look ofleather is soft and supple. Leather has become a very specialized high fashionfabric that requires talented specialists to turn into a quality garment. Theydesign and develop leather garments such as leather jackets men and women,The project is about the study of whole organization including their departmentssuch as Production department, Inventory department ,maintanaincedepartment, accounts department Packing department etc.OBJECTIVES: To study the process of the leather production. The key challenges faced by the organization. Suggestions and remedies to solve the problems. 20
  21. 21. 4.DEPARTMENTATIONANALYSIS 21
  22. 22. 4.DEPARTMENTATION ANALYSIS4.1.PRODUCTION DEPARTMENT.Production is the functional area responsible for turning inputs into finished outputsthrough a series of production processes. The Production Manager is responsible formaking sure that raw materials are provided and made into finished goodseffectively. He must make sure that work is carried out smoothly, and must superviseprocedures for making work more efficient and more enjoyable.Five production sub-functionsIn a manufacturing company the production function may be split into fivesubfunctions: 1. The production and planning department will set standards and targets foreach section of the production process. The quantity and quality of products comingoff a production line will be closely monitored. In businesses focusingon lean production, quality will be monitored by all employees at every stageof production, rather than at the end as is the case for businesses using . 2. The purchasing department will be responsible for providing the materials,components and equipment required to keep the production process runningsmoothly. 3. The stores department will be responsible for stocking all the necessarytools, spares, raw materials and equipment required to service themanufacturing process. Where sourcing is unreliable, buffer stocks will needto be kept and the use of computerised stock controlsystems helps keep stcoksat a minimal but necessary level for production to continue unhindered. 4. The design and technical support department will be responsible forresearching new products or modifications to existing ones,estimating costs for producing in different quantities and by using differentmethods. It will also be responsible for the design and testing of new productprocesses and product types, together with the development of prototypes. 5. The works department will be concerned with the manufacture of products.This will include the maintenance of the production line and other necessaryrepairs. The works department may also have responsibility for qualitycontrol.A key aspect of modern production is ensuring quality. The term qualitymeans fitness for purpose i.e. a product, process or service should do exactly what isexpected of it. 22
  23. 23. 4.1.1 PROCESS OF LEATHER CHART. LEATHER PROCESSING CHARTS 23
  24. 24. 4.1.2.PRODUCTION PROCESS:The leather manufacturing process is divided into three fundamental sub-processes: Pre Tanning stages, tanning, and Post Tanning. All true leatherswill undergo these sub-processes. A further sub-process, surface coating, can beadded into the leather process sequence, but not all leathers receive surfacetreatment. Since many types of leather exist, it is difficult to create a list ofoperations that all leathers must undergo.Its Initialy Divided Into Three Stages They Are First Stages - Pre Tanning. Second Stages - Tanning. Final Stages - Post Tanning.1st Stages.Pre Tanning.The Pre Tanning stages are when the hide/skin is prepared for tanning. During thepreparatory stages many of the unwanted raw skin components are removed. Manyoptions for pretreatment of the skin exist. Not all of the options may be performed.Preparatory stages may include. 1. Preservation: The natural fibers of leather will break down with the passage of time. Acidic leathers are particularly vulnerable to red rot, which causes powdering of the surface and a change in consistency. Damage from red rot is aggravated by high temperatures and relative humidities and is irreversible. Exposure to long periods of low relative humidities (below 40%) can cause leather to become desiccated, irreversibly changing the fibrous structure of the leather. Various treatments are available such as conditioners, but these are not recommended by conservators since they impregnate the structure of the leather artifact with active chemicals, are sticky, and attract stains. 24
  25. 25. 2. Soaking –for purposes of washing or rehydration is reintroduced. Water3. liming: –In Liming for parchment or leather processing, the hides are soaked in an alkalisolution by a drum/paddle or pit-based operation where four main objectives aremet. The objectives are : Removal of interfibrillary proteins. Removal of Keratin proteins. Collagen swelling due to the alkaline pH. Collagen fibre bundle splitting.Liming operations of cattle hides usually last 18 hours and are generally associatedwith the alkaline phase of beamhouse operations. Unwanted proteins and "opening up" is achieved.4. Unhairing - the majority of hair is removed. In the tanning industry the unhairing stage concerns the removal of animal hair from the skin by chemical burning of the hair root, or by chemical degradation of the hair shaft. The type of hair removal depends on the type and length of the hair itself. Two main groupings of hair removal exist: painting and drum/paddle/pit unhairing. Sheepskins—or animals with long hair (e.g. wool)—use the painting method to remove the hair from the follicle. Animals with shorter hair (e.g. cattle hides) can have their hair removed in a process vessel. Historically, scalding and singeing were other methods used to remove hair from hides. These methods are still used today to some extent, in hides not destined to be used for leather. Chemical Used. The chemicals used for unhairing are numerous. Traditionally, alkalis such as lime (calcium hydroxide) or soda ash (sodium carbonate) were used. These treatments were lengthy and the hair retention was usually high. This meant a manual scraping of the hair from the follicle was required. It is now known that lime (an alkali with a low solubility) and weak alkalis cause an immunisation (to the action of chemicals) of the keratin. 25
  26. 26. To increase the speed of unhairing and to lower hair retention rates, sharpening agents are added. The most common is sodium sulfide. Sodium sulfide, at pH values greater than 11.5, break the disulfide bridges of cystine (found in keratin) and result in the collapse of the hair or loosening of the hair resulting in depilation. Excessive sharpening agent result in hair pulping. Controlled exposure of sharpening agent, or other alkali, to the hair will result in hair-save unhairing (during which the hair can be removed intact from the process vessel). 5 .Fleshing – Subcutaneous material is removed. 6.Splitting – The hide/skin is cut into two or more horizontal layers. 7. Reliming – The hide/skin is further treated to achieve more "opening up" or more protein removal. 8.Deliming – liming and unhairing chemicals are removed from the pelt. 9.Bating – Proteolytic proteins are introduced to the skin to remove further proteins and to assist with softening of the pelt. 10.Degreasing – Natural fats/oils are stripped or as much as is possible from the hide/skin13.Pickling – lowering of the pH value to the acidic region. Must be done in the presence of salts. Pickling is normally done to help with the penetration of certain tanning agents, e.g., chromium (and other metals), aldehydic and some polymeric tanning agents 26
  27. 27. 2nd StagesTanning:Tanning is the process that converts the protein of the raw hide or skin into a stablematerial which will not putrefy and is suitable for a wide variety of end applications.The principal difference between raw hides and tanned hides is that raw hides dry outto form a hard inflexible material that can putrefy when re-wetted (wetted back), whiletanned material dries out to a flexible form that does not become putrid when wettedback. A large number of different tanning methods and materials can be used; thechoice is ultimately dependent on the end application of the leather. The mostcommonly used tanning material is chromium, which leaves the leather, once tanned,a pale blue colour (due to the chromium), this product is commonly called “wet blue”.The acidity of hides once they have finished pickling will typically be between pH of2.8-3.2. At this point the hides are loaded in a drum and immersed in a floatcontaining the tanning liquor. The hides are allowed to soak (while the drum slowlyrotates about its axle) and the tanning liquor slowly penetrates through the fullsubstance of the hide. Regular checks will be made to see the penetration by cuttingthe cross section of a hide and observing the degree of penetration. Once an evendegree of penetration is observed, the pH of the float is slowly raised in a processcalled basification. This basification process fixes the tanning material to the leather,and the more tanning material fixed, the higher the hydrothermal stability andincreased shrinkage temperature resistance of the leather. The pH of the leather whenchrome tanned would typically finish somewhere between 3.8 to 4,Preparatory steps prior to tanning.CuringPreparing hides begins by curing them with salt. Curing is employed to preventputrefaction of the protein substance (collagen) from bacterial growth during the timelag that might occur from procuring the hide to when it is processed. Curing removesexcess water from the hides and skins using a difference in osmotic pressure. Themoisture content of hides and skins gets greatly reduced. In wet-salting, the hides areheavily salted, then pressed into packs for about 30 days. In brine-curing the hides areagitated in a salt water bath for about 16 hours. Generally speaking, curingsubstantially reduces the chance of spoilage by bacteria. Curing can also be done bypreserving the hides and skins at a very low temperature. 27
  28. 28. In a process known as soaking, the hides are then soaked in clean water to remove thesalt and increase the moisture so that the hide or skin can be further treated.Liming process of hides and skinsAfter soaking, the hides and skins are taken for liming: treatment with milk of lime (abasic agent) that may involve the addition of "sharpening agents" (disulfide reducingagents) like sodium sulfide,cyanides, amines etc. The objectives of this operation aremainly to: Remove the hairs, nails and other keratinous matter. Remove some of the interfibrillary soluble proteins like mucins. Swell up and split up the fibres to the desired extent. Remove the natural grease and fats to some extent. Bring the collagen in the hide to a proper condition for satisfactory tannage.The weakening of hair is dependent on the breakdown of the disulfide link of theamino acid called cystine, which is the characteristic of the keratin classof protein that gives strength to hair and wools(keratin typically makes up 90% of thedry weight of hair). The hydrogen atoms supplied by the sharpening agent weakenthe cystine - cysteine molecular link, and the covalent disulfide bond links areruptured, which weakens the keratin. To some extent, sharpening also contributes to"unhairing," as it tends to break down the hair proteins.The isoelectric point of the collagen in the hide (this is a tissue strengthening proteinunrelated to keratin) is also shifted to around 4.7 due to liming, which is an acidic typeof tannage.Unhairing agents used during liming are: Sodium sulfide, sodium hydroxide, sodiumhydrosulfite, , calcium hydrosulfide, dimethyl amine, and Sodium sulfhydrate.The majority of hair is then removed mechanically, initially with a machine and thenby hand using a dull knife, a process known as scudding. Depending on the end use ofthe leather, hides may be treated with enzymes to soften them in a process called"bating." But before bating, the pH of the collagen is brought down to a lower level sothat enzymes may act on it. This process is known as "deliming." 28
  29. 29. Once bating is complete, the hides and skins are treated with a mixture of common(table) salt and sulfuric acid, in case a mineral tanning is to be done. This is done tobring down the pH of collagen to a very low level so as to facilitate the penetration ofmineral tanning agent into the substance. This process is known as "pickling." Thecommon salt (sodium chloride) penetrates the hide twice as fast as the acid and checksthe ill effect of sudden drop of pH.4.1.3 Types Of Tanning:1.Chrome Tanning. Its is invented in 1858, is tanned using chromium sulfate and other salts ofchromium. It is more supple and pliable than vegetable-tanned leather, and does notdiscolor or lose shape as drastically in water as vegetable-tanned. It is also known aswet-blue for its color derived from the chromium. More esoteric colors are possibleusing chrome tanning. 29
  30. 30. 2.Vegetable Tanning.Vegetable tanning uses tannin (this is the origin of the name of the process). Thetannins (a class of polyphenol astringent chemical) occur naturally in the bark andleaves of many plants. Tannins bind to the collagen proteins in the hide and coat themcausing them to become less water-soluble, and more resistant to bacterial attack. Theprocess also causes the hide to become more flexible. The primary barks, processedin Bark Mills and used in modern timesare chestnut, oak, redoul, tanoak, hemlock, quebracho, mangrove, wattle (acacia;see catechu), and myrobalan. Hides are stretched on frames and immersed for severalweeks in vats of increasing concentrations of tannin. Vegetable tanned hide is flexibleand is used for luggage and furniture.3.Aluminium Tanning:Tawing is a method that uses alum and aluminium salts, generally in conjunction withother products such as egg yolk, flour, and other salts. The leather becomes tawed bysoaking in a warm potash alum and salts solution, between 20°C and 30°C. Theprocess increases the leathers pliability, stretchability, softness, and quality. Addingegg yolk and flour to the standard soaking solution further enhances its fine handlingcharacteristics. Then, the leather is air dried ("crusted") for several weeks, whichallows it to stabilize. Tawing is traditionally used on pigskins and goatskins to createthe whitest colors. However, exposure and aging may cause slight yellowing over time 30
  31. 31. and, if it remains in a wet condition, tawed leather will suffer from decay. Technically,tawing is not tanning.[10]Depending on the finish desired, the hide may be waxed, rolled, lubricated, injectedwith oil, split, shaved and, of course, dyed. Suedes, nubucks etc. are finished byraising the nap of the leather by rolling with a rough surface.The first stage is the preparation for tanning. The second stage is the actual tanningand other chemical treatment. The third stage, known as retanning, applies retanningagents and dyes to the material to provide the physical strength and properties desireddepending on the end product. The fourth and final stage, known as finishing, is usedto apply finishing material to the surface or finish the surface without the applicationof any chemicals if so desired.3.Finishing.For some leathers a surface coating is applied. Tanners refer to this as finishing.Finishing operations may include: Oiling. Oiling is a process whereby leather is hand coated (usually by brush or tampon) with either a raw (un-emulsified) oil or a combination of raw oil, blended with emulsified oils and a penetrating aid. Hand oils can include fragrant oils that help with the smell associated with the leather, e.g., Pine Oil. Hand oils commonly consist of sulfated vegetable oils, e.g. sulfated castor oil. Oiling provides the leather with lubrication and allows it to flex repeatedly without cracking. Leather fibres that are dry and un-lubricated break very easily. Oiling does impart colour and an element of water resistance. Oiling would normally be performed on full grain aniline leathers. The most common type of leather oiled is vegetable tanned leather. Padding. The padding clears an area around the content (inside the border) of an element. The padding is affected by the background color of the element. The top, right, bottom, and left padding can be changed independently using separate properties. A shorthand padding property can also be used, to change all paddings at once. Buffing. 31
  32. 32. Leather from which the top surface has been removed by abrasion. Oftenknown as suede or nubuc.Spraying. of chemical season that mixed with water and applied on skin.It’s a mixtureThis mixture contain Pigment: Its color solution that are applied on the top of skin. Dye solution Its is another type of color solution.it depends on the article. Laker: It’s a chemical solution that fixing color. Curtain coating.Curtain Coating is a process in which the object or substrate to be coated isguided through a curtain of fluid located in a gap between two conveyors. Themechanism is formed by a tank of fluid from which a thin screen falls down inbetween the two conveyors. The thickness of the coating layer that falls uponthe object is mainly determined by the speed of the conveyor and the amount ofmaterial leaving the tank (Pump Speed). Curtain coating is a premeteredmethod, which means that the amount of liquid required is supplying from thetank to the screen in order to be deposited on the substrate.Polishing.Polishing is the process of creating a smooth and shiny surface by rubbing it orusing a chemical action, leaving a surface with a significant specularreflection (still limited by the index of refraction of the material according tothe Fresnel equations.).In some materials (such as metals, glasses, black ortrasparent stones) polishing is also able to reduce diffuse reflection to minimalvalues. When an unpolished surface is magnified thousands of times, it usuallylooks like mountains and valleys. By repeated abrasion, those "mountains" areworn down until they are flat or just small "hills." The process of polishingwith abrasives starts with coarse ones and graduates to fine ones.Polishing with very fine abrasive differs physically from coarser abrasion, inthat material is removed on a molecular level, so that the rate is correlated tothe boiling point rather than to the melting point of the material being polished. 32
  33. 33. Plating.Plating is a surface covering in which a metal is deposited on a conductivesurface. Plating has been done for hundreds of years, but it is also critical formodern technology. Plating is used to decorate objects, for corrosion inhibition,to improve solderability, to harden, to improve wearability, to reduce friction,to improve paint adhesion, to alter conductivity, for radiation shielding, and forother purposes. Embossing.Embossing is the process of creating a three-dimensional image or designin paper and other materials.Embossing is typically accomplished by applying heat and pressure with maleand female dies, usually made of copper or brass, that fit together and squeezethe fibers of the substrate. The combination of pressure and heat raises the levelof the image higher than the substrate, while "ironing" it to make it smooth.In printing this is accomplished on a letterpress. The most common machinesare the Kluge Letterpress and the Heidelberg Letterpress.Most types of paper can be embossed, and size is not normally a consideration.Embossing without ink, so that the image is raised but not colored, is called"blind embossing." Embossing used in conjunction with ink, so that the raisedarea is colored, is called "color register embossing." Embossing used inconjunction with foil stamping is called "combination stamping" or "combostamping."Embossing involves a separate stage in the production process, after anyvarnishing and laminating. It requires a separate press run, and is pricedaccordingly. In addition to being used as a design element, embossing can beused to improve the performance of paper products like napkins, diapers, andtissue paper.Ironing.Ironing is the use of a heated tool (an iron) to remove wrinkles from fabric. Theheating is commonly done to a temperature of 180-220 °Celsius, depending onthe fabric.[1] Ironing works by loosening the bonds between the long-chain polymer molecules in the fibers of the material. While the molecules arehot, the fibers are straightened by the weight of the iron, and they hold theirnew shape as they cool. Some fabrics, such as cotton, require the addition ofwater to loosen the intermolecular bonds. Many modern fabrics (developed inor after the mid-twentieth century) are advertised as needing little or no 33
  34. 34. ironing. Permanent press clothing was developed to reduce the ironing necessary by combining wrinkle-resistant polyester withcotton. Toggle. It’s a machine process by which skin is stretched. Measurement. Its final stage of production where every skin are to be measure in decimeter.(dcm).Production department works under instruction of managing director of the companyInitially the process of leather skin that is raw material should follow the Ist stages. Inthat its conversion raw material to wetblue. (works in progress).In 2nd stages wetblue to crust. (semi finished goods). this semi finished goods can besell in the local market based on measurement of skin in terms of dcm.(deci metre) perrate. Or the crust can be used for finishing stages.The chief technician will recive a shade card. It’s a instruction from managing directorabout the article.In the finishing stages based on the order and requirement from the buyers.they aretaking the order. The requirement from the buyer are.Article name: NappaQuantity: 20,000 sqft.Size: 0.6 mm.Rate: 1.2 $.4.2 INVENTORY DEPARTMENT.In the inventory department is control under the managing director. Under inventorydepartment there are two section.1.Chemical section.2.Skin Section. 34
  35. 35. 1.Chemical section. In the chemical section the store keeper maintain the daily records of chemicalconsumption. Dye,Syntan Powder,Fatliqure,Finishing Chemical. The chemical isissued by the order from chief technician. The chief technician will write therequirement of chemical for production process in an format of excel sheet.The excel sheet contain the particular items. 35
  36. 36. Date. Article name Dye name Quantity Drum no. Time Signature of chief tech12/6/2011 BLACK BLACK 25,000 DCM H1 10.00 AM NAPPA SUPRA12/6/2011 DRUM BROWN 14.000 DCM H2 11.00 AM DYED The purchase of chemical order will be issued in a company memo. And the quantity of each material will be physical weighted. Before entering into stock. The stock manager will receive the purchase bill and it will report the purchase bill to managing director. And managing director will make the payment of chemical through cheque. The payment will be issued by the stock managers. 2.SKIN SECTION: In the skin section the store manager keeps the daily records of daily arrivals and dispatching of skin. From raw material to finished goods in maintaining stocks. When the raw material arrived to the factory. The store manager will check the delivery challan. And receive the raw material. The managing director will decide when the raw material is been taken to process. And he will instruct his sub ordinates about the production planning. The managing director has given a power to rise a question skin consumption and daily usage. On the instruction from sub-ordinates the store keeper will issue the raw skin. And the skin will be hand over to chief technician. Chief technician will take care of skin. All entries will be maintain in written hand books and systems. In the format of excel sheets the skin is maintained and each material will allocate a lot no based on the pcs. 36
  37. 37. Date: Time Particulars D.c no Arrival Issued Lot no Dispatch Signature pcs pcs pcs4/6/11 9.00 am Raw skin Hl100 500 Hl-5004/6/11 11.00 am Raw skin 200 Hl5005/6/11 5.00 pm Finished goods HL100 HL500 200 PCS Inventory department will calculate the total counts of issued skin and dispatch skin. And the report of skin consumption will reported to the managing director. the raw material is purchased by the managing director. the purchasing bill will be collected by the store manager. 4.3. Maintenance department: Maintenance department will follow the instruction from managing director. The department will maintain the factory. Buildings, Machine, electrical equipments generators. Maintenance head will check the condition of machine, if the machine found problem. The chief technician of maintenance department will repair the machine. The cleaning of machine will be maintain by maintenance department staff. The decision of replacement of machinery will taken by the management with consult from the other director. The machine is maintain based on the preventive maintenance methods. It will check by department head. and managed by management. The main motive of the Maintenance Department the production must not be stopped. Land, machinery, safety and precaution of employee from accident etc. 4.4 Packing department. After complete of measurement the packing department starts working. The skin is pack with folds of plastics. the measurement slip kept inside the packing. The packing department head will take care of all the skin which is ready to dispatch. Based on the delivery time packing department will issue the packing bundles. 37
  38. 38. The department supervisor will allocate a separate code for each bundle. Thecode contain product description. These code will be used to manage thepacking bundles. During the dispatch of packing bundles code will be check.Delivered through by trucks. 38
  39. 39. 5.FINDING ANDANALYSIS 39
  40. 40. 5.FINDING AND ANALYSIS.There are127 tanneries located in vaniyambadi,vellore district mostly in TamilNadu, are releasing a few large quantity of toxic waste at the time of processingof leather. To prevent from toxic water the waste water has been treated forreverse osmosis process. The quality of liquid waste discharged from thesetanneries varies from 10 to 15 gallons per square feet of hides and skinsprocessed. This comprising waste water, organic particular and toxic chemicalsis discharged in closed drains and the waste water is treated through effluentplant.In that effluent plant is reverse osmosis process that is waste water from water.The waste water is discharged through closed drainage. In the factory the watera separate sump has been constructed for waste water. As shown in the figurebelow.And the water is discharged through a separate meter the figure shown below.these metre will automatically calculate the discharge of waste water in litre.The waste water will be discharge for effluent treatment plant. 40
  41. 41. This Process of waste water is control through “VANIYAMBADI TANNERSENVIRO CONTROL SYSTEMS LTD ” VANITEC. The discharge of wateris to be charged at some amount of rs 0.20 ps per ltr. This meter has beeninstalled in every leather organization.“VANIYAMBADI TANNERS ENVIRO CONTROL SYSTEMS LTD” Issecond largest effluent treatment plant in World. Company that wasincorporated in the year 1986 with the aim of providing waste water treatmentutilities for the benefit of its member-tanneries. The Company services thewaste water treatment needs of its 120 member-tanneries through two CommonEffluent Treatment Plants (CETP) located in Valayampet and Udayendiram. Athird CETP is under completion and will serve another cluster of 17 tanneries inC V Pattarai.Valayampet Sector 110 tanneries 3,120 cubic metres of effluentUdayendiram Sector 10 tanneries 220 cubic metres of effluentC V Pattarai Sector 17 tanneries 440 cubic metres of effluentThe products manufactured by the tanners in Vaniyambadi are being purchasedby reputed and world-renowned buying houses that covers leather garments,leather goods, leather gloves and shoes. 41
  42. 42. Mission of Vanitec:The Company has set for itself targets that are aimed at achieving a comprehensive level ofcompliance with respect to the discharge demands of the regulatory authority.In the pipeline are projects that envisage water recovery through means of applyingmembrane filtration technologies and the disposal of organic solid wastes ( generated bymember-tanneries) through the route of biomethanation that would provide a scientificmethod for the safe disposal of such wastes while producing methane gas that can bepotentially used for power generation.Vaniyambadi is known as ‘Centre of Excellence’ for clothing leathers. Itsmembers have carved a niche in the world market of clothing leather with theirproducts. 42
  43. 43. The Association has been a pioneer in setting up Common Effluent Treatment Plants. The leathers manufactured by its Members are being processed with clean technology with dueregard to the Environmental demands. All members believe in ‘Clean Tanning – Green planning’. There are total Six Common Effluent Treatment Plants for Member – Tanneries in different places in Vaniyambadi, besides other E.T.Ps of individual members. The Association has been responsible for the established of a common facility centre. The Association has also been a pioneer in setting up a training centre in technical collaboration with CL/ under French method (AEPIC) and under the aegis of NLDP Government of India for providing trained man power to the leather Garments, Goods and Gloving Industry. The Association is a member of the following bodies:• The All India Skin and Hide Tanners and Merchants Association, Chennai• Andhra Chamber of Commerce, Chennai• National Chamber of Commerce, Chennai• Hindustan Chamber of Commerce, Chennai• The Tamil Chamber of Commerce, Chennai The Association has its own building with a Conference Hall and it conducts regular meetings. Lectures and seminars for the benefits of its members. Vaniyambadi is a recognized centre for low cost, high quality with a wide range of leather manufactures catering to the needs of a large number of leather products exports. Apart from chemical ,raw material skin and man power is considerable cost of production. The waste water is charged for treatment process. The charge of waste water treatment plant the amount is 100 rs 1000 litre. Daily 100 to 1000 labours are employed in leather sector. To control more environmental pollution. Effluent treat plan is been established. 43
  44. 44. The basic problem and challenges are faced by different tannery. Are maintainby a separate organization which is named as “VANIYAMBADI TANNERSASSOCIATION”. Each tannery had a membership in these association.5.2 Corporate responsibility.The Vaniyambadi Tanners Enviro Control Systems Limited as a goodwillmeasure donated medical equipment worth Rs.2.57 lakh to the VaniyambadiGovernment Hospital.The equipment included X-ray films, bed covers, towels, digital colour metres,cupboards and wheelchairs.5.3 Observation.In production department there is smooth flow of output. Their work is to befound very efficient and effective manner. Based on the requirement from thebuyer they are taking order of skin. In terms of S.Q.F.T (measurement of skin)article design,color, guage (thickness) quality (selection).The managing director of the company had allocated duty to a every individualemployee. They take care of employee. In sense of health and safety.In inventory department there two section that is skin section and chemicalsection. The stock keeper notes the daily maintaining stock of skin and chemicalusage. The way of material handling is very good. Through trolley the transfereach material to different section.In the maintainance department will maintain the machinery,land,electricalsupply,and labour in terms of safety and precaution from accident. The workingculture of the company is found to be good. 44
  45. 45. 5.4 LEARNING.I undergo 4 weeks training under HIJAZ LEATHERS PVT LTD, which is a exportenterprises. In this organization during 10 days I studied about the Productiondepartments,(from Raw process to Finished leather Goods). Then I worked inInventory department and maintenance department in which I studied about allorganization function and then rest of the days I analyzed the problems oforganization.1. The summer training is a eye opener for me as it provided the first handexperience of how work is done in international trade.2. It brought confidence in me.3. It gives new experience related to work in export enterprises.4. It gives me experience how the organization works5. It gives me experience how to analyze the problems and solutions.5.5 PROBLEMS AND KEY CHALLENGES ON THE FACEDBY THE ORGANIZATION.Production:Production planning and order fulfilment of large number of articles/styles withreducing lead times; High wastage of leather during production; Low productivity ofmanual intensive processes.Material Management:Availability of leather and accessories as per planned date; Supply order visibility;Inefficient material management.Finance & Other Processes:Accounting not integrated to key business processes; Availability andaffordability of skilled IT manpower. 45
  46. 46. 5.6 Challenges for the tannery sector. Increased cost of production per unit area of finished leather due to stringent environmental norms. Expansion of production capacities – issue in Tamil Nadu due to local laws despite compliance. Increasing demand of raw material – raw hides, skins and semifinished Leathers. Low level of technology in small tanneries. No specific dedicated industrial areas for leather sector in Tamil Nadu. Poor capacity utilization in most tanneries leading higher financial cost and Overheads.5.7 Challenges in leather product sector. Varying levels of technology in the factories depends on the size of the Factories. Low quality of shoes – threat of shift in production to other areas or countries where wages levels are low if the quality is maintained at same level. Most companies work on subcontract basis – design, component selection and methods of production are given by the buyers and do not provide their own fashion collections, however companies are able to make prototypes based on ideas provided by the buyer. Strong requirement to increase quality as well as quantity. Availability of right raw material (finished leather) at right time. Under developed designs for footwear components sector. Absence of own collections and poor development of footwear components, particularly for women’s footwear – Market size of women’s footwear in the world is 63% of total footwear market, but the share of women’s footwear exports out of India’s total footwear is only 34% Meeting manpower requirement under the state of affairs of rapid Industrialization. 46
  47. 47. 6. SUGESSTION 47
  48. 48. 6.Suggestion. 1. Creating required infrastructure and long term plans. 2. Innovative product design at competitive rates 3. Government should increase the drawback rate, reduce delay in export incentives. 4. Increase duty free import. 5. Increase of more information technologies. 6. Better system of HR deparment. 7. Training and development program should me more. 8. The distribution should be more effective.6.2 NEW IDEAS.Computer aided design: The leather companies also need to work withcomputeraided design software to enable their designing processes.Quality Testing Applications: A range of application exist which can beeffectively be used for quality testing of leather and for capturing other essentialcharacteristics There should be more use of information technology and newadvance technologies to make documentation work more easier n efficient.Standard monitoring System: A standard monitoring system allows anorganization to: (i) track the security state of an information system on acontinuous basis; and (ii) maintain the security authorization for the system. Theinformation owner/information system owner1 is responsible for monitoringtheir information systems, ensuring that the system authorization remainscurrent, and updating critical security documents as changes to the system oroperating environment occur. 48
  49. 49. 5’s Methodology: The management should follow the 5’s methodology concepts, which describes how to organize a work space for efficiency and effectiveness byidentifying and storing the items used, maintaining the area and items, andsustaining the new order. The decision-making process usually comes from adialogue about standardization which builds a clear understanding amongemployees of how work should be done. It also instills ownership of the processin each employee. There are 5 primary phases of 5S: sorting, straightening,systematic cleaning, standardizing, and sustaining, safety, security, satisfication.1’s sorting: Eliminate all unnecessary tools, parts, and instructions. Go through all tools,materials, and so forth in the plant and work area. Keep only essential items andeliminate what is not required, prioritizing things as per requirements and keepingthem in easily-accessible places. Everything else is stored or discarded.2’s Straightening. There should be a place for everything and everything should be in its place.The place for each item should be clearly labeled or demarcated. Items should bearranged in a manner that promotes efficient work flow, with equipment used mostoften being the most easily accessible. Workers should not have to bend repetitively toaccess materials. Each tool, part, supply, or piece of equipment should be kept close towhere it will be used – in other words, straightening the flow path. Seiton is one of thefeatures that distinguishes 5S from "standardized cleanup". This phase can also bereferred to as Simplifying.3’s Systematic cleaning. Clean the workspace and all equipment, and keep it clean, tidy andorganized. At the end of each shift, clean the work area and be sure everything isrestored to its place. This makes it easy to know what goes where and ensures thateverything is where it belongs. Spills, leaks, and other messes also then become avisual signal for equipment or process steps that need attention. A key point is thatmaintaining cleanliness should be part of the daily work – not an occasional activityinitiated when things get too messy.4’s Standardizing Work practices should be consistent and standardized. All work stations for aparticular job should be identical. All employees doing the same job should be able to 49
  50. 50. work in any station with the same tools that are in the same location in every station.Everyone should know exactly what his or her responsibilities are for adhering to thefirst 3 Ss.5’s Sustaining. Maintain and review standards. Once the previous 4 Ss have been established,they become the new way to operate. Maintain focus on this new way and do notallow a gradual decline back to the old ways. While thinking about the new way, alsobe thinking about yet better ways. When an issue arises such as a suggestedimprovement, a new way of working, a new tool or a new output requirement, reviewthe first 4 Ss and make changes as appropriate.6’s SafetyA sixth phase, "Safety", is sometimes added. There is debate over whether includingthis sixth "S" promotes safety by stating this value explicitly, or if a comprehensivesafety program is undermined when it is relegated to a single item in an efficiency-focused business methodology.7’s SecurityA seventh phase, "Security", can also be added. In order to leverage security as aninvestment rather than an expense, the seventh "S" identifies and addresses risks tokey business categories including fixed assets (PP&E), material, human capital, brandequity, intellectual property, information technology, assets-in-transit and theextended supply chain8’s SatisfactionAn eighth phase, “Satisfaction”, can be included. Employee Satisfaction andengagement in continuous improvement activities ensures the improvements will besustained and improved upon. The Eighth waste – Non Utilized Intellect, Talent, andResources can be the most damaging waste of all.It is important to have continuous education about maintaining standards. When thereare changes that affect the 5S program such as new equipment, new products or newwork rules, it is essential to make changes in the standards and provide training.Companies embracing 5S often use posters and signs as a way of educating employeesand maintaining standards. 50
  51. 51. 6.3 STRATEGIES FOR ENHACING LEATHER FIRMS1. Overcome the disadvantages of economies of scale.2. Access skilled and educated labour.3. Have better cost effectiveness due to sharing of common costs.4. Have quicker dissemination of information leading to better responsivenessto market challenges.5. Increase competitiveness by sharing best practices in the areas oforganizational capabilities technological innovations, flexible structure andfaster decision making process.6. have better negotiating power. 51
  52. 52. 7. Conclusion 52
  53. 53. 7.CONCLUSION.I had done my summer internship from “HIJAZ LEATHERS PVT LTD ”.InHijaz leather Pvt there are following departments: 1. Production department. 2. Inventory department 3. Maintenance department. 4. Packing department.The conclusion is arrived through analysis and observation. Each department isworking under managing director. Each department head is to report the work tomanaging director.The organization provides a good salary package for employee based onperformance.In production department I had found that smooth flow ofproduction of out in a systematic process.The skin order had been taken on requirement of buyer. Hijaz leather pvt ltd hadmanufacturing lots of article. Some of the basic article. That are used forgarment. 1. Napa 2. Drum dyed 3. Metallic 4. Ana line 5. Suede 6. Napa lane. I conclude that organization working culture of organization is good it has found that most of them expressed view regarding work life,but most of the workers are satisfied. And satisfied with the rules and regulations of the organization.and the relation ship with co-workers and wages scheme.The company need an HR department to stratergies to development of anemployee.employee relation ship. 53
  54. 54. 8. BIBLOGRAPHY 54
  55. 55. 7.Bibliography: 1. http://italiaindia.com/images/uploads/pdf/leather-industry-in-india- 2010.pdf 2. http://en.wikipedia.org/wiki/Leather 3. http://www.indiamart.com/hijazleathers-pvtltd/ 4. http://www.tradeindia.com/Seller-260248-HIJAZ-LEATHERS-PVT- LTD-/ 5. http://www.vaniyambadi.net/index.php?option=com_content&task=view &id=83&Itemid=58 6. http://www.aedol.in/vaniyambadi.html. 7. http://csrc.nist.gov/groups/SMA/fisma/Risk- ManagementFramework/monitor/qsg_monitor_tips-and-techniques-for- systems.pdf 8. http://en.wikipedia.org/wiki/5S_(methodology) Reference:Export documentation And Logistics Report. 1. http://www.docstoc.com/docs/16619673/Export-Documentation-and- logistics 2. http://www.scribd.com/doc/37156505/industry-analysis-report-Indian- Leather-Industry 55

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