1

SUMMER PROJECT REPORT

ON
SALES MANAGEMENT PROCESS OF
JK PAPER MILL
With Special Reference to

J KPAPER MILL, RAYAGADA

In Partial Fulfillment for the Award of the Degree in

MASTER OF BUSINESS ADMINISTRATION

BIJU PATNAIK UNIVERSITY OF TEHNOLOGY, ORISSA.

Under the Esteemed Guidance of

Mr. ARUN KUMAR MISHRA

GANDHI INSTITUTE OF MANAGEMENT STUDIES

(Affiliated to Biju Patnaik University of Technology)
GIET CAMPUS,

JK PAPER

Gunupur 765 022

Date: 18.08.2008

CERTIFICATE
This

is to certify

that

Mr.

Himansu

Sekhar Nayak pursuing 2nd year MBA

(Marketing)
Management

from

Gandhi

Studies,

Institute

gunupur

of
has

undergone practicle training at Sales

Department under the area of Sales
Management Process of JKPM for a
period of 45 days during 01.08.08 to
15.08.08.
His conduct and performance during the
above period were found satisfactory.

OFFICER
(HRD)

ACKNOWLEDGEMENT
I take this opportunity to place on record my sincere gratitude to JK
PAPER LTD, JK Pur, Rayagada, Orissa for kind permission accorded to me
take up this project work and also for submitting this report to Gandhi
Institute of Management Study, gunpur to meet the requirement Master in
Business Administration (MBA).
I express my deep gratitude toward Mr. Jagdish Patnaik (officer HRD)
for giving me permission to do the project in their organization and Mr.
Kuldeep Shingh Gupta( our project guide) for giving me valuable guidance
at the company during the execution of my project works at JK Paper Mill.
I am also thankful to Mr. Sudhir Kumar Patnaik, Manager (Sales), Mr
P.C Tripathy, Mr Gyan Ranjan Pattnayak, Mr Ravi Narayan Palai, Mr B.B Das,
Mr Shiv Prasad Pattnayak, Mr Sanyasi Rao, Mr Venu Gopal, Mr Sudhansu
Senapati for providing information and guidance whenever it was needed.
I am thankful to our esteemed Prof. (Dr.) A.V.N MURTY., to give the
opportunity for such project and for his guidance, encouragement and
support throughout my entire project work, without which this paper could
not have seen the light of the day.
I would also like to give sincerely thanks to my
my

esteemed faculty and

guide Dr. Arun Kumar Mishra , who provided me with all the

4
necessary inputs pertaining to the project at a very short notice despite his
already busy schedule and also for his cooperation at every stage.

DECLARATION
I

hereby

declare

that

this

work,

entitled

SALES

MANAGEMENT PROCESSOF JK PAPER MILL, is a bonafide

work undertaken by me for J K PAPER MILL, Rayagada, Orissa,
under the guidance of Mr. ARUN KUMAR MISHRA and
submitted to Gandhi Institute of Management Studies, Gunupur,
affiliated to The Biju Patnaik Universty of Technology, Rourkela,
Orissa, in partial fulfilment of requirements for the award of the
degree of Master of Business Administration for the curriculum
2007 2009 and this project has not been submitted in part or
in whole to any other University or for any other course.
HIMANSU SEKHAR NAYAK

Dr. Arun Kumar Mishra

Faculty
Gandhi Institute of Management Studies,
Gunupur

Contents
1. CHPTER 1: INTRODUCTION
a. Introduction
b. Need for a study
c. Objectives
d. Methodology
e. Limitation
2. CHAPTER 2: INDUSTRY PROFILE
a. Introduction to product/industry
b. Industry Scenario
c. Future focus
3. CHAPTER 3: COMPANY PROFILE
a. General Profile
I.
Mission
II.
Origin & History
III.
Objectives
IV.
SWOT
V.
Unique Achivement

4.
5.

6.
7.
8.
9.

b. Functional Profile
I.
Production
II.
Finance
III.
Personal
IV.
Marketing
CHAPTER 4: CONCEPTUAL PROFILE
a. Theoretical aspects of the concept
b. Application of the concept in the company
FINDING ANALYSIS & INTERPRETATION
a. Scope of the Study
b. Methodology
c. Finding, analysis and interpretation
SUMMERY & SUGGESTIONS
a. Summary
b. Suggestion
QUESTIONER
ANNEXTURE
BIBILIOGRAPHY

1.

CHAPTER 1:INTRODUCTION

a. Introduction
As the business environment today becomes increasingly competitive, its leader
with the capacity to create a compelling vision and the ability to translate that
vision reality that stands apart.
Leadership is not a merely a matter of size or numbers. Its about setting
benchmarks; be in the areas of technology, innovation, quality, cost, service or
any other dimension of business. The ultimate aim being to enhance stakeholder
value.
We shall define management as working with through an individual and groups
to accomplish organizational goals. In simple words we can say that
management means setting work done through the people.
It is the era of business every organization wants to cut another from the market.
So it is very much challenging job for the management people to serve
organization in the present competitive situation.
Management is such a thing which is not applicable only in the field of business.
it has its own importance in the field of business, organization, education,
hospital, etc
In some tuff situation management help us to take steps like planning, decision
making, staffing, direction, controlling etc according to the circumstance of
the organization.
Marketing management is one of the most vital part of overall management. An
effective marketing management is knowing the wants of people and makes the
product as per their need, creating demand for the product, taking the target
audience.
In today the transportation and distribution becomes very important so that the
product of the firm will arrive safely to the end user. Up to the arrival of the

product to the customer/end user proper care of the product is require so

insurance and transportation should be must; the channel system should also
require to see it may be 0 level or multi level. As for all sales and distribution
management is must in marketing management.
The sales and distribution shows function and classification of sales
management, selling under the marketing concept, interdependence of sales man
ship and advertising, sales forecast, sales territories, routing and scheduling,
design of the distribution channel, management of channel and co-operation,
conflict and competition, vertical and horizontal marketing system, order
processing, ware house inventory, transportation, organizing for physical
distribution. So it is an important part in marketing management.

b. Need for a study

The importance of sales and distribution management is too much. A company
with out marketing is not survival in todays world. In the marketing of the
product of the firm, selling and distribution is one of the important factor. which
plans function and classification of sales management, selling under the
marketing concept, interdependence of sales man ship and advertising, sales
forecast, sales territories, routing and scheduling, design of the distribution
channel, management of channel and co-operation, conflict and competition,
vertical and horizontal marketing system, order processing, ware house
inventory, transportation, organizing for physical distribution, controlling and
selling effort , sales budget and budgeting procedure, quota setting and
administration, personal problem of sale management, recruiting, selecting,
training and development, motivate of salesman, compensating sales personnel,
in distribution whole seller and retailer, supply chain management.

c. Objective of the study

The present study has been taken up with the following objectives:
1. To learn the theoretical aspects of marketing and sales and distribution
management in that fare in reality.
2. To study the practice of sales and distribution management in detail in J.K.
Paper Mills Ltd.
3. To know the channel of distribution of JK Paper Mills Ltd.

4. to know the procedure of receiving, processing of order and despatching

of the finished product.
5. to maintain proper allocation for the companies product.
6. for organizing physical distribution.

d. Methodology:
Since the study undertaken by me is related to the overall study of selling and
distribution channel, the means adopted for collection of various facts and data
were in the form of personal observation, officials and documents, departmental
ISO manual and directly interacting with the officers concerned.
Work is mainly emphasized on the primary and secondary data. Primary data is
gathered from different books and for secondary data is mainly based on the
prescribed QUESTIONNAIRE and by personal interview and the secondary data
are collected from the above mentioned sources.
The activities and data collection for the entire project work is done at
JKpapermills. The project report contains both primary and secondary data and
the data was collected with utmost care. The secondary data is from various MIS
reports that are prepared daily/ weekly/fortnightly/monthly/annually in the
department.

e. Limitations:
The project has been subject to the following limitations:
The study was restricted to J.K.P.M., Jaykaypur only.

The study is conducted with the data available and the analysis was made
accordingly.
It was tough to get all relevant facts from the personnel and employees
concerned due to business, which is inherent in an industry.
Time factor was a limitation as only a stipulated period had been
ascertained to me while the personnel had little time to my queries due to
their daily busy schedule.
Much information was classified as confidential which would have helped
me in becoming more familiar with the functioning of the company had
such information been open to me.

There is much scope for further interpretation of data and presentation of

data as subject is very vast and interesting. The study is made in a simple
and easy manner for general understanding of the purpose of the study and
there is wide scope for further and further cultivation. The main limitation
is limited time at my disposal and minor changes have been made in some
data as per the guide and it will not affect the data any way.

2 . CHAPTER 2: INDUSTRY PROFILE

The industry profile includes what is paper, introduction to paper, classification
of paper, growth of paper industry, about Indian paper industry, consumption of
paper in India, paper industry in the global perspective, globalization and its
impact on Indian paper industry.

WHAT IS PAPER?

10

Paper has played a vital role in the development of mankind, since time is
immemorial, as a means of communication, as the most versatile material for
packaging of goods, as a medium of preserving knowledge for progeny.
Paper is defined as A mat of cellulose fibers arranged in crisscross fashion with
hydrogen bond and other forces.

a. Introduction to product/ industry

Paper is derived from the word papyrus. Today, paper includes a wide range of
products with very different application: communication, cultural, educational,
artistic, hygienic, and sanitary as well as storage and transport of all kinds of
goods. Its almost impossible to imagine a life without paper
There is a degree of consensus that the art of making paper was first
Discovered in China and its origin in that country is traced back to 2 nd century. in
about A.D 105 Tsai Lun, an official attached to imperial court of china, created a
sheet of paper using mulberry and other best fibers along with fishnets, old rags
and hemp waste. (2nd Century B.C)
Chinese considered paper a key invention and kept this a closely guarded
secret for over Five Centuries until the technology slowly made it way westward.
The Arabs captured Chinese city containing a paper mill in the early 700s and
from this started their own paper making industry. (Early 700s) Invention of
printing in 1450s brought a vastly increased demand for paper. Paper was first
made in England in 1496. the first U.S.Mill was built in 1690, the Rittent House
Mill, German town, Pennsylvania.

b. INDUSTRY SCENARIO
INDIAN PAPER INDUSTRY

11

Indians were using Copper plates, Iron plates and for the purpose of
writing, before paper came into existence. Papermaking entered our country
through Arabs as an art. This art was restricted to Muslim families as a secret, at
that time, who were mainly based and lived Kashmir & Punjab named Kagazius.
Nothing can be said about the first paper mills in India. But it was said
that, William Warvaty, in 1812 started the first paper mills at sarampur, with the
help of Kagazius. In 1832 four machines were installed and introduced in India.
Royal Black Paper Mills stated at Hubli in 1870s and was merged in Teleghar
Paper Mills. Later the remaining Paper Mills are established one by one.
The per Capita Paper Consumption in India is only 3.62; it is inclusive of
Newsprint paper consumption. According to this it is clear that, we are much
backward in paper consumption that compared to the some developed countries.
Paper Industry supplies various types of Paper, Paper Boards and
Specialty Paper to a number of End users, which includes Government,
Education, Companies, Packing, Printing, News Paper and Magazines etc. use of
paper and paper product is intimately linked with the cultural and Economic
Development of a country. The demand for paper depends on a number of
intangible factors such as Population, National Income, Growth of Literacy
spread of Education, Standard of Living and Industrial production.
Market Universe and Related Market Share
Global Pulp and Paper Industry
The international market for pulp and paper has been exhibiting sings of
volatility. Demand remained relatively sluggish due to difficult economic
conditions in the U.S. and Western Europe. In particular, the prices for pulp and
coated wood free papers were depressed owing to the overcapacity. Reduced
advertising and promotional expenditure in the U.S. resulted in a drop in the
demand for coated grades in that region. Pulp prices hardened around the middle

12

of the year as a consequence of downtime taken by leading producers. However

this recovery could not be sustained due to market resistance to the price
increases resulting in partial roll back of pulp prices in the later part of the year.
The market for uncoated wood free paper was reasonably stable, enabling
producers to hold out their price level during the year. The outlook for the
current year depends a great deal on the recovery and revival of the U.S.
economy. Demand for paper in the Asian region continues to register growth,
although the ongoing capacity addition in the region, particularly in China may
hold back any major recovery during the year. Notwithstanding this, possibilities
of firming up of global economy could result in demand and price recovery for
pulp and paper in the second half of this year.
Domestic Paper Market
The conditions in the domestic market were also mixed, depending upon the
Product and quality Segment. The market for high Bright Uncoated paper (Map
litho Paper) continued to be strong on the back of increased demand leading to
firming up of prices right through the year. The price up cycle, which
commenced around March,2002 has sustained till now. The continuous increase
in increase in exports of paper and paper products also contributed to this
growth, prices of Coated Paper weakened from the middle of last year, leading to
a progressive reduction in the prices because of oversupply in the domestic
market. For other grades such as packaging and Cream wove Papers, there was a
recovery in the first half of the year though prices softened in the second half.
The favorable macro-economic fundamentals of the Indian economy are
reflected in the all round improvement in growth rates of the manufacturing and
service sectors. Additionally, new investments in the Infrastructure sector and the
continuing good monsoons should lead to higher demand growth for paper and
Board during the current year.

13

C. GROWTH AND FUTURE FOCUS OF THE

PAPER INDUSTRY:
Paper Industry is one of the oldest industries established in India. Before the
advent of machine made paper a sizable hand made paper manufacture
flourished in India. The earliest efforts of mechanizing this industry in our
country dates back to the beginning of 19th century.
In India, the first paper machine was installed in 1812 at Sorampet (west
Bengal). Over the decades the there was rapid growth in the number of Pulp &
paper mills from 17 in the early 1950s to 250 Mills in 1980s. The domestic
output of paper and paperboards grew form 1,35,000mts in 1951 to
15,00,000mts in 1985. What followed then is a virtual doubling of capacities and
production was around 25 lakhs tons annum and the no, of mills increased to
over 350 in the organized sector.
Figures speak of a production of 28-lakh tons form 375 organized mills.
Future projections indicate that by the year 2008 A.D., India requires
about 59-lakh tons per annum of paper and board and there after the
growth accelerates.
The paper industry in India is more then a century old. The industry is
predominately in the private sector. There are about 406 paper mills in India
with a total installed capacity of around 6.2 million tones.

14

LIST OF STATE WISE INDIAN PAPER INDUSTRY

_____________________________________________________
STATES
NO. OF PAPER MILLS
______________________________________________________
ANDHRA PRADESH
22
ASSAM
02
BIHAR
04
GUJARAT
68
HARAYANA
15
HIMACHAL PRADESH
06
JAMMU & KASHMIR
01
KARNATAKA
14
KERALA
05
MADHYA PRADESH
21
MAHARASTRA
71
NAGALAND
01
ORISSA
09
PONDICHERRY
01
PUNJAB
37
RAJASTHAN
07
TAMIL NADU
31
UTTAR PRADESH
16
WEST BENGAL
26
TOTAL
DEMAND AND NUMBER OF PAPER MILLS

594

15

Population(million)
Per capita
consumption(kg)
Paper and demand
(million tonnes)

1993
901.46
3.20

2000
102.36
4.40

2005
111.0
5.20

SOURCE: inpaper internatioanl

PAPER INDUSTRY IN THE GLOBAL PERSPECITIVE

Indias per capita consumption per annum as compared to other countries.
COUNTRY
USA
JAPAN
AUSTRALIA
HONG KONG
TAIWAN
NEW ZEALAND
SINGAPORE
KOREA
MALAYSIA
CHINA
PHILIPPINESS
INDIA

CONSUMPTION
334kg
224kg
150kg
141kg
134kg
104kg
81kg
80kg
31kg
12kg
8.5kg
2.9kg

CAPACITIES AND UMBER OF PAPER MILLS

Capacity
Number of mills
Upto-5000`
140
Small scale units
5001-10000
112
Small scale units
10001-20000
88
Small scale units

%
34.5
27.6
21.6

2010
119.32
6.20

16
20001-33000

32

33001-50000

10

50001 and above

15
Source: Indian press services news bulletin

Medium scale
units
Medium scale
units
Large scale units

7.9
4.7
3.7

17

3. CHAPTER 3: COMPANY PROFILE

PROFILE OF J. K. PAPER LTD.

INTRODUCTION TO J.K. PAPER MILLS JAYKAYPUR

JK Organization is an association of
Industrial and commercial companies, which
was founded in 1918 by late Lala Kamalapatiji
Singahania with its headquarters at kanur
(UP). The initials JK are the grouping of the
first letters of the name of Juggilal and
Kamalaat, father and son. The founder grew u in an atmosphere of nationalist
favor and imbibed the sprit of patriotism; he shook off alien dependence in the
field of Industrial development of India. He marshaled all his energies and
activities towards the fulfillment of one central object that of industrialization of
India capital, Indian management and above all Indian know-how.

18

Equipped with tenacity of purpose, perseverance and foresightedness, he

achieved success in his mission and in a short span of time, between 1921 and
1937 a series of Industries with diversified interests were setup by him Kamala
Ice Factory, JK Jute Mills co. Ltd., JK Cotton Manufacturers, JK Iron & Steel co.
Ltd., against the tough opposition of British Industrialization and an alien
Government.
The companys commitment to continuously raise quality benchmark
resulted in JK Paper Mills becoming the first integrated pulp and Paper Plant in
India to receive the ISO 9001 certification & is now aiming at attaining the TPM
award.
Currently, the group ranks amongst Indias top Industrials houses with
assets in excess of Rs 50 billion. The group has diverse business operations in
India and Abroad. The company has over 2, 90,000 public share holders across
its major public limited companies.
JK Paper has one of the strongest distribution networks in the paper
Industry and has national reach through its 4 regional offices, 13 warehouses, 95
wholesalers and over 1,600 dealers. The company exports paper to several
counties including, Sri Lanka, Bangladesh and several west Asian nations,
Branded Copier paper accounts for nearly 50% of the exports.
The Group was pioneer in indigenous manufacture of numerous products. For
example, it was first in India to produce Calico Prints(1933), Steel Bailing
Hoops(1940), Aluminum(1944), Engineering Files(1949), nylon-6 (1962),
Sodium Sulphoxylate Formaldehyde (1965), TV sets(1968), Acrylic
Fibers(1969), DMT
Monomer and Polyester Wastage (1976), and Steel Belted Radial Tyres (1977)
and
the list goes on.

19

a. General profile
JK PAPER LIMITED
I . VISION
To set benchmarks in the Indian Paper Industry in Quality of Products, Services,
People, Profitability, Growth, Innovation and Environmental Management to
contribute to the Development of the organization.
MISSION
To grow the paper business to 5 lakh tonnes by 2006 and establish leadership
through the JK Brand Equity and customer focus, continuously enhancing
shareholder value

20

JK Paper & Technology

Over the last decade the constant endeavour of JK Paper has been to upgrade its
manufacturing processes at grass-root levels to help create customer value. Be it the most
modern Pulp Mill or an automatic cut-size line for branded products, it has been a saga of
continuous process development with an eye on the
customer.
JK Paper Ltd. has always leveraged technology for
constant product up gradation and has been a pioneer in

many arenas, of the paper industry. Some of the landmarks

which JK Paper achieved much before the rest of the
Indian paper companies are: First to introduce Surface Sized Woodfree Paper
First Paper Mill to get ISO 9001 certification.
First Paper Mill to get ISO 14001 certification.

These pioneering moves have given JK Paper pride of place as the change leader, ushering in
a phase of complete makeover in the Indian paper market. On the pathway of moving focus
from commodity to branded and high value categories, JK Paper Ltd. has undergone major
technical up gradation in the machines and processes for manufacturing paper.
The Company has taken a major initiative to deliver world-class service through
implementation of an Enterprise Resource Planning system. This transformational
technology will bring in best practices across all functions of the organization to deliver

21

II.HISTORY OF JK PAPER LTD

Incorporated in the year 1938, JK Corp Limited, started its operation with a
board mill at Bhopal for manufacture of straw board. Since then the activities of
the company have been diversified from time to time. In the year 1962, JK Corp
Ltd. set up this integrated Pulp and Paper Mill in the backward district of
Rayagada in Orissa. In 1982, the activities of JK Corp Ltd. were further
diversified when it set up a most modern cement plant by the name Lakshmi
Cement.
In 2001 JK Paper Ltd. was formed by amalgamating the JK Paper Mills at
Rayagada and the Central Pulp Mills at Songadh, Gujarat, to become Indias 2 nd
largest producer of quality paper with a turnover exceeding Rs. 650 crores. It is
the first Indian Paper Mill to receive the Sword of Honour from British Safety
Council and ISO 9001 Certification by DNV Norwegian agency.
The company is conscious of the need to constantly update technology of
existing plants and machineries and in this direction there are regular schemes of
modernization and renovation from time to time.
The companys strategy continues to be to offer more and more value added
products, continuously modernize and upgrade its plants for achieving better
efficiencies, improved quality of products and internationally recognized
environmental standards. Towards this end, the company is implementing an
Offline Coated Paper Project with a capacity of 46,000 TPA at JKPM Unit. This
plant will utilize contemporary blade coating technology and coupled with the
companys high quality base paper, will be able to offer the product in the upper
segment of the market. The company would thus become the second largest
coated paper producer in India.
The company is also commissioning a modern Recovery Boiler at its CPM Unit,
which would result in higher chemical recovery and increased pulp production.
These projects along with other modernization programs would cost around Rs.
100 crores and would result in reduced cost and higher production. The projects
are scheduled for commissioning duing the financial year 2004-05.
J.K.Paper Mill was expanded in phases and at present has 5 paper machines with
an installed capacity of 1,00,000 TPA with plans to expand the capacity further
to 1.6 lakhs TPA during the next five years. Besides the new paper machine,

22

imported cutter for automatic cutting and packaging of paper was commissioned
during the year 1994-1995.
The Mill manufactures quality writing, printing and business communication
papers and paperboards using primarily hardwood and bamboo procured locally
found in and around Orissa.
The mill undertook a massive modernization Program during 1997-98 with an
investment of Rs.300 crores. J.K.Paper Mills have continuously upgraded the
technology by modernizing and renovating the plant, machinery and equipment
to face the present day challenges of Eco-friendly manufacture.
The state-of-the-art blade coating plant is expected to be commissioned during
the year.
The Central Pulp Mill, a unit of JK Paper Ltd. is one of the largest integrated
Pulp and Paper Mill in Western India. The mill was incorporated in 1960 with its
registered office at Pune. The mill began commercial production on April 01,
1968 with an installed capacity of 30,000 tones per annum for production of
pulp. The capacity of mill
was enhanced to 40,000 tones per annum by undertaking balancing scheme. Due
to heavy investments and unfavorable market conditions CPM faced financial
problems and was referred to BIFR in 1987 as having negative worth.

III.STRATEGIC

OBJECTIVES

Sustained growth-optimizing production

potential in least possible

time.
Leadership in niche market and customer oriented marketing.
Internationalization of business.
Cost competitiveness with international bench-marking.
Quality Policy
To provide Customer Delight both internal and external through our
products and services at Lowest Cost by Continuous Improvement in processes,
productivity, quality and management systems.

23

Environment Policy
We, at J K Paper Mills, Rayagada, Orissa (India) are committed to:
Comply with applicable Environmental Legislations
Prevention of Pollution
Continual improvement in environmental performances
We shall improve our Environmental Performance by:
Afforestation through social and farm forestry supported by clonal
technology
Cleaner technologies and processes
Reducing pollutants in discharged water
Reducing particulate emissions
Solid waste management
Conservation of resources
TPM Policy
In continues pursuit for organizational excellence we are committed to
Customer delight by providing world class product and services.
Be a dynamic bench mark and leader in pulp and paper industry process
innovation in the entire business chain.
Development pride for all stake holders including society around
Build a culture of intellectual honesty and professional integrity.

24

Eleven Pilars of (TPM):1. Sefty health and environment

Zero accident and pollution
Safety awareness and training
Clean green and safe working environment
2. Office improvement
Improve office functional efficiency
Reduction of non value add cost
Focus on reduction of variable cost and over heads
3. Education and training
Enhance operation and maintenance skill
Develop multi skilling
Focus on knowledge mgmt and skill
4. New equipment initial control
Reduction of vertical start up time of new project
Systematic MP sheets collection and utilization
Focus on maintainability and reliability of new add equipments
5. Quality Maintenance
Zero defects
Customer delight
Focus on in process quality assurance
6. Plant maintenance
Zero breakdown
Improve efficiency of maintenance system
Reduction of maintenance cost
Focus on equipment life cycle

25

7.Jishu Hozen
Improve and maintain the basic condition of the equipment
Develop equipment competent opataretors and maintenance crew
Autonomous equipment mgmt
8. Kobetsu Kaizen
Minimizing overall effective ness of equipment and process
Loss and cost reduction
Systematic elimination of all process through Kaizen
9. Process innovation
Develop JKPM
New production system
Foster innovative culture
10.Logistics
Reduction in logistic cost ratio of inbound and outbound
Reduction in storage handling loss
Reduction of damage of goods during transshipment
Reduction in delivery lead time
11.New product development
Reduction of new product development cycle time
Reduction of cost and development of new product
Safety and Health Policy
We are committed to:
Adhere legislation and government regulations related to safety and
health in manufacturing activity.

26

Foster safety and health awareness among its employees through

preventable measures, continuous development, awareness and
improvement in the work environment.
Give top priority to proactive steps like:

Safety audits
Work permit systems
Health check
Engineering and process up gradation
Improved work practices
Test preparedness and emergency response
Full participation of employees

Energy Conservation Policy

We are committed to reduce the energy consumption and cost by:
Optimization of plant and equipment efficiency
Elimination and prevention of all types of losses such as water, power, steam,
coal, compressed air
Maximizing condensate recovery &use, process heat recovery, waste
minimization
Increasing the co-generation of steam and power
Improved utilization of natural resources leading to environmental benefits
Energy conservation through total emploee involvement.
We believe that
Energy Saved is Profit Earned

27

IV.SWOT ANALYSIS (JKPM)

StrengthHigh operating efficiency
Strong brand image
Effective distribution network
Market leader in copier segment
Strong customer relationship
Well organized management team
Proper co ordination and communication system
The first company in Indian paper industry to apply TPM to increase
Productivity.
WeaknessHigh logistic expenditure.
High cost on power generation.
Mechanization for packaging should be introduced instead of manual
packing.
Rating of after sale service is to be improved.
OpportunitiesSubsidies and lease of freehold lands for plantation yet to be libealise
Demand for domestic market can be maximize
International market is yet to be explored.
ThreatThreat from other companies like BILT, TNPL, ITC, KHANNA. Etc

28

They have already entered in copier segment.

Government rules and regulation for paper industries.
Per capita paper consumption in India is very low

V. MAJOR ACHIEVEMENTS1980-87- National Safety Award for Longest Accident Free Period:
(National safety council) National safety award for lowest average
Frequency rate (National safety council)
1990- Safety Performance Citation at Gold Grade: (British Safety Council)
1992- Sword of Honour : (British Safety Council)
1995- First Indian Paper Mill certified ISO 9001 : (DNV)
1996- Award of Honour for Outstanding Safety Performance : (NSC, USA)
1997-Cert of appn -Commendable Efforts in the field of Safety Mgt.
: (CIIER)
1998- First Indian Paper Mill certified ISO 14001 : (DNV)
Prasana patra(National safety council India
Significant improvement Award : (NSC, USA)
1999- Significant improvement Award : (NSC, USA)
2003- Rated as Greenest Paper Mill : (CSE)
2007- TPM Award received : (March)

29

b. Functional profile
I. Production
OVERVIEW OF MANUFACTURING PROCESS
CHIPPER HOUSE
In JK Paper mills raw material used for pulping are of two types:
1) Bamboo
2) Hardwood.
The different varieties of bamboo used are
1) Daba
2) Salia
The different varieties of hardwood used are
1) Casurina
2) Eucalyptus
3) Subabul
4) Acacia
5) Chakunda
6) Mango
The mill is getting its raw material from Orissa as well as other states like
Assam, Andhra Pradesh and Tamil Nadu.
The use of raw material is on first in and first out basis. The raw material
coming on the trucks is directly weighed on the weighbridges provided in the
wood yard, which are two in numbers, and is unloaded at the chipper house
directly. When it becomes excess at that time it is stored.
Moisture content in the pulp is calculated for each truck carrying raw material
differently. In summer season it is around 12-15% and in rainy season it is
25-30%.
CHIPPING:

30

Chipping is defined as cutting of wood logs into uniform size to provide

uniform penetration of cooling liquor in the digester, which leads to uniform
cooked pulp.
The chipper house in JK Paper mills is provided with three chippers out of which
two are Bamboo chippers and one is Wood chipper. Bamboo to wood ratio of
30:70 is maintained.
The chipper is provided with horizontal feeding through conveyor belt. Wood
logs diameter and bamboo length has a direct effect on chipping. Therefore for
chipping wood logs of 8-12 and bamboo of 4-5mts lengths are used.
During the travel of wood and bamboo to the chipper through conveyer belt,
reclaimed water is sprayed to wash out the silica and to decrease the amount
of dust.

CHIP SCREEN:
Chip screens are used to screen the oversized and undersized chips to provide
uniform cooking in the digester and uniform penetration of cooking liquor.
We have here 3 numbers of screens. The chips after chipping are conveyed to
the top of the cyclone through conveyer belt.
SILO:
The chips after screening are conveyed to the silos for storage before
processing it to the digester. In JK Paper mills there are totally 8 silos and one
Live Bottom Silo each of 100 T capacities. The chips are conveyed to the
silos through belt conveyer.
The Live bottom silo is provided with gamma rays detector, which detects the
level of chips in the silo. A bamboo to wood ratio of 15:85 is maintained in the
Live bottom silo.
1. PULP MILL
1.1.(RAPID DISPLACEMENT HEATING)

31

FIBRE LINE
Disc Knotter Pulping refers to any process by which wood (or other fibrous
raw material) is reduced to a fibrous mass. Basically it is the means by which
the bonds are systematically ruptured within the wood structure.
Pulping is the process in which the lignin that holds the fibers together is
either chemically dissolved or mechanically broken down.
An efficient cooking alternative RDH employs displacement technologies to
mnot only increase pulp yield, but also to improve pulp quality and conserve
energy.
Importance of RDH
1) It saves energy. Reduces steam demand by 60-70%.
2) It saves chemicals in cooking, and bleaching operations. Low effective
Alkali at equivalent Kappa pulp.
3) It produces pulp which has 15-20% higher Tear and Tensile strength.
Hence better run ability of machine.
4) It has better brightness ceiling in bleaching operation.
5) Pulp of lower kappa number (14-16) and strength is higher than that of
convention cook.
6) RDH pulping results in lower viscosity of black liquor to soda recovery.
Firing of black liquor can be at 75-80% solids.
7) Technology is environmental friendly.
8) Low lignin content.
9) Reduced cooking cycle time.
More uniform pulp is produced by RDH pulping.
The pulp mill is provided with 3 digesters each of capacity 200 m3, 5
Accumulators named as B1, B2, C1, C2 and Hot White liquor accumulator of
different capacities.
The RDH process involves 6 steps.
1) Chip fill / Cool pad
2) Warm fill

32

3) Hot fill
4) TTT (Time To Temperature) / TAT (Time At Temperature)
5) Displacement
6) Pump out
The fiber yield of RDH process is 40-42%.
Fiber line is the department of pulp mill where the cooked pulp is subjected to
screening, washing and bleaching.
The cooked pulp from the discharge tank is pumped to the Disc Knotter for
separation of knots (uncooked chips) from the pulp. The accept from the disc
knotter goes to the wash filter (Brown stock washing) and the rejects or
uncooked chips are returned on a perforated screen. These rejects are then sent to
Coarse screen for further separation of accepts as the ejects or uncooked chips
may also carry some cooked fibers.
The accept of this coarse screen is taken to the discharge tank and reject goes to
Vibratory screen where it is further separated to remove rejects. The accepted
pulp is then taken to Dump tank of 20 m3 capacity and again pumped to
discharge tank. The reject of the vibratory screen is conveyed to the Live bottom
silo through a belt conveyer.
Brown Stock Washing:
The cooked pulp from the digester must be wased to remove residual liquor
that would contaminate the pulp during subsequent pulping process and to
recover a maximum amount of chemicals or spent chemicals with minimum
dilution.
Stages of Brown Stock Washing:
Vacuum filter washing
Filterate washing
Screening:
Screening is the process in which unwanted, troublesome and oversized
materials are removed from the paper making fibers.
The fiber line of JK Paper mills is provides with 3 stages of screening.

33

1) Primary screening
2) Secondary screening
3) Tertiary screening
Here Delta screens are used which are nothing but the pressure screens.
After Brown stock washing the pulp from the LC chest is pumped to Primary
delta screen provided with a dilution line.
The accepted pulp after screening goes to the Displacement press I where it
is pressed to remove water and increases the consistency of pulp.
The reject of primary delta screen is sent to the Secondary delta screen as the
reject may also contain some good fibers which may be retained. It is also
provided with dilution line from the Displacement press filterate tank. The
accept is again fed tom the Primary delta screen and the reject is further
screened in Teritiary delta screen.
The inlet of teritiary screen is also provide with a dilution line . The rejects
are further screened in Vibratory screens. In vibratory screens coarse fibers
and shives are separated and taken away by trolleys. The accept of vibratory
screen is taken in reject chamber and in the same chamber of accept of sand
separator is also taken.
Then it is taken reject cleaner and again send to sand separator for separation of
sand. The reject i.e. sand is drained.
Displacement Press:
Displacement press is the equipment which increases the consistency of pulp
by squeezing out the water from the pulp. We have 2 displacement presses.
Oxygen Delignification:
Oxygen delignification can be defined as the use of oxygen and alkali to
remove a substantial fraction of the lignin in unbleached pulp. The process is
usually conducted under pressure and delignification is normally in the range
of 35-40%.
After oxygen delignification good awshing of the pulp is necessary since
black liquor solids consume oxygen and may adversely the selectivity.
Therefore a post oxygen washer is employed after unbleached tower. The
pulp should be thoroughly washed otherwise the dissolved components

34

cannot be recovered in further stages of bleaching and it leads to cellulose

degradation.
After oxygen delignification the kappa no. is reduced to 11 which is the main
advantage of oxygen delignification. This oxygen delignified pulp which
reduces the amount of bleaching chemicals required is then pumped to
bleaching section where the pulp is bleached to achieve high brightness.
Bleaching:
Bleaching is the treatment of wood pulp with chemical agents to increase
their brightness. It is achieved by lignin removal. Lignin removal in chemical
pulps lead to greater fiber to-fiber bonding strength in paper but the strong
chemical used in bleaching. Chemical pulp decreases the length of cellulose
molecules, resulting in weaker fibers.
Bleaching involves 2 stages:
1) C + D STAGE
2) EOP STAGE
The pulp obtained after EOP stage bleaching has a brightness of 60-70.

STOCK PREPARATION:
Stock Preparation as the term implies, covers the process for producing
Stock that is, a suspension of fibers and other additives in water, in the right
condition and of the right composition for the production of sheet or paper on
the paper making machine.
These processes are:

35

1) Disintegration i.e. separation of the pulp into a suspension of individual

fibers in water.
2) Treatment by beating and refining to produce fibers of the cooect
properties
3) Blending of different stocks as required to produce the correct furnish for
papermaking.
4) Addition of non-fibrous additives necessary to make paper of desired
properties.
There are four Stock Preparation units for each paper machine i.e. SP I, SP
III, SP IV and SP V.
During the stock preparation the pulp is subjected to different mechanical and
chemical treatments so as to make it suitable for production of paper.
The different mechanical treatments carried out are Refining and Beating and
other chemical treatments are Sizing, Addition of Fillers, and Whitening agents,
Dyes etc.
Refining:
Refining may be defined as the mechanical alterations of fibers, which give
them characteristics so they may be formed into sheets or boards having the
desired properties.
The effects of refining are
1) Improved fiber to fiber bonding which in turn increases Burst, Tensile and
Folding endurance
2) Freeness decreases
3) Better formation
The major types of refiners are
a) Conical Refiner
b) Double Disc Refiner
c) Triple Disc Refiner
Conical Refiners:

36

It consists of a tapered plug rotating inside the tapered shell both of which are
slotted with bars in axial direction. The stock is fed into the smaller end and
discharges from to of larger end.
Double Disc Refiner:
In DDR both discs rotate in opposite direction. The stock is fed near the axis
of one of the disc and passes radially between the disc and finally discharges
at the periphery.
Triple Disc Refiner:
In TDR single disc rotates in between two stationary discs. The stocxk is fed
in between the discs from the top and discharges at the top of the stationary
disc.
Sizing:
Sizing operations are carried out primarily to provide paper with resistance to
penetration by aqueous solutions. The treatment also provides better surface
characteristics and improves certain physical properties of sheet, such as
surface strength and internal bond.
Two basic methods of sizing are available to the papermaker.
1)
Internal sizing: Internal sizing uses rosin or other chemicals to reduce
the water penetration by affecting the contact angle.
2)
External sizing: Surface sizing typically utilizes starch to fill in the
surface voids in the sheet, reducing pore radius and the rate of liquid
penetration.
The different types of sizing carried out in the stock preparation plant are;
1)

Acid sizing: The chemicals used to carry out acid sizing are
i. Rosin / Fortified rosin
ii. Alum

These chemicals are mixed with the pulp in mixing chest. Along with the
sizing chemicals the different chemicals added are Pubanol (wax emulsion),
Fillers etc.
In acid sizing a pH of 4.5 5.5 is maintained. In acid sizing a uniform thin
film is formed on the pulp sheet, which reduces the rate of penetration of
water or other aqueous liquids.

37

Neutral Sizing:
In neutral sizing a pH of 6.8+(-) 0.2 is maintained. The different chemicals
used are
a)

Ivox 3x (dispersion rosin)

b)

Alum

c)

Indofloc (retention aid)

The advantages of neutral sizing are

1) CaCO3 filler can be used which has very high brightness of 95%
2) Permanence or aging of paper improves
3) Little improvement in brightness (1-2%)
4) Concentrated whitening agent can be used which increases brightness
AKD Sizing:
The different types of chemicals used in AKD sizing are
a) Alkyl Ketene diemer (Ivox 750)
b) Fixing agent-Ivox fix
c) Indofloc (retention aid)
In this type of sizing a pH of 8.0-8.2 is maintained.
The advantages of AKD sizing are;
1) Alum consumption is nill
2) No foaming
3) Chemical consumption is minimum
4) Steam consumption is minimum compared to acid sizing
5) Reduction in cost of production
6) No additional chemical like Purbanol is required
The different chemicals used in stock preparation are:

38
1) Rosin: Rosin is an amphipatic material, meaning that it has both

hydrophilic and hydrophobic parts. In practice, the rosin is precipitated

onto the fibers by the action of alum as oriented monolayer of aluminium
resonate molecules. Natural rosin is the ambered colored resin obtained
from Southern pines.
2) Alum: Alum is used in rosin sizing as a retention aid and as a drainage aid.

Alum added in sizing controls pH, fix additives onto fibers and improves
tetention.
3) Fillers: Finely dividedwhite minerals fillers are added to papermaking

furnish to improve the optical and physical properties of the sheet. The
common papermaking fillers are Clay, calcium carbonate, Talc, and
Titanium dioxide etc.
4) Dyes: Dyes are added for two basic reasons:
a) To produce a definite coloured paper
b) To improve the whiteness of
uncovered paper.
We use Methyl violet dye.

Stock Preparation I (SP I)

SP I is the stock preparation plant for Paper macjine I
The stock is prepared for different varieties of paper running on aper machine I
like
1) Surface Sized Maplitho (SSML)
2) Surface Sized Maplitho (Super High Brightness) SSML (SHB)
3) Surface Sized Pulp Board (SSP Board)
4) JK Excel Bond
5) Coated Base

Stock Preparation III (SP III)

39

The different qualities being produced on PM III are

1) J. K. Copier
2) Maplitho
3) Modi Xerox
4) MX Spectrum

Stock Preparation IV (SP IV)

The stock prepared for different grades of paper on PM IV are
1) Surface Sized Maplitho / writing Paper
2) J. K. Excell Bond
3) JK Bond
4) J. K. Copier.
5) JK easy copier

Stock Preparation - V (SP V)

The stock supplied for producing different varieties in PM V are
1) Surface sized Maplitho
2) JK Copier
3) Copier plus
4) Sparkle
Besides these in stock preparation different chemicals are prepared. They are
1) Alum Preparation Plant
2) Dye Preparation Plant
3) Rosin Preparation Plant
4) Starch Preparation Plant

40

5) Talcum Preparation Plant

II. Finance
Gross Sales Turnover
J.K.Paper Limited (Rs. in Lacs)
1

Paper (Coated
and Uncoated)
Pulp Sheet
Total

2
3

2004 05
44496.18

2005 06
51265.16

2006 07
56899.14

2007 08
57201.05

3425.25
47921.43

2040.85
53306.01

2855.41
59754.55

2554.72
59755.77

NOTE
A.
B.

Financial Year from July to June

For 2007-08, the financial year was July to March is 9 months, hence
for this year annual sale figures have been shown here.

JK Papers yearly income

JK Paper
BSE: 532162

NSE: JKPAPER

ISIN: INE789E01012

Industry : Paper
Yearly Results

Sales Turnover

------------------- in Rs. Cr. ------------------Jun '03

Jun '04

Jun '05

Jun '06

Jun '07

585.33

624.97

633.52

732.96

759.48

41
Other Income
Total Income
Total Expenses
Operating Profit
Profit On Sale Of Assets
Profit On Sale Of Investments
Gain/Loss On Foreign Exchange
VRS Adjustment
Other Extraordinary
Income/Expenses
Total Extraordinary
Income/Expenses
Tax On Extraordinary Items
Net Extra Ordinary
Income/Expenses
Gross Profit
Interest
PBDT
Depreciation
Depreciation On Revaluation Of
Assets
PBT
Tax
Net Profit
Prior Years Income/Expenses
Depreciation for Previous Years
Written Back/ Provided
Dividend
Dividend Tax
Dividend (%)
Earnings Per Share
Book Value
Equity
Reserves
Face Value

BSE: 532162
Source : Asian CERC

5.41
590.74
455.35
129.98
-----

9.21
634.18
487.02
137.95
-----

1.16
634.68
517.38
116.14
-----

1.37
734.33
598.86
134.10
-----

3.72
763.20
606.85
152.63
-----

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

135.39
38.13
97.26
38.96

147.16
40.78
106.38
39.81

117.30
39.35
77.95
39.35

135.47
33.84
101.63
47.14

156.35
34.37
121.98
50.48

--

--

--

--

--

58.30
25.26
33.04
--

66.57
25.35
41.22
--

38.60
0.07
38.53
--

54.49
18.69
35.80
--

71.50
25.40
46.10
--

--

--

--

--

--

---11.98
-27.57
47.73
10.00

---7.49
-55.07
140.90
10.00

---7.00
-55.07
136.41
10.00

---4.58
-78.15
-10.00

---5.90
-78.15
-10.00

NSE: JKPAPER

Reuters: N.A N.A

42

III. Personal
PERSONNEL DEPARTMENT
The personnel Department is a specialized unit to handle the advisory functions,
the administrative functions and co-ordinate the implementation of the overall
personnel policy of the Mills.
Discipline
The personnel department is the custodian of Factory Discipline and is
responsible for implementation of various rules & regulations, statutory and nonstatutory provisions. Besides, admonishing personally on the delinquent, the
disciplinary action against employee is also taken through the personnel
department. In case of misconduct by any of the employees, the Departmental
Head concerned shall send a complaint to the personnel department in the
prescribed form along with a Preliminary Enquiry Report. On receipt of these
two documents, the General Manager (Personnel) decides whether the delinquent
is to be called personally and disposes of the case or to issue the charge sheet. In
case the charge sheet is to be issued, it shall be prepared in the personnel
Department and send to the CE (W) for his approval and signature.

43

Group Mediclaim Insurance

All workmen and staff (grade I to VI) on the companys roll are eligible to
receive benefit under the scheme. For others, the insurance coverage is extended
on payment of prescribed amount as premium. The minimum and maximum sum
insured under the scheme for overall liability are Rs.15000 and Rs.85000
respectively. The minimum and maximum limit for domiciliary hospitalization is
Rs.3000 and Rs.17000 respectively.
a) Hospitalization expenses for medical surgical treatment at any nursing home/
hospital in India
b) Domiciliary hospitalization benefits on domiciliary treatment in India.
Gratuity
An employee is eligible to receive gratuity on termination of his employment on
account of reaching the age of superannuation, resignation or death provided he
has put in five years continuous service in the company. An amount equivalent
to 15 days salary for every completed year of service, subject to a maximum of
Rs.3.5 lacs is paid as gratuity to eligible employee. In case an employee dies
whilst in service, the gratuity becomes payable even if he has not completed 5
years continuous service.
Provident Fund
On the date of joining, employees become eligible to be covered under PF. In
case where the employee has already been covered under Provident Fund while
in previous employment, he continues to be eligible. 12% of wages/salary upto
RS. 6500/- per month is deducted from an employee' salary towards his
contribution to the fund from June 2001. On wages/salary exceeding Rs.6500/per month, 12% deduction is made for employees contribution to PF.
Employees pension scheme which has come into force w.e.f. November 16,
1995 is applicable to all PF members except those who are not covered under the
employees Family Pension Scheme, 1971.

a) Expenses to be incurred on prolonged diseases duly certified by specialist.

b) Post- graduate education

44

c) Payment of LIC premium

d) Marriage of daughter, son, dependent (s), brother, sister etc.
e) Construction of houses

Health
A well- equipped dispensary provides medical facilities to the employees of the
Mills not covered under ESI Scheme. There is a full-fledged 25-Bed ESI
Hospital situated in the outskirts of the township.
Well-equipped first aid boxes are kept in all conduct as per statutory provisions
and there is comprehensive coverage of employees in first Aid Training
programmes.
Regular health survey of all employees is conducted once in two years by the
Chief Medical Officer of the Mills. Those employees having poor health are
suitably counseled from time to time.
For those employees not covered under the ESI Scheme, there is a Group
Medical Insurance (Hospitalization) Scheme. Health check up camps for
employees and their families and also for the Adivasi population in a around
Jaykaypur are conducted by Lions Club of Rayagada and other philanthropic
institutions with substantial held from Mills from time to time.
Educational Facilities
The Lakshmipat Singhania High School imparting education through the media
of Oriya. Hindi, Telugu with over 2,000 students on its rolls is a full-fledged
High School and has facilities of Higher Secondary stage in Arts and Commerce
Streams. Besides, and English medium Schools Lakshmipat Singhania Public
School is functioning imparting education according to All India Syllabus of
Central Board of Secondary education. Both these schools are run and managed
by Lakshmipat Singhania Education Foundation, New Delhi, which also
provides substantial funs for the operational and developmental needs of the
Schools. Jaykaypur Students Welfare Trust. Jaykaypur awards merit-cum-means
Scholarships to student s and runs a Book Bank to provide text books to needy
students, besides organizing debates, Elocution, Quiz, Essay competition etc,
Social, Cultural & Welfare Highlights

45

The following highlights mark the social, cultural and welfare activities in an
around Jaykaypur:
The Mills, in association with the Lions Club of Rayagada and Seva Kendra The Mills is association with the Lions Club of Rayagada and Seva
Kendra a social service organization of Jaykaypur the Government
officials and the people in neighboring villages have involved themselves
closely with social, welfare work. Eye Treatment Camps are being held at
Jaykaypur / Rayagada annually since 1978
for which major assistance in the form of men, money and materials is
rendered by the Mills.
Besides, a number of Health check-up and immunization camps, Hearing
Conservation Camps, dental Camps and Medical Treatment Camps,
exclusively for babies and school children are being held periodically or
annually buy difference services institution like the Lions Club of
Rayagada, Jaycees, Mahila Mandal and Mahila Vikas Kendra of
Jaykaypur, Gopabandhu ubak Sangh etc., with the active cooperation and
monetary assistance from the Mills.
Through Seva Kendra, besides rendering help to the people hit by natural
calamities lie floods, fire and drought; assistance is also being rendered to
the Adivasis in the neighboring villages in the mater of primary and adult
education.
Pucca buildings for six primary and one M E Schools have been
constructed by Seva Kendra and three
adult education centres are currently functioning in the villages adjacent to
Jaykaypur. Steps have also been taken to provide alternative source of
potable drinking water to the villagers on the banks of river Nagavali by
sinking / digging tube Wells and Open Wells. Presently Seva Kendra is
enlarging employment opportunities to rural youth and family Welfare
Programmes in collaboration with Rashtriya Gramin Vikas Nidhi,
Bhubaneswar Branch and Population Foundation of India, New Delhi.
Educational Institutions of the neigh boring villages as well as Rayagada
got liberal donations in both cash and kind on different occasions. Both

46

Rayagada College and Womens College of Rayagada owe a lot to the

Mills for their growth.
The Mills have contributed generously over the years to the District Red
Cross Organization, particularly for the Blood Bank opened at Rayagada
in 1983.
For the women-folk in Jaykaypur, there are Mahila Mandal and Mahila
Vikas Kendra promoting recreational and cultural activities through
Mahila Silpa Kala Kendra, training is imparted to ladies in Tailoring
embroidery. Nritya Sadan imparts training to boys and girls of the colony
in music and dance.
.

IV. Marketing
Types of Paper
JK SS Maplitho

54 to 140 gsm

SS Pulp Bond

185 to 285 gsm

JK Excel Bond

70 to 90 gsm

JK Bond

58 gsm

JK Copier

75 gsm

JK Easy Copier`

70 gsm

Xerox Paper

75 gsm

Spectrum

75 gsm

Copier Plus

80 to 100 gsm

Xerox Paper `

80 gsm

47

Coated Paper and Board

JK Coate art paper, Art &Board (Gloss & Matt)
JK Coate Chromo Paper & Board(one side coating)
Upto 170 gsm- paperAbove 170 gsm- boared
Upto 140 gsm paper
Above 170 gsm board

HOME AND OFFICE STATIONARY

JK Copier

Features
Designed specially for single and multicolor prints in laser printers
Ensure good picture quality- great for downloading from the net.
Crisp print quality long lasting whiteness.

End uses
Ideal for letters presentations and reports.

48

JK Easy Copier

JK Easy copier is the leading economy grade photocopying paper with

excellent run ability on all machines.

Features:
JK Easy copier improves the efficiency of copier operations byo Increasing the drum life of the copier machine.
o Ensuring the smooth flow of paper into the copier machine
preventing jamming.
Excellent performance on all types of copier machines

high and low speeds, single path and multiple paths.

Long lasting shade.

Good photo imaging.

Designed for both single and double sided copying.

End uses
Photocopying and desktop publishing.
JK Excel Bond

49

JK Excel Bond is a super white water mark bond paper in 250 sheets and
100 sheets consumer packs.
Features
Super fine and ultra white 97+brightness paper.
Long lasting whiteness.
Excellent whiteness.
Ideal for resumes, inkjet, laser printing, corporate & personal letterheads.
End uses
Photocopying and non-touch printing.
General office stationary.

JK Copier Plus

JK Copier Plus is super white multipurpose premium grade copier paper.

Features
Designed specially for high resonance printing.
Ideal for desktop multi colour printers.

50

Ensure very good crisp print quality.

Smooth surface.
Ever lasting whiteness.
End uses
Ideal for reports.
Downloading of pictures inkjet and laser printing.
Presentation, Resume and other reports etc.

Segmentation of Paper /Paper Board User:

The use of paper/ Paper Board is everywhere in the world; different
varieties of papers are used by different segment of the market. Papers are
produce at different variety to satisfy the various needs of the users. Broadly we
can classify the paper using segment on the following basis.

a. Industrial segment:

All printing Industries prints Newspaper, Magazines, Books,

Journals etc.

Consumer product industry, Commodity Product Industry, Industrial

product Industry, that need paper and paper board for wrapping and
packing their products.

b.

Commercial segment:

The manufactures of Dairy, Notebooks, Writing pad, Calendars, etc.

Photocopy Centers that uses paper for Xerox.

Paper that usages as Fax roll, Bill of S.T.D., Computer Printing.
Tissue Paper that uses in Hotels and Restaurant.

51

c.

Educational segment:
Students of school Institutes, that usages paper for learning purpose.
Schools, Collages, Institutes, that demands paper for their day to day
functioning.

d. Office or Stationary segment:

Paper that needs in government and private offices for day-to-day
functioning.
Special kind of office register, copy, files etc.
DISTRIBUTION OF GEOGRAPHOCAL AREA
TO DIFFERENT ZONAL OFFICE OF JKPM

NORTH ZONE
EAST ZONE

WEST ZONE

SOUTH ZONE

52

Advertising & Promotions

In order to provide information about our products and services and to
constantly stay close to our customers, JK Paper Ltd. has been practicing a
wide range of advertising and promotional activities.
Some of the activities that are regularly carried out by JK Paper are:Advertising-Magazines, Radio, Internet
Loyalty programs
Free sample distribution
Point-of-sale displays
National Consumer Promotion Schemes
Exhibitions
Road shows
Advertising
JK Paper Ltd. regularly advertises in Magazines, radio and internet to ensure
that our valuable customers and business partners are kept informed and
updated about the innovations and improvements we bring about in our
products and services.
Our Press & Radio Ads
Loyalty Programmes

53

Loyalty programmes are one of the ways to reward our business partners for
their association with the Company as well as for showing trust and
confidence in us and our products. In line with this, we have been running
JK Copier Super Sitare, a Trade Loyalty Programme, since 2005-06. This
Programme is the first of its kind in the Indian Paper Industry.
Top
Free sample distribution
Free samples are mostly distributed to our customers to generate awareness
and then product trials through sampling of our various retail brands.
Top
Point-of-sale displays
Special displays using Danglers, Posters etc. are being done to display
product features and other information about our retail products in and
around our retail counters to generate awareness.
National Consumer Promotion Schemes
We periodically conduct national level sales promotion schemes, of limited
duration, to incentives our product sales among customers. These schemes
are in various forms like gifts through scratch card coupons or lucky draws.
Exhibitions
The Company regularly participates in National and International
Exhibitions like Stationery Fair, Paperex and Asian Paper to promote the
Company and its Products and have first-hand interaction with prospective
customers.

Road shows
This is a forum to facilitate one-to-one interaction between the Company
and its Customers - ranging from Printers to Jobbers to Trade. These Road

54

shows are held periodically at various locations across India and help to
exchange information on a range of issues like the market in general or the
products and services of the Company in particular.

It is the main order receiving channel or marketing channel of JK Paper M il

ltd where the orders comes from the end user to the whole seller then after its
comes under the area sales manager/branch manager who comes under different
zones of JKPaperMill ltd then it goes to the marketing Head Office New Delhi
who forward orders to central pulp mill(CPM),surat and jk paper
mill(JKPM)jaykaypur.

4.CHAPTER4: CONCEPTUAL PROFILE

55

a. theoretical aspects of the SALES

MANAGEMENT PROCESS
INTRODUCTION :
Sales management process is all-important link between a manufacturer and his
customer. The concern is for designing a distribution strategy to facilitate the
smooth physical flow of products from the manufacturer to the place from the
customer can buy them.
Channels of distribution refer to the alternative paths through which the goods
can be routed. The word channel has its origin in the French word for canal. The
term channel of distribution thus connotes a pathway taken by goods as they
flow from the point of production to the point ultimate consumption.

In the current customer focused and shrinking lead times, business success is
derivative of the organization efforts to transform their resources tangible and
intangible to deliver right product at the right time. It can also be said as the
organizations growth and success is largely depends upon its selling and
distribution strategy.
A channel of distribution some times called, as marketing channels is a group of
inters

related individuals or organization that directs the flow of products to

consumer. Such a group of organization is called marketing intermediaries

because it facilitates exchange between producers, other intermediaries and the
final consumer of products.

56

In simple word a channel of distribution consists of specialized marketing

institutions that relates to each others as buyer and sellers. It is a pipeline for
goods flow from manufacturers to consumers because the distribution is often
the least flexible elements of the marketing mix, marketing channel decisions are
a key component of the marketing mix.
DEFINITION
A Distribution Channel is a path traced in the direct or indirect transfer of title
to a product as it moves from a producer to ultimate consumer.
By : Cundiff, E. W., and Still

57

A Distribution Channel is the structure of intra company organization units and

extra company agents and dealers, wholesale and retail, through which a
commodity, producer service is marketed.
The term Channel of distribution is used to refer to the various intermediaries
who help in moving the products from the producer to the consumer.
Channel of distribution are concerned not only with the physical movement of
goods but also with their promotion, selling, and marketing control.

TYPES OF MARKETING
Now days there has been a trend towards a greater presence of intermediaries
because
Cost of selling directly to consumer has rise very rapidly.
Many industries have concentrated on lowering inventory
carrying cost by placing inventory when and where it is needed.
Large distribution chains have grown in size in many industries.
A marketing channel, that is used for one product may not be suitable for another
product. Thats way a no channels are available for consumer and organizational
products as well as for products marketed in foreign countries.

Channel of distribution can be grouped under two headings.

1. Direct selling by manufacturer
2. Indirect selling through middleman.

58

1. Direct selling by manufacturer:

It means supplying the products to the consumer directly without any
intermediaries or middleman. Here the option available to manufacturer are to
use own salesman. Or arranging own decisions using post office or to establish
own retail shop.

2. Indirect selling through middleman and intermediaries :

In the case of manufacturer take the help of middleman or the agencies to

research their ultimate consumer. These middle man are two types:

1. Functional middleman :- who performs marketing function with out

aving title of goods. Some functional middleman are mercantile
agent, broker etc.
2. Merchant middleman :- Are those who obtain title of goods to sell
them at a profit. They work not for commission but for a margin of
profit. Some mercantile middle man are wholesaler and retailer.

59

DISTRIBUTION CHANNEL OF JK PAPER MILL

60

Alternative marketing channel of distribution :

Manufacturer
Or
Producer

Manufacturer
Or
Producer

Manufacturer
Or
Producer

Retail

Manufacturer
Or
Producer

Wholesale

Retailer

Agents

Wholesaler

Retailer

Consumer

( direct )

Consumer

( indirect )

Consumer

( indirect )

Consumer

(indirect )

CHANNEL DESTRIBUTION

JKPM

CONSIGNMENT
AGENT

WHOLE
SELLER

RETAILER

DIRECT
CONSUMER

CONSUMER

61

Selecting an appropriate channel :

Marketing channel

decision is among the most important decision that

management faces. A company channel decision are linked with every other
marketing decisions. The companys pricing depends upon whether is uses mass
merchandise or high quality specialty stores. The firms force the advertising
decisions depend on how much persuasion training, motivation and support the
dealer need. Whether a company develops or acquires certain new depend on
how those products fit the capabilities of its channel members.
As distribution is often the least flexible element of the marketing mix,
distribution channel

decision is a key component of the marketing mix.

Distribution Channel decisions often involve long-term commitment to other

firms. The management must design its channel

carefully with an eye on

tomorrow because once a marketing channel is established it is difficult and

costly to change it.
Channel decisions refers to the selection of best routes, paths, for moving goods
form product to consumer and it is to be carefully decided because ;
The cost involved in the use of channel enter the price that
consumer has to pay.
The channel decision also has a bearing on other marketing
decisions linking pricing, product, and pricing.
The selection of channel is generally governed by the following factors:
The nature and type of product :- the factor to be considered while
deciding a channel are products price, weight, standardization,
products nature, after sale service.

62

Nature and extent of market :- areas to be considered are market

size nature of the consumer (according to their use) location of the
buyer, number of consumer etc.
Existing channel for comparable products :- while taking decisions
about the marketing channel

the channel

operated by the

competitors are also to be considered.

Cost involved in distribution:- it is the most important factor that
determines the marketing channel.
Buying habits the consumer:- while deciding the channel

the

company must make an expectation of the quantity to be purchased

by the consumers.
Middleman

consideration:-

the

company

must

take

into

consideration the availability of the middleman, the cost to be

incurred and the benefit to be received etc.
Manufacturers considerations:-

the financial position of the

company or the manufacturer and the volume of production also

matter while deciding the marketing channel.
In making a choice the manufacturer has to consider his objectives, resources
and the channel available to him after considering the above factor. The most
preferable channel of distribution which will produce the combination of sales
volume and costs that, yields him the maximum amount of profit.

63

Finally it to be conclude that a rational decision for marketing channels should

ensure:

Maximum geographical coverage of the market.

Maximum promotional efforts.
Minimum cost.
Criteria for evaluation of channel members :
The task of manufacturer does not end after the channel have been decided. The
services performed by the various agencies is also to be evaluated or reviewed at
frequent intervals.
The following criteria may be used for evaluation of channel members :
Their sales performance
Their marketing capabilities
Their motivation to increase the volume of sales
Competition faced by them
Their growth prospects

64

FLOW OF ORDER
RETAILER
WHOLESELLER

BRANCHS (4.NO)

EAST

WEST

NORTH

J.K.PM WORKS OFFICE

(SALES)

SOUTH

65

CHANNEL DESGINING DECISIONS :

While designing the channel the following steps need to be followed :
1. Analyzing customers needs i.e. the service output levels desired by target
customers. However channel produces 5 services outputs.
Lot size
Waiting time
Spatial convenience
Product variety
Service back up
2. Establishing objective :- the objective should be stated in terms of targeted
service output level under competitive condition channel instruction should
arrange their functional task to minimize channel

costs with respect to

desired level of service output.

3. Identifying the major channel

alternatives :- a channel

alternative is

described by the following three items.

Type of available business intermediaries
The number of intermediaries
Terms and responsibilities of each channel members.
4. Evaluate the major alternatives : under the light of economic, control,
adaptive criteria.
5. Establishing the distribution system.

66

FUNCITONS OF MIDDLEMAN OR INTERMIDIARIES :

Market channel members are critical to the success of any market endeavor
because they specialize in facilitating exchanges. They helps in reducing the cost
of distribution.
Marketing intermediaries can be divided into two categories such as :Merchants: are the intermediaries who assume the ownership of products
and resell them at a profit.

Agents: The intermediaries under this category do not purchase products

and as such assumes no ownership of products. They negotiated and
expedite between the buyer and seller for commission.
Generally the channel members performs the following functions :1. SORTING:- It is the process through which the supply of goods and
services produced by the manufacturer is matched with the assortment
demand by the consumer.The activities performed by the middleman,
under sorting are :
a. Sorting out :- Classifying the heterogeneous product
b. Accumulation:- It means combining small groups of similar
products into large group of homogeneous products.
c. Allocation:- It means braking down large homogeneous stock
into small groups.

67

d. Assorting::- It is combining products into collection or it also

refers to the assortment which satisfier the consumer demand.
2. BUYING: The middleman purchases a broad assortment of good from
producer or the channel members for selling purposes.
3. CARRYING INVENTORY: The middleman assumes all the risks lies
with the purchase of the inventory.
4. SELLING: The channel member perform all those activities, required
to sell a product.
5. TRANSPORTATION: Sometimes the channel members arrange for
the transshipment of production.
6. FINANCING: Middleman provides the funds to cover the cost of the
channel activities.
7. PROMOTING:

Middleman or channel

members perform all the

activities to market the product or to promote the product in the

market.
8. NEGOTYIATING: Sometimes the channel member negotiate for the
price fixation.
9. MARKETING RESEARCH: Channel

members also provides the

information about the market, customers etc.

68

10. SERVICING: Middleman provides various services such as credit

delivery, return etc.

69

ROLE OF MIDDLEMAN IN INDIAN ECONOMY

WHOLESALERS
Through the channel members are an important part of the organization and they
performs certain various functions, some complaints made against them are as
follows:
It is very often contended that the charges a made by the middleman
are much more than the due to them and that this is due to their
effort to appropriate as much as possible out of the price paid by
consumers.
Sometimes it is also argued that the number of middleman are too
high and they are nothing but parasites thriving at the expenses of
the consumer.
During the period of shortage they concern supplies and dictate the
price which customer has to pay or has to go with out the product.
Sometimes the services performed by the middleman are not up to
satisfaction.
They do not take interest in increasing sales volume. Neither they
bear the risks arising out of the strikes, disturbance, recession etc.
Most of them just work as transfer agents.

70

As a step towards elimination of middleman, some manufacturer have started

opening their known retail shop. It would thus appear that some manufacturers
are trying to perform the functions of wholesalers themselves and the target of
their attack is the wholesaler but not retailers.

RETAILERS
The federation of India Chamber of Commerce and Industry, has pointed that
retailers in India work on very low margins varying from 1.5% to 7.5%.
The Indian retailers are able to survive on low margin, due to his
remarkable capacity for thrift.
When there is keen competition retailers tend to undercut each
other.
They performs various functions such as finance, risk sharing etc.
They compensate themselves by taking higher margin on their
products or by increasing their turnover.
RECENT TRENDS IN MARKET:In recent times firms have been taking to different kinds of non-traditional
channel arrangement such as :
a. Out sourcing of channel arrangement/ marketing logistics.
b. Exclusive retailing

71

Out sourcing of channel arrangement/ marketing logistics.

Complete out sourcing of channel arrangement is the most striking of nonconventional attempts. In this kind, firms contract outside logistics specialists to
operate as their marketing channels.
Exclusive Rretailing :Many firms have practicing exclusive retailing for the past several years. In
recent years however the idea has proliferated fast. More and more companies
are now recognizing the adequacy of the traditional wholesaler, retailers, and are
going in for exclusive retail and are going in for exclusive retail network.
The different forms of exclusive retailing are as follows:
Exclusive dealers without franchising arrangement.
Exclusive retailing through showrooms.
Exclusive retailing through shop-in-shop.
Franchising

72

B .application of the concept

SELLING AND DISTRIBUTION CHANNEL AT J.K.P.M.
1. INTRODUCTION
2. FUNCTIONS OF SALES DEPARTMENT
3. USES OF ERP IN SALES DEPT
4. PRODUCTION PLANNING
5. ORDER CONFIRMATION
6. AMANDEMENT AND CANCELATION OF SYSTEM
7. ORDER PROCESSING AND EXECUTION SYSTEM
8. RECEIPT OF MATERIAL
9. PACKING MATERIAL
10.FINISHING PRODUCT HANDLING AT GODOWN
11.DESPATCH PLANNING
12.CENTRAL EXCISE
13.TRANSPORTATION
14.INVOICE CUM CHALLAN/ DOCUMANTATION
15.HANDLING CUSTOMER COMPLAINCUSTOMER
COMPLAIN
16.ROOT CAUSE ANALYSIS & ACTION PLAN FOR
MANAGEMANT DEVELOPMENT

73

INTRODUCTION
The word with dynamic environment is increasingly depended upon the
communication information, and its transfer. Hence paper play upon a vital role
as a media of it. One can easily imagine what sort of jeopardy this world would
have been if by some celestial magic paper just vanishes.
In present scenario of Market Selling and Distribution channel has to be given
more importance. It is one of the broad decision areas of the marketing strategy.
Distribution channel is usually understood as the channel in which the title of the
goods (ownership) flows from the manufacturer to the consumer of goods. This
is different from physical distribution which signifies the Physical flow of
goods.
Distribution channel is a set of interdependent organization involved in the
process of making a product or services available for a product or service
available for use or consumption by the consumer or business user. These are the
simplest collection of firms tied together by various flows.
The distribution channel moves the goods and services from producer to
consumers. It overcomes the major time, place, and possession gaps that separate
goods and services from those who would use them.
In J.K.P.M. they dont have the separate provision for the Marketing Department
the functions related to marketing is been taken care by the Sales Department.
The following are the some of the functions of marketing which is been
performed or discharge by the Sales Department.
Receipt of order and execution.
ERP in sales department

74

Production programme.
Manufacturing and packaging.
Despatches.
Arranging for the selling and distribution.

FUNCTIONS OF SALES DEPT

1.
2.
3.
4.

production planning & execution of programme to ensure productivity.

periodical management reporting.
timely reply to question outside & with in the organisation.
production co-ordination with head office to meet their reqquirment to
their satisfaction.
5. co-ordination with other department in the mill particular with production.
6. coordination between the work between works & head office.
7. to plan despathes to various destination through out the country.
8. to deal effectively with complaints relating to distribution.
9. periodical review of interval quality audit report(every month.
10.responsibility for looking after safe work atmosphere in working area.
11.to identify training needs of the employees working in sales department at
the subordinates.
12.to ensure effective management of Rayagada cutting centre.
13.maintain liaison with central excise authorities for proper observance of
rules/ produces under central excise rules.
14.development of MIS reports.
15.problems solving with trouble shooting during day-to-day activities in
ERP.
_________________________________________________
1. day to day central excise records/ reports.
2. weekly returns(E Filling)
3. monthly excise returns(ER-1 &CESS).
4. CT-2 & CT-3 receipts/ upkeep.
5. export orders production programme despatch planning/pick slip.
6. export documentation(invoicing/area 1 / area 3 / packing list)
7. proof to export record keeping & follow up.
8. service tax claims/ records.
9. RCC delivery/ despatch/stock/loss accounting/bill recording.
10.OCRM production:- record,accounting.

75

1.
2.
3.
4.
5.
6.
7.
8.
9.

1.
2.
3.
4.
5.
6.
7.

Pulp packing operation.

internal transfer pulp sheet.
order approval/ price checking / pick slip of pulp.
capital budgeting.
receipt/ issue/ accounting of transit document. Road permits including
way bills.
accidents reporting/records.
safety steward.
TPM & QC related activities.
co-ordination for ISO-9001-14000/OHSAS management system
interpretation.

despatch planning for domestic order.

allotment destination wise trucks to transporters as per agreement.
sales orders approval.
price checking.
pick slip preparation .
reel weightment sheet.
daily coordination with HO & branch offices regarding priority in
despatches.

1. production programming issued as per the tentative programme received

from HO & pending order.
2. monitoring of receipts vis production programme.
3. communication regarding short/ excess/ piece meal delivery.
4. daily co-ordination with PF and FH regarding priorities.
5. delivery schedules commited in orders.
6. daily MIS reports to HO & branch office.
7. transporter wise destination wise branch allotment monitoring register
updataion.
8. pick slip preparation.
9. reel weightment sheet.

1.
2.
3.
4.
5.
6.

daily receipt/ despatch monitoring of uncoated grade.

packing material planning, procurement & follow up.
new item codification of packing material.
service PO/GRR for contracter bill packing.
customer complain handling.
inventory transfer of wrapper reels.

76

7. issue/ receipts/ accounting of jk excel board 90 gsm.

8. new report development in ERP

1.
2.
3.
4.
5.
6.
7.

daily receipt/despatch monitoring of coated grade.

godown house keeping/location planning.
godown space management.
stock reconsilation & reverse auction.
recording of contracter work details.
ship confirmation & invoicing of all moving loaded truck.
preparation of transporter wise truck indent and failure report on daily
basis.
1. daily receipt confirmation of uncoated cut size.
2. daily despatch checking of uncoated cut size.
3. loading supervision items.

1. daily receipt confirmation of uncoated cut size.

2. daily despatch checking of uncoated cut size.
3. loading supervision items.

1.
2.
3.
4.
5.
6.
7.

1.
2.
3.
4.
5.

day to day setting of despatch documents & sending to accounts.

preparation of way bill statement.
job work challen preparation.
RCC challan preparation.
cross checking of day to day delivery in system with physical report.
invoice/ despatch documentation checking.
factory gate pass checking/release of trucks.

letter despatching
filling/records keeping.
general correspondence.
printing / stationary items arrangement.
loading super vision of trucks.

77

PRODUCTION PLANNING
Production programme
Purpose
To establish a procedure for production programming.

Scope
The scope above procedure shall include production programming of all paper
machine aspe the set budgets and guide lines for proper manufacturing &
execution of orders.

Process input
Input

Sources

Frequency

Review
criteria

1.

Month budget

MKT. Dept.

Monthly

Variety GSM wise

Received from

quality to be

H.O

manufactured in

2.
3.

Stock and
order report
Programme
file machine

Internal

As when

each machine
Availibilty of stock

Internal

required
As when

To check the

required

quanitity yet to
received against
previous programme

78
and W-I-P position
from PF
Pending

whole seller/

As when

plant/finshing house
To check

amendment

branches

required

amendment and

4.

cancellation

cacellation if any for

advices from

that particular item

branches/whol

by any whole

e sellers
Production/

As when

sller/branch
Nomenclature of the

required

product/variation

5.

H.O

despatch
advices

clause/despatch

received from

schedule/special

export division
6. Letters from

H.O/branch

HO/branch

As when

packing requirement
Nomenclature

required

grammage/packing
mode and detail
technical
specification in case
of new/trail product.

Activities
Basing on the monthly production received from H.O. a machine wise / date
tentative to facilitate overall planning.
Subsequently based on the actual order flow/ priorities/ machine &
process requirement machine wise production schedule is prepared for 10
days citing the GSM wise quantity and sequence with appropriate remarks
regarding customer/export & priorities etc.

79

Production programme is prepared size wise by the referring to the

pending order status/priorities of order excutions/ availability stock/ WIP
& conforming to the quantity are marked for the each variety & grammage
in the ten days schedule or as decided in the day to day production
meeting.
Production programme is issued to PF Plant under copy to stock
preparation quality control and finishing house item prepaid for Rayagada
cutting center as spelt cut if required.
Important information like lot reference/ technical speciation if specified/
UCRM or normal furnishing/ export/ packing mode/period of delivery etc.
are spelt out in the production programme if available copy of such
interaction and also enclosed.
Day to day monitoring of receipts of material to Godown against the
quantity programme receipt quantity is entred aginest relevant production
programmer giving the lot reference and date.
Meeting with representative of PF plant and finishing house is held
regularly to discuss priorities of production and dispatch so that
converting and finishing is done accordingly.

Monitoring criteria

1) production planning

Age wise pending of orders & FIFO in

80

2)
3)
4)
5)
6) delivery posting
7)
8)

manufacturing to the extend possible

.
Prioritization of orders with the budgeted
quantity.
Material planning for cutting center.
Controlling generation of uncovered stack if
any to facilitate deckle matching by
identifying nearer marketable size from
available order
Step up & step-down requirement in
matching
Giving priority of cutting & finishing to PF
plant & finishing house.
Minimum run quantity incase of special
quality / grammage.
Monitoring piece meal deliveries.

Process output
Output
1)
programme

To
Production Manufacturing
Department/PF plant /
Finishing house/ Quality
control
/
stock
preparation
2) Data wise / machine GM (Dev) Delhi all
wise tentative production manufacturing
schedule
department stores/ all
branch managers

Review criteria
Item
wise
quantity
priority
special
instructions
packing
requirement.
Tentative
schedule
quantity
machine

date
wise
of
budged
at
every

Types of paper production by machines

Paper machine no-I

Mplitho, pulp board coated base

81

Paper machine no-III

JK copier 75-80 GSM Xerox paper

75-80 GSM

Paper machine no-IV

JK easy copier 70 GSM, JK Bond 70

GSM, JK excel Bond 70,80,90 GSM,
Maplitho 100,120 GSM.

Paper machine no-V

Copier plus, JK Copier, Mplitho,

Sparkale.

Coating plant

PMI produce base paper for coating

plant 300 GSM.

TENTATIVE PRODUCTION PLANNING REPORT(JULY 08)

JK PAPER MILLS
JK PUR
(INTER OFFICE MEMO)
From
To
Chief executive(works)
Whole time director(Sri O.P
JK Pur
Goel)
New delhi
JK Pur/sales/82/2008
Date 1.07.08
Sub: tentative production programme for the month of july 2008
We can giving have the tentative production programme for the month of july 08

Paper machine no 1
1/07/08 to 31/07/08

Coating base for JKPM

all GSM

3910
Total = 3910

Paper machine no 3
1/07/08 to 31/07/08

JK Copier 75 GSM

2930
Total = 2930

JK Easy Copier
SPL grade
JK excel bond
JK Bond 70 CS
JK Bond 58 FS
JK Easy Copier

315
100
125
30
125
540
Total=1235

Paper machine no 4
1/07/08 to 7/07/08
8/07/08 to 10/07/08
11/07/08 to 13/07/08
14/07/08 to 14/07/08
15/07/08 to 18/07/08
19/07/08 to 31/07/08
Paper machine no 5

82

1/07/08 to 2/07/08
3/07/08 to 3/07/08

JK Copier 75 GSM
JK Copier 75 GSM80GSM
JK Copier 75 GSM(exp)
Xerox paper
Sparkle
JK SS Maplitho(SMB)
80 to 120
JK Copier 75 GSM

4/07/08 to 6/07/08
7/07/08 to 10/07/08
11/07/08 to 14/07/08
15/07/08 to 18/07/08
15/07/08 to 18/07/08

130
70
250
300
250
300
765
Total=2065
Grand total= 10140

DESPATCH WISE PRODUCTION- JULY 08

m/c
no
I

III

Variety
Coated
Base for
JKPM
Total

GSM

Domestic

Export

Total

Rate of
finishe
d
prod/h
our

All

3910

----------

3910

5.50

3910

711

75/80

2430

----------

2430

4.19

580

JK CopierNon A4

75/80

500

----------

500

4.19

580

2930

----------

2930

-------

699

58

125

---------

125

1.50

83

58
6090

30

----------

30

1.50

20

225

----------

225

1.30

173

70

855

----------

855

1.95

438

1235

----------

1235

-------

715

70

----------

70

2.95

24

JK BondFS
JK BondCS
JK Excel
Bond
JK Easy
Copier
Total

711

JK CopierA4

Total
IV

3910

No o
hour

JK Copier
Plus

80

83
SS
Maplitho
Plus
JK Copier
Xerox
75/spectrum
Sparkle
Copier

80120
7580
7580

300

----------

300

3.00

100

895

250

1145

2.95

380

300

----------

300

2.95

102

75

250

----------

250

2.95

85

1815

250

2065

-------

698

9890

250

10140

Grand Total (I to V)

For 300 GSM production

300 GSM
__

Coated paper

28 GSM Coated
272 Base Paper

For 125 GSM production

125 GSM
__

Coated Paper

28 GSM Coated
98 Base Paper

Conventional raw material are prepared from the natural raw material like
wood
Bomboo, conventional raw material are the pulp basically which is
prepared by
these wood and Bomboo.

84

Unconventional raw material (UCRM) are called the wastage of the paper
which
is again put in the pulp Chester reproduce pulp, which can be again used
as

paper base so these wastage of paper are called unconventional raw materia

which is prepaid by the reprocess of wastage recycle of wastage paper to make

Enterprise resource planning

Enterprise Resource Planning systems (ERPs) integrate (or attempt to integrate)
all data and processes of an organization into a unified system. A typical ERP
system will use multiple components of computer software to achieve the
integration. A key ingredient of most ERP systems is the use of a unified
database to store data for the various system modules.
It attempts to integrate all departments and functions across a company onto a
single computer system that can serve all those different departments particular
needs.
MANUFACTURING PROCESS
It is the step wise process or scheduled process of the manufacturing of finished
goods from the raw-materials.
Example: Generally, in the paper industry the manufacturing of products is held
through the following process
Yard (raw material-Godwn)

Chipper house (wood cut into 5 cm in length)

Digester (for washing, cooking and, screening)

Chemical recovery (for chemical treatment)

Pulp mill (for pulp production)

Stock preparations (for verifying the pulps stock)

85

Paper machine

(for paper production)

PF plant

(for roll cutting)

Finishing house (for sheet cutting A4, A3, FS)

Wills cutter (for counting and packing)

Stocks (for storing of the finished goods)

Sales department (for sales in the market)

MANUFACTURING PROJECTS
In the organization the management always tries to improve its products quality
by applying new thoughts. It always tries to manufacture new products to
compete with the other companies. When such plan arises the management
prepares a project for it. Such project is called manufacturing projects.
MANUFACTURING FLOW
The constant production or manufacturing of a product is called as
manufacturing flow, it can achieve by no break downs in production area.
Its main motto is achieve zero accidents, zero defects and zero break downs for
which manufacturing process can be stream lined.

SUPPLY CHAIN MANAGEMENT (SCM)

SCM is the process of planning, implementing and controlling the operations of
the supply chain with the purpose to satisfy customer requirements as efficiently
as possible. Supply chain management plans all movements and storage of rawmaterials, work in process inventory and finished goods from point of production
to point of consumption.
INVENTORY
Inventory is a list of goods and materials or those goods and materials held
available in stock by a business. Inventory is also called the godown of an
organization. It stores the all the items from raw-material to finished goods, for
the consumption.
Example: raw-materials, electrical items, finished goods, etc
ORDER ENTRY

86

This is a term used for the various customers those who have placed their order
for particular item or product by which we can see the demand of our product.
It is also the order placed by the organization to various suppliers for the
requirement of the raw material for the production of their various products.
PURCHASING
It is a function in business where by the enterprise obtains the inputs for what it
produces as well as other goods and services it requires in larger business
function, the function is frequently carried out by purchasing department.
PRODUCT CONFIGURATOR
It is the term used for the configuration of the products or the raw-materials for
the production process. the whole process is carried out under the supply chain
management.
SUPPLY CHAIN PLANNING
It is a part of supply chain management; it arranges the planning for the delivery
of goods from the point of production to the point of consumption.
SUPPLIER SCHEDULING
It is the planning of various suppliers, those supplies the raw-material to the
organization. This term is used for the minimize the suppliers supply
INSPECTUON OF GOODS
In this process the inspection of goods is held by team of engineers or
employees, whether the supplier has supplied the require raw-material or not,
they also check the quality and the manufacturing date of the goods. If the
inspection team founds every thing is correct then they forward the goods to the
inventory. As it is ready for the production or consumption.
CLAIM PROCESSING
In this process the various claims are processed, at the time of inspection of
goods if the inspection team founds any kind of claim about the goods then it
sends its report to the this section for the verification similarly if any claim
found for the delivery of goods or from customers area then it is responsible for
the verification.
COMMISSION CALCULATION
It is also said as the profit calculation or it is the profit of supply chain
management. The various profits come from the various areas of suppliers or by
delivery of goods. As the management have to provide different commissions to
the suppliers as well as to the customers

87

IN ERP SYSTEM

USES OF REP IN SALES DEPT.

Adoption purpose
Time save

Data base management

Less error

Men power
Speed

Easy data retrieve

HEADS
OF
ERP

LOCAL ISATION

PROCUREMENT/
INIENTORY

FINANCE

MANUFACTURING
MODULE

SALES AND
DISTRIBUTION
MODULE

88

WORK ORDER PROCESS

STATUS

CREATION
PART LIST ATTACHMENT

10
30

MATERIAL ISSUE

45

TIME ENTRY

52

WORK ORDER COMPLETION

80

The whole process is from order receipt to order execution.

ORDER ENTRY

ORDER EXECUTION

ORDER ACTIVITY RULE

STATUS

Order entry

521~530

Order approval/confirm

530~535

Stock allotment

535~540

89

Pick slip printing & ready for loading

540~560

Ship confirmation

560~580

Invoice

580~605

Gate pass

605~620

Sales update/ data submission

to accounts dept.

620~999

ORDER CONFIRMATION
Purpose
To establish a procedure for ERP sales order/ ERP transfer order receipt

Scope

The scope of above procedure shall include scrutinise/ acceptance received from
whole sellers branches/ consignment & head office.
Process input
Input

Reviewcriteria

a) deckle matching in case of special

1. ERPvarieties/
sales
gram mages
2.
b) product specification & lot
3. orders/ ERP transfer reformeo if any.
order
c) special documentation needs in the
view of despatch of CT2 /CT3 / block
transfer / any other exemption based
on the duty status.
e) applicability of insurance
f) L/R & invoice requirement
g) door delivery address if any
h) special price if any
I) packing requirement
j) transit requirement

90

PROCESS INTERFACE ACTIVITY

1) The orders are purchased in ERP system by whole sales/ branch / head
office.
2) The mill is receiving the order in the status 530-535
3) If the order is ok in all respect then we are accepting the order & then
status is changed to 535-540
4) In case of any discrepancies it it pointed out to concerned branch / whole
seller & necessary clarification / rectification / milling information are
called for.
5) In case of specialisation / independent orders the machine in which
production will be taken ascertained & deckle suitability is assessed.
Presently following is the minimum deckle utilisation requirement below
which deckle loss will be changed.
PMPMPM-

I - 325 cms
II -178 cms
III -360 cms

PM-

IV -258 cms

PM-

V -260 cms

MEASUREMENT AND MONITORING OF PROCESS/PRODUCT

To study the availability of market orders to facilitate deckle matching on
the other wise ash for self combination or exercise the option of deckle
loss.
Process output
Output

Review criteria

1) Updated whole seller 1.pendency of orders w/s wise / depot wise

wise pending order
2) Updated stock & order
report

91

AMENDEMENT AND
CANCELLATION OF ORDERS

Purpose

To establish a procedure for amendment & cancellation of orders.

Scope
The scope of above procedure shall include amendment and cancellation
received against all orders received from whole sellers. Purchase order of direct
customer and stock requisition advice receive from branches/ consignment
agents/ production or distribution advice received from HO/ branch offices.
INPUT
1. Amendment cancellation advices
from H.O/Branch through email/fax copy
2. Related ERP order in ERP
system
3. Production programmed order
Vs delivery report.
4. 4. stock and order report

REVIEW CRIERIA
1. To determine the method
amendment sought i.e product
releted.
2. To check whether of special or
popular size and the status of
dispatch.
3. To check whether the order has
been programmed and the
manufacturing status
4. 4. To examine the possibility of
diversion in case the material is
already manufactured to some
other parties against available

5. Whole sales wise pending order

orders.
5. To examine the possibility of

92

report.

diversion in case the material is

already manufactured to some
other parties

INDENT FROM WHOLE

SELLER THROUGH
BRANCHES

PURCHASE ORDER FROM

BULK CONSUMER

MILLS

SCRUTINY AS PER LAID DOWN PROCEDURE

Activity

1) If the amendement cancellation is accepted PF plant & firm. House are

ACCEPTANCE OF ORDER AND ORDER CONFORMATION
intimated
suitable in case the production programme is already released.

2) Cancelled in ERP system.

MANUFACTURING
PROGRAMME
3)
Despatching planning
sectionTOisPRODUCTION
made awareDEPARTMENT
about the amandemnt/

cancellation pending updatation computarised record.

PRODUCTION PROGRAMMES WITH DATE WISE PRODUCTION SCHEDULE
4) In case amendment/ cancellation is not accepted same is regretted to the

concerned whole seller through the respective branch by mailing the

RECEIPT OF PRODUCT R FROM FINISHING HOUSE-PACKING-WARE HOUSING

reasons.
DESPATCH/LOADING PLANNING-PLACEMENT OF TRUCKS- LOADINGAS PER
LOADING CARD-PREPARATION OF DOCUMENTS AS REQUIRED-TRANSPORTATION TO
DESTINATION

ORDER PROCESSING AND

EXECUTION SYSTEM
DESPATCH DOCUMENT SENDING

DIRECT TO THE
CONSUMER

TO CONSUMER
THROUGH BRANCES,
CONSIGNMENT AGENT

TO THE WHOLE
SELLERS

93

RECEIPT OF MATERIAL
The sales dept receipt materials from :
1. PF plant dept: it receives COPIER,BOXES(WILLS CUTTER)
2. Finishing house dept: it receives BUNDLES

94

PAPER

COATED

BUNDLE

REELS

UNCOATED

BOXES

BUNDLE

REELS

PROPER PROCESS
After manufacturing the goods/producing goods the reports comes to the sales
office about finish goods and how much manufacturing & how much Qty,
manufactured and how much stock received to the godown and then printing
daily very report about receipt of finish goods.

PACKING MATERIAL
PACKAGING
Packing is required to protect the products form damages and to place the
product in a right place and right condition. It performs many functions like
attracting attention to describing the product, to making better sale of the
product. JKPM
adopted the following method of packaging for safe delivery of the product.

95

JUMBO REEL

BABY REEL

SHEET CUTTER

WHEELS CUTTER

REEL ORDER

REEL ORDER
WOODEN
PALLET
STRETCH
ANGLE BOARK
EDGE
PROTECTOR

REEL
CORE PLUG
SIDE -DISK
DD PROTECTION
STRAP
FINISHING SEAL
CARTOON PACKING
CARTOON
STRAP
CELLOTAPE
BUNDLE
HDPE
JUITE TIONE

FOLIO REEM

REEM

PALLE
T

BUNDLE

CARTOON

REEL

BUNDLE

CARTOON

96

POLYTHEN
Bundle weight should not exceed 72 kg. as per reams weight
Bundle height 40
Reems and cartoon used to cover with polyminated wrapper covers
Weight measurement of bundle,reel,cartoon,packing.
Net weight = 10 kgs of paper
Tare weight = 0.5kgs of packing material
__________________________________
Gross weight 10.5 kg of total papers with packing Material

FINISHING PRODUCT
HANDLING AT GODOWN
Purpose
To establish a procedure for activities involved in physical handling of item
delivered to go down.

Scope

97

The scope of above procedure shall include packing/ material/ stacking/

weighment/ physical as per prescribed norms & maintenance at good house
keeping.

Process interface activities

Stacking of bundle is done as per the location showing by super vision.
Detail of stitching done vis--vis the quality should been available as per
the delivery report is checked and recorded. Any discrepancies observed
are pointed out.
Reworking of stocks is done as and when necessary.
Item wise reconciliation of stocks is carried out after receipt & despatches
& discrepancies if any are pointed out. Identification of stocks is ensured.
Pallet issued stock older then 9 months are opened t assess the condition &
replacement if fined in order.

Activity
For pulp
a) Pulp sheet are tied with glue twine to form bales of 50 kgs and shifted to
pulp sheet godown.
b) At the end of each day no of bales packed or ascertained & after physical
reconciliation production figures are provided to pm/c(opr)
c) Based on the delivery report received from pm/c (opr) stock cards & bale
weightiest particular are repudiated.
d) Bales when ever required packed with pp pieces as per the advice of G.M.
e) For Despatchment for CPM depot bales are packed with Kraft wrapper,
plastic strap & Tinseal
a) When ever there is required of pulp at pulp mill, required quality &
quantity shifted to pulp mill on account of internal consumption.

98

Regular cleaning of Godown & periodic dusting of stocks are

carried out.
Godown lights are switched off in non working hours/ morning
hours.
Periodic anti-terminate treatment & roof/drain cleaning exercise are
carried out in all storage areas by civil department to avoided any
damages to the material stored.
Fire fighting arrangements provided at different storage area as per
requirement are checked out by fire fighting personnel for tie in
condition periodically.

MEASUREMENT & MONITIROING OF PROCESS / PRODUCT

Stage/ section
monitoring criteria
Stage/ section

1.Stacking

2.Weightment

3. Reconciliation

monitoring criteria

1) stacking as per location prescribed & gap is maintained from stock

to stock to avoid mix up.

2. a) to check the accuracy of weighting scale & rectification of

if any proper consideration of
tare weight.
b) proper remark regarding packing mode employed &
Location.

3. timely follows up with finishing

in receipts.

error

house for rectifying discrepancies

99

4.Rrecording

4.the output is properly updated contractor wise to ensure proper

payment

REVIEW CRITERIA

OUT PUT

1. m/c wise item wise quantity packed

1. Packing slip of cut size papers
2. Updated contractor bills register
3. Age wise stock analysis
4. receipt checking report

2.tonnage worked under various payment

heads
3.age wise old stock
4.details of discrepancies

5.items detail, stock card, quantity, new loca

5. restacking allotment format
6. m/c wise/ head wise
6. updatation contractor bills

amount due, deduct

7.no of bales, total quality sale/ internal accou

7. pulp sheet production on the day

DESPATCH PLANNING
Yearly production of JKPM in units 1150000ton
There are 72 whole seller of JKPM are in india.
A tentative production planning of a complete month is given by
the head office new delhi to JKPM. This programme is
predetermined or we can say a monthly budgeted for JKPM and the

100

JKPM must carry on his production programmes according to this

production schedule providing by H.O.
Daily receipt of orders through internet is another function of sales
department.
This production programme is used to reach at JKPM (sales) on 1 st
day of every month
When branches send work orders to JKPM, they also send another
copy of same work order to H.O. like that H.O is always informed
of every work order placed to JKPM (sales) by branches.

Dispatches
Purpose
To establish a procedure for despatches of finished products (paper & pulp)

Scope
The scope of above shall Include planning, loading & document involve in
despatches

of

finished

products

(pulp

and

paper)

to

sale/customer/branches/over seas buyers for proper execution of orders.

Process input
Input

Review criteria

whole

101

1. Despatch advice received from a. name & address of party

head office ERP Export order
b. nomerclature, GSM, size, ream,
weight.
c. quantity to be despatches
d. rate per tonne is USD
e. expiry date/last date of
despatches.
f. advance lincence no.& date
g. special instrument if any
h. stutting plan if provided

proper process of dispatch is

STITCHING STACKING LOADING
Bundle weight should not exceed 72 kg. as per reams weight
Bundle height 40
Reems and cartoon used to cover with polyminated wrapper covers
Weight measurement of bundle,reel,cartoon,packing.
Net weight = 10 kgs of paper
Tare weight = 0.5kgs of packing material

Gross weight 10.5 kg of total papers with packing material

CENTRAL EXCISE
TAX

Indirect Tax

Direct Tax

102

Which can be transferable

Which is not transferable

EX: customs duty, service tax,

VAT
CENTRAL EXCISE : It is charged completely only on the manufacturing
companies. Means all those company who adopts a systematic process
wise schedule for production, only those type of companies are liable to
bear these central excise duty.
Example
A company has raw material through a certain process to produce its
finished product.
Like paper industries used bamboos and wood as raw material through
systematic process to produce paper as finished product. So these
company have to paid these excise duty to central govt & also other
manufacturing company.
At the time of dispatching of goods or paper to whole seller or
branch the company is bound to payable the excise duty.
Other then not a single goods cant be removed from godown .(it is applicable on certain item
like cigarate, liquor,gutka).

Total months excise duty is payable at a time by the 6th of every

month as per central government rule for JKPM.
There is no relation between CST(central sales tax) & central sales
tax is payable on the production of goods amount dispatch to
outsiders like whole seller, branch.
Paper excise

8.3688 %

Break up

+ paper cess

0.125

% basic
%

103

_____________________________
8.125

+education cess 2%
8.125*2%

0.1625

+higher education cess 1%

8.125*1%

0.8125

______________________________
Paper excise

8.3688

______________________________
Service

= 12% service tax

+education cess

1%

+secondary edu cess 2%

0.36

_______________________________
Service tax

12.36%

________________________________
Custom duty: on imported goods form foreign cue have to paid custom duty.
Total calculation on import of goods
CVD- customer value duty calculated on customer duty.
SEZ special economic zone is like a foreign territory. The organizations
coming under these zone have to export their goods & products to foreign
only. They are not liable to pay any excise duty.
If any company wants to export any goods t SEZ, then that
company also not liable to pay any excise duty. It is like export of
goods to the foreign.

TRANSPORTATION

104

Purpose
To establish a procedure for transportation of paper & pulp through road by
transporters or through rail container.

Scope
The scope of above procedure shall include selection, induction, performance
monitoring, renewal of agreement of transporters & fixation of rate to different
destination for dispatch of finished products (paper & pulp), through truck & rail
contractor.
PROCESS INPUT
CRITERIA

REVIEW

1. quotation for different

Destination

a) Comparative rates for different

Transporter.
b) Trend of increase or decrease.
c) Rates given by regular
transporters to particular
destination.
d) Lowest and highest bidding &
Compensation with rate collected
by us.
a) impact of any hike on fuel price

2. Fringe data collected from different

Or

freight permit point.

b) Movement of seasonal corps and
availability of trucks locally and
at
3. Application for induction as our
approved transporters

4. Quotation sent to our consultant to

transshipment points.
a) Whether financially sound.
b) IBA approved.
c) Bringing an inward load
d) Experienced with reputed firm/
own sister concern or
recommendation of our
customer
e) Network of branches.
f) Placement of companys trucks.
a) the quoted freight rate should

105

select destination wise transporters

through elective auction
5. Reverse auction done by consultant
Electronically
6. Truck programming loading
registration
7. Quotation for freight

not exceed the more than last

years historic freight fright rate.
a) to finalize the lowest bid
a) transporters wise transient &
placement details.
a) destination wise containers &
freight/scope of transportation
delivery item.

Annual renewal of agreement / freight fixation

b) Enquiry floated among all the approved transporters for quoting among all
the approved transporters for quoting their competitive rates for different
destination before the beginning of any quarter.
c) Prevailing rates are also obtained from various transhipment points over
telephone/ by deputing our responsibility/ or through our branch & offices.
d) Basing on the rates quoted comparative rate chart is prepared & is
compared with rates collected by us.
e) The freight rates thus finalised is put up to vp citing the reasons of any
upward/ downward revision.
f) A copy of comparative rate charts along with the reason of fluctuation if
any are sent to CE (marketing & sales - paper) under copy to all branches

MEASUREMENT AND MONITORING OF PROCESS/ PRODUCT.

PROCESS OUTPUT

REVIEW CRITERIA

1. fixation of destination wise 1) truck load note, statistical

freight
charges door delivery direct truck
charges where ever application.
charges,
2. Agreement letter

2)validityperiodtwotransporterswher
e selected for
each destination
& the business is
divided in the
ratio of 70:30 to each transporters

106

INVOICE CUM CHALLAN/

DOCUMATATION OF
DESPATCHES
An invoice is the document under cover of which the excisable goods are
to be cleared by the manufacturer. This is also the document which
indicates the assessment of the goods to duty. No excisable goods can be
cleared except under an invoice. The invoice is the manufacturers own
document and though the Department has specified the entries thereon, the
format etc. is left to the manufacturers choice. Rule 11 of the Central
Excise (No.2) Rules, 2001 (hereinafter referred to as the said Rules)
provides that no excisable goods shall be removed from a factory or a
warehouse except under an invoice signed by the owner of the factory or
his authorized agent.
The invoice shall be serially numbered and shall contain the registration
number, description, classification, time and date of removal, rate of duty,
quantity and value, of goods and the duty payable thereon. The serial
number shall commence from 1st April every year [beginning of a financial
year].
The serial number can be given at the time of printing or by using
franking machine. But when the invoice book is authenticated in the
manner specified in sub-rule (5) of rule 11, each leaf should contain serial
number. Hand written serial number shall not be accepted.
In case of computer-generated invoice, the serial number may be allowed
to be generated and printed by computer at the time of preparation of
invoice ONLY IF the software is such that computer automatically
generates the number and same number cannot be generated more than
once. For this purpose, the Central Excise Officers may check the
system/software from time to time.

107

The invoice shall be prepared in triplicate in the following manner,

namely: (i)the original copy being marked as ORIGINAL FOR BUYER;
(ii)the

duplicate

copy

being

marked

as

DUPLICATE

FOR

TRANSPORTER;
(iii) The triplicate copy being marked as TRIPLICATE FOR ASSESSEE.
The above requirement is mainly for Central Excise purposes. However,
the assessee may make more than three copies for his other requirements.
But such copies shall be prominently marked "NOT FOR CENVAT
PURPOSES
The pre-authentication of the Invoice which is a statutory requirement is
exempted to JKPM since the said unit is paying the annual revenue for
more than 5 Corers from Personal Leger Account i.e. current account.
Documentation of despatches
The sales department maintain a record of receipt of finished product quality
wise and date wise arrange for secondary pacing, making the product ready to
dispatch. All the packed products are stacked in the godown quality wise,
systematic for easy retrieval and easy physical count.
All despatches are also recorded and immediately after the despatches for
better control.
The balance of stocks on hand are systematically arrived at end very often
physically checked to check for any variation. In case of variation,
investigation is made to find the reason and remedial measure are taken to
arrest such shortages in future.

CUSTOMER COMPLAIN
Purpose:
To establish a procedure for dealing with customer complain at sales department.

108

Scope:
The scope of above procedure shall include dealing complains of customers
relating to quality of packing, damaged delivery/ short delivery of goods/delay
etc, for identification of reasons and taking necessary corrective and preventive
action for avoiding reoccurrence.
Customer complains are basically based on these factors.
COMPLAIN REGARDING

ACTION

TAKING

DEPARTMENT

Paper quality

manufacturing department

Wrong dispatch

sales department

Short dispatch

sales department

Damage in packing

finishing house

Quality mix up

sales department

GSM variation

manufacturing department

Dull shade

manufacturing department

Etc etc
Above mentioned are the problem the customer are basically complained about.
And separate actions are taken by related departments to satisfy customers. And
their claims is
To act like preventive to these problems, so it results to unbelievable result in customer
complains.

Procedure of customer complain

If a customer wants to register a complain regarding above mentioned problem,
he has to follow certain procedure like that; he has to filling up separate

109

customer complain form. And have to

submitted at branch office. After

getting that letter from branch office or whole seller the sales / manufacturing
department are taken their systematic actioned to prevent these problem.
Procedure of actions against complains / 6 steps
There are 6 steps of jkpm (sales) to check and verify the complain . These 6
steps adopted by sales are used to found the error , truths behind customer
complain. And also used for giving compensation ror redelivery of goods to the
customer .
There are 6 steps
Non conformity report : here the actual aim of sells department to found the
place or position or circumstances in .which goods are damaged.
Whether goods are damaged in
JKPM GODOWN
OR
IN TRANSSHIPMENT POINT GODOWN (EX-AT VIJAY NAGARAM
OR RAIPUR)
OR
IN DEPO GODOWN AT BRANCH
OR
AT THE TIME OF DISPATCH OF GOODS DIRECT TO WHOLE
SELLER
OR
IN TRANSIT
This is a big task to found the goods are damaged all the above points of
godown are responsible of goods & they have to paid for their fault.

110

If goods are damaged in transit way or In the trucks then the transporter
has to give a LR (LORRY RECEIPPT)in each there must be a brief
description of goods damaged in transit or in the truck and the related
transporter has to paid for these damage
The transporter is fully responsible if goods are damaged in transit.
If goods damaged in transshipment point or depo then they have separate
persons who found the actual facts and compensate accordingly to
customer
The main aim of these verifying authority is the settlement of the
complain on the spot as soon as possible.
II. WHY WHY ANALYASIS
III. ROOT CAUSE
IV. ROOT CAUSE RELETED TO
MEN/METHOD
MACHINE EQUIPMENT
MATERIAL
V. CORRECTIVE AND PREVENTIVE ACTION (REGULAR DAMAGE
REPORT)
VI. IMPLEMENTATION OF CORRECTIVE PREVENTIVE ACTION
Process interface activity
1. On receipt customer complain details are entered in the register.
2. After investigation report is send to CTS department for doing the need
full at their end findings are recorded in register.
3. Suitable reply if required is made with the complaint. Necessary
correspondence is done with the transporters /Rayagada cutting centre if

111

they are involved. Details of such correspondence are recorded in the

register.
4. Root cuase analysis is done and corrective preventive action request
format is filled up and sent to CTS dept. details are also recorded in the
register.
5. At the end of every month ,monthly analysis of customer complain if
received and dealt directly at sales dept is sent to CTS dept.
6. Trend analysis of complaints is done periodically .
CTS- control and technical support

Measurement and monitoring process/ product

Stage /section

Monitoring criteria
1. All the informations are available to facilitate

1. Receipt
2. Investigation

proper investigation and establish proper corelation

2. Proper root cuase analysis is done
3. Corrective and preventive actions are properly

3. Action plan
designed
4. Preventive auctions are properly communicated to
4. Implantation

all concern. Documentary changed if necessary is

effected in relevant QMP/WI/check list
5. Trend analysis of complains are done to analysis
the frequency of occurrence. Efficacy of

5. Review
corrective and preventive action and device
necessary changes

112

ROOT CAUSE ANALYSIS &

ACTION PLAN FOR
MANAGEMANT DEVELOPMENT
Objective1
To maintain month & despatch stock in godown equivalent to last day
delivery.

Problem
presenting we are not been able to clear all despatches material in the
month end. We are left with despatchable material more then last days
delivery to godown.

Why Why
1. non placement of trucks
2. non constitute of complete truck load
3. branch/ consignment transfer order manufactured & delivered
towards end of the month.
4. phase delivery requirement shewing despatch towards end of
month
5. last moment release of orders by branches leading to late
indenting & non availability of transit documents/ stationary
forms.
6. non availability of transit documents/ stationary forms.

113

Action plan
1. day to day reconsillation will be made for total godown stock,
uncovered stock & with stock orders & meet despatchable.
2. responsibility gap between covered stock & despatchable stock will
be identified. Necessary communication will be made with branch/
HO to over come this short falls.
3. branches will be advised to give their depo transfer requirement
yearly in the month so that they can be manufactured and
despatches before last week subject to manufacture.
4. manufactured & delivered printings to be given to BT/CS as in the
first tonight subject to manufacturing and combination
requirements.
5. branches will be advised to release the last weeks despatch
requirement of at least to stock items like JK Copier / JK Bond
/excel bond etc. giving a clear phase delivery requirement instead
of relating the orders in last two days. This will help us to
communicate the transporters to arrange trucks. This will be help to
improve truck placement of different / irrigation destination.
6. constant follow up will be made with manufacturing to completing
delivery of special sizes to facilitate regular despatches. Coordination will be made to avoid piece meal delivery to expidite
despatches in daily co-ordination meeting at finishing house.
7. for odd destination truck load availability will be analysed & the
short fall will be communicated to respective branches to release
the balance quanitity form available stock.
8. ST/OT (reporting of stock to godown) will be prioritized for
despatchable stock.
9. communication will be made with branches to make available the
transit documents/ stationary forms well in advance.

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Objective 2
To bringing down the order execution lead time.

Problems
Delay in order execution (made the normal lead time accociated with
different product) leading to customer dissatisfaction.

WHY WHY
1. dislocate in original production schedule
2. Non manufacturing of certain varieties due to technical reason.
3. Delay in production due to non availability of packing material.
4. Non availability of transit / statutary forms / documentation.
5. piece- meal / staged delivery of special sizes delaying order
execution.
6. non constitution of truck loads in case of irregular / odd
destination
7. continues non placement / inadequate placement of trucks from
certain destinations.
8. pending of order more then the monthly quantity allocated for
manufacturer.
Action plan
1. branches will be ashed to spell out the priorities of the whole
seller after getting monthly date wise production schedule and

115

the pending order position. In case of pending on month

production budget.
2. timely analysis of suffering of transit documents and followed
up with branches
3. during accurate storage of trucks despatches through wagon
one to be explored.
4. one month inventory of packing materials.(buffer stock) shall
be maintained in case of all branded products, for ensuring
production time as per schedule
5. in coated production cycle of lower, middle & higher grades
will be taken.
6. FIFO will be maintained ( with zone & destination ) to execute
the old orders first.

Objective 3
To reduce generation of uncovered stocks in special size & made to order
items.

Problems
Generation of uncoated stock in special & made to order items leading to
disposal in heaving discount.

WHY WHY
1. piece meal delivery. Lack of co-ordintion between sales &
manufacturing regarding completion of delivery before final
despatch of material.
2. physical mismatch of material due to mismatch between actual
delivery and delivering report.

116

3. excess manufacturing & delivery of special size & made to order

items(beyond permission tolerance limit).
4. non availability of material during loading.
5. wrong item codification in ERP leading to wrong reporting in
system.
6. deckle matching requirement / cutter loads creating extra
quantities.

Action plan:
1. complete delivery will be ascertained from finishing house before
effecting final despatch of special size orders.This will be
faciliatated in the daily co-ordination

meeting held by sales,

finishing house, PF plant & coating plant official.

2. manufacturing will be advised to reduce the frequency of delivery of
special size/ small quanitity orders.

Objective 4
To reduce the customer complaints regarding wrong despatches
and water damage delivery.

Problem

117

The number of customer received related to dispatches,water damages

during 05-06 &06-07 have gone upenormously leading to customer
dissatisfaction and compensating financial losses on part of our
organization.

THE BREAK UP MAJOR AREA OF COMPLAIN AREA OF

COMPLAINTS ARE AS
04-05

05-06

06-07

Wrong despatches

08

33

44

Water damages

00

18

Action plan
1. wrong despatches
a. better visual impact by putting critical information with in a
black.
b. Better illumination of godown
c. Educating the loading mates to load the trucks by checking
variety,GSM,size through communication meeting.
d. Furthere screening/cross checking at transportation points.
2. Wet material.
them pulp again and can be used in the paper making process.
.

Performance evaluation of dealers

The firm must draw a system of evaluating the performance of the dealers at
regular intervals. In every field, the performance evaluation plays a vital role.
Unless the performance of the dealers is monitored, corrective measure cannot
be taken by the firm. After selection and appointment of the dealers, their

118

performance is to be measured at regular intervals, to ensure that the dealers are

going in tune with the firms interest. The evaluation should take care of the pre
agreed standards to avoid any dispute. Further, in sales operation, dealers face
varying environment.
Some parameters to measure the performance
Market share
Sales intensity
Storage space
Inventory holding
Standard of service to customers
Customer complaints
New account enlistment
Market awareness
Sales promotion
Public relations
Settlement of bills
Credit recovery
Financial strength

5.CHAPTER-5:
FINDING ANALYSIS AND
INTERPRETATION
a. Scope of the study
This scope of the study was restricted to JKPM, jaykaypur only.
This report on JK paper mills, is basically meant t represent the basic function of
marketing in relation to sales and distribution and the various aspects, the issue
that goes to make up an effective selling and distribution system in connection
with marketing.

119

It also presents first hand information regarding the organization, marketing,

sales and distribution, system, working hours and condition nature of production,
and also about the provision for man power requirements in the company.

b. Methodology
Since the study undertaken by me is related to the overall study of selling and
distribution channel, the means adopted for collection of various facts and data
were in the form of personal observation, officials and documents, departmental
ISO manual and directly interacting with the officers concerned.

Work is mainly emphasized on the primary and secondary data. Primary data is
gathered from different books and for secondary data is mainly based on the
prescribed QUESTIONNAIRE and by personal interview and the secondary data
are collected from the above mentioned sources.

c. Finding analysis and interpretation

JKPM ltd
JKPM started at 1962. JKPM is producing writing and printing paper including
coated, board paper & main leader in copier grade paper.
Paper has been produced by making pulp from hard wood and bamboo and
processing through paper machine.
The quality of JK paper is .
Type of
response

No of
respondent

120

Excellent

15

30

Good

23

46

Average

12

24

Total

50

INTERPRETATION: - The above graph the table represents the perception of

the dealer about the quality of JK papers. Out of the total sample size of 50, 15
dealers expressed that the quality of JK Paper is excellent, where as 23 dealers
expressed that it is good and test 12 dealers are expressed that it is average 2.
The relation to dealer of JKPM

Type of Response

No of
respondent

121

Excellent

22

Good

23

Average

INTERPRETATION: the above graph and the table represent of the dealers with
JK papers. Out of the total sample size of 50, 22 dealers expressed that the
relationship with JK paper is excellent. Whereas 23 dealers expressed that it is
good and rest 5 dealers are expressed that it is average.

Type of response

No of response

Yes

40

80

122

No

10

20

Interpretation
The above graph and the table represent that the dealers are satisfied with the
price of the JK papers. Out of the total sample size of 50, 40 dealers expressed
that they are satisfied with the price.

4. Brand name you know of JKPM

Types of paper

Points

Sparkle

JK Copier

50

123

JK Copier Plus

20

Maplitho

Excel bond

10

Interpretation
The above graph and the table represent the awareness of different brands of JK
paper. Out of total sample size of 50, all 50 dealers are familiar with the brand
copier. 20 dealers are familiar with JK Copier plus, 5 dealers are familiar with
maplitho and 10 dealers are familiar with Excel Bond.

During the transit of the product who pay for insurance

Types

No of respondent

Company

Dealer

48

124

Interpretation
The above table and graph contain the insurance paid by the dealers and the
company. Out of total sample size of 50, 48 dealers said that the insurance is
paid by the dealers and only 2 dealers said that it is paid by the company.

7. Mode of transport
Types of response

No of respondent`

Rail

Road

48

96

125

Interpretation
The above graph and the table represent the mode of transport in JK paper. Out
of total sample size of 50, 2 dealers said that the mode of transaction is rail.
Whereas 48 dealer said that the mode of transaction is by road.

7. Are you satisfy with warehousing facilities of JKPM

Types of response

No of respondent

Highly satisfied

21

42

Satisfied

22

44

Not satisfied

14

126

Interpretation
The above graph and the table represent the warehousing facility available in JK
paper. Out of total sample size of 50, 21 dealers expressed that they are highly
satisfied with the warehousing; whereas 7 dealers are not satisfied with JK paper.

8. Do you face any problem in JKPM?

Types of response

No of response

Delay in
documentation

11

22

Delay in supply

14

28

Lack of storage

12

127

facility
Insurance facility

17

34

No difficulties

Interpretation
The above graph and the table represent the various problems faced in JK paper.
Out of total sample size of 50, 11 dealers are faced delay in documentation, 14
dealers are faced the insurance facilities and only 2 dealers are not faced any
difficulties.

9. Why JKPM is pioneer paper merchant in India

Types of response

No of response

Quality

37

78

Price

Services

12

128

Technology

No comments

Interpretation
The above graph and the table represent the reason behind JK paper is called the
pioneer Paper Mill in India. Out of total sample size of 50, 37 dealers said that it
is pioneer due to its price, 6 dealers said that the service of JK paper made it
pioneer in India.

10.Is that inventory of the company sufficient t deliver the immediate order in
time
Types of response

No of
response

Yes

42

84

129

No

16

Interpretation
The above graph and the table represents that the sufficiency of inventory in JK
paper. Out of total size of 50, 42 dealers said that the inventory maintained by
the JK PAPER mill is sufficient to meet the orders and 8 dealers denied it.

130

6 CHAPTER 6: SUMMERY AND

.

SUGGESTION
a. Summery
The sales are compares to the previous year has been increase and the role of the
distribution channel in increased sales be neglected.
The company has a large network distribution channel functioning efficiently to
achieve target sales. Middlemen to distribute the product should be selected on
the basis of credit worthiness. This helps the company to recover from sales. In
the spare of distribution channel unwanted channel should be curtailed. It should
supply its product timely.
The following are the figure of last 5 years
Sl
no
1

Particular

200203
115870

20022201`
113486

200001
96862

19992000
98326

19981999
692687

131

b . Suggestion:
The present ware house is insufficient to keep inventory to meet the
orders. The size of warehouse should be increased.
JK Paper is giving less concentration on local market. They should try to
meet the demand of local market.
The pricing strategy adopted by the JK paper is not appropriate for price
war. The price should change low to some of its brand.
They should concentrate on direct transportation. For that backward
integration of transportation is suggested.
JK PAPER WEB SITE
The dealers are not allowed to book their order through electronic media.
The site provides access to the dealers with their own passwords and they
can communicate with the mills through electronic mails from the web site
and this enables the dealers to book their orders easily and fast.
PERFORMANCE EVALUATION OF DEALERS
An office is assigned with the job of evaluating the performance of various
dealers on quarterly basis. The areas where improvement are needed are
highlighted and taken up with the dealers for improvement giving all support, in
the interst of the business. The feedback is sent to the dealers for improvement.
CONCLUSION
As expressed earlier, there is vast scope for further cultivation in office TPM
subject, for improvement and improvement are bound to come continuously. Still
more and more can be written on the subject. The performance is measured
against targets fixed and target depends on the resources and planning. When
there is improvement the target can be revised and the performance is measured
accordingly. The wholehearted team work from one and all is essential to enjoy
the fruits of the office TPM.

132

QUESTIONNAIRE
Name
.
Address
.
.
.
Phone no

E-mail

1) The quality of JKPMS paper is

a. Excellent
b. Good
c. Average
2) The relation to dealer of the JKPM
a. Excellent
b. Good
c. Average
3) Are you satisfied with the price?
a. Yes
b. No
4) How many brand names you know of JKPM
Sparkle
a. JK copier
b. JK copier plus
c. Maplitho
d. Excel Bond
5) During transit of the product who pay for insurance
Company
Dealer
6) Mode of transport
Rail

133

Road
7) Are you satisfy with warehousing facilities of JKPM
No difficulties
Highly satisfied
Satisfied
Not satisfied
8) Do you face any problem in JKPM?
Delay in documentation
Delay in supply
Lack of storage facility
Insurance facilities
9) In your view why JKPM is pioneer paper merchant in India
Quality
Price
Service
Technology
No comments
10) Is that inventory of the company sufficient to deliver the immediate order in
time?
Yes
No

134

7.

ANNXURES:

8. .BIBILOGRAPHY
1. PRINCIPLES OF MARKETING MANAGEMENT
Philip kotler and j. Armstrong
2. MARKETING MANAGEMENT
Philip kotler
3. ISO-MANUAL of the sales department of JKPM
4. www.jkpaperlimited.co.in
5.
6.
7.
8.
9.

VARIOUS SALES DEPT REPORT

GUIDENCE OF GUIDE
ANNUAL REPORT OF JK PAPER LTD
INDUCTION MANUAL OF JK PAPER MILLS
BROCHURE AND BOOK LETS OF JK PAPER MILL