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SUMMER TRAINING REPORT ON NEW PRODUCT DEVELOPMENT AT Submitted in partial fulfillment of the requirements of the Degree of Master of Business Administration Kurukshetra University Kurukshetra Under The Guidance of Submitted By Mr. Ajit Jain Mahesh sharma (Sr. Manager, Marketing) MBA/03 LPS Ltd. Rohtak 2009-2011

NITIN JAIN MBA-05-04

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Page 1: NITIN JAIN MBA-05-04

SUMMER TRAINING REPORT

ON

NEW PRODUCT DEVELOPMENT

AT

Submitted in partial fulfillment of the requirements of theDegree of Master of Business Administration

Kurukshetra University Kurukshetra

Under The Guidance of Submitted By Mr. Ajit Jain Mahesh sharma(Sr. Manager, Marketing) MBA/03LPS Ltd. Rohtak 2009-2011

N.C. COLLEGE OF ENGINEERING,ISRANA KURUKSHETRA UNIVERSITY KURUKSHETRA

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ACKNOWLEDGEMENT

It is my Proud privilege to put on record my gratitude to all those

who have been the source of guidance, cooperation and help during my

study at Lakshmi Precision Screws Limited, Rohtak.

First of all, I would like to thank Mr. Atul Jain, Assistant

Marketing Manager of LPS & Mr. K.L. Katyal, Dy. Personnel

Manager of LPS, who guided me through out the thesis, right from the

planning to the completion of actual report.

No Acknowledgement is complete without the mention of Mr. Ajit

Jain Sr. manager Marketing of LPS who introduced me the number of

practical aspects about the organization, marketing field etc.

Last but not least, I would like to convey my sincere gratitude to Mrs.

Puja W. Mann HoD (M.B.A. Dept.) in N.C. College of Engineering

Israna for her support and guidance right from the stage of beginning

to the drafting of the Final Report.

I am very thankful to Mr. Ranjeet Verma (faculty of M.B.A. Dept.)

Who provided me help throughout the pursuance of this project

(Nitin Jain)

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TABLE OF CONTENTS

Particulars Page No.

1. Executive Summary 1

2. Industrial Profile 2

3. Company Profile 5

4. Introduction Of The Study Undertaken 46

5. Statement Of The Objective 56

6. Research Methodology 58

7. Analysis & Interpretation Of Data 61

8. Conclusion & Findings 69

9. Recommendations & Suggestions 72

10. Limitations 74

11. Annexure 76

12. Bibliography 78

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EXECUTIVE SUMMARY

The LPS is a Ltd. company. It is established in March 10, 1972.

It’s Full name is Lakshmi Precision Screws Ltd. Mr. Lalit Kumar Jain

is CMD of this company I did my Summer Training in LPS Ltd and

they provided to me a project on New Product Development.

I started my project on New Product Development in beginning

of June. Mr Ajit Jain give me lots of its time for my research I used

secondary as well as primary data. I visited the entire department of

LPS. But my Project is basically related with marketing department.

Mr. Ajit Jain (SMM) helps me a lot. My summer training is of six

weeks.

During the study period of my project, I found overall company

position is satisfactory and it is running well.

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INDUSTRY PROFILE

Put Simply, anything, which joins together two things, is a fastener- a broad and

collection term for nuts, bolts and screws-, which keeps separate assemblies of any engineering

system together in a predetermined position. Fasteners are one of the joining methods, the

other notable being welding and riveting.

Fasteners can be broadly classified into two categories depending upon their tensile

strength, Mild Steel (MS) fasteners and High Tensile (HT) fasteners are used across abroad

spectrum, mostly in general applications, they are produced by the SSI and unorganized sector,

using lather and by rolling.

On the other hand, HT fasteners, which are relatively technology intensive, are

manufactured by a few units in the organized sector via the Cold Harding (a form of forging)

process HT fasteners can be classified into standard (available of the shelf) and specialized

(made to a specific design).

Fasteners have two types of heads: hexagonal and socket heads. Socket head screws

(also known as AlIen Screws or grub screws by machines) are used mainly for industrial

application in textiles, machine tools, pumps etc. and also in erecting transmission towers.

The hexagonal type is predominately used in automobiles and in general engineering.

Specialized fasteners are used for specific applications and are generally tailor-made.

Manufacturers of specialized fasteners have to follow a prescribed design to make a fastener.

The Indian Fasteners Industry is dominated by eight major players who count for

nearly 70% of the total turnover of the industry and 95% of the organized sector. Basically

engaged in servicing the automobile industry, a most logical extension for the companies of

fasteners industry is the manufacture of small auto engine components like radiator caps,

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precision gears, couples etc. The manufacture of various non-standard small components

related to one industry helps a company to give a boost to its operating margin by altering its

product mix. The companies who are able to co generate those small components along with

their main product are the ones, which enjoys higher margins in this industry.

Total Fasteners Market(700 Crore)

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COMPANY PROFILE 2005

LAKSHMI PRECISION SCREWS LTD.46/1 MILE STONE, HISSAR ROAD

ROHTAK 124001, HARYANA

Tel. +91-1262-48288/48289/49920/49921

Fax : +91-1262-48297/49922

Email : [email protected]

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INTRODUCTION ABOUT COMPANY

Lakshmi Precision Screws Ltd. Is a symbol of technical Perfection. LPS (founded in

March, 1972) is one of the leading manufacturers and suppliers of High Tensile Fasteners such

as Bolts, Screws, Nuts and Similar Parts for Automotive, Aviation, Heavy & Light Machinery,

railway etc.

More important is the fact that LPS today brings to its work over three decades of hard

core experience in the field. The present product list of LPS is very vast. All the big company

like Hero Honda, Maruti, Escorts, Eicher, Kelvinator, Tata, Bajaj, LML, HMT. Every one use

and recommends of LPS label.

LPS:

A company where performance is proof which understand his customer & Give

assurance that we will do our best to make our products safe and eligible for our customer's

assembly line.

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VISION OF LPS

MOTTO : Total customer satisfaction & market leadership.

TARGET : Annual growth of 30% with Exports contributing

PLAN : up to 50% of the sales.

FUNCTION : To continuously upgrade process technology &

develop new products.

PEOPLE : System oriented approach. The driving force behind it.

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OBJECTIVES OF LPS

The main objective of LPS is to provide customer satisfaction or we can say that making

things according to customer demands.

THE OTHER MAIN OBJECTIVES OF THE COMPANY ARE:

To Position himself in the Market

To Increase productivity

To Innovate new things

To double the export and bring foreign currency

To get maximum profits

To Increase the performance of employees

To Develop technical and administrative skills.

Optimum utilization of human on Resources.

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BRIEF HISTORY OF THE COMPANY

1959 Established Nav Bharat Industries as small parts manufacture

1972 Established Lakshmi Precision Screws Pvt Ltd. as Socket Head Screws

Manufacturer

1973 Technical tie-up with the German firm M/s Richard Bergner

1977 Acknowledged quality source of fastener

1978 Technical tie-up with M/s Richard Bergner expires.

1983 Secured self certification status from FORD.

1984 Declared Public limited Company.

1986 Secured self certification status Itom M/s Lakshmi Machine Works.

1988 Established as manufacturer-exporter.

1989 Received Regional Export Award from Engineering Export Promotion Council,

(EEPC) India.

1992 Received Regional Export Award from EEPC for the second Consecutive year.

1993 Received Regional Export Award from EEPC for the third Consecutive year.

1993 Established plant - II

1994 Received Employment Generation Award from Director of Industries, Haryana

State

1995 Accredited in Mechanical Measurement, Mechanical & Chemical Testing by

National Accreditation Board for

Calibration & Testing Laboratories (NABL). Government of India

1996 Certified to ISO-9002

1998 Installed Bolt Maker (AF 2525) to add production capacity to 12200 MT

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Self Certification status from TELCO.

Technical Tie-up with Sunil Machinery Corporation, Korea.

Joint Venture with Bossard AG- Switzerland.

1999 Licensed Manufacturers of TORX Screw from Camcar Co. USA.

2000 QS 9000 Certification

2001 ISO/TS-16949 Certification.

2001 ISO-14001 Certification

2002 Implemented ERP-SAP Rl3

2002 Golden Peacock Award.

2003 Environment Award

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ORGANIZATIONAL STRUCTURE OF LPS

Board of Directors

Mr. L.K. Jain Chief Managing Director

Overall

Mr. D.K. Jain Vice Chief Managing Director

Commercial

Mr. V.K. Jain Director (Whole time)

Purchase / Project

Mr. R.K. Jain Director of Export

Department wise Position

Mr. S.K. Jain Marketing Department

Mr. R.K. Jain Export Marketing

Mr. D.K. Jain A/c Excise, Sales, Store

Mr. R.C. Garg Production, Planning & Control

Mr. V.K. Jain Purchase

Mr. J.L. Gupta Personnel, A/C and Finance

Mr. Dhawan Manufacturing (Plant)

Mr. A.K. Jain Information Technology

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KEY EXECUTIVES OF LPS

Company Secretary & DGM (Finance) : H.P.S. Chugh

Auditors : N.G. Gupta & Co.

: Charted Accountant, Delhi

Banker : Canara Bank, Rohtak.

Regd Office, Factory & Corporate Office : 46/1 Mile Stone,

Hisar Road, Rohtak

-124001, Haryana, India

Telephone 91-1262-

248289/249920/249921Branch Office

New Delhi Office : 146, New Cycle Market,

Jhandewalan, Extn.,

New Delhi – 110005 India

Phone : 91-11-23527642/

23532135

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Mumbai Office : 153-A, Mittal Tower, Nariman

Point Mumbai – 00021(India)

Phone : 91-22-22821918/

22843864/22325061

Kolkata Office : 8, Canning Street,

3rd Floor, Room No. 303,

Kolkata- 700 001.

Banglore Office : 305A, Mittal Tower

3rd Floor, MG Road

Banglore-560 001 (India)

LPS Recoil Division : Gh-13/889, Paschim Vihar,

New Delhi. Phone :

91-25280213/

25282179/25575463

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OUTLINE OF THE COMPANY

1 Name of the company Lakshmi Precision Screws Ltd.

2 Founded on : March 10,1972

3 Head Office &Factory: 46/1, Mile Stone

Rohatk-124001

Haryana (India)

4 Chairman & Managing Director : Lalit Kumar Jain

5 Total Assets : 978 Mil. INR (March`2004)

($ 21 Million)

6 Annual Sales : 1123 Mill. INR (March` 2004)

($ 24 Million)

7 Employees

Production Office Others Total

372 312 119 803

46.32% 38.86% 14.82% 100%

9 Factory

SECTION PLANTS TOTAL

Plant I Plant II

w.e.f 1972-73 1993-94

LAND 19000 44000 63000

BUILDING 16000 23000 39000

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FUTURE PLANS OF THE COMPANY

LPS is well on the way to consolidating its future leadership with a rising corporate

graph with and annual growth rate of 40%.

The further plans are follows:

Its further plan is to include continuous investment in R &D.

More concentration on Hard currency markets of USA, UK, JAPAN and EUROPE with the

objective of doubling the exports and to bring invaluable foreign exchange for the country.

On the corporate agenda is a massive expansion program, which includes diversification

into chemicals and engineering.

To improve quality in design and manufacturing through implementation ofISO-9002

system.

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PRODUCTION AND SALES OF THE COMPANY

YEAR PRODUCTION (IN

TONES)

SALES (IN MILLIONS)

92-93 3016 309

93-94 3556 404

94-95 4897 552

95-96 6529 735

96-97 6385 696

97-98 5753 684

98-99 5607 706

99-00 6556 816

00-01 6165 834

01-02 7600 900

02-03 7450 896

03-04 8200 1123

04-05

05-06

06-07

07-08

8325

6789

6374

7800

1200

874

970

1023

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08-09 8375 1234

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Figure showing about the sale of LPS ProductsFigure showing about Sale of LPS Products

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Figure showing about production of LPS Products

Figure showing about production of LPS Production

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VARIOUS DEPARTMENT OF THE COMPANY

Marketing Department

Accounts Department

Sales Department

Export Department

Production Department

Purchase Department

Personnel and Administration Department

Manufacturing Department

Maintenance Department

PPC Department

Quality Control Department

Standard Room

Tool Room

Lab

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QUALITY CONTROL DEPARTMENT

Now it is well known fact that that there is a very high variation between quality

control and company's market credibility. The meaning of the concept quality is ever

broadening and consequently getting redefined. Thus bringing with in its scope questions

pertaining to productivity, cost, efficiency, customer's service and much talked about product

quality. All these questions taken together constitute the operational area for the quality control

department of the enterprise. That is what the quality control department at LPS keeps in mind

and tries to maintain high quality, not just by physical inspection as a ritual but by embedding

it in every process of production itself. They are doing well to identity and measure process

variables, the prevalent practice in the company is to take sample of material at each stop right

from the raw material and testing up to both (a) Govt. Standard (b) Company's own internal

standard. The whole process of testing and controlling has been illustrated below.

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PROCESS OF QUALITY CONTROL

Testing raw material

Issue of material from store

Care of temperature profile

Final inspection (1. dimensional test)

(2. Tightness ring gauge test)

Inspect packing process

Checkout the finished product

As a part of the process of quality control the department is also

responsible for tensile strength etc.

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PRODUCTION DEPARTMENT

For efficient production the department has been sub divided into various units such as

production division, P.P.C. division, quality control division and engineering division. All the

divisions are the part of production department and responsible for regulating all the workers

of production and responsible to report the works manager who us directly reporting to the

general manager. The function of the production department is to effectively plan and regulate

the operation of that part of enterprise which is responsible for actual transformation of raw

materials into finished products. The production activities in the LPS are looked after by works

manager, who is responsible to report the general manager. In LPS, general manager himself

also visits to the production department to observe the working of the plant.

LPS offers a complete range of socket screws, hex head bolts/screws, hex nuts, special

automotive fasteners confirming to international standard.

The basic raw material used in the production of these screws and meets are CHQ

carbon boron Alloy steel wires in rods and coils. The source of raw material is both Indian

market LPS purchases from

1. Mukund Limited, Bombay

2. Bihar alloys limited

LPS also imports its raw material from foreign countries. Main countries are

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PRODUCTION PROCESS

The plant of Lakshmi precision screws limited comprises of modern imported

automatic machines e.g. Nut Maker, Bolt Maker, and Thread Rollers etc. in an automatic

machine the production is of continuous type. The wire is fed from one end to the machine

where it is subjected to three or four simultaneously operation, as the case may be and from

other end we get the finished product e.g. in screw making, parting off, thread rolling

operations simultaneously takes in the machine itself.

From the production, the company requires steel wire rods in the form of coils

confirming to AISI 1541,4140,4137 & 4037 for manufacturing bolts and confirming to AISI

1008, 1110 and 1035 for nuts.

After the screws-bolts/nuts are released from the machine it is subjected to head

treatment/planting operations as per requirements of the party. In head treatment process, the

component is hardened up to a certain grade as prescribed by the customer. Here the

component is heated to a specific temperature and then slowly cooled for desired hardness. The

hardened component is then subjected to planting process where zinc plating is done by

electrolysis process. After the desired plating the component becomes ready for dispatch.

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PRODUCTION PROCESS

Chart

Wire from the bent or coils

Cutting of wire

Forging

Heat treatment

Rolling

Grinding

Plating Phosphate

Finishing

Oiling

Packing

Storing

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MARKETING DEPARTMENT

DEPARTMENT PROCEEDING

Close feasibility

Yes whether the product can be developed by the company or not

Quotation

Rates, lend time for delivery modes S.I,, CST whether applied

Close negotiations

Yes

Purchase order

For 1 year or so

Delivery schedule

As per the requirement in forthcoming period

Development of product

Delivery as per schedule

Types of bills..

Feedback whether accept

To follow up for the payments

Types of payments

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DEPARTMENT PROCEEDING

The department proceeding is the marketing department is a complex process involving

various types of task. The department; proceeding of the LPS are as follows:

First of all a four members or five member committee is made which goes to the

companies to enquire about the product they want. After knowing that what type of product

needed, the feasibility of product is seen that whether the product can be manufactured by the

company or not if yes then the further proceedings are done and if not deal is stopped there

only. Now if the product can be manufactured by the company then the quotations are given

which comprises of rates. Delivery modes ST and CST whether applied or not.

FOR

at our works

at destination free up to city

at your works (total free)

Central Excise Duty

15%

CST interstate dealing inter branch transaction

No CST

ST + 5% only applicable in direct sales to company and not to dealers

After the giving up of quotations, negotiations are held between both the companies

agree then the further proceedings are done and if not the dealings is closed.

Then the purchase order is given by the company for 1 year or more. After getting the

purchase order the delivery schedule is made i.e. that order will be supplied in 2.3 or 4 delivery

schedule the product development starts, which include many processes that is related to

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production department. After the product development, the delivery is made as per the

schedule decided by the company.

Then the feedback is made whether the product is accepted or rejected if there is found

certain discrepancies in the product, then the product is returned to the company. Then follow

up payment is done. The payment is made by two ways.

1) Through bank (Hindi System) company used to get Hindi document accepted from the

customer then they get the money from the bank immediately and the customer directly

to the bank with in the due date.

2) Direct through check or cash payment is made.

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FLOW OF COMMUNICATION

Marketing department mainly works in coordination and planning of production

department. The main communication flow of marketing department is with these two

departments planning and production. Marketing greatness of marketing department beings

orders from the concerned companies and they supply the information to the planning

department. Planning department according the need and necessarily of the item gives

instruction to the [production department when the production of the material starts. The

production department and the marketing department after the material passes stage 1 i.e.

forging. The production department both for confirmation. After supplying of information of

the material undergoes different both for confirmation. After supplying of information of the

material undergoes different stage of production like forging there is rolling then information is

supplied to planning department after each stage of production so that planning department

should be aware that of which stage is material . Now after passing the material to the above

stages the final inspection is done and then the material is passed to the store house. After the

material has reached to store department, the information about the material is supplied to the

marketing as well as planning department. In this communication flow occurs between

departments.

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LIST OF MAIN MARKETS OF LPS

DOMESTIC (USER INDUSTRIES)

Automotive

Aviation

Heavy & Light Machinery

Hydraulic/Pneumatic Pumps

Machine Tools, Jigs & Fixtures

Railways

Refrigeration & Air Conditioning

INTERNATIONAL (COUNTRIES) Australia

Germany

Holland

Hong Kong

Japan

Singapore

South Africa

South Korea

Sweden

Switzerland

United Kingdom

United States of America

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Who are the main Customer of the company?

We can categories the customer of the LPS in two parts:

CUSTOMER

DEALER OEM (Original Equipment Manufacturer)

Here are name of top 10 OEM’s

Hero Honda Motors Ltd,; Dharuhera

1. Telco ltd. Jamshedpur

2. Telco Ltd., Pune

3. Voltas Machine, Hyderabad

4. Bajaj Tempo Ltd.

5. Ashok Leyland, Chennai

6. Escort Ltd., Faridabad

7. Eicher Motors, Pitampura

8. Kinetic Honda Ltd., Pitam pura

9. Maruti Udyog ltd., Gurgoan

Thus the company specially deal with: New OEM

Existing OEM

Dealers

Also Known as Segments of LPS

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PRODUCTS LIST

1- BOLT & NUTS FOR AUTOMOBILES

A ENGINE PARTS

Con Rod

Cylinder Studs

Counter Weights

Cylinder Head

Rocker Arm

Engine Mounting

Main Bearing etc.

B CHASIS PARTS

Wheel Bolts

Wheel Hub Bolts & Nuts

Axle Bolts/ Pin

Flanged Bolts

Collar Bolt

Shock Absorber Mounting Pins etc.

2. FASTENERS

A Construction Parts (Fraction Grip)

Bolts & Nuts for Agriculture Industry

Bolts & Nuts for Industrial Machinery

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B Cold Formed Parts for Automobile

Piston Pins

Switch body

Ball Joints

Gear Blanks

Rocket Shaft etc.

There are mainly two types of Products:

A Standard Fasteners:-

Socket head Cap Screw

Low Head Socket Bolt

Shoulder Bolt

Button Head

CSK

Hex Wrench Keys

Hex Head Bolt

Dovel Pin

Nuts

Friction Grip Bolts

Track Shoe Bolts

Stainless Steel Hex Head

Stainless Steel Socket Head Cap Screws

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B Special Fasteners

These are the product that are made on special order:-

Round Head Bolts

Hang Bolts

Axle Bolts

Connecting Road Bolts

Counter Weight Bolts

Wheel Bolts

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LIST OF MAJOR PLANTS & MACHINERIES

S.NO. PROCESS PLANT & MACHINERY SPECIFICATION Nos.

1 Drawing Pointing Machine Dia 5 – Dia 3o 2Wire Drawing Machine Dia 8 x 55 2Wire Phosphating Plant

2 Heading 2D-2B2D-3B Dia 8 x 70 13D-3B Dia 6 x 55 – Dia 12 x 2504D-4B Dia 6 x 40 – Dia 25 x 200 115D-5B Large Stroke Bold Former 1

5D-6B Parts Former 13 Nut Forming 4D 6-12 mm 1

5D 4-10mm 34 Rolling Roller Type Dia 6 Dia 25 134 Rolling Rotary Type Dia 8 x 55 1

Flat Type Dia 3 x 10 – Dia 25 x 200 175 Washer Assembly 26 Heat Treatment Series Type 2

Batch Type 10Dehydrogen HT 1Pit Heating 5

7 Plating Automatic 1Manual 2

8 Phosphating Automatic 1Manual 1

9 Multi Spindle Automatic M/c Davenport

4

10 Automatic For Box 1Packing M/c For Bag 1

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LIST OF MAJOR PLANTS & MACHINERIES (Contd.)

SN Plant & Machinery Nos.

11 CNC Machines 5

12 Flat Rolling 12

13 Circular Rolling 17

14 Nut Tapping 3

15 Drilling 5

16 Traub 9

17 Center Less Grinding 6

18 Pointing 6

19 Turning 1

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LIST OF MAJOR PLANTS & MACHINERIES (Contd.)

SIXTH GENERATION MACHINIRIES AND EQUIPMENTS

S.NO. MACHINERIES/EQUIPMENTS FEATURES

1 PRX-24Thread Rolling of 10.9/12.9

grade Bolts after Heat Treatment

2 PW-10 E Rolling of Concentric Threads

3 Omnimet Express Image AnalyserQuantitative Visual and Metallographic Analysis

4 Cryogenic TreatmentImproved Tool Life, Better

Products

5Micro In Capsulation Technology-

UKThread Locking and Sealing

Properties

6 CNC Rolling & Grinding Uniform Defects Free Products

7 Washer Assembly Bolt & Washer Combination

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LIST OF CERTIFICATES

01) A2LA

02) NABL

03) ISO 9002

04) QS 9000

05) ISO/TS 16949

06) ISO 14001

MAJOR COMPETITOR OF THE COMPANY

Sunderam Fastners of TVS Group

UN-BRAKO And Guest Keen Williams

Panda Togun Limited

Sterling Tools

Precision Fastners

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LPS MARKETING – A BRIEF OUTLINE

Introduction:

“Marketing is the human activity directed at satisfying needs and wants through the

exchange process.”

Marketing is the process through which procedure and customers of various goods are

brought together in an exchange relation and the transfer of ownership takes place. Marketing

process starts even before the goods go in production. It does not end with the sale but

continuous with satisfaction of consumer is obtained.

Sales Procedure:

To carry out selling functions, it is important to have a qualified and experienced sales

force with a leader who can plan, organize, direct and control the selling job objectively. The

salesman is an extremely important link in the chain of distribution. It is sometimes said that

the salesmanship is the other name of persuasion.

The organization sells its product to low types of target market. These are:

1- Selling to original equipment manufacturers i.e. Industrial Consumers.

2- Selling to open market or market selling.

3- The company has established its various sales representatives in various parts in India;

mainly in industrial development cities of India like Chennai, Bangalore, Coimbatore,

and Kanpur etc. Their main test is to find out new market.

The overall functions of sales representative are

To bring offers

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Making contracts

Report and figure work

Market feedback

Marketing Mix Strategy:

Marketing Mix is one of the major concepts in modern marketing. It can be defined, as

“marketing mix is the particular blend of contractible marketing variables that the firm used to

achieve its objectives in the target market.”

Now the question arises what variables make up a company marketing mix. There are actually

a great number of marketing variables. Fortunately they can be classified into a few major

groups one of the popular classifications has been proposed by Mc McCarthy and is called 4P’s

- Product

- Price

- Place

- Promotion

The marketing division has been divided into two parts:-

- Export Marketing

- Domestic Marketing

The domestic marketing then divides the customer into 2 parts:-

OEM (Original Equipment Manufacturers)

Dealers

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OEM’s are the ones who are designers of the product themselves. They are the ones who

supply the design and we have to make the fasteners according to the design given. Similarly

the OEM is divided into further 2 sub categories:

New Customer

Existing Customer

Working With New OEM:

Company gets the purchase order from the new customers through our sales personnel

and the customer provides the drawing. Then the drawing is taken to Research and

Development department, as the customer is new so we would like to have the feasibility

report about the product. Whether we can make it or not and if we can make what are the

requirements?

The R & D then prepares the feasibility report about the product. After the feasibility

report is sent to the Finance Department for costing. The finance department then prepares the

unit price of the product and then this is forwarded to the marketing department, who gives the

quotation to the customers.

If the customer approves the quotation then a sample of some pieces is made and given to the

customer for approval. If the customer approves the sample then the pilot lot is prepared and

given to the customer. The size of pilot lot depends upon the cost of the product. It can be 50,

100 or 200 also.

If the lot is again approved then we get the purchase order from the customer and a CC

is cent to the production, planning and control department. After the completion of the

manufacturing of the product, the material is given to the finished good stores who dispatch it

to the customers.

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Working With Existing OEM:

If the customer exists then purchase order is directly given to the PPC department. The

Engineering department releases the drawing and the product is made. The format of

dispatching is same in every case.

Working with Dealers

Sometimes our customer is not the manufacturer but the dealers and then instead of

quoting the price we have the price list for our products and we give them the price. After that

it is it working procedures as the rest.

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New Product Development

Introduction

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“New product Development means new profits.” New Product development is a

continuous and important function of marketing management. The life of a firm is closely

related to the development of new product through mechanical and technological innovations.

New Product development includes no. Of decisions namely:

What to manufacture or buy?

How to have its packaging?

How to fix its price?

How to sell it?

In case of a manufacturing organization, the production department will develop and

produce products on the advice of the marketing department because it is marketing

department, which knows better the requirement of the customers. The work of product

planning and development is preformed by marketing department itself. New Product

development consists of the creation of new ideas, their evaluation in terms of sales capacity

and profitability, production facility, availability of resources required for producing that

product, designing and marketing of product.

The main task of the product planners is to identify specific customer needs and

expectations and align company capabilities with the changing market demands.

New Product Development is LPS:

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Since LPS is a manufacturing concern, therefore, production department develop new

products with the help of marketing department because marketing department better knows

the requirements of customers.

The steps involved in the process of new product development in lPS can be clearly

understood with the help of following explanation:-

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NEW PRODUCT DEVELOPMENT PROCESS

ENQUIRY

FEASIBILITY REPORT REGRET

COST SHEET

QUOTATION

PURCHASE ORDER

DEV. REQ. TO R. & D. DEPT.

SAMPLE

PILOT LOT REGULARUPPLY

NO

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(1) Enquiry:-

The first step in the process of new product development is to receive enquiries from

the customers. The enquiry is, normally, in descriptive form, which contains information

regarding product design, product price, product quality and delivery time.

(2) Feasibility Report:-

The second step in the process of new product development is the preparation of

feasibility report. Under this step, enquiries received by the marketing department are

communicated to the research and development department for preparing the feasibility report

of the product. Research and Development Department analyze the feasibility of product

whether the production of the product is possible or not and if yes, then what are the

requirements?

If production of product is not possible, then a regret letter is sent to the customer.

(3) Cost Sheet:-

Under this step, the feasibility report is sent to the finance department for determining

the cost of new product. Finance department prepares the cost sheet to determine the unit

prices of the product. Cost sheet includes the raw material cost, labor cost, manufacturing

expenses and other indirect expenses. Afterwards, the finance department sends the cost sheet

and feasibility report to the marketing department for further processing.

(4) Quotations:

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After the preparation of feasibility report and cost sheet, quotations are sent to the

customer. Quotations consist of all the information about product design, product price,

delivery time and terms and conditions regarding payment. The average time between receipt

of enquiry and sending of quotation is 21 days.

(5) Purchase Order:-

If the customer is satisfied with the terms and conditions contained in the quotation,

then he gives his approval and makes the purchase order to the marketing department.

Purchase order consists of no. Of units demanded by the customer.

(6) Development request to R & D:-

Marketing department sends the purchase order to R&D. R&D reviews the tool

drawing, product design, availability of raw material and labor.

(7) Sample:-

Research and Development department manufactures the sample of the product &

sends the sample of the product to the customer. If the customer is satisfied with the sample of

the product, then he sends the sample approval letter to the research and development

department.

(8) Pilot Lot:-

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If the customer approves the sample, then pilot lot is prepared and given to the

customer. Pilot lot is the small quantity of product sent to the customer to check the accuracy

of the product.

(9) Regular Supply:

If the pilot lot is approved, then the company gives the regular supply of large quantity

of product.

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MANUFACTURING PROCESS

Wire from wire bend or Coil

Cutting of wire

Forging

Heat Treatment

Rolling

Grinding

Plating

Finishing

Oiling

Packing

Storing

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The Step involved in manufacturing process are discussed as follows:-

Wire from Bend or Coil:-

The raw material for production comes in form of coil/wire bend. These are mostly

imported from Korea.

Cutting of Wire: -

These raw materials are cut according to the size of the product.

Forging:

This is an important step in making the product. There are two types of forging

operations that are being done.

Hot Forging

Cold Forging

Our company is mainly concerned for the cold forging operation. We can manufacture

the product by machining but it is not advisable. The reason is that by machining, we have

to remove a lot of material but in forging the amount of material is significantly reduced.

Another important thing is the strength retention of the material. The material flow line are

cut in continuous. This is helpful in retaining the material strength. The cold forging

operation is used for mass production and it is uneconomical to go for small batch

production because of number of tools involved for manufacturing.

Heat Treatment:-

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After the production stage is over, the product is ready for heat treatment. The heat

treatment is done to increase the hardness of material.

Rolling:-

After the heat treatment, next step is rolling. Rolling means threading. Rolling of the

bold depends upon the requirement of the customers. It is very important step, in

manufacturing process. Rolling is the only thing, which differentiates the screw and bolt.

Grinding:

After rolling the next step is grinding. It is mainly done for the finishing and shininess

of the product. The grinding is done also with the help of automated machines.

Plating

Finishing and planting is done to remove the impurities in the product and to increase

its corrosive resistance and to give it a better look.

The operation is done after the material had been heat treated. The plating department

receives the work order from the PPC department as to what type of finishing is required

for the product. The customer, along with the design, gives the type of finishing required

for the product.

Packing:-

This is the last stage of production. This is the operation of packing. We packed the

products. Then it is ready for dispatch..

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STATEMENT OF THE OBJECTIVE

The main objective of the study is to know about new product development process in

the company and to know about different policies and strategies of LPS in context to

development of new product.

Apart from the above, the objective of this study is to know about how much is the

sales target of the company through new product development, how many product are

commercialized through new product & what are the expectations of the customer when a new

product is developed.

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RESEARCH METHODOLOGY

Research is the art of the scientific investigation. it refers to a search for knowledge. The

advance learner’s Dictionary of Current English lays down on the meaning of research as,

“A careful investigation or inquiry specially through search for new facts in any

branch of knowledge.”

Research Methodology is a way to systematically solve the research problem. The research

begin its formation when the problem or objective of the research is identified for which a

research project is conducted. the main objective for which this project research is carried out

is to understand and analysis the new product development process of company.

Research Design:

There are various methods of research design like Exploratory Research “Design,

Descriptive Research Design, Diagnostic Research Design & Hypothesis-Testing Research

Design.

In the present study, Descriptive Research Design has been used.

Source of data:

Basically two kind of data are available to the researcher namely : Primary and

Secondary data.

In the present study secondary data has been used.

Method Of Data Collection:

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There are various methods of data collection like observation method, interview

method, questionnaire method and schedule method. In the present study, observation method

has been used.

Analysis of Data:

After collecting the data, it was tabulated in a proper manner and was analyzed in order

to draw conclusions. The analysis is done by using various statistical techniques.

SUMMARY OF METHODOLOGY USED

Following is the summary of the methodology used for research:

Research Design Descriptive

Data Source Secondary

Data Collection Method Observation

Sample Size 71 enquiries

Area Covered North India

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ANALYSIS –1

What is the reason of delay in sending quotation?

Average days between enquiries to quotation is 21.

Delay Reason-

Delay in preparation of feasibility report 70%

Delay in preparation of cost sheet 20%

Delay on behalf of marketing department 10%

Interpretation:- According to given data & pie diagram we came to know that 70% delayed in sending quotation

due to delay in preparation of feasibility report, 20% delay due to delay in preparation of cost sheet & 10 % delay

due to delay on behalf of marketing department.

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ANALYSIS –3

How many new customers joined by development of New Product

Existing customers 90

New customers 10

Interpretation:- According to given data & pie diagram we came to know that 10% new

customers joined by development of New Product & 90% customer are already existing

customer.

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ANALYSIS –4

How many new customers joined by development of new Product

Target from new product development 15%

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ANALYSIS –5

What are the expectations of the customer when he gives the order?

Good Quality 40%

Reasonable Price 30%

Shortest Delivery Time 30%

Interpretation:- According to given data & pie diagram we came to know that 40%

customer expect good quality after giving the order, 30% expect reasonable price & 30%

customers have expectations of shortest delivery time.

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ANALYSIS –6

How many products are commercialized through new product development?

During January-June

Products Commercialized 70%

Products Under Approval 23%

Products Not Approved 7%

Interetation:- According to given data & pie diagram we came to know that during time period from January to june 70% products are commercialized through new product development, 23% products are under approval & 7% Products are Not Approved.

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ANALYSIS –7

What is the overall analysis between enquiries to quotation?

During January - June

Regret 70%

Pending 23%

Quotations sent within average time 7%

Quotations send beyond average time 23%

Interpretation:- According to given data & pie diagram we came to know about overall analysis between enquiries to quotation during time period from January to june that 70% quotation are regretted, 23% are pending, 7% Quotations sent within average time &

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CONCLUSION

On the basis of above explanation, I draw conclusion that new product development

process implemented in LPS trustworthy and profitable & the sale of the company has

enhanced to a great extent. The company has been able to attract new customers. In spite of

all these things, I believe that in order to make new product development process more

effective, the company should enhance the availability of raw material to fulfill the

requirements of customers in time. Beside more emphasis should be placed on Zero Defect

Concept so that more number of customers can be attracted.

FINDINGS

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The findings of this study are:

1. LPS is on 3rd position in the Fasteners market.

2. The Quality of LPS’s product is good.

3. The most competitor company of the LPS is Sundaram Fasteners Ltd.

4. Sales promotion activities of LPS like advertisement etc. Is not so good.

5. Network Distributor Channel of LPS is not good.

6. Price Range of LPS’s Product can compete competitor like Sundaram Fasteners Ltd.

7. The Company has been able to attract new customers.

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RECOMMENDATIONS & SUGGESTIONS

There are some suggestions that may be helpful in the growth of LPS. These are as follows:-

1. Company should give good response to medium and small scale firms.

2. Company should reduce the delivery time.

3. Company should increase the production capacity to fulfill the requirements of the

customers.

4. Company should reduce the time taken between receipt of enquiry and sending of

quotations.

5. Company should increase the availability of raw material.

6. Company should go for e-commerce due to globalization.

7. Company should stress on Zero Defect Concept.

8. The Company should search for new markets.

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LIMITATIONS

The limitations of this study are as follows:-

1. One drawback was time constraint, i.e. the study had to be completed within a

restricted time frame.

2. Lack of experience of researcher may cause some error.

3. Sample size was small, so it was difficult to find adequate results.

4. Sampling may not present the exact pictures of market. It is just representative of

population.

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QUESTIONNAIRE

QUES:- 1) What is the reason of delay in sending quotation?

(A) F R Delay [ ] (B) Cost Sheet Delay [ ]

(C) Delay on behalf of marketing dept. [ ]

QUES:- 2) How many orders are received out of sending quotations?

(A) Quotations sent [ ] (B) Orders received [ ]

QUES:- 3) How many new customer joined by development of new product?

(A) Exiting customer [ ] (B) New customer [ ]

QUES:-4) What are the expectation of the customer when he give the order

(A) Good Quality (B) Reasonable Price [ ]

(C) Delivery time [ ]

QUES:-5) How many products are commercialized through new product development?

(A) Products commercialized [ ]

(B) Products under development [ ]

(C) Products not required by customer [ ]

QUES:-6) Is There any Sakes target fixed by the company through new product

development?

(A) Yes [ ] (B) No [ ]

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BIBLIOGRAPHY

BOOKS

Kolter, Philip, Marketing Management, New Delhi, Prentice Hall of India Pvt. Ltd.

Kothari, C.R., Research Methodology, New Delhi, Wishwa Parkashan Pvt Ltd.

Ramaswamy, V.S. Marketing Management Planning Implementation and Control.

COMPANY MANUAL

MAGAZINE

MANUAL

Website : WWW.LPSINDIA.COM