Upload
sunitgarg
View
278
Download
5
Embed Size (px)
Citation preview
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
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)
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
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.
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,
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)
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]
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.
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.
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.
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
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
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
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
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
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
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.
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
08-09 8375 1234
Figure showing about the sale of LPS ProductsFigure showing about Sale of LPS Products
Figure showing about production of LPS Products
Figure showing about production of LPS Production
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
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.
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.
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
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.
PRODUCTION PROCESS
Chart
Wire from the bent or coils
Cutting of wire
Forging
Heat treatment
Rolling
Grinding
Plating Phosphate
Finishing
Oiling
Packing
Storing
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
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
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.
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.
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
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
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
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
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
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
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
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
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
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
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
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.
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.
New Product Development
Introduction
“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:
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:-
NEW PRODUCT DEVELOPMENT PROCESS
ENQUIRY
FEASIBILITY REPORT REGRET
COST SHEET
QUOTATION
PURCHASE ORDER
DEV. REQ. TO R. & D. DEPT.
SAMPLE
PILOT LOT REGULARUPPLY
NO
(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:
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:-
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.
MANUFACTURING PROCESS
Wire from wire bend or Coil
Cutting of wire
Forging
Heat Treatment
Rolling
Grinding
Plating
Finishing
Oiling
Packing
Storing
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:-
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..
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.
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:
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
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.
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.
ANALYSIS –4
How many new customers joined by development of new Product
Target from new product development 15%
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.
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.
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 &
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
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.
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.
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.
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 [ ]
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