ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
Research methodology:
METHODOLOGY:
?Primary Data: - Questionnaire
- E-mail and pilot survey
MARKET REASERCH:
• Secondary Data: - Data collection method
• Hypothesis analysis: - Chi-square test
LIMITATIONS OF THE STUDY: Sample sie: 44 samples
Sampli!" a#ea: lready e!isting industrial
customers"
Fi!$i!"s:
#rom the study it is clear that the p%#&'ase $epa#(me!( is the ma$or
in%luencer and also the decision ma&er o% the 'ndustrial (uying) so the
relationship *ith the mem(ers o% the management *ill yield (etter sales %or
the company" Hence this leads the (uyer to (e +rand ,oyal" -he companies
are into more o% s(#ai"'( Re)%* *hich means the 'ndustrial (uyers are
(rand loyal"
'ndustrial (uyers concentrate more on Price) Product quality and
Delivery (ut some o% the (ul& (uyers also include credit period as an
average important %actor %or (uying"
S%""es(i+!s:
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./ -he company increase its credit period the list o% the consumers *ill also
increase"
0/ Company should target the small scale auto (ody (uilding industries also)
through this they can increase their sales turnover"
1/ -here is more demand %or the company castings so that company should
increase its production rate"
'2D3S-R4 PR5#',E
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INDUSTRY PROFILE
MANUFACTURING OF CASTINGS IN INDIA:
-he %oundry sector is *ell recogni6ed as one o% the supporting industries %or the
machinery and the utomo(ile industry" 7ith the recent remar&a(le economic
development in sia) the production o% castings as part o% process materials in every
engineering industry has (een increased8 that o% the sian area is the highest in the *orld"
Ho*ever the production o% castings per capita is only 9"0 &g *hich is lo*er than *orld
average than .1"
this %act sho*s that the production o% castings *ill surely to increase
along *ith an economic gro*th not only in the sian area) (ut also in developing
countries"
PRODUCTION OF CAST IRON AND ENERGY CONSUMPTION:
-he term Cast 'ron is a general term %or ;<rey cast iron; and ;Spheroid graphite
cast iron castings;" Since cast iron is easy to manu%acture and its manu%acturing cost is
lo* and (esides it has various physical and chemical properties) it is used in large amount
in metal products in almost all areas o% industries" -he annual production o% cast iron
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castings in the *orld is over => million tons" <rey iron castings are di%%erentiated %rom
good cast a(ility a(rasion resistance) damping capacity) corrosion resistance) machining
a(ility etc") they have (een produced the largest among all sorts o% castings" 't %orms
a(out ?=@ o% the total production o% cast iron" Spheroidal graphite cast iron is superior to
<rey cast iron) statistically it is usually e!cluded %rom cast iron" Since mallea(le iron
castings has to (e treated in the process o% its manu%acturing %or long hours at high
temperature in order to improve the mechanical parts) a large amount is to (e consumed8
the rate o% energy consumed per tone o% mallea(le cast iron is %our or more times o% cast
iron" -here%ore mallea(le cast iron is replaced *ith spheroidal graphite cast iron and its
production has remar&a(ly decreased"
COMPANY PROFILE
A,OUT US
sho& 'ron 7or&s Pvt" ,td *as esta(lished during the year .A?4 *ith a
commitment to o%%er *orld-class quality castings" 5ver the years) the company has
emerged as a industrial conglomerate" -oday it is (eing ran&ed as one o% the top =
%oundries in 'ndia" -he company has t*o large %oundries and si! machining division to
support the activities" 3nder the e!pansion program) one o% the (iggest %oundries is under
commissioning stage" -he steady and phenomenal gro*th o% sho& 'ron <roup over a
period o% 0= years is not merely an incident) (ut it is a result o% the determination and
%oresight o% %ounders
? Shri sho&" S" Hum(ar*adi
? Shri Basudev" P" Han$i
Since its inception the vision o% sho& 'ron <roup is to ensure dominant presence
in the core sector industries *hich are critical %or a gro*ing economy in 'ndia and is
enhancing and maintaining its strength that it is one o% the (est glo(al scenario o% %oundry
(usiness" -his requires (uilding an organi6ation" Committed to the pursuit o% e!cellence
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and committed to &no*ledge integration and continuous learning Cup gradation
Cimprovement" -he activities o% the company are oriented around the a!is o% innovation
*orld class technology and continuous improvement in capacity and quality"
'7) has al*ays %irm (eliever in the philosophy to achieve e!cellence in the %ield
o% %oundry) -oday) '7 is one o% the largest $o((ing %oundries grey cast iron required %or
automo(ile industry) %arm equipment industry and diesel engines industry" 5ver the last 1
decade since .A?4 the <roup has esta(lished the record o% success%ul evolution" s a
Pioneering vision and Po*er%ul drive to change ahead o% 'ndia %inest and most integrated
$o((ing %oundries" ,ocated at +elgaum =>> Dm South o% Eum(ai) and .=> Dm %rom
<oa) -he '7 <roup Has #oundries and Eachine Shop that add value) (y machining
over :>@ o% the casting manu%actured to %ully %inished condition"
s *e enter the ne* millennium) the *orld has *o&en to the reality o% immuta(le
change) *here *orld class per%ormance) driven (y a po*er%ul vision) truly spea&s the
language o% quality) technology) and service everyday) *ere adding value (y anticipating
change mar&s the *inners and leaves those *ho %ear change in the pages o% a %ast
%orgotten history"
7e) at '7) have al*ays %irmly (elieved in this philosophy to achieve e!cellence in the
%ield o% %oundry industry" -oday) '7 is one o% the largest $o((ing %oundries producing
<rey 'ron Castings required %or utomo(ile" #arm Equipment Sector F Diesel Engines
'ndustry"
5ver the last three decades since .A?4) *hen the <roup *as esta(lished) the saga
o% the '7 <roup is a record o% success%ul evolution" s pioneering vision and po*er%ul
drive to change ahead o% the times) has pushed the <roup to (ecome one o% 'ndiaGs %inest
and most integrated $o((ing %oundries" ,ocated at +elgaum) =>> Dilometers south o%
Eum(ai) and .=> Dilometers %rom <oa) the '7 <roup has %oundries and machine
shops that add value) (y machining over :>@ o% the castings manu%actured to %ully
%inished condition"
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'n %act) '7 is one o% the very %e* %oundries) *hich is QS-A>>> certi%ied" Driven
(y a team) %ully committed to technological and service e!cellence) the '7 <roup is all
set to continue its ongoing quest %or e!cellence"
-he <roupGs Bision) Eission and Quality Policy truly re%lect <roupGs commitment
to (ecome one o% the (est %oundries <roup in the glo(al arena"
2ISION:
7e are committed to serve the interests o% all our sta&eholders (y (eing and
maintaining our position at the top in 'ndia and (e one o% the (est in the glo(al scenario
o% %oundry (usiness *ith an e!ceptional moral and (usiness ethics"
MISSION:
-o develop e!pertise in technology o% machining o% various components to
support the #oundry (usiness and (e a(le to (e a glo(al supplier o% %inished components"
3UALITY POLICY:
-o aim at our customerGs delight (y e!ceeding his e!pectations through an
e!ceptional (lend o% quality-cost-delivery o% our products and service that *e provide"
THE COMPANY
sho& 'ron 7or&s Pvt" ,td is esta(lished during the year .A?4 *ith a
commitment to o%%er *orld class Quality castings" 5ver years) the company has increased
its production *ith a modest capacity o% => E- per month to .=>> E- per months and
emerged as a leading 'ndustrial conglomerate" -oday it is ran&ed as one o% the top =
$o((ing #oundries in 'ndia" -he company is having t*o large %oundries and si!
Eachinery divisions to support the activities"
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MAIN MANUFACTURING ACTI2ITIES
? Producing o% castings *eighing %rom 0> Dgs to 1>>> Dgs"
? Eachining o% castings) components C cran& ha%ts) selected ,C Engine components
and su( assem(lies) %or diesel engines) -ractors and utomo(ile 'ndustries in
'ndia and around the *orld"
STRENGTHS OF THE COMPANY
? Supply o% components in %ully machined condition) there (y saving su(stantial
total cost o% o*nership)
? 'n-house capa(ility o% (uilding) machines) $igs and %itness required %or machining
o% components"
? Highly quali%ied trained *or&%orce"
PLANT PROFILE
S
,"
2
o"
DE-',S P,2- ' P,2- ''
. ,ocation o% the plant
:9AC.) 3dyam(ag
+elgaum
Eachhe 'ndustrial Estate)
+elgaum
0 4ear o% Esta(lishment .A?4 .AA.
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1 Regd" 5%%ice
:9AC.) 3dyam(ag
+elgaum
:9AC.) udyam(ag +elgaum
4
Eanpo*er capacity as per the #actories
=>> 0=> ct"
=>> 0=>
= +uilt-up area H Sq"Etr / ::11 .9:>>
: '2#RS-R3C-3RE 5# -HE P,2-
Sand ma&ing <reen sand Resin (onded sand
+ Core ma&ing
5il cores) shell cores F
cold (o! cores) no +a&e
cores etc
5il cores) shell cores F
cold (o! core) no (a&e
cores etc"
C Eould ma&ing
Iolts F squee6ing
machines
Compaction ta(le) no (a&e
sand
D Eelting
'nduction %urnaces
Hmedium #requency/
channel type-= nos cupola
%urnaces- 1 nos
Eedium %requency
'nduction %urnace -
0 2os
E #ettling
+ED shot (lasting
machines
+ED shot (lasting
machines
# #acilities
,a( *ith all testing
%acilities
,a(s *ith all %acilities
including hilger ma&e
spectrometer"
< Eelting capacity 9=-.>> tons per day 4> tons per day
H Casting range :4-0>> &gs per piece 1>-1>>> &gs per piece
' Eoulding +o! si6e H Ea!imum/ .0.AJ9.0J1>4 mm 0??=J.4>>J:9>mm
PRODUCT PROFILE CUSTOMER WISE 6FOUNDRIES7
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Sl" 2o Customer Plant -. Plant K''
. Cummins 'ndia
7ath pump costing %ly
*heels %ly *heel housings)
hotel e!changers" <ears)
case cover etc
Cylinder heads F cylinder
(loc&s
0 sho& ,eyland
utomo(ile drums"
Housing) %ly *heels etc
-
1 -a%e
-ran case) center housing
hu(s) li%t cover +ra&e
Drums etc"
-
4 ,F- Suction pumps castings -
= EFE -ransmission case -
: Simpson +loc&s F +earing caps Cylinder heads
? Escorts
Di%%erential housings)
hydrantic li%t cover) gear
(o! etc"
Cylinder heads"
9 D","7 - Cylinder heads
PRODUCTS:
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C+mp+!e!(s :+# Diesel E!"i!e I!$%s(#*:
Cylinder +loc&s) Cylinder Heads) #ly*heels) #ly*heel Housings %rom 0> &gs" -o 1>>>
Dgs C per Piece") Cran&sha%t Eachining) 1 cylinder to .: Cylinder %rom ?> to .>>>
&gsCpc 7ater Pumps) 5il Pump ssem(lies"
Components for Farm Equipment Industry:
-ransmission Cases) Clutch Housings) +ra&e Drums) Cylinder +loc&s) Cylinder Heads)
Hydraulic ,i%t +ody) Hu( #ront 7heel %rom .> &gs to 0>> &gs C pc"
Cran&sha%t machining) 1 cylinders and 4 cylinders"
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MAIN FEATURES OF THE COMPANY
5ne o% the top = %oundries in gro*ing at a %aster rate and 'ndiaGs (est-managed %oundry
." Practices team *or& in (usiness
0" Every one has a opportunity to gro*
1" Proactive in house training and education
4" 'S5 A>>> Company"
=" ="-a&es into consideration *or&ers suggestion
:" 'mplementation o% &ai6en principles
?" 'mplementation o% =s tools
AWARDS AND ACHI2EMENTS
? 5ne o% the %e* Qs-A>>> certi%ied %oundries (y -3B"
? Certi%ied (y Cummins) 3"S" in .AA= %or supply in ;Ship to use conditionG;"
? Certi%ied (y ,loyds Register o% Shipping) ,ondon in .AA="
? Regd" as 7orld Source %or Cummins Engine Company" 3"S""
3UALITY O,<ECTI2ES
? -o remain customer %ocused (y providing the designed Quality" Cost and Delivery
through manu%acturing e!cellence"
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? -o adopt continuous improvement in all organi6ational activities to meet dynamic
Requirements o% customers"
? -o involve and empo*er all employees across the organi6ation"
MANUFACTURING
? Computer numerical machines (eing used %or accuracy
? Rotation o% $o(s %or multi s&illed
? Pre planned activities are (eing scheduled
? Supervisor %or quality chec& and inspection
? Einimum re$ection
? E!pert technical sta%%
TECHNICAL
? 7ell equipped research and development center
? Sophisticated and necessary testing rigs
? Quali%ied sta%% DE'2'S-R-'52
? #ully computeri6ed in%ormation and administrative system
? E%%ective) smooth) and minimum paper*or& ERDE-'2< E!port oriented
Competitive priced Delivered at the right lime
? #ast response to customer queries
? Eore value added at the same price E!perienced mar&eting e!ecutives"
2ARIOUS DEPARTMENTS
? dministrative department
? Production department
? Purchase department
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SEC3R'-4
5##'CER
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? Stores department
? #inance department
? Ear&eting department and
? Personnel F HRD department
HUMAN RESOURCE MANAGEMENT
HRD in an organi6ation %unctions to improve the attitude o% employees to achieve
the customer satis%action al*ays"
5ver the past decade the (usiness scenario has totally changed (ecause o%
customer requirements are changing rapidly" -he quality) cost and delivery requirements
are very stringent %rom the customer point o% vie*" Customer *ants changes and
improvements very %ast %or *hich any organi6ation should (e *ell equipped in todayGs
tough competitive *orld to *or& to*ards customerGs changing needs %rom time to time"
-he process o% development o% employees in sho& 'ron <roup considered as one
&ey activity %or improving the s&ills) &no*ledge" ttitude and per%ormance on continuous
(asis" 'n line *ith the organi6ational o($ectives" -raining Eanual is (eing %ramed on
incorporated in the manual %rom time to time in addition to annual training plan"
Employees su($ected to counseling process %or improving morale) discipline and
Employees per%ormance is assessed annually through ppraisal system %or re*arding
increments"
ORGANIZATION CHART
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P,2--'
3nit HRD
sst" HRD
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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MAN POWER PLANNING
l" 't is the policy o% the company to ma&e all manpo*er allocation on the (asis o%
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CH'RE2
ELEC3-'BE
D'REC-5R
HED <R53P HRD
E2<ER
S#E-4
E2<ER
-R'2'2<
P,2--''
3nit HRD
JE, SE & PE
Unit HRD in
Charge
E F
Divn" CH
F + ECC"
Divn" 3nit
HRD 'n
charge
sst" HRD sst" HRD
Casting
ECC Divn"
3nit HRD
'n charge
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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pro$ections made through the pproved nnual Eanpo*er Plan HEP/" -he company
(elieves that only planning and development activities can achieve ensuring optimum
utili6ation o% HRs" 't is there%ore) essential that all the personal activities such as
Recruitment) -rans%ers) Career and Succession planning should (e con%irmed to the
pproved nnual Eanpo*er Plan HEP/" -he company e!cepts all departments to
con%irm strictly to the norms and procedures o% the manpo*er laid do*n (y the
management
0" 't shall (e the $oint responsi(ility o% the H5DGS and 3nit HRD 'n-charges to prepare
the manpo*er plan in con%ormity *ith production norms" #urther) approval shall (e
o(tained %rom e!ecutive Director head group HRD"
1" P#+&e$%#e:
? ll recruitments must (e in line *ith the approved organi6ation chart and
sanctioned strength"
? 7henever vacancy arises due to Resignation) Superannuation) Promotion etc or
%or %e* positions) HRD dept) *ill initiate the selection procedure in consultation
*ith concerned %unctional head"
4" S+%#&es +: Re&#%i(me!
? E!isting HRD data (an&"
? 7ithin the group companies"
? Consultants or placement agencies)
? -hrough personal contacts"
'% suita(le candidates are not availa(le through a(ove sources) then through
advertisements in suita(le ne*s papers"
ccording to the Provisions o% Employment E!change ct) the HRD Dept" *ill noti%y the
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same to the concerned employment E!change"
=" Re&#%i(me!( P#+&e$%#e:
a" E!perienced candidates: #or e!perienced candidates) the salary %i!ation and other
per&s %or each position shall (e as per their pay scale "Ho*ever) individual %i!ation shall
(e made depending upon his quali%ication) e!perience) $o( requirements etc"
(" #resh candidates - +"EC DiplomaC <raduatesC P<s:
? -he period o% training %or %resh candidates shall (e one year
? Stipend during the training period is as per company policy"
? -he success%ul candidates as per Regulari6ation Criteria *ill (e a(sor(ed in
regular scale"
C" #or 7or&men:
? #or %resh candidates) the duration o% training shall (e .9 months" :
Stipend during the training period is as per the company policy"
Su(sequently) additional (ene%its as decided (y the Eanagement *ill (e
e!tended during the course o% training period"
? 5nce the training period is completed success%ully) the trainees shall (e a(sor(ed
in the *or&men category as per T'e Mi!im%m Wa"es A&(" -he Regulari6ation
criteria shall (e (ased upon per%ormance) attendance etc"
:" Pa* a!$ All+=a!&es:
? Classi%ication o% the employees is as per the anne!ure ' F: '' enclosed here*ith"
? -he employees placed in the scale (ased on e!perience) quali%ication) nature" o%
*or& etc" depending upon this) (asic is %i!ed in the respective scales
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5.T#a>el Reim)%#seme!( :+# A((e!$i!" I!(e#>ie=:
? ,ocal candidates shall not (e entitled %or reim(ursement o% conveyance e!penses"
? 5utstation candidates *ill (e reim(ursed -o F #ro %are (y the shortest route on
production o% proo% %or attending the intervie* as per eligi(ility"
? -he candidates called %or intervie* %or senior positions i"e" %or Eanagers and
a(ove shall (e paid %irst C second class train C (us %are"
? #or all other positions second class train C (us %are shall (e applica(le"
8. I!(e#>ie= A##a!"eme!(s:
? -he HRD-Dept" has to ensure the de%inite Benue) Date) and -ime o% the intervie*
adolescent in%orm the same to the candidates and intervie*ing committee"
? 'ntervie* call letters to (e dispatched *ell in advance) at least .> days clear
notice" 'n case o% emergency requirement" HRD-dept) may call the candidates
*ith shortest notice either (y phone message or telegram"
? 't shall (e the responsi(ility o% HRD- Dept" to arrange to receive the candidates on
arrival at the location" HRD-Dept" is ma&ing quic& and e%%icient settlement o%
travel claims a%ter veri%ication once the intervie* completed"
? -he HRD-Dept" shall ta&e care o% the hospitality o% the candidates during the
course o% intervie*s"
9. REFERENCE CHECKS:
-he %ollo*ing procedure *ill (e adopted %or o(taining re%erence chec&
? -*o re%erence chec& (y the HRD-Dept)
? ll the in%ormation is trade and commerce (e maintained under strict
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Con%idence"
-;.APPOINTMENT AUTHORITY:
? -he E!ecutive Director is the pproving authority %or all the appointments"
? -he appointment orders up to the level o% Sr"Eanager shall (e issued (y
Dy"<eneral Eanager- HRD"
? ll other orders %or sst"<E and a(ove positions shall (e (y E!ecutive Director)
ho*ever all the papers relating to the issue o% orders shall (e prepared and
monitored (y D<E- HRD"
--. <OINING FORMALITIES:
? Ioining report to (e o(tained %rom the candidate (y the HRD-Dept"
? Copies o% the certi%icates) testimonials) latest passport si6e photograph) leaving
certi%icate %rom the previous employer) to (e o(tained (y the HRD- Dept"
? 2omination under P# and <ratuity) ES' *herever applica(le is to (e o(tained"
? Eedical chec&-up (y the medical o%%icer (y the company is to (e arranged)
? HRD- Dept" shall issue 'dentity card to the ne* employees *ithin ? days %rom the
date o% hisCher $oining"
-..INDUCTION:
? 7henever employee $oins organi6ation) it is the responsi(ility o% the HRD- Dept"
to ta&e appropriate means %or arranging 'nduction Program"
? -his 'nduction program is to help the ne* employee to (ecome a*are and
understand the company) its structure) products) general conditions o% company
policies) discipline) practices) rules and regulations and other %acilities"
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? -he HRD- Dept" *ill prepare a circular %or the 'nductions o% the ne* entrants and
circulate it to all the concerned depts" -he %ollo*ing arrangernents to (e made (y
the HRD-dept"
? Seating rrangement: '% eligi(le) arrangement %or o%%iceCresidence) internal C
e!ternal phone connections along *ith telephone directory"
? Stationery i% required"
? HRD-dept" has to in%orm the security dept" a(out the employees $oining and
provide the documents such as service) rules etc to the employee"
-/.TRAINING AND DE2ELOPMENT:
-he company has given greatest signi%icance to training) and recogni6ed its
importance (oth to the employees and the organi6ation" -he company (elieves in
training) %orming integral process in integrating the organi6ational needs) i% the needs o%
the individual employees" -he company (elieves the training essentiality %rom the point
o% vie* o% %acilitating continuous update s&ills and &no*ledge and also directed to*ards
employee development and his career progression" s a matter o% policy the company
considers that all employees should (e covered in the training programs) (ased on the
identi%ication o% training needs (y the respective H5DGS and requirement o% the company"
." O)?e&(i>es
? -raining is to (e given *ith a vie* to enhance the $o( &no*ledge) %acilitating
constant updating o% technology or ne* concepts"
? -he programmes ta&e into account the training needs o% the individual and his
responsi(ility in the organi6ation"
? -he H5DGS shall primarily (e responsi(le %or the identi%ication o% training needs"
? -he designing o% suita(le programs and its implementation is (eing done (y 3nit
HRD 'n charge under the guidance o% head group HRD"
.. P#+&e$%#es
? ll 3nit HRD in charges shall coordinate *ith respective H5DGs to identi%yG
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training needs at their respective DeptGs during survey" -he HRD department *ill
arrange all such activities as per corporate plan on training and development"
/" I!@'+%seA+%(s(a(i+! (#ai!i!" p#+"#ams"
Depending upon the num(er o% employees) the HRD Dept *ill arrange the training
courses either at in-house or outside" 7hile deputing %or outstation courses) speci%ic
approval %rom the e!ecutive director through Head group HRD is to (e o(tained"
? -he employees underta&ing training must su(mit report *ithin a *ee& o%
completion o% training program"
? 7henever employee attends the training programs on speciali6ation topics) he
should give presentation to the concerned employees in the organi6ation) so that
more employees can (e (ene%ited (y the same presentation"
-0.PERFORMANCE APPRAISAL.
Per%ormance appraisal: -he Company recogni6es and %osters the concept o% regular
employee assessment as a sole means o% determining employeeGs per%ormance)
e%%ectiveness) and potentiality at all levels o% the organi6ation" 't %irmly (elieves that the
assessment and correct evaluation is not only %acilities the determination o% the
employeeGs level o% per%ormance and achievement) (ut also gives an opportunity to the
employee to (ring in (rilliant ideas and innovation" -he company regards per%ormance)
assessment essentially %rom the point o% vie* o% employee development and career
progression"
'" O)?e&(i>es:
? ppraiserMs role) e%%ectiveness on the $o() a*areness to*ards strengths and
*ea&nesses is to (e identi%ied"
? Developing valid data %or individual %or ma&ing decision in relation to placement)
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increment) promotion) punishment etc"
? 'mprove the relationship (et*een appraiser and the appraise through per%ormance
appraising dialogue" -his ena(les open communication among appraiser and
appraises to &no* the e!pectation o% each other"
? Provide an opportunity to the appraise %or introspection) sel% evaluation) and goal
setting so that he remains to the path o% development"
? Conducting development programs to enhance per%ormance in the current $o( and
reali6e the potentiality %or %uture responsi(ilities"
." S&+pe:
? Cover all the permanent employees o% the company including managerial cadres"
(" ppraisal calendar: -he %ield o% appraisal is .
st
o% pril to 1.
st
o% Earch"
? -he calendar %or process is as under:
? .
st
Earch: Distri(ution o% appraisal %orm to the H5DGs (y the HRD
department"
? .>
th
Earch: ppraiser to organi6e and arrange to %ill up the %orms"
? .
st
pril: ppraiser to handover the %orms) duly %illed into HRD Dept"
? .>
th
pril: HRD Dept to compile all the ratings and put-up to the
management %or revie* and approval"
? 0>
th
pril: #inali6ation o% %inal increments (y the management"
? 0= pril: 'mplementation o% the annual increments promotions etc (y the
head group HRD"
/ P#+&e$%#es:
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a" -he HRD Dept shall send the (lan& per%ormance appraisal %orms a%ter %illing relevant
personal details o% the employees to the H5DGS as per calendar"
(" -he appraiser should %ill in as per the ratings mentioned in the %orm (y e!amining all
the points"
c" -he appraiser shall %ill up in last page regarding main points to (e conveyed regarding
appraise" -he appraiser shall %ill up and in%orm the appraise a(out his strengths and
*ea&nesses (e%ore handing over the %orms to the unit HRD 'n charge"
d" -he appraiser to carry out the per%ormance appraisal shall consider the %ollo*ing
points:
? llo* sel%-appraisal (y the appraise"
? 5rgani6e per%ormance revie* discussions"
? Should in%orm to the appraise and ta&e impartial vie*s" Sum up the discussions
*ith appraise and chal& out action plan %or development" #inally the %orm should
(e sent to HRD Dept as per calendar duly signed (y appraiser and unit in charge
*herever applica(le"
e" Eerit rating: -he employees are classi%ied (ased on the merits as %ollo*s:
T+(al ma#Bs Ra(i!"
? =? and a(ove Bery good
? 4.-=: <ood
? 0=-4> Satis%actory
? >A-04 verage
? >>->9 Poor
WELFARE MEASURES
." 5($ectives: -o lay do*n and practice several *el%are schemes as *ould contri(ute to
,A,ASA, PATIL Pa"e ..
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healthy participation o% the employees in the interest o% the company and do all *ithin the
means to satis%y needs o% employees in their physical) Cultural) psychological and
economical *ell (eings"
0" -he company has a commitment to promote the *el%are o% the employees and to &eep
the employees and their %amilies happy and contemplated8 these are (oth statutory and
non-statutory"
a/ Ca!(ee! Se#>i&es:
-he company maintains a %ull %ledged canteen to provide its employees *ith
healthy %ood) snac&s *hile on duty on su(sidi6ed rates" -he %acility is opened
on %i!ed timing on all *or&ing days"
(/ U!i:+#ms:
ll the permanent employees o% the group are provided *ith 0-pairs o%
uni%orms and one pair o% shoes per year" -he company is (earing stitching
charges"
c/ Ma##ia"e "i
: '% an employee gets married *hile in service) he *ill (e given cash gi%t
*hich is %or 7or&men Rs"0=.C- and %or Sta%% is Rs"=>.C-
d/ Me$i&al (#ea(me!( A Empl+*eeCs i!?%#* +! $%(*: -he ES' scheme is applica(le to
those covered under ES' act" Such o% those employees *ho are not covered under ES'
scheme are eligi(le %or the %acility as laid do*n in medical Reim(ursement scheme"
e/ '% the employee meets *ith any accident during *or&ing hours) is provided %irst aid
treatment immediately and initial e!penditure is (orne (y the company till he is
shi%ted to the ES' hospital"
%/ -he employees *ho are not covered under ES' scheme are given medical treatment
incase o% accident at the companyGs premises at the e!penses o% company"
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g/ Empl+*eeCs P#+>i$e!( F%!$:
Every permanent employee shall (e entitled and required to (ecome mem(ers o% the
%und" -he contri(ution paya(le (y the employee shall (e at the rate as applica(le
under P# act and matching contri(ution (y the management"
h/ G#+%p I!s%#a!&e:
<roup 'nsurance scheme %or the employees *ho are not covered under ES' are covered
(y <roup 'nsurance Scheme to protect against in any eventually accidents"
i/ G#a(%i(* S&'eme:
? ll the permanent employees are covered under the <ratuity scheme"
? <ratuity *ill (e admissi(le only a%ter completion o% quali%ying service %or =
years"
? -he (ene%its applica(le are as per the Payment o% <ratuity ct and <roup
gratuity scheme adopted (y the management"
$/ P#+>i$i!" Telep'+!e Calls:
? -he telephone calls %rom employeesG relatives shall not (e entertained unless and
until it is urgent call"
? -he security department at main gate shall receive the call and note the name o%
the person calling and the message *ill (e communicated to the employee"
? 'n case o% urgent messages) i"e" accident) death etc" -elephone operatorCsecurity at
the main gate shall note the details) name o% the caller) name o% the recipient o%
call etc and in%orm the employee concerned over phone immediately"
? 2o ordinary calls shall (e entertained"
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SAFETYD HEALTH AND EN2IRONMENT:
-. SAFETY:
? 'denti%ying the unsa%e conditions
? Eonthly sa%ety audit report"
? Eonthly sa%ety committee meeting discussions"
? Report (y employees"
? 3nsa%e acts are corrected (y conducting training programmes on sa%ety) health
and environment to all the employees" -he unit HRD in charges are responsi(le
%or arranging training programmes on consultation *ith E!ecutive H-raining nd
Sa%ety/"
? ll unsa%e conditions are recti%ied (y the maintenance department on top priority
under the guidance o% E!ecutive H-raining F Sa%ety/"
? -he respective 3nit HRD 'n charge procures necessary and appropriate Personal
Protective Equipments in consultation *ith E!ecutive-H-raining F Sa%ety/ and
issue the same to the all employees"
? -he Sa%ety and Health policy is introduced %or providing good and sa%e
environment at Plant ' F Plant ''"
? Sa%ety committees are %ormed at plant ' and '' and meetings are held once in a
month" -he minutes o% the meeting is sent to HED - group HRD"
? Recogni6ed a competent person %or e!amining the li%ting machine and li%ting
tac&les and pressure vessels once in a year %rom sa%ety point o% vie* and
o(taining certi%ication"
? 5(tained approved ;52 S'-E F 5## S'-E P,2; %rom Chie% 'nspector o%
%actories %or e!ecuting in emergency condition %or Plant -lFG .."
? 7or& permit system has (een implemented *hile carrying the *or& at height at
%ragile roo%s"
? #ire E!tinguishers are installed and maintained at prominent places"
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? ll machines are provided *ith sa%ety guards"
? #irst id +o!es are provided at each unit"
? m(ulance van is readily availa(le %or ta&ing in$ured to hospital"
.. HEALTH:
? Provided *ith the %acilities li&e Drin&ing *ater) urinals and toilets and maintained
them properly"
? Proper ventilation F illumination are provided at shop %loor and o%%ices"
/. EN2IRONMENT:
? #ul%illing the requirements o% the Darnata&a State Pollution Control +oard
HDSPC+/" 7e are o(taining the *ater and ir consents periodically as prescri(ed"
? pproval has (een ta&en %rom DSPC+ %or disposing the Ha6ardous *astes"
? Stoc& monitoring is (eing carried out regularly"
? Systematic and sa%e arrangement is provided %or storing and handling o%
chemicals"
? Eaintaining Diesel tan&s as per e!plosive acts"
? Providing can plugs and ear mu%%s *herever noise pollution e!ists and *ho are
*or&ing in noise areas"
? Painting (ooths are provided *herever required"
0. SAFETY POLICY:
7e (elieve -
? Health and Sa%ety o% the employees *hether at *or&shop) o%%ice or site are
matters o% utmost concern to the management"
? Eanagement (elieves that human value involved is o% great importance)
*hatever else may (e the compulsion o% (usiness and manu%acturing"
? Sa%ety ran&s top on the priority list along *ith production and quality"
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? Sa%ety and healthy operating procedures also have *ay %or reduced cost and
higher productivity"
? Healthy employee is an asset to the organi6ation"
? ll accidents and damages shall (e prevented"
WE ARE COMMITTED TO:
? Ensure that plant) equipment) machinery) process and systems o% *or& are sa%e"
ha6ard %ree and *ithout ris& to the health)
? Ensure availa(ility o% in%ormation) instructions) training and supervision"
? +elieve that) no Io( is so important as to overloo& health and sa%ety"
? +elieve that the cooperation o% employees in o(servance o% sa%ety policy *ill
provide sa%e *or&ing condition and ensure accident %ree and quality per%ormance"
? Provide regular health chec&up to monitor the health status o% the employees"
? Head accounta(le all our sta%% %or the sa%ety o% their employees"
? -o conduct sa%ety inspection and sa%ety audit periodically"
WE EEPECT FROM OUR EMPLOYEES:
? -o o(serve all sa%ety and adopt the sa%ety rules"
? -o use all sa%ety appliances) equipments and devices properly"
? -o %ollo* sa%e operating procedure"
? -o &eep the *or&place clean and tidy"
? -o integrate sa%ety into the $o("
? -o care %or personal hygiene"
? Disseminate sa%ety-Dno*ledge among colleagues"
? Dra* the attention o% right o%%icer on any unsa%e activity) practices and conditions"
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Sl"2o"
C-E<5R4 5#
EEP,54EES
'-EES HPPE/ Q32-'-4 'SS3'2< PER'5D
>.
Permanent *or&men
H7E/
3ni%orms 0 pairs p"a" During Earch every year
>0
Permanent *or&men
H7E/
Sa%ety shoes . pair p"a" - D5 -
>1
Permanent *or&men
H7E/
Special shoes
HEelting/
0 pairs p"a"
5nly to *or&man *or&ing in
Eelting section o% %oundry" 5ne
pair each during Earch F
Septem(er respectively every
year"
>4
-rainees *ho *or&ed
more than one year
Sa%ety shoes . pair p"a" During Earch every year
>= Casual *or&men Sa%ety shoes
5ne pair p"a"
N =>@ o%
cost
5nly to the *or&men *or&ing in
production) such as shell
moulding) melting decoring and
%ettling sections during Earch o%
every year" =>@ cost should (e
recovered %rom their *ages in 0
installments"
>: #or all employees Sa%ety shoes
'n case
damaged
*hile
*or&ing
Shall (e issued . ne* pair o%
shoes at %ree o% cost a%ter ensuring
the same"
>? Contract la(our Sa%ety shoes)
Sa%ety Helmets
and Sa%ety
-he respective contractor shall
arrange to issue the same) *ithout
%ail"
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<oggles and
other sa%ety
equipments
>9
#or all category o%
employees H 7E/ '-'Gs)
-rainees and Sta%%
Sa%ety Helmet
5nce in a
%our years --
. 2o"
During the month o% Earch o%
every %our years once
>A -D5- -D5- -D5-
2e* helmets can (e issued at %ree
o% cost" 'n case Helmet is
damaged during the *or& *ithout
involving the employee
negligence"
.>
Employees *ho are
*or&ing in ha6ardous
area irrespective o%
category"
Sa%ety Helmet
5nce in %our
years - . 2o)
7ill (e issued along *ith
others"
'i
#or all category o%
employees HE!cept
contract la(orers/
Sa%ety
Equipments
H<oggles) Eouth-
Eas&) respirators)
hand gloves etc")
s per
requirement
Shall (e provided as decided
(y sa%ety department" 't can (e
replaced as and *hen required"
.0 #or all sta%% Sa%ety shoes . pair p"a"
#or administrative sta%% and
H5DGS amount *ill (e decided
(y the management %rom time
to time) i% shoes not issued"
.1
#or all sta%% mem(ers
including trainees
Sa%ety shoes)
Helmets
5nce in 4
years - . 2o"
During Earch month once in a
4 years
.4
#or all production sta%%
and sta%% supporting
production activity"
Hal%-Sleeve
sa%ety apron
. pair p"a"
During Earch month o% every
year"
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.=
#or all employees *ho
are *or&ing in cold (o!
section
Eechanical
Respirators and
sa%ety goggles
. 2o" p"a"
Can (e replaced as and *hen
required
.:
#or all *or&ing #ettling
F D"<" Room
Ear plugs . pair p"a" - D5 -
.? #or all electricians
Electrical shoes
H2ail less F
electrical shoc&
proo%/
. pair p"a" Earch month o% every year"
.9
Shell Eoulding
*or&men H7E/
s sector hand
gloves H.4; si6es/
. pair p"a"
Can (e replaced as and *hen
required"
.A #or all electricians
Electrical hand
gloves
=-9 pair per
department
#or replacing me hand gloves
0>
#or all category o%
employees
,eather hand
gloves
. pair p"a"
s decided (y H"5"DGs) F
H"R"D" Dept"
0.
#or the employees *ho
are *or&ing at height
Sa%ety (elts shall
(e provided
Einimum =
sets o%
sa%ety (elts
Replacement can (e decided
(y the H"5"D"Gs F H"R"D"
Dept"
-ypes o% +0+ (uying (ehavior:
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?R+%(i!e #e@)%*: -he organi6ation has (ought this product (e%ore and
has already esta(lished suppliers" -hese products may (e relatively
lo*-ris&) %requently supplies such as o%%ice stationer"
?M+$i:ie$ #e@)%*: 'mplies that there is some e!perience o% (uying this
product) (ut there is also a need to revie* current practice" Perhaps
there have (een signi%icant technological developments since the
organi6ation last purchased this item) or a %eeling that the current
supplier is not the (est) or a desire to renegotiate the parameters o% the
purchase"
?Ne= (asB )%*: 's the most comple! category" -he organi6ation has no
previous e!perience o% and *ide participation in the process)
especially *here it involves a high-ris& C high-cost product this &ind
o% purchase) and there%ore needs a great deal o% in%ormation"
Characteristics o% +0+ mar&ets:
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?Na(%#e +: $ema!$
? Derived demand
? Ioint demand
? 'nelastic demand
? S(#%&(%#e +: $ema!$
? 'ndustrial concentration
? <eographic concentration
?,%*i!" p#+&ess &+mpleFi(*
? +0+ purchasing policy
? Pro%essional purchasing
? <roup decision-ma&ing
? Purchase signi%icance
?,%*e#Gselle# #ela(i+!s'ips
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P'ases i! ('e )%*i!" p#+&ess:
PHSE -.: nticipation or Recognition o% a pro(lem
PHSE -0: Determination o% the characteristics and quantity o% the
needed item
PHSE -1: Description o% the characteristics and quantity o% the needed
item
PHSE -4: search %or the quali%ication o% potential sources
PHSE -=: cquisition and nalysis o% Proposals
PHSE -:: Evaluation o% proposals and selection o% suppliers
PHSE- ?: Selection o% order routine
PHSE -9: Per%ormance %eed(ac& and evaluation
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Di::e#e!&es )e(=ee! ,., ma#Be( a!$ &+!s%me# ma#Be(s:
,., &%s(+me#s +e!A%s%all* . . . C+!s%me# &%s(+me#s +e!A%s%all*
? Purchase goods and services that meet
speci%ic (usiness needs
? Purchase goods and services to meet
individual or %amily needs
? 2eed emphasis on economic (ene%its ? 2eed emphasis on psychological (ene%its
? 3se %ormali6ed) lengthy purchasing
policies and processes
? +uy on impulse or *ith minimal
processes
? 'nvolve large groups in purchasing
Decisions
? Purchase as individuals or as a %amily
unit
? +uy large quantities and (uy
in%requently
? +uy small quantities and (uy %requently
? EFpe#ie!&e ma?+# p#+)lems i: s%ppl*
:ails
? EFpe#ie!&e mi!+# i##i(a(i+! i: s%ppl*
:ails
? #ind s*itching to another supplier
di%%icult
? #ind s*itching to another supplier easy
? 2egotiate on price ? ccept the stated price
? Purchase direct %rom suppliers ? Purchase %rom intermediaries
? Purchase direct %rom suppliers ? Iusti%y an emphasis on mass media
Communication
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DMUs (decision making units) in BB markets:
? 3ser
3sers are the people *ho *ill use the end product) %or e!ample an operator *ho *ill use
production machinery) or a secretary *ho *ill use a *ord processor" -hese people may
trigger the purchasing process through reporting a need) and may also (e consulted in
setting the speci%ications %or *hatever is to (e (ought"
? 'n%luencers
'n%luencers can a%%ect the outcome o% the decision-ma&ing process through their in%luence
on others" 'n%luence could stem %ormally %rom e!pertise) %or e!ample the advice o% an
accountant on the return on investment %rom a piece o% capital machinery or that o% an
engineer on a supplierMs technical capa(ility) or it could (e an in%ormal) personal
in%luence" -heir prime role is in speci%ication) in%ormation gathering and assessment"
? Deciders
Deciders have the %ormal or in%ormal authority to ma&e the decision" #or routine re-(uys)
this may (e the purchasing o%%icer or someone in a %unctional role) (ut organi6ational
structures may dictate that the %inal decision rests *ith top management) *ho are %ed
in%ormation and recommendations %rom (elo*" -he deciderMs role and level o%
involvement) there%ore) *ill vary *idely) depending on individual circumstances"
? +uyers
+uyers have the authority to select and negotiate *ith suppliers" +uyers *ith di%%erent
level so % or seniority may e!ist to handle di%%erent types o% transaction) %or e!ample a
routine re-(uy could (e handled (y a relatively $unior clerical *or&er) *hereas the high-
cost) high-ris& ne* (uy might require a senior purchasing manager o% many yearsM
e!perience" 7here devolved (udgeting e!ists) the (uyer may not (elong to a %ormal
purchasing department at all) (ut (e someone *ho also has a %unctional role such as RFD
or mar&eting"
? <ate&eepers
<ate&eepers have some control over the decision-ma&ing process) in that they can control
the %lo* o% in%ormation (y denying access to &ey mem(ers o% the (uying centre" #or
e!ample) a secretary or purchasing manager may prevent a sales representative %rom
tal&ing directly to an e!ecutive) or intercept (rochures and mail shots and thro* them in
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the *astepaper (as&et (e%ore they reach the decision ma&er" -echnical sta%% can also act
as gate&eepers in the *ay in *hich they choose to gather) present and interpret
in%ormation to other mem(ers o% the (uying centre"
ENQUIRY NOTICE DOCUMENT:
Date:
D/M/YEAR
Company
Name
Contact
Person
Address
Designatio
n
Phone No.
Email
Address
Fax No.
Deliery Address
!e "o#ld li$e to hae yo#r %#ote as per details gien &elo":
'.no
Part No (
Description
Estimated
!t/Pc
Ann#al
Re%#irement
)arget
Price
*i+
any,
Deliery
Condition
Deliery )erms
-.
/.
0.
Remar$s1 i+ any
,A,ASA, PATIL Pa"e /4
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Submit Enquiry
Reset
Design of the study:
Statement of te pro!"em#
Suppliers per%ormance is very essential %or e%%icient per%ormance o% the company i"e"-
Supplier should supply quality ra* materials at the right time and at the competitive
rates) only then the organi6ation can survive in todayGs competitive environment "-hus
analysis o% the per%ormance o% the suppliers is very essential %or the organi6ation"
-his pro$ect aims at analy6ing the per%ormance o% the suppliers o% sho& 'ron
7or&s"
O!$e%ti&es of te study:
./ #inding the types o% (uying situations"
0/ #inding the %actors those in%luence on (uyers"
1/ #inding *hich department ma&es the ma$or (uying decision process"
4/ #inding the ma$or reason %or changing the previous suppliers"
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Research methodology:
METHODOLOGY:
?Primary Data:
- Questionnaire
- E-mail and pilot survey
MARKET REASERCH:
• Secondary Data:
- Data collection method
• Hypothesis analysis:
- Chi-square test
LIMITATIONS OF THE STUDY:
Sample si6e: 44 samples
Sampling area: lready e!isting industrial
customers"
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2,4S'S
2D
#'2D'2<S
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'o( many years are into te !usiness)
3 !" !" !"
#$ 3"! 3"! 4%!%
#% 34!# 34!# $&!%
& '(!% '(!% #((!(
44 #((!( #((!(
)elo* # year
# to % yrs
% to #( yrs
+bo,e #( yrs
-otal
.alid
/requency Percent .alid Percent
0umulati,e
Percent
I!(e#p#e(a(i+!:
#rom graph come to &no* that a(out 1A@ o% the companies) since
,A,ASA, PATIL Pa"e 0;
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%rom = yrs they are into the (usiness" 14@ o% the companies %rom
=-.> yrs and 0.@ o% the companies %rom more than .>yrs"
Is your %ompanies pur%asin* of trasmission and"ed !y your unit)
3' $'!$ $'!$ $'!$
#' '$!3 '$!3 #((!(
44 #((!( #((!(
1es
2o
-otal
.alid
/requency Percent .alid Percent
0umulati,e
Percent
'$!33
$'!$3
2o
1es
I!(e#p#e(a(i+!:
,A,ASA, PATIL Pa"e 0-
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-he graph sho*s that a(out ?1@ o% the companies purchasing o%
transmission is handled (y the unit itsel% and 0?@ o% the
companies purchasing o% transmission is handled (y the main unit"
Do you require any of te fo""o(in* spares)
#3! #3! #3!
" #"!' #"!' 3#!"
$ #%!& #%!& 4$!$
## '%!( '%!( $'!$
#3! #3! "!4
#3! #3! #((!(
44 #((!( #((!(
trasmission cases
clutch housing
)ra4e drums
0ylinder bloc4s
0ylinder heads
Hydrolic lift body
-otal
.alid
/requency Percent .alid Percent
0umulati,e
Percent
#3!3
#3!3
'%!(3 #%!&3
#"!'3
#3!3
Hydrolic lift body
0ylinder heads
0ylinder bloc4s )ra4e drums
clutch housing
trasmission cases
I!(e#p#e(a(i+!:
,A,ASA, PATIL Pa"e 0.
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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#rom the graph *e can interpret that a(out 0=@ o% the companies
purchase cylinder (loc&s) .9@ o% the companies purchase clutch
housings) .
o% the companies purchase (ra&e drums) %ollo*ed
(y .4@ o% the companies purchase cylinder heads) hydrolic li%t
(ody and trasmission cases"
From o( many years are you !een asso%iated (it %ompany tat you are
present"y pur%asin*)
" #"!' #"!' #"!'
#' '$!3 '$!3 4%!%
" #"!' #"!' 3!
# 3!4 3!4 #((!(
44 #((!( #((!(
)elo* # year
# to % years
% to #( years
+bo,e #( years
-otal
.alid
/requency Percent .alid Percent
0umulati,e
Percent
+bo,e #( years % to #( years # to % years )elo* # year
/
r
e
q
u
e
n
c
y
'(
#(
(
,A,ASA, PATIL Pa"e 0/
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I!(e#p#e(a(i+!:
#rom the graph come to &no* that a(out 1 o% the companies
since %rom more than .> yrs they purchasing spares %rom asho&
iron)0?@ companies %rom .-=yrs and .A@ companies %rom =-.>
yrs"
(at initiates you to %an*e te supp"iers)
#" 4(!& 4(!& 4(!&
## '%!( '%!( %!&
#( ''!$ ''!$ ""!
% ##!4 ##!4 #((!(
44 #((!( #((!(
Dissatisfaction
product quality
Deli,ery capabilities
price
-otal
.alid
/requency Percent .alid Percent
0umulati,e
Percent
##!43
''!$3
'%!(3
4(!&3
price
Deli,ery capabilitie
product quality
Dissatisfaction
I!(e#p#e(a(i+!:
,A,ASA, PATIL Pa"e 00
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-he a(ove graph sho*s that a(out 4.@ o% the companies change
their previous suppliers due to dissatis%action)0=@ o% the
companies change their previous suppliers due to product duality )
01@ companies change their previous suppliers due to lo*
delivery capa(ilities and ..@ o% the companies change their
previous suppliers due to prices o% the di%%erent automotive and
engine spares"
(o is te forma" autority to se"e%t te supp"iers)
'# 4$!$ 4$!$ 4$!$
$ #%!& #%!& 3!
# 3!4 3!4 #((!(
44 #((!( #((!(
purchase dept!
Engg!dept!
5anagement
-otal
.alid
/requency Percent .alid Percent
0umulati,e
Percent
3!43
#%!&3
4$!$3
5anagement
Engg!dept!
purchase dept!
,A,ASA, PATIL Pa"e 01
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I!(e#p#e(a(i+!:
#rom the graph *e can interprete that a(out 49@ o% companies
selection o% suppliers and purchase o% spare parts is done (y
purchase department %ollo*ed 1 o% the companies (y
management and . o% the companies (y engineering
department"
+at %omponents do you prefer (i"e ma,in* fina" !uyin* de%ision)
# 3!4 3!4 3!4
'" 3! 3! #((!(
44 #((!( #((!(
/inancing terms
6ong term agreements
-otal
.alid
/requency Percent .alid Percent
0umulati,e
Percent
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3!3
3!43
6ong term agreements
/inancing terms
I!(e#p#e(a(i+!:
#rom the a(ove graph come to &no* that :4@ o% the companies
*ere consider the component li&e long term agreements (e%ore
ma&ing the %inal purchasingC (uying decision and 1 o% the
companies *ere consider the %inancial terms as the (ase %or
ma&ing the %inal purchasingC (uying decision"
,A,ASA, PATIL Pa"e 05
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'o( do you e&a"uate your !uyin* de%ision after te pur%ase)
# 3!4 4(!( 4(!(
#3 '&!% 3'!% $'!%
## '%!( '$!% #((!(
4( &(!& #((!(
4 &!#
44 #((!(
Reliability of deli,ery
date promised
7rder cycle time
Deli,ery capability
-otal
.alid
System 5issing
-otal
/requency Percent .alid Percent
0umulati,e
Percent
&!#3
'%!(3
'&!%3
3!43
5issing
Deli,ery capability
7rder cycle time
Reliability of deli,
I!(e#p#e(a(i+!:
#rom the graph *e can interprete that a(out 41@ o% the companies
evaluate their purchase decision on the (asis o% relia(ility o% the
delivery automotive and engine spares) 10@ o% the companies
evaluate their purchase decision on the (asis o% order cycle time
and 0=@ o% the companies evaluate their purchase decision on the
,A,ASA, PATIL Pa"e 08
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(asis o% delivery capa(ility o% the automotive and engine spares"
'Y-OT'ESIS TESTIN.:
./ P#i&e a!$ Deli>e#* +: spa#es
H Price and deli,ery of spares are independent on each
other!
H#: Price and deli,ery of spares are dependent on each
other!
Ci/Square Tests
.alue d!f +symp!
Sig!8'-
sided9
E:act Sig!
8'-sided9
E:act Sig!
8#-sided9
Pearson 0hi-
Square
#!4"$ !''3
0ontinuity
0orrection
!"# # !4(&
6i4elihood Ratio #!4$$ # !''4
/isher;s E:act
-est
!'' !'(4
6inear-by-6inear
+ssociation
#!4%3 # !''"
2 of .alid 0ases 44
I!(e#p#e(a(i+!:
/rom the chisquare test come to 4no* that< the calculated
,alue 8#!4"$9 is greater than the e
ected ,alue 8!(%9!so< *e
re=ect the H#! i!e< Price and deli,ery of spares are dependent
,A,ASA, PATIL Pa"e 09
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on each other!and accept the H(! i!e< Price and deli,ery of
spares are independent on each other!
.7 O! (ime $eli>e#* a!$ se#>i&e &apa)ili(*:
H>: 5n time delivery o% products and a%ter service
capa(ilities are
'ndependent on each other"
H.: 5n time delivery o% products and a%ter service
capa(ilities are
dependent on each other"
Ci/Square Tests
.alue d!f +symp!
Sig! 8'-
sided9
E:act Sig!
8'-sided9
E:act Sig!
8#-sided9
Pearson 0hi-
Square
3!443 # !(4
0ontinuity
0orrection
'!#4( # !#43
6i4elihood Ratio 3!%'' # !(#
/isher;s E:act
-est
!##% !($'
6inear-by-6inear
+ssociation
3!34 # !($
2 of .alid
0ases
44
I!(e#p#e(a(i+!:
#rom the chisquare test come to &no* that) the calculated
,A,ASA, PATIL Pa"e 1;
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value H>">:/ is greater than the e!pected value H">=/"so) *e
re$ect the H." i"e" 5n time delivery o% products and a%ter
service capa(ilities are dependent on each other"and accept
the H>" i"e) 5n time delivery o% products and a%ter service
capa(ilities are independent on each other"
/>2D>2?S
,A,ASA, PATIL Pa"e 1-
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#indings:
• #rom the study it is clear that the p%#&'ase $epa#(me!( is
the ma$or in%luencer and also the decision ma&er o% the
'ndustrial (uying) so the relationship *ith the mem(ers o% the
management *ill yield (etter sales %or the company" Hence
this leads the (uyer to (e +rand ,oyal"
• +y the study conducted it is concluded that the companies are
into more o% s(#ai"'( Re)%* *hich means the 'ndustrial
(uyers are (rand loyal"
• Eost o% the 3sers o% the spares are automotive and engine
manu%acturing industries) 3sers may e!ert %rom a minor to a
very signi%icant degree o% in%luence on the purchasing
decision" -hey may initiate the purchasing process and play
an important role in de%ining purchasing speci%ications"
,A,ASA, PATIL Pa"e 1.
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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• 'ndustrial (uyers concentrate more on Price) Product quality
and Delivery (ut some o% the (ul& (uyers also include credit
period as an average important %actor %or (uying"
Suggestions:
?-he company increase its credit period the list of the
consumers *ill also increase!
?0ompany should target the small scale auto body building
industries also< through this they can increase their sales
turno,er!
?-here is more demand for the company castings so that
company should increase its production rate!
,A,ASA, PATIL Pa"e 1/
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CONCLUSION
#rom the study it is clear that the p%#&'ase $epa#(me!( is the
ma$or in%luencer and also the decision ma&er o% the 'ndustrial
(uying) so the relationship *ith the mem(ers o% the
management *ill yield (etter sales %or the company" Hence this
leads the (uyer to (e +rand ,oyal" -he companies are into more
o% s(#ai"'( Re)%* *hich means the 'ndustrial (uyers are (rand
loyal"
'ndustrial (uyers concentrate more on Price) Product quality and
Delivery (ut some o% the (ul& (uyers also include credit period
as an average important %actor %or (uying"
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A!!eF%#e
,A,ASA, PATIL Pa"e 11
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Q3ES-'522'RE
Dear sirCmadam)
." 2ame o% the concern : -------------------------------
0" 2ature o% the (usiness: ------------------------------
1" Since %rom ho* many years you are into the (usinessO
+elo* . yr .-= yrs =-.> yrs .> and a(ove
4" 's your company geographically located to di%%erent locationsO
4ES 25
=" 7hether your companyMs purchases handled (y your unitO 5r head
unitO
4ES 25
:" Do you have any suppliers (e%oreO
4ES 25
?" 7hat initiates you to change the suppliersO
Dissatis%action Price
Product quality on time delivery
9" Do you require any o% the %ollo*ing sparesO Hi% yes speci%y/
,A,ASA, PATIL Pa"e 14
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4ES 25
-ransmission cases Clutch housings +ra&e drums
Cylinder (loc&s Cylinder heads Hydraulic li%t (ody
Hu( %ront *heel
A" #rom ho* many years are you (een associated *ith the company that
you are presently purchasingO
+elo* . yr .-= yrs =-.> yrs .> and a(ove
.>"re your present supplies meeting your speci%ications
4ES 25
.." Ran& the %ollo*ing attri(utes %rom . to =" you consider *hile
selecting the supplier"H.-most important ) =- least important/
Price Product quality
a" Delivery Service capa(ilities
(" Credit period
.0"7ho is the %ormal authority to select the suppliersO
a" Purchase department Eanagement
Engineering dept" others
.1" 7hat components do you pre%er *hile ma&ing %inal (uying decisionO
,A,ASA, PATIL Pa"e 15
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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#inancing terms ,ong term agreements
.4"Ho* do you evaluate your decision a%ter the purchaseO
Relia(ility o% delivery date promised
5rder cycle time
Delivery capa(ility
.="7hat is your average monthly requirement o% the spare partsO
a" -ransmission cases Clutch housings +ra&e drums
Cylinder (loc&s Cylinder heads Hydraulic li%t (ody
Hu( %ront *heel
Speci%y quantity requirement H in @ /-------------------------------
----------------H2D 453-----------
,I,LIOGRAPHY:
,A,ASA, PATIL Pa"e 18
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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+55DS:
• 'ndustrial mar&eting K +y) Hutt and Spec"
• 'ndustrial mar&eting K +y) Reader and Reader
• WE, SITES:
• 7**" sho& irons"com
,A,ASA, PATIL Pa"e 19
doc_865086689.doc
WORKS.
Research methodology:
METHODOLOGY:
?Primary Data: - Questionnaire
- E-mail and pilot survey
MARKET REASERCH:
• Secondary Data: - Data collection method
• Hypothesis analysis: - Chi-square test
LIMITATIONS OF THE STUDY: Sample sie: 44 samples
Sampli!" a#ea: lready e!isting industrial
customers"
Fi!$i!"s:
#rom the study it is clear that the p%#&'ase $epa#(me!( is the ma$or
in%luencer and also the decision ma&er o% the 'ndustrial (uying) so the
relationship *ith the mem(ers o% the management *ill yield (etter sales %or
the company" Hence this leads the (uyer to (e +rand ,oyal" -he companies
are into more o% s(#ai"'( Re)%* *hich means the 'ndustrial (uyers are
(rand loyal"
'ndustrial (uyers concentrate more on Price) Product quality and
Delivery (ut some o% the (ul& (uyers also include credit period as an
average important %actor %or (uying"
S%""es(i+!s:
,A,ASA, PATIL Pa"e -
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./ -he company increase its credit period the list o% the consumers *ill also
increase"
0/ Company should target the small scale auto (ody (uilding industries also)
through this they can increase their sales turnover"
1/ -here is more demand %or the company castings so that company should
increase its production rate"
'2D3S-R4 PR5#',E
,A,ASA, PATIL Pa"e .
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INDUSTRY PROFILE
MANUFACTURING OF CASTINGS IN INDIA:
-he %oundry sector is *ell recogni6ed as one o% the supporting industries %or the
machinery and the utomo(ile industry" 7ith the recent remar&a(le economic
development in sia) the production o% castings as part o% process materials in every
engineering industry has (een increased8 that o% the sian area is the highest in the *orld"
Ho*ever the production o% castings per capita is only 9"0 &g *hich is lo*er than *orld
average than .1"
this %act sho*s that the production o% castings *ill surely to increasealong *ith an economic gro*th not only in the sian area) (ut also in developing
countries"
PRODUCTION OF CAST IRON AND ENERGY CONSUMPTION:
-he term Cast 'ron is a general term %or ;<rey cast iron; and ;Spheroid graphite
cast iron castings;" Since cast iron is easy to manu%acture and its manu%acturing cost is
lo* and (esides it has various physical and chemical properties) it is used in large amount
in metal products in almost all areas o% industries" -he annual production o% cast iron
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castings in the *orld is over => million tons" <rey iron castings are di%%erentiated %rom
good cast a(ility a(rasion resistance) damping capacity) corrosion resistance) machining
a(ility etc") they have (een produced the largest among all sorts o% castings" 't %orms
a(out ?=@ o% the total production o% cast iron" Spheroidal graphite cast iron is superior to
<rey cast iron) statistically it is usually e!cluded %rom cast iron" Since mallea(le iron
castings has to (e treated in the process o% its manu%acturing %or long hours at high
temperature in order to improve the mechanical parts) a large amount is to (e consumed8
the rate o% energy consumed per tone o% mallea(le cast iron is %our or more times o% cast
iron" -here%ore mallea(le cast iron is replaced *ith spheroidal graphite cast iron and its
production has remar&a(ly decreased"
COMPANY PROFILE
A,OUT US
sho& 'ron 7or&s Pvt" ,td *as esta(lished during the year .A?4 *ith a
commitment to o%%er *orld-class quality castings" 5ver the years) the company has
emerged as a industrial conglomerate" -oday it is (eing ran&ed as one o% the top =
%oundries in 'ndia" -he company has t*o large %oundries and si! machining division to
support the activities" 3nder the e!pansion program) one o% the (iggest %oundries is under
commissioning stage" -he steady and phenomenal gro*th o% sho& 'ron <roup over a
period o% 0= years is not merely an incident) (ut it is a result o% the determination and
%oresight o% %ounders
? Shri sho&" S" Hum(ar*adi
? Shri Basudev" P" Han$i
Since its inception the vision o% sho& 'ron <roup is to ensure dominant presence
in the core sector industries *hich are critical %or a gro*ing economy in 'ndia and is
enhancing and maintaining its strength that it is one o% the (est glo(al scenario o% %oundry
(usiness" -his requires (uilding an organi6ation" Committed to the pursuit o% e!cellence
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and committed to &no*ledge integration and continuous learning Cup gradation
Cimprovement" -he activities o% the company are oriented around the a!is o% innovation
*orld class technology and continuous improvement in capacity and quality"
'7) has al*ays %irm (eliever in the philosophy to achieve e!cellence in the %ield
o% %oundry) -oday) '7 is one o% the largest $o((ing %oundries grey cast iron required %or
automo(ile industry) %arm equipment industry and diesel engines industry" 5ver the last 1
decade since .A?4 the <roup has esta(lished the record o% success%ul evolution" s a
Pioneering vision and Po*er%ul drive to change ahead o% 'ndia %inest and most integrated
$o((ing %oundries" ,ocated at +elgaum =>> Dm South o% Eum(ai) and .=> Dm %rom
<oa) -he '7 <roup Has #oundries and Eachine Shop that add value) (y machining
over :>@ o% the casting manu%actured to %ully %inished condition"
s *e enter the ne* millennium) the *orld has *o&en to the reality o% immuta(le
change) *here *orld class per%ormance) driven (y a po*er%ul vision) truly spea&s the
language o% quality) technology) and service everyday) *ere adding value (y anticipating
change mar&s the *inners and leaves those *ho %ear change in the pages o% a %ast
%orgotten history"
7e) at '7) have al*ays %irmly (elieved in this philosophy to achieve e!cellence in the
%ield o% %oundry industry" -oday) '7 is one o% the largest $o((ing %oundries producing
<rey 'ron Castings required %or utomo(ile" #arm Equipment Sector F Diesel Engines
'ndustry"
5ver the last three decades since .A?4) *hen the <roup *as esta(lished) the saga
o% the '7 <roup is a record o% success%ul evolution" s pioneering vision and po*er%ul
drive to change ahead o% the times) has pushed the <roup to (ecome one o% 'ndiaGs %inest
and most integrated $o((ing %oundries" ,ocated at +elgaum) =>> Dilometers south o%
Eum(ai) and .=> Dilometers %rom <oa) the '7 <roup has %oundries and machine
shops that add value) (y machining over :>@ o% the castings manu%actured to %ully
%inished condition"
,A,ASA, PATIL Pa"e 1
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'n %act) '7 is one o% the very %e* %oundries) *hich is QS-A>>> certi%ied" Driven
(y a team) %ully committed to technological and service e!cellence) the '7 <roup is all
set to continue its ongoing quest %or e!cellence"
-he <roupGs Bision) Eission and Quality Policy truly re%lect <roupGs commitment
to (ecome one o% the (est %oundries <roup in the glo(al arena"
2ISION:
7e are committed to serve the interests o% all our sta&eholders (y (eing and
maintaining our position at the top in 'ndia and (e one o% the (est in the glo(al scenario
o% %oundry (usiness *ith an e!ceptional moral and (usiness ethics"
MISSION:
-o develop e!pertise in technology o% machining o% various components to
support the #oundry (usiness and (e a(le to (e a glo(al supplier o% %inished components"
3UALITY POLICY:
-o aim at our customerGs delight (y e!ceeding his e!pectations through an
e!ceptional (lend o% quality-cost-delivery o% our products and service that *e provide"
THE COMPANY
sho& 'ron 7or&s Pvt" ,td is esta(lished during the year .A?4 *ith a
commitment to o%%er *orld class Quality castings" 5ver years) the company has increased
its production *ith a modest capacity o% => E- per month to .=>> E- per months and
emerged as a leading 'ndustrial conglomerate" -oday it is ran&ed as one o% the top =
$o((ing #oundries in 'ndia" -he company is having t*o large %oundries and si!
Eachinery divisions to support the activities"
,A,ASA, PATIL Pa"e 4
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MAIN MANUFACTURING ACTI2ITIES
? Producing o% castings *eighing %rom 0> Dgs to 1>>> Dgs"
? Eachining o% castings) components C cran& ha%ts) selected ,C Engine components
and su( assem(lies) %or diesel engines) -ractors and utomo(ile 'ndustries in
'ndia and around the *orld"
STRENGTHS OF THE COMPANY
? Supply o% components in %ully machined condition) there (y saving su(stantial
total cost o% o*nership)
? 'n-house capa(ility o% (uilding) machines) $igs and %itness required %or machining
o% components"
? Highly quali%ied trained *or&%orce"
PLANT PROFILE
S
,"
2
o"
DE-',S P,2- ' P,2- ''
. ,ocation o% the plant
:9AC.) 3dyam(ag
+elgaum
Eachhe 'ndustrial Estate)
+elgaum
0 4ear o% Esta(lishment .A?4 .AA.
,A,ASA, PATIL Pa"e 5
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1 Regd" 5%%ice
:9AC.) 3dyam(ag
+elgaum
:9AC.) udyam(ag +elgaum
4
Eanpo*er capacity as per the #actories
=>> 0=> ct"
=>> 0=>
= +uilt-up area H Sq"Etr / ::11 .9:>>
: '2#RS-R3C-3RE 5# -HE P,2-
Sand ma&ing <reen sand Resin (onded sand
+ Core ma&ing
5il cores) shell cores F
cold (o! cores) no +a&e
cores etc
5il cores) shell cores F
cold (o! core) no (a&e
cores etc"
C Eould ma&ing
Iolts F squee6ing
machines
Compaction ta(le) no (a&e
sand
D Eelting
'nduction %urnaces
Hmedium #requency/
channel type-= nos cupola
%urnaces- 1 nos
Eedium %requency
'nduction %urnace -
0 2os
E #ettling
+ED shot (lasting
machines
+ED shot (lasting
machines
# #acilities
,a( *ith all testing
%acilities
,a(s *ith all %acilities
including hilger ma&e
spectrometer"
< Eelting capacity 9=-.>> tons per day 4> tons per day
H Casting range :4-0>> &gs per piece 1>-1>>> &gs per piece
' Eoulding +o! si6e H Ea!imum/ .0.AJ9.0J1>4 mm 0??=J.4>>J:9>mm
PRODUCT PROFILE CUSTOMER WISE 6FOUNDRIES7
,A,ASA, PATIL Pa"e 8
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Sl" 2o Customer Plant -. Plant K''
. Cummins 'ndia
7ath pump costing %ly
*heels %ly *heel housings)
hotel e!changers" <ears)
case cover etc
Cylinder heads F cylinder
(loc&s
0 sho& ,eyland
utomo(ile drums"
Housing) %ly *heels etc
-
1 -a%e
-ran case) center housing
hu(s) li%t cover +ra&e
Drums etc"
-
4 ,F- Suction pumps castings -
= EFE -ransmission case -
: Simpson +loc&s F +earing caps Cylinder heads
? Escorts
Di%%erential housings)
hydrantic li%t cover) gear
(o! etc"
Cylinder heads"
9 D","7 - Cylinder heads
PRODUCTS:
,A,ASA, PATIL Pa"e 9
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C+mp+!e!(s :+# Diesel E!"i!e I!$%s(#*:
Cylinder +loc&s) Cylinder Heads) #ly*heels) #ly*heel Housings %rom 0> &gs" -o 1>>>
Dgs C per Piece") Cran&sha%t Eachining) 1 cylinder to .: Cylinder %rom ?> to .>>>
&gsCpc 7ater Pumps) 5il Pump ssem(lies"
Components for Farm Equipment Industry:
-ransmission Cases) Clutch Housings) +ra&e Drums) Cylinder +loc&s) Cylinder Heads)
Hydraulic ,i%t +ody) Hu( #ront 7heel %rom .> &gs to 0>> &gs C pc"
Cran&sha%t machining) 1 cylinders and 4 cylinders"
,A,ASA, PATIL Pa"e -;
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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MAIN FEATURES OF THE COMPANY
5ne o% the top = %oundries in gro*ing at a %aster rate and 'ndiaGs (est-managed %oundry
." Practices team *or& in (usiness
0" Every one has a opportunity to gro*
1" Proactive in house training and education
4" 'S5 A>>> Company"
=" ="-a&es into consideration *or&ers suggestion
:" 'mplementation o% &ai6en principles
?" 'mplementation o% =s tools
AWARDS AND ACHI2EMENTS
? 5ne o% the %e* Qs-A>>> certi%ied %oundries (y -3B"
? Certi%ied (y Cummins) 3"S" in .AA= %or supply in ;Ship to use conditionG;"
? Certi%ied (y ,loyds Register o% Shipping) ,ondon in .AA="
? Regd" as 7orld Source %or Cummins Engine Company" 3"S""
3UALITY O,<ECTI2ES
? -o remain customer %ocused (y providing the designed Quality" Cost and Delivery
through manu%acturing e!cellence"
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? -o adopt continuous improvement in all organi6ational activities to meet dynamic
Requirements o% customers"
? -o involve and empo*er all employees across the organi6ation"
MANUFACTURING
? Computer numerical machines (eing used %or accuracy
? Rotation o% $o(s %or multi s&illed
? Pre planned activities are (eing scheduled
? Supervisor %or quality chec& and inspection
? Einimum re$ection
? E!pert technical sta%%
TECHNICAL
? 7ell equipped research and development center
? Sophisticated and necessary testing rigs
? Quali%ied sta%% DE'2'S-R-'52
? #ully computeri6ed in%ormation and administrative system
? E%%ective) smooth) and minimum paper*or& ERDE-'2< E!port oriented
Competitive priced Delivered at the right lime
? #ast response to customer queries
? Eore value added at the same price E!perienced mar&eting e!ecutives"
2ARIOUS DEPARTMENTS
? dministrative department
? Production department
? Purchase department
,A,ASA, PATIL Pa"e -.
SEC3R'-4
5##'CER
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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? Stores department
? #inance department
? Ear&eting department and
? Personnel F HRD department
HUMAN RESOURCE MANAGEMENT
HRD in an organi6ation %unctions to improve the attitude o% employees to achieve
the customer satis%action al*ays"
5ver the past decade the (usiness scenario has totally changed (ecause o%
customer requirements are changing rapidly" -he quality) cost and delivery requirements
are very stringent %rom the customer point o% vie*" Customer *ants changes and
improvements very %ast %or *hich any organi6ation should (e *ell equipped in todayGs
tough competitive *orld to *or& to*ards customerGs changing needs %rom time to time"
-he process o% development o% employees in sho& 'ron <roup considered as one
&ey activity %or improving the s&ills) &no*ledge" ttitude and per%ormance on continuous
(asis" 'n line *ith the organi6ational o($ectives" -raining Eanual is (eing %ramed on
incorporated in the manual %rom time to time in addition to annual training plan"
Employees su($ected to counseling process %or improving morale) discipline and
Employees per%ormance is assessed annually through ppraisal system %or re*arding
increments"
ORGANIZATION CHART
,A,ASA, PATIL Pa"e -/
P,2--'
3nit HRD
sst" HRD
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
MAN POWER PLANNING
l" 't is the policy o% the company to ma&e all manpo*er allocation on the (asis o%
,A,ASA, PATIL Pa"e -0
CH'RE2
ELEC3-'BE
D'REC-5R
HED <R53P HRD
E2<ER
S#E-4
E2<ER
-R'2'2<
P,2--''
3nit HRD
JE, SE & PE
Unit HRD in
Charge
E F
Divn" CH
F + ECC"
Divn" 3nit
HRD 'n
charge
sst" HRD sst" HRD
Casting
ECC Divn"
3nit HRD
'n charge
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
pro$ections made through the pproved nnual Eanpo*er Plan HEP/" -he company
(elieves that only planning and development activities can achieve ensuring optimum
utili6ation o% HRs" 't is there%ore) essential that all the personal activities such as
Recruitment) -rans%ers) Career and Succession planning should (e con%irmed to the
pproved nnual Eanpo*er Plan HEP/" -he company e!cepts all departments to
con%irm strictly to the norms and procedures o% the manpo*er laid do*n (y the
management
0" 't shall (e the $oint responsi(ility o% the H5DGS and 3nit HRD 'n-charges to prepare
the manpo*er plan in con%ormity *ith production norms" #urther) approval shall (e
o(tained %rom e!ecutive Director head group HRD"
1" P#+&e$%#e:
? ll recruitments must (e in line *ith the approved organi6ation chart and
sanctioned strength"
? 7henever vacancy arises due to Resignation) Superannuation) Promotion etc or
%or %e* positions) HRD dept) *ill initiate the selection procedure in consultation
*ith concerned %unctional head"
4" S+%#&es +: Re&#%i(me!
? E!isting HRD data (an&"
? 7ithin the group companies"
? Consultants or placement agencies)
? -hrough personal contacts"
'% suita(le candidates are not availa(le through a(ove sources) then through
advertisements in suita(le ne*s papers"
ccording to the Provisions o% Employment E!change ct) the HRD Dept" *ill noti%y the
,A,ASA, PATIL Pa"e -1
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same to the concerned employment E!change"
=" Re&#%i(me!( P#+&e$%#e:
a" E!perienced candidates: #or e!perienced candidates) the salary %i!ation and other
per&s %or each position shall (e as per their pay scale "Ho*ever) individual %i!ation shall
(e made depending upon his quali%ication) e!perience) $o( requirements etc"
(" #resh candidates - +"EC DiplomaC <raduatesC P<s:
? -he period o% training %or %resh candidates shall (e one year
? Stipend during the training period is as per company policy"
? -he success%ul candidates as per Regulari6ation Criteria *ill (e a(sor(ed in
regular scale"
C" #or 7or&men:
? #or %resh candidates) the duration o% training shall (e .9 months" :
Stipend during the training period is as per the company policy"
Su(sequently) additional (ene%its as decided (y the Eanagement *ill (e
e!tended during the course o% training period"
? 5nce the training period is completed success%ully) the trainees shall (e a(sor(ed
in the *or&men category as per T'e Mi!im%m Wa"es A&(" -he Regulari6ation
criteria shall (e (ased upon per%ormance) attendance etc"
:" Pa* a!$ All+=a!&es:
? Classi%ication o% the employees is as per the anne!ure ' F: '' enclosed here*ith"
? -he employees placed in the scale (ased on e!perience) quali%ication) nature" o%
*or& etc" depending upon this) (asic is %i!ed in the respective scales
,A,ASA, PATIL Pa"e -4
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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5.T#a>el Reim)%#seme!( :+# A((e!$i!" I!(e#>ie=:
? ,ocal candidates shall not (e entitled %or reim(ursement o% conveyance e!penses"
? 5utstation candidates *ill (e reim(ursed -o F #ro %are (y the shortest route on
production o% proo% %or attending the intervie* as per eligi(ility"
? -he candidates called %or intervie* %or senior positions i"e" %or Eanagers and
a(ove shall (e paid %irst C second class train C (us %are"
? #or all other positions second class train C (us %are shall (e applica(le"
8. I!(e#>ie= A##a!"eme!(s:
? -he HRD-Dept" has to ensure the de%inite Benue) Date) and -ime o% the intervie*
adolescent in%orm the same to the candidates and intervie*ing committee"
? 'ntervie* call letters to (e dispatched *ell in advance) at least .> days clear
notice" 'n case o% emergency requirement" HRD-dept) may call the candidates
*ith shortest notice either (y phone message or telegram"
? 't shall (e the responsi(ility o% HRD- Dept" to arrange to receive the candidates on
arrival at the location" HRD-Dept" is ma&ing quic& and e%%icient settlement o%
travel claims a%ter veri%ication once the intervie* completed"
? -he HRD-Dept" shall ta&e care o% the hospitality o% the candidates during the
course o% intervie*s"
9. REFERENCE CHECKS:
-he %ollo*ing procedure *ill (e adopted %or o(taining re%erence chec&
? -*o re%erence chec& (y the HRD-Dept)
? ll the in%ormation is trade and commerce (e maintained under strict
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Con%idence"
-;.APPOINTMENT AUTHORITY:
? -he E!ecutive Director is the pproving authority %or all the appointments"
? -he appointment orders up to the level o% Sr"Eanager shall (e issued (y
Dy"<eneral Eanager- HRD"
? ll other orders %or sst"<E and a(ove positions shall (e (y E!ecutive Director)
ho*ever all the papers relating to the issue o% orders shall (e prepared and
monitored (y D<E- HRD"
--. <OINING FORMALITIES:
? Ioining report to (e o(tained %rom the candidate (y the HRD-Dept"
? Copies o% the certi%icates) testimonials) latest passport si6e photograph) leaving
certi%icate %rom the previous employer) to (e o(tained (y the HRD- Dept"
? 2omination under P# and <ratuity) ES' *herever applica(le is to (e o(tained"
? Eedical chec&-up (y the medical o%%icer (y the company is to (e arranged)
? HRD- Dept" shall issue 'dentity card to the ne* employees *ithin ? days %rom the
date o% hisCher $oining"
-..INDUCTION:
? 7henever employee $oins organi6ation) it is the responsi(ility o% the HRD- Dept"
to ta&e appropriate means %or arranging 'nduction Program"
? -his 'nduction program is to help the ne* employee to (ecome a*are and
understand the company) its structure) products) general conditions o% company
policies) discipline) practices) rules and regulations and other %acilities"
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? -he HRD- Dept" *ill prepare a circular %or the 'nductions o% the ne* entrants and
circulate it to all the concerned depts" -he %ollo*ing arrangernents to (e made (y
the HRD-dept"
? Seating rrangement: '% eligi(le) arrangement %or o%%iceCresidence) internal C
e!ternal phone connections along *ith telephone directory"
? Stationery i% required"
? HRD-dept" has to in%orm the security dept" a(out the employees $oining and
provide the documents such as service) rules etc to the employee"
-/.TRAINING AND DE2ELOPMENT:
-he company has given greatest signi%icance to training) and recogni6ed its
importance (oth to the employees and the organi6ation" -he company (elieves in
training) %orming integral process in integrating the organi6ational needs) i% the needs o%
the individual employees" -he company (elieves the training essentiality %rom the point
o% vie* o% %acilitating continuous update s&ills and &no*ledge and also directed to*ards
employee development and his career progression" s a matter o% policy the company
considers that all employees should (e covered in the training programs) (ased on the
identi%ication o% training needs (y the respective H5DGS and requirement o% the company"
." O)?e&(i>es
? -raining is to (e given *ith a vie* to enhance the $o( &no*ledge) %acilitating
constant updating o% technology or ne* concepts"
? -he programmes ta&e into account the training needs o% the individual and his
responsi(ility in the organi6ation"
? -he H5DGS shall primarily (e responsi(le %or the identi%ication o% training needs"
? -he designing o% suita(le programs and its implementation is (eing done (y 3nit
HRD 'n charge under the guidance o% head group HRD"
.. P#+&e$%#es
? ll 3nit HRD in charges shall coordinate *ith respective H5DGs to identi%yG
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training needs at their respective DeptGs during survey" -he HRD department *ill
arrange all such activities as per corporate plan on training and development"
/" I!@'+%seA+%(s(a(i+! (#ai!i!" p#+"#ams"
Depending upon the num(er o% employees) the HRD Dept *ill arrange the training
courses either at in-house or outside" 7hile deputing %or outstation courses) speci%ic
approval %rom the e!ecutive director through Head group HRD is to (e o(tained"
? -he employees underta&ing training must su(mit report *ithin a *ee& o%
completion o% training program"
? 7henever employee attends the training programs on speciali6ation topics) he
should give presentation to the concerned employees in the organi6ation) so that
more employees can (e (ene%ited (y the same presentation"
-0.PERFORMANCE APPRAISAL.
Per%ormance appraisal: -he Company recogni6es and %osters the concept o% regular
employee assessment as a sole means o% determining employeeGs per%ormance)
e%%ectiveness) and potentiality at all levels o% the organi6ation" 't %irmly (elieves that the
assessment and correct evaluation is not only %acilities the determination o% the
employeeGs level o% per%ormance and achievement) (ut also gives an opportunity to the
employee to (ring in (rilliant ideas and innovation" -he company regards per%ormance)
assessment essentially %rom the point o% vie* o% employee development and career
progression"
'" O)?e&(i>es:
? ppraiserMs role) e%%ectiveness on the $o() a*areness to*ards strengths and
*ea&nesses is to (e identi%ied"
? Developing valid data %or individual %or ma&ing decision in relation to placement)
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increment) promotion) punishment etc"
? 'mprove the relationship (et*een appraiser and the appraise through per%ormance
appraising dialogue" -his ena(les open communication among appraiser and
appraises to &no* the e!pectation o% each other"
? Provide an opportunity to the appraise %or introspection) sel% evaluation) and goal
setting so that he remains to the path o% development"
? Conducting development programs to enhance per%ormance in the current $o( and
reali6e the potentiality %or %uture responsi(ilities"
." S&+pe:
? Cover all the permanent employees o% the company including managerial cadres"
(" ppraisal calendar: -he %ield o% appraisal is .
st
o% pril to 1.
st
o% Earch"
? -he calendar %or process is as under:
? .
st
Earch: Distri(ution o% appraisal %orm to the H5DGs (y the HRD
department"
? .>
th
Earch: ppraiser to organi6e and arrange to %ill up the %orms"
? .
st
pril: ppraiser to handover the %orms) duly %illed into HRD Dept"
? .>
th
pril: HRD Dept to compile all the ratings and put-up to the
management %or revie* and approval"
? 0>
th
pril: #inali6ation o% %inal increments (y the management"
? 0= pril: 'mplementation o% the annual increments promotions etc (y the
head group HRD"
/ P#+&e$%#es:
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a" -he HRD Dept shall send the (lan& per%ormance appraisal %orms a%ter %illing relevant
personal details o% the employees to the H5DGS as per calendar"
(" -he appraiser should %ill in as per the ratings mentioned in the %orm (y e!amining all
the points"
c" -he appraiser shall %ill up in last page regarding main points to (e conveyed regarding
appraise" -he appraiser shall %ill up and in%orm the appraise a(out his strengths and
*ea&nesses (e%ore handing over the %orms to the unit HRD 'n charge"
d" -he appraiser to carry out the per%ormance appraisal shall consider the %ollo*ing
points:
? llo* sel%-appraisal (y the appraise"
? 5rgani6e per%ormance revie* discussions"
? Should in%orm to the appraise and ta&e impartial vie*s" Sum up the discussions
*ith appraise and chal& out action plan %or development" #inally the %orm should
(e sent to HRD Dept as per calendar duly signed (y appraiser and unit in charge
*herever applica(le"
e" Eerit rating: -he employees are classi%ied (ased on the merits as %ollo*s:
T+(al ma#Bs Ra(i!"
? =? and a(ove Bery good
? 4.-=: <ood
? 0=-4> Satis%actory
? >A-04 verage
? >>->9 Poor
WELFARE MEASURES
." 5($ectives: -o lay do*n and practice several *el%are schemes as *ould contri(ute to
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healthy participation o% the employees in the interest o% the company and do all *ithin the
means to satis%y needs o% employees in their physical) Cultural) psychological and
economical *ell (eings"
0" -he company has a commitment to promote the *el%are o% the employees and to &eep
the employees and their %amilies happy and contemplated8 these are (oth statutory and
non-statutory"
a/ Ca!(ee! Se#>i&es:
-he company maintains a %ull %ledged canteen to provide its employees *ith
healthy %ood) snac&s *hile on duty on su(sidi6ed rates" -he %acility is opened
on %i!ed timing on all *or&ing days"
(/ U!i:+#ms:
ll the permanent employees o% the group are provided *ith 0-pairs o%
uni%orms and one pair o% shoes per year" -he company is (earing stitching
charges"
c/ Ma##ia"e "i
: '% an employee gets married *hile in service) he *ill (e given cash gi%t*hich is %or 7or&men Rs"0=.C- and %or Sta%% is Rs"=>.C-
d/ Me$i&al (#ea(me!( A Empl+*eeCs i!?%#* +! $%(*: -he ES' scheme is applica(le to
those covered under ES' act" Such o% those employees *ho are not covered under ES'
scheme are eligi(le %or the %acility as laid do*n in medical Reim(ursement scheme"
e/ '% the employee meets *ith any accident during *or&ing hours) is provided %irst aid
treatment immediately and initial e!penditure is (orne (y the company till he is
shi%ted to the ES' hospital"
%/ -he employees *ho are not covered under ES' scheme are given medical treatment
incase o% accident at the companyGs premises at the e!penses o% company"
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g/ Empl+*eeCs P#+>i$e!( F%!$:
Every permanent employee shall (e entitled and required to (ecome mem(ers o% the
%und" -he contri(ution paya(le (y the employee shall (e at the rate as applica(le
under P# act and matching contri(ution (y the management"
h/ G#+%p I!s%#a!&e:
<roup 'nsurance scheme %or the employees *ho are not covered under ES' are covered
(y <roup 'nsurance Scheme to protect against in any eventually accidents"
i/ G#a(%i(* S&'eme:
? ll the permanent employees are covered under the <ratuity scheme"
? <ratuity *ill (e admissi(le only a%ter completion o% quali%ying service %or =
years"
? -he (ene%its applica(le are as per the Payment o% <ratuity ct and <roup
gratuity scheme adopted (y the management"
$/ P#+>i$i!" Telep'+!e Calls:
? -he telephone calls %rom employeesG relatives shall not (e entertained unless and
until it is urgent call"
? -he security department at main gate shall receive the call and note the name o%
the person calling and the message *ill (e communicated to the employee"
? 'n case o% urgent messages) i"e" accident) death etc" -elephone operatorCsecurity at
the main gate shall note the details) name o% the caller) name o% the recipient o%
call etc and in%orm the employee concerned over phone immediately"
? 2o ordinary calls shall (e entertained"
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SAFETYD HEALTH AND EN2IRONMENT:
-. SAFETY:
? 'denti%ying the unsa%e conditions
? Eonthly sa%ety audit report"
? Eonthly sa%ety committee meeting discussions"
? Report (y employees"
? 3nsa%e acts are corrected (y conducting training programmes on sa%ety) health
and environment to all the employees" -he unit HRD in charges are responsi(le
%or arranging training programmes on consultation *ith E!ecutive H-raining nd
Sa%ety/"
? ll unsa%e conditions are recti%ied (y the maintenance department on top priority
under the guidance o% E!ecutive H-raining F Sa%ety/"
? -he respective 3nit HRD 'n charge procures necessary and appropriate Personal
Protective Equipments in consultation *ith E!ecutive-H-raining F Sa%ety/ and
issue the same to the all employees"
? -he Sa%ety and Health policy is introduced %or providing good and sa%e
environment at Plant ' F Plant ''"
? Sa%ety committees are %ormed at plant ' and '' and meetings are held once in a
month" -he minutes o% the meeting is sent to HED - group HRD"
? Recogni6ed a competent person %or e!amining the li%ting machine and li%ting
tac&les and pressure vessels once in a year %rom sa%ety point o% vie* and
o(taining certi%ication"
? 5(tained approved ;52 S'-E F 5## S'-E P,2; %rom Chie% 'nspector o%
%actories %or e!ecuting in emergency condition %or Plant -lFG .."
? 7or& permit system has (een implemented *hile carrying the *or& at height at
%ragile roo%s"
? #ire E!tinguishers are installed and maintained at prominent places"
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? ll machines are provided *ith sa%ety guards"
? #irst id +o!es are provided at each unit"
? m(ulance van is readily availa(le %or ta&ing in$ured to hospital"
.. HEALTH:
? Provided *ith the %acilities li&e Drin&ing *ater) urinals and toilets and maintained
them properly"
? Proper ventilation F illumination are provided at shop %loor and o%%ices"
/. EN2IRONMENT:
? #ul%illing the requirements o% the Darnata&a State Pollution Control +oard
HDSPC+/" 7e are o(taining the *ater and ir consents periodically as prescri(ed"
? pproval has (een ta&en %rom DSPC+ %or disposing the Ha6ardous *astes"
? Stoc& monitoring is (eing carried out regularly"
? Systematic and sa%e arrangement is provided %or storing and handling o%
chemicals"
? Eaintaining Diesel tan&s as per e!plosive acts"
? Providing can plugs and ear mu%%s *herever noise pollution e!ists and *ho are
*or&ing in noise areas"
? Painting (ooths are provided *herever required"
0. SAFETY POLICY:
7e (elieve -
? Health and Sa%ety o% the employees *hether at *or&shop) o%%ice or site are
matters o% utmost concern to the management"
? Eanagement (elieves that human value involved is o% great importance)
*hatever else may (e the compulsion o% (usiness and manu%acturing"
? Sa%ety ran&s top on the priority list along *ith production and quality"
,A,ASA, PATIL Pa"e .4
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? Sa%ety and healthy operating procedures also have *ay %or reduced cost and
higher productivity"
? Healthy employee is an asset to the organi6ation"
? ll accidents and damages shall (e prevented"
WE ARE COMMITTED TO:
? Ensure that plant) equipment) machinery) process and systems o% *or& are sa%e"
ha6ard %ree and *ithout ris& to the health)
? Ensure availa(ility o% in%ormation) instructions) training and supervision"
? +elieve that) no Io( is so important as to overloo& health and sa%ety"
? +elieve that the cooperation o% employees in o(servance o% sa%ety policy *ill
provide sa%e *or&ing condition and ensure accident %ree and quality per%ormance"
? Provide regular health chec&up to monitor the health status o% the employees"
? Head accounta(le all our sta%% %or the sa%ety o% their employees"
? -o conduct sa%ety inspection and sa%ety audit periodically"
WE EEPECT FROM OUR EMPLOYEES:
? -o o(serve all sa%ety and adopt the sa%ety rules"
? -o use all sa%ety appliances) equipments and devices properly"
? -o %ollo* sa%e operating procedure"
? -o &eep the *or&place clean and tidy"
? -o integrate sa%ety into the $o("
? -o care %or personal hygiene"
? Disseminate sa%ety-Dno*ledge among colleagues"
? Dra* the attention o% right o%%icer on any unsa%e activity) practices and conditions"
,A,ASA, PATIL Pa"e .5
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
Sl"2o"
C-E<5R4 5#
EEP,54EES
'-EES HPPE/ Q32-'-4 'SS3'2< PER'5D
>.
Permanent *or&men
H7E/
3ni%orms 0 pairs p"a" During Earch every year
>0
Permanent *or&men
H7E/
Sa%ety shoes . pair p"a" - D5 -
>1
Permanent *or&men
H7E/
Special shoes
HEelting/
0 pairs p"a"
5nly to *or&man *or&ing in
Eelting section o% %oundry" 5ne
pair each during Earch F
Septem(er respectively every
year"
>4
-rainees *ho *or&ed
more than one year
Sa%ety shoes . pair p"a" During Earch every year
>= Casual *or&men Sa%ety shoes
5ne pair p"a"
N =>@ o%
cost
5nly to the *or&men *or&ing in
production) such as shell
moulding) melting decoring and
%ettling sections during Earch o%
every year" =>@ cost should (e
recovered %rom their *ages in 0
installments"
>: #or all employees Sa%ety shoes
'n case
damaged
*hile
*or&ing
Shall (e issued . ne* pair o%
shoes at %ree o% cost a%ter ensuring
the same"
>? Contract la(our Sa%ety shoes)
Sa%ety Helmets
and Sa%ety
-he respective contractor shall
arrange to issue the same) *ithout
%ail"
,A,ASA, PATIL Pa"e .8
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
<oggles and
other sa%ety
equipments
>9
#or all category o%
employees H 7E/ '-'Gs)
-rainees and Sta%%
Sa%ety Helmet
5nce in a
%our years --
. 2o"
During the month o% Earch o%
every %our years once
>A -D5- -D5- -D5-
2e* helmets can (e issued at %ree
o% cost" 'n case Helmet is
damaged during the *or& *ithout
involving the employee
negligence"
.>
Employees *ho are
*or&ing in ha6ardous
area irrespective o%
category"
Sa%ety Helmet
5nce in %our
years - . 2o)
7ill (e issued along *ith
others"
'i
#or all category o%
employees HE!cept
contract la(orers/
Sa%ety
Equipments
H<oggles) Eouth-
Eas&) respirators)
hand gloves etc")
s per
requirement
Shall (e provided as decided
(y sa%ety department" 't can (e
replaced as and *hen required"
.0 #or all sta%% Sa%ety shoes . pair p"a"
#or administrative sta%% and
H5DGS amount *ill (e decided
(y the management %rom time
to time) i% shoes not issued"
.1
#or all sta%% mem(ers
including trainees
Sa%ety shoes)
Helmets
5nce in 4
years - . 2o"
During Earch month once in a
4 years
.4
#or all production sta%%
and sta%% supporting
production activity"
Hal%-Sleeve
sa%ety apron
. pair p"a"
During Earch month o% every
year"
,A,ASA, PATIL Pa"e .9
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
.=
#or all employees *ho
are *or&ing in cold (o!
section
Eechanical
Respirators and
sa%ety goggles
. 2o" p"a"
Can (e replaced as and *hen
required
.:
#or all *or&ing #ettling
F D"<" Room
Ear plugs . pair p"a" - D5 -
.? #or all electricians
Electrical shoes
H2ail less F
electrical shoc&
proo%/
. pair p"a" Earch month o% every year"
.9
Shell Eoulding
*or&men H7E/
s sector hand
gloves H.4; si6es/
. pair p"a"
Can (e replaced as and *hen
required"
.A #or all electricians
Electrical hand
gloves
=-9 pair per
department
#or replacing me hand gloves
0>
#or all category o%
employees
,eather hand
gloves
. pair p"a"
s decided (y H"5"DGs) F
H"R"D" Dept"
0.
#or the employees *ho
are *or&ing at height
Sa%ety (elts shall
(e provided
Einimum =
sets o%
sa%ety (elts
Replacement can (e decided
(y the H"5"D"Gs F H"R"D"
Dept"
-ypes o% +0+ (uying (ehavior:
,A,ASA, PATIL Pa"e /;
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
?R+%(i!e #e@)%*: -he organi6ation has (ought this product (e%ore and
has already esta(lished suppliers" -hese products may (e relatively
lo*-ris&) %requently supplies such as o%%ice stationer"
?M+$i:ie$ #e@)%*: 'mplies that there is some e!perience o% (uying this
product) (ut there is also a need to revie* current practice" Perhaps
there have (een signi%icant technological developments since the
organi6ation last purchased this item) or a %eeling that the current
supplier is not the (est) or a desire to renegotiate the parameters o% the
purchase"
?Ne= (asB )%*: 's the most comple! category" -he organi6ation has no
previous e!perience o% and *ide participation in the process)
especially *here it involves a high-ris& C high-cost product this &ind
o% purchase) and there%ore needs a great deal o% in%ormation"
Characteristics o% +0+ mar&ets:
,A,ASA, PATIL Pa"e /-
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
?Na(%#e +: $ema!$
? Derived demand
? Ioint demand
? 'nelastic demand
? S(#%&(%#e +: $ema!$
? 'ndustrial concentration
? <eographic concentration
?,%*i!" p#+&ess &+mpleFi(*
? +0+ purchasing policy
? Pro%essional purchasing
? <roup decision-ma&ing
? Purchase signi%icance
?,%*e#Gselle# #ela(i+!s'ips
,A,ASA, PATIL Pa"e /.
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
P'ases i! ('e )%*i!" p#+&ess:
PHSE -.: nticipation or Recognition o% a pro(lem
PHSE -0: Determination o% the characteristics and quantity o% the
needed item
PHSE -1: Description o% the characteristics and quantity o% the needed
item
PHSE -4: search %or the quali%ication o% potential sources
PHSE -=: cquisition and nalysis o% Proposals
PHSE -:: Evaluation o% proposals and selection o% suppliers
PHSE- ?: Selection o% order routine
PHSE -9: Per%ormance %eed(ac& and evaluation
,A,ASA, PATIL Pa"e //
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
Di::e#e!&es )e(=ee! ,., ma#Be( a!$ &+!s%me# ma#Be(s:
,., &%s(+me#s +
e!A%s%all* . . . C+!s%me# &%s(+me#s +e!A%s%all* ? Purchase goods and services that meet
speci%ic (usiness needs
? Purchase goods and services to meet
individual or %amily needs
? 2eed emphasis on economic (ene%its ? 2eed emphasis on psychological (ene%its
? 3se %ormali6ed) lengthy purchasing
policies and processes
? +uy on impulse or *ith minimal
processes
? 'nvolve large groups in purchasing
Decisions
? Purchase as individuals or as a %amily
unit
? +uy large quantities and (uy
in%requently
? +uy small quantities and (uy %requently
? EFpe#ie!&e ma?+# p#+)lems i: s%ppl*
:ails
? EFpe#ie!&e mi!+# i##i(a(i+! i: s%ppl*
:ails
? #ind s*itching to another supplier
di%%icult
? #ind s*itching to another supplier easy
? 2egotiate on price ? ccept the stated price
? Purchase direct %rom suppliers ? Purchase %rom intermediaries
? Purchase direct %rom suppliers ? Iusti%y an emphasis on mass media
Communication
,A,ASA, PATIL Pa"e /0
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
DMUs (decision making units) in BB markets:
? 3ser
3sers are the people *ho *ill use the end product) %or e!ample an operator *ho *ill use
production machinery) or a secretary *ho *ill use a *ord processor" -hese people may
trigger the purchasing process through reporting a need) and may also (e consulted in
setting the speci%ications %or *hatever is to (e (ought"
? 'n%luencers
'n%luencers can a%%ect the outcome o% the decision-ma&ing process through their in%luence
on others" 'n%luence could stem %ormally %rom e!pertise) %or e!ample the advice o% an
accountant on the return on investment %rom a piece o% capital machinery or that o% an
engineer on a supplierMs technical capa(ility) or it could (e an in%ormal) personal
in%luence" -heir prime role is in speci%ication) in%ormation gathering and assessment"
? Deciders
Deciders have the %ormal or in%ormal authority to ma&e the decision" #or routine re-(uys)
this may (e the purchasing o%%icer or someone in a %unctional role) (ut organi6ational
structures may dictate that the %inal decision rests *ith top management) *ho are %ed
in%ormation and recommendations %rom (elo*" -he deciderMs role and level o%
involvement) there%ore) *ill vary *idely) depending on individual circumstances"
? +uyers
+uyers have the authority to select and negotiate *ith suppliers" +uyers *ith di%%erent
level so % or seniority may e!ist to handle di%%erent types o% transaction) %or e!ample a
routine re-(uy could (e handled (y a relatively $unior clerical *or&er) *hereas the high-
cost) high-ris& ne* (uy might require a senior purchasing manager o% many yearsM
e!perience" 7here devolved (udgeting e!ists) the (uyer may not (elong to a %ormal
purchasing department at all) (ut (e someone *ho also has a %unctional role such as RFD
or mar&eting"
? <ate&eepers
<ate&eepers have some control over the decision-ma&ing process) in that they can control
the %lo* o% in%ormation (y denying access to &ey mem(ers o% the (uying centre" #or
e!ample) a secretary or purchasing manager may prevent a sales representative %rom
tal&ing directly to an e!ecutive) or intercept (rochures and mail shots and thro* them in
,A,ASA, PATIL Pa"e /1
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
the *astepaper (as&et (e%ore they reach the decision ma&er" -echnical sta%% can also act
as gate&eepers in the *ay in *hich they choose to gather) present and interpret
in%ormation to other mem(ers o% the (uying centre"
ENQUIRY NOTICE DOCUMENT:
Date:
D/M/YEAR
Company
Name
Contact
Person
Address
Designatio
n
Phone No.
Address
Fax No.
Deliery Address
!e "o#ld li$e to hae yo#r %#ote as per details gien &elo":
'.no
Part No (
Description
Estimated
!t/Pc
Ann#al
Re%#irement
)arget
Price
*i+
any,
Deliery
Condition
Deliery )erms
-.
/.
0.
Remar$s1 i+ any
,A,ASA, PATIL Pa"e /4
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
Submit Enquiry
Reset
Design of the study:
Statement of te pro!"em#
Suppliers per%ormance is very essential %or e%%icient per%ormance o% the company i"e"-
Supplier should supply quality ra* materials at the right time and at the competitive
rates) only then the organi6ation can survive in todayGs competitive environment "-hus
analysis o% the per%ormance o% the suppliers is very essential %or the organi6ation"
-his pro$ect aims at analy6ing the per%ormance o% the suppliers o% sho& 'ron
7or&s"
O!$e%ti&es of te study:
./ #inding the types o% (uying situations"
0/ #inding the %actors those in%luence on (uyers"
1/ #inding *hich department ma&es the ma$or (uying decision process"
4/ #inding the ma$or reason %or changing the previous suppliers"
,A,ASA, PATIL Pa"e /5
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
Research methodology:
METHODOLOGY:
?Primary Data:
- Questionnaire
- E-mail and pilot survey
MARKET REASERCH:
• Secondary Data:
- Data collection method
• Hypothesis analysis:
- Chi-square test
LIMITATIONS OF THE STUDY:
Sample si6e: 44 samples
Sampling area: lready e!isting industrial
customers"
,A,ASA, PATIL Pa"e /8
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
2,4S'S
2D
#'2D'2<S
,A,ASA, PATIL Pa"e /9
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
'o( many years are into te !usiness)
3 !" !" !"
#$ 3"! 3"! 4%!%
#% 34!# 34!# $&!%
& '(!% '(!% #((!(
44 #((!( #((!(
)elo* # year
# to % yrs
% to #( yrs
+bo,e #( yrs
-otal
.alid
/requency Percent .alid Percent
0umulati,e
Percent
I!(e#p#e(a(i+!:
#rom graph come to &no* that a(out 1A@ o% the companies) since
,A,ASA, PATIL Pa"e 0;
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
%rom = yrs they are into the (usiness" 14@ o% the companies %rom
=-.> yrs and 0.@ o% the companies %rom more than .>yrs"
Is your %ompanies pur%asin* of trasmission and"ed !y your unit)
3' $'!$ $'!$ $'!$
#' '$!3 '$!3 #((!(
44 #((!( #((!(
1es
2o
-otal
.alid
/requency Percent .alid Percent
0umulati,e
Percent
'$!33
$'!$3
2o
1es
I!(e#p#e(a(i+!:
,A,ASA, PATIL Pa"e 0-
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
-he graph sho*s that a(out ?1@ o% the companies purchasing o%
transmission is handled (y the unit itsel% and 0?@ o% the
companies purchasing o% transmission is handled (y the main unit"
Do you require any of te fo""o(in* spares)
#3! #3! #3!
" #"!' #"!' 3#!"
$ #%!& #%!& 4$!$
## '%!( '%!( $'!$
#3! #3! "!4
#3! #3! #((!(
44 #((!( #((!(
trasmission cases
clutch housing
)ra4e drums
0ylinder bloc4s
0ylinder heads
Hydrolic lift body
-otal
.alid
/requency Percent .alid Percent
0umulati,e
Percent
#3!3
#3!3
'%!(3 #%!&3
#"!'3
#3!3
Hydrolic lift body
0ylinder heads
0ylinder bloc4s )ra4e drums
clutch housing
trasmission cases
I!(e#p#e(a(i+!:
,A,ASA, PATIL Pa"e 0.
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
#rom the graph *e can interpret that a(out 0=@ o% the companies
purchase cylinder (loc&s) .9@ o% the companies purchase clutch
housings) .
o% the companies purchase (ra&e drums) %ollo*ed(y .4@ o% the companies purchase cylinder heads) hydrolic li%t
(ody and trasmission cases"
From o( many years are you !een asso%iated (it %ompany tat you are
present"y pur%asin*)
" #"!' #"!' #"!'
#' '$!3 '$!3 4%!%
" #"!' #"!' 3!
# 3!4 3!4 #((!(
44 #((!( #((!(
)elo* # year
# to % years
% to #( years
+bo,e #( years
-otal
.alid
/requency Percent .alid Percent
0umulati,e
Percent
+bo,e #( years % to #( years # to % years )elo* # year
/
r
e
q
u
e
n
c
y
'(
#(
(
,A,ASA, PATIL Pa"e 0/
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
I!(e#p#e(a(i+!:
#rom the graph come to &no* that a(out 1
o% the companiessince %rom more than .> yrs they purchasing spares %rom asho&
iron)0?@ companies %rom .-=yrs and .A@ companies %rom =-.>
yrs"
(at initiates you to %an*e te supp"iers)
#" 4(!& 4(!& 4(!&
## '%!( '%!( %!&
#( ''!$ ''!$ ""!
% ##!4 ##!4 #((!(
44 #((!( #((!(
Dissatisfaction
product quality
Deli,ery capabilities
price
-otal
.alid
/requency Percent .alid Percent
0umulati,e
Percent
##!43
''!$3
'%!(3
4(!&3
price
Deli,ery capabilitie
product quality
Dissatisfaction
I!(e#p#e(a(i+!:
,A,ASA, PATIL Pa"e 00
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
-he a(ove graph sho*s that a(out 4.@ o% the companies change
their previous suppliers due to dissatis%action)0=@ o% the
companies change their previous suppliers due to product duality )
01@ companies change their previous suppliers due to lo*
delivery capa(ilities and ..@ o% the companies change their
previous suppliers due to prices o% the di%%erent automotive and
engine spares"
(o is te forma" autority to se"e%t te supp"iers)
'# 4$!$ 4$!$ 4$!$
$ #%!& #%!& 3!
# 3!4 3!4 #((!(
44 #((!( #((!(
purchase dept!
Engg!dept!
5anagement
-otal
.alid
/requency Percent .alid Percent
0umulati,e
Percent
3!43
#%!&3
4$!$3
5anagement
Engg!dept!
purchase dept!
,A,ASA, PATIL Pa"e 01
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
I!(e#p#e(a(i+!:
#rom the graph *e can interprete that a(out 49@ o% companies
selection o% suppliers and purchase o% spare parts is done (y
purchase department %ollo*ed 1
o% the companies (ymanagement and .
o% the companies (y engineeringdepartment"
+at %omponents do you prefer (i"e ma,in* fina" !uyin* de%ision)
# 3!4 3!4 3!4
'" 3! 3! #((!(
44 #((!( #((!(
/inancing terms
6ong term agreements
-otal
.alid
/requency Percent .alid Percent
0umulati,e
Percent
,A,ASA, PATIL Pa"e 04
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
3!3
3!43
6ong term agreements
/inancing terms
I!(e#p#e(a(i+!:
#rom the a(ove graph come to &no* that :4@ o% the companies
*ere consider the component li&e long term agreements (e%ore
ma&ing the %inal purchasingC (uying decision and 1
o% thecompanies *ere consider the %inancial terms as the (ase %or
ma&ing the %inal purchasingC (uying decision"
,A,ASA, PATIL Pa"e 05
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
'o( do you e&a"uate your !uyin* de%ision after te pur%ase)
# 3!4 4(!( 4(!(
#3 '&!% 3'!% $'!%
## '%!( '$!% #((!(
4( &(!& #((!(
4 &!#
44 #((!(
Reliability of deli,ery
date promised
7rder cycle time
Deli,ery capability
-otal
.alid
System 5issing
-otal
/requency Percent .alid Percent
0umulati,e
Percent
&!#3
'%!(3
'&!%3
3!43
5issing
Deli,ery capability
7rder cycle time
Reliability of deli,
I!(e#p#e(a(i+!:
#rom the graph *e can interprete that a(out 41@ o% the companies
evaluate their purchase decision on the (asis o% relia(ility o% the
delivery automotive and engine spares) 10@ o% the companies
evaluate their purchase decision on the (asis o% order cycle time
and 0=@ o% the companies evaluate their purchase decision on the
,A,ASA, PATIL Pa"e 08
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
(asis o% delivery capa(ility o% the automotive and engine spares"
'Y-OT'ESIS TESTIN.:
./ P#i&e a!$ Deli>e#* +: spa#es
H
Price and deli,ery of spares are independent on eachother!
H#: Price and deli,ery of spares are dependent on each
other!
Ci/Square Tests
.alue d!f +symp!
Sig!8'-
sided9
E:act Sig!
8'-sided9
E:act Sig!
8#-sided9
Pearson 0hi-
Square
#!4"$ !''3
0ontinuity
0orrection
!"# # !4(&
6i4elihood Ratio #!4$$ # !''4
/isher;s E:act
-est
!'' !'(4
6inear-by-6inear
+ssociation
#!4%3 # !''"
2 of .alid 0ases 44
I!(e#p#e(a(i+!:
/rom the chisquare test come to 4no* that< the calculated
,alue 8#!4"$9 is greater than the e
ected ,alue 8!(%9!so< *ere=ect the H#! i!e< Price and deli,ery of spares are dependent
,A,ASA, PATIL Pa"e 09
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
on each other!and accept the H(! i!e< Price and deli,ery of
spares are independent on each other!
.7 O! (ime $eli>e#* a!$ se#>i&e &apa)ili(*:
H>: 5n time delivery o% products and a%ter service
capa(ilities are
'ndependent on each other"
H.: 5n time delivery o% products and a%ter service
capa(ilities are
dependent on each other"
Ci/Square Tests
.alue d!f +symp!
Sig! 8'-
sided9
E:act Sig!
8'-sided9
E:act Sig!
8#-sided9
Pearson 0hi-
Square
3!443 # !(4
0ontinuity
0orrection
'!#4( # !#43
6i4elihood Ratio 3!%'' # !(#
/isher;s E:act
-est
!##% !($'
6inear-by-6inear
+ssociation
3!34 # !($
2 of .alid
0ases
44
I!(e#p#e(a(i+!:
#rom the chisquare test come to &no* that) the calculated
,A,ASA, PATIL Pa"e 1;
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
value H>">:/ is greater than the e!pected value H">=/"so) *e
re$ect the H." i"e" 5n time delivery o% products and a%ter
service capa(ilities are dependent on each other"and accept
the H>" i"e) 5n time delivery o% products and a%ter service
capa(ilities are independent on each other"
/>2D>2?S
,A,ASA, PATIL Pa"e 1-
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
#indings:
• #rom the study it is clear that the p%#&'ase $epa#(me!( is
the ma$or in%luencer and also the decision ma&er o% the
'ndustrial (uying) so the relationship *ith the mem(ers o% the
management *ill yield (etter sales %or the company" Hence
this leads the (uyer to (e +rand ,oyal"
• +y the study conducted it is concluded that the companies are
into more o% s(#ai"'( Re)%* *hich means the 'ndustrial
(uyers are (rand loyal"
• Eost o% the 3sers o% the spares are automotive and engine
manu%acturing industries) 3sers may e!ert %rom a minor to a
very signi%icant degree o% in%luence on the purchasing
decision" -hey may initiate the purchasing process and play
an important role in de%ining purchasing speci%ications"
,A,ASA, PATIL Pa"e 1.
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
• 'ndustrial (uyers concentrate more on Price) Product quality
and Delivery (ut some o% the (ul& (uyers also include credit
period as an average important %actor %or (uying"
Suggestions:
?-he company increase its credit period the list of the
consumers *ill also increase!
?0ompany should target the small scale auto body building
industries also< through this they can increase their sales
turno,er!
?-here is more demand for the company castings so that
company should increase its production rate!
,A,ASA, PATIL Pa"e 1/
ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
CONCLUSION
#rom the study it is clear that the p%#&'ase $epa#(me!( is the
ma$or in%luencer and also the decision ma&er o% the 'ndustrial
(uying) so the relationship *ith the mem(ers o% the
management *ill yield (etter sales %or the company" Hence this
leads the (uyer to (e +rand ,oyal" -he companies are into more
o% s(#ai"'( Re)%* *hich means the 'ndustrial (uyers are (rand
loyal"
'ndustrial (uyers concentrate more on Price) Product quality and
Delivery (ut some o% the (ul& (uyers also include credit period
as an average important %actor %or (uying"
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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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A!!eF%#e
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Q3ES-'522'RE
Dear sirCmadam)
." 2ame o% the concern : -------------------------------
0" 2ature o% the (usiness: ------------------------------
1" Since %rom ho* many years you are into the (usinessO
+elo* . yr .-= yrs =-.> yrs .> and a(ove
4" 's your company geographically located to di%%erent locationsO
4ES 25
=" 7hether your companyMs purchases handled (y your unitO 5r head
unitO
4ES 25
:" Do you have any suppliers (e%oreO
4ES 25
?" 7hat initiates you to change the suppliersO
Dissatis%action Price
Product quality on time delivery
9" Do you require any o% the %ollo*ing sparesO Hi% yes speci%y/
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4ES 25
-ransmission cases Clutch housings +ra&e drums
Cylinder (loc&s Cylinder heads Hydraulic li%t (ody
Hu( %ront *heel
A" #rom ho* many years are you (een associated *ith the company that
you are presently purchasingO
+elo* . yr .-= yrs =-.> yrs .> and a(ove
.>"re your present supplies meeting your speci%ications
4ES 25
.." Ran& the %ollo*ing attri(utes %rom . to =" you consider *hile
selecting the supplier"H.-most important ) =- least important/
Price Product quality
a" Delivery Service capa(ilities
(" Credit period
.0"7ho is the %ormal authority to select the suppliersO
a" Purchase department Eanagement
Engineering dept" others
.1" 7hat components do you pre%er *hile ma&ing %inal (uying decisionO
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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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#inancing terms ,ong term agreements
.4"Ho* do you evaluate your decision a%ter the purchaseO
Relia(ility o% delivery date promised
5rder cycle time
Delivery capa(ility
.="7hat is your average monthly requirement o% the spare partsO
a" -ransmission cases Clutch housings +ra&e drums
Cylinder (loc&s Cylinder heads Hydraulic li%t (ody
Hu( %ront *heel
Speci%y quantity requirement H in @ /-------------------------------
----------------H2D 453-----------
,I,LIOGRAPHY:
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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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+55DS:
• 'ndustrial mar&eting K +y) Hutt and Spec"
• 'ndustrial mar&eting K +y) Reader and Reader
• WE, SITES:
• 7**" sho& irons"com
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doc_865086689.doc