Ten Organizational Design Models to align structure and operations to busines...
Analyzing the performance of the suppliers of aiw @ mba project report marketing
1. 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 size: 44 samples
Sampling area: Already existing industrial
customers.
Findings:
From the study it is clear that the purchase department is the major
influencer and also the decision maker of the Industrial buying, so the
relationship with the members of the management will yield better sales for
the company. Hence this leads the buyer to be Brand Loyal. The companies
are into more of straight Rebuy which means the Industrial buyers are
brand loyal.
Industrial buyers concentrate more on Price, Product quality and
Delivery but some of the bulk buyers also include credit period as an
average important factor for buying.
Suggestions:
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1) The company increase its credit period the list of the consumers will also
increase.
2) Company should target the small scale auto body building industries also,
through this they can increase their sales turnover.
3) There is more demand for the company castings so that company should
increase its production rate.
INDUSTRY PROFILE
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INDUSTRY PROFILE
MANUFACTURING OF CASTINGS IN INDIA:
The foundry sector is well recognized as one of the supporting industries for the
machinery and the Automobile industry. With the recent remarkable economic
development in Asia, the production of castings as part of process materials in every
engineering industry has been increased; that of the Asian area is the highest in the world.
However the production of castings per capita is only 8.2 kg which is lower than world
average than 13.6, this fact shows that the production of castings will surely to increase
along with an economic growth not only in the Asian area, but also in developing
countries.
PRODUCTION OF CAST IRON AND ENERGY CONSUMPTION:
The term Cast Iron is a general term for "Grey cast iron" and "Spheroid graphite
cast iron castings". Since cast iron is easy to manufacture and its manufacturing cost is
low and besides it has various physical and chemical properties, it is used in large amount
in metal products in almost all areas of industries. The annual production of cast iron
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castings in the world is over 50 million tons. Grey iron castings are differentiated from
good cast ability abrasion resistance, damping capacity, corrosion resistance, machining
ability etc., they have been produced the largest among all sorts of castings. It forms
about 75% of the total production of cast iron. Spheroidal graphite cast iron is superior to
Grey cast iron, statistically it is usually excluded from cast iron. Since malleable iron
castings has to be treated in the process of its manufacturing for long hours at high
temperature in order to improve the mechanical parts, a large amount is to be consumed;
the rate of energy consumed per tone of malleable cast iron is four or more times of cast
iron. Therefore malleable cast iron is replaced with spheroidal graphite cast iron and its
production has remarkably decreased.
COMPANY PROFILE
ABOUT US
Ashok Iron Works Pvt. Ltd was established during the year 1974 with a
commitment to offer world-class quality castings. Over the years, the company has
emerged as a industrial conglomerate. Today it is being ranked as one of the top 5
foundries in India. The company has two large foundries and six machining division to
support the activities. Under the expansion program, one of the biggest foundries is under
commissioning stage. The steady and phenomenal growth of Ashok Iron Group over a
period of 25 years is not merely an incident, but it is a result of the determination and
foresight of founders
Shri Ashok. S. Humbarwadi
Shri Vasudev. P. Hanji
Since its inception the vision of Ashok Iron Group is to ensure dominant presence
in the core sector industries which are critical for a growing economy in India and is
enhancing and maintaining its strength that it is one of the best global scenario of foundry
business. This requires building an organization. Committed to the pursuit of excellence
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and committed to knowledge integration and continuous learning /up gradation
/improvement. The activities of the company are oriented around the axis of innovation
world class technology and continuous improvement in capacity and quality.
AIW, has always firm believer in the philosophy to achieve excellence in the field
of foundry, Today, AIW is one of the largest jobbing foundries grey cast iron required for
automobile industry, farm equipment industry and diesel engines industry. Over the last 3
decade since 1974 the Group has established the record of successful evolution. As a
Pioneering vision and Powerful drive to change ahead of India finest and most integrated
jobbing foundries. Located at Belgaum 500 Km South of Mumbai, and 150 Km from
Goa, The AIW Group Has Foundries and Machine Shop that add value, by machining
over 60% of the casting manufactured to fully finished condition.
As we enter the new millennium, the world has woken to the reality of immutable
change, where world class performance, driven by a powerful vision, truly speaks the
language of quality, technology, and service everyday, were adding value by anticipating
change marks the winners and leaves those who fear change in the pages of a fast
forgotten history.
We, at AIW, have always firmly believed in this philosophy to achieve excellence in the
field of foundry industry. Today, AIW is one of the largest jobbing foundries producing
Grey Iron Castings required for Automobile. Farm Equipment Sector & Diesel Engines
Industry.
Over the last three decades since 1974, when the Group was established, the saga
of the AIW Group is a record of successful evolution. As pioneering vision and powerful
drive to change ahead of the times, has pushed the Group to become one of India's finest
and most integrated jobbing foundries. Located at Belgaum, 500 Kilometers south of
Mumbai, and 150 Kilometers from Goa, the AIW Group has foundries and machine
shops that add value, by machining over 60% of the castings manufactured to fully
finished condition.
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In fact, AIW is one of the very few foundries, which is QS-9000 certified. Driven
by a team, fully committed to technological and service excellence, the AIW Group is all
set to continue its ongoing quest for excellence.
The Group's Vision, Mission and Quality Policy truly reflect Group's commitment
to become one of the best foundries Group in the global arena.
VISION:
We are committed to serve the interests of all our stakeholders by being and
maintaining our position at the top in India and be one of the best in the global scenario
of foundry business with an exceptional moral and business ethics.
MISSION:
To develop expertise in technology of machining of various components to
support the Foundry business and be able to be a global supplier of finished components.
QUALITY POLICY:
To aim at our customer's delight by exceeding his expectations through an
exceptional blend of quality-cost-delivery of our products and service that we provide.
THE COMPANY
Ashok Iron Works Pvt. Ltd is established during the year 1974 with a
commitment to offer world class Quality castings. Over years, the company has increased
its production with a modest capacity of 50 MT per month to 1500 MT per months and
emerged as a leading Industrial conglomerate. Today it is ranked as one of the top 5
jobbing Foundries in India. The company is having two large foundries and six
Machinery divisions to support the activities.
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MAIN MANUFACTURING ACTIVITIES
Producing of castings weighing from 20 Kgs to 3000 Kgs.
Machining of castings, components / crank hafts, selected LC Engine components
and sub assemblies, for diesel engines, Tractors and Automobile Industries in
India and around the world.
STRENGTHS OF THE COMPANY
Supply of components in fully machined condition, there by saving substantial
total cost of ownership,
In-house capability of building, machines, jigs and fitness required for machining
of components.
Highly qualified trained workforce.
PLANT PROFILE
S
L.
DETAILS PLANT I PLANT II
N
o.
689/1, Udyambag Machhe Industrial Estate,
1 Location of the plant
Belgaum Belgaum
2 Year of Establishment 1974 1991
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689/1, Udyambag
3 Regd. Office 689/1, udyambag Belgaum
Belgaum
Manpower capacity as per the Factories
4 500 250
500 250 Act.
5 Built-up area ( Sq.Mtr ) 6633 18600
6 INFRASTRUCTURE OF THE PLANT
A Sand making Green sand Resin bonded sand
Oil cores, shell cores & Oil cores, shell cores &
B Core making cold box cores, no Bake cold box core, no bake
cores etc cores etc.
Jolts & squeezing Compaction table, no bake
C Mould making
machines sand
Induction furnaces
Medium frequency
(medium Frequency)
D Melting Induction furnace -
channel type-5 nos cupola
2 Nos
furnaces- 3 nos
BMD shot blasting BMD shot blasting
E Fettling
machines machines
Labs with all facilities
Lab with all testing
F Facilities including hilger make
facilities
spectrometer.
G Melting capacity 85-100 tons per day 40 tons per day
H Casting range 64-200 kgs per piece 30-3000 kgs per piece
I Moulding Box size ( Maximum) 1219*812*304 mm 2775*1400*680mm
PRODUCT PROFILE CUSTOMER WISE (FOUNDRIES)
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Sl. No Customer Plant -1 Plant –II
Wath pump costing fly
wheels fly wheel housings, Cylinder heads & cylinder
1 Cummins India
hotel exchangers. Gears, blocks
case cover etc
Automobile drums.
2 Ashok Leyland -
Housing, fly wheels etc
Tran case, center housing
3 Tafe hubs, lift cover Brake -
Drums etc.
4 L&T Suction pumps castings -
5 M&M Transmission case -
6 Simpson Blocks & Bearing caps Cylinder heads
Differential housings,
7 Escorts hydrantic lift cover, gear Cylinder heads.
box etc.
8 D.L.W - Cylinder heads
PRODUCTS:
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Components for Diesel Engine Industry:
Cylinder Blocks, Cylinder Heads, Flywheels, Flywheel Housings from 20 kgs. To 3000
Kgs / per Piece., Crankshaft Machining, 3 cylinder to 16 Cylinder from 70 to 1000
kgs/pc Water Pumps, Oil Pump Assemblies.
Components for Farm Equipment Industry:
Transmission Cases, Clutch Housings, Brake Drums, Cylinder Blocks, Cylinder Heads,
Hydraulic Lift Body, Hub Front Wheel from 10 kgs to 200 kgs / pc.
Crankshaft machining, 3 cylinders and 4 cylinders.
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MAIN FEATURES OF THE COMPANY
One of the top 5 foundries in growing at a faster rate and India's best-managed foundry
1. Practices team work in business
2. Every one has a opportunity to grow
3. Proactive in house training and education
4. ISO 9000 Company.
5. 5.Takes into consideration workers suggestion
6. Implementation of kaizen principles
7. Implementation of 5s tools
AWARDS AND ACHIVEMENTS
One of the few Qs-9000 certified foundries by TUV.
Certified by Cummins, U.S.A in 1995 for supply in "Ship to use condition'".
Certified by Lloyds Register of Shipping, London in 1995.
Regd. as World Source for Cummins Engine Company. U.S.A.
QUALITY OBJECTIVES
To remain customer focused by providing the designed Quality. Cost and
Delivery through manufacturing excellence.
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To adopt continuous improvement in all organizational activities to meet dynamic
Requirements of customers.
To involve and empower all employees across the organization.
MANUFACTURING
Computer numerical machines being used for accuracy
Rotation of jobs for multi skilled
Pre planned activities are being scheduled
Supervisor for quality check and inspection
Minimum rejection
Expert technical staff
TECHNICAL
Well equipped research and development center
Sophisticated and necessary testing rigs
Qualified staff ADMINISTRATION
Fully computerized information and administrative system
Effective, smooth, and minimum paperwork MARKETING Export oriented
Competitive priced Delivered at the right lime
Fast response to customer queries
More value added at the same price Experienced marketing executives.
VARIOUS DEPARTMENTS
Administrative department
Production department
Purchase department
Stores department
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Finance department
Marketing department and
Personnel & HRD department
HUMAN RESOURCE MANAGEMENT
HRD in an organization functions to improve the attitude of employees to achieve
the customer satisfaction always.
Over the past decade the business scenario has totally changed because of
customer requirements are changing rapidly. The quality, cost and delivery requirements
are very stringent from the customer point of view. Customer wants changes and
improvements very fast for which any organization should be well equipped in today's
tough competitive world to work towards customer's changing needs from time to time.
The process of development of employees in Ashok Iron Group considered as one
key activity for improving the skills, knowledge. Attitude and performance on continuous
basis. In line with the organizational objectives. Training Manual is being framed on
incorporated in the manual from time to time in addition to annual training plan.
Employees subjected to counseling process for improving morale, discipline and
Employees performance is assessed annually through Appraisal system for rewarding
increments.
ORGANIZATION CHART
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PLANT-I
Asst. HRD SECURITY
Unit HRD OFFICER
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CHAIRMAN
EXECUTIVE
DIRECTOR
HEAD GROUP HRD
MANAGER MANAGER
TRAINING SAFETY
PLANT-II JE , SE & PE
Unit HRD
Unit HRD in M&A
Divn. CH Casting M/
Charge
& B M/C. C Divn.
Divn. Unit Unit HRD
HRD In In charge
Asst. HRD Asst. HRD charge
MAN POWER PLANNING
l. It is the policy of the company to make all manpower allocation on the basis of
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projections made through the Approved Annual Manpower Plan (AAMP). The company
believes that only planning and development activities can achieve ensuring optimum
utilization of HRs. It is therefore, essential that all the personal activities such as
Recruitment, Transfers, Career and Succession planning should be confirmed to the
Approved Annual Manpower Plan (AAMP). The company excepts all departments to
confirm strictly to the norms and procedures of the manpower laid down by the
management
2. It shall be the joint responsibility of the HOD'S and Unit HRD In-charges to prepare
the manpower plan in conformity with production norms. Further, approval shall be
obtained from executive Director head group HRD.
3. Procedure:
All recruitments must be in line with the approved organization chart and
sanctioned strength.
Whenever vacancy arises due to Resignation, Superannuation, Promotion etc or
for few positions, HRD dept, will initiate the selection procedure in consultation
with concerned functional head.
4. Sources of Recruitment:
Existing HRD data bank.
Within the group companies.
Consultants or placement agencies,
Through personal contacts.
If suitable candidates are not available through above sources, then through
advertisements in suitable news papers.
According to the Provisions of Employment Exchange Act, the HRD Dept. will notify
the same to the concerned employment Exchange.
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5. Recruitment Procedure:
a. Experienced candidates: For experienced candidates, the salary fixation and other
perks for each position shall be as per their pay scale .However, individual fixation shall
be made depending upon his qualification, experience, job requirements etc.
b. Fresh candidates - B.E/ Diploma/ Graduates/ PGs:
The period of training for fresh candidates shall be one year
Stipend during the training period is as per company policy.
The successful candidates as per Regularization Criteria will be absorbed in
regular scale.
C. For Workmen:
For fresh candidates, the duration of training shall be 18 months. :
Stipend during the training period is as per the company policy.
Subsequently, additional benefits as decided by the Management will be
extended during the course of training period.
Once the training period is completed successfully, the trainees shall be absorbed
in the workmen category as per The Minimum Wages Act. The Regularization
criteria shall be based upon performance, attendance etc.
6. Pay and Allowances:
Classification of the employees is as per the annexure I &: II enclosed herewith.
The employees placed in the scale based on experience, qualification, nature. of
work etc. depending upon this, basic is fixed in the respective scales
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7.Travel Reimbursement for Attending Interview:
Local candidates shall not be entitled for reimbursement of conveyance expenses.
Outstation candidates will be reimbursed To & Fro fare by the shortest route on
production of proof for attending the interview as per eligibility.
The candidates called for interview for senior positions i.e. for Managers and
above shall be paid first / second class train / bus fare.
For all other positions second class train / bus fare shall be applicable.
8. Interview Arrangements:
The HRD-Dept. has to ensure the definite Venue, Date, and Time of the interview
adolescent inform the same to the candidates and interviewing committee.
Interview call letters to be dispatched well in advance, at least 10 days clear
notice. In case of emergency requirement. HRD-dept, may call the candidates
with shortest notice either by phone message or telegram.
It shall be the responsibility of HRD- Dept. to arrange to receive the candidates on
arrival at the location. HRD-Dept. is making quick and efficient settlement of
travel claims after verification once the interview completed.
The HRD-Dept. shall take care of the hospitality of the candidates during the
course of interviews.
9. REFERENCE CHECKS:
The following procedure will be adopted for obtaining reference check
Two reference check by the HRD-Dept,
All the information is trade and commerce be maintained under strict
Confidence.
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10.APPOINTMENT AUTHORITY:
The Executive Director is the Approving authority for all the appointments.
The appointment orders up to the level of Sr.Manager shall be issued by
Dy.General Manager- HRD.
All other orders for Asst.GM and above positions shall be by Executive Director,
however all the papers relating to the issue of orders shall be prepared and
monitored by DGM- HRD.
11.JOINING FORMALITIES:
Joining report to be obtained from the candidate by the HRD-Dept.
Copies of the certificates, testimonials, latest passport size photograph, leaving
certificate from the previous employer, to be obtained by the HRD- Dept.
Nomination under PF and Gratuity, ESI wherever applicable is to be obtained.
Medical check-up by the medical officer by the company is to be arranged,
HRD- Dept. shall issue Identity card to the new employees within 7 days from the
date of his/her joining.
12.INDUCTION:
Whenever employee joins organization, it is the responsibility of the HRD- Dept.
to take appropriate means for arranging Induction Program.
This Induction program is to help the new employee to become aware and
understand the company, its structure, products, general conditions of company
policies, discipline, practices, rules and regulations and other facilities.
The HRD- Dept. will prepare a circular for the Inductions of the new entrants and
circulate it to all the concerned depts. The following arrangernents to be made by
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the HRD-dept.
Seating Arrangement: If eligible, arrangement for office/residence, internal /
external phone connections along with telephone directory.
Stationery if required.
HRD-dept. has to inform the security dept. about the employees joining and
provide the documents such as service, rules etc to the employee.
13.TRAINING AND DEVELOPMENT:
The company has given greatest significance to training, and recognized its
importance both to the employees and the organization. The company believes in
training, forming integral process in integrating the organizational needs, if the needs of
the individual employees. The company believes the training essentiality from the point
of view of facilitating continuous update skills and knowledge and also directed towards
employee development and his career progression. As a matter of policy the company
considers that all employees should be covered in the training programs, based on the
identification of training needs by the respective HOD'S and requirement of the company.
1. Objectives
Training is to be given with a view to enhance the job knowledge, facilitating
constant updating of technology or new concepts.
The programmes take into account the training needs of the individual and his
responsibility in the organization.
The HOD'S shall primarily be responsible for the identification of training needs.
The designing of suitable programs and its implementation is being done by Unit
HRD In charge under the guidance of head group HRD.
2. Procedures
All Unit HRD in charges shall coordinate with respective HOD's to identify'
training needs at their respective Dept's during survey. The HRD department will
arrange all such activities as per corporate plan on training and development.
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3. In-house/outstation training programs.
Depending upon the number of employees, the HRD Dept will arrange the training
courses either at in-house or outside. While deputing for outstation courses, specific
approval from the executive director through Head group HRD is to be obtained.
The employees undertaking training must submit report within a week of
completion of training program.
Whenever employee attends the training programs on specialization topics, he
should give presentation to the concerned employees in the organization, so that
more employees can be benefited by the same presentation.
14.PERFORMANCE APPRAISAL.
Performance appraisal: The Company recognizes and fosters the concept of regular
employee assessment as a sole means of determining employee's performance,
effectiveness, and potentiality at all levels of the organization. It firmly believes that the
assessment and correct evaluation is not only facilities the determination of the
employee's level of performance and achievement, but also gives an opportunity to the
employee to bring in brilliant ideas and innovation. The company regards performance,
assessment essentially from the point of view of employee development and career
progression.
I. Objectives:
Appraiser’s role, effectiveness on the job, awareness towards strengths and
weaknesses is to be identified.
Developing valid data for individual for making decision in relation to placement,
increment, promotion, punishment etc.
Improve the relationship between appraiser and the appraise through performance
appraising dialogue. This enables open communication among appraiser and
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appraises to know the expectation of each other.
Provide an opportunity to the appraise for introspection, self evaluation, and goal
setting so that he remains to the path of development.
Conducting development programs to enhance performance in the current job and
realize the potentiality for future responsibilities.
2. Scope:
Cover all the permanent employees of the company including managerial cadres.
b. Appraisal calendar: The field of appraisal is 1st of April to 31st of March.
The calendar for process is as under:
1st March: Distribution of appraisal form to the HOD's by the HRD
department.
10th March: Appraiser to organize and arrange to fill up the forms.
1st April: Appraiser to handover the forms, duly filled into HRD Dept.
10th April: HRD Dept to compile all the ratings and put-up to the
management for review and approval.
20th April: Finalization of final increments by the management.
25 April: Implementation of the annual increments promotions etc by the
head group HRD.
3 Procedures:
a. The HRD Dept shall send the blank performance appraisal forms after filling relevant
personal details of the employees to the HOD'S as per calendar.
b. The appraiser should fill in as per the ratings mentioned in the form by examining all
the points.
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c. The appraiser shall fill up in last page regarding main points to be conveyed regarding
appraise. The appraiser shall fill up and inform the appraise about his strengths and
weaknesses before handing over the forms to the unit HRD In charge.
d. The appraiser to carry out the performance appraisal shall consider the following
points:
Allow self-appraisal by the appraise.
Organize performance review discussions.
Should inform to the appraise and take impartial views. Sum up the discussions
with appraise and chalk out action plan for development. Finally the form should
be sent to HRD Dept as per calendar duly signed by appraiser and unit in charge
wherever applicable.
e. Merit rating: The employees are classified based on the merits as follows:
Total marks Rating
57 and above Very good
41-56 Good
25-40 Satisfactory
09-24 Average
00-08 Poor
WELFARE MEASURES
1. Objectives: To lay down and practice several welfare schemes as would contribute to
healthy participation of the employees in the interest of the company and do all within the
means to satisfy needs of employees in their physical, Cultural, psychological and
economical well beings.
2. The company has a commitment to promote the welfare of the employees and to keep
the employees and their families happy and contemplated; these are both statutory and
non-statutory.
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a) Canteen Services:
The company maintains a full fledged canteen to provide its employees with
healthy food, snacks while on duty on subsidized rates. The facility is opened
on fixed timing on all working days.
b) Uniforms:
All the permanent employees of the group are provided with 2-pairs of
uniforms and one pair of shoes per year. The company is bearing stitching
charges.
c) Marriage gift: If an employee gets married while in service, he will be given cash gift
which is for Workmen Rs.251/- and for Staff is Rs.501/-
d) Medical treatment / Employee's injury on duty: The ESI scheme is applicable to
those covered under ESI act. Such of those employees who are not covered under ESI
scheme are eligible for the facility as laid down in medical Reimbursement scheme.
e) If the employee meets with any accident during working hours, is provided first aid
treatment immediately and initial expenditure is borne by the company till he is
shifted to the ESI hospital.
f) The employees who are not covered under ESI scheme are given medical treatment
incase of accident at the company's premises at the expenses of company.
g) Employee's Provident Fund:
Every permanent employee shall be entitled and required to become members of the
fund. The contribution payable by the employee shall be at the rate as applicable
under PF act and matching contribution by the management.
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h) Group Insurance:
Group Insurance scheme for the employees who are not covered under ESI are covered
by Group Insurance Scheme to protect against in any eventually accidents.
i) Gratuity Scheme:
All the permanent employees are covered under the Gratuity scheme.
Gratuity will be admissible only after completion of qualifying service for 5
years.
The benefits applicable are as per the Payment of Gratuity Act and Group
gratuity scheme adopted by the management.
j) Providing Telephone Calls:
The telephone calls from employees' relatives shall not be entertained unless and
until it is urgent call.
The security department at main gate shall receive the call and note the name of
the person calling and the message will be communicated to the employee.
In case of urgent messages, i.e. accident, death etc. Telephone operator/security at
the main gate shall note the details, name of the caller, name of the recipient of
call etc and inform the employee concerned over phone immediately.
No ordinary calls shall be entertained.
SAFETY, HEALTH AND ENVIRONMENT:
1. SAFETY:
Identifying the unsafe conditions
Monthly safety audit report.
Monthly safety committee meeting discussions.
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Report by employees.
Unsafe acts are corrected by conducting training programmes on safety, health
and environment to all the employees. The unit HRD in charges are responsible
for arranging training programmes on consultation with Executive (Training And
Safety).
All unsafe conditions are rectified by the maintenance department on top priority
under the guidance of Executive (Training & Safety).
The respective Unit HRD In charge procures necessary and appropriate Personal
Protective Equipments in consultation with Executive-(Training & Safety) and
issue the same to the all employees.
The Safety and Health policy is introduced for providing good and safe
environment at Plant I & Plant II.
Safety committees are formed at plant I and II and meetings are held once in a
month. The minutes of the meeting is sent to HEAD - group HRD.
Recognized a competent person for examining the lifting machine and lifting
tackles and pressure vessels once in a year from safety point of view and
obtaining certification.
Obtained approved "ON SITE & OFF SITE PLAN" from Chief Inspector of
factories for executing in emergency condition for Plant -l&' 11.
Work permit system has been implemented while carrying the work at height at
fragile roofs.
Fire Extinguishers are installed and maintained at prominent places.
All machines are provided with safety guards.
First Aid Boxes are provided at each unit.
Ambulance van is readily available for taking injured to hospital.
2. HEALTH:
Provided with the facilities like Drinking water, urinals and toilets and maintained
them properly.
Proper ventilation & illumination are provided at shop floor and offices.
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26. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
3. ENVIRONMENT:
Fulfilling the requirements of the Karnataka State Pollution Control Board
(KSPCB). We are obtaining the water and Air consents periodically as prescribed.
Approval has been taken from KSPCB for disposing the Hazardous wastes.
Stock monitoring is being carried out regularly.
Systematic and safe arrangement is provided for storing and handling of
chemicals.
Maintaining Diesel tanks as per explosive acts.
Providing can plugs and ear muffs wherever noise pollution exists and who are
working in noise areas.
Painting booths are provided wherever required.
4. SAFETY POLICY:
We believe -
Health and Safety of the employees whether at workshop, office or site are
matters of utmost concern to the management.
Management believes that human value involved is of great importance,
whatever else may be the compulsion of business and manufacturing.
Safety ranks top on the priority list along with production and quality.
Safety and healthy operating procedures also have way for reduced cost and
higher productivity.
Healthy employee is an asset to the organization.
All accidents and damages shall be prevented.
WE ARE COMMITTED TO:
Ensure that plant, equipment, machinery, process and systems of work are safe.
hazard free and without risk to the health,
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Ensure availability of information, instructions, training and supervision.
Believe that, no Job is so important as to overlook health and safety.
Believe that the cooperation of employees in observance of safety policy will
provide safe working condition and ensure accident free and quality performance.
Provide regular health checkup to monitor the health status of the employees.
Head accountable all our staff for the safety of their employees.
To conduct safety inspection and safety audit periodically.
WE EXPECT FROM OUR EMPLOYEES:
To observe all safety and adopt the safety rules.
To use all safety appliances, equipments and devices properly.
To follow safe operating procedure.
To keep the workplace clean and tidy.
To integrate safety into the job.
To care for personal hygiene.
Disseminate safety-Knowledge among colleagues.
Draw the attention of right officer on any unsafe activity, practices and
conditions.
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CATEGORY OF WORKS.
Sl.No. ITEMS (PPE) QUANTITY ISSUING PERIOD
EMPLOYEES
Permanent workmen
01 Uniforms 2 pairs p.a. During March every year
(WM)
Permanent workmen
02 Safety shoes 1 pair p.a. - DO -
(WM)
Only to workman working in
Melting section of foundry. One
Permanent workmen Special shoes
03 2 pairs p.a. pair each during March &
(WM) (Melting)
September respectively every
year.
Trainees who worked
04 Safety shoes 1 pair p.a. During March every year
more than one year
Only to the workmen working in
production, such as shell
One pair p.a. moulding, melting decoring and
05 Casual workmen Safety shoes @ 50% of fettling sections during March of
cost every year. 50% cost should be
recovered from their wages in 2
installments.
In case
Shall be issued 1 new pair of
damaged
06 For all employees Safety shoes shoes at free of cost after ensuring
while
the same.
working
Safety shoes,
Safety Helmets
The respective contractor shall
and Safety
07 Contract labour arrange to issue the same, without
Goggles and
fail.
other safety
equipments
For all category of Once in a
During the month of March of
08 employees ( WM) ITI's, Safety Helmet four years --
every four years once
Trainees and Staff 1 No.
New helmets can be issued at free
of cost. In case Helmet is
BABASAB PATIL Page 28
09 -DO- -DO- -DO- damaged during the work without
involving the employee
negligence.
29. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
Employees who are
working in hazardous Once in four Will be issued along with
10 Safety Helmet
area irrespective of years - 1 No, others.
category.
Safety
For all category of Equipments Shall be provided as decided
As per
Ii employees (Except (Goggles, Mouth- by safety department. It can be
requirement
contract laborers) Mask, respirators, replaced as and when required.
hand gloves etc.,
For administrative staff and
HOD'S amount will be decided
12 For all staff Safety shoes 1 pair p.a.
by the management from time
to time, if shoes not issued.
For all staff members Safety shoes, Once in 4 During March month once in a
13
including trainees Helmets years - 1 No. 4 years
For all production staff
Half-Sleeve During March month of every
14 and staff supporting 1 pair p.a.
safety apron year.
production activity.
For all employees who Mechanical
Can be replaced as and when
15 are working in cold box Respirators and 1 No. p.a.
required
section safety goggles
For all working Fettling
16 Ear plugs 1 pair p.a. - DO -
& D.G. Room
Electrical shoes
(Nail less &
17 For all electricians 1 pair p.a. March month of every year.
electrical shock
proof)
Shell Moulding As sector hand Can be replaced as and when
18 1 pair p.a.
workmen (WM) gloves (14" sizes) required.
19 For all electricians Electrical hand 5-8 pair per For replacing me hand gloves
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gloves department
For all category of Leather hand As decided by H.O.D's, &
20 1 pair p.a.
employees gloves H.R.D. Dept.
Minimum 5 Replacement can be decided
For the employees who Safety belts shall
21 sets of by the H.O.D.'s & H.R.D.
are working at height be provided
safety belts Dept.
Types of B2B buying behavior:
Routine re-buy: The organization has bought this product before and
has already established suppliers. These products may be relatively
low-risk, frequently supplies such as office stationer.
Modified re-buy: Implies that there is some experience of buying this
product, but there is also a need to review current practice. Perhaps
there have been significant technological developments since the
organization last purchased this item, or a feeling that the current
supplier is not the best, or a desire to renegotiate the parameters of the
purchase.
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New task buy: Is the most complex category. The organization has no
previous experience of and wide participation in the process,
especially where it involves a high-risk / high-cost product this kind
of purchase, and therefore needs a great deal of information.
Characteristics of B2B markets:
Nature of demand
Derived demand
Joint demand
Inelastic demand
Structure of demand
Industrial concentration
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Geographic concentration
Buying process complexity
B2B purchasing policy
Professional purchasing
Group decision-making
Purchase significance
Buyer–seller relationships
Phases in the buying process:
PHASE -1: Anticipation or Recognition of a problem
PHASE -2: Determination of the characteristics and quantity of the
needed item
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PHASE -3: Description of the characteristics and quantity of the needed
item
PHASE -4: search for the qualification of potential sources
PHASE -5: Acquisition and Analysis of Proposals
PHASE -6: Evaluation of proposals and selection of suppliers
PHASE- 7: Selection of order routine
PHASE -8: Performance feedback and evaluation
Differences between B2B market and consumer markets:
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34. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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Experience major . . .
B2B customers often/usually problems if supply customers minor irritation if supply
Consumer Experienceoften/usually
fails fails
Purchase goods and services that meet Purchase goods and services to meet
Find switching to another supplier individualswitching to another supplier easy
specific business needs Find or family needs
difficult
Need emphasis on economic benefits Need emphasis on psychological benefits
Negotiate on price Accept the stated price
Use formalized, lengthy purchasing Buy on impulse or with minimal
Purchase direct from suppliers
policies and processes Purchase from intermediaries
processes
Involve large groups in purchasing Purchase as individuals or as a family
Decisions Purchase direct from suppliers
unit Justify an emphasis on mass media
Buy large quantities and buy Communication
Buy small quantities and buy frequently
infrequently
DMUs (decision making units) in B2B markets:
User
Users are the people who will use the end product, for example an operator who will use
production machinery, or a secretary who will use a word processor. These people may
trigger the purchasing process through reporting a need, and may also be consulted in
setting the specifications for whatever is to be bought.
Influencers
Influencers can affect the outcome of the decision-making process through their influence
on others. Influence could stem formally from expertise, for example the advice of an
accountant on the return on investment from a piece of capital machinery or that of an
engineer on a supplier’s technical capability, or it could be an informal, personal
influence. Their prime role is in specification, information gathering and assessment.
Deciders
Deciders have the formal or informal authority to make the decision. For routine re-buys,
this may be the purchasing officer or someone in a functional role, but organizational
structures may dictate that the final decision rests with top management, who are fed
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35. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
information and recommendations from below. The decider’s role and level of
involvement, therefore, will vary widely, depending on individual circumstances.
Buyers
Buyers have the authority to select and negotiate with suppliers. Buyers with different
level so f or seniority may exist to handle different types of transaction, for example a
routine re-buy could be handled by a relatively junior clerical worker, whereas the high-
cost, high-risk new buy might require a senior purchasing manager of many years’
experience. Where devolved budgeting exists, the buyer may not belong to a formal
purchasing department at all, but be someone who also has a functional role such as R&D
or marketing.
Gatekeepers
Gatekeepers have some control over the decision-making process, in that they can control
the flow of information by denying access to key members of the buying centre. For
example, a secretary or purchasing manager may prevent a sales representative from
talking directly to an executive, or intercept brochures and mail shots and throw them in
the wastepaper basket before they reach the decision maker. Technical staff can also act
as gatekeepers in the way in which they choose to gather, present and interpret
information to other members of the buying centre.
ENQUIRY NOTICE DOCUMENT:
Date:
D/M/YEAR
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Company
Name
Contact
Person
Address
Designati
on
Phone No.
Email
Address
Fax No.
Delivery
Address
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We would like to have your quote as per details given below:
Target
Part No & Estimated Annual Price Delivery
S.no Delivery Terms
Description Wt/Pc Requirement (if Condition
any)
1]
2]
3]
Remarks, if any
Design of the study:
Statement of the problem.
Suppliers performance is very essential for efficient performance of the company i.e.-
Supplier should supply quality raw materials at the right time and at the competitive
rates, only then the organization can survive in today's competitive environment .Thus
analysis of the performance of the suppliers is very essential for the organization.
This project aims at analyzing the performance of the suppliers of Ashok Iron
Works.
Objectives of the study:
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38. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
1) Finding the types of buying situations.
2) Finding the factors those influence on buyers.
3) Finding which department makes the major buying decision process.
4) Finding the major reason for changing the previous suppliers.
Research methodology:
METHODOLOGY:
Primary Data:
- Questionnaire
- E-mail and pilot survey
MARKET REASERCH:
• Secondary Data:
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39. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
- Data collection method
• Hypothesis analysis:
- Chi-square test
LIMITATIONS OF THE STUDY:
Sample size: 44 samples
Sampling area: Already existing industrial
customers.
ANALYSIS
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40. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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AND
FINDINGS
How many years are into the business?
Cumulative
Frequency Percent Valid Percent Percent
Valid Below 1 year 3 6.8 6.8 6.8
1 to 5 yrs 17 38.6 38.6 45.5
5 to 10 yrs 15 34.1 34.1 79.5
Above 10 yrs 9 20.5 20.5 100.0
Total 44 100.0 100.0
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41. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
Interpretation:
From graph come to know that about 39% of the companies, since
from 5 yrs they are into the business. 34% of the companies from
5-10 yrs and 21% of the companies from more than 10yrs.
Is your companies purchasing of trasmission handled by your unit?
Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 32 72.7 72.7 72.7
No 12 27.3 27.3 100.0
Total 44 100.0 100.0
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42. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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No
27.3%
Yes
72.7%
Interpretation:
The graph shows that about 73% of the companies purchasing of
transmission is handled by the unit itself and 27% of the
companies purchasing of transmission is handled by the main unit.
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43. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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Do you require any of the following spares?
Cumulative
Frequency Percent Valid Percent Percent
Valid trasmission cases 6 13.6 13.6 13.6
clutch housing 8 18.2 18.2 31.8
Brake drums 7 15.9 15.9 47.7
Cylinder blocks 11 25.0 25.0 72.7
Cylinder heads 6 13.6 13.6 86.4
Hydrolic lift body 6 13.6 13.6 100.0
Total 44 100.0 100.0
Hydrolic lift body trasmission cases
13.6% 13.6%
Cylinder heads
13.6% clutch housing
18.2%
Cylinder blocks Brake drums
25.0% 15.9%
Interpretation:
From the graph we can interpret that about 25% of the companies
purchase cylinder blocks, 18% of the companies purchase clutch
housings, 16% of the companies purchase brake drums, followed
by 14% of the companies purchase cylinder heads, hydrolic lift
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44. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
body and trasmission cases.
From how many years are you been associated with company that you are
presently purchasing?
Cumulative
Frequency Percent Valid Percent Percent
Valid Below 1 year 8 18.2 18.2 18.2
1 to 5 years 12 27.3 27.3 45.5
5 to 10 years 8 18.2 18.2 63.6
Above 10 years 16 36.4 36.4 100.0
Total 44 100.0 100.0
20
10
Frequency
0
Below 1 year 1 to 5 years 5 to 10 years Above 10 years
Interpretation:
From the graph come to know that about 36% of the companies
since from more than 10 yrs they purchasing spares from ashok
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45. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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iron,27% companies from 1-5yrs and 19% companies from 5-10
yrs.
what initiates you to change the suppliers?
Cumulative
Frequency Percent Valid Percent Percent
Valid Dissatisfaction 18 40.9 40.9 40.9
product quality 11 25.0 25.0 65.9
Delivery capabilities 10 22.7 22.7 88.6
price 5 11.4 11.4 100.0
Total 44 100.0 100.0
price
11.4%
Dissatisfaction
Delivery capabilitie 40.9%
22.7%
product quality
25.0%
Interpretation:
The above graph shows that about 41% of the companies change
their previous suppliers due to dissatisfaction,25% of the
companies change their previous suppliers due to product duality ,
23% companies change their previous suppliers due to low
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46. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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delivery capabilities and 11% of the companies change their
previous suppliers due to prices of the different automotive and
engine spares.
who is the formal authority to select the suppliers?
Cumulative
Frequency Percent Valid Percent Percent
Valid purchase dept. 21 47.7 47.7 47.7
Engg.dept. 7 15.9 15.9 63.6
Management 16 36.4 36.4 100.0
Total 44 100.0 100.0
Management
36.4%
purchase dept.
47.7%
Engg.dept.
15.9%
Interpretation:
From the graph we can interprete that about 48% of companies
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47. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
selection of suppliers and purchase of spare parts is done by
purchase department followed 36% of the companies by
management and 16% of the companies by engineering
department.
What components do you prefer while making final buying decision?
Cumulative
Frequency Percent Valid Percent Percent
Valid Financing terms 16 36.4 36.4 36.4
Long term agreements 28 63.6 63.6 100.0
Total 44 100.0 100.0
Financing terms
36.4%
Long term agreements
63.6%
Interpretation:
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48. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
WORKS.
From the above graph come to know that 64% of the companies
were consider the component like long term agreements before
making the final purchasing/ buying decision and 36% of the
companies were consider the financial terms as the base for
making the final purchasing/ buying decision.
How do you evaluate your buying decision after the purchase?
Cumulative
Frequency Percent Valid Percent Percent
Valid Reliability of delivery
16 36.4 40.0 40.0
date promised
Order cycle time 13 29.5 32.5 72.5
Delivery capability 11 25.0 27.5 100.0
Total 40 90.9 100.0
Missing System 4 9.1
Total 44 100.0
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49. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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Missing
9.1%
Reliability of deliv
36.4%
Delivery capability
25.0%
Order cycle time
29.5%
Interpretation:
From the graph we can interprete that about 43% of the companies
evaluate their purchase decision on the basis of reliability of the
delivery automotive and engine spares, 32% of the companies
evaluate their purchase decision on the basis of order cycle time
and 25% of the companies evaluate their purchase decision on the
basis of delivery capability of the automotive and engine spares.
HYPOTHESIS TESTING:
1) Price and Delivery of spares
H0: Price and delivery of spares are independent on each
other.
H1: Price and delivery of spares are dependent on each
other.
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50. ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON
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Chi-Square Tests
Value d.f Asymp. Exact Sig. Exact Sig.
Sig.(2- (2-sided) (1-sided)
sided)
Pearson Chi- 1.487 .223
Square
Continuity .681 1 .409
Correction
Likelihood Ratio 1.477 1 .224
Fisher's Exact .262 .204
Test
Linear-by-Linear 1.453 1 .228
Association
N of Valid Cases 44
Interpretation:
From the chisquare test come to know that, the calculated
value (1.487) is greater than the expected value (.05).so, we
reject the H1. i.e, Price and delivery of spares are dependent
on each other.and accept the H0. i.e, Price and delivery of
spares are independent on each other.
2) On time delivery and service capability:
H0: On time delivery of products and after service
capabilities are
Independent on each other.
H1: On time delivery of products and after service
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capabilities are
dependent on each other.
Chi-Square Tests
Value d.f Asymp. Exact Sig. Exact Sig.
Sig. (2- (2-sided) (1-sided)
sided)
Pearson Chi- 3.443 1 .064
Square
Continuity 2.140 1 .143
Correction
Likelihood Ratio 3.522 1 .061
Fisher's Exact .115 .072
Test
Linear-by-Linear 3.364 1 .067
Association
N of Valid 44
Cases
Interpretation:
From the chisquare test come to know that, the calculated
value (0.06) is greater than the expected value (.05).so, we
reject the H1. i.e. On time delivery of products and after
service capabilities are dependent on each other.and accept
the H0. i.e, On time delivery of products and after service
capabilities are independent on each other.
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Findings:
• From the study it is clear that the purchase department is
the major influencer and also the decision maker of the
Industrial buying, so the relationship with the members of the
management will yield better sales for the company. Hence
this leads the buyer to be Brand Loyal.
• By the study conducted it is concluded that the companies are
into more of straight Rebuy which means the Industrial
buyers are brand loyal.
• Most of the Users of the spares are automotive and engine
manufacturing industries, Users may exert from a minor to a
very significant degree of influence on the purchasing
decision. They may initiate the purchasing process and play
an important role in defining purchasing specifications.
• Industrial buyers concentrate more on Price, Product quality
and Delivery but some of the bulk buyers also include credit
period as an average important factor for buying.
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Suggestions:
The company increase its credit period the list of the
consumers will also increase.
Company should target the small scale auto body building
industries also, through this they can increase their sales
turnover.
There is more demand for the company castings so that
company should increase its production rate.
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CONCLUSION
From the study it is clear that the purchase department is the
major influencer and also the decision maker of the Industrial
buying, so the relationship with the members of the
management will yield better sales for the company. Hence this
leads the buyer to be Brand Loyal. The companies are into more
of straight Rebuy which means the Industrial buyers are brand
loyal.
Industrial buyers concentrate more on Price, Product quality and
Delivery but some of the bulk buyers also include credit period
as an average important factor for buying.
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Annexure
QUESTIONNAIRE
Dear sir/madam,
1. Name of the concern : -------------------------------
2. Nature of the business: ------------------------------
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3. Since from how many years you are into the business?
Below 1 yr 1-5 yrs 5-10 yrs 10 and above
4. Is your company geographically located to different locations?
YES NO
5. Whether your company’s purchases handled by your unit? Or head
unit?
YES NO
6. Do you have any suppliers before?
YES NO
7. What initiates you to change the suppliers?
Dissatisfaction Price
Product quality on time delivery
8. Do you require any of the following spares? (if yes specify)
YES NO
Transmission cases Clutch housings Brake drums
Cylinder blocks Cylinder heads Hydraulic lift body
Hub front wheel
9. From how many years are you been associated with the company that
you are presently purchasing?
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Below 1 yr 1-5 yrs 5-10 yrs 10 and above
10.Are your present supplies meeting your specifications
YES NO
11.Rank the following attributes from 1 to 5. you consider while
selecting the supplier.(1-most important , 5- least important)
Price Product quality
a. Delivery Service capabilities
b. Credit period
12.Who is the formal authority to select the suppliers?
a. Purchase department Management
Engineering dept. others
13. What components do you prefer while making final buying decision?
Financing terms Long term agreements
14.How do you evaluate your decision after the purchase?
Reliability of delivery date promised
Order cycle time
Delivery capability
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15.What is your average monthly requirement of the spare parts?
a. Transmission cases Clutch housings Brake drums
Cylinder blocks Cylinder heads Hydraulic lift body
Hub front wheel
Specify quantity requirement ( in % )-------------------------------
---------------THANK YOU-----------
BIBLIOGRAPHY:
BOOKS:
• Industrial marketing – By, Hutt and Spec.
• Industrial marketing – By, Reader and Reader
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• WEB SITES:
• Www. Ashok irons.com
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