ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS.

Research methodology:
METHODOLOGY:

Primary Data:
MARKET REASERCH:

- Questionnaire - E-mail and pilot survey - Data collection method

Secondary Data:

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: BABASAB PATIL Page 1

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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 castings

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. 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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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. 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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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. 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. MAIN MANUFACTURING ACTIVITIES

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS.

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

SL . N o. 1 2 3 Location of the plant Year of Establishment Regd. Office 689/1, Udyambag Belgaum 1974 689/1, Udyambag Belgaum Machhe Industrial Estate, Belgaum 1991 689/1, udyambag Belgaum DETAILS PLANT I PLANT II

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. Manpower capacity as per the Factories 500 250 Act. Built-up area ( Sq.Mtr ) INFRASTRUCTURE OF THE PLANT Sand making Core making Green sand Oil cores, shell cores & B cold box cores, no Bake cores etc Jolts & squeezing machines Induction furnaces (medium Frequency) channel type-5 nos cupola furnaces- 3 nos BMD shot blasting machines Lab with all testing facilities 85-100 tons per day 64-200 kgs per piece 1219*812*304 mm Resin bonded sand Oil cores, shell cores & cold box core, no bake cores etc. Compaction table, no bake sand Medium frequency Induction furnace 2 Nos BMD shot blasting machines Labs with all facilities including hilger make spectrometer. 40 tons per day 30-3000 kgs per piece 2775*1400*680mm

4 5 6 A

500 6633

250 18600

Mould making

Melting

Fettling

F G H I

Facilities Melting capacity Casting range Moulding Box size ( Maximum)

PRODUCT PROFILE CUSTOMER WISE (FOUNDRIES)

Sl. No

Customer

Plant -1

Plant II

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. Wath pump costing fly 1 Cummins India wheels fly wheel housings, hotel exchangers. Gears, case cover etc Automobile drums. Housing, fly wheels etc Tran case, center housing hubs, lift cover Brake Drums etc. 4 5 6 7 8 PRODUCTS: L&T M&M Simpson Escorts D.L.W Suction pumps castings Transmission case Blocks & Bearing caps Differential housings, hydrantic lift cover, gear box etc. Cylinder heads Cylinder heads Cylinder heads. Cylinder heads & cylinder blocks

Ashok Leyland

Tafe

Components for Diesel Engine Industry: BABASAB PATIL Page 9

ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. 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. To adopt continuous improvement in all organizational activities to meet dynamic Requirements of customers.

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. 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 Finance department

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. 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 Unit HRD

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SECURITY OFFICER

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CHAIRMAN EXECUTIVE DIRECTOR HEAD GROUP HRD MANAGER TRAINING MANAGER SAFETY

PLANT-II Unit HRD

JE, SE & PE Unit HRD in Charge

Asst. HRD

Asst. HRD

M&A Divn. CH & B M/C. Divn. Unit HRD In charge

Casting M/C Divn. Unit HRD In 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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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. 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

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. same to the concerned employment Exchange. 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

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. circulate it to all the concerned depts. The following arrangernents to be made by 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

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. arrange all such activities as per corporate plan on training and development. 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: Appraisers 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.

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. Improve the relationship between appraiser and the appraise through performance appraising dialogue. This enables open communication among appraiser and 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

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. 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. 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 41-56 25-40 09-24 00-08 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. Very good Good Satisfactory Average Poor

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. 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 nonstatutory. 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 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 is

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. fund. The contribution payable by the employee shall be at the rate as under PF act and matching contribution by the management. 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 i) Gratuity Scheme: accidents. applicable

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

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. Monthly safety audit report. Monthly safety committee meeting discussions. 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:

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. Provided with the facilities like Drinking water, urinals and toilets and maintained them properly. Proper ventilation & illumination are provided at shop floor and offices. 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:

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. Ensure that plant, equipment, machinery, process and systems of work are safe. hazard free and without risk to the health, 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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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. CATEGORY OF EMPLOYEES Permanent workmen (WM) Permanent workmen (WM) Permanent workmen (WM) Trainees who worked more than one year

Sl.No. 01 02

ITEMS (PPE) Uniforms Safety shoes

QUANTITY 2 pairs p.a. 1 pair p.a.

ISSUING PERIOD During March every year - DO Only to workman working in

03

Special shoes (Melting)

2 pairs p.a.

Melting section of foundry. One pair each during March & September respectively every year.

04

Safety shoes

1 pair p.a.

During March every year Only to the workmen working in production, such as shell

One pair p.a. 05 Casual workmen Safety shoes @ 50% of cost

moulding, melting decoring and fettling sections during March of every year. 50% cost should be recovered from their wages in 2 installments.

In case 06 For all employees Safety shoes damaged while working Safety shoes, Safety Helmets 07 Contract labour and Safety Goggles and other safety equipments For all category of 08 employees ( WM) ITI's, Trainees and Staff Safety Helmet Once in a four years -1 No.

Shall be issued 1 new pair of shoes at free of cost after ensuring the same.

The respective contractor shall arrange to issue the same, without fail.

During the month of March of every four years once New helmets can be issued at free

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09 -DO-DO-DO-

of cost. In case Helmet is damaged during the work without involving the employee negligence.

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. Employees who are 10 working in hazardous area irrespective of category. Safety For all category of Ii employees (Except contract laborers) Equipments (Goggles, MouthMask, respirators, hand gloves etc., For administrative staff and 12 For all staff Safety shoes 1 pair p.a. HOD'S amount will be decided by the management from time to time, if shoes not issued. During March month once in a 4 years During March month of every year. As per requirement Shall be provided as decided by safety department. It can be replaced as and when required. Safety Helmet Once in four years - 1 No, Will be issued along with others.

13

For all staff members including trainees For all production staff and staff supporting production activity.

Safety shoes, Helmets Half-Sleeve safety apron

Once in 4 years - 1 No. 1 pair p.a.

14

For all employees who 15 are working in cold box section For all working Fettling & D.G. Room

Mechanical Respirators and safety goggles Ear plugs Electrical shoes 1 pair p.a. 1 No. p.a.

Can be replaced as and when required - DO -

16

17

For all electricians

(Nail less & electrical shock proof) As sector hand

1 pair p.a.

March month of every year.

18 19

Shell Moulding workmen (WM) For all electricians

gloves (14" sizes) Electrical hand 5-8 pair per

1 pair p.a.

Can be replaced as and when required. For replacing me hand gloves

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. gloves 20 For all category of employees Leather hand gloves department 1 pair p.a. Minimum 5 sets of safety belts As decided by H.O.D's, & H.R.D. Dept. Replacement can be decided by the H.O.D.'s & H.R.D. Dept.

21

For the employees who Safety belts shall are working at height be provided

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. BABASAB PATIL Page 30

ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS.

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

Buyerseller 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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Experience major . . . customers minor irritation if supply B2B customers often/usually problems 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 Find or family needs specific business 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 policies and processes processes Purchase direct from suppliers Purchase from intermediaries Involve large groups in purchasing Decisions Purchase direct from suppliers Buy large infrequently quantities and buy Purchase as individuals or as a family unit Justify an emphasis on mass media Communication Buy small quantities and buy frequently

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 suppliers 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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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS. information and recommendations from below. The deciders 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 rebuy could be handled by a relatively junior clerical worker, whereas the high-cost, highrisk 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: Company Name Address Phone No. Fax No. Delivery Address Contact Person Designatio n Email Address D/M/YEAR

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS.

We would like to have your quote as per details given below: Target Part No & Estimated Annual Price Delivery S.no Description Wt/Pc Requirement (if Condition any) 1] 2] 3] Remarks, if any Delivery Terms

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: BABASAB PATIL Page 36

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: BABASAB PATIL Page 37

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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AND FINDINGS

H ow m an y y ear s are in to th e bu s in es s ? Fre q u e n cy Pe rce n t Be lo w 1 ye a r 3 6 .8 1 to 5 yrs 17 38 .6 5 to 1 0 yrs 15 34 .1 Ab o ve 1 0 yrs 9 20 .5 To ta l 44 1 0 0 .0 C u m u la tive Va lid Pe rce n t Pe rce n t 6 .8 6 .8 38 .6 4 5 .5 34 .1 7 9 .5 20 .5 1 0 0 .0 1 0 0 .0

Va lid

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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 510 yrs and 21% of the companies from more than 10yrs.

Is your companies purchasing of trasmission handled by your unit? Frequency 32 12 44 Percent 72.7 27.3 100.0 Valid Percent 72.7 27.3 100.0 Cumulative Percent 72.7 100.0

Valid

Yes No Total

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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS.

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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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS.

Do you require any of the following spares? Frequency 6 8 7 11 6 6 44 Percent 13.6 18.2 15.9 25.0 13.6 13.6 100.0 Valid Percent 13.6 18.2 15.9 25.0 13.6 13.6 100.0 Cumulative Percent 13.6 31.8 47.7 72.7 86.4 100.0

Valid

trasmission cases clutch housing Brake drums Cylinder blocks Cylinder heads Hydrolic lift body Total

H ydrolic lift body 13.6%

trasmission cases 13.6%

C ylinder heads 13.6% clutch housing 18.2%

C ylinder blocks 25.0%

Brake drums 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 body
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ANALYZING THE PERFORMANCE OF THE SUPPLIERS OF ASHOK IRON WORKS.

and trasmission cases.

From how many years are you been associated with company that you are presently purchasing? Frequency Below 1 year 8 1 to 5 years 12 5 to 10 years 8 Above 10 years 16 Total 44
20

Valid

Percent 18.2 27.3 18.2 36.4 100.0

Valid Percent 18.2 27.3 18.2 36.4 100.0

Cumulative Percent 18.2 45.5 63.6 100.0

10

Frequency

0 Below 1 year 1 to 5 years 5 to 10 years Abov 10 years e

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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iron,27% companies from 1-5yrs and 19% companies from 5-10 yrs.
w h at in itiates you to ch an g e th e s u ppliers ? Cu mula tive Freq ue ncy Perce nt Valid Pe rcen t Perce nt Dissatisfa ctio n 18 4 0.9 40.9 40.9 prod u ct q u ality 11 25.0 25 .0 65.9 De livery ca pa b ilitie s 10 22.7 22.7 88.6 price 5 1 1.4 11.4 1 00 .0 To tal 44 10 0 .0 1 00 .0

Va lid

price 11.4%

Dissatisfaction Deliv capabilitie ery 22.7% 40.9%

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 delivery capabilities and 11% of the companies change their previous
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suppliers due to spares.

prices of the different automotive and engine

w h o is th e fo r m al au th o r ity to s elec t th e s u p p lier s ? Fre q u e n cy P e rce n t V a lid p u r c h a s e d e p t. 21 4 7 .7 E n g g .d e p t. 7 1 5 .9 Management 16 36 .4 T o ta l 44 1 0 0 .0 C u m u la tiv e V a lid P e rc e n t P e rc e n t 4 7 .7 4 7 .7 1 5 .9 6 3.6 36 .4 1 0 0 .0 1 0 0 .0

Management 36.4% purchase dept. 47.7%

Engg.dept. 15.9%

Interpretation:
From the graph we can interprete that about 48% of companies selection of suppliers and purchase of spare parts is done by
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purchase department followed 36% of the companies by management and 16% of the companies by engineering department.

W h at c o m p o n en ts d o y o u p r efer w h ile m ak in g fin al b u y in g d ec is io n Fre q u e n cy P e rce n t V a lid F in a n c in g te r m s 16 36 .4 Lo n g te r m a g re e m e n ts 28 6 3.6 T o ta l 44 1 0 0 .0 C u m u la tiv e V a lid P e r c e n t P e r c e n t 36 .4 36 .4 6 3.6 1 0 0 .0 1 0 0 .0

Financing terms 36.4%

Long term agreements 63.6%

Interpretation:
From the above graph come to know that 64% of the companies
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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? Frequency Valid Reliability of delivery date promised Order cycle time Delivery capability Total System 16 13 11 40 4 44 Percent 36.4 29.5 25.0 90.9 9.1 100.0 Valid Percent 40.0 32.5 27.5 100.0 Cumulative Percent 40.0 72.5 100.0

Missing Total

M issing 9.1%

R eliability of deliv D ery capability eliv 25.0% 36.4%

O rder cycle tim e 29.5%

Interpretation:
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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. Chi-Square Tests Value Pearson ChiSquare Continuity Correction Likelihood Ratio 1.487 .681 1.477 1 1 d.f Asymp. Exact Sig. Sig.(2- (2-sided) sided) .223 .409 .224 .262 1 .228 .204 Exact Sig. (1-sided)

Fisher's Exact Test Linear-by-Linear 1.453 Association N of Valid Cases 44

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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 capabilities are dependent on each other.
Chi-Square Tests
Value Pearson ChiSquare Continuity Correction Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association N of Valid BABASAB PATIL 3.443 2.140 3.522 d.f 1 1 1 Asymp. Sig. (2sided) .064 .143 .061 .115 3.364 44 Page 49 1 .067 .072 Exact Sig. Exact Sig. (2-sided) (1-sided)

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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.

FINDINGS
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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.
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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.

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. BABASAB PATIL Page 52

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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.
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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: -----------------------------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 companys 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 BABASAB PATIL Price Page 55

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Product quality

on time delivery

8. Do you require any of the following spares? (if yes specify) YES Transmission cases Cylinder blocks Hub front wheel 9. From how many years are you been associated with the company that you are presently purchasing? Below 1 yr 1-5 yrs 5-10 yrs 10 and above NO Clutch housings Cylinder heads Brake drums Hydraulic lift body

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 a.
b.

Product quality Service capabilities

Delivery Credit period

12.Who is the formal authority to select the suppliers? a. Purchase department Management

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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 15.What is your average monthly requirement of the spare parts? a. Transmission cases drums Cylinder blocks Hub front wheel Specify quantity requirement ( in % )------------------------------Clutch housings Cylinder heads Brake

Hydraulic lift body

---------------THANK YOU-----------

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BIBLIOGRAPHY:

BOOKS:
Industrial marketing By, Hutt and Spec. Industrial marketing By, Reader and Reader WEB SITES: Www. Ashok irons.com

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