KARNATAK LAW SOCIETYS
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:
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
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 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 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.
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
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.
No.DETAILSPLANT IPLANT II
1Location of the plant689/1, Udyambag BelgaumMachhe Industrial
Estate, Belgaum
2Year of Establishment19741991
3Regd. Office689/1, Udyambag Belgaum689/1, udyambag Belgaum
4Manpower capacity as per the Factories 500 250 Act.500250
5Built-up area ( Sq.Mtr )663318600
6INFRASTRUCTURE OF THE PLANT
ASand makingGreen sandResin bonded sand
BCore makingOil cores, shell cores & cold box cores, no Bake
cores etcOil cores, shell cores & cold box core, no bake cores
etc.
CMould makingJolts & squeezing machinesCompaction table, no
bake sand
DMeltingInduction furnaces (medium Frequency) channel type-5 nos
cupola furnaces- 3 nosMedium frequency Induction furnace -2 Nos
EFettlingBMD shot blasting machinesBMD shot blasting
machines
FFacilitiesLab with all testing facilitiesLabs with all
facilities including hilger make spectrometer.
GMelting capacity85-100 tons per day40 tons per day
HCasting range64-200 kgs per piece30-3000 kgs per piece
IMoulding Box size ( Maximum)1219*812*304 mm2775*1400*680mm
PRODUCT PROFILE CUSTOMER WISE (FOUNDRIES)
Sl. NoCustomerPlant -1Plant II
1Cummins IndiaWath pump costing fly wheels fly wheel housings,
hotel exchangers. Gears, case cover etcCylinder heads &
cylinder blocks
2Ashok LeylandAutomobile drums. Housing, fly wheels etc-
3TafeTran case, center housing hubs, lift cover Brake Drums
etc.-
4L&TSuction pumps castings-
5M&MTransmission case-
6SimpsonBlocks & Bearing capsCylinder heads
7EscortsDifferential housings, hydrantic lift cover, gear box
etc.Cylinder heads.
8D.L.W-Cylinder heads
PRODUCTS:
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.
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.
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
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
MAN POWER PLANNINGl. It is the policy of the company to make all
manpower allocation on the basis of 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.
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
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.
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 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.
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.
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 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
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.
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.
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.
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.
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,
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.
Sl.No.CATEGORY OF EMPLOYEESITEMS (PPE)QUANTITYISSUING PERIOD
01Permanent workmen (WM)Uniforms2 pairs p.a.During March every
year
02Permanent workmen (WM)Safety shoes1 pair p.a.- DO -
03Permanent workmen (WM)Special shoes (Melting)2 pairs p.a.Only
to workman working in Melting section of foundry. One pair each
during March & September respectively every year.
04Trainees who worked more than one yearSafety shoes1 pair
p.a.During March every year
05Casual workmenSafety shoesOne pair p.a. @ 50% of costOnly to
the workmen working in production, such as shell moulding, melting
decoring and fettling sections during March of every year. 50% cost
should be recovered from their wages in 2 installments.
06For all employeesSafety shoesIn case damaged while
workingShall be issued 1 new pair of shoes at free of cost after
ensuring the same.
07Contract labourSafety shoes, Safety Helmets and Safety Goggles
and other safety equipmentsThe respective contractor shall arrange
to issue the same, without fail.
08For all category of employees ( WM) ITI's, Trainees and
StaffSafety HelmetOnce in a four years -- 1 No.During the month of
March of every four years once
09-DO--DO--DO-New helmets can be issued at free of cost. In case
Helmet is damaged during the work without involving the employee
negligence.
10Employees who are working in hazardous area irrespective of
category.Safety HelmetOnce in four years - 1 No,Will be issued
along with others.
IiFor all category of employees (Except contract laborers)Safety
Equipments (Goggles, Mouth-Mask, respirators, hand gloves etc.,As
per requirementShall be provided as decided by safety department.
It can be replaced as and when required.
12For all staffSafety shoes1 pair p.a.For administrative staff
and HOD'S amount will be decided by the management from time to
time, if shoes not issued.
13For all staff members including traineesSafety shoes,
HelmetsOnce in 4 years - 1 No.During March month once in a 4
years
14For all production staff and staff supporting production
activity.Half-Sleeve safety apron1 pair p.a.During March month of
every year.
15For all employees who are working in cold box
sectionMechanical Respirators and safety goggles1 No. p.a.Can be
replaced as and when required
16For all working Fettling & D.G. RoomEar plugs1 pair p.a.-
DO -
17For all electriciansElectrical shoes (Nail less &
electrical shock proof)1 pair p.a.March month of every year.
18Shell Moulding workmen (WM)As sector hand gloves (14" sizes)1
pair p.a.Can be replaced as and when required.
19For all electriciansElectrical hand gloves5-8 pair per
departmentFor replacing me hand gloves
20For all category of employeesLeather hand gloves1 pair p.a.As
decided by H.O.D's, & H.R.D. Dept.
21For the employees who are working at heightSafety belts shall
be providedMinimum 5sets of safety beltsReplacement can be decided
by the H.O.D.'s & H.R.D. 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.
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 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
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
suppliersPHASE- 7: Selection of order routine
PHASE -8: Performance feedback and evaluation
Differences between B2B market and consumer markets:
B2B customers often/usually . . . Consumer customers
often/usually
Purchase goods and services that meet specific business needs
Purchase goods and services to meet individual or family needs
Need emphasis on economic benefits Need emphasis on
psychological benefits
Use formalized, lengthy purchasing policies and processes Buy on
impulse or with minimal processes
Involve large groups in purchasing Decisions Purchase as
individuals or as a family unit
Buy large quantities and buy infrequently Buy small quantities
and buy frequently
Experience major problems if supply fails Experience minor
irritation if supply fails
Find switching to another supplier difficult Find switching to
another supplier easy
Negotiate on price Accept the stated price
Purchase direct from suppliers Purchase from intermediaries
Purchase direct from suppliers Justify an emphasis on mass media
Communication
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 information and
recommendations from below. The deciders role and level of
involvement, therefore, will vary widely, depending on individual
circumstances.
BuyersBuyers 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
Company Name
Contact Person
Address
Designation
Phone No.
Email Address
Fax No.
Delivery Address
We would like to have your quote as per details given below:
S.noPart No & DescriptionEstimated Wt/PcAnnual Requirement
Target Price(if any)Delivery Condition Delivery Terms
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:
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:
- Data collection method Hypothesis analysis:
- Chi-square testLIMITATIONS OF THE STUDY:
Sample size: 44 samples Sampling area: Already existing
industrial customers.
ANALYSIS
AND
FINDINGS
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.
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.
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
and trasmission cases.
Interpretation:
From the graph come to know that about 36% of the companies
since from more than 10 yrs they purchasing spares from ashok
iron,27% companies from 1-5yrs and 19% companies from 5-10 yrs.
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 suppliers due to prices of the
different automotive and engine spares.
Interpretation:
From the graph we can interprete that about 48% of companies
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.
Interpretation:
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.
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.
Chi-Square Tests
Valued.fAsymp. Sig.(2-sided)Exact Sig.
(2-sided)Exact Sig.
(1-sided)
Pearson Chi-Square1.487.223
Continuity Correction.6811.409
Likelihood Ratio1.4771.224
Fisher's Exact Test.262.204
Linear-by-Linear Association1.4531.228
N of Valid Cases44
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
Valued.fAsymp. Sig. (2-sided)Exact Sig. (2-sided)Exact Sig.
(1-sided)
Pearson Chi-Square3.4431.064
Continuity Correction2.1401.143
Likelihood Ratio3.5221.061
Fisher's Exact Test.115.072
Linear-by-Linear Association3.3641.067
N of Valid Cases44
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
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.
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.
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.
Annexure
QUESTIONNAIREDear 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 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?
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 period12. 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
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
WEB SITES:
Www. Ashok irons.com
Asst. HRD
PLANT-I Unit HRD
SECURITY OFFICER
CHAIRMAN
EXECUTIVE DIRECTOR
HEAD GROUP HRD
MANAGER SAFETY
MANAGER TRAINING
PLANT-II Unit HRD
JE, SE & PE Unit HRD in Charge
M & A Divn. CH & B M/C. Divn. Unit HRD In charge
Asst. HRD
Asst. HRD
Casting M/C Divn. Unit HRD In charge
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