SUMMER TRAINING REPORT

ON
SELLING STRATEGY
Undertaken at
(LAKSHMI PRECISION SCREWS LTD.)
submitted in partial fulfilment of the requirements of the
Degree of Master of Business Administration

M.D.University, Rohtak

Session
2010-11
Submitted By:
BEENU
(M.B.A 3rd sem)
Roll No. 06/MBA/

SATPRIYA COLLEGE OF MANAGEMENT STUDY AND RESEARCH

Affiliated to Maharishi Dayanand University, Rohtak- 124001.

ACKNOWLEDGEMENT
It is proud privilege to put on record my gratitude to all those who have been the source of guidance,
cooperation and help during my study at Lakshmi Precision Screws Limited, Rohtak.
I am indeed thankful to M/s Pooja (H.O.D., MBA Deptt.) and all faculty members of SATPRIYA
COLLEGE OF MANAGEMENT STUDY AND RESEARCH ( MBA Deptt.) for their pain staking
supervision and down right suggestions which bought a lot of confidence in me to complete this summer
training report.
First of all, I would like to thank Mr. R.S. Mishra Executive Marketing Manager of LPS who guided me
through out the thesis, right from the planning to the completion of actual report.
No Acknowledgement is complete without the mention of Mr. Gopal Bhutani, from HR Deptt. of LPS
who introduced me to number of practical aspects about the organization, marketing field etc.

SURENDER

DECELARATION
I Surender, Roll No. 48 in class MBA-3rd Sem. of the Satpirya Institute of Management study & Research
hereby declare that the Summer Training Report entitled STRATEGY FOR

PRODUCT

DEVELOPMENT is an original work and the same has not been submitted to any other institute for the
award of any other degree.

Under the supervision of

(Signature of the Candidate)

(Faculty)

Counter Signed

Table of Contents
1. certificate
2. acknowledgement
3. declaration
1. Company Profile

2. Introduction - about the project

3. Objectives of Study

4. Significance/scope of study

5. Research Methodology

6. Data Analysis & Interpretation

7. Limitations of the study

8. Findings of the study

9. Recommendations and Suggestions

10. Conclusion

10

11. Bibliography
12. Annexure

PREFACE
Summer training (with any industry) is the essential part to one of the curriculum of any Management
Program. In the classroom coaching we general get theoretical knowledge of Management, but, this
knowledge does not prove to be adequate. As in future, management students have to work with the
organization. By merely knowing what management is, they cannot be capable of applying it.

Summer training is provided to the students to provide the opportunity, to get familiar with the natural
industrial atmosphere through participation and observation.
As being a management student I also had to undergo 8 weeks of summer training. For this purpose I
joined LAKSHMI PRECISION SCREWS LIMITED, ROHTAK.

I have put in my best efforts to explain each & every function step by step & make it clear in an easy &
understandable language.

COMPANY PROFILE
2010

LAKSHMI PRECISION SCREWS LTD.

46/1 MILE STONE, HISSAR ROAD
ROHTAK-124001, HARYANA
Tel.: +91-1262-48288/48289/49920/49921
Fax.: +91-1262-48297/49922
Email.: corp_aff@lpsboi.com

1.1 INTRODUCTION ABOUT COMPANY

LAKSHMI PRECISION SCREWS LTD. Is a symbol of technical Perfection. LPS ( Founded
in March, 1972) is one of the leading manufacturers and suppliers of High Tensile Fasteners such
as Bolts, Screws, Nuts and similar parts for Automobile, Aviation, Heavy & Light Machinery,
railway.
More important is the fact that LPS today brings to its work over three decades of hard core
experience in the field. The present poduct list of LPS is very vast. All the bi company like Hero
Honda, Maruti, Escorts, Eicher, Kelvinator, Tata, Bajaj, LML, HMT. Every one use and recommends
of LPS label.
LPS: A company where performance is proof which understand his customer & give assurance
that we will do our best to make our products safe and reliable for our customers assembly line.

1.2 INDUSTRY PROFILE

Put simply, anything, which joins together two things, is a fastener- aboard and collection term for nuts,
bolts and screws-, which keeps separate assemblies of any engineering system together in a predetermined
position. Fasteners are one of the joining methods, the other notable being welding and riveting.
Fasteners can be broadly classified into two categories depending upon their tensile strength, Mild
Steel (MS) fasteners and High Tensile (HT) fasteners are used across abroad spectrum, mostly in general
applications, they are produced by the SSI and unorganised sector, using later and by rolling.
On the other hand, HT fasteners, which are relatively technology intensive, are manufactured by a few
units in the organized sector via the Cold Harding (a form of forging) process HT fasteners can be classified
into standard ( available of the shelf) and specialized (made to a specific design).
Fasteners have two types of heads: hexagonal and socket heads. Socket head screws (also known as Allen
Screws or grub screws by machines) are used mainly for industrial application in textiles, machine tools,
pumps etc. and also in erecting transmission towers.
The hexagonal type is predominately used in automobiles and in general engineering. Specialized
fasteners are used for specific applications and are generally tailor-made. Manufacturers of specialized
fasteners have to follow a prescribed design to make a fastener.
The Indian Fasteners Industry is dominated by eight major players who account for nearly 70%
of the total turnover of the industry and 95% of the organized sector. Basically engaged in servicing
the automobile industry, a most logical extension for the companies of fasteners industry is the
manufacture of small auto engine components like radiator caps, precision gears, couples etc. the
manufacture of various non-standard small components related to one industry helps a company to
give a boost to its operating margin by altering its product mix. The companies who are able to

cogenerate those small components along with their main product are the ones, which enjoys higher
margins in this industry.

1.3 VISION OF LPS

MOTTO:

Total customer satisfaction & market leadership.

TARGET:

Annual growth of 30% with Exports contributing upto 50% of the sales.

PLAN:

To continuously upgrade process technology & develop new products.

FUNCTION:

System oriented approach.

PEOPLE:

The driving force behind it.

1.4 OUTLINE OF THE COMPANY

1) Name of the Company

LAKSHMI PRECISION SCREWS LTD.

2) Founded on

March 10, 1972

3) Head Office & Factory

46/1, Mile Stone Rohtak - 124001

Haryana (India)

4) Chairman & Managing Director

Lalit Kumar Jain

5) Total Assets

879 Mill. INR (March 2001)

($19 Million)

7) Annual Sales

834 Mill. INR (March 2001)

($18 Million)

8) Employees

Production
372
55%

Office
90
14%

QC
48
8%

R&D
60
10%

Others
54
9%

Total
624
100%

9. Factory
SECTION
w.e.f.
LAND
BUILDING

PLANT I
1972-73
19,000
16,000

PLANTS
PLANT II
1993-94
44,000
23,000

(Unit : m x m)
TOTAL

63,000
39,000

10

1.5 OBJECTIVE OF LPS

The main objective of LPS is to Provide customer satisfaction or we can say that things according to
customer demands.

The Other Main Objectives Of the Company are:

1.

To Position himself in the Market.

2.

To Increase productivity.

3.

To Innovate new things

4.

To double the export and bring foreign currency

5.

To get maximum profits

6.

To Increase the performance

7.

To Develop technical and administrative skills

8.

Optimum utilization of Human Resources

11

1.6 COMPANY ORGANISATION

Board of Directors

Chairman & Managing Director

Quality Management
Corporate Strategy

Marketing

D
E
V
E
L
O
P
M
E
N
T

S
A
L
E
S

R&D

D
E
V
E
L
O
P
M
E
N
T

L
A
B
O
R
A
T
O
R
Y

Planning

C
E
N
T
R
A
L

P
R
O
D
U
C
T
I
O
N

P
L
A
N
N
I
N
G

Production

P
L
A
N
T

P
L
A
N
T

II

QA

P
U
R
C
H
A
S
E

General

F
I
N
A
N
C
E

H
R
D

E
D
P

12

1.7 FUTURE PLANS OF THE COMPANY

LPS is well on the way to consolidating its future leadership with a rising corporate graph with and
annual growth rate of 40%.
The further plans are follows:o

Its further plan is to includes continuous investment in R&D.

More concentration on Hard currency markets of USA, UK, Japan and Europe with the objective

of doubling the exports and to bring invaluable foreign exchange for the country.
o

On the corporate agenda is a massive expansion program which includes diversification into

chemicals and engineering.

o

To improve quality in design and manufacturing through implementation of

ISO-9002 system.

13

1.8 BRIEF HISTORY OF COMPANY

1959
1972

Established Nav Bharat Industries as small parts manufacturer.

Established
Manufacturer

Lakshmi

Precision

Screws

Pvt

Ltd

as

Socket

1973

Technical tie-up with the German firm M/s Richard Bergner.

1977

Acknowledged quality source of fastener.

1978

Technical tie-up with M/s Richard Bergner expires.

1983

Secured self certification status from FORD.

1984

Declared Public Limited Company.

1986

Secured self certification status from M/s Lakshmi Machine Works.

1988

Established as manufacturer-exporter.

1991
(EEPC) India.

Head

Received Regional Export Award from Engineering Export Promotion

Screws

Council,

1992

Received Regional Export Award from EEPC for the second Consecutive year.

1993

Received Regional Export Award from EEPC for the third consecutive year.

1993

Established Plant - II.

1994

Received Employment Generation Award from Director of Industries, Haryana State.

1995
US.
1995

Accredited in Mechanical & Chemical Testing by A2LA, USA to meet Fastener Quality Act of
Accredited in Mechanical Measurement, Mechanical & Chemical
Testing by National Accreditation Board for Calibration & Testing
Laboratories (NABL). Government of India.

14

1996

Certified to ISO-9002.

1.8 HISTORY (Contd.)

1998
-

Installed Bolt Maker (AF 2525) to add production capacity to 12200 MT.
Self Certification status from TELCO.
Technical Tie-up with Sunil Machinery Corporation, Korea.
Joint Venture with Bossard AG-Switzerland.

1999

Licenced Manufacturers of TORX Screw from Camcar Co. USA.

2000

QS 9000 Certification.

2001

ISO/TS-16949 Certification.
ISO-14001 Certification.

2002

Implemented ERPSAP R/3.

2002

Golden Peacock Award.

2003

Environment Award

15

1.9 MAIN PRODUCTS OF LPS

Division
Bolts & Nuts
for
Automobiles

Fasteners

Products
Precision Cold Forming parts for Automobile
Engine Parts ( Con Rod, Cylinder Studs,
Counter Weights, Cylinder Head, Rocker Arm, Engine
Mounting, Main Bearing etc.)
Chassis Parts (Wheel Bolts, Wheel Hub Bolts & Nuts,
Axle Bolts/Pin, Flanged Bolts, Collar Bolt, Shock Absorber
Mounting Pins etc.)
Washer Assemblies Bolts
The other critical & safety parts bolts
Construction parts (Friction Grip)
Bolts & Nuts for Agriculture Industry
Bolts & Nuts for Industrial Machinery
Cold formed parts for Automobile (Piston Pins, Switch Body, Ball Joints,
Gear Blanks, Rocket Shaft etc.)
Pins for Hydraulics & Pumps
Bolt for Refrigeration Compressor
Friction Grip Bolts & Nuts for Construction Industry
Standard
Socket Head Cap Screw
Fasteners
Low Head Socket Bolt
Shoulder Bolt
Button Head
CSK
Set Screws
Hex Wrench Keys
Hex Head Bolt
Dovel Pin
Nuts
Friction Grip Bolts
Track Shoe Bolts
Stainless Steel Hex Head
Stainless Steel Socket Head Cap Screws
Special
There are the products that are made on the special orders.
Fasteners
These are:-

16

1.10 LIST OF MAJOR PLANTS & MACHINERIES

SN

PROCESS

PLANT & MACHINERY

SPECIFICATION

NOs.

Drawing

Dia 5 - Dia 30
Dia 8 x 55

2
2
1

Heading

Pointing Machine
Wire Drawing Machine
Wire Phosphating Plant
2D - 2B
2D - 3B
3D - 3B
4D - 4B
5D - 5B
5D - 6B
4D
5D
Roller Type
Rotary Type
Flat Type

Dia 8 x 70
Dia 6 x 55 - Dia 12 x 250
Dia 6 x 40 Dia 25 x 200
Large Stroke Bolt Former
Parts Former
6 - 12 mm
4 - 10 mm
Dia 6 - Dia 25
Dia 8 x 55
Dia 3 x 10 - Dia 25 x 200

1
6
11
1
1
1
3
13
1
17
1
2
10
1
5
1
2
1
1

Nut Forming

4
4

Rolling
Rolling

5
6

Washer Assembly
Heat Treatment

Plating

Phosphating

Series Type
Batch Type
Dehydrogen HT
Pit Heating
Automatic
Manual
Automatic
Manual

Multi
Spindle
Automatic
M/c
Davenport
10
Automatic
for Box
Packing M/c
for Bag

4
1
1

17

1.11 LIST OF MAJOR PLANTS & MACHINERIES (Contd.)

SIXTH GENERATION MACHINERIES AND EQUIPMENTS
S.N.

MACHINERY / EQUIPMENTS

FEATURES

1.

PRX 24

2.

PW 10 E

3.

Omnimet Express Image Analyser

4.

Cryogenic Treatment

Improved Tool Life, Better Products

5.

Micro Incapsulation Technology UK

Thread Locking and Sealing Properties

6.

CNC Rolling & Grinding

Uniform Defects Free Products

7.

Washer Assembly

Bolt & Washer Combination

Thread Rolling of 10.9 / 12.9 grade Bolts

after Heat Treatment
Rolling of Concentric Threads
Quantitative Visual and Metallographic
Analysis

18

1.11 LIST OF MAJOR PLANTS & MACHINERIES (Contd.)

SN

PLANT & MACHINERY

NOs.

11

CNC Machines

12

Flat Rolling

12

13

Circular Rolling

17

14

Nut Tapping

15

Drilling

16

Traub

17

Centreless Grinding

18

Pointing

19

Turning

19

1.12 LIST OF MAJOR CALIBRATION/PROCESS CONTROL/ INSPECTION/ TESTING

INSTRUMENTS & EQUIPMENTS
SN INSTRUMENT/
EQUIPMENT
A) CALIBRATION
1
Electronic Comparator
2
Wear Checking Plug (WCP)

MAKE

RANGE

Baker
HIP
Truthread
Limit Gauges
Size Control
3
Slip Gauge
Mitutoyo
4
Slip Gauge
Calibr
5
Dial Gauge Calibrator
Mikrotech
6
Torque Range Calibrator
Mikrotech
7
Floating Carriage Dia Measuring Aditya
Machine
B) PROCESS CONTROL
1
Dial Bore Gauge
Mitutoyo

Pune
- do - do - do - do Japan
Russia
Pune
Pune
Pune

Roundness Tester

Mitutoyo

Japan

Surface Roughness Tester

Mitutoyo

Japan

Contour Laser Scanner

Germany

5
6
7
8

Try-roll Comparator 3 Pt.

Try-roll Comparator 2 Pt.
Countracer
On-line Computerised SPC
System
INSPECTION
Digital Pitch Micrometer
Digital Indicator
Concentricity/Runout Gauge

Dr. Henrich
Schneider
GmbH
Universal
Universal
Mitutoyo
Hertzler
System

US
US
Japan
USA

As required
As required
X-100mm, Z-400mm

Asahi
Mitutoyo
Kordt

Japan
Japan
Germany

0-25mm, 25-50mm
0-1mm, 0-10mm
M8 - M22

C)
1
2
3

Germany
Japan

As required
M3-24, 1/8-1
BSW/BSF/UNC/UNF

0 Grade
1 Grade
0-25 mm
50 Kgf.

4-7mm, 7-10mm
10-18mm, 18-35mm,
35-60mm, 50-100mm
Dia OD-220, ID-100,
Ht. 280
0-8, 8-80, 80-600
Micrometer

20

1.12 LIST OF MAJOR CALIBRATION / PROCESS CONTROL/ INSPECTION/TESTING

INSTRUMENTS & EQUIPMENTS (Contd.)

SN

MAKE

D)
1
2
3

INSTRUMENT/
EQUIPMENT
TESTING
Universal Tensile Testing Machine
Coating Thickness Tester
Automatic Emission Spectrometer

RANGE

UTM 60
Fischer
Shimadzu

Blue Star
Germany
Japan

Rockwell Hardness Tester

Mitutoyo

Japan

5
6
7
8

Micro Hardness Tester

Microscope
Salt Spray Chamber
Magnetic Crack Detector

Buehler
Unitron
Weiss
Magnafield

USA
USA
Germany
N.A.

60 Tons
0-1 mm
Elements of Alloy
Steel, Tool Steel &
Stainless Steel etc.
Scale : HRA, HRB,
HRC, HRD
Conversion Vicker
Hardness
10 -1000 gms.
N.A.
N.A.
N.A.

21

1.13 GROWTH IN PRODUCTION & SALES OF COMPANY

YEAR/
939495969798990001020304SECTION94
95
96
97
98
99
00
01
02
03
04
05

PRODUCT
3556

4897

6529

6385

5753

5607

404

552

735

696

684

706

6656

6165

7600

7450

8200

9000

900

896

1123

1200

ION, TONNES
PER YEAR

SALES,
MILLIONS
INR

816

834

22

1.14 MAIN MARKETS OF LPS

A) DOMESTIC (USER INDUSTRIES)

Automotive

Aviation

Heavy & Light Machinery

Hydraulic/Pneumatic Pumps

Machine Tools, Jigs & Fixtures

Railways

Refrigeration & Air Conditioning

B) INTERNATIONAL (COUNTRIES)

Australia
Germany
Holland
Hongkong
Japan
Singapore
South Africa
South Korea
Sweden
Switzerland
United Kingdom
United States of America

23

1.15 ORGANIZATION STRUCTURE OF LPS

(i) Marketing Contact Point
Domestic Market
S K Jain/Director-Marketing
Phone : +91-1262-48856/49927
Fax : +91-1262-48863
E-mail : lps.mkt@sm3.sprintrpg.ems.vsnl.net.in; skjain@lpsmkt.com
Export Market
R K Jain/Director-Exports
Phone : +91-1262-48981/48790
Fax : +91-1262-48948/48307/43478
E-mail : rjain@lpsboi.com
(ii) Company Directory
Title
Name
Chairman
&
Managing
L K JAIN
Director
Vice Chairman &
D K Jain
Managing Director
Director Purchase

V K Jain

President

M G Agarwal

General Manager (Marketing)

General Manager (Sales)
Manufacturing
Development/Engineering
Production,
Control

H P Lakhera
J Pandey
R K Routh /
R P Khanna /
P Dhawan
M T Parmar /
J K Sahoo /

Phone
+91-1262-48288/48289
+91-1262-49929

Fax
48297/
49922
48695/
48796

+91-1262-48098

48098

+91-1262-48288/48289
/ 49920-21

48297/
49922

Planning

& R C Garg /
R Gururajan
A K Jain /
Information Technology
R K Arora
Sanjeev
K
Quality / Quality Management
Sharma /
Services
V Velayutham

24

1.16 List of Certificates

1.

A2LA

2.

NABL

3.

ISO 9002

4.

QS 9000

5.

ISO / TS 16949

6.

ISO 14001

1.17 Major Competitor of the Company

01.

Sunderam Fastners of TVS Group

02.

UN-BRAKO and Guest Keen Williams

03.

Panda Togun Limited

04.

Sterling Tools

05.

Precision Fastners

25

1.18 Who are the main Customer of the Company

We can categories the customer of the LPS in two parts:
Customer

Dealer

OEM
(original equipment manufacturer)

Here are name of top 10 OEMs

1.

Hero Honda Motors Ltd; Dharuhera

2.

Telco Ltd., Jamshedpur

3.

Telco Ltd., Pune

4.

Voltas Machine, Hyderabad

5.

Bajaj Tempo Ltd.

6.

Ashok Leyland, Chennai

7.

Escort Ltd., Faridabad

8.

Eicher Motors, Pitampura

9.

Kinetic Honda Ltd., Pitampura

10.

Maruti Udyog Ltd., Gurgoan

Thus the company specially deal with:

1.

New OEM

2.

Existing OEM

3.

Dealers

Also known as Segments of LPS.

26

27

2.1 LPS Marketing A Brief Outline

2.1.1 Introduction
Marketing is the human activity directed at satisfying needs and wants through the exchange process.
Marketing is the process through which procedure and customers of various goods are brought together in
an exchange relations and the transfer of ownership takes place. Marketing process starts even before the
goods go in production. It does not end with the sale but continuous with the satisfaction of consumer is
obtained.
2.1.2 Sales Procedure
To carry out selling functions, it is important to have a qualified and experienced sales force with a leader
who can plan, organize, direct and control the selling job objectively. The salesman is an extremely
important link in the chain of distribution. It is sometimes said that the salesmanship is the other name of
persuasion.
The organization sells its product to low types of target market. These are:-

1.

Selling to original equipment manufacturers i.e. Industrial Consumers.

2.

Selling to open market or market selling.

3.

The company has established its various sales representatives in various parts in India; mainly in

industrial development cities of india like Chennai, Bangalore, Coimbatore, and Kanpur etc. their main
test is to find out new market or customers for their product.

28

The overall functions of sales representative are:o

To bring offers.

Marking contracts

Report and figure work

Market feedback

2.1.3 Marketing Mix Strategy

Marketing mix is one of the major concepts in modern marketing. It can be defined, as marketing mix
is the particular blend of contractible marketing variables that the firm used to achieve its objectives in the
target market.
Now the question arises what variables make up a company marketing mix. There are actually a great
number of marketing variables. Fortunately they can be classified into a few major groups one of the
popular classifications has been proposed by Mc McCarthy and is called 4Ps
o

Product

Price

Place

Promotion

2.1.4 The marketing division has been divided into two parts
o

Export Marketing

Domestic marketing

29

2.1.5 The domestic marketing then divides the customer into 2 parts
o

OEM (Original Equipment Manufacturers)

Dealers

OEMs are the ones who are designers of the product themselves. They are the ones who supply the design
and we have to make the fasteners according to the design given. Similarly the OEM is divided into further 2
sub categories:o

New Customer

Existing Customer

2.1.6 Working With New OEM

Company gets the purchase order from the new customers through our sales personnel and the customer
provides the drawing. Then the drawing is taken to Research and Development department, as the customer is
new so we would like to have the feasibility report about the product. Whether we can make it or not and if
we can make what are the requirements?
The R&D then prepares the feasibility report about the product. After the feasibility report is sent to the
Finance Department for costing. The finance department then prepares the unit price of the products and then
this is forwarded to the marketing department, who gives the quotation to the customers.
If the customer approves the quotation then a sample of some pieces is made and given to he customer for
approval. It he customer approves the sample then the pilot lot is prepared and given to the customer. The size
of the pilot lot depends upon the cost of the product. It can be 50,100 or 200 also.
If the lot is again approved then we get the purchase order from the customer and a CC is sent to the
production, planning and control department. After the completion of the manufacturing of the product, the
material is given to the finished good stores who dispatch it to the customers.

30

2.1.7 Working With Existing OEM

If the customer exists then purchase order is directly given to the PPC department. The Engineering
department releases the drawing and the product is made. The format of dispatching is same in every case.
2.1.8 Working With Dealers
Sometimes our customer is not the manufacturer but the dealers and then instead of quoting the price we
have the price list for our products and we give them the price. After that I is it working procedures as the rest.

31

32

3.1 OBJECTIVE OF STUDY

The main objective of the study is to know about:
2.

New Product development process in the company.

3.

To know about different policies and strategies of L.P.S. to development of new product.

4.

To know about how much is the sales target of the company through new product development.

5.

How many products are commercialised through new product development & what are the
expectations of the customer when a new product is developed.

33

4.1 SIGNIFICANCE OF RESEARCH

All progress is born of inquiry. Doubt is often better than over confidence for it leads to inquiry, and
inquiry leads to invention. Increased scientific and inductive thinking and it promotes the development of
logical habits of thinking and organization. Research has its special significance in solving various
operational and planning problems of business and industry. Research, along with motivational research,
are business decisions, Market research is the investigation of the structure and development of the market
for the purpose of formulating efficient policies for purchasing, production and sales.

34

35

4.2 NEW PRODUCT DEVELOPMENT

Introduction
New product development means new profits. Product on development is a continuous and important
function of marketing management. The life of a firm is closely related to the development of new product
through mechanical and technological innovations.
New product development includes no. of decisions namely:o

What to manufacture or buy?

How to have its packaging?

How to fix its price?

How to sell it?

In case of a manufacturing organisation, the production department will develop and produce products on
the advice of the marketing department because it is marketing department, which knows better the
requirement of the customers. The work of product planning and development consists of the creation of new
ideas, their evaluation in terms of sales capacity and profitability, production facility, availability of resources
required for production that product, designing and marketing of product.
The main task of the product planners is to identify specific customer needs and expectations and align
company capabilities with the changing market demands.

36

4.3 NEW PODUCT DEVELOPMENT PROCESS

Enquiry

Feasibility Report

NO

Regret

Yes

Cost Sheet

Quotation
Purchase Order

Dev. Req. to
R&D Dept.

Sample
Pilot Lot

Regular Supply

37

4.4 New Product Development in LPS

Since LPS is a manufacturing concern, therefore, production department develop of new products with the
help of marketing department because marketing department better knows the requirements of customers.
The steps involved in the process of Product on development in LPS can be clearly understood with the
help of following explanation:1.

Enquiry

The first step in the process of product on development is to receive enquiries from the customers. The
enquiry is, normally, in descriptive form, which contains information regarding product design, product price,
product quality and delivery time.
2.

Feasibilty Report

The second step in the process of new product development is the preparation of feasibility report. Under
this step, enquiries received by the marketing department are communicated to the research and development
department for preparing the feasibility report of the product. Research and development department analyze
the feasibility of product whether the production of the product is possible or not and if yes, then what are the
requirements?
If production of product is not possible, then a regret letter is sent to the customer.
3. Cost Sheet

38

Under this step, the feasibility report is sent to the finance department for determining the cost of new
product. Finance department prepares the cost sheet to determine the unit price of the product. Cost Sheet
includes the raw material cost, labour cost, manufacturing expenses and other indirect expenses. After wards,
the finance department sends the cost sheet and feasibility report to the marketing department for further
processing.

3.

Quotations

After the preparation of feasibility report and cost sheet, quotations are sent to the customer. Quotations
consist of all the information about product design, product price, delivery time and terms and conditions
regarding payment. The average time between receipt of enquiry and sending of quotation is 21 days.
4.

Purchase Order

If the customer is satisfied with the terms and conditions contained in the quotation, then he gives his
approval and makes the purchase order to the marketing department. Purchase order consists of no. of units of
product demanded by the customer.
5.

Development request to R&D

Marketing department sends the purchase order to R&D. R&D reviews the tool

drawing, product

design, availability of raw material and labour.

6.

Sample

Research and Development department manufacture the sample of the product sends the sample of the
product to the customer. If the customer is satisfied with the sample of the product, then he sends the sample
approval letter to the research and development department.
7.

Pilot Lot

39

If the customer approves the sample, then pilot lot is prepared and given to the customer. Pilot lot is the
small quantity of product sent to the customer to check the accuracy of the product.
8.

Regular Supply

If the pilot lot is approved, then the company gives the regular supply of large quantity of product.

4.5 MANUFACTURING PROCESS

Wire from wire bend or Coil
Cutting of wire

Forging

Heat Treatment

Rolling

Grinding

Plating

Finishing
40

Oiling
Storing
Packing

4.5 The steps involved in manufacturing process are discussed as follows:1. Wire from Bend or Coil
The raw material for production comes in form of coil/ wire bend. These are mostly imported from Korea.
2.

Cutting of Wire

These raw materials are cut according to the size of the product .
3.

Forging

This is an important step in making the product. These are two types of forging operations that are being
done.
(i) Hot Forging
(ii) Cold Forging
Our company is mainly concerned for the cold forging operation. We can manufacture the product by
machining but it is not advisable. The reason is that by machining, we have to remove a lot of material but in
forging the amount of material is significantly reduced. Another important thing is the strength retention of the
material. The material flow line are cu in continuous. This is helpful in retaining the material strength. The
cold forging operation is used for mass production and it is uneconomical to go for small batch product
because of number of tools involved for manufacturing.
4. Heat Treatment
After the production stage is over, the product is ready for heat treatment. The heat treatment is done to
increase the hardness of material.

41

5.

Rolling

After the heat treatment, the next step is rolling. Rolling means threading. Rolling of the bolt depends
upon the requirement of the customers. It is very important step, in manufacturing process. Rolling is the only
thing, which differentiates the screw and bolt.
6.

Grinding

After rolling the next step is finding. It is mainly done for the finishing and shininess of the product. The
grinding is done also with the help of automated machines.
7.

Plating

Finishing and planting is done to remove the impurities in the product and to increase its corrosive
resistance and to give it a better look. This operation is done after the material had been heat-treated. The
plating department receives the work order form the PPC department as to what type of finishing is required
for the product. The customer, along with the design, gives the type of finishing required for the product.
8.

Packing
This is the last stage of production. This is the operation of packing. We packed the products. Then is

ready for dispatch.

42

43

5.1 RESEARCH METHODOLOGY

Research is the art of the scientific investigation,. It refers to a search for knowledge. The advance
learners Dictionary of Current English lays down on the meaning of research as,
A careful investigation or inquiry specially through search foe new facts in any branch of knowledge.
Research Methodology is a way to systematically solve the research problem. The research begin its
formation when the problem or objective of the research is identified for which a research project is
conducted. The main objective for which this project research is carried out is to understand and analyze the
product on development process of the company.
1.

Research Design

There are various methods of research design like

o

Exploratory Research Design,

Descriptive Research Design,

Diagnostic Research Design

Hypothesis-Testing research design.

In the present study, I will use Descriptive Research Design .

Descriptive studies are those studies which are concerned with describing the characteristics of a
particular group.

44

2.

Sampling Design

A Sample design is a definite plan for obtaining a sample from a given population. It refer to the
researcher would adopt in selecting items for the sample.. The sample size of this research will be 71 enquiries
that will be selected on random basis.
3.

Source of Data

Basically two kinds of data are available to the researcher namely:

o

Primary Data

Secondary Data
Primary Data

Primary data is that data which is collected by the researcher with his own sources

and efforts which is never collected before by any other person, like data is collected by questioner interview
etc.
Secondary Data

Secondary data is that data which is collected by the researcher from the available

resources like from web-site, Magines, Books of Company etc.

4.

Method Of Data Collection

There are various methods of data collection like

o

Observation method

Interview method

Questionnaire method

Schedule method

In the present study, I will use observation and questionnaire method that is primary in nature.

45

5.2 SUMMARY OF METHODOLOGY USED

Following is the summary of the methodology used for research:Research Design

-Descriptive

Data Source

-Secondary

Data Collection Method

-Observation

Sample Size

-71 enquiries

Area Covered

- North India

46

47

TOTAL FASTENERS MARKET

(700 CRORE)

Precision Fasteners
Ltd.
18%

lakshmi Precision
Screw s Ltd
11%

Other ('Kundan,
Sterling Pooja, etc.)
21%

Sundram
Rasteners, Chennai
50%

( Graph 6.1 Shows Total Fasteners market in North India)

48

ANALYSIS 1
(1)

What is the reason of delay in sending quotation?

Average days between enquiries to quotation is 21.

Delay Reason:Delay in preparation of feasibility report

Delay in preparation of cost sheet
Delay on behalf of marketing department

70%
20%
10%

20%

10%

70%

(Graph 6.2 shows the reasons of delay in sending Quotation)

49

ANALYSIS 2
(2) How many orders are received out of sending quotations ?
Quotations Sent
Orders Received
Strike Rate

80
20

20%

20%

80%

(Graph 6.3 shows how many orders are received out of sending quotation)

50

ANALYSIS 3
(3) How many new customers joined by development of new Product ?

Existing Customers

90%

New Customers

10%

10%

90%

(Graph 6.4 shows how many new customers joined by development of new product)

ANALYSIS 4
51

(4) Is there any sales target of company by product on development?

Target from new product development

15%

15%

85%

(Graph 6.5 shows Is there any sales target of company by product on development?)

ANALYSIS 5

52

(5) What are the expectations of the customers when he gives the order ?

Good Quality
Reasonable Price
Shortest Delivery Time

40%
30%
30%

30%
40%

30%

(Graph 6.6 shows what are the expectations of the customers when he gives the order?)

ANALYSIS 6

53

(6)
How many products are commercialised through product on
development ?
During January-June
Total Products Developed
Products Commercialised
Products Under Approval
Products Not Approved

74
70%
23%
7%

7%

23%

70%

(Graph 6.7 shows How many products are commercialised through product on development ?

ANALYSIS - 7
54

(7)

What is the overall analysis between enquiries to quotation?

During January- June

Total enquiries received during the period

71
14%
7%
56%
23%

Regret
Pending
Quotations sent within average time
Quotations sent beyond average time

14%
23%
7%

56%

(Graph 6.8 shows what is the overall analysis between enquiries to quotation?)

55

56

LIMITATIONS
The limitations of this study are as follows
1.

One drawback was time constraints, i.e the study had been completed within a restricted time

frame.
2.

Lack of experience of researcher may cause some error.

3.

Sample size was small, so it was difficult to find adequate results.

4.

Sampling may not present the exact pictures of market. It is just representative of population.

57

58

FINDINGS
The findings of this study are:
o

LPS is on 3rd position in the Fastners Market.

The Quality of LPSs product is good.

The most competitor company of the LPS is Sundaram Fastners Ltd.

Sales promotion activities of LPS like advertisement etc. is not so good.

Network Distributor Channel of LPS is not good.

Price Range of LPSs Product can compete competitor like Sundaram Fastners Limited.

The Company has been able to attract new customers.

59

60

Recommendations & Suggestions

There are some suggestions which may be helpful in the growth of LPS. These are as follows:o

Company should give good response to medium and small scale firms.

Company should reduce the delivery time.

Company should increase the production capacity to fulfil the requirements of the customers.

Company should reduce the time taken between receipt of enquiry and sending of quotations.

Company should increase the availability of raw material.

Company should go for e-commerce due to globalisation.

Company should stress on Zero-Defect Concept.

The Company should search for new markets.

61

62

CONCLUSION
On the basis of above explanation, I draw conclusion that product on development process implemented in
LPS is trustworthy and profitable & the sale of the company has enhanced to a great extent. The company has
been able to attract new customers. In spite of all these things, I believe that in order to make new product
development process more effective, the company should enhance the availability of raw material to fulfil the
requirements of customers in time. Besides, more emphasis should be placed on Zero Defect Concept so that
more number of customers can be attracted.

63

64

BIBLIOGRAPHY
o

Kotler, Philip, Marketing Management, New Delhi, Prentice Hall of India Pvt. Ltd.

Kothari, C.R., Research Methodology, New Delhi, Wishwa Parkashan Pvt. Ltd.

Ramaswamy, V.S., Marketing Management Planning Implementation and Control.

Website : w.w.w lpsindia.com

65

66

QUESTIONNAIRE
Q 1. What is the reason of delay in sending quotation?
(a) F.R. Delay [

(b) Cost sheet delay

( c) Delay on behalf of marketing deptt.

.
Q 2. How many orders are received out of sending quotations?

Q 3.

Q 4.

Q 5.

Q 6.

(a) quotations sent

(b) orders received

How many new customer joined by development of new product?

(a) Existing customer

(b) New Customer

What are the expectation of the customer when he gives the order ?
(a) Good quality

( c) Delivery time

(b)

Reasonable price

How many products are commercialised through new product development?

(a) Products commercialised

(b) Products under development

( c) Products not required by customer

Is there any sales target fixed by the company through new product development ?
( a)

yes

] (b)

No

Q 7 What is the overall analysis between enquiries to quotation?

(a) Regret

(c) Quotations sent within average time [ ]

(b) Pending

(d) Quotations sent beyond average time [ ]

67