Fans

A fan is a machine used to create flow within a fluid, typically a gas such as air.
The fan consists of a rotating arrangement of vanes or blades which act on the
fluid. The rotating assembly of blades and hub is known as an impeller, a rotor, or
a runner. Usually, it is contained within some form of housing or case. This may
direct the airflow or increase safety by preventing objects from contacting the fan
blades. Most fans are powered by electric motors, but other sources of power may
be used, including hydraulic motors and internal combustion engines.
Fans produce flows with high volume and low pressure (although higher than
ambient pressure), as opposed to compressors which produce high pressures at a
comparatively low volume.

Typical applications include climate control and personal thermal comfort (e.g., an
electric table or floor fan), vehicle engine cooling systems (e.g., in front of a
radiator), machinery cooling systems (e.g., inside computers and audio power
amplifiers), ventilation, fume extraction, winnowing (e.g., separating chaff of
cereal grains), removing dust (e.g. in a vacuum cleaner), drying (usually in
combination with a heat source) and to provide draft for a fire.
Project Management Outline followed
in the Fan Industries:
The project management in the manufacture moves
through a lot of steps depending upon the industries
and its manufacturing ethics. Some of the factors that
the industry concentrates are as follows:
Project Brief:
The project involves purchase of minor parts, manufacturing the main parts
(motor winding) and then packing and marketing the product under a brand. The
branded product will be positioned in competition with other branded and
unbranded products. It is suggested that the company should initially introduce its
products in the rural or small town markets where brand awareness is easy to make
and heavy advertisement budget is not required
Opportunity Rationale:
This trend has always created a strong demand for fan.
During the review period, Fans are a part of daily life, and hot areas generate the
most sales. Hot areas drove sales growth because the most part of country is very
hot season of summer. Consequently, companies have to focus on hot areas to
maintain their market shares. Throughout the review period, sales of Ceiling fan &
Pedestal fan were very dynamic as their prices are low and easy to use. Introducing
affordable brand in such areas would attract sales. Such a market could also be
explored with low cost and high product quality.
Manufacturing on demand:
Depending upon demand of type of fan, the production
process changes. Therefore, the raw materials will be conserves and loss% will be
considerably less in the company perspective.

Pedestal Exhaust
Ceiling fan
fan fan
Production %age 35% 45% 20%
No of fan 117250 150750 67000
Financial Management:
Economic Rationale:
Economically the project is also rationale. The
availability of raw material and labor is very cheap
and easily available in the market. The supplier
network is strong and providing services on time
and on economically rational rate.
Project Capacity and Rationale:
The total capacity of the project will be 992000 per year production of the fan
approximately. For example if we consider a company, in the beginning the
company will utilize its 60% of the capacity for the manufacturing of the fan that is
335000 fans for first year. The company will enhance its capacity utilization by
10% annually. .
The project consists of a motor winding machine having production capacity of
600 motor winding per hour and two sheet cutting machine with production
capacity of 200 sheets per hours.
Business Legal Status:
It is recommended that this project should be started as partnership as it does not
involve heavy investment. Moreover, less complications and costs are involved in
forming, administering and running the partnership business

Marketing Management:
Fan Market:
The fan market in India consists of ceiling
fans(which have dominant share), table fans,
pedestal fans, wall fans and exhaust fans and
manufacture special purpose fans for industrial
applications.
The Indian market is estimated at 2.5 million fans per month and it is growing at
about 10% per annum.
The distribution of fans in India is also well developed with over 1,00,000 selling
points for fans.
Market Entry Timing:
This business can be started in any month of the year as it is used throughout the
year. The demand of the fan will be raised in the country as the population of the
country raises, its demand will automatically raising due to increasing heat in the
atmosphere.
Pricing Strategy:
The company follows a competitive pricing strategy in all major markets for all
product segments
The strategy to enter the lower price segments was executed through launch of
differentiated models aimed at the lower price segments.
Earlier all Economy and Premium ceiling fans were sold at around Rs.1000 and
Rs.1200 respectively to the customer. Sub-Economy ceiling fans were introduced
at a customer price of less than Rs.900.
The company introduced their Maxima ceiling fans at a customer price of Rs.900
and Bahar ceiling fans at a customer price of Rs.800. However, one of the
organised sector competitors (say Competitor A) introduced a ceiling fan model at
a customer price of Rs.700. Today the sub economy segment is being actively
looked at by most major competitors.
The pricing innovation aimed at the Bottom of the Pyramid mass market has been
a key element of the Bajaj Fans success story.
Packaging Strategy:
All the carton graphics were revamped in line with a new theme of Elements of
Nature. The Fans business being an Air business, took up the image of moving
clouds as a graphical motif for its packaging and a new set of Carton graphics
were implemented for the entire product range. This theme was also incorporated
in the Posters, POPs, the shop boards and all other communication elements to give
Bajaj fans a unique and instantly recognisable in-shop identity.
Promotion Strategy:
Television as the main media
It was important to create high aided and unaided brand recall related to the fans
category in the minds of the consumer. Fan as a product category has no major
regional disparities in sale. Much of the sale of organised sector is in the metro,
Class I and Class II markets.

Business ethics while manufacturing:

Safe Manufacturing Environment:
Ethical businesses prioritize safety in the workplace. In
a manufacturing environment, the presence of machines
and raw materials make adequate safety procedures
both legally mandatory and ethically necessary. In
addition to basic safety rules, such as wearing
protective gear and refraining from engaging in risky
behavior, the main issues relate to a reasonable balance between inconvenience,
productivity and safety. Applying too many rules creates compliance problems,
while not addressing safety issues can lead to injury. If you give the employees a
role in developing safety regulations for a production line, it helps in the
implementation of effective rules that strike the right balance.
Reduced Environmental Effects:
Manufacturing processes use energy and produce waste. Legal restrictions govern
how companies can produce energy while limiting emissions and how they have to
treat waste to reduce environmental damage. Ethical concerns influence the overall
approach of a company toward environmental degradation caused by its
manufacturing operations. Taking into account both legal and ethical factors, you
have to reduce your energy use by increasing energy efficiency and exploring the
use of alternative technologies. At the same time, you can reduce waste by looking
at where it is generated and changing your manufacturing process to produce as
little as possible.
Secure Workplace:
Employers have a legal and ethical responsibility to ensure workers are not subject
to sexual harassment or other forms of workplace hostility and to treat all
employees fairly. If your manufacturing environment has mostly male workers,
you have to be especially vigilant that female employees feel welcome and
comfortable. To meet both the legal and ethical challenges, institute detailed
policies against harassment and make sure all employees comply.
Safe Products:
In addition to internal issues, manufacturing companies face liability once their
products leave the factory. Product safety is governed by legislation, and ethical
concerns mean you should only ship products that have been tested for safety.
While knowingly shipping dangerous products is illegal and unethical, the use of
your products also may have unintended and harmful effects. Going beyond legal
requirements to thoroughly test all aspects of the use of your products reduces your
exposure to possible law suits and fulfills your ethical duties