SUMMER TRAINING REPORT

ON
SELLING STRATEGY
Undertaken at
(ORGANISATION-LAKSHMI PRECISION SCREWS LTD.)

submitted in partial fulfilment of the requirements of the

Degree of Master of Business Administration

M.D. University, Rohtak

Session
2011-16

SUBMITTED TO: SUBMITTED BY:

RAMAN BUDHIRAJA
IMSAR MBA 5.9 (A)
Roll No. 5978

INSTITUTE OF MANAGEMENT STUDIES & RESEARCH

 (M.D. UNIVERSITY, ROHTAK)

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 ............................ (MBA Deptt.) and all faculty members of IMSAR ( 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. Piyush Jain, from HR Deptt. of LPS who

introduced me to number of practical aspects about the organization, marketing field etc.

RAMAN BUDHIRAJA
 DECELARATION

I Raman Budiraja, Roll No. 5978 in class MBA of the IMSAR 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.

Presentation Incharge (Signature of the Candidate)

(Faculty)

Counter Signed
CONTENTS

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

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

LPS BOSSARD PVT LTD..

NH10 Rohtak Delhi Road, Kharawar Bye Pass
Tel.: +91-1262-48288/48289/49920/49921
Fax.: +91-1262-48297/49922
 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 customer’s 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 Office QC R&D Others Total

372 90 48 60 54 624
55% 14% 8% 10% 9% 100%

9. Factory

(Unit : m x m)
SECTION PLANTS TOTAL
PLANT I PLANT II
w.e.f. 1972-73 1993-94
LAND 19,000 44,000 63,000
BUILDING 16,000 23,000 39,000
 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

1.6 COMPANY ORGANISATION

Board of Directors

Chairman & Managing Director

Quality Management
Corporate Strategy

Marketing R&D Planning Production QA General

D S D L C P P P P P F H E
E A E A E R L L L U I R D
V L V B N O A A A R N D P
E E E O T D N N N C A
L S L R R U N T T H N
O O A A C I A C
P P T L T N I II S E
M M O I G E
E E R O
N N Y N
T T
 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.

o 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.
 1.8 BRIEF HISTORY OF COMPANY

1959 Established Nav Bharat Industries as small parts manufacturer.

1972 Established Lakshmi Precision Screws Pvt Ltd as Socket Head Screws
Manufacturer

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 Received Regional Export Award from Engineering Export Promotion Council,
(EEPC) India.

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 Accredited in Mechanical & Chemical Testing by A2LA, USA to meet Fastener Quality Act of
US.

1995 Accredited in Mechanical Measurement, Mechanical & Chemical

Testing by National Accreditation Board for Calibration & Testing
Laboratories (NABL). Government of India.

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 ERP–SAP R/3.

2002 Golden Peacock Award.

2003 Environment Award

 1.9 MAIN PRODUCTS OF LPS

Division Products
Precision Cold Forming parts for Automobile
Bolts & Nuts Engine Parts ( Con Rod, Cylinder Studs,
for Counter Weights, Cylinder Head, Rocker Arm, Engine
Automobiles 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
Fasteners 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:-
 1.10 LIST OF MAJOR PLANTS & MACHINERIES

SN PROCESS PLANT & MACHINERY SPECIFICATION NOs.

1 Drawing Pointing Machine Dia 5 - Dia 30 2

Wire Drawing Machine Dia 8 x 55 2
Wire Phosphating Plant 1
2 Heading 2D - 2B
2D - 3B Dia 8 x 70 1
3D - 3B Dia 6 x 55 - Dia 12 x 250 6
4D - 4B Dia 6 x 40 Dia 25 x 200 11
5D - 5B Large Stroke Bolt Former 1
5D - 6B Parts Former 1
3 Nut Forming 4D 6 - 12 mm 1
5D 4 - 10 mm 3
4 Rolling Roller Type Dia 6 - Dia 25 13
4 Rolling Rotary Type Dia 8 x 55 1
Flat Type Dia 3 x 10 - Dia 25 x 200 17
5 Washer Assembly 1
6 Heat Treatment Series Type 2
Batch Type 10
Dehydrogen HT 1
Pit Heating 5
7 Plating Automatic 1
Manual 2
8 Phosphating Automatic 1
Manual 1
9 Multi Spindle
Automatic M/c 4
Davenport
10 Automatic for Box 1
Packing M/c for Bag 1
 1.11 LIST OF MAJOR PLANTS & MACHINERIES (Contd.)

SIXTH GENERATION MACHINERIES AND EQUIPMENTS

S.N. MACHINERY / EQUIPMENTS FEATURES

Thread Rolling of 10.9 / 12.9 grade Bolts

1. PRX – 24
after Heat Treatment

2. PW – 10 E Rolling of Concentric Threads

Quantitative Visual and Metallographic

3. Omnimet Express Image Analyser
Analysis

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

1.11 LIST OF MAJOR PLANTS & MACHINERIES (Contd.)

SN PLANT & MACHINERY NOs.

11 CNC Machines 5

12 Flat Rolling 12

13 Circular Rolling 17

14 Nut Tapping 3

15 Drilling 5

16 Traub 9

17 Centreless Grinding 6

18 Pointing 6

19 Turning 1
1.12 LIST OF MAJOR CALIBRATION/PROCESS CONTROL/ INSPECTION/ TESTING
INSTRUMENTS & EQUIPMENTS

SN INSTRUMENT/ MAKE RANGE

EQUIPMENT
A) CALIBRATION
1 Electronic Comparator Baker Pune As required
2 Wear Checking Plug (WCP) HIP - do - M3-24, 1/8-1”
Truthread - do - BSW/BSF/UNC/UNF
Limit Gauges - do -
Size Control - do -
3 Slip Gauge Mitutoyo Japan 0 Grade
4 Slip Gauge Calibr Russia 1 Grade
5 Dial Gauge Calibrator Mikrotech Pune 0-25 mm
6 Torque Range Calibrator Mikrotech Pune 50 Kgf.
7 Floating Carriage Dia Measuring Aditya Pune
Machine
B) PROCESS CONTROL Germany
1 Dial Bore Gauge Mitutoyo Japan 4-7mm, 7-10mm
10-18mm, 18-35mm,
35-60mm, 50-100mm
2 Roundness Tester Mitutoyo Japan Dia OD-220, ID-100,
Ht. 280
3 Surface Roughness Tester Mitutoyo Japan 0-8, 8-80, 80-600
Micrometer
4 Contour Laser Scanner Dr. Henrich Germany
Schneider
GmbH
5 Try-roll Comparator 3 Pt. Universal US As required
6 Try-roll Comparator 2 Pt. Universal US As required
7 Countracer Mitutoyo Japan X-100mm, Z-400mm
8 On-line Computerised SPC Hertzler USA
System System
C) INSPECTION
1 Digital Pitch Micrometer Asahi Japan 0-25mm, 25-50mm
2 Digital Indicator Mitutoyo Japan 0-1mm, 0-10mm
3 Concentricity/Runout Gauge Kordt Germany M8 - M22
1.12 LIST OF MAJOR CALIBRATION / PROCESS CONTROL/ INSPECTION/TESTING
INSTRUMENTS & EQUIPMENTS (Contd.)

SN INSTRUMENT/ MAKE RANGE

EQUIPMENT
D) TESTING
1 Universal Tensile Testing Machine UTM 60 Blue Star 60 Tons
2 Coating Thickness Tester Fischer Germany 0-1 mm
3 Automatic Emission Spectrometer Shimadzu Japan Elements of Alloy
Steel, Tool Steel &
Stainless Steel etc.
4 Rockwell Hardness Tester Mitutoyo Japan Scale : HRA, HRB,
HRC, HRD
Conversion Vicker
Hardness
5 Micro Hardness Tester Buehler USA 10 -1000 gms.
6 Microscope Unitron USA N.A.
7 Salt Spray Chamber Weiss Germany N.A.
8 Magnetic Crack Detector Magnafield N.A. N.A.
 1.13 GROWTH IN PRODUCTION & SALES OF COMPANY

YEAR/ 93- 94- 95- 96- 97- 98- 99- 00- 01- 02- 03- 04-
SECTION94 95 96 97 98 99 00 01 02 03 04 05

PRODUCT
3556 4897 6529 6385 5753 5607 6656 6165 7600 7450 8200 9000
ION, TONNES

PER YEAR

SALES, 404 552 735 696 684 706 900 896 1123 1200
MILLIONS 816 834
INR
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
 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 Phone Fax
Chairman & Managing 48297/
L K JAIN +91-1262-48288/48289
Director 49922
Vice Chairman & 48695/
D K Jain +91-1262-49929
Managing Director 48796
Director – Purchase V K Jain +91-1262-48098 48098
President M G Agarwal

General Manager (Marketing)

H P Lakhera
General Manager (Sales)
J Pandey
R K Routh / +91-1262-48288/48289 48297/
Manufacturing R P Khanna / / 49920-21 49922
P Dhawan
M T Parmar /
Development/Engineering J K Sahoo /

Production, Planning & R C Garg /

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

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 OEM’s

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.

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.

The overall functions of sales representative are:-

o To bring offers.
o Marking contracts
o Report and figure work
o 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 4P’s

o Product
o Price
o Place
o Promotion
2.1.4 The marketing division has been divided into two parts

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

o OEM (Original Equipment Manufacturers)

o Dealers

OEM’s 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

o 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.
 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.
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.

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.
 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?

o How to have its packaging?

o How to fix its price?

o 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.

4.3 NEW PODUCT DEVELOPMENT PROCESS

Enquiry

NO
Feasibility Report Regret

Yes

Cost Sheet

Quotation

Purchase Order

Dev. Req. to
R&D Dept.

Sample

Pilot Lot Regular Supply

 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
 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
 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

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.

 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.

 5.1 RESEARCH METHODOLOGY

Research is the art of the scientific investigation,. It refers to a search for knowledge. The advance

learner’s 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,

o Descriptive Research Design,

o Diagnostic Research Design

o 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.
 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

o 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

o Interview method

o Questionnaire method

o Schedule method

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

TOTAL FASTENERS MARKET
(700 CRORE)

lakshmi Precision
Precision Fasteners Screw s Ltd
Ltd. 11%
18%

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

Sundram
Rasteners, Chennai
50%

( Graph 6.1 Shows Total Fasteners market in North India)

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 70%

Delay in preparation of cost sheet 20%
Delay on behalf of marketing department 10%

20%

10%

70%

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

ANALYSIS –2

(2) How many orders are received out of sending quotations ?

Quotations Sent 80
Orders Received 20

Strike Rate 20%

20%

80%

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

(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

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

Good Quality 40%

Reasonable Price 30%
Shortest Delivery Time 30%

30%

40%

30%

(Graph 6.6 shows what are the expectations of the customers when he gives the order?)
 ANALYSIS –6

(6) How many products are commercialised through product on

development ?

During January-June

Total Products Developed 74

Products Commercialised 70%

Products Under Approval 23%
Products Not Approved 7%

7%

23%

70%
 (Graph 6.7 shows How many products are commercialised through product on development ?
ANALYSIS - 7

(7) What is the overall analysis between enquiries to quotation?

During January- June

Total enquiries received during the period 71

Regret 14%
Pending 7%
Quotations sent within average time 56%
Quotations sent beyond average time 23%

14%
23%

7%

56%

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

The findings of this study are:

o LPS is on 3rd position in the Fastners Market.

o The Quality of LPS’s product is good.

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

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

o Network Distributor Channel of LPS is not good.

o Price Range of LPS’s Product can compete competitor like Sundaram Fastners Limited.

o The Company has been able to attract new customers.

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.
o Company should reduce the delivery time.
o Company should increase the production capacity to fulfil the requirements of the customers.
o Company should reduce the time taken between receipt of enquiry and sending of quotations.
o Company should increase the availability of raw material.
o Company should go for e-commerce due to globalisation.
o Company should stress on Zero-Defect Concept.
o The Company should search for new markets.
 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.
BIBLIOGRAPHY

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

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

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

o Website : w.w.w lpsindia.com

 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?

(a) quotations sent [ ]

(b) orders received [ ]

Q 3. How many new customer joined by development of new product?

(a) Existing customer [ ]

(b) New Customer [ ]

Q 4. What are the expectation of the customer when he gives the order ?

(a) Good quality [ ] (b) Reasonable price [ ]

( c) Delivery time [ ]

Q 5. How many products are commercialised through new product development?

(a) Products commercialised [ ]

(b) Products under development [ ]
( c) Products not required by customer [ ]

Q 6. 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 [ ] (b) Pending [ ]

(c) Quotations sent within average time [ ] (d) Quotations sent beyond average time [ ]