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By
Prathyusha Chokkapu
PRN:18021141030
CMI Cushion pad is an integral part of the process of driving piles. The new CMI pad with
curled metal has got three dimensional resilience and the power to withstand almost any
temperature, produce shock mount and etc with temperature never going above 2500 F with
33% faster driving time which is 5 times increase in pad change efficiency and a 68 times
increase in piles per pad efficiency (Test results of Colerick and Fazio)
CMI Metal Pads could be manufactured as per old equipment or even new equipment as per
Exhibit 6 is as follows both for the manufacturer and the distributor where in it was
calculated only for 11 ½ inch pads because they were most commonly used.
2. How far CMI’s metal cushion pads are different than existing cushion pads used in
pile driving business?
Analysis: Cushion pads act as shock absorbers and heat resistors. Originally, hardwood
blocks were being used where the constant pounding destroyed the wood’s resiliency, wood
used to get ignited and had to be changed frequently.
Then, they moved to asbestos rods which had stacks of layers made up of ½ inch aluminium
and 1-inch-thick micarta slabs.
Based on these results, though CMI pads drove piles 33% faster, Simpson- Manager of
Mechanical Products Group, was somehow not convinced if the larger pads would perform
well and was expecting the range to be around 20%.
So, a second test was performed by Fazio Construction and the test results are as follows:
3. How big is this market? What kind of opportunity is this for CMI?
Huge with annual demand of 290 million to 300 million feet of piles being driven
One set of curled pads – 10,000 feet (4 initial and 2 added later)
So Market requirement is 29,000 to 39,000 sets.
As per 1977 Construction Engineering report, 13,000 pile hammers are owned by
company and 6500 – 13000 leased wherein curled metal can be used.
This is an excellent B2B opportunity for CMI to convince the existing alternative users to
use curled metal product wherein it can show how well the productivity can be improved by
quoting at the right price and showing them the clients the increase in their efficiency as
well as margins by pricing and positioning it ideally.
Analysis: While buying metal cushion pads it would be a “Modified Rebuying” as our
clients are the ones who have been used other cushion pads with materials like wood,
asbestos and etc with variations in price and specifications.
5. Enlist the participants (decision making unit) while buying metal cushion pads. Also
describe their roles. Who is decision maker?
Analysis: In the pile driving business, as in other parts of the construction industry, a
number of entities participated in the purchases who might be the end procurers or even the
influencers who recommend and influence the buying decision.
For metal cushion rods, pile hammer manufacturers, consulting engineers, distributing
or renting companies, construction contractors and etc might act as potential influencers.
But the final decision would be in the hands of the Procurement Manager after discussing
with the product team in terms of its features, sales and administrator team to determine the
actual cost, quality control to decide and test the quality with a note to the manager above
him.
Purchase approval is done by a single person/unit but purchase decisions are taken various
parallel departments based on the requirement, need, urgency and future aspects and
prospects of the company.