The Instrumentation Ltd. a Govt. of India Enterprises was set up at Kota in April 1964 in collaboration with Russia with a provision to setup second unit at Palghat in Kerala. The production was started in October 1968. It holds good rank in India in the field of Process control instruments. Whatever the capacity of field may be one can only rely on I. L. oard based engineering capability expertise for instruments for requirements Marketing means to identity customer needs and then providing them for satisfying them. It is an important aspect of the business. The project has been made to know the different aspect of industrial marketing. The project emphasizes on the fundamental study of industrial marketing method. Research has described in this project how does the company receive & their execute the orders to industrial marketing consists of all activities the involved in the marketing of products to organization.
The aim of the company to maintain leadership in turnkey execution of Instrumentation system for power & steel projects and do improve market share in fertilizer, cement and other allied industries as well as to improve retail sale. Kota office basically a co-ordination office which is to co-ordinate between Marketing headquarter, branch offices and various department at Kota for timely execution of order and complete customer satisfaction. Kota office is also responsible for booking of orders for all telecom products. I. L. pecializing in the turnkey Process Control Instrumentation to record, monitor and control process parameters in process industries. Instrumentation Ltd. takes total responsibility for engineering, manufacturing, erection and commissioning of instruments with a back up of after sales services. So under this project the whole procedure for completing the order of customer has described. THE OBJECTIVE OF STUDY FOR A COMPANY: * To see the scope of products being provided by company in Indian as well as foreign market. FOR A RESEARCHER: The object is to provide the individual with an insight to the practical aspects of organizational working and environment, such type of study & its consequent exposure helps students to prepare for working in real industrial environment and to gain practical knowledge & build confidence. * To have in depth study of Marketing Procedure of Instrumentation Ltd. , Kota. * To suggest Some changes for betterment in marketing process of Instrumentation Limited. * SCOPE OF THE STUDY The confined study of marketing procedure & procurement action adopted by Instrumentation Ltd. Kota is the scope of the present study. It is not in any way related to studying the procedure being followed and documentation required else where in the other aspects of I. L. excepts : As a researcher: * To find out whether a change in the marketing process adopted in IL , KOTA is needed or not. As a Student: * To see the extent to which research methodology is used in practical aspect or not. * To see how the marketing process is implemented. JUSTIFICATION FOR CHOOSING A PARTICULAR TOPIC “STUDY OF MARKETING PROCESS OF INSTRUMENTATION LIMITED ” RATIONALE BEHIND THE STUDY
Now days the impact of globalization is very vast and it becomes the need of an hour. It is not possible for a company to survive alone. Globalization not only provides a platform for fair competition but open gateway for more and more Research & Development. In the whole process what ultimately gained are better products at competitive prices. If we get better products then we can provide our customers better equipments and can satisfy to them. This is not only provides scope of betterment and sophistication of techniques i. e. method of production but broadens the horizon of business.
Marketing is an important aspect of the business. Marketing means to identify customer needs and then providing them. It is very difficult to move global. Financial success often depends on marketing ability. Finance operations. Accounting and other business functions will not really matter if there is not sufficient demand for products and services so the company can make a profit. To sell the product in a global market is not an easy task. Marketing managers must make major decisions such as what features to design into a new product, what prices to offer customers, where to sell products and how much to spend on advertising.
For this a complete understanding related to marketing and stores is must. INDUSTRY PROFILE- Manufacturing and Process Industry Introduction- Manufacturing is the production of goods for use or sale using labor and machines, tools, chemical and biological processing, or formulation. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale.
Such finished goods may be used for manufacturing other, more complex products, such as aircraft,household appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users – the “consumers”. Manufacturing takes turns under all types of economic systems. In a free market economy, manufacturing is usually directed toward the mass productionof products for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy.
In mixed market economies, manufacturing occurs under some degree of government regulation. Modern manufacturing includes all intermediate processes required for the production and integration of a product’s components. Some industries, such assemiconductor and steel manufacturers use the term fabrication instead. The manufacturing sector is closely connected with engineering and industrial design. Examples of major manufacturers in North America include General Motors Corporation, General Electric, and Pfizer. Examples in Europe include Volkswagen Group, Siemens, and Michelin.
Examples in Asia includeToyota, Samsung, and Bridgestone. History and Development- * In its earliest form, manufacturing was usually carried out by a single skilled artisan with assistants. Training was by apprenticeship. In much of the pre-industrial world, the guild system protected the privileges and trade secrets of urban artisans. * Before the Industrial Revolution, most manufacturing occurred in rural areas, where household-based manufacturing served as a supplemental subsistence strategy to agriculture (and continues to do so in places).
Entrepreneurs organized a number of manufacturing households into a single enterprise through the putting-out system. * Toll manufacturing is an arrangement whereby a first firm with specialized equipment processes raw materials or semi-finished goods for a second firm. Manufacturing systems: changes in methods of manufacturing:- * Craft or Guild system * Agile manufacturing * American system of manufacturing * English system of manufacturing * Fabrication * Flexible manufacturing * Just In Time manufacturing * Lean manufacturing * Mass customization * Mass production * Ownership Packaging and labeling * Prefabrication * Putting-out system * Rapid manufacturing * Reconfigurable manufacturing system * Soviet collectivism in manufacturing Economics of manufacturing According to some economists, manufacturing is a wealth-producing sector of an economy, whereas a service sector tends to be wealth-consuming.  Emerging technologies have provided some new growth in advanced manufacturing employment opportunities in the Manufacturing Belt in the United States. Manufacturing provides important material support for national infrastructureand for national defense.
On the other hand, most manufacturing may involve significant social and environmental costs. The clean-up costs of hazardous waste, for example, may outweigh the benefits of a product that creates it. Hazardous materials may expose workers to health risks. Developed countries regulate manufacturing activity with labor laws and environmental laws. Across the globe, manufacturers can be subject to regulations and pollution taxes to offset the environmental costs of manufacturing activities. Labor Unions and craft guilds have played a istoric role in the negotiation of worker rights and wages. Environment laws and labor protections that are available in developed nations may not be available in the third world. Tort law and product liability impose additional costs on manufacturing. These are significant dynamics in the on-going process, occurring over the last few decades, of manufacture-based industries relocating operations to “developing-world” economies where the costs of production are significantly lower than in “developed-world” economies. Manufacturing may require huge amounts of fossil fuels.
Automobile construction requires, on average, 20 barrels of oil. Manufacturing and investment Surveys and analyses of trends and issues in manufacturing and investment around the world focus on such things as: * The nature and sources of the considerable variations that occur cross-nationally in levels of manufacturing and wider industrial-economic growth; * Competitiveness; and * Attractiveness to foreign direct. In addition to general overviews, researchers have examined the features and factors affecting particular key aspects of manufacturing development.
They have compared production and investment in a range of Western and non-Western countries and presented case studies of growth and performance in important individual industries and market-economic sectors.  On June 26, 2009, Jeff Immelt, the CEO of General Electric, called for the United States to increase its manufacturing base employment to 20% of the workforce, commenting that the U. S. has outsourced too much in some areas and can no longer rely on the financial sector and consumer spending to drive demand. 6] Further, while U. S. manufacturing performs well compared to the rest of the U. S. economy, research shows that it performs poorly compared to manufacturing in other high-wage countries.  A total of 3. 2 million – one in six U. S. manufacturing jobs – have disappeared between 2000 and 2007.  In the UK, EEF the manufacturers organisation has led calls for the UK economy to be rebalanced to rely less on financial services and has actively promoted the manufacturing agenda. ———————————————— ————————————————- ————————————————- ————————————————- ————————————————- ————————————————- ————————————————- LITERATURE REVIEW INTRODUCTION- A customized and automated product can be seen as a generic product which is modified by customer needs, like a car with a list of optional extras.
Alternatively, it can be seen as a special product which is made of standard modules com-bined the way the customer wants, like a prefabricated house. Customization is a widely studied subject. However, there has a notable lack of almost any linking of customization to broader issues of manufacturing, marketing, and research and design (R;amp;D) (Spring and Dalrymple, 2000, Lampel and Mintzberg, 1996). Moreover, it can be said that customization is not a homogenous phenomenon that can be addressed as a whole.
The objective of this study is to point out how customization is seen and how it is managed within an organization. The paper starts with a literature review of customization. Some frame-works are presented to identify and classify customizations. The study relies on interviews con-ducted in four different companies manufacturing capital goods. The rest of the paper discuss-es key issues identified during this study. A number of writers have considered product customization. The following discusses some of the frameworks presented in the literature. Customized products have been efined as ”…slight variations of standard configurations and are typically developed in response to a specific or-der by a customer” (Ulrich and Eppinger, 1995, p. 22). Different motivations exist for customization (Spring and Dalrymple, 2000). Typically a product is customized to fulfill customers’ needs. A customer might need features that are con-sidered as useless or even unattractive by other customers, or are simply not common stand-ard features. Similarly, some customers require higher or lower performance, or the product is to be included as part of the customer’s manufacturing process.
Furthermore, customization can be a choice for its own sake. Ahlstrom and Westbrook (1999) studied the benefits, disad-vantages, and difficulties of customization. Increased customer satisfaction and increased market share are the most frequently mentioned benefits, while increased material and manufacturing costs are among the most notable disadvantages. Difficulties are most often related to understanding customer wants- Customization means differentiated products, and typically can increase the variety of products.
This can lead to a higher market share and to increased profitability (Kekre and Srin-ivasan, 1990). However, customization also has its downside, since there is a tendency for part and process varieties to increase (Yeh and Chu, 1991), low volume and high variety are often associated with customization, and typical manufacturing processes require job-shop and batch processes (Duray et al. , 2000, Hayes and Wheelwright, 1979). Lampel and Mintzberg (1996) have identified five main customization strategies based on the stage of customer involvement.
The strategies differ from each other depending on the part of the value chain in which the customization is made: pure standardization, segmented stand-ardization, customized standardization, tailored customization, and pure customization. Pure standardization refers to a completely standard production in which all the pieces made are similar. In segmented standardization, customers are seen as a cluster of buyers, and each cluster is seen as a whole, as occurs when making different products for different market areas. In customized standardization, a product is customized in an assembly phase using standard omponents. Tailored customization requires basic design that can be customized in a fabri-cation phase. In a pure customization strategy, a product can be customized from scratch. However, there has to be some standard configuration, otherwise this strategy should be called prototyping rather than customizing. Coates and Wolff (1995) approach customization as a manufacturing practice. They de-fine customization as soft when the customer is not involved in the manufacturing process, and hard when there is customer involvement in the manufacturing process.
Gilmore and Pine (1997) have identified four distinct approaches to mass customization: collaborative, adap-tive, cosmetic, and transparent. In collaborative customization, customers select from prede-termined elements their own combination, after which the product is custom-made. In adap-tive customization, the product itself is customizable, and the provider does not make any customization. Cosmetic customization is used when a standard product or service satisfies almost every customer. It could be said that the product remains standard and it is the wrap-ping that is customized.
Transparently customized products may look like a standard product to the user. However, the provider has studied customer process or behavior in such a way that the product can fulfill the needs of an individual customer. Typically, this requires long-term customer relationships. A customer to take part in the design and fabrication process. The actual customization is done during the assembly phase by combining standard components, and no customized compo-nents need be fabricated. Modularizers use common components in many product lines.
Modularity is built into the product structure and is even used without customization, with customer options being chosen in either the assembly or use phase. Assemblers provide segmented standardized products using modular components. Furthermore, customers can customize a prod-uct by themselves. It has been found that custom product manufacturers are more likely to be fabricators or involvers (Duray, 2002). The existing literature on mass customization has mainly focused on manufacturing oper-ations (Da Silveira et al. , 2001). Moreover, critical aspects are rarely discussed.
Zipkin (2001) points out that there are no mass markets for all customized products. Furthermore, he argues that mass customized products tend to have previously been customized initially on a small scale. It has also been suggested that the era of mass customization may have resulted from the development of flexible manufacturing and information technologies (Da Silveira et al. , 2001). Argawal et al. (2001) maintain that mass production is still useful, at least in the car industry, which they use as an example. RESEARCH ISSUES AND METHOD Customization is a widely studied subject.
However, there are diverse interpretations of what customization means (Spring and Dalrymple, 2000) and how it is conducted. Because custom-ization has typically been used in industrial markets for doing business (Spring and Dalrymple, 2000, Hakansson, 1982, p. 165), it is assumed that companies manufacturing capital goods have a long history of customization. In other words, that there should be an established prac-tice of customization, and workers would have extensive experience in customization. The research questions examined in this exploratory study are the following: What does customization mean in capital goods manufacturing business? * What are the perceived advantages and disadvantages of customization? * What is the crucial point when customizing? Answering the first question gives insight into what capital goods manufacturers mean when they talk about customization. Moreover, it clarifies how customizations are conducted and makes it possible to classify customizations based on the presented frameworks. The second question points out the pros and cons of customization. Moreover, it explains why companies are customizing. The final question answers where the pitfalls of customization are.
Semi-structured interviews were chosen as the method to answer these questions, since itenables the researcher to gain a clear understanding. CONCLUSION The review show that customization is a normal procedure for doing business in the capital goods industry. Customization is seen as satisfying customer requirements with non-stand-ard components. Typically, the core component and design remained standard, but the options were customized. In almost all cases, engineering work was required. The advantages of customization were connected to increased sales volume and customer intimacy.
Moreover, customization was seen as a way to obtain valuable customer information. Extra work and tied up resources were major disadvantages. Crucial factors included the ability to understand and transfer customer requirements into product features. Modular design was mentioned as a pre-requisite for successful customization. The findings of this study are supported by previous studies indicating that customization can increase market share and customer satisfaction (Kekre and Srinivasan, 1990, Ahlstrom and Westbrook, 1999, Simon and Dolan, 1998). REFERENCES AGRAWAL, M. KUMARESH, T. V. and MERCER, G. A. (2001) ”The false promise of mass customization”, McKinsey Quarterly, Vol. 2001, No. 3, pp. 62–71. | | COATES, J. F. and WOLFF, M. F. (1995) ”Customization promises sharp competitive edge”, Research| | Technology Management, Vol. 38, No. 6, pp. 6–7. | | DA SILVEIRA, G. , BORENSTEIN, D. and FOGLIATTO, F. S. (2001) ”Mass customization: Literature review| | and research directions”, International Journal of Production Economics, Vol. 72, No. 1, pp. 1–13. | | DURAY, R. (2002) ”Mass customization origins: mass or custom manufacturing? , International Journal of| | Operations ;amp; Production Management, Vol. 22, No. 3, pp. 314–328. | | DURAY, R. , WARD, P. T. , MILLIGAN, G. W. and BERRY, W. L. (2000) ”Approaches to mass customization:| | configurations and empirical validation”, Journal of Operations Management, Vol. 18, No. 6, pp. 605–625| | | | EISENHARDT, K. M. (1989) ”Building Theories From Case Study Research”, Academy of Management| | Review, Vol. 14, No. 4, pp. 532–550. | | LMORE, J. H. and PINE, B. J. (1997) ”The four faces of mass customization”, Harvard Business Review, Vol. 5, No. 1, pp. 91–101. HAYES, R. H. and WHEELWRIGHT, S. C. (1979) ”Link manufacturing process and product life cycles”, Harvard Business Review, Vol. 57, No. 1, pp. 133–140. COMPANY PROFILE * Literature Review * Vision of the Company * Objectives of the Company * History of the Company * Organization Structure * Board of Directors of I. L. * Kota Unit * The Organization * Products of Instrumentation Ltd. * Customers of Instrumentation Ltd. * Present Status of Instrumentation Ltd. * Future of I. L. * Achievements ;amp; Awards. LITERATURE REVIEW
A literature review is a text written by someone to consider the critical points of current knowledge including substantive findings, as well as theoretical and methodological contributions to a particular topic. Marketing is about making sure that a business is providing the goods and services that customers want. It involves identifying and anticipating what consumers want today and will want in the future. The marketing department then plays an important role in taking these goods and services to market through all the channels the business sells through.
There isn’t much to include in this review as research being done within this company were mostly technical reviews , So just to give an overview here are some of them (Critical analyses of Gas Analysers,2005) also (Study of engineering design of Instrumentation Limited,2005), all of these case studies are technical in approach so not much could be added about the similar Literature Review within the Oragnisation. Marketing is an important aspect of the business. Marketing means to identify customer needs and then providing them. It is very difficult to move global.
Financial success often depends on marketing ability. Finance operations. Accounting and other business functions will not really matter if there is not sufficient demand for products and services so the company can make a profit. To sell the product in a global market is not an easy task. Marketing managers must make major decisions such as what features to design into a new product, what prices to offer customers, where to sell products and how much to spend on advertising. For this a complete understanding related to marketing and stores is must ( Study of Procurement Process of Instrumentation Limited. REFERENCES- www. ilkota. in Corporate Vision To become a leading world class Engineering Organization focused on customer satisfaction in the field of Control Instrumentation; Automation for Core Sector viz. Power, Steel, Refineries ;amp; other Process Industries; Telecommunication; Railway Signaling, Industrial UPS, Knowledge based systems such as IT ;amp; Software and Services; Electrical Transmission ;amp; Distribution; GIS/GPS,SCADA system. Objective of Instrumentation Ltd. 1. Productivity: *To ensure optimum utilization of all the facilities in Manufacturing Division. To ensure optimum utilization of facilities created for manufacturing of Railway Signalling System. *To realize greater operational efficiency, improved productivity and higher capacity utilization and generation of internal resources. 2. Business: *To undertake financial restructuring of the company to be more competitive. *To endeavor to achieve reasonable return on investments. *To further increasing its contribution in the company’s value of production and profitability. *To maintain 10% annual growth in the turnover of the company excluding the bought out items. To revaluate the corporate plan for higher growth and dividend objective. 3. Customers: *To achieve and maintain high degree of customer satisfaction with timely delivery of quality, products and services at competitive rates and also establish customer feedback system. 4. Employees: *To upgrade the quality of human resources and strengthen the technical and managerial competence for growth. *To achieve higher levels of safety standards. *To restructure the manpower by rationalization. PROFILE OF INSTRUMENTATION LIMITED Instrumentation limited is a Govt. f India Enterprise set up in 1964 with the prime objective of attaining self-reliance in the field of Control ;amp; Automation for the process industry. Today IL is manufacturing ;amp; supplying state of the art control equipments on turnkey basis to the various sectors of the industry viz. Power, steel, fertilizer, chemical and petrochemical. Instrumentation limited is headquartered at Kota along with its Commercial Division specialization in power and steel sectors. The regional ;amp; field offices, at different sites look after the installation work.
The marketing division is based in New Delhi with branch offices in Calcutta, Chennai ;amp; Mumbai. IL has its plants at Kota ;amp; Jaipur. With over 35 years of experience ;amp; a dedicated workforce, IL has mastered all complexities of control systems requirements ;amp; can lead right through any industrial project from system designing, to detailed engineering , manufacturing , installation ,final commissioning to after sales service ;amp; customer training. IL is now diversifying in to the field of Telecommunication, Power Electronics ;amp; Railway signalingsystems.
HISTORY OF THE COMPANY Most of the instruments required for Process Control Industries along with main equipments were being imported in early 1960. Process Control Industries were growing at rapid rate, so we import the Instruments. In order to minimize the import to Process Control Instrument and to achieve self reliance in this vital field a decision was taken by the Government of India to set up a Factory (Industry) in the Public Sector to manufacture Process Control Instrument’s and Allied Items.
Instrumentation Limited is a Govt. of India Enterprise set up in 1964 with the prime objective of attaining self reliance in the field of control and automation in the process industry. Today IL is manufacturing and supplying state-of-the-art control equipment on turnkey basis to various sectors of the industry viz. Power, Steel, Fertilizer, Chemical, Petrochemical, Refineries, Pharmaceutical, Cement, Paper, Textile, Space and Oil ;amp; Gas Tele-Com, Flownozal valve Uninterrupted Power Supply (UPS) Mobile Towers etc.
Kota Plant was setup in technical and financial collaboration with USSR and it commended commercial production in the year 1968. As a part of its continued efforts for modernization and standards, the company has entered into technical know-how and assistance agreements within two internationally renowned manufacturers based at Britain and West Germany of Process Control Instruments. The second production unit of the company was established in Palakkad for manufacturing of Control Valves and allied items for which technology is provided by a leading Japanese Company, viz.
Yamatake Honeywell Co. Ltd. the unit commended production in December 1975 and has significantly contributed to overall growth of the company’s financial results with its well established mechanical shops and other infrastructure. KOTA UNIT This plant is located at Kota-Jhalawar Road Kota-5 (Raj. ). It is the birth place of Instrumentation Ltd. This production unit was setup in collaboration with M/s Premmash Export USSR. This plant commenced its sophisticated process control instruments in various ranges.
The Kota plant cater the need of industrial process control instruments required by various Thermal Power Station, Electricity Boards, Steel and Chemical Plants, Chemicals industries, Paper industries and other Heavy Engineering units. Just from the first year of production the company has been successfully supplying instrumentation and control equipments and has achieved all time high record of production, turn over in profit. It has continued to play its vital role in speedy development of process industries through out the ountries in such a brief period and the company has achieved a leading, reputable and important position not only in India but in abroad also. Today, the Corporate R;amp;D center of the company is an independent wing like other units of the company with its own proto-type development shop, various laboratories and other amenties, manned by well qualified technical personnel and headed by Executive Director. I. L. has its registered and corporate office at Kota (Raj. ). Manufacturing facilities accredited with ISO 9000 series.
Quality System Certification are located at Kota ;amp; Palakkad (Kerala). PERFORMANCE AT A GLANCE In the year 2011-12 through sustained efforts of the company for performance enhancement and with the support of Govt. of India and all other concerned stakeholders, the company has been successful in achieving a higher turnover of Rs. 21,998/- lacs as compared to previous year’s turnover of Rs. 17,585/- lacs. The company has also been successful in recording operating profit of Rs. 1,304. 92 lacs for the year 2011-12 as compared to previous year operating profit of Rs. ,091. 74 lacs. The net loss for the year 2011-12 was Rs. 2,450. 84 lacs as compared to previous year loss of Rs. 1,697. 81 lacs Instrumentation Limited has been able to maintain its operations despite various constraints, mainly the shortage of working capital. In recent years despite challenges the company has been implementing its BIFR approved sanctioned scheme and displayed resilience to adopt new economic scenario. Since the implementation of this scheme from 1st April 1999 the business has been upbeat. In fact, the current year i. e. 011-12 has been better than previous year for the corresponding period. The company has been able to address the main constraints of high wage bill due to surplus manpower and high interest cost. Both these factors have been brought down by way of rationalization of manpower and financial restructuring and repayments to creditors. The company has been receiving excellent support from the owner, i. e. Government of India. Further, State Government of Rajasthan has also extended support for raising funds through sale of surplus land at Kota complex.
With all these achievements that company’s business is growing. In the power sector also the company has secured and executed some prestigious orders like Santhaldih project of WBSEB. The company is enjoying technical ;amp; business support from business partners. The company’s capability could also be gauged by other business segments, as it has performed well in supply of state-of-art equipments by way of MAX-XL Telephone Exchanges supplied at over 250 locations throughout the country. The diversified field of Railway signaling and Defence Electronics is also yielding good response.
The company continues to maintain cutting edge of competition through adherence to international quality standards, high standards of customer service in its business strong hold of control Instrumentation and Telecommunications. PRESENT STATUS OF INSTRUMENTATION LTD. IL has incurred additional cash losses because of delay in implementing of sanctioned revival scheme. Due to acute shortage of working capital the company has suffered badly in terms of business. The company has, therefore, submitted a proposal for consideration to the Administrative Ministry. The Administrative Ministry i. . Department of Heavy Industry, Ministry of HI ;amp; PE, has been kind enough to consider the proposal for (a) Government Guarantees for rising funds from Banks/Financial Institutions for reimbursement of additional cash losses (b) reservation of order by 1 for 10% of Annual requirement of BSNL for MAXXL Telephone Exchange with 50% advance for a period of 3 yours (c) steps for JV formation of holding unit. (d) and for VRS. The committee of Ministers has recommended the proposal for consideration of cabinet. The Ministers has recommended the proposal for consideration of cabinet.
The cabinet has also approved this proposal recommended by the committee of Ministers in the third week of September 2001. The cabinet approval of the proposal will enable the company to utilize its manufacturing capacity infrastructure, manpower and get over the working capital shortage. Rationalization of manpower will be ensured by funds for VRS. Reimbursement of additional cash losses will enable the company in bridging the working capital deficit. JV formation is expected to provide technology, finance and marketing input to the company for its long terms viability. Future of I. L.
The company is posed for better growth in the coming years in view of the following – *The sanctioned revival envisages liquidation of substantional portion of the liabilities out of the proceeds as loans from sale of surplus land available with the company at Kota. The government of Rajasthan through Urban Improvement Trust, Kota has invited offers and principal approval has been given in the favour of the highest bidder. The company has achieved the target for manpower rationalization as per sanctioned scheme. However process of rights sizing of manpower strength in commensurate with the business potential will be continued. The sanctioned revival scheme is in its third year of implementation. Joint venture formation of Palakkad unit is at an advance stage. Qualified interested parties have completed due diligence activity. Integration of Jaipur unit with Kota unit is also being taken up. *The company has also undertaken various measures for further improvement in its working such as reduction in cost, reduction in salary and wages through right sizing of manpower, closures of unviable sites, sale of land and building etc. at Sitapur, Jaipur integration of Jaipur unit with Kota and improvement in working capital management.
The company is also pursuing actively the plans for introduction of new products to ensure optimum utilization of existing facilities. *With the implementation of revival package and restructuring business of the company with assured from BSNL for next few years the company is hopeful of turn around. *With recent approval by cabinet for reservation of Telecom order from BSNL will help the company to improve its net worth and financial position. ACHIEVEMENTS ;amp; AWARDS Achievements An order of over Rs. 300 lacs has been received from Corporation Bank or supply of UPS products.
Our regular customers have continued their faith and confidence of IL products by placing orders worth Rs. 436 lacs and Rs. 148 lacs respectively for control values and other flow elements. At Palakkad works cryogenic valve testing facility established for testing valves up to 6 inches size. Valves can be tested up to minus 196 degree centigrades. Also the developments of new valve bodies with higher CV valve were tested. The largest rotary electronic control valve 16″ made in the country with in house design capability. This value was supplied to Formosa Plastics, Taiwan.
All the manufacturing facilities at Kota, and Palakkad revalidated for ISO 9000. Important Milestones Achieved 1964-Established with Registered Office at Kota 1965-C&I Production Commenced 1975-Control Value Production Commenced 1982-Special Temp. Sensor (RTD) for Nuclear Plant 1988-Major Diversification in Telecommunication 1998-Diversification in Defence Products 2001-Production of firing device (Defence order) 2002-Production of large size Telephone Exchanges 2003-Production of special solenoid values for nuclear application (Defence order) ORGANISATION STRUCTURE Board of Director Chairman-cum-Managing Director
Company Secretary Procurement Manufacturing Facilities Business Acquisition Group Marketing Unit Customer Services CP & IT Projects DDC Unit Regional & Site Offices Exports Division Branch Offices Kota Unit Palakkad Unit Subsidiary Unit Corporate F&A REIL Corporate P&A Corporate R&D Chart No. 2 Board of Directors of I. L. Sl. No| | Name and address of Director| Telephone No| Email Address| 1. | | Shri PM Bhardwaj Director (Production) and Chairman-cum-Managing Director (Addl. Charge) Instrumentation Limited, Kota| 0744 – 2426914 0744 – 2424476 0744 – 2426806| [email protected]t. in [email protected] in| 2. | Shri SS Dubey Chief Controller of Accounts Department of Heavy Industry Ministry of Heavy Industry & Public Enterprises Udyog Bhavan New Delhi. | 011- 23061622| -| 3. | | Shri S Jainendra Kumar Director Department of Heavy Industry Ministry of Heavy Industry & Public Enterprises Udyog Bhavan New Delhi. | 011- 23061563| -| 4. | | Shri Mohan Lall Special Director (BIFR) C-1002, Juhu Abhishek Apartment Juhu Versova Link Road Andheri(W) Mumbai-400 053| | | 5. | | Shri S. K. Gupta Director (Finance) Instrumentation Limited, Kota| 0744 – 2427278| [email protected] in| 6. | | Commodore Harphool Singh, VSM Director (Commercial)
Instrumentation Limited, Kota| 0744 – 2426376| [email protected] in| F PRODUCT RANGE OF IL Instrumentation Limited is an ISO 9002 certified multi-unit, multi-product Company that are manufacturing those product which are used by any Industry so there are Industry based marketing. The main products which are manufacture by Instrumentation Ltd. Are given as under……. FAULT TOLERENT CONTROL SYSTEM – FICS Fault tolerant control system, being manufactured in technical collaboration with AUGUST SYSTEM, UK is an ultra reliable control designed for use in critical industrial, control, safely shutdown and monitoring application.
It can be used as a stand – alone control system or be part of a distributed process control system MICRO PROCESSOR BASED DISTRIBUTED DIGITAL CONTROL SYSTEM STARDIC The STARDIC microprocessor based Distributed Digital Control System manufacture in collaboration with M/s Toshiba Corporation; Japan caters to need of flexible and comprehensive process plant instrumentation and controls to obtain energy conservation, improved productivity and quality, increase yield and safe innovative operational techniques. The STARDIC Distribution System is flexible and can be utilized in small, medium or large scale application.
The system architecture dually fits process automation . Where a plant expands physically and functionally involving several phases while still maintaining single loop integrity. ECS-1200 DISTRIBUTED CONTROL SYSTEM This Evolutionary control system is the latest state of the art control system from HF Control Corporation (HFC), USA. HFC, a wholly owned subsidiary of Doosan Heavy Industries & Construction (DHICO) is designer, manufacturer assembler, integrator and distributor of control system & Instrumentation, HFC provides ECS-1200 control system for power plants and industrial plants.
Capabilities include Combustion Controls, Burner/Boiler Management, and Balance of Plant (BOP) control, for combined cycle, Electrical generation, Cement, Nuclear, Petrochemical, and Power etc. ELECTRONIC TRANSMITTERS ELECTRONIC CELL TRANSMITTER, being manufacture in technical collaboration with M/s Fuji, Japan, is of capacitance type, used for measuring pressure, differential pressure, flow rate, liquid level and other process variables. It employs a unique floating cell structure and is available in various compact models with wide measuring ranges. GAS ANALYSERS
It manufactures GAS ANALYSERS and POLLUTION MONITORING INSTRUMENTS in technical collaboration with M/s MANNESMANN HAREMANNAND RAUN, WEST GERMANY. The range covers almost all types of online gas analyzers viz. paramagnetic, infrared, thermal conductivity and pH analyzer- IL’S gas concentration robust design allows these to withstand the stress and strain of everyday industrial operation and can be employed to identify noxious concentration s in environmental atmosphere. IL also offers: i. Zirconium Probe Oxygen Analyzers in collaboration with WESTINGHOUSE. ii. Dissolved Oxygen & Hydrazine analyzer Model Oxyflux-4 in collaboration with Dr.
THIEDING & Co. WEST GERMANY. iii. Steam and Water Analyzers & systems (SWAS) MICRO PROCESSOR – BASED RECORDERS / CONTROLLERS IL now offers microprocessor – based recorders in technical collaboration with M/s ABB KENT, UK. The microprocessor – based strip chart recorder is designed to provide recording of up to six input channels in a compact instrument with improved accuracy, reliability and ease of programming. Besides strip chart recorder this range also includes circular chart and digital display controller. CONTROL VALVES IL manufactures a wide variety of control valves viz. lobe, butterfly, angle, three-way, below sealed, flowing, micro flow, top and bottom guided, double seated, low noise, etc. to cover all conceivable application in technical collaboration with world renowned m/s YAMATAKE HONEYWELL, JAPAN. Pneumatic and electric actuators are also available. SAFETY RELIEF VALVE The SAFETY RELIEF VALVES are manufactured in technical collaboration with M/s NUOVO PIGONE, ITALY. (the world leaders in the design and manufacture of safety relief valve). They give prompt relief at the exact pressure for which they have been set and are available from ? “ to 10 “ with pressure rating of 150 – 2500 ANSI.
LARGE – SIZE SOFT – SEATED BUTTERFLY VALVES Confirming to American Water Works Association Standard, these valves are the best choice as isolation valves for water and gas application. Ensuring bubble tight closure, due to soft seating, these are available in wide range of sizes up to 2400 mm and materials to suit any process requirements. RAILWAY SINGNALING SYSTEMS IL has achieved a high degree of excellence in designing, manufacturing, supplying installation, testing and commissioning of railway signaling systems comprising of panel interlocking, route relay interlocking, color light signaling, etc. he complex circuit design for these systems are carried out on computer aided systems. The manufacturing range of IL in technical collaboration with KYOSAN ELECTRIC MANUFACTURING Co. , JAPAN, includes various types of signaling relays, track circuits, audio frequency track circuit equipment, modernized systems like CTC, SSI etc. CONTROL PANELS AND DESKS For electronic and pneumatic instruments in different types, colors and finishes to suits the customer’s specific requirements. ANNUNCIATIORS
CMOS based Annunciators, based on its in house R&D, are available in integral, wall – mounting and remote configuration featuring all standard requirements. DIGITAL SWITCHING SYSTEMS The digital switching systems being manufactured are based on indigenously developed C-DOT technology. ELECTRONIC PRIVATE AUTOMATIC BRANCH EXCHANGE (EPABX). The system includes 128 and 256p exchange, working in digital environment which ensures high reliability and speed. CUSTOMERS OF INSTRUMENTATION LTD. Customer of Instrumentation Ltd. , Kota are in the following sectors I. Steel Plants Steel authority of India Limited a)Bhilai Steel Plant (b)Bokaro Steel Plant (c)Durgapur Steel Plant (d)Rourkela Steel Plant (e)Tata Iron and Steel Co. , Jamshedpur II. Paper Industries (a)Hindustan Paper Corporation Ltd. (b)Andhra Paper Mills (A. P. ) (c)Mysore Paper Mills III. Power (a)National Thermal Power Corporation (NTPC) (b)Bharat Heavy Electrical Limited (BHEL) (c)Steel Authority of India Limited (SAIL) (d)Durgapur Projects Ltd. IV. Atomic Energy (a)Nuclear Power Corporation India, Ltd. (b)Department of Atomic Energy (DAE) (c)Bhabha Atomic & Research Centre V. Fertilizers (a)The Fertilizer Corporation of India Ltd. b)Shriram Fertilizer, Kota (c)Hindustan Fertilizer Corporation Ltd. VI. Railway (a)Western Railway (b)Central Railway (c)National Thermal Power Corporation Ltd. (d)RITES VII. Defence Products (a)Defence Laboratory, Jodhpur (b)ARDE, Pune (c)DRDL, Hyderabad (d)Ministry of Defence, New Delhi VIII. Textile (a)Grasim Industries (b)Gwalior Rayon Silk Mfg. Co. Ltd. , Nagda (c)Baroda Rayon Corporation Ltd. IX. Pharmaceuticals (a)Indian Drugs & Pharmaceuticals Ltd. Hyderabad, A. P. (b)Indian Drugs & Pharmaceuticals Ltd. , Rishikesh (c)Hindustan Antibiotics Ltd. ISSUES AND FINDINGS
Proper marketing is very necessary for any organization to have a good relation with its suppliers and customers. It is indispensable to managers and workers are doing work with cooperation. Healthy industrial relation is a backbone of industries. Trade union is also essential part of organization. It plays role of mediator between management and workers participation in management is essential for proper management in any industry. Following points are specially noted : *Low awareness in use of technology- The employees are unable to fully exploit the use of new technology like E-mail, Electronic tenders, latest marketing techniques etc. Low awareness on competitor’s information- During my project work researcher observed that the marketing unit was not having adequate market intelligence and there was no well established procedure for gathering competitors information. *The company is overly dependence on landline orders in telecom field- Major portion of the order booking is from BSNL land line exchange, which is reducing. *No customer oriented approach – customer sends enquiry of their own & Instrumentation Ltd. quotes but they do not approach customer make them aware of our products. *Product Information – No seminar, advertisement etc. o make the customer to Know its product range. *No Business Promotion activities is run by IL to boost up sales. *Working environment is healthy, cordial and co-operative. DEFINITION OF RESEARCH METHODOLOGY & DESIGN Research study will be based on collection of primary data as well as secondary. Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. The study of research methodology gives the student the necessary training in gathering material and arranging them. Research Comprises defining and redefining problems, formulasting hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and atlast carefully testing the conclusions to determine whether they fit the formulating hypothesis”. -Clifford Woody Research is an academic activity and as such the term should be used in technical sense. Research is the systematic approach concerning, generalization & formulation of theory. RESEARCH DESIGN It is an exploratory research design. These studies are also termed as formulative research studies.
The main purpose of such studies is that of formulating a problem for more precise investigation or of developing the working hypothesis from an operational point of view. The major emphasis in such studies is on the discovery of ideas and insights. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspects of a problem under study. DATA COLLECTION The task of data collection begins after are research problem has been defined and research design/plan chalked out.
While deciding about the method of data collection to be used for the study, the researcher should keeps in mind two types of data (a)Primary Data (b)Secondary Data Collection of Primary Data The Primary data are those which are collected afresh and for the first time. Primary data will be collected by researches by questionnaire, observation, interviewing the executive engaged in formulating as well as implementation of marketing procedure and its accounting, for the purpose, technique of satisfied random sample will be used and a sample of 15 employees will be selected randomly.
Moreover the researcher will also interview the management and executive, looking after the marketing and store accounting in IL, Kota. in my research I have opted questionnaire method which was filled by marketing department and procurement division. The researcher will also make on the spot study by using the observation technique of data collection. COLLECTION OF SECONDARY DATA The secondary data are those which have already been collected by someone else and which have already been passed through statistical process.
For collecting secondary data the researcher has taken the help of published report/information of IL Accounts and Balance Sheet, Newspaper, Periodicals Journals and Magazines etc. related to this study. After collecting the data by primary as well as secondary sources the researcher has classifed, tabulate and interpret the same by using the various statistical tools and techniques such as mean, mode, median, standard deviation, correlation etc. TYPE OF SAMPLING Simple random sampling technique was used. SAMPLE SIZE While preparing the project report I will take the response to certain questionnaire from IL employees.
The sample of 15 employees has selected randomly. METHODOLOGY CONCEPTUAL FRAMEWORK : INTRODUCTION OF INDUSTRIAL MARKETING Industrial marketing consists of all activities involved in the marketing of products and services to organization (i. e. , commercial enterprises, profit and not for profit institution, government agencies and resellers) that use products and services in the production of consumer or industrial goods and services in the production of consumer or industrial goods and services and to facilitate the operation of their enterprises.
Viewed from the perspective of “Marketing”, industrial marketing is, then, human activity directed towards satisfying wants and needs of organizations through the exchange process. Exchange transactions in the industrial market consist of – (a)Products or Services Exchange (b)Information Exchange (c)Financial Exchange and (d)Social Exchange Product Exchange: The characteristics of the product or service involved have a significant effect on the industrial exchange process. The ease of exchange depends upon the ability of the seller to identity the buyer’s need and the product’s potential to satisfy those needs.
Information Exchange: Information Exchange often consists of answering technical, economic and organisational questions regarding pre and postsale maintenance and servicing. Products must be planned and designed to serve customers. To accomplish this, buyers and sellers tend to work together, exchanging product – specific information over long period of time. Financial Exchange: Financial exchanges may involve such considerations as the granting of credit or the need to exchange money from one currency into another when dealing with foreign buyers. Social Exchange:
Social exchange is important in such areas as reducing uncertainty between buyer and seller, avoiding short term difficulties, and maintaining the exchange relationship over a length transaction period. Many aspects of an agreement between buyers and sellers in the industrial market are not fully formalized or based on legal criteria until the end of the transaction period. Rather, much of the process of exchange is based on mutual trust. Industrial Marketing deals with marketing of specialized industrial products and is quite different from conventional marketing of FMCG goods. The main characteristics of industrial marketing are – 1.
It deals in sale of industrial products. 2. It requires in depth technical knowledge of the product being sold. 3. In industrial marketing Mass advertisement/vigorous advertising through electronic and Print Media is not done. Instead, Personal one to one contact with customer are made. 4. No or very small distribution channels are in this marketing. 5. In most of the cases the seller and buyer know each other. 6. The sale is done through the proper marketing process of tender enquiry, quotation, techno-commercial discussions etc. Difference in Industrial Marketing V/s Consumer Marketing Area| Industrial Marketing| Consumer Marketing| | | Market Structure| Geographically concentrated relatively few buyers oligopolistic competition| Geographically dispersed Mass markets monopolistic competition| | | | Products| Technical complexity customized service, delivery and availability very important| Standardized services, delivery and availability somewhat important| | | | Buyer behavior| Functional involvement rational/task motive predominante technical expertise stable relations interpersonal relationships reciprocity| Family involvement, social/ psychological motives predominate, less technical expertise non personal relationships. | | | Decision making| Distinct, observable stages| Unobservable mental stage| | | | Channels| Shorter, more direct, fever linkage| Indirect, multiple linkage| | | | Promotions| Emphases on personal selling| Emphasis on advertisement| | | | Price| Competitive bidding, negotiating on complex purchase, list prices on standard items. | List prices| | | | | | | | | | Advertising| Practically nil advertising in mass media in this marketing| It heavily dependent on mass media advertising| | | | Contact| Totally dependent upon one to one contact| No one to one contact with users| | | |
Knowledge| Selling requires in depth technical knowledge. | Selling requires no depth product knowledge. | | | | Effective and responsive industrial marketing strategy rests on the industrial marketer’s knowledge of how organizational buying behaviour is affected by forces within the organization. Seldom does an organizational buyer make a decision in isolation. Purchasing decision are influenced by organizational, group and individual forces as well as force within the external environment. MARKETING PROCESS OF INSTRUMENTATION LIMITED MAREKETING PROCESS OF ORGANISATION
Marketing Orgaination consists of head office at Bombay & wide network of regional & branch offices at following places. Calcutta , Delhi , Chennai , Bombay , Durgapur , Guahati , Pune , Vadodra , Visakhapatnam , Ahmadabad , Secundrabad . Orders are booked by their offices &supplies are made from factory. MARKETING ORGANISATION OF SUPPLIERS FOR EQUIPMENT OTHER THAN PROCESS CONTROL INSTRUMENTATION Other suppliers in this category also follow the same line i. e. maximum officers for concentrating on follow up with individual customer & order booking.
There are very large numbers of suppliers in this category vary from very big one like M/s L&T to very small one like M/s RTPL. Most of the suppliers are ready in market for other unrelated &related products with their network of sales services offices which they utilize for this product range also. Marketing Strategy: This differs from supplier to supplier. Big ones like M/s L&T, M/s Ind. Chem. Etc. are trying to cover all over India, while some ones like M/s Kalindi, M/s RPTL are concentrating one or two areas for effective marketing.
Rule of the game for this type of product is low price, fast delivery & efficient after sales services. To achieve this, many companies like M/s L&T are using to fullest extent their large network of stockiest. Dealers, service centre, which already exists for other proud range. Most of the companies are setting up more & more sales offices for regular contacts are following up with potential customers. Some suppliers of EPABX like M/s L&T & M/s Uptron are trying to attract customer by supplying complete system i. e. , both exchange & telephone of their own make with package or erection commissioning.
MARKETING PROCESS Marketing is everywhere. Formally or informally, people and organizations engage in a vast number of activities that could be called marketing. Good marketing has become an increasingly vital ingredient for business success. And marketing profoundly affects our day-to-day lives. Financial success often depends on marketing ability. Marketing deals with identifying and meeting human and social needs. Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders.
The aim of marketing is to make selling superflows. The aim of marketing is to know and understand the customer so well that the product or services fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available. In business markets companies selling business goods and services often face well-trained and will informed professional buyers who are skilled in evaluating competitive offerings. Business buyers buy goods in order to make or resell a product to others at a profit.
Business marketers must demonstrate how their products will help these buyers achieve higher revenue or lower costs. Advertising can play a role, but a stronger role may be played by the sales force, price and the company’s reputation for reliability and quality. The Company is divided into 4 units- Instrumentation Ltd. Kota UnitPDDCMarketingPalghat Unit FactoryUnitUnitFactory Kota and Palghat units are production units, PDDC and Marketing units are Business Acquisition Units. Marketing Units: Since incorporation of the company all selling activities was done by commercial unit.
In 1988-89 commercial units was bifurcated into two units. (i)PDDC Unit (ii)Marketing Unit (i)PDDC Unit: This unit handle all turnkey project of control & instrumentation in segments like steel, plants and Thermal Power Station. In this method production is done accordingly to requirement of customer. (ii)Marketing Unit: The company has product range that include retail industrial products like Transmitters, UPS, SDDS, C-DOT (MAX/XL), Mobile Tower etc. solenoid valves, control panels & desks, Defence products. This unit of the company looks after the sales of retail products.
The marketing unit is headed by General Manager (Marketing) and its organizational structure is shown as below : GM Marketing Delhi KolkattaChennaiMarketing BranchBranchBranchCo-ordination Kota Mumbai Jaipur Hyderabad Branch Branch Branch Each branch is headed by Branch Manager and has officials looking after various products. They contact the customers (Existing and Potential) in their region through various means like personal contacts fax, telephone, E-mail etc. Since IL is making industrial products and not customer durables, the company knows its customers well and customers also know the product range of IL.
Moreover company is more than 43 years old, they have very old and strong relationship with its customers IL enjoys lot of goodwill with its customer & this results in repeat orders to the company. Officials of each branch get enquiries from customers for their requirements and quotations are submitted. Chart No. 4 FLOW CHART OF MARKETING PROCESS IS ADOPTED IN INSTRUMENTATION LTD. This process is explained in details in flow chart. Each step is explained in below paragraph. Receiving Tender Enquiry Submitting Quotation Techno Commercial Discussion Selected lowest price Technically ccepted offer Issuinsg Purchase Order Branch allots O. P. No. (Order Processing Number) and makes MDS (Manufacturing Data sheet) and CDS (Commercial Data sheet) & sends to Kota marketing Co-ordination Kota Marketing Co-ordination makes PP (Production Programme) and sent to PPC (Production Planning & Control) PPC Makes MPR (Material Purchase Requirement) to Purchase Department A A Purchase Department floats enquiry to its vendors Receiving Quotation Techno Commercial Discussions with venders Select lowest price technically accepted offer After receipt of all material required to manufacture he produce PPC Deptt. makes PP to Production Shop & gives MWV (Material Withdrawl Voucher) to Production For Rectification Product Manufacturing If not OK QA (Quality Assurance Checks) if OK If OK not OK Customer inspection Informs Mktg. co-ordiation for inspection If customer inspection Gives QA tag If NO Inspection OK Product finishing and make PCV (Production Credit Voucher) B B Deposit in Finished Goods (FG) Store through PCV Inform to Marketing Kota For giving Challan Marketing gives challan to FG stores FG stores Gives material for Packing & Despatch
Despatch the material & gives all documents to Bill only Marketing Department sent bills to customer & its banker & collection of payment DETAILS OF MARKETING PROCESS of Instrumentation Limited- 1. Receiving Tender Enquiry: Enquiry is floated by purchaser to it known suppliers of the product he requires to purchase. In this enquiry all technical requirements are mentioned by purchaser and he also mention commercial terms & conditions in this document like payment terms, taxes an duties, security deposits for EMD and performance etc. 2. Submitting Quotation Tender:
According to the requirements of the tender enquiry the company submitting quotation mention in this document all technical specifications of the product and also mentions the prices and commercial terms and conditions i. e. excise duty, P&F, sales tax, freight, insurance charges etc. Seller also mentions special terms and conditions regarding payments through Bank/Advance payment. 3. Techno Commercial Discussions: Purchaser receives quotation from many suppliers and evaluates them as per technical specifications required by them and prices quoted by sellers. 4.
Selected lowest price technically accepted offer: After techno commercial discussion the user selects the lowest priced technically accepted offer. After selecting the offer, the user finalizes the terms and conditions with supplier by means of telephonic discussion writing letters meetings etc. 5. Issuing Purchase Order: After receiving the satisfactory reply from the seller the user issues a purchase order to supplier to supply the material as per technically accepted specifications mentioned in the purchase order. Purchaser also mentions the commercials terms and conditions in the purchase order.
Purchase order is a document after which manufacturing process starts. 6. Branch Function: After receiving Purchase Order, Branch registers the order and allots a order processing file no. and prepare manufacturing data sheet and commercial data sheet and sends to Kota Marketing Co-ordination. Order processing file no. is an eight digit number as mentioned below there after this OP No. is used in all codependence processing inside I. L. 9 1 3 0 7 0 0 5 The significance of each digit is explained below : 9=The first digit specifies the unit and 9 is the digit of marketing unit, 8 is for project DDC unit & so on. =The second digit specified the branch by which order is procured. 1 denote Delhi branch 2 denote Chennai branch 3 denotes Kolkatta branch 4 denotes Mumbai branch 5 denotes Defence Marketing Kota 6 denotes Marketing Co-ordination Kota 7 denotes Jaipur branch 3=The third digit specify the order is for the retail order or spare items order. 1 denotes retail supply 2 denotes spare items supply 07=This digit shown the year of the receiving purchase order. For financial year 2007-2008, 07 is used. 005=This number denotes order processing file number. 7.
Kota Marketing Co-ordination makes production programme and sent to production planning and control : After receiving purchase order Mktg. Co-ordination Kota, sent MDS and CDS to production planning control department on online computer system. There is an online system for controlling the manufacturing process. So a production programme is made on online system which is received by PPC Department 8. PPC makes Material purchase Requisition to purchase department: After receiving the production programme from marketing co-ordination the production planning and control department checks the items that are not available in stock.
Then PPC make MPR for not available items and sends to the purchases department for purchasing the required material. This is also done in online system using PPC module. 9. Purchase department floats enquiry to its vendors: After receiving MPR from PPC Department the purchase department floats enquiry to its vendors for the supply of material. 10. Receiving Quotation: After floating enquiry the purchase receives quotations from various suppliers and processes it. 11. Techno commercial discussion: After receiving quotations techno commercial discussions are done by purchase department. 12.
Selected lowest price technically accepted offer: After techno commercial discussion the purchase department selects the offer which is suitable according to the technical specifications and prices. 13. Function of PPC Department: After receipt of all material required to manufacture the product, PPC Department makes Production Programme to Production shop and gives the Material Withdrawal Voucher (MWV) to production and production shop gives MWV to stores and gets all material for making product. 14. Product Manufacturing: After receiving all components from store the production shop starts its manufacturing process. 5. Quality Assurance Department: After manufacturing the items the production shop offers it to quality assurance department for checking the manufactured items as per specification of purchase order. Quality Assurance checks the items and if it found OK they issue a quality tag number and if the item is not found OK then the QA Deptt. returns the item to Product Mgf. Department for rectification as suggested by the QA Department. The production deptt. after rectification, offers the product back to QA deptt. 16. Gives Quality Assurance Tag:
When the Quality Assurance Department Satisfied for the quality of the manufactured item then it gives QA Tag to the manufactured item. If customer inspection is required then production Department informs to marketing co-ordination for calling the customer for inspection. 17. Product finishing and makes production Credit Voucher: After QA certification production department finishes the product and makes production credit voucher document in on line computer system. 18. Deposit in Finished goods store through PCV: After preparing Production Credit Voucher all the finished goods are deposited in FG store through PCV. 9. Inform to Marketing Co-ordination Department: When the Finished product is deposited in store the store department informs to mktg. coordination deptt. for giving challan. 20. Mktg. Gives challan to finished goods store: When the clearance information received by marketing department, it prepares the challan giving all specifications of materials and mention all commercial terms in the challan. 21. Finished Goods stores gives material for packing and Dispatch: After receiving the delivery challan, FG store issues the material to packing department for packing the material and to despatch them. 2. Dispatch the material and gives all documents to Billing Department: When all the documents i. e. delivery challan, packing list, excise gate pass, copy of Railway Receipt/Goods Receipt Voucher etc. are available it is send to Billing Deptt. for raising invoices on customers. Then billing department raised the bills as per delivery challan and send all documents to marketing co-ordination department. 23. Marketing Department sent bills to customer/its banker for collection of payment: When bills copies is received by Mktg.
Co-ordination it is sent to customer/its banker branches office for collection of payment as per commercial terms and conditions, of the purchase order. PURCHASE DEPARTMENT All material is purchased by purchase department in I. L. When company receives order from customer Kota Marketing co-ordination makes production programme and sent to Production Planning and Control (PPC). PPC makes Material Purchase Requirement and sends to Purchase Department for purchasing the required material. In this way procurement action is taken by the purchase department of the company. Purchase department is divided into two parts –
Purchase Department Indigenous Purchase Import Purchase 1. Indigenous Purchase: When purchase made from within the country for fulfilling the order it is known as indigenous purchase. 2. Import Purchase: When purchase made from outside the country for fulfilling the order which the company receives it is known as import purchase. PROCEDURE OF INDIGENEOUS PRUCHASE Analysis of Existing Procedure of store Accounting: 1. Procurement division on completion of purchase procedure (formalities) place the purchase order on supplier and after entering P. O. details in online ERP System, a copy of P. O. s sent to the store accounts. (a copy of P. O. format is enclosed). The copy of P. O. is kept in particular series in respective P. O. file in store accounts. 2. According to the payment terms of purchase order, if advance payment is to be made to supplier, than procurement division after entering the required details in online ERP system in respect of payment, IRL is prepared and is sent along with Performa/confirm invoice to store accounts for further action. (a copy of IRL is enclosed). 3. While preparing the payment voucher, all the terms & condition of P. O. is verified with the PI/Confirm Invoice and with the IRL.
After verification of the PO terms, the payment particulars are recorded in purchase order as well as in supplier’s advance register (manually). Format of advance register is enclosed and thereafter payment voucher is prepared in online ERP System and is sent to cash section for preparation of cheque/DD and controlling the voucher in online system. (format of payment voucher is enclosed) Where the payment to supplier is to be release through Letter of Credit, in such cases, a request for LC opening is sent by procurement to store accounts and LC is opened in bank accordingly.
Either the payment is to the supplier is released through bank on retirement of LC documents from bank or on due date, it depends on the nature of LC (I. E. sight or usance LC). LC opening, payment and retirement of dispatch detailsfrom the documents retired from bank, are recorded in the LC register. 4. When input material is received in IC&S Store, various input details are entered in material module in online system, then receipt voucher and CENVAT voucher (D3) is prepared. Some samples of input material is sent to QA, after approving the quality, the samples are returned to the IC&S store, thereafter R.
V. is controlled in IC&S store and the copy of the same is sent to the store accounts (A copy of RV is enclosed). After verification of P. O. terms, the input material details are recorded in P. O. as well as in supplier is advance register and thereafter purchase voucher (RV voucher) as well as payment voucher (if payment is due) is prepared in online system and both the voucher are sent to book section and cash section respectively of their needful action. 5. A statement of completing items purchased, containing the input details is prepared periodically by procurement/mktg.
Unit/comm. Unit (if PO series is pertaining to KU) and is sent to store Group-I (if invoicing of subject item is done by billing section) and to the store accounts respectively. Further (despatch) sale particulars of the input is incorporated in the statement of completing items and is sent to store accounts. After verification of input details from the PO, necessary details are recorded in PO and voucher for consumption and suppliers account are prepared for onward sending the same to book section.
Where the invoicing of completing items is done by other units as stated above and the PO is placed in KU series, then store accounts sends the fund/other transfer advice to the respect unit. 6. When input material bought for manufacturing has rejected at shop, then QAD form containing the information in respect of rejection of the input, is prepared in nine copies by QA department and a copy of the same is sent to the store accounts, based on the information containing in the QAD, store accounts debits the suppliers account and credit the consumption of indg. material other than W. O. account. (format of QAD is enclosed). When