A

SUMMER INTERNSHIP
&
MINI PROJECTREPORT
ON
CUSTOMER SATISFACTION
AT
LAKHANI FILAMENT PVT.LTD.
SUBMITTED BY: DHRUMIL VEKARIYA
GTU ENROLLMENT NO.:97710592061
SUBMITTED TO : SHRI M H KADKAKIA ISTITUTE OF
MANAGEMENT AND COMPUTER STUDIES
(MBA PROGRAMME)

AFFILIATED TO: GUJARAT TECHNOLOGICAL UNIVERSITY, ABAD

GUIDED BY : MR.VIKAS PANDYA,
ASSISTANT PROFESSOR,
KIM COS.
IN THE PARTIAL FULFILMENT OF THE REQUIREMENT FOR
THE DEGREE
OF
MASTER OF BUSINESS ADMINISTRATION
BATCH: 2009-2010

Declaration

DHRUMIL

VEKARIYA

student

of

SHRI

M.H.KADKIYA

INSTITUTE

MANAGEMENT AND COMPUTER STUDIES, affiliated to Gujarat

University,

hereby

declare

that

the

project

report

entitled

OF

technology
CUSTOMER

SATISFACTION ATLAKHANI FILAMENT PVT. LTD. YARN is a result of culmination of

my sincere efforts.

I declare that the work presented by me is done solely by me and to the best of my
knowledge; no such work has been presented by any other person for any other degree
or diploma.

I also declare that all the information collected from the secondary sources has been
duly acknowledged at appropriate place.

DHRUMIL VEKARIYA

ACNOWLEDGEMENT
It was a feeling of immense pleasure and pride for me that I got this precious
opportunity prepare a project for training as a part of curriculum in Gujarat
Technological University.
This project shall be incomplete if I dont convey the heart felt gratitude to those people
from whom I have got considerable support and encouragement during this project.
Many people have help, provided direction, technical information and its my pleasure to
say vote of thanks to all of them.
I am grateful to Prof. VIKAS PANDYA. He provided me valuable guidance and Kind
cooperation for my Project. I am equally grateful to LAKHANI FILAMENT STAFF
MEMBER

have also provided admirable support for completion of this training

program.

DHRUMIL VEKARIYA

Executive summary

With the latest technologies and state-of-the-art infrastructure ,lakhanis products

confirm an assurance of quality in yarn and fabric. lakhani production facilities boast of
one of Indias most sophisticated textile plants at kim, Surat.
This project is general as well as specialized in marketing. My topic customer
satisfaction of yarn department describes the facts of the customers satisfaction.
Most of the customers are satisfied with the companys activities. But there are also
some issues which needs attention of the company.
For this purpose I have used questionnaire method for collecting primary data. I
also have done personal inquiries to the employees and to the customers also.
Type of the research is descriptive. In the mini project it is clear that most of the
customers are satisfied with the companys activities. There are some interesting facts
about customer satisfaction in it.

TABLE OF CONTENT
NO.

TOPIC
COMPANY INTRODUCTION

Page No.

1.1 Profile of Company

1. PRODUCTION DEPARTMENT

1.6 PERSONAL DEPARTMENT

19

1.7 FINANCE DEPARTMENT

25

1.8 MARKETING DEPARTMENT

30

1.9 PURCHASE DEPARTMENT

35

ABOUT THE TOPIC

50

RESEARCH OBJECTIVE & METHODOLOGY

3.1 OBJECTIVES OF STUDY

53

3.2 RESEARCH METHODOLOGY

54

3.3 RESEARCH DESIGN

55

3.4 DATA COLLECTION METHOD

56

DATA ANALYSIS & INTERPRETATION

58

FINDINGS

67

SUGGESTIONS

69

BIBLIOGRAPHY

70

APPENDIX

72

1.1 Corporate Profile

Lakhani Filament private limited was founded in 1990 by jayantibhai Lakhani,
an entrepreneur of exemplary vision and drive. It started as a modest threeman operation, which was engaged in manufacturing grey fabrics. In 1995,
Lakhani filament became a private limited company with its corporate
headquarters at Lakhani house in surat.
Today, lakani filament is Surats largest yarn manufacturing company with an
annual turnover of over Rs 100 corers, a network of surat, four modern
manufacturing facilities and around 1000 employees. It fulfils yarn needs of a
large number of corporate and commercial customers and has also
established leadership in the field of commercial yarn ranging from different
denier of yarn.
Lakhani Filament manufactures and markets a wide range commercial yarn
ranging from different denier of yarn, different thread of beam and grey fabrics
also .
.The company has manufacturing facilities at Kim, Navapura near G.E.B.
substation.

Which use state-of-the-art manufacturing a wide range

commercial yarn ranging from different denier of yarn, different thread of

beam and grey fabrics also .To ensure that the products have consistent
quality and reliability.
Lakhani Filament has business alliances with world renowned technology
leaders such as reliance,garden silk mills.

1.2 Mission and Vision Statement of Lakhani Filament Pvt.

Ltd.
Mission Statement
To be a reputed,
Profitable and growth oriented
Textile Company.
Employing people to take pride in
Satisfying customer needs with superior
Raw material & sales after services.

Vision Statement
Success is our motto

1.3 Milestones Since Inception

7th Sept. 1990: Establishment of Company Lakhani filament by jayantibhai
Lakhani.
.
1991: Manufacturing of grey fabrics began.
1992: The Proprietorship Company set its sights on bigger expansion,
took on partnership and Lakhani Filament became Textile Company Private
Limited Company.

Present Profile
lakani filament Surat presently Produces mainly Three types of products
in different quality . like as texsurised yarn , Sizing beam and different grey
fabrics. In Texsurised yarn there two types of yarn :-(1) Texsurised yarn, (2)
crimped yarn. Second sizing Unit there are different

types of beam :-

(1)7200thread, (2) 9600 thread etc. Presently Lakhani Filament is in Growth

Stage. It makes Huge Profit. And It is a big record that it earns Larger Profit
in comparison to the other years.

Future Expansion Plans

To

set

up

state

of

Art,

Manufacturing,

set

up

for

manufacturing a Texsurised yarn, sizing beam and different grey fabrics

World class goods and raw materials like . Manufacturing in this plant
will be at roaring, head at market place & good quality product to the
customers.

ORGANISATION STRUCTURE
UNIT HEAD
Mr. Jayantibhai

Head QA
Mr.
dhanjibhai

Head PD
Mr. ashvinbhai

Material &
Planning
Mr.
Rashikbhai

Head marketing
Department

Accounts
Mr. Gandhi
Yarn
department

Beam
department

Grey fabrics
department

1.4 STRUCTURE of products

Kim unit
Products

Grey fabrics

Beam

Different thread
beam

Russian
French cut
Dhupayan etc.

Yarn

Crimp yarn

Tax yarn

Types of Communication Channel

Communication
means

between

sender

means

interaction

between

two

people

it

and receiver. InLakhani filament pvt.ltd. for

Communication following are used:

Phone to Phone

face to face

through .broker

through dealer

Manufacturing Division:
The Company has four state-of-the-art factories at, kim navapura
near G.E.B.substion. which manufacture a wide range of a

texsurising yarn,

sizing beam and different grey fabrics.

Competitive Scenario:
Apart

from

the

huge

infrastructure

development

and

the

introduction of new products across Divisions, Lakhani Filament pvt. ltd. has
focused on keeping its most valued resource is manpower updated,
competitive and able to understand all aspects of Product Development,
Ongoing training is imparted to people at all levels, through in house and
external inputs.
Some of the competitors of Lakhani Filament pvt. ltd.are as under:

Devika (Main competitor)

Vinit

Rajesh filament,

kajariwala

Work Culture
Lakhani filament pvt.ltd.is an organization where the atmosphere is
professional and the culture is warm, informal and open. The Company
believes in an open door policy, freedom to experiment and a free exchange
of thoughts. To encourage this, there are various forums of communication,
such as the staff meets for junior level management grades and the Blue Chip
Club for senior managers. The basic idea is to have a broad platform for an
open dialogue. An in-house journal called the Commoner is circulated
amongst all employees quarterly.

Strategy for Future Growth & Development

To set up of Art Manufacturing set up for manufacturing a
World Class product like a Texsurised yarn, sizing beam and different grey
fabrics Product Manufacturing in this plant will be at Market Place &
Deliver a good quality product to the Customers & provide best quality
to the Customer which is directly related to their vision Which is deliver
a World Class Customers Experience.

Lakhani Filament Pvt. Ltd at Kim

The Factory of Lakhani filament at Kim is the first of the three manufacturing
units of the Company. It was established in 1990, spread across 20 acres of
land, with 600sqmts of built up space.
The first products to be manufactured at the Kim plant were grey fabrics plant
has stayed with the times and has evolved to compete with the best in the
industry. In the recent past, they have modernized their manufacturing
processes. The people at Kim plant are well qualified and geared to achieve
excellence in their areas of work. The same is reflected in the quality of
operations and products.

1.5 Structure Of Production Department

Manager
Production

Asst. Manager

Sr. Engineer
Executive

Engineer/Executiv
e

Supervision

Apprentice

Basically, process work constitutes the core of the a activities.

Firstly, estimate the requirement of raw materials like as poy, yarn, etc.
According to requirement of raw materials order given to the supplier.
The core product is yarn & various types of beam Hence, Assembly is the
core activity of Production Department.
2.2 Introduction

[ I ] Raw Materials Used: The main raw materials used in the manufacturing of yarn, and grey fabrics
are the various types of Poy and beam. Thus following types of p.o.y. are
used:(1) 160/34
(2) 160/72
(3) 150/34
(4) 140/34
(5) 135/34
(6) 126/34
(7) 115/34
(8) 110/34
This includes various beam denier as follows:(1) 75/72
(2) 70/72
(3) 60/100.
(4) 50 bright
(5) Nylon beam
(6) Cationic beam
(7) Roto beam etc.
Other Raw Materials: - oil, kanji etc.
(II) Types of Material Handling Equipments Used
Lakhani Filament Pvt. Ltd. uses the following types of material handling
equipments:-

HOIST: For on-line process in heavy materials overhead crane is used. For
Beam handling, etc.

HYDRAULIC CRANES: It is also used to lift heavy materials. And its

capacity is 5 to 25 tones. It Can go to 5 to 6 m height. And Works on batter,
petrol and also diesel and electricity. And its weight is 2.5 tons

.STECKER
10

PALLETE HAND TROLLY

HAND TROLLY
FORK LIFTS: Used to lift the Bundles and other such materials

(III) Co-ordination between Store & Production:

Stores and Production both are interrelated activities. They co-ordinate in the
following way:
The PPCS department decides the no. of units that are to be manufactured.
Based upon this plan PPc department runs ERP software Daily Resource,
Planning. This will give detail list of all the materials those are required and to
be requisitioned from stores. The production department prepares a

11

requisition slip filing a list of items that are to be sent by stores. Both
departments maintain records of material transfers.
Purchase & Production:
The person in changes of purchase planning & procurement daily sends the
quantity of products that are to be produce daily & based upon this the
production is planned in shop floor.
As per the production requirement, purchase department will purchase the
items. It requires along with specification the detail and the purchase material
of specified quality right quantity at right price and right time.

Production & Dispatch:

Once the products are packed and Information of particular product i.e. lot no,
denier of yarn and Sr. No. are written on the packing. Daily production memo
is maintained in which the lot and the Sr. No. are also written. The person
from Dispatch / Excise will close the book and only then the products are
permitted for loading.

Production unit is mainly divided into five divisions :

Air Tex division

crepe division

Texsurising division

sizing division

weaving division

12

2.3 Texsurising division

Flow Chart for Texsurising division

RAW
MATERIAL
(POY)

S QULITY

Z QULITY

PRIMARY HEATER
AFTER
COLLING CHANNEL

UPRON BEALT after

PASSING INTO
THE SECONDARY
HEATER

Finally yarn filling into

rill

13

Explanation:
In Lakhani filament pvt.ltd. using DX3Mdraw texsurising machine make by him
son engineering .in this machine include 336 spenders. In Lakhani filament
pvt.ltd. two type of yarn manufacturing (1)crimp yarn(2)tex.yarn.in texsurising
machine p.o.y. used as raw materials . poy order given by purchase manager
as per require denier .
: Denier means = parameter which indicates the weight of 9000 meter yarn
its called as denier.
Filament means = how many threads turn- rounded to each other to became
one thread its called filament.
Different between crimp yarn and tax Yarn dependent on the temperature
level set for heater in texsurising machine. Other measures also required for
maintaining different between crimp yarn and tax yarn. But its more technical
so not described here.
crimp yarn = when heater temperature set 40 c or less at time machine
produced crimp yarn.
Tex yarn = when heater temperature set between 150c to 175c at time
machine produced Tex yarn.
First of all required poy as raw material. This poy loading into the
machine according to spenders
second stage poy passing into primary heater so thread became strong
after this process thread passing into cooling channel so hot thread
became cold.
Third stage cold thread passing into secondary heater so again thread
became strong and no chance for weak thread produced.
Here oil mixing into thread so thread passing smoothly in all parts of
machine and thread shining also increase
.Finally thread filling into rill and its checking by checker and remove
the defective yarn
At last check yarn packing into carton and labeling on carton.

14

2.4 sizing beam

[ II ] Flow Chart Of sizing beam
JUMBO BEAM

KANJI TANK

DENTING

HEATER

3ROUND HEATER

DENTING

BEAMER

CROSSING THREAD

PACKING

15

INTERPRETION
first of jumbo fitting on sizing machine after all thread of beam denting and
passing into the kanji tank so all thread became strong and kanji chemical
mixing into the thread
.second process passing thread into the heater so all thread became
strong
Third step all gravy thread became enter into 3round heater so all
thread quickly dry
fourth stage denting all thread
Finally according to our requirement we can adjust beam into beamer.
If we required 9600 thread beam so we can use 8 beams together and
denting the thread on beamer so all are filing into the beamer.

16

WEAVING Process Flow Chart(WATER JET)

for weaving use

vertical thread
from the beam

for weaving use

horizontal thread
as crepe yarn.

Loading the
beam &denting
the thread
Compress
water with
pumps
OK
Nozzle jet

Weaving
thread
Passing into
cuter

Wastage

Finished grey
filing into pipe
Checking

PACKING
17

Explanation:
The beam thread fitting into the machine and denting of the thread in
machine shuttle and for horizontal thread crepe yarn using for water jet
machine.
second stage horizontal yarn crossing in vertical thread through water
pump presser and its very quick process in water jet machine.
after this process weaving the grey and passing into t round cutter
which remove the wastage thread on grey so fist quality grey febrics
produced
final stage grey fabrics filling into the pipe. and checker cheek the grey
and preparing grey taka. And write down length of grey also.

18

19

1.6 PERSONAL DEPARTMENT

Function of Time Office
Posting the leaves in muster book.
Keeping the records of leaves Travel allowances, Identity Card register, issue
register, welfare items.
To maintain the records of employee state insurance
To prepare & maintain the Provident Fund & declaration forms. Appointment
letters & Identity Cards etc

Details in Employee Personal File

Various details that are kept in the employees file are as follows:
Application form of employee.
Employment offers Letter.
Interview assessment form.
Copy of appointment letter.
Medical Fitness Certificate of the employee.
Conformation Letter.
Performance appraisal form.
Copy of all certificates and testimonies related with qualifications and
experience of the employee (like Proof of Date of Birth, Leaving
Certificate)
Salary Details.
Confidentially Report.
Warming Letter, e.g. memos
Copies of nomination forms in respect of PF, ESI, etc, as per
applicability.
Copies of all other communications.

20

Recruitment Process
The Recruitment cycle starts with either of the following:
Receipt by management of the Recruitment Approval Form clearly defining
the job profile (job description, responsibilities, designation, proposed grade,
reporting level, location of posting) and personal profile (age, qualification,
experience, etc.) duly approved by the concerned VP/ED
General Recruitment:
Based on the information available in the recruitment approval form and after
discussions with department/division head if necessary, the management
shall create a complete candidate profile. This profile will be displayed on the
Companys notice board/BSL bulletin board and recruitment portals as well as
handed over to selected placement agencies.
All applications received from different sources shall be screened by the
management who will shortlist candidates whose profile matches with the
desired profile.
A preliminary interview of the short listed candidates will be carried out
by the HR Manager to ensure the validity of the details given in the CV. Apart
from the necessary qualifications and experience, the management shall also
look for stability of the candidate in previous job, involvement in industry
forum, extra-curricular activities, etc.
The CVs of the candidates short listed by the HR Manager shall be
sent to the department/divisional head for vetting. The final list of candidates
to be called for the interview shall be decided after the applications have been
vetted by the departmental manager.
management shall call the short listed candidates for the interview on a
convenient date.
Internal Applications
Depending on the grade, the internal applications will have to be sent to the
regional HR dep. or the Corporate HR. The internal candidate shall go
through the same interview process as given above.

21

Selection Process
Selection of all candidates other than at entry level shall be based on personal
interviews. The candidates will be put through a psychometric test and a
written communication test before being interviewed by the interview panel
members.
During the interview at various levels, behavioral competencies

of the

candidates required for the job along with the function skills will be assessed
by the interviewers.
Process for issuing offer letter/appointment letter
For the selected candidates the compensation package shall be explained
including all the components in the package and an agreement arrived at.
For selected candidates at campus, an offer letter shall be issued on the day
of the selection.
Formal appointment letter shall be issued on the date of joining.
Panels decide the transfers to be done. That is Plant Head and concerned
department head form a panel and then they discuss the transfer to be given.

Promotion Policy
Promotion is the advancement of an employee to a higher post carrying
greater responsibilities, higher status and better salary.
If a person gives good performance and is also capable of doing more and
better job, then he is promoted to a higher position
In this way a competitive spirit is also developed and accordingly employees
try hard to achieve the standards.
They provide this to use an employees skills in a better way and where it is
needed and hence to give an opportunity for continuous service.
All the criterias are seen first and then based on that percentage are
Calculated.
Weightages given in KRA are taken as base and then based on that
employee is promoted.
Also necessary qualification and performance, potentialities, etc are seen.
Thus, then concerned authority does the rest of the work needed.

22

Wages & Salary

For management staff salaries are revised based on study of market
requirement and normally it is revised upward. For workers and General staff
wages are settled through 3 years Settlement system.
Salaries and increments are decided for M- staff based on his or her
performance during the previous financial years and rating is finalized.

Administration & Security Activities

Security Activities

To look after visitors at the gate.

To control & safeguard man, machine and material.

Various passes are maintained for employees and visitors.

Two Registers are kept for Material inward and Material Out ward.
Noting the in and out time of all officers.
Administrative activities
Lakhani Filament has the following administration activities:Telephone, Electricity, Billing system, Food arrangement, working conditions
for all employees, Maintenance of all facilities
Transport:-No transport facility is provided to the employees of Lakhani
Filament Pvt. Ltd .instead they are given the conveyance.
Conveyance includes the amount given to the employees for their travel
expenses from home to the company.
Also they have administration of Security.
There are total six permanent security members. With no contract. And they
are responsible

for :-

All Security Functions

House Keeping

Recruitment of Temporary workman

Safety Functions.

23

Performance Appraisal
Performance Appraisal is the process of evaluating the performance and
qualifications of the employees in terms of the requirements of the job for
which he is employed, for purposes of administration including placement,
selection for promotions, providing financial rewards and other actions which
require differential treatment among the members of a group as distinguished
from actions affecting all members equally.
In Lakhani Filament Pvt.Ltd, Performance Appraisal is done on KRA. Various
aspects of an employee are seen such as ability of taking high responsibility,
good, performance, etc. They do 180 degree Appraisal. That is Appraiser and
Appraise both sits together and discusses the results, related to their
performance.
Lakhani Filament Pvt. Ltd does performance appraisal on yearly basis. That is
from April to March.
It is done by every departmental head.
This includes all the levels
Firstly the KRA is fixed.
Key Result Area (KRA):KRA means the standards to achieve by the rate is fixed and
communicated to the employees. After this the performance of the rate is
measured. This includes performance below the fixed standards and also the
performance above the limit specified.
Then the rating is fixed. Different rates are given to the employees according
to their performance.
The measured performance gives the results in the ratings.
Then after Plant Head and Vice President sits for the performance review with
the employee. Rates are given based on grades.

24

25

1.7FINANCE DEPARTMENT
STRUCTURE OF FINANCE DEPARTMENT
Department structure
MANAGING
DIRECTOR

FINANCE manager
(Mr. Gandhi )

A/CS EXECUTIVE

ACCOUNTANT

ACCOUNTANT

Every company has to expense money on the basis of requirement. If there is

small company than they incur less expense on making product but incase of
big company they have to incur huge amount in expense for making product.
Costing of the Main Product
Mere knowledge of total cost cannot satisfy the needs of management. For
proper control and managerial decision, management is to be provided with
necessary data to analyse and classify costs. For these purpose, the total
cost is analysed by element of cost i.e. by the nature of expenses. The
elements of cost are three i.e. material, labour and other expense. These
elements of cost are further analysed into different element as in the following
chart:

26

Element of cost

Material

Direct

Labour

Indirect

Other

Direct

Indirect

Indirect

Overheads

Productio
n or

Administr
ation

Selling
overhead

Distributio
n

Costs are classified according to their behavior in relation to change in the

level of activity or volume of production. On this basis, costs are classified into
three groups i.e. fixed, variable, and semi-variable

Working Capital Management

They calculate monthly finance needed by the plant. And whenever more
money is needed, they inform the corporate office and accordingly they get
the required money.
Every month the financial plan of all major heads, suppliers, tax, etc and send
to corporate office.
As per the indent the plant produces the product and then they dispatch it to
the respected branches.
Hence they dont need much working capital.
Billing is done to the branches i.e. they send the orders or the finished goods
to their branches who had given them indent and according they generate the
inflows.

27

Taxes
Type of Taxes:
Sales tax
Local sales tax
Central sales tax
Service tax
Income tax
Local tax
Wealth tax
Municipal tax

4.4 Annual Business Plan

Lakhani Filament Pvt. Ltd in the Kim Plant does not prepare and Budget.
Instead they make an Annual Business Plan. The budget is prepared at the
Corporate Office.
The heads and other persons make an ABP.
The entire indents from all the branches are taken into account.
A DRP is made for three months and is sent to the production department and
the production head accordingly makes his schedule for the production.
Hence according to that schedule different denier of yarn and beam are
produced.
Also the dispatch date is mentioned. This schedule is made by accounts
department. And they maintain all the dates and so they dispatch the products
ready for the same.
The plant prepares the ABP and send to the Corporate Office and accordingly
they get the finance.

Accounting Method
Double entry book keeping system is followed. And the responsible person
makes the entries for the same.

28

Meeting
Lakhani filament conducts all the important meetings. AGM is also
conducted annually. There is a good system of meeting for the operators also.
In this type of meetings all the operators are informed about the position of the
company and dispatches done in the particular month. Also the new product
development plans are shared with them.

Computer Software
There is a main system working in the whole factory. This software is
known as Baan. This software includes the details of all the things. In finance
it is very helpful to see the prices of the different materials and according they
calculate the costs. Hence this system is very helpful to get the all other
information.

29

30

1.8 MARKETING DEPARTMENT

Product Profile
Basically Lakhani filament pvt. ltd. are manufacturing many
products. Its lines of business is:-

Line of business

Grey fabrics

Yarn as Industrial
raw materials

Sizing beam

Customer Profile
lakhani filaments pvt ltd. has mainly focused on the business market. As for
business markets Lakhani filaments pvt. ltd has different segments which are
as follows :

31

SEGMETATION OF THE YARN

Segments

Repair
looms

Waterjet

Shuttle
looms

Dyeing
house

For crepe
machine
owner
For traders

TYPES OF MARKETING...
Mainly there are two types of marketing used are as following:

1. Direct Marketing.
2. Indirect Marketing.
Marketing

Direct
Marketing

Indirect
Marketing

32

1. Direct Marketing:Direct marketing mean the product are directly used to consumer. It
is the deal between Manufacturing and consumer. There is no
midget between this.

2. Indirect Marketing:Indirect Marketing mean the product are not directly used to consumer.
First, product is given to the dealer and then dealer are give consumer.
Here the dealer is between the manufacture and consumer. It is the deal
of Manufacture, Dealer or Agent and Consumer.

As Lakhani Filament has focused on business markets so there 80% sales is

indirect sales.
As for distribution channels is concerned LAKHANI FILAMENT PVT. LTD. has
SURAT CITY.
For getting the customers Lakhani filament have given
these managers responsibility to get customers in their particular area. In this
way lakhani filament is able to get the business customers.

Promotional Activities

After sales services

incentive

commission

In case of business markets, Lakhani filament always look out for any new
commercial complexes being build and they exhibit their products to the
persons building the complexes and in this way they inform the potential
customers about the. Lakhani filament yarn.

33

Competitors
The competitors of Lakhani filament pvt ltd. are:
(1) Raj rayon
(2) Devika (Main competitor)
(3) Vinit
(4) Rajesh filament
(5) kajariwala

34

35

1.9PURCHASE DEPARTMENT

Department Structure

Head - Materials

Engineer - Materials

Responsibilities
Engineer Materials:

Order Acceptance & Review

Production Planning

Materials Planning

Supplier Selection & Evaluation

Corrective & Preventive action related to suppliers

Purchase Procedure
First of all the Plant receives the indent from all over the branches. This
includes the ordered and the forecast number of the products.
According to the indent the ABP (Annual Business Plan) is prepared.
This indent includes both i.e. the products for Domestic and for Export
purpose also.
Accordingly the person prepares a Delivery Schedule. And also he prepares
the DRP (Daily Resources Planning).
The purchase person keeps the record of all the acceptable suppliers. They
first do the evaluation of all the suppliers.

36

Vendor rating is calculated every 3 months and the supplier is informed about
the rating.
Then the Purchase Order is given to the accepted supplier.
All purchase order contains adequate data to enable the supplier to provide
the correct quality and quantity of materials or service.
Purchase orders are reviewed and approved by the relevant authority before
release to supplier.
The incoming products are then identified and not processed until it has been
inspected and verified through test certificate in accordance with the
inspection layout.
Thus when the materials are properly inspected and verified, they are
approved by an OK sticker.
Then the materials are stored in the Stores

Supplier Selection
Engineer Materials shall maintain an approved suppliers list.
In case of new suppliers, it shall be approved based on information collected
and subsequent assessment. For the foreign suppliers the suppliers shall be
approved based on the product development inputs.
For the standard items, the items shall be purchased from any source. No
supplier assessment shall be carried out.
For the new supplier, the supplier evaluation form shall be given to the
supplier. Moreover, the personnel from QA / Material shall visit the supplier
and fill the supplier evaluation form.
The supplier who has scored above 60% during the assessment shall be
approved. Based on the assessment, the drawing / specification shall be
given to the new supplier for getting the sample.
During the sample inspection, if the component is rejected then the supplier
shall be informed about the rejection reason and the fresh sample shall be
asked.

37

After approval a pilot lot shall be obtained from the supplier by raising a
purchase order and on acceptance of it the supplier shall become the
approved supplier.

Supplier Rating
The supplier rating shall be computed for the following parameters :

Quality at the incoming stage

Quality at the processing stage

Performance of the product in the field

Delivery

Price

Responsiveness

Documentation

Based on the above parameters, weight age shall be given out of 100
Quality at the incoming stage

20 marks

Quality at the processing stage

20 marks

Performance of the product in the field

20 marks

Delivery

10 marks

Price

10 marks

Responsiveness

10 marks

Documentation

10 marks

The supplier rating shall be computed every 3 months of the suppliers. And
the same shall be intimated to the supplier if the rating is below 50%
In case a rejection or failure is observed during production or in the field then
a negative marking of 5 shall be given to the each incident.
For the suppliers those who have scored less than 50% shall be given a
chance for 6 months to improve their performance. Till such time the material
may be purchased from such supplier.
The list of the approved suppliers shall be prepared and its copy would be
maintained by Quality Assurance & Materials.

38

Re evaluation of the supplier shall be carried out under following situations :

When the supplier rating is below 50% consistently for one year.
When the existing supplier has been selected for the supply of new category
of item.
When the customer complaint is received repeatedly on the item supplied by
the supplier.
The re evaluation shall be carried out by revisiting the supplier and evaluate
the supplier facility and methods.

39

40

1.10 Department Structure

Head - Stores

Officer - Stores

Operator - Stores

Responsibilities
Officer - Stores:
Officer Stores reports to Head Stores and is responsible for
Receipt of material
Preparation of GRN
Issue of material to production
Control of rejected material
Dispatch of spare parts
Operator - Stores:
Operator Stores reports to Officer Stores and is responsible for
Unloading of material
Counting
Issue of material to production
Packing of spare parts
Storage & identification

Receiving Store
On receipt of the material the gate entry shall be made by the security and a
stamp shall be put at the backside of the challan and then a record would be
made in the inward register.

41

The material shall be unloaded in the stores and the number of packets would
be verified against the challan.
If the number of packets is found as per the challan then the challan would be
endorsed with receipt stamp and the copy would be given to the driver of the
vehicle. In case the material is found damaged the number of damaged
packets shall be written on the challan and the sign of the lorry driver shall be
taken on the challan.
Moreover, if the quantity of the material is not found according to the challan
then the same shall be informed to the supplier.
The Quality assurance Inspector shall carry out inward inspection and after
inspection of the receipt material GRN would be prepared and simultaneously
it would be entered in the BaaN computer system.
After acceptance three copies of GRN would be distributed to the respective
departments.
Copy 1 : To accounts ( Original )
Copy 2 : To supplier
Copy 3 : Retained in the stores
7.4 Issue
The production department shall prepare shop floor indent and hand it over to
the stores. The Stores Executive shall issue the materials against the indent.
For the bulk items, where the quantities cannot be split then in that case the
material shall be issued to the production based on the bulk issue slip.
The issue details shall be entered in the BaaN computer system.

Inventory Management System

In accordance with the ERP (Enterprises Resources Plan) DRP is prepared
and based on that all the materials are ordered.
Safe unloading, quantity, QA checking, approval of the materials, etc is seen.
Thus then the raw materials are consumed.
Thus raw materials are maintained on the basis of A-B-C system.

42

While the finished goods are dispatched immediately as the products are
ready. According to the DRP the date is fixed and so dispatch is easy. It is
dispatched as per the specifications.
Hence as per the indent, materials are dispatched.
They follow a timely execution of order and dispatch. Also it is helpful to keep
a co-ordination with all the branches.

7.6 Material Coding System

Material coding is done as per the convenience to find the materials easily as
and when needed.
No material is given the name; instead the materials are given different codes.
Blue Star has nearly total 3000 codes.
There follow alphanumeric system. In which 9 digits are Alpha and 6 are
Numeric.
Alpha indicates the initial name of the material while numeric indicates its size
and different indications.
Hence it is easy to find which shelf contains what material in the stores. And
also it is easy to arrange it properly

43

44

1.11QUALITY ASSURANCE DEPARTMENT

Department Structure

HEAD - QA

SR. EXECUTIVE- QA

INSPECTORINWARD

ENGINEER - QA

ENGINEER RELIABILITY
& AUDIT

INSPECTORINSPECTION

INSPECTORRELIABILITY &
AUDIT

Responsibilities
Executive Quality Assurance

In process inspection and final inspection

Defect control

Non confirming product control

Customer complaint handling

Corrective & preventive action

Site Visits

Engineer Quality Assurance

Inward inspection

Defect control

Liaison with suppliers quality improvement

Engineer Reliability

Reliability testing of products

Product Audit

45

Process Audit

Data analysis

Preparation of audit planning

Inspector Process Inspection

Inprocess inspection & final

Report preparation

Maintenance of drawing

Inspector Reliability And Auditing

Auditing of product and process as per check list

Report preparation

Inward Inspection
On verification of the challan by the Incharge Stores, a GRN shall be
prepared and entry is made in the computer. Then the challan is handed over
to the Engineer QA for the purpose of inspection.
On receipt of the challan, Inspector checks the list of supplier whether the
components received are from low rating supplier or not. This is done
because if the supplier is from a low rating one then Inspector has to draw the
sample according to that sampling plan.
After carrying out inspection Inspector endorses the number of samples
inspected and the inspection results at the backside of the Chalan. If the item
is rejected then the Rejection Details shall be entered in the BaaN ERP
system. And supplier shall be informed about the details of the rejection.
The components are then send for testing to external agencies.
Based on the inspection findings the Engineer QA takes the decision of
acceptance or rejection. The decision of acceptance or rejection shall be
entered in the Baan system.
All accepted lot shall be shifted to the stores & rejected lot shall be identified
by REJECT tag.

46

In process Inspection
During production process, Engineer Quality assurance shall conduct
inspection according to the plan. If any abnormality is found then the same
shall be informed to the Production Engineer.
In case the inspection parameter is visual then the operator / Engineer Quality
assurance checks the piece visually by comparing with the limit sample.

Field Quality
quality Assurance department ensures that the complaints that come about
the product from the field shouldnt be received again by taking necessary
measures. Whenever the complaint is received it is first documented and
scrutinized by QA. QA then analyze the problem and suggest necessary
changes. Changes could be in critical component which may be
malfunctioning for
which vendors may be notified to take necessary action. It may be a
process defect for which manufacturing and production departments will
be notified.

47

48

1.12 Department Structure

HEADACCOUNTS &
EXECUTIVEDISPATCH

Responsibilities
Executive- dispatch:
Dispatch of finished goods and spare parts
Co-ordination with branches
Dispatch planning
Co-ordination with transporter
Excise
Liaison with government official related to dispatch and excise.

Mode of Dispatch & Logistic

Truck (99%)

Courier

Dispatch Procedure
Firstly the Executive-Dispatch discusses with respective production heads
and prepares the Dispatch Plan.
Based on Dispatch Plan, the materials are dispatched.
Based on DPM (Daily Production Memo) received from the Production
department, the truck is called.
After the receipt of product from the production the product is loaded in the
truck.
Sales-cum-invoice and other such invoices are prepared.
Dispatch details are also sent to the branch office by Mail.
Along with each invoice a Confirmation Memo is also send

49

50

CHAPTR =3 BRIEF VIEW OF THE TOPIC

DEFINITION OF CUSTOMER

A customer is the most important person ever in this officein

person or by mail.

A customer is not an interruption of our workhe is the purpose of

it. We are not doing favor by servicing himhe is doing us a favor by
giving us the opportunity to do so.

A customer is a person who brings us his wants. It is our job to

handle them profitability to him and to ourselves.

DEFINITION OF SATISFACTION
Satisfaction is the level of a persons felt state resulting from
comparing a products performance in relation to the persons expectation.

TOTAL CUSTOMER SATISFACTION

The satisfaction is a function of the difference between perceived
performances and experience one of three levels of satisfaction:

If the performance falls short of expectations, the customer is

dissatisfied.

If the performance matches the expectations, the customer is

satisfied.

If the performance exceeds the expectations, the customer is highly

satisfied.

TOOLS FOR MEASURING THE CUSTOMER SATISFACTION

A COMPANY TOOLS FOR TRACKING AND MESAURING CUSTOMER
SATISFACTION RANGE FROM THE PRIMITIVE TO THE SOPHISTICATED
.Companies use the following methods to measure how customer satisfaction
they are creating.

51

1. Complaints and suggestion system

2. Customer Satisfaction surveys
3. Ghost shopping
4. Lost customer analysis

(1)Complaints and suggestion system:A customer centered organization makes it easy for customer tools register
suggestions and complaints. Companies are also using websites and e-mail
for quick, two way communications.

(2)Customer Satisfaction surveys:Responsive companies measure customer satisfaction directly by

conducting periodic surveys. While collecting customer satisfaction date, it is
also useful to asked additional questions to major repurchase intention and to
measure the likelihood or willingness to recommend the company and brand
to others.

(3)Ghost shopping:
Company can hire people to pose as potential buyers two report on
strong and weak points experienced in buying companys and competitors
products. A variant of this is for managers to please their own company with
question and complaints to see how this calls are handled.
(4)Lost customer analysis:Companies should have contact customers who have stopped
buying or also have switched to another supplier to know this happened. Not
only it is important to contact exit interview whencustomers first stop buying; it
is also necessary to monitor the customer loss rate.

PROBLEM IDENTIFICATION
The main outcome of the problem identification stage is to set the overall
purpose and objectives of the customer satisfaction and to determine the
likely data requirements

52

I have conducted research study at Lakhani filament private limited.

Now Lakhani filament itself wants to know the customer satisfaction level of
Lakhani filament yarn user with respect of the performance and expectation.

SCOPE OF THE STUDY

The study would target customers such as weaver of Surat city.

3.1 OBJECTIVES OF THE STUDY

To measure level of customer satisfaction towards pricing polices

of Lachine filament.

to study credit policy offered by the company

to measure the behavior of the employee while transaction made

by buyer

Evaluate the level of satisfaction of the customer towards Lakhani

filament.

Evaluate the company system of placing the order.

to measure level of customer satisfaction towards product quality.

SIGNIFICANCE OF THE STUDY

The study will help the company to determine customer satisfaction as well as
the company can grow its circulation.

LIMITATIONS OF THE STUDY

The Geographical area is very large and time period is very short for the study
of whole coverage.
Time consuming.
The research study is limited to Surat city.
Sometime customer may give wrong information.

53

Research Methodology

Research
Marketing Research
Research Design
Sources of Data
Data Collection Methods
Research Measuring Instruments
Pilot Study
Sampling Plan

54

RESEARCH
Research is careful inquiry or examination to discover new information
and relationship and to expand and to vary existing knowledge

MARKETING RESEARCH
Marketing

research

is

one

of

the

best

instruments

to

identify

customer/consumer market and marketing strength and weakness as well as

our product performance, awareness etc.

3.2 RESEARCH DESIGN

Research design is the plan, structure and strategy of investigation
conceived so as to obtain answers to research questions and to control
variance.
- According to Kerlinger
A research design is the specification of methods and procedures for
acquiring the information needed. It is the over-all operational pattern or
framework of the project that stipulates what information is to be collected
from which sources by what procedures.
- Green and Tull.
A research design is the overall framework or plan used for the
collection and analysis of the data in the market research project. In is broadly
classified in to three categories.

Exploratory

Descriptive

Causal

55

SOURCES OF DATA
Primary Data
1. Questionnaire,
2. Clients
Secondary Data
1. Different information collected by employee

3.3 DATA COLLECTION METHOD

There are mainly two types of survey method.

Sample Survey

Census Survey

There are three types of data collection method:

Personal Interview

Telephonic Interview

Mail Interview

In this study I use Personal Interview method for data collection.

After the research design has been selected next important steps is to collect
the data. It is very vital step since the accuracy if data collected is dependent
upon the data collection method. There are two basic types of data;

Primary Data

Secondary Data

PRIMARY DATA
Primary Data is collected by direct personal interview of customer to know
about the Satisfaction of consumer to subscribe the newspaper.
SECONDARY DATA
Secondary data collected from Books. And also collected from company
literature and Internet .

56

RESEARCH MEASURING INSTRUMENTS

The most popular research instrument for collecting data is Questionnaire
and Observation Method for a particular investigation.
The questionnaire is a list of questions to be asked from the respondents. It
also contains suitable space where the answers can be recorded.
The questionnaire includes three types of questions:

Open Ended Questions

Dichotomous Questions

Multiple Choice Questions

PILOT STUDY
A pilot survey was undertaken of about 20 in Surat city prior to start the main
survey. The pilot survey has taken from near sachin & udhana. The other
aspects of the study was whether they able to answer the questions or not.
Still another question answered by the study was whether the customers were
willing to provide the required informations without much hesitation. By, this
the shorting of the questionnaire are removed at initial stage.

SAMPLING PLAN
A part of a population, or a subset from a set of units, which is provided
by some process or other, the number of items to be included in the sample
i.e. the size of the sample, sample design is determined.
I determine the Sample size on the basis of pre-testing of 20 samples out of
200 population size.

57

CHAPTER 4 =Data Analysis & Interpretation: -

Data has been very careful analysis and interpreted information is tabulate &
graphically presented so as to interpreartaion the level of customer
satisfaction level
. (1) state the satisfaction level with the pricing policy of a company

comparing with other companies

Sr.No

Option

Frequency

Per(%)

Highly satisfied 14

70

satisfied

20

Dissatisfied

10

Highly

20

100

dissatisfied
5
TOTAL

Neutral

58

As per the above graph we can conclude that most of the customers (70%) of
the company are satisfied. Company is serving best price as per its quality to
its customers. Only 10 % of the customers are dissatisfied with the pricing of
the company. There is less dissatisfaction to the customers..

(2) State the satisfaction level with the product(yarn) of a company

in terms of quality and consistency.
Sr.No

Option

Frequency

Per(%)

Highly satisfied 15

75

satisfied

15

Dissatisfied

10

Highly

20

100

dissatisfied
5
TOTAL

Neutral

59

As per the above graph we can conclude that most of the customers (75%) of
the company are highly satisfied. Company delivers its goods in quantity
required by its customers on time. 90 % of the customers are satisfied with
the delivery of goods of the company. and 10% of the customer dissatisfied.

3) state the companys system of placing the order and delivery of

goods in required quantity on time.
Sr.No

Option

Frequency

Per(%)

Highly satisfied 12

60

satisfied

25

Dissatisfied

10

Highly

20

100

dissatisfied
5
TOTAL

Neutral

60

As per the above graph we can conclude that most of the customers (60%) of
the company are highly satisfied. Company delivers its goods in quantity
required by its customers on time. 85% of the customers are satisfied with
the delivery of goods of the company. There is 15% dissatisfaction to the
customers.

(4)Below mention the satisfaction level for the payment system

and terms & conditions of the company.
Sr.No

Option

Frequency Per(%)

Highly satisfied

13

65

satisfied

20

Dissatisfied

15

Highly

dissatisfied
5
TOTAL

Neutral

20

100

61

As per the above graph, we can conclude that customers are not much
satisfied with the mode of the payment and its terms and conditions. But
about 85% are satisfied customers and 15% customer are dissatisfied to it.

5)State satisfaction level for the credit policy offered by the

company.
Sr.No

Option

Frequency

Per(%)

Highly satisfied 10

50

satisfied

25

Dissatisfied

15

Highly

10

dissatisfied
5
TOTAL

Neutral

0
20

100

62

As per the above graph, we can conclude that the companys credit facility is
quite good. 75% of the customers are satisfied with the credit facility.. 25%
customers are dissatisfied with the credit facility of the company. There no
high dissatisfaction to the customers which is a good sign.

6) state the satisfaction level for behavior of the employee or an

agent while transaction made you.
Sr.No

Option

Frequency

Per(%)

Highly satisfied 10

50

satisfied

20

Dissatisfied

20

Highly

20

100

dissatisfied
5
TOTAL

Neutral

63

As per the above graph we can say that only 70% of the customers are
satisfied with the employees or agents response. 30% of customers are
dissatisfied with the response of companys representatives. there is no high
dissatisfaction in the customers.

(7)state the awareness of the term customer care policy.

Sr.No

Option

Frequency

Per(%)

Yes

15

75

Some what

20

No

20

100

TOTAL

64

As per the above data we can conclude that awareness of customer care
policy of the company is 75% of customers are in satisfaction region. 20% of
the customers are some what.5% of the customers are dissatisfied with the
customer care policy.

(8)Please state your overall satisfaction level.

Sr.No

Option

Frequency

Per(%)

Highly satisfied 12

60

satisfied

20

Dissatisfied

15

Highly

20

100

dissatisfied
5
TOTAL

Neutral

65

As per the above graph we can conclude that overall customer satisfaction of
the company is very good. Around 80% of the customers are satisfied with the
company. Only 20% of the customers of the yarn of the company are
dissatisfied. It is really a good data of customer satisfaction.

66

CHAPTER= 5 Findings
(1) Majority of the customer are satisfied towards pricing policies Lakhani
filament.
(2)Majority of the customer are satisfied towards credit polices of Lakhani
filament.
(3) Employee behavior is good towards customer.
(4) Most of the customer are satisfied with quality of yarn.
(5) Few customer are dissatisfied with the delivery timeing.
(6) It seems that majority of the respondents will like to purchase yarn from
like Lakhani filament.

67

CHAPTER =6 Conclusion
The topic of my study is customer satisfaction regarding Lakhani Filament
Yarn user in Surat City .The Study Concentrated on all levels of weaver .As a
one of the follower in yarn products, Lakhani filament pvt.ltd. having good
customer satisfaction. It has helped the organization to build good image in
the market which is very helpful to the organization. Overall most of the
customers are satisfied with the
companys activities.
There are some issues which is needed to be improved, company should try
to give attention on it to satisfy customers.

68

CHAPTER =7 Suggestions
(1)

company should increase its delivery system.

(2)

customer should be given proper credit facility.

(3) company should maintain current level of quality.

69

CHAPTER-8

70

 LITRATURE REVIEWD
1. Philip Kotler, Marketing management, New Delhi,
Prentice Hall of India private. Ltd, 2010 (13th Edition)
2. Research Methodology, TATA MC GROWHILL, New
Delhi (2010)
3. G.C. Berry , Marketing Research.

Websites:
(1) www.lakhani filament.com
(2) www.indiaindustries.com
Other resources:
1. Research Methodology CD

71

CHAPTER-9

72

LAKHANI FILAMENT PVT. LTD.

Surat
Questionnaire of customer satisfaction survey
Yarn Department
______________________________________________
SR NO.:
Name:
Address:
Telephone no.:
Average daily Consumption:
________________________________________________
PLEASE MARK ON YOUR SELECTION
1) State the satisfaction level with the pricing policy of a company
comparing with other companies.
highly satisfied

satisfied

Dissatisfied

highly dissatisfied

Neutral

(2)State the satisfaction level of the product (yarn) of a company in

terms of quality and consistency.
highly satisfied

satisfied

Dissatisfied

highly dissatisfied

Neutral

If dissatisfied, please specify____________________________

(3) State the companys system of placing the order and delivery
of goods in required quantity on time.
highly satisfied

satisfied

Dissatisfied

highly dissatisfied

Neutral

If dissatisfied, please specify____________________________

73

(4)Below mention the satisfaction level for the payment system

and terms & conditions of the company.
highly satisfied

satisfied

Dissatisfied

highly dissatisfied

Neutral

If dissatisfied, please specify____________________________

(5) State satisfaction level for the credit policy offered by the
company.
highly satisfied

satisfied

Dissatisfied

highly dissatisfied

Neutral

If dissatisfied, please specify____________________________

(6) State the satisfaction level for behavior of the employee or an
agent while transaction made you.
highly satisfied

satisfied

Dissatisfied

highly dissatisfied

Neutral

If dissatisfied, please specify____________________________

( 7)state the awareness of the term customer care policy.
Yes

No

some what
(8) Please state your overall satisfaction level.
highly satisfied

satisfied

Dissatisfied

highly dissatisfied

Neutral

If dissatisfied, please specify_________________

74

75