Professional Documents
Culture Documents
MRP Report
on
John Deere
Submitted to
Mr. Rajesh Matai
Asst. Prof.
Submitted by
Sunil Kansara
PGP II
PGDM-S Sec. A
ACKNOWLEDGEMENT
Intellectual alertness, creativity goes side by side in making of a manager. In
this context, the role of successful execution of the project work can not be
denied.
On this note I would like to take this opportunity to convey my
respect and special gratitude towards Mr. Rajesh Matai who considered me
worthy of doing project in their esteemed establishment and never failed to
satisfy my over-zealous thirst to obtain information.
Working on this project has a great experience. I am also thankful to
all concerned people specially Mr. Manish Rajwal (Deputy Area Manager,
Jaipur of John Deere), Mr. Sunil Mehra (Chief Area Manager of John
Deere), Mr. Kshish Imam (Service Engineer of John Deere) who have gave
me all relative information about John Deere what ever I required.
PREFACE
The MBA curricular has been designed to provide to the future manager
ample practical exposure to the business world. The Major Research Project
is necessary part for the fulfillment of MBA degree course. It help the
student to gain knowledge about various aspects to the industry emphasizing
on the development of skill in analyzing and interpreting practical problem
through application of concept and theory.
Topic
To do the Comprehensive study on John Deere
Objective
To study the supply chain of John Deere
To understand the promotional activities of John Deere
To understand the training process of John Deere
Research Methodology
Research Design
Descriptive
Research Technique
Qualitative
Data Collection
Through interview
Secondary source (Internet)
Overview of Company
The story of John Deere the man, who developed the world's first commercially
successful, self-scouring steel plow, closely parallels the settlement and
development of the Midwestern United States, an area that the homesteaders of the
19th century considered the golden land of promise. The full story of John Deere
the company over the last 170 years is one of people, places and products that
reflect our core values of integrity, quality, commitment and innovation.
One of the five oldest companies in the United States, Deere & Company is the
world's largest manufacturer of agricultural equipment and a major U.S. producer
of construction, forestry, and lawn and grounds care equipment. The company has
factories throughout the world and distributes its products in more than 160
countries through independent retail dealers--nearly 5,000 worldwide. It is also
active in financial services. Deere has been an industry innovator since John Deere
introduced the first successful self-cleaning steel plow in 1837. At that time, most
Americans lived on farms; now many of Deere's customers belong to the upper 5
percent of the nation's farmers, who take in 80 percent of the net farm income;
these farmers run big farms that need sophisticated equipment.
Born in 1804 in Vermont, John Deere was a blacksmith renowned for his
craftsmanship and inventiveness. After a business depression in the 1830s, Deere,
like many young Easterners, migrated west. He settled in Grand Detour, Illinois,
where his blacksmith business thrived. He soon saw that the cast-iron hand plow
that pioneers had brought from the East did not work well in Midwestern soil,
which clung to the plow's bottom and made it necessary for the farmer to scrape
off the soil every few feet. Deere developed a plow with a polished and specially
shaped moldboard and share, which scoured itself after lifting the soil.
This first plow was made from a broken saw blade, but the tool quickly became so
popular with Deere's customers that he began to make plows before he got orders
for them--a revolutionary practice in those days. In 1843 Deere ordered a shipment
of rolled steel from England. This move enabled him to expand his business, and
three years later, he was able to get steel made to his specifications from
Pittsburgh, Pennsylvania mills. In 1847 Deere moved his business to Moline,
Illinois, near the Mississippi River, which provided water power and convenient
transportation. By 1850 he was producing 1,600 plows a year.
Known to say, "I will never put my name on a plow that does not have in it the
best that is in me," Deere continued to improve his plows and to tailor them for
different soil conditions. In 1868 the business was incorporated as Deere &
Company. In 1869 Deere named his son, Charles Deere, vice-president and
treasurer of the company. When John Deere died in 1886, Charles succeeded him
as president.
Deere & Company, founded in 1837 (collectively called John Deere), has grown
from a one-man blacksmith shop into a corporation that today does business
around the world and employs more than 50,000 people. The company continues
to be guided, as it has been since its beginning, by the core values exhibited by its
founder: integrity, quality, commitment and innovation.
GLOBAL PRESENCE
Deere & Co. has made continuing efforts to expand its global presence selling
agricultural equipment in more than 110 countries. In 1996 its overseas sales were
responsible for one-fourth of the company's combined equipment sales. The
company has been able to make greater inroads in a number of foreign markets
with the easing of trade barriers. This has allowed Deere to manufacture tractors in
Brazilthe biggest Latin American market. Deere also opened an office in Beijing
and continues to seek production and marketing of agricultural equipment there.
All in all, a rise in worldwide farm incomes coupled with flourishing economic
climates in North America have contributed to the company's global expansion.
Consistent with its strategic goals, Deere & Company has been anxious to
capitalize on growing economies around the world that have a higher demand for
agricultural goods. The company recently expanded its international sales to
include the Ukraine and Kazakhstan. These growing economies have also
produced strong markets for industrial and construction equipment. Many of these
nations are also looking for diesel engines with clean emissions and economic fuel
consumption.
The popularity of golf in parts of Asia has resulted in increased sales of golf and
turf equipment in that region. The rise in demand for golf course maintenance
equipment has boosted Deere's financial assistance programs, particularly John
Deere Credit, which has expanded to include Canada, Mexico, and the United
Kingdom.
For Deere & Co., 1996 was a financially rewarding year for overseas operations.
Sales leaped to $2.7 billion, an increase of over $500 million from the previous
year. The company has cited sales increases in Europe, Australia, and Argentina as
contributing factors for such growth. Deere also experienced a 30-percent increase
of exports in the first quarter of 1997 due to healthy agricultural economies in
Europe, Australia, and South Africa. It also signed a deal with the former Soviet
republic of Ukraine to sell 1,049 combinesthe biggest business deal in Deere's
history. With overseas sales on the rise, Deere & Co. also increased its share of
ownership in its Mexican and Brazilian businesses.
Most factories have a product engineering department responsible for the design
and development of their products. Research and development activities also occur
at the Moline Technology Innovation Center, Moline, Illinois.
DIVERSITY
Throughout John Deere, diversity is an important part of the company's goal of
growing a great business - a business that serves all constituents of the corporation
including customers, employees, shareholders, business partners and communities
throughout the world. As Deere continues to expand its global reach, inclusion of
employees, suppliers and other business partners from a wide range of ethnic
backgrounds is essential to the long-term success of the company.
DIVERSIFICATION
John Deere remains committed to its core businesses, yet future growth will also
be driven by products and services new to the company. John Deere Credit is
among the United States' leading equipment finance and leasing companies. It
provides financing of farm and construction equipment, recreational and
homeowner consumer products, commercial equipment, and revolving credit
financing for agricultural purchases.
TECHNOLOGY
Technology is at the heart of business innovation and John Deere utilizes the latest
software and technological breakthroughs in providing customers with state-ofthe-art products and services. For example, product development uses the latest
virtual prototyping techniques to produce John Deere products. Other major
initiatives include precision-farming systems and global vehicle communications
systems, designed to help customers become more productive and profitable.
These technological initiatives will provide a major competitive advantage and
continued industry leadership position to John Deere.
Address
Deere & Company
World Headquarters
One John Deere Place
Moline, IL 61265
Ph. (309)765-8000
John Deere India Private Limited is a subsidiary of Deere & Company, USA in
India. Its factory, located near Pune, manufactures 5000 Series agricultural
tractors. The Indian operations of Deere & Company include a technology center
located at Magarpatta City Pune and John Deere Water India.
The technology center provides services in the areas of Information technology,
engineering, supply management, embedded systems and technical authoring for
companys operations world wide.
John Deere Water, formed by the acquisitions of Plastro Irrigation Systems, TSystems International, and Roberts Irrigation Products, is one of the leading
irrigation companies in the world today.
John Deere Equipment
To expand its global presence in Ag equipment, John Deere established a green
field project in 1999 under a 50:50 joint venture with Larsen & Toubro Limited
(L&T) An engineering company of repute from India. A state of the art tractor
manufacturing plant for 5000 series John Deere tractors was set up at Sanaswadi,
near Pune, in the state of Maharashtra. These tractors were introduced in India in
early 2000.
In 2005, Deere & Company acquired nearly all the remaining shares in this joint
venture. The new enterprise, John Deere Equipment Private Limited, Sanaswadi,
Pune, operates through a network of 15 area offices, 4 zonal offices and 270
authorized dealers spread across the country.
The factory currently produces modern tractors of 35, 40, 42, 47, 50, 55 and 70 Hp
capacities for domestic markets. Tractors manufactured in Sanaswadi are also
exported to the USA, Mexico, Turkey, North and South Africa, and South East
Asia. The company has received awards for export excellence in 2005 and 2006
from the Engineering Export Promotion Council.
World-Class Technology
John Deere translates the farmer's interest into superior product features through
its world-class manufacturing facility at Sanaswadi, Pune. Spread across 112
acres, the factory has a total built up area of around 50,000 sq. meters.
Manufacturing is carried out at three inter-linked factories - Transmission, Engine
and Vehicle Assembly.
Modern manufacturing practices like JIT, delivery of components at assembly
stations and movement of tractor parts through an overhead conveyor, ensure
IT at the Workplace
A high levels of computerization underlines the operations at John Deere
equipment. The Company is equipped with state-of-the-art computer and
communication facilities, giving it the interconnectivity and interactivity
imperative in today's increasingly competitive market.The company has
implemented SAP system for sales and distribution as well as integration of
manufacturing processes. Area offices, dealers, depots and C & F agents are
networked to enhance efficiency and customer service. Training is also provided
periodically to employees as well as dealers to upgrade their skills and perform
better.
Ag Financial Service
Ag Equipment Financing
Credit Analysis
Collections
Financial Analysis
International Finance
John Deere Risk Protection
Litigation
Processing Support
Repossession
Remarketing
Risk Management
Wholesale Lending
extending to that country the project development, debt financing and other
services we already offer in the United States.
Success with Crop Insurance
Our John Deere Risk Protection (JDRP) subsidiary is a managing general agency
working with insurance companies to provide crop insurance and risk management
solutions within the agricultural sector. Started in 2004, JDRP achieved positive
net income and SVA in 2006, after only two years of operations. We are now
licensed in 40 states in the United States and premiums are projected to exceed
$200 million at the end of 2007. Based on this success, plans are underway to
expand operations and to pilot additional insurance products and services to
agricultural customers.
A growing global footprint
John Deere Credit's global footprint has extended to 17 countries in North
America, South America, Central America, Europe, Australia and South Africa.
Our International Division provides global retail and wholesale finance solutions
while optimizing enterprise SVA and managing enterprise risk. In addition to our
operations in these countries, our Global Trade Finance group helps to facilitate
the financing of complex equipment sales transactions in all regions of the world
by working with thirdparty providers.
Supplier 1
Supplier 2
John Deere
Company
Dealer 2
Dealer 3
Supplier 3
Customer
Customer
Customer
John Deere finances its sales to dealers, allowing them to defer payment for
several months. Dealers, not wanting to chance missing a sale, tended to order
more than they needed to avoid out-of-stocks. Salespeople, compensated by
commission, had a natural tendency to sell as much as a dealer wanted.
To squeeze excess inventory out of its supply chain, John Deere needed to
convince its dealers that it could come up with a more efficient method to ensure
that its products would be available when they were needed.
While supply chain management systems can generate production and inventory
plans, Tayur says, they generally assume that nothing will change once the plan
has been created. But real-world conditions -- severe weather, transportation
disruptions, labor disputes -- can alter demand and availability, disrupt the supply
chain at any stage and have a ripple effect throughout it.
John Deere was able to improve its on-time delivery to dealers dramatically and
convince them that with its optimization software, it could meet their needs
without running out of product. The company altered its dealer financing to cover
the optimum level of inventory only, as determined by the optimization software.
Now, dealers can purchase more if they choose to, but John Deere doesn't finance
it.
To date, John Deere has achieved 90 percent of its dollar goal for inventory
reduction and improved on-time delivery to its dealers from 63 percent to 92
percent.
While John Deere's situation involves thousands of dealers and products over
multiple locations, smaller enterprises can benefit from optimization software as
well. If a company has several locations, a couple dozen products and a few
hundred customers over multiple time zones, the complexity can get
overwhelming very quickly.
Advantage in Supply Chain
Redesign supply chain networks as capacities have moved off shore from
mature markets
Ag Financial Service
Ag Equipment Financing
Credit Analysis
Collections
Financial Analysis
International Finance
John Deere Risk Protection
Litigation
Processing Support
Repossession
Remarketing
Risk Management
Wholesale Lending
When you purchase the most reliable equipment in the world, theres one thing
you should expect; the most reliable financing in the world.
We offer comprehensive financing packages with local flexibility to meet the
growing needs and demands of your operation. By working with your John Deere
dealer, you can tailor an equipment installment loan that matches your cash flows
and financial strategies.
Get fast, flexible, and dependable credit with:
Flexible payment terms and down payment
Competitive fixed and variable rates
On-the-spot financing from your local John Deere dealer
Fast and easy credit approvals
Tailored programs to meet your cash flows and financial strategies
Sell through John Deere Dealers: Customer can not be buying product from any
where because John Deere is having that much supply chain where customer can
buy only from original dealer of John Deere.
Parts available only on John Deere Dealers: Farm Plan has teamed up with
participating John Deere dealerships to offer a variety of money-saving NoPayments/No-Interest options on agricultural parts and service. All Farm Plan
customers in good standing are eligible to participate. Just ask your dealer about
current No-Payments/No-Interest incentives. You receive the parts and service you
need today, with deferred payments for 90 days or more. And you can take
advantage of dealer sale prices to stock up and we can find John Deere parts only
from authorized John Deer Dealers.
Live Demo Product: John Deere is having a good marketing strategy that John
Deere Give demo of the product in a village because John Deere believe that
Dealer Training
When a dealership employee enrols on a John Deere Training course they enrol in
a training process which is certified under the ISO9002 Quality Assurance
standards.
On arrival at the Training Centre the delegate will be greeted in the main reception
and given a Name Badge, this badge is for security reasons and ensures that the
delegate receives coffee/tea and lunch without charge.
Training Material
Once the training course begins the delegate will be provided with a
comprehensive Training Manual with handouts and materials for the specific
course. On many technical training courses a Technical Manual is also used, these
may be loaned for the course or delegates may be asked to bring their own from
the dealership.
Course Assessment
Throughout the duration of the course the delegates will be assessed on such areas
as involvement in the course, questions asked etc. This assessment by the
Instructor(s) will count towards the grade level of the Personal Training Certificate
which will be issued after completion of the course.
At the end of most Training Courses there is a short multiple choice test which is
specific to information provided during the course. The result of this test also
counts towards the Personal Training Certificate. In addition to this test the
delegates are also given an opportunity to assess us and provide their opinions on
the training course they have just completed. This is achieved with a Training
Course Evaluation questionnaire, the results of which are then used as feedback to
change and improve our courses to provide the training our customers (the
dealership delegates) require.
Course Completion
Following completion of the course the dealership will be sent a Certificate of
Merit, which is valid for three years for display in a customer area of the
dealership (right).
The purpose of these graded Personal Training Certificates is to provide feedback
on the level of achievement of the delegate on the course, Bronze being fair, Silver
being good and Gold being outstanding. They are also designed to provide a
personal training record for each delegate when inserted in the delegates Training
Passport.
No advertisement: In India also John Deere is not giving ads in any source
of medium because John Deere believe in relationship with all dealers and
customers that is why they are not giving any ads. John Deere also believe
that promotion of product is more effective.
Only one training centre in India: John Deere is having only one training
centre in India and for all cities in India it covers
Major sales in Punjab and Hariyana: John Deere is major sales area in
India are Punjab and Hariyana and John Deere is more focus on that areas.
Company is not listed in any stock exchange in India and John Deere raise
a fund throw HDFC Bank, Shriram Transport Finance Company, Sundaram
Finance, and Cholamandalam.
John Deere should listed in Indian stock exchange: India John Deere
give credit facility to all dealers and customers and but John Deere is not
listed in Indian Stock exchange that is why when ever John Deere is require
the fund company takes loan from private institute and they charges high
rate of interest.
Bibliography
www.deere.com
https://dealerjobs.deere.com/.../com.deere.rc.jobs.servlets.user.ClientEntryP
oint
www.tractordata.com
India)
www.equipmentlocator.com/ag-fp/john-deere-tractors.htm
Interaction with specially Mr. Manish Rajwal (Deputy Area Manager, Jaipur
of John Deere), Mr. Sunil Mehra (Chief Area Manager of John Deere), Mr.
Kshish Imam (Service Engineer of John Deere)