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ACKNOWLEDGEMENT
It has been an extremely pleasurable experience working
with Xerox India. This organization has provided me with
invaluable knowledge and experience which I take back with
me.
S. M. Onais Rafiq
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Table of Content
Executive Summery 5
Introduction 9
Project Objectives 15
Methodology 16
Analysis 18
Preference of Medium 22
Preference on Services 24
Service Industry 28
Manufacturing 29
Knowledge 30
Overview 31
Level of security 32
Awareness 36
Process of Procurment 38
Suggestions 43
Critical Suggestion 45
Sample Model 48
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Annexure 49
Biblography 55
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EXECUTIVE SUMMARY
Area of Focus:
The above are essential to fulfil the research objectives. They play a
pivotal role in ascertaining the factors that are essential for judging the
requirements of the customer.
The questionnaire was aimed for the corporate IT Heads to find their
role in the replacement of technology in the organization. The aim was
also to find the printing processes, volume of prints and the problems
they face with their network printers. Also through this set of
questions, information about different vendors and competitors has
been collected.
The data was collected in an excel sheet and analysis was done using
bar graphs and pie charts.
INTRODUCTION
HISTORY OF XEROX:
Haloid coined the word "Xerox" for the new copiers, and in 1948, the
word Xerox was trademarked. Inspired by the early, modest success of
its Xerox copiers, Haloid changed its name in 1958 to Haloid Xerox Inc.
The company became Xerox Corporation in 1961.
In 1962 Fuji Xerox Co. Ltd. was launched as a joint venture of Rank
Xerox Limited and Fuji Photo Film Co. Ltd.
Xerox leads the way in digital imaging and what is called distributed
electronic publishing. Xerox technology enables the home office to
copy, print, scan, and fax documents using a single device; and far-
flung enterprises to transmit complicated, multiage documents across
networks for copying or printing, down the hall or halfway around the
world. Digital products now represent more than a third of Xerox
revenues. Xerox started the office copying revolution with the
introduction of its 914 copier in 1959
The New Office Group of Xerox caters to the requirements of large and
mid-sized and small enterprises, providing them with laser printers,
digital copiers, copiers-printers, advanced multifunction devices, colour
copiers-printers and engineering copiers. These offerings are marketed
through "Two-Tier" distribution model (see exploratory research).
Xerox reaches out to its customers through its network of three
national distributors (Ingram, essays and Redington) and two regional
distributors (Micromax and Ansatta). The company has a network of
1500 channel partners that are supported by a team of qualified and
trained indirect sales personnel.
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Xerox was involved in direct selling till about 2005 wherein it shifted to
channel oriented sales. This project which deals with an analysis of the
best service offered to customers in the industry is aimed at finding
out the different factors that influence the processes and commercials
involved while providing services
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Project Objective
Primary Objective:
Secondary objective:
Gauge the volume of prints and the mode of prints used by them
Methodology
The first step involved was to get an overview of Xerox products and
services. To facilitate this process a comprehensive comparative
analysis of the total product line under New Office Business Group
was done. This was done by going through the Xerox website and
product broachers.
The data was collected in an excel sheet and was then analyzed to find
out information which was essential to achieve the objectives.
Analysis
As can be seen in the questionnaire we circulated, multiple choice
questions eliciting answers were put to our respondents and the
findings for each are detailed as under:
There has been a sharp decline in the market share of the company
because of service issues. The existing customers were satisfied with
the product but there is a great deal of issues in regards to service and
back hand support.
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Segment Share:
From the above bar graph we can see the market share of Xerox and
its competators in the different segment of the industry. We can see
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that HP holds a decent share in all the segments of the industry form
Government Service industries, Private segment of the Service
industry, Manufacturing & knowledge. It can be abserved that Xerox
has a presence in the government sector and private service industry
but its presence is negligable in the manufacturing and knowledge
sector.
Preference of Medium:
When the respondents were asked the reason for the usage of
inkjet printers a common set of reasons were received:-
1. Inexpensive to procure.
There has been a great shift in the preference of the customers, of the
total number of corporate accounts surveyed 56% use multifunction
devices, but still now 44% of the use standalone machines and prefer
using different machines for different services. From the pie chart we
could see the share of multifunction devices and stand alone
machines.
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Preference on Services:
1. Quality
2. Price
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3. Operational Cost
4. Reliability
5. Maintenance
6. Ease of Operation
7. Power Efficiency
8. Speed
A detailed analysis of the data received which can be seen from the
bar graph below:-
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The compiled data showed that when the machine is being procured
the most important aspect that is looked into is the quality of prints
that the machine is capable of, the second aspect was the cost that
will occur in the procurment of the unit. Reliability being the third most
important aspect as all the recipients did agree to the fact that at one
time or the other the machine is bound to fail but, the frequency and
the reliability is very important. Price is the most important driving
factor associated with the procurment of the unit, not just the initial
cost but the cost of running as well. Though when this was broken up
as per segment wise a further detailed analysis could be derived.
Price being the driving factor as well but as most of the units are
procured through Tenders so the L1 (lowest) bids are given
preferences taking into consideration the reliability and quality
aspects of the machine.
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Service Industry:
into are the quality and price. The bar graph shows the preference
on different factors
Quality and price go hand in hand in the private sector. Still quality
is given a bit more important as a small strech in regards to price
can be made to procure a better equipment. As in the service
sector the perseption of a person for that organization is made by
the way it potrays itself, thus quality is very important. The third
aspect is the reliability, it has been observed that the print
requirements are very hight and thus if the equipment is not
relaible a lot of work gets effected and delayed. To match the
return on investment the best possable fit for the particular
enviorment is bought and so it is used to its maximum capacity.
Manufacturing:
The two most importan aspets that are looked in are the the
reliability and operational cost of the machine, unlike the service
sector price and quality are not deciding factors. The machines
have to be sturdy as the number of users per machine are the
highest in this segment. The organizations do a detailed analysis
of their requirement of different departments and thus while
procuring reliability and operational cost are given the most
importance.
Knowledge:
The three factors that are taken into consideration in the process
of procurment are quality, price and reliability.
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Overview:
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It was observed in all the sectors that there was not much
emphasis was given on the ease of operations and the speed.
Some of th reasons are:
Level of Security:
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The most common problem that was encountered was paper jam and
hanging of the printer. This problem occured because unlike Xerox the
print around function was not available in any other equipment in the
market.
We could even see the share of different problems through the Pie
chart
Paper handling was also an issue that was the cause of the huge junk
printing that occured in the organizations. These issues were very
seriously looked into, the organizations were on the look for solutions
that could help them in resolving with the wastage due to these
reasons.
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Awareness:
The questionier was also designed with a question as to how people
perceived Xerox, that also helped us to know the awareness of the
company with its products catering to the small and medium size
offices. The bar graph below represents the level of awareness that the
company has :-
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From the bar graph we could see that Xerox as a company had very
good awareness but still 6.5% of the people who were surveyed
perceived it just as a photocopier company and were procuring
printers, multifunctional devices etc form other companies. Though a
majority of the people were aware of the product line offered by the
company but still there is a greater requirement to spread awareness
of the services provided by the company for gaining a greater market
share.
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Process of Procurement:
New India Assurance: Usage & Purchase as per requirement, the
process of procuring and the requirements are different as compared
to other organizations. It is important to analyse the requirement of on
the basis of job issued in that particular office rather than in respect to
the increase in manpower, the technology is a driving factor as well,
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there is limited access to word and excel which is provided to users all
across India, therefore security level is as high in the organization.
Mahindra & Mahindra: Operational Cost & reliability are the major
factors governing this sector, as in the case of Mahindra & Mahindra a
tender is given out and the decision is taken in accordance to that.
Air India: Being a booming service industry the back hand support is
the back bone of the organization, Service and reliability is the most
important features that they look before choosing any vendor. Call
time per complain is very important. The preference of this
organization is on a vendor providing competitive price and a greater
reliability. Having 18 different departments with its own set of
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Insert 1
From the above chart we can see the medium that is used for printing
in these organizations, it also gives us the detailed picture of the
monthly print volume and the number of printer that the organization
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After deriving the cost incurred and the volume printed we can place
Xerox printers and check difference in cost. Thus we can analyse from
this that it is more profitable to use Xerox products.
As in the case of Motilal Oswal we can see that they are currently
incurring approximately 0.68p per print but when compared with the
equivalent printer of Xerox in the category the expenses will come
down to 0.36p thus we can conclude that it is more cost effective.
We can also see in the case of Capgemini the cost incurred at present
per print is approximately Rs 2, but with the solutions provided by
Xerox the cost can considerable be brought down.
Suggestions
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Critical Suggestion
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As from the total analysis we have come to the conclusion that the
market in which Xerox is competitive and thus attracting customers on
FSMA is not possible as competitors (Toshiba, Cannon, Ricoh,
Samsung) are willing to provide lower FSMA to capture greater market
share.
Insert 2
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When the calculation was done it was found that the profit from FSMA at
the rate of 20% on the following machines gives a profit of
WC 7242 = 0.08p
WC 5632 = 0.07p
WC 123 = 0.09p
WC 5655 = 0.07p
WC 5675 = 0.06p
Therefore when separately dealt with the combined profit from FSMA and
Paper is provided below, but when FSMA and paper are combined a
margin of 20% is kept then:-
Current New
WC 7242 = 0.92p ----------- 0.108p
WC 5632 = 0.82p------------ 0.104p
WC 123 = 0.102p---------- 0.114p
WC 5655 = 0.82p------------ 0.112p
WC 5675 = 0.72p------------ 0.094p
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Where as when the compiled calculation was done and a profit of 20%
was calculated over it. The margins of profit increased showing that it is
can yield greater profits for the company.
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Sample Model
Cost
Incurred
A4 Current Paper by Xerox New
Company Volume Exp Cost company Machines FSMA
Motilal
Oswal 1,00,000 0.68 0.26 0.94 WC 5632 0.62
Questionnaire
Dear Customer
The following questionnaire is in congruence with our study of office supplies. The collated
data does not stand authorized to be published outside and will be used solely for research.
Therefore kindly cooperate with us in our endeavour.
Company Name :
Person’s Name :
Department Name :
Copying
Scanning
Multifunctional
Devices
Fax
Printing: Color
2. What are your basic requirements? How much average time (in minutes) do you spend
for the following document processes?
COLOUR
Printing : ________________
Photocopying : ________________
Scanning : ________________
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Faxing : ________________
Printing : ________________
Photocopying : ________________
Scanning : ________________
Faxing : ________________
Stand Alone
Multifunctional Device
4. How would you rate the products and services based on following parameters?
[Rate from 1-7, where ‘7 stands Excellent’ and ‘1 stands for terrible’]
Color B/W Color B/W
Scanning Faxing
Printing Printing Copying Copying
Quality
Price
Operating
cost
Reliability
Maintenance
Ease of
operation
Power
efficiency
Speed
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A4 prints: _________
A3 prints: _________
A4 prints: __________
A3 prints: __________
Laser
Inkjet
Laser: _________
Inkjet: _________
__________________
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A.________________________________
B.________________________________
C.________________________________
13. Do you know about FSMA of Xerox (Full service maintenance agreement)?
YES
No
14. Do you know that your organization can save on cost if the documentation processes are
managed properly?
Strongly Agree
Agree
Disagree
Strongly Disagree
15. What level of security do you have for documentation management at your workplace?
High
Average
Low
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___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
17. Do you foresee the requirement of a printer or a multifunction device in next 6 months?
Yes
No
18. Would you like to outsource any of your document processes for document processes?
Yes
No
BIBLIOGRAPHY
www.xerox.com
www.google.com