SUMMER TRAINING REPORT

ON

NEW PRODUCT DEVELOPMENT

AT

Submitted in partial fulfillment of the requirements of the

Degree of Master of Business Administration
Kurukshetra University Kurukshetra

Under The Guidance of Submitted By

Mr. Ajit Jain Nitin Jain
(Sr. Manager, Marketing) MBA/05/04
LPS Ltd. Rohtak 2005-2007

N.C. COLLEGE OF ENGINEERING,ISRANA

KURUKSHETRA UNIVERSITY KURUKSHETRA
 ACKNOWLEDGEMENT

It is my Proud privilege to put on record my gratitude to all those

who have been the source of guidance, cooperation and help during
my study at Lakshmi Precision Screws Limited, Rohtak.
First of all, I would like to thank Mr. Atul Jain, Assistant
Marketing Manager of LPS & Mr. K.L. Katyal, Dy. Personnel
Manager of LPS, who guided me through out the thesis, right from the
planning to the completion of actual report.
No Acknowledgement is complete without the mention of Mr. Ajit
Jain Sr. manager Marketing of LPS who introduced me the number of
practical aspects about the organization, marketing field etc.
Last but not least, I would like to convey my sincere gratitude to Mrs.
Puja W. Mann HoD (M.B.A. Dept.) in N.C. College of Engineering
Israna for her support and guidance right from the stage of beginning
to the drafting of the Final Report.
I am very thankful to Mr. Ranjeet Verma (faculty of M.B.A. Dept.)
Who provided me help throughout the pursuance of this project

(Nitin Jain)
 TABLE OF CONTENTS

Particulars Page No.

1. Executive Summary 1
2. Industrial Profile 2
3. Company Profile 5
4. Introduction Of The Study Undertaken 46
5. Statement Of The Objective 56
6. Research Methodology 58
7. Analysis & Interpretation Of Data 61
8. Conclusion & Findings 69
9. Recommendations & Suggestions 72
10. Limitations 74
11. Annexure 76
12. Bibliography 78
 EXECUTIVE SUMMARY

The LPS is a Ltd. company. It is established in March 10, 1972.

Its Full name is Lakshmi Precision Screws Ltd. Mr. Lalit Kumar Jain

is CMD of this company I did my Summer Training in LPS Ltd and

they provided to me a project on New Product Development.

I started my project on New Product Development in beginning

of June. Mr Ajit Jain give me lots of its time for my research I used

secondary as well as primary data. I visited the entire department of

LPS. But my Project is basically related with marketing department.

Mr. Ajit Jain (SMM) helps me a lot. My summer training is of six

weeks.

During the study period of my project, I found overall company

position is satisfactory and it is running well.

 INDUSTRY PROFILE
Put Simply, anything, which joins together two things, is a fastener- a broad and

collection term for nuts, bolts and screws-, which keeps separate assemblies of any

engineering system together in a predetermined position. Fasteners are one of the

joining methods, the other notable being welding and riveting.

Fasteners can be broadly classified into two categories depending upon their

tensile strength, Mild Steel (MS) fasteners and High Tensile (HT) fasteners are used

across abroad spectrum, mostly in general applications, they are produced by the SSI

and unorganized sector, using lather and by rolling.

On the other hand, HT fasteners, which are relatively technology intensive, are

manufactured by a few units in the organized sector via the Cold Harding (a form of

forging) process HT fasteners can be classified into standard (available of the shelf)

and specialized (made to a specific design).

Fasteners have two types of heads: hexagonal and socket heads. Socket head

screws (also known as AlIen Screws or grub screws by machines) are used mainly for

industrial application in textiles, machine tools, pumps etc. and also in erecting

transmission towers.

The hexagonal type is predominately used in automobiles and in general

engineering. Specialized fasteners are used for specific applications and are generally

tailor-made. Manufacturers of specialized fasteners have to follow a prescribed design

to make a fastener.

The Indian Fasteners Industry is dominated by eight major players who count

for nearly 70% of the total turnover of the industry and 95% of the organized sector.
Basically engaged in servicing the automobile industry, a most logical extension for

the companies of fasteners industry is the manufacture of small auto engine

components like radiator caps, precision gears, couples etc. The manufacture of

various non-standard small components related to one industry helps a company to

give a boost to its operating margin by altering its product mix. The companies who

are able to co generate those small components along with their main product are the

ones, which enjoys higher margins in this industry.

Total Fasteners Market

(700 Crore)

11% Lakshmi Precision

18%
Screw s Ltd.
Others Kundan,
21% Sterling Pooja etc
Sunderam Fasteners
Chennai
Precision Fasteners
50%
 COMPANY PROFILE
2005

LAKSHMI PRECISION SCREWS LTD.

46/1 MILE STONE, HISSAR ROAD
ROHTAK 124001, HARYANA
Tel. +91-1262-48288/48289/49920/49921
Fax : +91-1262-48297/49922
Email : corp_aff@ipsboi.com
 INTRODUCTION ABOUT COMPANY

Lakshmi Precision Screws Ltd. Is a symbol of technical Perfection. LPS

(founded in March, 1972) is one of the leading manufacturers and suppliers of High

Tensile Fasteners such as Bolts, Screws, Nuts and Similar Parts for Automotive,

Aviation, Heavy & Light Machinery, railway etc.

More important is the fact that LPS today brings to its work over three decades

of hard core experience in the field. The present product list of LPS is very vast. All the

big company like Hero Honda, Maruti, Escorts, Eicher, Kelvinator, Tata, Bajaj, LML,

HMT. Every one use and recommends of LPS label.

LPS:

A company where performance is proof which understand his customer & Give

assurance that we will do our best to make our products safe and eligible for our

customer's assembly line.

 VISION OF LPS

MOTTO : Total customer satisfaction & market leadership.

TARGET : Annual growth of 30% with Exports contributing

PLAN : up to 50% of the sales.

FUNCTION : To continuously upgrade process technology &

develop new products.

PEOPLE : System oriented approach. The driving force behind it.

 OBJECTIVES OF LPS

The main objective of LPS is to provide customer satisfaction or we can say that

making things according to customer demands.

THE OTHER MAIN OBJECTIVES OF THE COMPANY ARE:

To Position himself in the Market

To Increase productivity

To Innovate new things

To double the export and bring foreign currency

To get maximum profits

To Increase the performance of employees

To Develop technical and administrative skills.

Optimum utilization of human on Resources.

 BRIEF HISTORY OF THE COMPANY

1959 Established Nav Bharat Industries as small parts manufacture

1972 Established Lakshmi Precision Screws Pvt Ltd. as Socket Head Screws

Manufacturer

1973 Technical tie-up with the German firm M/s Richard Bergner

1977 Acknowledged quality source of fastener

1978 Technical tie-up with M/s Richard Bergner expires.

1983 Secured self certification status from FORD.

1984 Declared Public limited Company.

1986 Secured self certification status Itom M/s Lakshmi Machine Works.

1988 Established as manufacturer-exporter.

1989 Received Regional Export Award from Engineering Export Promotion

Council, (EEPC) India.

1992 Received Regional Export Award from EEPC for the second

Consecutive year.

1993 Received Regional Export Award from EEPC for the third Consecutive

year.

1993 Established plant - II

1994 Received Employment Generation Award from Director of Industries,

Haryana State

1995 Accredited in Mechanical Measurement, Mechanical & Chemical Testing

by National Accreditation Board for
Calibration & Testing Laboratories (NABL). Government of India
1996 Certified to ISO-9002
1998 Installed Bolt Maker (AF 2525) to add production capacity to 12200 MT

Self Certification status from TELCO.

Technical Tie-up with Sunil Machinery Corporation, Korea.

Joint Venture with Bossard AG- Switzerland.

1999 Licensed Manufacturers of TORX Screw from Camcar Co. USA.

2000 QS 9000 Certification

2001 ISO/TS-16949 Certification.

2001 ISO-14001 Certification

2002 Implemented ERP-SAP Rl3

2002 Golden Peacock Award.

2003 Environment Award

 ORGANIZATIONAL STRUCTURE OF LPS
Board of Directors

Mr. L.K. Jain Chief Managing Director

Overall

Mr. D.K. Jain Vice Chief Managing Director

Commercial

Mr. V.K. Jain Director (Whole time)

Purchase / Project

Mr. R.K. Jain Director of Export

Department wise Position

Mr. S.K. Jain Marketing Department

Mr. R.K. Jain Export Marketing

Mr. D.K. Jain A/c Excise, Sales, Store

Mr. R.C. Garg Production, Planning & Control

Mr. V.K. Jain Purchase

Mr. J.L. Gupta Personnel, A/C and Finance

Mr. Dhawan Manufacturing (Plant)

Mr. A.K. Jain Information Technology

 KEY EXECUTIVES OF LPS

Company Secretary & DGM (Finance) : H.P.S. Chugh

Auditors : N.G. Gupta & Co.

: Charted Accountant, Delhi

Banker : Canara Bank, Rohtak.

Regd Office, Factory & Corporate Office : 46/1 Mile Stone,

Hisar Road, Rohtak

-124001, Haryana, India

Telephone 91-1262-

248289/249920/249921
Branch Office

New Delhi Office : 146, New Cycle Market,

Jhandewalan, Extn.,

New Delhi 110005 India

Phone : 91-11-23527642/

23532135
Mumbai Office : 153-A, Mittal Tower, Nariman

Point Mumbai 00021(India)

Phone : 91-22-22821918/

22843864/22325061

Kolkata Office : 8, Canning Street,

3rd Floor, Room No. 303,

Kolkata- 700 001.

Banglore Office : 305A, Mittal Tower

3rd Floor, MG Road

Banglore-560 001 (India)

LPS Recoil Division : Gh-13/889, Paschim Vihar,

New Delhi. Phone :

91-25280213/

25282179/25575463
 OUTLINE OF THE COMPANY

1 Name of the company Lakshmi Precision Screws Ltd.

2 Founded on : March 10,1972

3 Head Office &Factory: 46/1, Mile Stone

Rohatk-124001

Haryana (India)

4 Chairman & Managing Director : Lalit Kumar Jain

5 Total Assets : 978 Mil. INR (March`2004)

($ 21 Million)

6 Annual Sales : 1123 Mill. INR (March` 2004)

($ 24 Million)

7 Employees

Production Office Others Total

372 312 119 803

46.32% 38.86% 14.82% 100%

9 Factory

SECTION PLANTS TOTAL

Plant I Plant II

w.e.f 1972-73 1993-94

LAND 19000 44000 63000

BUILDING 16000 23000 39000

 FUTURE PLANS OF THE COMPANY

LPS is well on the way to consolidating its future leadership with a rising

corporate graph with and annual growth rate of 40%.

The further plans are follows:

Its further plan is to include continuous investment in R &D.

More concentration on Hard currency markets of USA, UK, JAPAN and EUROPE

with the objective of doubling the exports and to bring invaluable foreign exchange

for the country.

On the corporate agenda is a massive expansion program, which includes

diversification into chemicals and engineering.

To improve quality in design and manufacturing through implementation ofISO-

9002 system.
PRODUCTION AND SALES OF THE COMPANY

YEAR PRODUCTION (IN SALES (IN MILLIONS)

TONES)
92-93 3016 309
93-94 3556 404
94-95 4897 552
95-96 6529 735
96-97 6385 696
97-98 5753 684
98-99 5607 706
99-00 6556 816
00-01 6165 834
01-02 7600 900
02-03 7450 896
03-04 8200 1123
04-05 8325 1200
 SALES
1400

1200

1000

800

600 SALES
400

200

0
92- 93- 94- 95- 96- 97- 98- 99- 00- 01- 02- 03- 04-
93 94 95 96 97 98 99 00 01 02 03 04 05

Figure showing about the sale of LPS Products

Figure showing about Sale of LPS Products
 Figure showing about production of LPS Products

P R ODUCTION

9000

8000

7000

6000

5000
P RODUCTION
4000

3000

2000

1000

0
92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05

Figure showing about production of LPS Production

VARIOUS DEPARTMENT OF THE COMPANY

Marketing Department

Accounts Department

Sales Department

Export Department

Production Department

Purchase Department

Personnel and Administration Department

Manufacturing Department

Maintenance Department

PPC Department

Quality Control Department

Standard Room

Tool Room

Lab
 QUALITY CONTROL DEPARTMENT

Now it is well known fact that that there is a very high variation between quality

control and company's market credibility. The meaning of the concept quality is ever

broadening and consequently getting redefined. Thus bringing with in its scope

questions pertaining to productivity, cost, efficiency, customer's service and much

talked about product quality. All these questions taken together constitute the

operational area for the quality control department of the enterprise. That is what the

quality control department at LPS keeps in mind and tries to maintain high quality, not

just by physical inspection as a ritual but by embedding it in every process of

production itself. They are doing well to identity and measure process variables, the

prevalent practice in the company is to take sample of material at each stop right from

the raw material and testing up to both (a) Govt. Standard (b) Company's own internal

standard. The whole process of testing and controlling has been illustrated below.
PROCESS OF QUALITY CONTROL

Testing raw material

Issue of material from store

Care of temperature profile

Final inspection (1. dimensional test)

(2. Tightness ring gauge test)

Inspect packing process

Checkout the finished product

As a part of the process of quality control the department is also

responsible for tensile strength etc.

 PRODUCTION DEPARTMENT
For efficient production the department has been sub divided into various units

such as production division, P.P.C. division, quality control division and engineering

division. All the divisions are the part of production department and responsible for

regulating all the workers of production and responsible to report the works manager

who us directly reporting to the general manager. The function of the production

department is to effectively plan and regulate the operation of that part of enterprise

which is responsible for actual transformation of raw materials into finished products.

The production activities in the LPS are looked after by works manager, who is

responsible to report the general manager. In LPS, general manager himself also

visits to the production department to observe the working of the plant.

LPS offers a complete range of socket screws, hex head bolts/screws, hex

nuts, special automotive fasteners confirming to international standard.

The basic raw material used in the production of these screws and meets are

CHQ carbon boron Alloy steel wires in rods and coils. The source of raw material is

both Indian market LPS purchases from

1. Mukund Limited, Bombay

2. Bihar alloys limited

LPS also imports its raw material from foreign countries. Main countries are
 PRODUCTION PROCESS

The plant of Lakshmi precision screws limited comprises of modern imported

automatic machines e.g. Nut Maker, Bolt Maker, and Thread Rollers etc. in an

automatic machine the production is of continuous type. The wire is fed from one end

to the machine where it is subjected to three or four simultaneously operation, as the

case may be and from other end we get the finished product e.g. in screw making,

parting off, thread rolling operations simultaneously takes in the machine itself.

From the production, the company requires steel wire rods in the form of coils

confirming to AISI 1541,4140,4137 & 4037 for manufacturing bolts and confirming to

AISI 1008, 1110 and 1035 for nuts.

After the screws-bolts/nuts are released from the machine it is subjected to

head treatment/planting operations as per requirements of the party. In head treatment

process, the component is hardened up to a certain grade as prescribed by the

customer. Here the component is heated to a specific temperature and then slowly

cooled for desired hardness. The hardened component is then subjected to planting

process where zinc plating is done by electrolysis process. After the desired plating

the component becomes ready for dispatch.

PRODUCTION PROCESS
Chart

Wire from the bent or coils

Cutting of wire

Forging

Heat treatment

Rolling

Grinding

Plating Phosphate

Finishing

Oiling

Packing

Storing
 MARKETING DEPARTMENT
DEPARTMENT PROCEEDING

Close feasibility

Yes whether the product can be developed by the company or not

Quotation

Rates, lend time for delivery modes S.I,, CST whether applied

Close negotiations

Yes

Purchase order

For 1 year or so

Delivery schedule

As per the requirement in forthcoming period

Development of product

Delivery as per schedule

Types of bills..

Feedback whether accept

To follow up for the payments

Types of payments
 DEPARTMENT PROCEEDING
The department proceeding is the marketing department is a complex process

involving various types of task. The department; proceeding of the LPS are as

follows:

First of all a four members or five member committee is made which goes to

the companies to enquire about the product they want. After knowing that what type

of product needed, the feasibility of product is seen that whether the product can be

manufactured by the company or not if yes then the further proceedings are done and

if not deal is stopped there only. Now if the product can be manufactured by the

company then the quotations are given which comprises of rates. Delivery modes ST

and CST whether applied or not.

FOR

at our works

at destination free up to city

at your works (total free)

Central Excise Duty

15%

CST interstate dealing inter branch transaction

No CST

ST + 5% only applicable in direct sales to company and not to dealers

After the giving up of quotations, negotiations are held between both the

companies agree then the further proceedings are done and if not the dealings is
closed.

Then the purchase order is given by the company for 1 year or more. After

getting the purchase order the delivery schedule is made i.e. that order will be

supplied in 2.3 or 4 delivery schedule the product development starts, which include

many processes that is related to production department. After the product

development, the delivery is made as per the schedule decided by the company.

Then the feedback is made whether the product is accepted or rejected if there

is found certain discrepancies in the product, then the product is returned to the

company. Then follow up payment is done. The payment is made by two ways.

1) Through bank (Hindi System) company used to get Hindi document accepted

from the customer then they get the money from the bank immediately and the

customer directly to the bank with in the due date.

2) Direct through check or cash payment is made.

 FLOW OF COMMUNICATION

Marketing department mainly works in coordination and planning of production

department. The main communication flow of marketing department is with these two

departments planning and production. Marketing greatness of marketing department

beings orders from the concerned companies and they supply the information to the

planning department. Planning department according the need and necessarily of the

item gives instruction to the [production department when the production of the

material starts. The production department and the marketing department after the

material passes stage 1 i.e. forging. The production department both for confirmation.

After supplying of information of the material undergoes different both for confirmation.

After supplying of information of the material undergoes different stage of production

like forging there is rolling then information is supplied to planning department after

each stage of production so that planning department should be aware that of which

stage is material . Now after passing the material to the above stages the final

inspection is done and then the material is passed to the store house. After the

material has reached to store department, the information about the material is

supplied to the marketing as well as planning department. In this communication flow

occurs between departments.

 LIST OF MAIN MARKETS OF LPS

DOMESTIC (USER INDUSTRIES)

Automotive

Aviation

Heavy & Light Machinery

Hydraulic/Pneumatic Pumps

Machine Tools, Jigs & Fixtures

Railways

Refrigeration & Air Conditioning

INTERNATIONAL (COUNTRIES)
Australia

Germany

Holland

Hong Kong

Japan

Singapore

South Africa

South Korea

Sweden

Switzerland

United Kingdom
 United States of America

Who are the main Customer of the company?

We can categories the customer of the LPS in two parts:

CUSTOMER

DEALER OEM
(Original Equipment Manufacturer)

Here are name of top 10 OEMs

Hero Honda Motors Ltd,; Dharuhera

1. Telco ltd. Jamshedpur

2. Telco Ltd., Pune

3. Voltas Machine, Hyderabad

4. Bajaj Tempo Ltd.

5. Ashok Leyland, Chennai

6. Escort Ltd., Faridabad

7. Eicher Motors, Pitampura

8. Kinetic Honda Ltd., Pitam pura

9. Maruti Udyog ltd., Gurgoan

Thus the company specially deal with:

New OEM

Existing OEM

Dealers
Also Known as Segments of LPS
PRODUCTS LIST
1- BOLT & NUTS FOR AUTOMOBILES
A ENGINE PARTS

Con Rod

Cylinder Studs

Counter Weights

Cylinder Head

Rocker Arm

Engine Mounting

Main Bearing etc.

B CHASIS PARTS

Wheel Bolts

Wheel Hub Bolts & Nuts

Axle Bolts/ Pin

Flanged Bolts

Collar Bolt

Shock Absorber Mounting Pins etc.

2. FASTENERS
A Construction Parts (Fraction Grip)

Bolts & Nuts for Agriculture Industry

Bolts & Nuts for Industrial Machinery

B Cold Formed Parts for Automobile

Piston Pins

Switch body

Ball Joints

Gear Blanks

Rocket Shaft etc.

There are mainly two types of Products:

A Standard Fasteners:-

Socket head Cap Screw

Low Head Socket Bolt

Shoulder Bolt

Button Head

CSK

Hex Wrench Keys

Hex Head Bolt

Dovel Pin

Nuts

Friction Grip Bolts

Track Shoe Bolts

Stainless Steel Hex Head

 Stainless Steel Socket Head Cap Screws

B Special Fasteners

These are the product that are made on special order:-

Round Head Bolts

Hang Bolts

Axle Bolts

Connecting Road Bolts

Counter Weight Bolts

Wheel Bolts
 LIST OF MAJOR PLANTS & MACHINERIES
S.NO. PROCESS PLANT & MACHINERY SPECIFICATION Nos.
1 Drawing Pointing Machine Dia 5 Dia 3o 2
Wire Drawing Machine Dia 8 x 55 2
Wire Phosphating Plant
2 Heading 2D-2B
2D-3B Dia 8 x 70 1
3D-3B Dia 6 x 55 Dia 12 x 250
4D-4B Dia 6 x 40 Dia 25 x 200 11
5D-5B Large Stroke Bold Former 1
5D-6B Parts Former 1
3 Nut Forming 4D 6-12 mm 1
5D 4-10mm 3
4 Rolling Roller Type Dia 6 Dia 25 13
4 Rolling Rotary Type Dia 8 x 55 1
Flat Type Dia 3 x 10 Dia 25 x 200 17
5 Washer Assembly 2
6 Heat Treatment Series Type 2
Batch Type 10
Dehydrogen HT 1
Pit Heating 5
7 Plating Automatic 1
Manual 2
8 Phosphating Automatic 1
Manual 1
9 Multi Spindle 4
Automatic M/c
Davenport
10 Automatic For Box 1
Packing M/c For Bag 1
LIST OF MAJOR PLANTS & MACHINERIES (Contd.)

SN Plant & Machinery Nos.

11 CNC Machines 5

12 Flat Rolling 12

13 Circular Rolling 17

14 Nut Tapping 3

15 Drilling 5

16 Traub 9

17 Center Less Grinding 6

18 Pointing 6

19 Turning 1
LIST OF MAJOR PLANTS & MACHINERIES (Contd.)
SIXTH GENERATION MACHINIRIES AND EQUIPMENTS

S.NO. MACHINERIES/EQUIPMENTS FEATURES

Thread Rolling of 10.9/12.9

1 PRX-24 grade Bolts after Heat
Treatment

2 PW-10 E Rolling of Concentric Threads

Omnimet Express Image Quantitative Visual and

3
Analyser Metallographic Analysis

Improved Tool Life, Better

4 Cryogenic Treatment
Products

Micro In Capsulation Technology- Thread Locking and Sealing

5
UK Properties

Uniform Defects Free

6 CNC Rolling & Grinding
Products

7 Washer Assembly Bolt & Washer Combination

 LIST OF CERTIFICATES

01) A2LA

02) NABL

03) ISO 9002

04) QS 9000

05) ISO/TS 16949

06) ISO 14001

MAJOR COMPETITOR OF THE COMPANY

Sunderam Fastners of TVS Group

UN-BRAKO And Guest Keen Williams

Panda Togun Limited

Sterling Tools

Precision Fastners
 LPS MARKETING A BRIEF OUTLINE
Introduction:

Marketing is the human activity directed at satisfying needs and wants through

the exchange process.

Marketing is the process through which procedure and customers of various

goods are brought together in an exchange relation and the transfer of ownership

takes place. Marketing process starts even before the goods go in production. It does

not end with the sale but continuous with satisfaction of consumer is obtained.

Sales Procedure:

To carry out selling functions, it is important to have a qualified and experienced

sales force with a leader who can plan, organize, direct and control the selling job

objectively. The salesman is an extremely important link in the chain of distribution. It

is sometimes said that the salesmanship is the other name of persuasion.

The organization sells its product to low types of target market. These are:

1- Selling to original equipment manufacturers i.e. Industrial Consumers.

2- Selling to open market or market selling.

3- The company has established its various sales representatives in various parts

in India; mainly in industrial development cities of India like Chennai,

Bangalore, Coimbatore, and Kanpur etc. Their main test is to find out new

market.

The overall functions of sales representative are

 To bring offers

Making contracts

Report and figure work

Market feedback

Marketing Mix Strategy:

Marketing Mix is one of the major concepts in modern marketing. It can be

defined, as marketing mix is the particular blend of contractible marketing variables

that the firm used to achieve its objectives in the target market.

Now the question arises what variables make up a company marketing mix. There

are actually a great number of marketing variables. Fortunately they can be classified

into a few major groups one of the popular classifications has been proposed by Mc

McCarthy and is called 4Ps

- Product

- Price

- Place

- Promotion

The marketing division has been divided into two parts:-

- Export Marketing

- Domestic Marketing

The domestic marketing then divides the customer into 2 parts:-

 OEM (Original Equipment Manufacturers)

Dealers

OEMs are the ones who are designers of the product themselves. They are the

ones who supply the design and we have to make the fasteners according to the

design given. Similarly the OEM is divided into further 2 sub categories:

New Customer

Existing Customer

Working With New OEM:

Company gets the purchase order from the new customers through our sales

personnel and the customer provides the drawing. Then the drawing is taken to

Research and Development department, as the customer is new so we would like to

have the feasibility report about the product. Whether we can make it or not and if we

can make what are the requirements?

The R & D then prepares the feasibility report about the product. After the

feasibility report is sent to the Finance Department for costing. The finance

department then prepares the unit price of the product and then this is forwarded to

the marketing department, who gives the quotation to the customers.

If the customer approves the quotation then a sample of some pieces is made and

given to the customer for approval. If the customer approves the sample then the pilot

lot is prepared and given to the customer. The size of pilot lot depends upon the cost

of the product. It can be 50, 100 or 200 also.

If the lot is again approved then we get the purchase order from the customer

and a CC is cent to the production, planning and control department. After the
completion of the manufacturing of the product, the material is given to the finished

good stores who dispatch it to the customers.

Working With Existing OEM:

If the customer exists then purchase order is directly given to the PPC

department. The Engineering department releases the drawing and the product is

made. The format of dispatching is same in every case.

Working with Dealers

Sometimes our customer is not the manufacturer but the dealers and then

instead of quoting the price we have the price list for our products and we give them

the price. After that it is it working procedures as the rest.

 New Product Development
Introduction
 New product Development means new profits. New Product development is a

continuous and important function of marketing management. The life of a firm is

closely related to the development of new product through mechanical and

technological innovations.

New Product development includes no. Of decisions namely:

What to manufacture or buy?

How to have its packaging?

How to fix its price?

How to sell it?

In case of a manufacturing organization, the production department will develop

and produce products on the advice of the marketing department because it is

marketing department, which knows better the requirement of the customers. The

work of product planning and development is preformed by marketing department

itself. New Product development consists of the creation of new ideas, their evaluation

in terms of sales capacity and profitability, production facility, availability of resources

required for producing that product, designing and marketing of product.

The main task of the product planners is to identify specific customer needs

and expectations and align company capabilities with the changing market demands.
New Product Development is LPS:

Since LPS is a manufacturing concern, therefore, production department

develop new products with the help of marketing department because marketing

department better knows the requirements of customers.

The steps involved in the process of new product development in lPS can be

clearly understood with the help of following explanation:-

NEW PRODUCT DEVELOPMENT PROCESS

ENQUIRY

NO
FEASIBILITY REPORT REGRET

COST SHEET

QUOTATION

PURCHASE ORDER

DEV. REQ. TO R. & D. DEPT.

SAMPLE

PILOT LOT REGULARUPPLY

(1) Enquiry:-

The first step in the process of new product development is to receive enquiries

from the customers. The enquiry is, normally, in descriptive form, which contains

information regarding product design, product price, product quality and delivery time.

(2) Feasibility Report:-

The second step in the process of new product development is the preparation

of feasibility report. Under this step, enquiries received by the marketing department

are communicated to the research and development department for preparing the

feasibility report of the product. Research and Development Department analyze the

feasibility of product whether the production of the product is possible or not and if

yes, then what are the requirements?

If production of product is not possible, then a regret letter is sent to the

customer.

(3) Cost Sheet:-

Under this step, the feasibility report is sent to the finance department for

determining the cost of new product. Finance department prepares the cost sheet to

determine the unit prices of the product. Cost sheet includes the raw material cost,

labor cost, manufacturing expenses and other indirect expenses. Afterwards, the

finance department sends the cost sheet and feasibility report to the marketing

department for further processing.

(4) Quotations:

After the preparation of feasibility report and cost sheet, quotations are sent to

the customer. Quotations consist of all the information about product design, product

price, delivery time and terms and conditions regarding payment. The average time

between receipt of enquiry and sending of quotation is 21 days.

(5) Purchase Order:-

If the customer is satisfied with the terms and conditions contained in the

quotation, then he gives his approval and makes the purchase order to the

marketing department. Purchase order consists of no. Of units demanded by the

customer.

(6) Development request to R & D:-

Marketing department sends the purchase order to R&D. R&D reviews the tool

drawing, product design, availability of raw material and labor.

(7) Sample:-

Research and Development department manufactures the sample of the

product & sends the sample of the product to the customer. If the customer is

satisfied with the sample of the product, then he sends the sample approval letter to

the research and development department.

(8) Pilot Lot:-

 If the customer approves the sample, then pilot lot is prepared and given to the

customer. Pilot lot is the small quantity of product sent to the customer to check the

accuracy of the product.

(9) Regular Supply:

If the pilot lot is approved, then the company gives the regular supply of large

quantity of product.
MANUFACTURING PROCESS

Wire from wire bend or Coil

Cutting of wire

Forging

Heat Treatment

Rolling

Grinding

Plating

Finishing

Oiling

Packing

Storing
The Step involved in manufacturing process are discussed as follows:-

Wire from Bend or Coil:-

The raw material for production comes in form of coil/wire bend. These are

mostly imported from Korea.

Cutting of Wire: -

These raw materials are cut according to the size of the product.

Forging:

This is an important step in making the product. There are two types of forging

operations that are being done.

Hot Forging

Cold Forging

Our company is mainly concerned for the cold forging operation. We can

manufacture the product by machining but it is not advisable. The reason is that

by machining, we have to remove a lot of material but in forging the amount of

material is significantly reduced. Another important thing is the strength retention

of the material. The material flow line are cut in continuous. This is helpful in

retaining the material strength. The cold forging operation is used for mass

production and it is uneconomical to go for small batch production because of

number of tools involved for manufacturing.

Heat Treatment:-

After the production stage is over, the product is ready for heat treatment. The

heat treatment is done to increase the hardness of material.

Rolling:-

After the heat treatment, next step is rolling. Rolling means threading. Rolling

of the bold depends upon the requirement of the customers. It is very important

step, in manufacturing process. Rolling is the only thing, which differentiates the

screw and bolt.

Grinding:

After rolling the next step is grinding. It is mainly done for the finishing and

shininess of the product. The grinding is done also with the help of automated

machines.

Plating

Finishing and planting is done to remove the impurities in the product and to

increase its corrosive resistance and to give it a better look.

The operation is done after the material had been heat treated. The plating

department receives the work order from the PPC department as to what type of

finishing is required for the product. The customer, along with the design, gives the

type of finishing required for the product.

Packing:-

This is the last stage of production. This is the operation of packing. We

packed the products. Then it is ready for dispatch..

 STATEMENT OF THE OBJECTIVE

The main objective of the study is to know about new product development

process in the company and to know about different policies and strategies of LPS in

context to development of new product.

Apart from the above, the objective of this study is to know about how much is

the sales target of the company through new product development, how many product

are commercialized through new product & what are the expectations of the customer

when a new product is developed.

 RESEARCH METHODOLOGY
Research is the art of the scientific investigation. it refers to a search for

knowledge. The advance learners Dictionary of Current English lays down on the

meaning of research as,

A careful investigation or inquiry specially through search for new facts in

any branch of knowledge.

Research Methodology is a way to systematically solve the research problem. The

research begin its formation when the problem or objective of the research is identified

for which a research project is conducted. the main objective for which this project

research is carried out is to understand and analysis the new product development

process of company.

Research Design:

There are various methods of research design like Exploratory Research

Design, Descriptive Research Design, Diagnostic Research Design & Hypothesis-

Testing Research Design.

In the present study, Descriptive Research Design has been used.

Source of data:

Basically two kind of data are available to the researcher namely : Primary and

Secondary data.

In the present study secondary data has been used.

Method Of Data Collection:

There are various methods of data collection like observation method, interview

method, questionnaire method and schedule method. In the present study,

observation method has been used.

Analysis of Data:

After collecting the data, it was tabulated in a proper manner and was analyzed

in order to draw conclusions. The analysis is done by using various statistical

techniques.

SUMMARY OF METHODOLOGY USED

Following is the summary of the methodology used for research:

Research Design Descriptive

Data Source Secondary

Data Collection Method Observation

Sample Size 71 enquiries

Area Covered North India

 ANALYSIS 1
What is the reason of delay in sending quotation?

Average days between enquiries to quotation is 21.

Delay Reason-

Delay in preparation of feasibility report 70%

Delay in preparation of cost sheet 20%
Delay on behalf of marketing department 10%

10%

20%

70%

ANALYSIS 2
 How many orders are received out of sending quotations?

Quotations sent 50
Orders received 10

Strike Rate 20%

20%

80%
 ANALYSIS 3
How many new customers joined by development of New Product

Existing customers 90
New customers 10

10%

90%
 ANALYSIS 4
How many new customers joined by development of new Product

Target from new product development 15%

15%

85%
 ANALYSIS 5
What are the expectations of the customer when he gives the order?

Good Quality 40%

Reasonable Price 30%
Shortest Delivery Time 30%

30%
40%

30%
 ANALYSIS 6
How many products are commercialized through new product development?

During January-June

Products Commercialized 70%

Products Under Approval 23%
Products Not Approved 7%

7%

23%

70%
 ANALYSIS 7
What is the overall analysis between enquiries to quotation?

During January - June

Regret 70%
Pending 23%
Quotations sent within average time 7%
Quotations send beyond average time 23%

14%
23%
7%

56%
 CONCLUSION

On the basis of above explanation, I draw conclusion that new product

development process implemented in LPS trustworthy and profitable & the sale of the

company has enhanced to a great extent. The company has been able to attract new

customers. In spite of all these things, I believe that in order to make new product

development process more effective, the company should enhance the availability of

raw material to fulfill the requirements of customers in time. Beside more emphasis

should be placed on Zero Defect Concept so that more number of customers can be

attracted.
 FINDINGS
The findings of this study are:

1. LPS is on 3rd position in the Fasteners market.

2. The Quality of LPSs product is good.

3. The most competitor company of the LPS is Sundaram Fasteners Ltd.

4. Sales promotion activities of LPS like advertisement etc. Is not so good.

5. Network Distributor Channel of LPS is not good.

6. Price Range of LPSs Product can compete competitor like Sundaram

Fasteners Ltd.

7. The Company has been able to attract new customers.

 RECOMMENDATIONS & SUGGESTIONS
There are some suggestions that may be helpful in the growth of LPS. These are as

follows:-

1. Company should give good response to medium and small scale firms.

2. Company should reduce the delivery time.

3. Company should increase the production capacity to fulfill the requirements

of the customers.

4. Company should reduce the time taken between receipt of enquiry and

sending of quotations.

5. Company should increase the availability of raw material.

6. Company should go for e-commerce due to globalization.

7. Company should stress on Zero Defect Concept.

8. The Company should search for new markets.

 LIMITATIONS

The limitations of this study are as follows:-

1. One drawback was time constraint, i.e. the study had to be completed within

a restricted time frame.

2. Lack of experience of researcher may cause some error.

3. Sample size was small, so it was difficult to find adequate results.

4. Sampling may not present the exact pictures of market. It is just

representative of population.
 QUESTIONNAIRE

QUES:- 1) What is the reason of delay in sending quotation?

(A) F R Delay [ ] (B) Cost Sheet Delay [ ]

(C) Delay on behalf of marketing dept. [ ]

QUES:- 2) How many orders are received out of sending quotations?

(A) Quotations sent [ ] (B) Orders received [ ]

QUES:- 3) How many new customer joined by development of new product?

(A) Exiting customer [ ] (B) New customer [ ]

QUES:-4) What are the expectation of the customer when he give the order

(A) Good Quality (B) Reasonable Price [ ]

(C) Delivery time [ ]

QUES:-5) How many products are commercialized through new product

development?

(A) Products commercialized [ ]

(B) Products under development [ ]

(C) Products not required by customer [ ]

QUES:-6) Is There any Sakes target fixed by the company through new product

development?

(A) Yes [ ] (B) No [ ]

 BIBLIOGRAPHY

BOOKS

Kolter, Philip, Marketing Management, New Delhi, Prentice Hall of India Pvt. Ltd.

Kothari, C.R., Research Methodology, New Delhi, Wishwa Parkashan Pvt Ltd.

Ramaswamy, V.S. Marketing Management Planning Implementation and Control.

COMPANY MANUAL

MAGAZINE

MANUAL

Website : WWW.LPSINDIA.COM