1.

The pump buying process at Western Coalfield can be summarized as follows:

Problem Recognition Stage:

 Mr. Das, the Mine Manager, identifies issues with the existing pump, including
frequent breakdowns and high repair costs.

Needs Description Stage:

 The Mine Superintendent acknowledges the need for replacement and approves it in
principle.

Product Specification Stage:

 A technical committee, headed by the Engineering Manager, recommends the

purchase of a 200 HP pump.

Supplier Search Stage:

 The Purchase Manager advertises the pump specifications and invites suppliers to
quote.

Proposal Solicitation Stage:

 20 applications are received, and quotations are opened and tabulated.

Supplier Selection Stage:

 A committee evaluates the quotations and shortlists 3 suppliers.

 Negotiations are held, and all suppliers agree to similar prices and terms.

 The committee decides to purchase from Kirloskar based on the recommendation of

the Engineering Manager.

Order Specification Stage:

 A purchase order is issued to Kirloskar pumps, detailing product specifications, price,

terms, and conditions.

Performance Review:

 The pump's performance is monitored for 90 days, found satisfactory, and payment
is released.

Overall, the process involves problem identification, specification, supplier selection, and
performance evaluation, with input from various stakeholders to ensure a suitable and
reliable pump is procured for Western Coalfield.

2. In the buying process at Western Coalfield, the participants and their roles were as follows:

Mr. Das (Mine Manager):

 Initiator of the process by identifying issues with the existing pump and
recommending its replacement.
 Mine Superintendent:

 Approver of the replacement in principle and overseer of the entire process.

Technical Committee (headed by Engineering Manager):

 Responsible for specifying the requirements of the new pump based on technical
considerations.

Purchase Manager:

 Responsible for procuring the pump, including issuing advertisements, receiving

quotations, and managing negotiations.

Suppliers:

 Provide quotations and negotiate terms with the buying organization.

Committee Members (Deputy Mine Superintendent, Engineering Manager, Mine Manager,

Finance Manager, Purchase Manager):

 Evaluate supplier quotations and negotiate terms.

 Each member provides input based on their expertise and perspective (e.g.,
technical, financial).

 Ultimately, they make a recommendation to the Mine Superintendent regarding the

preferred supplier.

Chairman (Decider):

 Makes the final decision based on the committee's recommendation.

 Ensures that the chosen supplier meets the organization's needs and requirements.

End Users :

 Provide input on the usability and functionality of the pump based on their
operational experience.

Each participant plays a crucial role in different stages of the buying process, contributing
their expertise and perspective to ensure the selection of the most suitable pump for
Western Coalfield.

3. No, Western Coalfield may not buy all products using the same buying process described in
the case. The process outlined in the case appears to be specific to a significant and critical
purchase decision, such as the replacement of a pump in the mine.

For routine or less critical purchases, Western Coalfield may have streamlined procurement
processes in place that involve fewer steps and participants. These processes may be more
standardized, automated, or delegated to specific departments or individuals within the
organization.

Additionally, the complexity and significance of the purchase, as well as the potential impact
on operations and finances, will influence the decision to use a formal buying process like
 the one described. For routine or low-value purchases, Western Coalfield may opt for simpler
procurement methods to expedite the process and minimize administrative overhead.

4. The evaluation method used to select the pump supplier involved multiple stages:

 Technical Evaluation: The first stage involved shortlisting suppliers based on their
size and technical reputation. This step focused on assessing the capability and
reliability of potential suppliers in meeting the technical requirements for the pump.
 Negotiation: After shortlisting, negotiations were conducted with the shortlisted
suppliers. This involved discussing terms such as price, delivery schedule, payment
terms, and warranty agreements.
 Techno-commercial Evaluation: Following negotiations, a techno-commercial
evaluation was conducted to compare the offerings of the shortlisted suppliers. This
evaluation likely considered factors such as product quality, service reliability,
warranty terms, pricing, and overall value proposition.
 Supplier Recommendation: Based on the techno-commercial evaluation, the
committee recommended a supplier to the mine superintendent. The
recommendation was made unanimously after considering input from various
stakeholders, including the mine manager, engineering manager, finance manager,
and purchase manager.

Overall, the evaluation method was comprehensive, considering both technical and
commercial aspects to ensure that the selected supplier could meet the requirements of
Western Coalfield effectively.