MARINE & INDUSTRIAL ENGINEERS, SHIP CHANDLER & MARINE SERVICE STATION

CHAPTER – II

FUNCTIONAL DEPARTMENT:

PRODUCTION DEPARTMNET

FINANCE AND ACCOUNTS

MARKETING

HUMAN RESOURCE

PURCHASE

QUALITY CONTROL

PRODUCTION DEPARTMENT

Our Process

Consultation

Material Selection

Prototype

Manufacture

Final Packaging

Consultation
Your Sales Engineer will collaborate with you to fully understand the details of the design challenge
you are facing, considering application, end use, quality requirements and cost constraints.

Material Selection

Our Sales Engineers have an average of 15 years of experience working with soft flexible materials.
This wealth of knowledge plus the strong partnerships we share with the world’s leading material
manufacturers allow us to suggest and supply the most suitable materials for your solution.

Prototype

We offer a number of prototyping capabilities, including computer generated prototypes, laser or

water jet cutting, blade cutting plotters and multilayer laminations. No tooling is required. Just
provide us with your CAD file and we will create a prototype in 24 hours (for stock materials only).

Manufacture

With the design details and selected materials, our engineers will devise the most efficient, cost
effective and high quality process to manufacture your custom components to your specifications.

Final Packaging

After your component parts are fabricated in accordance with precise industry standards, we will
package them as your assembly process requires: individually, sheets, or rolls. In addition, we have
the ability to add industryspecific processes, such as clean rooms for medical component part
production.
High Speed Progressive Stamping

As a leader in progressive stamping and precision metal components, Marion Manufacturing handles
orders from specialized low volume custom components to high volume commodity parts.

Our engineering group is available to work closely with customers when needed. Consider us an
extension of your R&D department when it comes to refining the specifications for cost-effective
production.

We have helped numerous customers reduce inventories and increase efficiencies by creating tooling
to create multiple or matched products.

Learn More Contact Us

COMPLETE TOOL ROOM CAPABILITY provides Marion customers with a comprehensive on-
site toolmaking service. A new CAD/CAM system and expanded Wire EDM department allow us to
produce developmental parts. Then, using the same or modified computer programs, we proceed
directly to hard tooling for production. Marion also maintains its own heat treating facility for its
tools. Our captive toolmaking capability guarantees customers minimum downtime, and economical
and efficient on-time delivery of production parts.
STATE-OF-THE-ART SCHEDULING CAPABILITIES allow Marion to meet the delivery
schedules specified by the most demanding customer production requirements. We know that if parts
are late, lines shut down. The superior quality of our products is matched by our commitment to have
the right part in the right place at the right time... just in time, every time.
MARION'S DESIGN AND PRODUCTION EXCELLENCE have made us an accepted leader for
the most difficult stamping and wire forming parts. Many that we routinely manufacture are not
produced—or even considered for a quote — by the competition. When you have a new part, or
require design/engineering assistance in developing an original part for a new application, start
where the industry starts: The Marion Manufacturing Company.
NATIONWIDE SERVICE from technically qualified Marion representatives is readily available in
most industrial centers throughout the United States. And outside those centers, they're only a day
away, standing ready to work with customers from the initial design/engineering process through
final production to product application. Every step of the way, no matter where you are, Marion is
America's Choice.
MORE THAN HALF A CENTURY OF EXCELLENCE makes the Marion Manufacturing
Company America's Choice for precision metal components from wire and strip. Leaders in the
aerospace, automotive, electrical, electronic, hardware, medical, and other industries turn to Marion
for intricate stampings, springs, terminals, wire forming, flat springs, small progressive eyelets, small
assemblies, silver contact welding, and surface mount tape and reeling. Whether the requirement is
for specialized low volume custom components or high volume commodity parts, Marion's design,
engineering and production expertise guarantee consistently unmatched levels of quality,
performance and satisfaction

Industrial Machine Manufacturing

Marion is recognized as the Leading Manufacturer of quality Metal Forming and Fabricating
Equipment, Roll Forming, Panel Machines, Coil Processing Systems, and Automated Production
Systems in today's Global Marketplace. Our Company has designed and built Practical, Cost-
efficient Equipment, providing Solutions to a broad range of Manufacturing Projects, for over
Thirty-Five Years.

Marion Customers have come to depend on Marion Manufacturing for quality, heavy-duty, cost-
effective production machinery. We work hard to design, build and service automated Metal
Forming and Fabricating Systems, providing powerful productivity gains. Whether it is new
machinery or an upgrade of existing equipment, a Marion Solution will be designed to meet your
goals.

MANUFACTURING CAPABILITIES
Our Process

The Marian Team will work closely with you every step of the way, from design to prototype to final
production. Visit the link below to find out more about our process to provide you with the best
component solution possible.

FINANCE AND ACCOUNTS DEAPRTMENT:

Introduction:

 Finance is a field that deals with the study of investments. It includes the dynamics
of assets and liabilities over time under conditions of different degrees of uncertainty and risk.
Finance can also be defined as the science of money management. A key point in finance is
the time value of money, which states that purchasing power of one unit of currency can vary
over time. Finance aims to price assets based on their risk level and their expected rate of return.
 The finance department is also responsible for management of the organization’s cashflow and
ensuring there are enough funds available to meet the day to day payments. This area also
encompasses the credit and collections policies for the company’s customers, to ensure the
organization is paid on time, and that there is a payment policy for the company’s suppliers. In
most organizations there will be some form of forecast prepared on a regular basis to
systematically calculate the ongoing cash needs.
Corporate finance:

 Corporate finance deals with the sources of funding and the capital structure of corporations and
the actions that managers take to increase the value of the firm to the shareholders, as well as the
tools and analysis used to allocate financial resources. Although it is in principle different from
managerial finance which studies the financial management of all firms, rather than corporations
alone, the main concepts in the study of corporate finance are applicable to the financial
problems of all kinds of firms. Corporate finance generally involves balancing risk and
profitability, while attempting to maximize an entity's assets, net incoming cash flow and the
value of its stock, and generically entails three primary areas of capital resource allocation. In the
first, "capital budgeting", management must choose which "projects" (if any) to undertake.

Company Must Do the Following:

 Identify relevant objectives and constraints: institution or individual goals, time horizon, risk
aversion and tax considerations.
 Identify the appropriate strategy active versus passive hedging strategy
 Measure the portfolio performance.
Financial services:

 An entity whose income exceeds its expenditure can lend or invest the excess income to help that
excess income produce more income in the future. Though on the other hand, an entity whose
income is less than its expenditure can raise capital by borrowing or selling equity claims,
decreasing its expenses, or increasing its income. The lender can find a borrower financial
intermediary such as a bank or buy notes or bonds corporate bonds, government bonds, or mutual
bonds in the bond market. The lender receives interest, the borrower pays a higher interest than
the lender receives, and the financial intermediary earns the difference for arranging the loan.

 A bank aggregates the activities of many borrowers and lenders. A bank accepts deposits from
lenders, on which it pays interest. The bank then lends these deposits to borrowers. Banks allow
borrowers and lenders, of different sizes, to coordinate their activity.

 Finance is used by individuals personal finance, by governments public finance, by businesses

corporate finance and by a wide variety of other organizations such as schools and non-profit
organizations. In general, the goals of each of the above activities are achieved through the use of
appropriate financial instruments and methodologies, with consideration to their institutional
setting.

Roles and responsibilities of a finance department:

 The activities expected from a finance department cover a wide range from basic bookkeeping to
providing information to assisting managers in making strategic decisions. What to expect from
 your finance department will depend largely on factors such as how much involvement the
owner/manager has in the organization.

 At the base level, your finance department will be responsible for all the day to day transactional
accounting for the business. This will include the tracking of all transactions and the
management of any government reporting. In very small owner-managed businesses this role is
often filled by a family member with accounting experience. An outside accounting firm is
usually used for annual financial statements and returns. In larger organizations this role will
extend right through to preparing the financial statements with an external auditor engaged for
assurance purposes.

 The finance department is also responsible for management of the organization’s cashflow and
ensuring there are enough funds available to meet the day to day payments. This area also
encompasses the credit and collections policies for the company’s customers, to ensure the
organization is paid on time, and that there is a payment policy for the company’s suppliers. In
most organizations there will be some form of forecast prepared on a regular basis to
systematically calculate the ongoing cash needs.

 Where there are cash needs beyond the day to day working capital, the finance department is
responsible for advising and sourcing longer term financing. Financing may be obtained though
bank or private lender debt or, in applicable firms, share issues to private investors. If the
organization is ready to target angel investors or venture capitalists the finance department will
be key in preparing the documents required for these presentations and may work with outside
consultants on a company valuation. In larger firms considering public share offerings the
finance department will assist with the preparation of the offering documents but will likely also
use outside consultants to advise on this complicated process.

Maintain Accounting:

With the demands of current economic climate and new regulations and laws, CFO
organizations today are becoming increasingly focused on managing cash flow and working capital
efficiently, improving customer experience, accuracy and regulatory transparency, and driving
business performance and policies based standardization. The finance function is gaining in strategic
importance and there is a call for business intelligence, forecasting and budgeting.
Process of Finance Department:
Finance Performance and Process Optimization
 Finance and Accounting, Treasury management, Tax business processes impacting control
 Management and statutory reporting, Internal controls, Reconciliations
 Inter-company accounting, Treasury optimization, Cost management
 Finance process standardization and automation, Analytical capabilities, Financial
consolidation
Finance Enterprise Performance Management
 Enable success of finance business partners and improve overall profitability
 Revenue reporting, cost reporting, client/product profitability, budgeting & planning
 Consolidation reporting, key performance indicators and others.
Finance Technology Transformation
 Process automation, finance technology standardization, and implement innovative solutions
 We help you achieve ˜30-50% savings in Finance technology cost, ˜40-50% savings in IT
shared services cost, and more than 50% savings in finance processing cost
Shared Service Transformation and BPO Advisory
 Reduce costs, improve productivity and promote timely execution
 Enable better decision making, leverage existing and exploit emerging technologies
 Ensure acceptable levels of control and risk management
 Optimize organizational capabilities and promote collaboration across the extended enterprise

HUMAN RESOURSE DEPARTMENT :

Introduction:

 Human resources are the people who make up the workforce of an organization, business sector,
or economy. "Human capital" is sometimes used synonymously with "human resources",
although human capital typically refers to a more narrow view i.e., the knowledge the individuals
embody and economic growth. Likewise, other terms sometimes used include "manpower",
"talent", "labour", "personnel", or simply "people". A human resources department HR
department of a company performs human resource management, overseeing various aspects
of employment, such as compliance with labour law and employment standards, administration
of employee benefits, and some aspects of recruitment and dismissal

 Certain statements made in this Analyst Meet concerning our future growth prospects are
forward looking statements, which involve a number of risks and uncertainties that could cause
actual results to differ materially from those in such forward-looking statements. The risks and
uncertainties relating to these statements include, but are not limited to, risks and uncertainties
regarding fluctuations in earnings, our ability to manage growth, intense competition in services
including those factors which may affect our cost advantage, wage increases in India, our ability
to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-
time frame contracts, client concentration, restrictions on immigration, industry segment
concentration, our ability to manage our international operations, reduced demand for technology
in our key focus areas, disruptions in telecommunication networks or system failures, our ability
to successfully complete and integrate potential acquisitions, liability for damages on our service
contracts, the success of the companies in which Infosys has made strategic investments,
withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal
restrictions on raising capital or acquiring companies outside India, and unauthorized use of our
intellectual property and general economic conditions affecting our industry.

 Many well-known examples of the use of information technology for competitive advantage
involve systems that link an organization to suppliers, distribution channels, or customers. In
general, these systems use information or processing capabilities in one organization to improve
the performance of another or to improve relationships among organizations. Declining costs of
capturing and using information have joined with increasing competitive pressures to spur
numerous innovations in use of information to create value. The ideas do not constitute a
procedure leading inexorably to competitive advantage. However, they have been of value when
 combined with an appreciation of the competitive dynamics of specific industries and a grasp of
the power of information.

 Results from "The Gap Between and Strategic HR in the UK",(June 2006) a study by talent
management solutions company Taleo, show a significant disconnect between HR's strategic
functions, including talent acquisition and workforce planning, and ability to support these
business initiatives.

Collect existing data such as:

 Hiring statistics (acceptance rate, hiring rate, hiring projections)

 Turnover

 Compensation and benefits philosophy and practice

 Exit interview summaries

 Employee complaints (discrimination, harassment, safety, other)

 Promotion and advancement practices and trends

 Human Resources budget and expenditures.

Where possible, compare the data collected with market data. This information will provide
you with a point of view for the next phase of the audit: the interviews. If, during the interview,
discrepancies arise between the data and the interviewee's answer, ONE can explore the reasons for
the discrepancy(s).
Requirement

 Vacuum cleaning is asked members of the solutions provider community to rank the best sources
of recruitment. The best recruitment sources according to majority of the respondents were
'Referrals'. Yes, referrals or word-of-mouth is no doubt the best source of recruitment. This also
saves a lot of time energy spent in testing a new candidate's caliber. "There is an element of trust
involved. When a person is sent to us by a person known to us and who knows our requirement,
he or she is the best we can get," said one HR manager.
 The next best source for recruitment is consulting agencies, job sites and print advertisements in
that order. Surprisingly, very few responded with 'Campus recruitment' as an alternative source
for getting people.
 It is assuming ever important role in wake of the advancement of technology which has resulted
in ever increasing competition, rise in customer’s expectation of quality and service and a
subsequent need to lower costs. It is also become more important globally in order to prepare
workers for new jobs. In the current write up, we will focus more on the emerging need of
training and development, its implications upon individuals and the employers.

Human resources development:

 Human resources play an important part of developing and making a company or organization at
the beginning or making a success at the end, due to the labour provided by employees. Human
resources is intended to show how to have better employment relations in the workforce. Also, to
 bring out the best work ethic of the employees and therefore making a move to a better working
environment.

Human resources planning:

 Administration and operations used to be the two role areas of HR. The strategic planning
component came into play as a result of companies recognizing the need to consider HR needs in
goals and strategies. HR directors commonly sit on company executive teams because of the HR
planning function. Numbers and types of employees and the evolution of compensation systems
are among elements in the planning role. Various factors affecting Human Resource planning
Organizational Structure, Growth, Business Location, Demographic changes, environmental
uncertainties, expansion etc. Additionally, this area encompasses the realm of talent
management.

Recruitment and Hiring:

 How to create job postings that attract qualified applicants, scheduling candidate interviews and
asking effective interview questions are ideal topics for an HR seminar on recruitment and
selection. Fair employment practices, such as those required by Title VII of the Civil Rights Act
of 1964, are fundamental to recruiting. Therefore, beginning the seminar with an explanation of
fair employment practices creates the necessary foundation for recruitment learning objectives.
 The first point of contact a prospective employee has with a company is generally through the
HR department. Specific duties vary depending on the size of the company and department, but
HR typically places advertisements for new employees and may attend job fairs and handle other
recruiting duties. Staff will screen resumes, check references and perform any necessary
background checks, and often conduct first interviews with applicants, coordinating follow-up
interviews with other company departments and managers. HR performs orientations of new
hires, informing them of policies, procedures, benefits and other relevant information.

Compensation and Benefits:

 A key HR function is how the company pays it workers. The Fair Labor Standards Act of 1938
should be discussed first, because it's the federal law that mandates employees' wages, overtime
pay and exempt and nonexempt employee classification. An explanation of how labor conditions
impact wages and compensation practices is a ancillary topic that assists compensation specialists
in learning more about pay strategy for their organizations.
 Some companies offer new employees letters of employment or employee contracts, which are
drafted by HR staff. In some companies, particularly small businesses, HR will take on some
payroll duties, such as tracking vacation time and pay, maintaining a holiday schedule, creating
policies on flexible work hours and updating records when employees are promoted or transfer
departments. Employee benefits, such as health insurance, retirement plans, transportation
subsidies and other perks, are considered part of the overall compensation package and are
administered by the HR department. In the big picture, HR monitors salary and wages within the
company's industry to ensure compensation remains competitive. The department also helps
management map out pay structures within the company.

Primary Responsibilities of a Human Resource Manager:

 Similar to other department managers, a human resource manager has two basic functions:
overseeing department functions and managing employees. For this reason, a human resources
manager must be well-versed in each of the human resources disciplines – compensation and
benefits, training and development, employee relations, and recruitment and selection. Core
competencies HR managers have are solid communication skills and decision-making
capabilities based on analytical skills and critical thought processes.

Overall Responsibilities:
 Human resource managers have strategic and functional responsibilities for all of the HR
disciplines. A human resource manager has the expertise of an HR generalist combined with
general business and management skills. In large organizations, a human resource manager
reports to the human resource director or a C-level human resource executive. In smaller
 companies, some HR managers perform all of the department's functions or work with an HR
assistant or generalist that handles administrative matters. Regardless of the size of department or
the company, a human resource manager should have the skills to perform every HR function, if
necessary.

MARKETING DEPARTMENT:

INTRODUCTION:
 The fundamentals of consumer marketing are equally applicable to the industrial marketing. The
work of the industrial market is exclusively different, as all the forces of market that affect
industrial demand. The managers of industrial market must react in a different way to change the
markets, develop products to meet these changes, and market them in exclusively different ways
to the target and sophisticate customers while maintaining corporate policies. Therefore,
industrial marketers face many distinctive marketing situations not normally encountered in the
consumer market. Further, the industrial market has been the backbone of the high standard of
living enjoyed by consumers in past or since the industrial revolution at global level. It is
dynamic and challenging in any nation’s economic growth and development. As and when the
principles, knowledge, and practice of marketing cut across all industries, to market effectively in
 the industrial market than it becomes compulsory for the policymakers to study the industrial
marketing differently and to understand the Indus-trial marketing problems.
THE CONCEPT OF INDUSTRIAL MARKETING
 The marketing concept for the business enterprises of industrial buyer is to define the needs of a
target market and modify the organization’s product or service to satisfy those needs more
successfully than its competitors. The marketing concept is applicable and important in both the
industrial and consumer markets due to the differences in terms of the nature of markets. It
isevident that consumer marketers have embraced the marketing concept more fully than their
industrial counterparts because Industrial customers like organizations-businesses, institutions,
and government agencies having unique needs.

 The industrial marketing concept involves more than facilitating exchange with these customers
because it is based upon the structure of a partnership between buyer and seller for the purpose of
achieving the organizational goals of both. Generally, industrial organizations tend to be
technically oriented-much more interested in a particular product and its technical development.
Many managers in such firms are promoted out of engineering and research and development
departments. Sometimes technical values tend to dominate their decision-making. When it
happens, there is a risk of “becoming so charmed with a technical accomplishment or particular
product parameters that the necessary flexibility for responding to customer needs in a
competitive market place disappears.

1. PRODUCT EXCHANGE
 The features of a product or service involved have a significant impact on the industrial
exchange process. The ease of exchange depends upon the ability of the seller to identify the
buyer’s needs and the product’s potential to satisfy those needs. If the exchange is good in
terms of price, quality, quantity, and after sale services then it will give a positive symbol for
the customer loyalty in terms of product/service loyalty.

2. INFORMATION EXCHANGE
 The information consists of technical, economic, and organizational questions:pre and post
sale maintenance and servicing must be exchanged to the participants of business
organizations. Products and services must be planned and designed to serve customers
efficiently. To achieve it, buyers and sellers tend to work together, exchanging product
specific information over long periods of time.
3. FINANCIAL EXCHANGE
 The granting of credit or the need to exchange money from one currency to another at the
time of dealing with foreign buyers/customers are included in this exchange.
4. SOCIETAL EXCHANGE
 Societal exchange is important to reduce uncertainty between buyer and seller, avoiding
short-term difficulties, and maintaining the long-term exchange relationship to one another. A
number of aspects of an agreement between buyers and sellers in the industrial market are
based on arbitration and mutual trust, not fully formalized or based on legal criteria until the
end of the transaction period.

CHARACTERISTICS: INDUSTRIAL AND CONSUMER MARKETING

 The basics of marketing management: deciding the target markets; finding out the needs and
wants of the target markets, developing products and services to meet the requirements of
those markets, and evolving marketing programmers or strategies to reach and satisfy target
 customers in a better and faster way than competitors apply to both consumer and industrial
marketing. The industrial markets are geographically concentrated; the customers are
relatively fewer; the distribution channels are short; the buyers (or customers)are well
informed; the buying organizations are highly organized and use sophisticated purchasing
techniques; the purchasing decisions are based unobservable stages in industrial marketing.
Industrial marketing is more responsibility of general management in comparison to
consumer marketing. Sometimes, it is difficult to separate industrial marketing strategy from
the corporate (company) strategy. But in case of consumer marketing, many times the
changes in marketing strategy are carried out within the marketing department, through
changes in advertising, sales promotion, and packaging strategies. However, the changes in
industrial marketing strategy generally have company-wide implications.

MARKET CHARACTERISTICS
 Basically, the significant differences exist between industrial and consumer market
characteristics that affect the nature of industrial marketing. These differences are: size of
market; geographic concentration; and competitive nature of the markets.
Size of the Market
 Compared to the great number of households that constitute the mass market for consumer
goods and services, In the case of industrial markets, it is common to find less than 20
companies to represent the total market for an industrial product or service. In fact, only three or
four customers may comprise the major portion of a total market. For example, for a consumer
product like toothpaste or soap, a mass market, consisting of all the households in India, exist.
Further, in industrial arena, oligopolistic buying organizations (very large firms) tend to
dominate many markets such as, large power transformers or high-tension switchgears, there are
limited numbers of customers-mainly State Electricity Boards, large private and public sector
organizations. While there are relatively few industrial customers, they are larger in size,
purchase larger quantities, and engage in this volume purchasing on are peat basis.
Geographical Concentration:
 Industrial customers also tend to be concentrated in specific areas of the India such as Andaman
Nikobar, the Leh Hills. Such concentration occurs mainly because of natural resources and
manufacturing processes. For example, the geographic location of natural resources explains the
concentration patterns of most energy-producing firms. Only a handful of counties in California,
Oklahoma,. Texas, and Louisiana produce the bulk of our gas and oil. Manufacturers whose
 production processes add weight to their products tend to locate near customers, while those
whose processes subtract weight tend to locate near sources of input. Manufacturers of
computers other advanced electronic products present an interesting case of plant location. They
tend to concentrate in areas that have advanced teaching and research facilities and desirable
living locales such as the Silicon Valley in Bangalore. Such locations are chosen to facilitate the
attraction of intelligent, educated employees, who seek both intellectual challenges and physical
pleasures.
Competitive Nature:
 An additional difference between the two markets is the nature of oligopolistic buying. In the
industrial arena, oligopolistic buying organizations, organizations that are very large firms, tend
to dominate many markets. For instance, the small number of large automobile producers in the
United States purchase 60 percent of all synthetic rubber, 60 percent of all lead, and 72 percent
of all plate glass produced in the United States. These oligopsonists’ reactions to changes in one
another are buying practices affect industrial marketing strategy decisions.

Buyer Behavior:
 In industrial marketing, the buying process is more difficult as compared to consumer
marketing. The purchase decisions in industrial marketing are based on many factors, such as
compliance with product specifications product quality, availability, timely supply, acceptable
payment and other commercial terms cost effectiveness, after-sales service, and so on rather
than on social and psychological needs. The buying decisions generally take a longer time and
involve many individuals from technical, commercial/materials, and finance departments. After
the initial offer made by a seller, there are negotiations and exchange of information between
the specialists and representatives from both the buyer and the seller organizations. Therefore,
inter-organizational contacts take place and interpersonal relationships are developed. The
relationships between the sellers and buyers are highly valued and they become stable in the
long run because of a high degree of interdependence. Changes are few and occur relatively
slowly. Buyers charge problems in searching out and qualifying suppliers. The cost of selecting
a supplier who cannot meet delivery requirements or who delivers an unsatisfactory product
can be high. Thus, the purchasing firm must be certain of a potential supplier’s technical,
administrative, and financial capabilities.
DERIVED DEMAND
 The single most important force in marketing of industrial products and services is derived
demand. Industrial customers buy goods and services for making these in producing other goods
and services and finally produced product/services old to the consumers. In industrial marketing,
the demand for industrial goods and services is derived from consumer goods and services. For
example, the demand for precision steel tubes does not exist in market. It is demanded for the
production of bicycles, motorcycles, scooters, and furniture (steel tables and chairs), which are
consumed by the consumers. Thus, the demand for precision steel tubes is derived from the
forecast of consumer demand for bicycles, motor- cycles, scooters, and furniture. In case of
capital goods, such as machinery and equipment (e.g. machine tools, textile machinery, leather
machinery, etc.) that are used to produce other goods, the purchases are made not only for the
current requirements, but also in anticipation of profit; form the future usage. If businessmen of
feel that there may be a recession in near future, their purchases will be drastically curtailed.

CROSS-ELASTICITY OF DEMAND
 Simply, elasticity is the change in demand from a change in price. The demand for most of the
industrial goods can be inelastic (i.e. insensitive to changes in prices) for a particular industry,
but at the same time, highly elastic (i.e. sensitive to changes in prices) for individual suppliers.
This is because, the total industry demand comes from the united needs of all the customers
rather than price, and hence it is relatively inelastic. Though, between the various suppliers, a
slight change in the price by one firm may create a major change in the quantity and thereby, be
highly elastic for anyone firm. Cross-elasticity of demand is the reaction of the sales of one
product to a price change in another product. This concern present in both consumer and
industrial marketing, but it is more imperative in industrial marketing as it can have a dramatic
impact on the marketing strategy of an industrial firm. For example, the demand for aluminum is
related to the prices of wood and steel for the doors and window frames, as they are close
substitutes.

 Apart from other advantages of aluminum doors and windows, the cost comparison with steel
and wooden door and window frames play an important role in the purchase decisions in the
construction of houses, commercial offices, factories, hotels, hospitals, and soon. Aluminum
extrusion companies regularly collect the information on cost of steel and wood, and advertise
 the advantages of use of aluminum in terms of negligible maintenance cost, elegant look,
environment, friendly in comparison to wood, and so on. Whenever there is a change in the price
of aluminum due to changes in excise duty or other input costs, there is an impact on the sales of
doors and windows made out of wood or steel. The reverse is applicable for changes in the prices
of steel or wood. Thus, the marketing persons working in the aluminum extrusion companies
should recognize that the cross-elasticity of demand exists for their products.

PURCHASE DEPARTMENT :

PURCHASING

Marian electric co ltd follows the path of purchasing which is to produce materials at the right place,
right quality, right time, right quantity, right purpose, and right contractual terms. The company
adopts decentralized method of purchasing. Purchasing is done on foremost it depends on the order
received from customers and the quality of goods/products required by them. Purchasing is done
through long term contracts, through personnel enquiry and also through negotiations.

STORAGE

Storage protects goods, provides supply of goods, helps to adjust, demand and supply, shifts risk and
promote orderly marketing.

PACKING

Packing in Marian is done by keeping the following points in view:-

 To provide the products until it is used.

 To provide the consumer convenience.
 To minimize distribution cost, handling cost, storage cost, transportation cost etc.

Packing also depends on the mode of transportation used to transport the products. The products used
to pack semiconductors and photovoltaic are cotton thermion packing and wooden boxes.
LABELLING

The products of the Marian electric co ltd are packed in boxes that have prints of MARIAN-EDN on
it. That itself acts as label and brand name of its products.

PRICING STRATEGY

Company is adopting different types of pricing strategy for its products. It is based on the demand for
the products, credit period, prompt payment, performance of the customer, manufacturing of
products based on customer’s specification and market condition.

The total cost of production is first estimated. When the demands are more favourable, then
skimming price strategy is adopted.

 Some time a customer may stipulate a particular specification of product. At that time the
company charges special price for its products.
 Company follows “penetration strategy” whenever there is a high competition in the market.
 Company also makes a price variation based on the mode of payment and also extended
credit period.
 If the mode of payment is immediate (cash purchases), company shares lower price and also
gives cash discounts.
 If the credit period is more than acceptable time, company charges higher rates for its
products.

DISPATCHING;

This is the last step in KEC marketing where the products manufactured are dispatched to the
concerned customers.

RESPONSIBILITIES OF HOD DEPARTMENT

 Responsible for disposal of quality of the product.

 Preparation of the order requirement plan in cases of direct customers.
 Co-ordination in resolving issues with the customers in cases of any contract review
problems.
 Control of the customers drawings.
 Approval of the material indent to purchase department.
  Handling, storage, packaging, preservation and delivery of finished goods.
 Collecting of payment from customers in time.
 Ensuring proper co-ordination in order to make sure the product reaches the customer on the
due date without any complications.
 Making necessary arrangements for reaching out to the prospective customers and their
satisfaction.

STATUS of customer satisfaction is measured through 2 principle intervention

CUSTOMER SATISFACTION SURVEY;

This is carried out by sending structured questionnaire to major customers & extracts their opinion
about the product been offered. The corporate standards & quality assurance group analyze the data
collected. The satisfaction is regularly measured & reported for internal reviews & also for reviews
at higher levels in the organization. The results of these are used to update the quality management
systems & procedures.

CUSTOMER COMPLAINT HANDLING SYSTEM;

This is an important activity initiated from the inception of KEC. But the mission critical
requirement of some customers, expect past corrective/preventive actions. A comprehensive &
clearly documented system is implemented throughout the company to handle complaints more
systematically. The calls & complaints from the customers are systematically processed for timely
response & solution right from the branch, maintenance centre or the site itself. The complaints are
continuously monitored & regularly reviewed by the unit chief to ensure speedy redressel
WORK FLOW MODEL:

Marketing department receives the general enquiry from customers either in branch/unit offices,
which order enquiry, is discussed with other related departments before further process viz, design,
finance, production, purchase etc. after discussion with all the other departments the marketing
department gives a quotation to the customer. Then a final specification is received from the
customer by the unit making negotiation before receiving purchase order from the customer.

Once the purchase order is received at the office, marketing department will send an order
acceptance to MIS & production department.

The marketing department will release a specification sheet where in all customers order
specification is taken into consideration. Then the design department will design the product process
& release a bill of materials. Design department also carries the function of scheduling according to
the total time available to them to deliver the product. The purchase indent is given to the purchase
department. Then the purchase department contacts the vendors, send purchase order to the vendors,
then vendors supply the raw materials, at the time of receiving the materials an inspection is carries
on by the quality assurance department. After inspection of raw materials it is supplied to the factory
for producing AC/DC motors.

Once the production process is over, test is done & again the QAD carries on inspection (and also
inspection made by the customer himself in certain cases) once payment is made by the customer the
products will be dispatched.
SALES PROCESS

Customer enquiry study analyse and enquiry

Issues enquiry to executing agencies

Obtain approval for tender submission

Submit approved offer with draft time schedule as required

Tender opening meeting and preparation of competitive statement

Won the order

Finalization of offer

Contract signing with the customer

Thus product is finally sold to the customer

Receipt of payment
QUALITY CONTROL DEPARTMENT :

QUALITY POLICY OF KEC LTD;

“To continually improve the effectiveness of the Quality management system, conforming to
ISO 9001:2008 Standard in design, manufacture, marketing & services at competitive prices,
products of such Quality resulting in Customer Satisfaction Quality Reputation & Market
Leadership”.

Total Quality Management Depends on:

• Shareholders Satisfaction
• Employees satisfaction
• Vendor’s satisfaction
• Customers satisfaction
Quality Assurance Programmer takes into account the requirements of this part can be used,
after agreement between the purchaser and the manufacture, to verigy the quality of the
manufacturing process.

Responsibilities of Quality Assurance Department:

 Achieving the quality requirement as per ISO 9001 for products manufactured.
 Delegation of duties to the staff along with issue, distribution and control of
documents and data.
 Control of data prints & ensuring the same is maintained.
 Maintain records of products against identification and traceability.
 Carry out inspection/testing of products at predetermined stages.
 Ensure usage of only valid calibrated measuring instruments or equipment.
 Responsibility for identification, documentation, evaluation & notification to the
concerned department about the non conforming product to prevent their inadvertent
use.
 Reviewing none conforming & implementing appropriate corrective actions.
 Identification of appropriate statistical technique.

Inspection of Machine
Before start up, the machine should be tested as detailed below for proper execution and
readiness for operation:-
 Are the bolts are tightened at the feet of the machine.
 Is the machine is correctly coupled to the driving/driven machine.
 Is the machine is correctly connected.
 Do the brushes move freely in the boxes of the brush holders?
 Is the brush rocker in labelled position?
 Do the winding have minimum insulation resistance?
 Is the machine closed circuit cooling system in order?
 Are the bearings is in good condition and properly.
 Is the armature is free to rotate.
 Is the fuses and other protective device is in proper condition.
 STRUCTURE OF Q/A DEPARTMENT

DEPUTY GENERAL MANAGER

SENIOR MANAGER

MANAGER

ASSISTANT ELECTRICAL ASSISTANT MECHANICAL

MANAGER MANAGER

INSPECTOR INSPECTOR

Material Management Department functions

FUNCTIONS:
 To exercise purchase budget control based on the material requirement.
 To prepare purchase order as for the procedure of company having.
 To plan for production item are based on the purchase requirement of MMD.
 To finalize the terms of purchase.
 Maintaining the document as per purchase of raw material.
 Maintaining the quality records in MMD.
 TO feed the materials to the production division at required delivery schedules at an
economic cost.
 To plan and process material conforming to specification through adequate selection
of sub contracts.

FUNCTIONS OF QUALITY ASSURANCE DEPARTMENT:

  Incoming material inspection and testing of products received at stores as per
specified purchase requirement as per documented procedures.
 Supplier’s quality rating.
 Assisting coordination in disposition of non conforming products.
 Preparation and maintaining of quality plans.
 Maintaining housekeeping and safety regulation in testing areas.
 Conducting routine engineering test on products.
 Generation of reports for analysis, review and initiating corrective and preventive
actions.
 Ensuring proper identification, inspection status of products.
 Customer inspection.

RESPONSIBILITY
 Quality objectives.
 Control of documents.
 Control of records.

RESOURCE MANAGEMENT
 Determination of competency.
 Identification of trainee.

PRODUCT REALIZATION
 Planning of measuring instruments requirements.
 Product status identification & traceability.

PREVENTION OF PRODUCT DURING INSPECTION & TESTING

 Calibration of measuring devices.
 Providing inspection/test/quality plans.
 Verification of purchased product/in-process and find inspection & testing.

MEASUREMENT, ANALYSIS & IMPROVEMENT

 Monitoring and measurement of product.
 Control of non-conforming products.
 Analysis of product.
 Continual improvement.
 Corrective action/prevention action.