A SUMMER REPORT

ON

A STUDY OF PARTS AND WAREHOUSE OPERATIONS

AND MEASURING ITS SATISFACTION INDEX
Undertaken At

Submitted for the partial fulfillment of

PGDM-INTERNATIONAL BUSINESS
2015-17

Under the Guidance

of :
Mr. Sudip Kargupta
HOD of Parts
Department
| 1 HCEI

Submitted by :
Sanskriti Dhumal
IB1513354
International Business

DECLARATION

I SANSKRITI DHUMAL hereby declare that the following documented project titled
A STUDY OF PARTS AND WAREHOUSE OPERATIONS AND

MEASURING ITS SATISFACTION INDEX.

is an authentic work done by me as a part of my study. The findings of this project are based on
the data collected by myself.
The project was undertaken as a part of course curriculum of PGDM in BALAJI INSTITUTE
OF INTERNATIONAL BUSINESS.

SANSKRITI DHUMAL

|2

ACKNOWLEDGEMENT
Preservation, inspiration and motivation have always played a key role in the success of any
venture. In the present world of competition and success, training is like a bridge between
theoretical and practical working; willingly I prepared this particular Project.
First of all I would like to thank the supreme power, the almighty god, who is the one who has
always guided me to work on the right path of my life.
My special thanks to my training mentor Mr. Sudip Kargupta and to other staff members of
Hyundai Constructions Equipment Pvt Ltd.
My special thanks to all the teaching as well as non teaching members of the college for their
guidance, valuable suggestion, encouragement, care and concern. They have been the guiding
light throughout the study.
I am also thankful to all the friends and family for their support, love, help and encouragement.

SANSKRITI DHUMAL
DATE-29TH
JULY, 2015.

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TABLE OF CONTENTS

Sr.
No.

|4

Title

Page
No.

Executive Summary

Objectives of the study

Industry profile
-Industry Information
-Parent Company

7-17

Company profile

18

SWOT Analysis

20-26

Research

27

Data analysis and interpretation

29-36

Limitations of the study

37

Conclusions and findings

38

10

Recommendations

39

11

Bibliography

40

12

Appendix
-Questionnaire

41

EXECUTIVE
SUMMARY

This Report is a summary of the work done as a summer trainee in HYUNDAI CONSTRUCTION

EQUIPMENT INDIA PVT LTD.

.I divided this project report into many phases. The report is about the STUDY OF PARTS AND
WAREHOUSE OPERATIONS AND MEASURING ITS SATISFACTION INDEX.
The project report begins with the detailed introduction of the industry followed by the detailed information of
the parent company of Hyundai Construction Equipment India Pvt Ltd. which Hyundai Heavy Industries. Then
is the detailed introduction of HYUNDAI CONSTRUCTION EQUIPMENT INDIA PVT LTD . The
SWOT analysis of the company have been included in the project report.
The project report contains the information about various parameters based on which the satisfaction index was
measured.
Then primary data has been collected and the responses have been noted and then transcribed . The main focus
of the questions is on the various parameters of the company regarding availability of parts, price, packaging,
etc.
Then recommendations and conclusion have been made on the basis of primary data , which has also
been described in detail in the project report.

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|6

OBJECTIVE OF THE STUDY

The objective behind doing this survey is as follows :

Identifying the problems that occur for customers/dealers with the companys
products or service.

Assess the performance of its customer-interface (warehouse service, logistics

service, after sales service, etc.) and staff (salespeople, after service assistance,
etc.).

Improve its processes and standards for delivery.

Understand customers needs so the company can help them have a better overall
experience.

To know the scope of improvement where the company is not doing well.

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INDUSTRY PROFILE & PARENT COMPANY

Global Construction Equipment Market

Construction equipment, also known as heavy equipment, are specially designed

machinery for performing construction operations. These equipment are used for different
functions such as drilling, hauling, excavating, paving and grading. The global
construction equipment market covers different industries including manufacturing, oil
and gas, forestry, military and public works. The global construction equipment market is
expected to exhibit steady growth in the forecast period 2015-2020. Growing industrial
activities and swift residential & commercial development along with increased
investment of government in the infrastructure sector, will lead to an overall rise of the
global construction equipment market.

Increasing application of construction equipment in operations such as earthmoving,

excavation, and lifting & material handling, is expected to fuel the market for
construction equipment. Currently, earthmoving application holds a relatively higher
market share as compared to the other applications. Geographically, the market is
segmented into North America, Europe, Asia-Pacific and LAMEA. Asia-Pacific is
presently the largest market for construction equipment and would grow at the highest
rate during the forecast period. The growth would primarily be driven by the ongoing
developments in the real estate and infrastructure sector, which would foster the demand
for construction equipment in this region.

The construction equipment market is segmented based on solution, type, industries,

application and geography. Solutions segment includes product and services segments.
Product segment includes all the construction equipment including dozer, crane and
excavator. Service segment includes rental and maintenance service of the equipment.
The application segment includes excavation & mining, lifting & material handling, earth
|8

moving, transportation and others. Based on type, the market is segmented into loaders,
crane, dozers, forklift and others.

|9

Hyundai Heavy Industries Co., Ltd.

(HHI) is the world's largest shipbuilding
company,[2][3] headquartered in Ulsan, South
Korea. It has seven business divisions:
Shipbuilding, Offshore & Engineering,
Industrial Plant & Engineering, Engine &
Machinery, Electro & Electric Systems,
Construction Equipment, and Green
Energy.

PRODUCTS

Shipbuilding: Containership, Drillship, LNG Carrier, Naval ship - including technologies

such as Skybench.
Construction Equipment: Excavator, Wheel Loader, Backhoe Loader, Road Roller,
Forklift
Offshore & Engineering: FPSO, Semi-submersible
Industrial Plant & Engineering: Power plant, Oil & Gas production facility, Desalination
plant
Engine & Machinery: Marine engine, Engine power plant, Industrial robot
Electro Electric Systems: Transformer, Gas Insulated Switchgear, Substation
Green Energy: Wind turbine, Solar module

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The Companys Business

Divisions are as above.

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About company

Date of Establishment : 1973. 12. 28

Date of Listing : 1999. 8. 24
No. of issued stocks: 76,000,000 stocks
Paid-in Capital : KRW 380 bil.
Market Value : KRW 6,672 bil. (As of December 30, 2015)
Credit Rating : A2+ (Commercial Paper), A+ (Corporate Bond)
Koreas large conglomerate ranking : 8th
(Excluding public companies, based on total assets)
No. of employees : 25,236 (Average 16.3 years of continuous service)
No. of dry docks : 10 (Shipbuilding), 1 (Offshore & Engineering)
Business Division : Shipbuilding, Offshore & Engineering, Industrial Plant
&Engineering,Engine& Machinery, Electro Electric Systems, Construction Equipment,
Green Energy,Refinery, Financial Services

Hyundai Heavy Industries World Record

2012 :-Records 100 million Gross Tonnage in Ships

2011 :- Lifted Worlds Largest Offshore Platform
2010 :- Built the Worlds Largest FPSO
2010 :- Achieved 100 million bhp production in 2-stroke marine engines
2007 :- Built the Worlds Largest LNG Carrier
2007 :-Produced the Worlds Most Powerful Ship Engine108,920 bhp Marine engine
(8,600 TEU containership)

2006 :- Produced the Worlds Largest Propeller107.6 tonnes, 6-blade propeller

1992 :- Set Guinness World Record for Most Visitors to a Company10 million visitors as
of June. 1992

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 1989 :- Produced the Worlds Largest One-Unit Jacket40,000 tonnes offshore jacket for
Exxon (118m x 91m x 375m
1986:- Built Worlds Largest Cargo Ship365,000 DWT Bulk Carrier

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Shipbuilding
The worlds No.1
shipbuilding
Hyundai Shipbuilding Division, the world's number
one shipbuilder, leads the global shipbuilding
industry with a 15% share of the market. The
Hyundai shipyard stretches over four kilometers
along the coast of Mipo Bay in Ulsan, Korea. The Shipbuilding Division is capable of building
all types of ships to meet various demands from its clients. It has ten large-scale drydocks with
nine huge 'Goliath Cranes'. Since the shipyard's groundbreaking in 1972, HHI's Shipbuilding
Division has garnered many awards and set many records within the shipbuilding industry.

The Division reached the 10 million DWT production mark in 1984, and reached the milestone
of 20 million DWT in 1988, 30 million DWT in 1991, 40 million DWT in 1994, 50 million
DWT in 1997, and 100 million DWT in 2005. The Division has delivered more than 1,840 ships
to 282 shipowners in 48 countries since 1972.

HHI's Special & Naval Shipbuilding Division, as a licensed National Defense Industrial
Shipbuilder and engineering consultant for the Korea's navy, has the technology to design and
build modern, reliable submarines, naval ships and auxiliary service vessels of various proven
and advanced hull forms.

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Offshore & Engineering

Leading the Global
Offshore Industry
Offshore & Engineering Division of Hyundai
Heavy Industries (HHI) is located 5km away
from
the main shipyard of HHI and operates the
world's largest offshore yard covering 292
acres. HHI's involvement in offshore structures began with a Saudi Arabian order for 89 jackets
and deck structures for the Open Sea Tanker Terminal for the Jubail Industrial Harbor Projects
in 1976.
Since 1991, Offshore & Engineering Division has become a world leading EPIC contractor
providing integrated services such as Engineering, Procurement, Construction, Transportation,
Installation, Offshore Hook-up and Commissioning, and Project Management. Offshore &
Engineering Division has successfully completed more than 170 projects including over 100
EPIC projects in turn-key basis and has been recognized as one of the most experienced and
advanced offshore yards in the world. The range of products and services covers FPSOs,
FLNGs, FPUs, semisubmersibles, jack-ups, TLPs, fixed platforms, subsea pipelines, and landbased LNG and processing modules.
Offshore & Engineering Division combines onshore process plant expertise with offshore
module fabrication experience to create high-value added service. The division will also
continue to develop state-of-the-art technology and provide high quality services for the oil and
gas industry. Offshore & Engineering Division has a dry dock with a capacity of 1 million ton
equipped with extra-large gantry cranes, both capable of lifting 1,600 tons in its offshore yard.
The new heavy lift vessel, HD 10000 with the lifting capacity of 10,000 tons, allows HHI to
build bigger blocks in the construction stage and helps HHI accomplish its goals of providing
clients with a comprehensive and cost-effective solution that meets their needs

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Industrial Plant & Engineering

Total Energy Solution Provider

The Industrial Plant & Engineering Division has 40 years of experience in industrial
plant projects. It provides sophisticated engineering capabilities for power plants
and carries out, on a turnkey basis, all phases of project implementation including
engineering, procurement, fabrication, construction, commissioning, and training.
The division's core business activities are EPC of thermal power plants, cogeneration power plants, combined-cycle power plants, desalination plant, and oil &
gas production facilities, gas processing plants, LNG liquefaction, refineries,
petrochemical plants as well as the fabrication and supply of main equipment for
nuclear power plants

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Engine & Machinery

World's largest builder of marine engines

The Engine & Machinery Division is the world's largest marine diesel engine builder with
approximately 35% global market share. The division reached the production milestone of 150
million bhp (brake horsepower) in 2-stroke engines in 2015. The division is also a leading
manufacturer of propellers, cargo oil pumps, ballast water treatment systems, and side thrusters.
The division reached a milestone of 9,800 Hyundai HiMSEN diesel and gas engines. This is a
reflection of remarkable growth in the 4-stroke engine market and confirms Hyundai Heavys
place as a leader in the 4-stroke engine market as well.
Sale of power plants including Packaged Power Stations (PPS) has increased dramatically in
markets including Cuba, Brazil, the Middle East, Africa, Europe, and many Asian countries.
Sales of industrial pumps and robot systems are also increasing rapidly. These products have
become strategic items in the division's plan for long term growth.
In terms of innovative and cutting-edge technology, 15 products; 2-stroke marine engine, 4stroke marine engine, Crankshaft, Propeller, Marine Propulsion Shafts, Cylinder Liner, Cylinder
Frame, Turbocharger, Engine Power Plants, Packaged Power Stations, Cargo Oil Pumps, Side
Thruster, Industrial Robots, and LCD handling Robots have been selected as World-Class
Products by the Korean government.

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Electro Electric Systems

Hyundai, your best partner in the power industry

Hyundai Heavy Industries has earned a worldwide reputation as the best
business partner in the power industry by manufacturing and supplying the
highest quality electric equipment, including Transformers up to 800 kV, GIS
up to 800 kV, Low & Medium Voltage Switchgear, Circuit Breakers, Motors,
Generators, Power Electronics, and Integrated Control & Monitoring System.
Hyundai, as a leading global enterprise, has taken the initiative in
developing advanced and environmentally friendly Smartgrid products to
help create a better future for everyone.

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Green Energy
Create a Green Future with
Us
Hyundai Heavy Industries Green Energy Division
continues the Solar Energy Business, one of the
most prospective energy sources, with a solar
cell/module production capacity of 600MW per
year.
As a Korean producer, we are a pioneer to the European solar market and have earned great
reputation from the American and Asian markets such as the US and Japan. Especially, we
successfully completed a 142MW module supply project in the US, which is one of the biggest
projects we had executed.
Since Hyundai Solar Energy established Eumseong R&D Center in Korea in 2012, it has
achieved great results by constantly improving its R&D performance and launching highquality premium modules that meet our customers expectations.
As a result, Bloomberg New Energy Finance selected us as a Tier- Solar Module
Corporation in 2014, and we have held the title until now. We were also appointed as
Authorized Testing Lab of Solar Module respectively in June and November 2014 from
Underwriters Laboratories, which is the most prominent authorized safety standard institution in
the US and VerbandDeutsherElektro-technikere.v, the most accredited safety test and
authorization institution in the world.
Besides, we changed our mono-crystalline production lines to high-efficiency PERL (Passivated
Emitter, Rear Locally diffused) type lines in 2015. We expect to produce an additional 200MW
per year after 2016 when the migration is completed.
| 19

We will continue to strengthen the world competitiveness by expanding our business field based
on accumulated technical advantages and confidence.

Construction Equipment

The best earth movers

The Construction Equipment Division is widely recognized as an industry leader for its use of
advanced ergonomic engineering and technology.
Backed by highly advanced factory automation, a zero-tolerance quality control inspection
system, and innovative engineering, the division offers a wide range of construction equipment
to satisfy our customers' needs.
The division started production in 1985, and now manufactures construction equipment
including hydraulic excavators, wheel loaders, backhoe loaders, skid steer loaders as well as
industrial vehicles.
The division markets and supports its products through 500 local distributors in 140 countries.
The division also maintains nine global operation centers in the
United States
Europe
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 India
Indonesia
Brazil
China (Jiangsu, Shandong, Beijing).

COMPANY PROFILE

OVERVIEW
The Construction Equipment Division is
widely recognized as an industry leader for
its use of advanced ergonomic engineering
and technology.
Backed by highly advanced factory
automation, a zero-tolerance quality
control inspection system, and innovative
engineering, the division offers a wide
range of construction equipment to satisfy
our customers' needs.
Construction equipment generally refers to the relatively heavy machines/heavy-duty vehicles
that are specially designed for executing construction (or demolition) tasks, mainly earthwork
operations.
An efficient, accurate, easy, and cost-effective method for the construction of complex and
high-quality infrastructure is possible only with the help of construction equipment.
Indias earth moving and construction equipment industry has enjoyed strong growth over the
last seven years as a result of rapid economicdevelopment in the country.
Construction equipment (CE) can be classified into four groups Earth moving, Road
Construction, Concrete and Material Handling Equipment. Earth moving equipment the largest
group, followed by concrete equipment and material handling equipment.
| 21

The division started production in 1985, and now manufactures construction equipment
including hydraulic excavators, wheel loaders, backhoe loaders, skid steer loaders as well as
industrial vehicles.
The division markets and supports its products through 500 local distributors in 140 countries.
The division also maintains nine global operation centers in the United States, Europe, India,
Indonesia, Brazil and China (Jiangsu, Shandong, Beijing).

MARKET OVERVIEW
To give a snapshot, the earth moving and construction equipment is one of the most important
sectors which forms around 7% - 8% of national gross domestic product (GDP). It is one of the
largest contributors to economic activity, following the agriculture sector in India. Hence it acts
a key driver for various infrastructure development and to create growth opportunities to
various other industries in the economy.
Thus the construction equipment industry by its tremendous growth over years paves way for
valuable FDI inflows and attracted various international players. It is the sector which gives
either direct or indirect employment to more than 30 million people in the country and hence
its highly labor-intensive. Among the total infrastructural investment, around 60% accounts for
construction equipment.
During the last two decades, we could notice that the earth moving and construction equipment
industry has made enormous progress and grown both in size and diversity.

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SWOT ANALYSIS
SWOT analysis refers to the detailed study of the company. The SWOT
analysis is done in order to find out the companys STRENGTH, WEAKNESS,
OPPORTUNITY& THREATS.
This helps the company to know their strength , weakness, opportunities and threats
regarding the overall factors of the company. It helps the company to increase their scope by
improving the competitiveness in the market and also helps to take precaution and take vital
decisions taking into consideration the weakness and the threats.
On the other hand strength the strength is the backbone of the company and hence the
company should keep into mind in maintaining their strengths and also turning the opportunities
into their strengths.

STRENGTHS
The strengths of the company is the deliverance of quality products to the customers. The
kind of products the company delivers gives the company a competitive advantage. The
efficiency and the working life of the machine is well enough to satisfy the customers. Also the
less breakdown issues of the machines and parts sold is less. Therefore the companys strengths
are the deliverance of quality product and the trust which the customers have about the product.

WEAKNESS
The weakness of the company may be its high price. Ascompared to the competitors the
company has priced their product much more than their competitors. Therefore the consumers
who are not aware about the product life and quality will find it costly when he will compare it
with the competitors price. This can lead to loss of sales.

OPPORTUNITY
The Construction industry of India is an important indicator of the development as it creates
investment opportunities across various related sectors. The construction industry has
contributed an estimated 6708 billion to the national GDP in 2011-12 (a share of around 9%).
[1] The industry is fragmented, with a handful of major companies involved in the construction
activities across all segments; medium-sized companies specializing in niche activities; and
small and medium contractors who work on the subcontractor basis and carry out the work in
the field. In 2011, there were slightly over 500 construction equipment manufacturing
companies in all of India.
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[2] The sector is labor-intensive and, including indirect jobs, provides employment to more than
35 million people.

THREATS
The only threat as of now the company is having is the competitors. The competitors are the
major threat for the company as discussed in the weakness when it comes to price the
competitors are offering similar product at a lower price and also some other companies are
giving a high efficiency at a lower price.
The major competitors in the market are :
The worldwide technology leaders in the construction equipment sector are:
1.
2.
3.
4.
5.
6.

Komatsu
Caterpillar
Hitachi
Volvo
JCB
Kobelco

And almost all the technology leaders have presence in India either as joint ventures, or have set
up their own manufacturing facilities, or marketing companies

| 24

GENUINE PARTS

Genuine product Label

Genuine Product Package

Genuine product package indicates that the
| 25

Use parts with Hyundai Heavy

Industries label

The label indicates it is a genuine

Hyundai product and guarantees

the best service and warranty.

parts are safely managed. Hyundai genuine

product package is carefully designed to avoid leaning
or damage through various types
of packaging customized for individual parts.

MARKET ATTRACTIVENESS
The overall growth in the construction equipment industry in India is correlated to the
overall level of infrastructure development as well as growth in construction activity. Increased
urge to develop infrastructure is attracting the major global players towards India.
Great news is the Planning Commission had projected a USD 1 trillion investment in
infrastructure for the 2012-17 period with 40% of funds to arrive from the private sector.
Increased construction activities create favourable conditions for foreign direct
investment in the equipment sector. For attracting such investments, the government has
eased certain FDI norms related to infrastructure development. If everything happens inline, and industrys full potential is realized, then there is no doubt that by 2020, the
infrastructure industry would be a $16-$21 billion industry.
India is a country which offers greatest potential as an OEM hub due to its lower costs
and the availability of skilled labour. By this year around 10 equipment manufacturers are
expected to establish bases in India.
Moreover It is amazing that the Government of India in the Union Budget 2014-15, has
announced a project to develop One Hundred Smart Cities as satellite towns of larger
cities by modernizing the existing mid-sized cities in the country. INR 70.6 Billion has
been allocated in the current fiscal year for the same.
It is really a positive outcome that the government is working on many ambitious projects
undertaking the development of infrastructure and roads in India. The Union finance
minister in his budget speech proposed industrial corridors and 20 new industrial clusters.
These worthy projects will definitely bring in a greater demand for construction
equipment and thereby shows the road ahead for construction equipment industry.
Infrastructure investment remains as key and vital strategy for tremendous
economicgrowth. Current Union Budget 2015 also has paved way for the same; and in
the Budget the Total allocation for infrastructure has been increased by 1.5 times to INR
2.8 trillion (roads, railways and urban infrastructure are to be the biggest beneficiaries).

| 26

 As per world population statistics, Indias population grew by 17.7%, from 2000 to 2011,
and by 2020 it is expected to reach 1.4 billion. The rising population and urbanization
trendslikely to enhance the demand for wide range of residential construction. In India
Present levels of urban infrastructure are not sufficient enough to meet the demands of
the existing urban population. Even the Government of India is in the process of
launching a new urban development mission. This will help develop 500 cities, which
include cities with a population of more than 100,000 and some cities of religious and
tourist importance.
Growth in population will increase the demand for residential and commercial real estate
projects; thereby proving the opportunity for construction equipment market. Real estate
industry in India is directly related to the demand for concrete and building construction
equipment
India has been top producers of coal and iron, and there is huge increase in mining

operations. These mining operations thus being the root cause for the notable demand in
mining equipments.

INDUSTRY CHALLENGES
Issues of land acquisition and also there is scarcity of land for various infrastructure
developments.
Various project bottlenecks like delays in project approval or other Regulatory issues and
environmental concerns puts some barriers in construction equipment sale.
Timely availability of raw materials.
Delays related to forest and environment clearance have an impact on infrastructure
projects
Deviations in projected cash flow from the projects
Financing options are limited, and payment terms for first-time users are often
unfavorable.
Only few government incentives to develop skilled workforce. Hence to rule out the issue
and upgrade the skills of the workers, the major construction equipment companies, has
to establish costly training centers.
Need for pro-development policies from the government to bring about rapid execution
of planned projects without any delays.
| 27

COMPANYS 3 S SERVICE

The company believes in providing world class

qualities. The three pillars of providing world class quality to the
customers are :
1. Speedy Service
2. Satisfied Service
3. Superior Service
This particular strategy of the company gives a
competitive edge to the customers and also a sense of
reliability and trust on the company for providing the world class quality to their
customers,

PARTS SELLING PROCESS

The company sells various parts to the dealers in domestic market as
well as international market. The company has around 26000+ parts which are used for the
assembling of machinery. The parts vary in size i.e from a hydraulic pumps which are big in
size to the nuts and bolts which are small in size are sold to the dealers in order to assemble the
machines. The process followed by the company is shown in the diagram below :

| 28

The price of the parts differ from market to market. If the company is
selling the parts to domestic dealer then the price is different and if the company is exporting
the parts to other countries (currently Nepal, Sri Lanka and Bangladesh) i.e selling the parts
internationally then the price differs.

HYUNDAIs QUALITY CHECK AND QUALITY SERVICE

| 29

The company believes in deliverance of quality products which will win their customers trust
on them. Quality being the pillar of strength for the company they focus more in improvising
the quality in order to increase the efficiency i.e the working life expactancy, fuel efficient, built
up resistance power, etc. this will help the company in gaining new customers i.e transforming
the consumers into customers as well as the retention of the customer. The steps involved in the
Quality are shown in the figure above.

RESEARCH
PARTS OPERATION SURVEY

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The survey which is titled as Parts and Warehouse Operation Survey was
conducted between 5th of June to 20th of June.

The survey was conducted Zone wise for the Parts Manager as well as the Dealers,
the zones being :

1. North
2. South
3. East &
4. West

In all 26 Parts Managers were involved in the survey who responded to the
questions and have helped the company to know the areas of improvement as well
as the parameters in which the company does well.

PURPOSE OF THE SURVEY

The purpose of the survey is to check the quality of service provided by the
company to the Dealers. It will also help the company to know the key areas in which
the dealers are facing problem as well as the level of criticality . Some other points are
mentioned below :-

Identifying the problems that occur for customers/dealers with the companys
products or service.

Assess the performance of its customer-interface (warehouse service, logistics

service, after sales service, etc.) and staff (salespeople, after service assistance,
etc.).

Improve its processes and standards for delivery.

Understand customers needs so the company can help them have a better overall
experience

| 31

| 32

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DATA ANALYSIS

1)Timely Availability of Parts

The timely availability of parts refers to the frequency of availability or spare
parts and the satisfaction of the dealer and the parts managers regarding it.
They may face wrong supply or short supply.

14
12
10
8
6
4
2
0

Below Avg
Above Avg
Average

INTERPRETATION
From the above graph following interpretation can be made :
-

| 33

Many respondents have rated the availability of spare parts above average.
While the remaining have rated it as below average and face either short supply
or wrong supply from the company.

2) Quality of Parts Packaging

The Quality of Parts packaging refers to the satisfaction of the dealers about the quality of the
packaging. This is to test if any Packaging Discrepancy takes place.

12
10
8
6
4
2
0

Below Avg

Above Avg

Average

INTERPRETATION
From the above graph following interpretation can be made :
-Many of the respondents find the quality of packaging above average.
-Very few respondents find the quality average.
-On the other hand many of them find

| 34

3)

Price of Hyundai Lubricants

The respondents were also asked about the price of the companys lubricants
if they are high, low or moderate.

18
16
14
12
10
8
6
4
2
0

Below Avg

Above Avg

Average

INTERPRETATION
From the above graph following interpretation can be made :
-Maximum number of respondents have given good reviews about the price
of the lubricants.
-Only a few of them find the price dissatisfying i.e find the price high/very
high compared to other
Other brands as well as the local market.

| 35

4)

Warehouse Response

The Warehouse response refers to if the warehouse staff is able to solve the
queries of the parts managers and if they have proper knowledge about the
spare parts, their price, the availability, technical know how, etc.

12
10
8
6
4
2
0

Below Avg

Above Avg

Average

INTERPRETATION
From the above graph we can interpret that :
-Half of the respondents have rated the warehouse response above average and
half of them have rated it to be below average.
-Only one respondent finds it to be average.

| 36

5)
ics Service

Logist

The logistics service refers to the transportation service and the process of
dispatching the parts from the company and delivering it to the Dealer.

10
9
8
7
6
5
4
3
2
1
0

Below Avg

Above Avg

Average

INTERPRETATION
From the above graph following interpretation can be done :
-Maximum people have rated the logistics service above average.
-After it, many people have rated it to be average.
-Whlie few of them have rated it to be below average.

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6)

PRM System

The PRM system refers to the companys internal database and software
which can be accessed only by the company and the dealers and parts
managers. It provides with all the information of the warehouse of the
company like stock, price of the parts, dispatch details, etc.

18
16
14
12
10
8
6
4
2
0

Below Avg

Above Avg

Average

INTERPRETATION
From the above graph following interpretation can be done regarding the
PRM system :
-Maximum respondents find the PRM system above average and is very
helpful to them.
-Few of them find it below average because no updates are available or
may be due to slow loading of the system.
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7)
Disb
ursement Process of Parts Sales Commission
The disbursement process of Parts Sales Commission refers to the commission
given to the dealers on achieving the target or for increasing the sale.

7
6
5
4
3
2
1
0

Below Avg

Above Avg

Average

INTERPRETATION
From the above graph we can interpret the following points :
-Majority have rated the disbursement of parts sales commission above
average i.e they receive the commission on time and are satisfied with
the service.
-Many people have rated the disbursement process as average.
-On the other hand few have rated it below average because either
they do not receive the parts sales commission on time or they are not
aware about it.
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8)
Promotional Schemes

Parts

The company offers the dealers with incentives and schemes on being a
loyal customer of the company as well as constantly helping the company in
increasing the sale of the lubricants and spare parts. For example the
company takes such dealers to Korea to visit the Parent company i.e Hyundai
Heavy Industries which is known as the Foreign Travel Scheme

14
12
10
8
6
4
2
0

Below Avg

Above Avg

Average

INTERPRETATION
From the above graph we can interpret that :
-Majority of them find the Parts Promotional Scheme good and have rated it
above average.
-On the other hand some of them have rated it below average may be
because either it is difficult to achieve or they are not aware about the
schemes.

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| 42

LIMITATIONS

The data collected was limited to the Parts Managers only.

Making the Parts Manager understand the question was a big issue.

Lack of cooperation of the people was also a big limitation while conducting the study.

Some of the respondents may be biased in giving responses.

Transcribing the responses into a data form was difficult.

Time was also a constraint.

The parts mangers responses cannot present the population.

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CONCLUSION AND FINDINGS

Based on the research and the interpretation done, following are the findings and the conclusions which can be
made about the study.

Based on the study done, it is found that Hyundai parts are comparatively costly.

The lubricants price is also high.

The consignments sent by road should have a better quality.

Air consignments are comparatively good.

Warehouse peple are not aware about the new parts updates.

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RECOMMENDATIONS

, the company needs to reduce the lubricants price.

Also the company needs to launch the promotional activities region wise.

Parts managers found the PRM system very good but the company should include the billing too.

The company needs to make fast delivery of MDO.

Also it needs to take care of the road consignments to prevent transit damage.

The company should keep enough stock of parts to avoid short supply.

According to the study, the company needs to give information about the sales commission to the
dealers.

BIBLIOGRAPHY
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1. http://www.i-cema.in/
2. https://www.atkearney.com/
3. http://www.ibef.org/
4. https://www.thebig5constructindia.com/media/257069/Construction-MarketReport.pdf
5. http://nbmcw.com/reports/equipment-machinery/23335-constructionequipment-demand-forecast-2014.html
6. http://www.slideshare.net/Ipsosbc/indiaconstructionequipment

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APPENDIX

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QUESTIONNAIRE
PARTS AND WAREHOUSE OPERATION SURVEY

QUESTIONS

Q.No.

Q1

Q2

Q3

Q4

Q5

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Kindly rate the following on a likert scale of 1 to 10. 1 being fully dissatisfied and 10 being fully
satisfied.

Timely availability of parts.

Are you satisfied with the Quality of parts packaging. Please rate.

Rate your satisfaction level for the Lubes pricing.

Do you get proper response from our warehouse regarding order execution,dispatch,etc.

Please rate the service provided by the transporter.

Q6

How much would you rate the following transport service providers ?
1
2
3

Q7

How does the PRM system supportyou or help in your planning?

Q8

Please rate the timely disbursement of the parts sales commision

Q9

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Does Hyundai launch adequate promotional schemes?

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