kiran's project

8/11/2019 Kiran's Project

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INTRODUCTION

Introduction to Finance:

"Finance" is a broad term that describes two related activities: the study of how money is

managed and the actual process of acquiring needed funds. Because individuals,

businesses and government entities all need funding to operate, the field is often separated

into three sub-categories: personal finance, corporate finance and public finance.

All three categories are concerned with activities such as pursuing sound investments,

obtaining low-cost credit, allocating funds for liabilities, and banking. Yet each has itsown specific considerations. For example, individuals need to provision for retirement

expenses, which means investing enough money during their working years and ensuring

that their asset allocation fits their long-term plans. A large company, on the other hand,

may have to decide whether to raise additional funds through a bond issue or stock

offering. Investment banks may advise the firm on such considerations and help them

market the securities.

As for public finance, in addition to managing money for its day-to-day operations, a

government body also has larger social responsibilities. Its goals include attaining an

equitable distribution of income for its citizens and enacting policies that lead to a stable

economy.

Definition:

The science that describes the management, creation and study of money, banking, credit,

investments, assets and liabilities. Finance consists of financial systems, which includethe public, private and government spaces, and the study of finance and financial

instruments, which can relate to countless assets and liabilities. Some prefer to divide

finance into three distinct categories: public finance, corporate finance and personal

finance. All three of which would contain many sub-categories.


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The Inventory Concept

The dictionary meaning of the word inventory is Stock of goods. The term

Inventory refers to the commodities supplied to an undertaking for the purpose of

consumption in the process of manufacture or of rendering service or for transformationinto products.

To the finance executive, Inventory can be taken as the value of raw materials,

consumables, spares, work in progress and finished goods in which the companys

working capital funds have been invested.

Classification of InventoriesThe Inventories in an Industrial concern is generally classified as following:

Raw material Inventory - This is used in manufacturing. When the demand

arises, they are drawn from stores and processed or use value is added during the

process and finally finished product comes out.

Semi finished goods -

When the material being processed, it may have to wait

between two processes, such material are known as semi finished goods or semi

finished material or Work in process inventory.

Components -The parts used in assembly of product, are known as components.

When these components are purchased from outside, it is known as bought out

components or bought out material.

Spare parts Inventory - When manufacturing or servicing facility breakdown, it

is to be repaired. In such case, the defective or worn-out parts of the machine are to

be replaced by new one. These new parts of the machine are known as spares or

spare parts.


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Obsolete Inventory - When any facility becomes unserviceable, and it is to be

replaced by a new one, after replacing, the old machine/facility is to disposed.

Such machines, which have become useless, are termed as obsolete inventory.

Waste, Scrap and rejects -This type of inventory occurs in manufacturing firms

or in service organizations. While processing material, chips are produced and it is

of no use for the organization and it is to be disposed. Similarly, defective

components, which cannot be reprocessed (rejects) and materials which cannot be

used in any way in the organization (waste), all these are to be disposed. They may

not be having any use value for the organization, but they may be reprocessed by

some other organizations to produce a useful product.

Motives for holding Inventories

Economists have established three motives for holding inventories.

1. Transaction motive.

2. Precautionary motive.

3. Speculative motive.

Transaction motive Firms may require holding certain amount of finished products

perpetually in stock for display or demonstration purpose. They may also hold inventories

to meet a sudden demand, thus reducing the delivery tags.

Precautionary motiveFirms may hold inventories for fear of stock outs and losing its

goodwill. Some of the precautionary motives give rise to safety stock to deal with

uncertainty in supply and demand.

Speculative motive A firm may also hold both raw materials and finished products

when it expects a price in future, thereby realizing a stock profit. Inventories held for

speculative motive are termed as profit-making inventory.

Of the three motives, precautionary motive requires much attention. Besides

accumulation of inventory due to the three motives mentioned above, inventories also get

accumulated because of inefficient management of working capital. This type of

inventory is called, flabby inventory.


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In addition, there may be a contractual reasonfor holding some inventories.

Contractual RequirementsOccasionally it may be necessary to carry a certain level of

inventory to meet a contractual agreement. Some manufacturers require dealers to

maintain a specified level of inventory in order to be the sole representative in a particular

territory.

Inventory Management

Inventories represent a substantial amount of firms current assets. Proper

management of Inventory is necessary so that this investment does not become too large,

as it would result in blocking capital which could be used in productive aspect in

somewhere else.

Inventory Management covers efficient management of inventories in all its

aspects including Inventory planning and programming, Purchasing, Inventory Control,

receiving, ware Housing and Store keeping, Inventories handling and Disposal of scrap.

In this context of Inventory Management the firm is faced with the problem of

meeting two conflicting needs.

1. To maintain a large size of inventory for efficient and smooth production and

sales operations.

2. To maintain a minimum investment in inventories to maximize profitability.

The aim of Inventory management, thus, is to avoid excessive and inadequate

levels of inventories and to maintain sufficient inventory for the smooth production and

sales operations.


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An effective inventory managementshould

1. Ensure continuous supply of materials to facilitate uninterrupted production.

2. Maintain sufficient stocks of raw materials in periods of short supply and

anticipate price changes.

3. Maintain sufficient finished goods inventory for smooth sales operations, and

efficient customer services.

4. Minimize the earnings cost and time.

5. Control investment in inventories and keep it at an optimum level.


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OBJECTIVES OF INVENTORY MANAGEMENT

The objectives of the inventory management are discussed under two heads:

Operating objectives.

Financial objectives.

OPERATING OBJECTIVES

The Operating objectives of Inventory management is further divided as follows

Availability of materials

The first and the foremost of inventory management is make all types of

materials available at all times they needed by the production departments. So that the

production may not be held up for want of materials. It is therefore advisable to

maintain the minimum quantity of all types of materials to move on production

schedule.

Minimizing the wastage

Inventory management has to minimize the wastage at all levels that is during its

storage in the god owns or at work in the factory. Normal wastage, in other words

uncontrollable wastage, should only be permitted. Any abnormal but controllable wastage

should strictly be controlled. Wastage of materials by leakage, theft and spoilage due to

rust, dust or dirt should be avoided.

Promotion of manufacturing efficiency

The manufacturing efficiency of the enterprise increases if right types of rawmaterial are made available to production department at the right time. It reduces wastage

& cost of production & improves the moral of workers.

Better service to customers

In order to meet to the demand of the customers, it is the responsibility of

inventory management to produce sufficient stock of finished goods to execute the orders

received from customers.


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Optimum level of inventories

Proper control of inventories helps management to procure materials in right time

in order to run the plant efficiently. Maintaining the optimum level of inventories keeping

in view the operational requirements avoids the out of stock danger.

FINANCIAL OBJECTIVES

The Operating objectives of Inventory management is further divided as follows

Economy in purchasing

Proper inventory management system brings certain advantages and economies in

purchasing the raw materials. Management makes every attempt to purchase raw

materials in bulk quantity and to take advantage of favorable market conditions.

Optimum investment and efficient use of capital

The primary objective of inventory management, from financial point of view, is

to have an optimum level of investment in inventories. Inventory management has to

setup minimum and maximum levels of inventories to avoid deficiency or surplus stocks.

Reasonable prices

Inventory management has to ensure the supply of raw materials at a reasonable

low price, but without sacrificing the quality. It helps to reduction of cost of production

and improvement in the quality of finished goods in order to maximize the profits of the

organization.

Minimizing the costs

Minimizing inventory costs such as handling, ordering and carrying costs etc is

one of the main objective of inventory management. It helps in reduction of inventory

costs in a way that it reduces the costs per unit of inventory and there by reduction of total

cost of production.


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Inventory Systems

For an effective inventory management, an efficient inventory system should be

maintained. Thus the importance of inventory systems cannot be neglected in the

Inventory Management. The three important types of inventory systems available are

Periodic Inventory System.

Perpetual Inventory System.

Just-In-Time Inventory System.

Periodic Inventory System

In this system the quantity and value of inventory is found out only at the end of

the accounting period after having a physical verification of the units in hand.

The cost of materials used or goods sold is obtained by adding the total of

inventory purchased during the period to the value of the inventory in hand in the

beginning of the period and subtracting the value of inventory at the end of the period.

In this system the inventory level is not monitored at all during the time interval

between the orders, so it has the advantage of little or no required record keeping. The

disadvantage is less control.

Perpetual Inventory system

It is a system of tracking and knowing the value of inventory and quantity of

merchandise on hand at any time by tracking sales, returns and receipts with informationsystems.

A positive feature of a perpetual system is that inventory level is continuously

monitored, so management always knows the inventory status. This is advantageous for

critical parts or raw materials and supplies. However, it can be costly.

The perpetual inventory system consists of:

1. Bin Cards.

2. Stores ledger.

3. Continuous Stock taking.


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Bin cards Bin cards are printed cards used for accounting the stock of material, in

stores. For every item of materials, separate bin cards are kept.

The details regarding the material such as the name of the material, the part

number, the date of receipt and issue, the reference number, the name of the supplier, the

quantity received and issued, the value of the material, the rate, the balance quantity, etc.

are recorded in the bin cards.

Stores ledgerLike bin cards, a stores ledger is maintained to record all the receipts and

issues in respect of materials with the difference that along with the quantities, the values

are entered in the receipt, issue and balance columns.

Continuous stock taking The perpetual inventory system is not complete without a

systematic procedure for physical verification of the stores. The bin cards and the stores

ledger record the balances, but their correctness can be verified by means of physical

verification only.

Just-In-Time Inventory System

Now-a-days organizations are becoming more and more interested in getting

potential gains from making smaller and more frequent purchase orders. In other words,

they are becoming interested in just-in-time purchasing system.

In Just-In-Time system the materials arrive exactly when they are needed in the

production process. Inventory remaining in warehouse collects dust and cost instead ofrevenue. Just-In-Time system avoids this cost.


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Costs for Holding Inventory

The three important costs considered in holding inventories are

Inventory Carrying Cost (or) Stock Holding Cost.

Procurement Cost or Setup Cost.

Shortage Cost or Stock-out Cost.

Inventory Carrying Costs or Stock Holding Costs

They arise on account of maintaining the stocks and the interest paid on the capital

tied up with the stocks. They vary directly with the size of the inventory as well as the

time the item is held in stock. Various components of the stockholding cost are:

Cost of Storage Space This consists of rent for the space occupied by the

inventory. Besides space expenses, this will also include heating, lighting and other

atmospheric control expenses.

Depreciation and deteriorationThey are especially important for fashion items

or items undergoing chemical changes during storage. Fragile items such as

crockery which are liable to damage, breakage, etc.

Pilferage Cost It depends upon the nature of the item. Valuable items may be

more tempting, while there is hardly any possibility of heavy casting or forging

being stolen.

Obsolescence Cost It depends upon the nature of the item in stock. Electronic

and computer components are likely to be fast outdated. Changes in design also led

to obsolescence.

Handling costThese include all costs associated with movement of stock, such

as cost of labour, overhead cranes, gantries and other machinery used for this

purpose.


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Procurement Cost or Setup Cost

They include the fixed and variable costs associated with placing of an order. In

case of purchase models it is known as ordering cost. In case of manufacturing model, it

is known setup cost.

To place an order certain paper work is to be done. The cost of this paper work is

taken as cost of ordering. In case of manufacturing, before starting production, the

machine is to be set up. Only on setting of machine, the material is loaded and the

production is started. The ordering cost is distributed over the items purchased in that

order. Similarly, the setup cost is distributed equally over the products manufactured in

that setup. This cost is also known as replenishment cost.

Shortage Cost or Stock-out Cost

These costs are associated with either a delay in meeting demands or the inability

to meet it at all. Therefore, shortage costs are usually interpreted in two ways. In case the

unfilled demand can be filled at a later stage (backlog case), these costs are proportional

to quantify that is short as well as the delay time. They represent loss of goodwill and cost

of idle equipment. In case the unfilled demand is lost (no backlog case), these costs

become proportional to only the quantity that is short. These results in cancelled orders,

lost sales, profit and even the business itself.


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TECHNIQUES OF INVENTORY MANAGEMENT

The following are the techniques of the inventory management

Economic order quantity.

ABC analysis.

VED classification.

HML Classification.

SDE Classification.

FSN Analysis.

SOS classification.

XYZ Analysis.

Golf classification.

MNG Analysis.

Economic order quantity

A firm should not place either too large or too small orders. On the basis of a

trade-off between benefits derived from the availability of inventory and the cost of

carrying that level of inventory, the appropriate or optimum level of the order to be placed

should be determined. The optimum level of inventory is popularly referred to as the

economic order quantity (EOQ). It is also known as economic lot size.

The economic order quantity may be defined as that level of inventory order that

minimizes the total cost associated with inventory management. i.e it refers to the level of

inventory at which the total cost of inventory comprising acquisition/ordering/set-up costs

and carrying cost is minimal.

EOQ = 2AO/C

A = Total annual requirement

O = Ordering cost per order

C = Convey in cost per unit


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ABC analysis

Usually a firm has to maintain several types of inventories. It is not desirable to

keep same degree of control on all the items. The firm should pay maximum attention to

those items whose value is highest. The firm should therefore classify inventories toidentify which items should receive the most effort in controlling. This classification is

done by the ABC analysis.

The ABC analysis technique is based is based on the assumption that a firm

should not exercise the same degree of control on all items of inventory. It should rather

keep a more rigorous control on items that are (i) the most costly, and/or (ii) the slowest-

turning, while items that are less expensive should be given less control effort.

On the basis of the cost involved, the various inventory items are categorized into

three classes:

i. A category.

ii. B category.

iii. C category.

Category A items -- More costly and valuable consumption items

are classified as A items. But the A category

items are very less in volume (generally 20%)

when compared to the total volume of

inventory.

Category B items -- The items having average consumption Value

items are classified as B items. But the A

category items are very avg in Volume

(generally 30%) when compared to the total

volume of inventory.

Category C items -- The items having less consumption Value items

are classified as C items. But the C category

items are very high in volume (generally 50%)

when compared to the total volume of

inventory.


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VED Classification

VED Vital, Essential and Desirable classification is applicable largely to spare

parts. Stocking of spare parts is based on strategies different from those of raw materials

because of there consumption pattern is different. Here the spare parts are classified in tothree categories.

Vital - The spares, the stock out of which even for a

Short time will stop the production.

Essential - The spares, the absence of which cannot be

Tolerated for more than a few hours or a day.

Desirable - The desirable spares are those spares which are

Needed but this absence for even a week or so will not stopthe production.

HML Classifications

The High, medium and Low (HML) classification follows the same procedure as

is adopted in ABC classification. Only difference is that in HML, the classification unit

value is the criterion and not the annual consumption value. The items of inventory

should be listed in the descending order of unit value and it is up to the management to fix

limits for three categories. For examples, the management may decide that all units with

unit value of Rs. 2000 and above will be H items, Rs. 1000 to 2000 M items and less

than Rs. 1000 L items.

The HML analysis is useful for keeping control over consumption at departmental

levels, for deciding the frequency of physical verification, and for controlling purchases.

SDE Classification

The SDE analysis is based upon the availability of items and is very useful in the

context of scarcity of supply. In this analysis, S refers to scarce items, generally

imported, and those which are in short supply. D refers to difficult items which are

available indigenously but are difficult items to procure. Items which have to come from

distant places or for which reliable suppliers are difficult to come by fall into D

category. Erefers to items which are easy to acquire and which are available in the local

markets.


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The SDE classification, based on problems faced in procurement, is vital to the

lead time analysis and in deciding on purchasing strategies.

FSN Analysis

FSN stands for fast moving slow moving and non-moving. Here, classification is

based on the pattern of issues from stores and is useful in controlling obsolescence.

To carry out an FSN analysis, the date of receipt or the last date of issue,

whichever is later, is taken to determine the number of months, which have lapsed since

the last transaction. The items are usually grouped in periods of 12 months.

FSN analysis is helpful in identifying active items which need to be reviewed

regularly and surplus items which have to be examined further. Non-moving items may

be examined further and their disposal can be considered.

SOS Classification

Raw materials, especially agricultural inputs are generally classified by the

seasonal, off-seasonal systems since the prices during the season would generally be

lower.

The seasonal items which are available only for a limited period should be

procured and stocked for meeting the needs of the full year. The prices of the seasonal

items which are available throughout the year are generally less during the harvest season.

The quantity required of such items should, therefore, be determined after comparing the

cost savings on account of lower prices, if purchased during season, with the higher costof carrying inventories if purchased throughout the year.

A Buying and stocking strategy for seasonal items depend on a large number of

factors and more and more sophistication is taken place in this sphere and operational

techniques are used to obtain optimum results.


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XYZ Analysis

While the ABC analysis is based on the assumption on value, XYZ analysis is

based on the value of inventory undertaken during the closing of annual accounts. X

items are those having high value, Y items are those whose inventory values are mediumand Z items are those whose inventory values are low.

The percentages are similar to ABC analysis. This analysis helps find items with

heavy stock.

Golf Classification

The letter stands for Government, Ordinary, Local and Foreign. There are mainly

imported items which are channelized through the State Trading Corporation (STC)Minerals and Metals Trading Corporation, etc. Indian Drugs and Pharmaceutical Ltd

(IDPL), Mica trading corporation etc. These are special procedures of inventory control

which may not applicable to ordinary items as they require special procedures.

MNG Analysis

The grouping of inventory items in this analysis takes place as:

M- Moving itemsThe items which are consumed from time to time are normally

referred to as moving items.

N- Non moving itemsThese items which are not and consumed in last one year

are covered under this group.

G- Ghost items This group refers to such items which neither have been

received nor issued during the year. The balance of such items shown in stockregisters of the organization will be nil, both at the beginning and at the end of the

previous financial year.


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Advantages of Inventory Management

The advantages gained by the firm by managing the inventory effectively are:

Introduction of a proper inventory management system helps in keeping the

investment in the inventories as low as feasible.

Ensures availability of material by providing adequate protection against

uncertainties of supplies and consumption of materials.

Allows full advantage of economics of bulk purchases and transportation.

Leads to reduction in inventory levels.

Releases more of capital for other operations.

Adequate customer service.

Advantage of price discounts by bulk pricing.

Providing flexibility to allows change in production lines due to changes in

demands on any other reason.

Even out the workloads on the soaps in the face fluctuations demands.

Causes of poor Inventory Management

There are certain instances, which leads to poor inventory management. They are:

1. Over buying without regard to the forecast or proper estimate of demand to take

advantage of favorable market.

2. Over production or production of goods much before the customer requires them.

3. Over stocking may also result from the desire to provide better service to the

customers. Bulk production or purchase to cut down production costs also will

result in large inventories.

4. Cancellation of orders and minimum quantity stipulations by the suppliers may

also give rise to large inventories.


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Various stock levels in Inventory Management

The levels of inventory in any organization depend upon several factors including

social, political, economic, ethic, fiscal, governmental policies at the global and nationallevels, which determine the demand and supply parameters of an item. At the unit level,

cost, criticality, availability, service level, stock out, lead time, powers of delegation,

consumption pattern, etc. affect the levels.

The various stock levels fixed for effective management of inventories are -

Minimum level.

Maximum level.

Ordering or reordering level.

Danger level.

These levels serve as indices for initiating action on time so that the quantity of

each item of material, i.e. the inventory holding is controlled or managed. Stock levels are

not fixed on a permanent basis but are liable to revision in accordance with the changes in

the factors determining the levels.

Minimum level It indicates the lowest figure of inventory balance, which must be

maintained in hand at all times, so that there is no stoppage of production due to non-

availability of inventory.

The main considerations for the fixation of minimum level of inventory are as follows:

1. Information about maximum consumption and maximum delivery period in

respect of each item to determine its reorder level.

2. Average rate of consumption for each inventory item.

3. Average delivery period for each item. This period can be calculated by averaging

the maximum and minimum period.


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The formula used for its calculation is as follows:

Minimum level of Inventory = Reorder level(Average rate of

consumption * Average time of Inventory delivery).

Maximum LevelIt indicates the maximum figure of inventory quantity held in stock at

any time.

The important considerations which should govern the fixation of maximum level

for various inventory items are as follows:

1. The fixation of maximum level of an inventory item requires information about its

reorder level. The reorder level itself depends upon its maximum rate of

consumption and maximum delivery period. It in fact is the product of maximum

consumption of inventory item and its maximum delivery period.

2.

Knowledge about minimum consumption and minimum delivery period for eachinventory item should also be known.

3. The determination of maximum level also requires the figure of economic order

quantity.

4. Availability of funds, storage space, nature of items and their price per unit are

also important for the fixation of maximum level.

5. In the case of imported materials due to their irregular supply, the maximum level

should be high.


Maximum level of Inventory = Reorder level+ Reorder quantity

(Minimum consumption * Minimum reorder period)


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Reorder levelThis level lies between minimum and maximum levels in such a way

that before the material ordered is received into the stores, there is sufficient quantity on

hand to cover both normal and abnormal consumption situations. In other words, it is the

level at which fresh order should be placed for replenishment stock. The reorder level

must be sufficient to cover the maximum possible consumption of stock during lead time

(reorder period).

It is set after consideration of the following factors.

1. Rate of consumption.

2. Minimum level.

3. Lead time, i.e. delivery time.

4. Variation in lead time.


Reorder level = Maximum reorder period * Maximum Usage.

Danger levelIt is the level at which normal issues of the raw material inventory are

stopped and emergency issues are only made.

Danger level = Avg consumption * Lead time for emergency purchases


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Objectives of Inventory Valuation

The objectives of inventory valuation are discussed here below as follows

Determination of Income - The valuation of inventory is necessary fordetermining the true income earned by business during a period.

Determination of Financial position- The inventory at the end of period is to be

shown as a current asset in the balance sheet of the business. In case of the

inventory is not properly valued the balance sheet will not disclose the correct

financial position of the business.

Methods of Inventory ValuationSince Inventory is the single largest asset in the balance sheet of most

organizations, the valuation of inventory becomes of utmost importance and crucial to the

financial executives.

Methods of Valuation of Inventories

The different methods used for valuation of inventories may be enumerated as

follows

Methods based on Actual cost

First-in-First-out method.

Last-in-First-out method.

Highest-in-First-out method.

Specific identification price.

Base stock price.

Adjusted selling price.

Methods based on Average cost

Simple average price.

Weighted average price.


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Methods based on Actual cost

The methods of actual cost are as follows -

First-in-First-out MethodThe First-in-First-out Method of pricing materials is

based on the assumption that the materials which are purchases first are issuedfirst. The flow of cost of materials should also be in the same order.

Last-in-First-out MethodThis method is just reverse of FIFO. It operates on

the assumption that the latest received materials are issued first for production and

those received first issued last. The price of the last lot of materials received is

used for all the issues until all units from this lot have been issued after which the

price of the previous lot received becomes the issue price.

Highest-in-First-out method Under this method, the highest priced materials

are treated as being issued first. The closing inventory is kept at the lowest possible

price. It is undervalued in times of rising prices and thus secret reserves are

created.

Specific identification priceThe specific identification method may be used for

inventories of items that are not ordinarily inter-changeable, or for goods

manufactured for a specific purpose. This method is best suited for job order

industries which carry out individual jobs or contracts against specific orders.

Base stock price The base stock formula proceeds on the assumption that a

minimum quantity of inventory (base stock) must be held at all times in order to

carry on business. Inventories up to this quantity are stated at the cost at which the

cost at which the base stock was acquired.

Adjusted Selling price Under this method which is adopted by retailers,

inventory is estimated at selling price and to value it at cost, the estimated gross

profit is deducted there from. The alternative approach is to deduct current sales

from the total goods available for sale at retail price. This gives the value of

Inventory.


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Methods based on Average cost

The methods of average cost are as follows

Simple average priceSimple average price is the average of the prices withoutany regard to quantities. Simple average price is calculated by adding up different

prices and then dividing by the number of different prices.

Weighted average price method Weighted average price is calculated by

dividing the total cost of material in stock by the total quantity of material in hand.

Under this method, prices are averaged after weighting (i.e. multiplying) by their

quantities. The average price at any time is simply the balance value figure dividedby the balance units figure.

EXECUTIVE SUMMARY

Satisfaction is a persons feeling of pleasure or disappointment resulting

from a comparing perceived performance in relation to his or her

expectation. If the performance falls short of expectation, the consumer is

dissatisfied. If the performance matches the expectations, he consumer is

satisfied. If the performance exceeds expectation, the customer is highly

satisfied or delighted.

The study widely concentrates on the level of satisfaction amongst customers

for which I did Exploratory Research to check the satisfaction level amongst

the customers of Suzuki Access 125. This research was conducted in the

Ahmedabad city. This research was done during the months of April and

May. Hence the data displayed has been collected during the before

mentioned period.


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To meet the research objectives, following activities have been performed.

An extensive search of relevant literature from news articles, internet,

books. This step guided the development of the methods and

instruments for collecting data.

Designing the questionnaire.

Survey has been carried away by, one-on-one interviews. The Survey

included open-ended questions, dichotomous questions, and multiple-

choice question.

To know the image of product in the mind of consumer.

To compare the level of satisfaction before purchasing and after

purchasing the Scooter.

To find out where people want to see the promotion schemes

To find out suitable location preferred by consumer

To know the most popular media for advertisement

To check the loyalty of the consumer towards the Suzuki brand

To know the most motivating factor for purchasing the bike

To know the preferable price from the customer

During this research it was found that Suzukis launched Access 125

has increased its market share by attracting new customers and helped

to retain its old customers.

SMPIL, a company that is known for combining technology, quality and

performance in their two wheeler, had taken an initiative to introduce some

of their performance driven two wheeler in India this year. Suzuki has

reported a growth of 47.66% in sales in the month of December 09 at

14806 unitscompared to 9986units same month last year. This increase of

sales is attributed to the tremendous response from the new product GS150R

and ACCESS 125. Suzuki would have to constantly innovate and come up

with new products to maintain its dominance in the segment


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BIRTH OF AUTOMOBILES IN THE WORLD

The History of the automobile actually began about 4,000 years ago

when the first wheel was used for transportation in India. Several

Italians recorded designs for wind-driven vehicles. The first was

Guido da Vigevano in 1335 . It was a windmill-type drive to gears and

thus to wheels. Vaturio designed a similar vehicle that was also never

built. Later Leonardo da Vinci designed clockwork-driven tricycle

with tiller steering and a differential mechanism between the rear

wheels.

In the early 15th century, the Portuguese arrived in China and the

interaction of two cultures led to a variety of new technologies,

including the creation of a wheel that turned under its own power. By

the 1600s, small steam-powered engine models were developed, but it

was another century before a full-sized engine-powered vehicle was

created.


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A Catholic priest named Father Ferdinan Verbiest is credited to have

built a steam-powered vehicle for the Chinese Emperor Chien Lung in

about 1678. There is no information about the vehicle, only the event.

Since James Watt didnt invent the steam engine until 1705, we can

guess that this was possibly a model vehicle powered by a mechanism

like Heros steam engine-a-spinning wheel with jets on the periphery.

Although by the mid-15th

century the idea of a self-propelled vehicle

had been put into practice with the development of experimental

vehicles powered by means of springs, clockworks, and the wind,

Nicolas-Joseph Cugnot of France is considered to have built the first

true automobile in 1769. Designed by Cugnot and constructed by

M.Brezin, it is also the first vehicle to move under its own power for

which there is a record. Cugnots three -wheeled steam-powered

vehicle carried four persons and was meant to move artillery pieces. Ithad a top speed of a little more than 3.2 km/h (2 mph) and had to stop

every 20 minutes to build up a fresh steam.

Evans was the first American who obtained a patent for a self-

propelled carriage. He, in fact, attempted to create a two-in-one

combination of a steam wagon and a flat-bottomed boat, which didnt

receive any attention in those days. During the 1830s, the steamvehicle had made great advances. But stiff competition from railway

companies and crude legislations in Britain forced the poor steam

vehicle gradually out of use on roads.

Carl Benz and Gottlieb Daimler, both Germans, share the credit of

changing the transport habits of the world, for their efforts laid the

foundation of the great motor industry, as we know it today. First, Carl


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Benz invented the petrol engine in 1885 and a year later Daimler made

a car driven by motor of his own design and the rest is history.

Daimlers engine proved to be a great success mainly because of its

less weight that could deliver 1000rpm and needed only very small

and light vehicles to carry them.

France too had joined the motoring scenario by 1890 when two

Frenchmen Panhard and Levassor began producing vehicles powered

by Daimler engine, and Daimler himself, possessed by the automobile

spirit, went on adding new features to his engine. He built the first V-

Twin engine with a glowing platinum tube to explode the cylinder gas-

the very earliest form of sparking plug.

Charles Duryea built a motor carriage in America with petrol engine in

1892, followed by Elwood Haynes in 1894, thus paving the way for

motorcars in that country.

For many years after the introduction of automobiles, three kinds of

power sources were in common use: steam engines, gasoline or petrol

engines, and electric motors. In 1900, over 2,300 automobiles were

registered in New York, Boston, Massachusetts, and Chicago. Ofthese, 1,170 were steam cars, 800 were electric cars, and only 400

were gasoline cars.

In ten years from the invention of the petrol engine, the motorcar had

evolved itself into amazing designs and shapes. By 1898, there were

50 automobile-manufacturing companies in the United States, a

number that rose to 241 by 1908. In that year, Henry Ford


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revolutionized the manufacture of automobileswith his assembly-line

style of production and brought out the Model T, a car that was

inexpensive, versatile, and easy to maintain.

Herbert Austin and William Morris, two different carmakers,

introduced mass production methods of assembly in the UK, thus

paving the way for a revolution in the automobile industry. Austin

Seven was the worlds first practical four-seater baby car which

brought the pleasures of motoring to many thousands of people who

could not buy a larger, more expensive car. Even the bull -nose

Morris with front mounted engine became the well-loved model and

one of the most popular cars in the 1920s.

Automobile manufacturers in the 1930s and 1940s refined and

improved on the principles of Ford and other pioneers. Cars weregenerally large, and many were still extremely expensive and

luxurious; many of the most collectible cars date from this time. The

increased affluence of the United States after World War II led to the

development of large, petrol-consuming vehicles, while most

companies in Europe made smaller, more fuel-efficient cars.


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INDIAN TWO WHEELER HISTORY

India is the second largest manufacturer and producer of two-wheelers in the

world. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. The Indian two-wheeler

industry made a small beginning in the early 50s when Automobile

Products of India (API) started manufacturing scooters in the country.

Until 1958, API and Enfield were the sole producers.

In 1948, Bajaj Auto began trading in imported Vespa scooters and three-wheelers. Finally, in 1960, it set up a shop to manufacture them in technical

collaboration with Piaggio of Italy. The agreement expired in 1971. In the

initial stages, API dominated the scooter segment; Bajaj Auto later overtook

it. Although various government and private enterprises entered the fray for

scooters, the only new player that has lasted till today is LML.

Under the regulated regime, foreign companies were not allowed to operate

in India. It was a complete seller market with the waiting period for getting a

scooter from Bajaj Auto being as high as 12 years. The motorcycles segment

was no different, with only three manufacturers viz Enfield, Ideal Jawa and

Escorts. While Enfield bullet was a four-stroke bike, Jawa and the Rajdoot

were two-stroke bikes. Enfield 350cc bikes and Escorts 175cc bike initiallydominated the motorcycle segment.

The two-wheeler market was opened to foreign competition in the mid-80s.

And then market leaders - Escorts and Enfield - were caught unaware by the

onslaught of the 100cc bikes of the four Indo-Japanese joint ventures. With

the availability of fuel-efficient low power bikes, demand swelled, resulting


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in Hero Honda - then the only producer of four stroke bikes (100cc

category), gaining a top slot.

The first Japanese motorcycles were introduced in the early eighties. TVSSuzuki and Hero Honda brought in the first two-stroke and four-stroke

engine motorcycles respectively. These two players initially started with

assembly of CKD kits, and later on progressed to indigenous manufacturing.

In the 90s the major growth for motorcycle segment was brought in by

Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the last

five years. The industry had a smooth ride in the 50s, 60s and 70swhen the

Government prohibited new entries and strictly controlled capacity

expansion. The industry saw a sudden growth in the 80s.

It was in the year 1954 that the Indian government ordered for total number

of 800 motorcycles to man the Pakistani borders. In came the Bullets which

were initially launched in England as a 350cc bike and it was upgraded to

500cc a year or so later. These bikes have remained unaltered, barring some

cosmetic changes which have undergone over the years. Thus one can say

without much of a doubt that the 1955 Bullet was one of the initial hits of the

Indian two-wheeler industry and till today it continues to be a darling of the

motorcycle enthusiasts.

Enfield Bullet had a close competition with another sturdy bike named

Rajdoot; as the bike was strong enough to handle the rough Indian roads.

The company had roped in Indian Heman Dharmendra for the promotion of

the bike. With more than 1.6 million vehicles on the road the Rajdoot

motorcycle was one of the initial hits of the earlier years of two-wheeler

history in the country.


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When heavy motorcycles were the order of the day, a relatively lighter bike

had caught on the imagination of the Indian two wheeler user. Ind- Suzuki

bike launched by the then TVS Suzuki group was an instant hit; however the

bike could not sustain it's initial success due to the high import content in the

vehicle and less of localization.

In scooters Bajaj Chetak has been hugely responsible for adding momentum

to the transport system of the country, till today it remains one of the most

successful brands to have come out of the Bajaj stable. The scooter is named

after the horse of legendary Rana Pratap Singh. These sets of two wheels

have become a part of the Indian milieu and are often considered a

representative of the Indian middle class aspiration. Very few two-wheelers

have been able to emulate the success, which Bajaj Chetak has achieved over

the years.

Similarly LML Motors enjoyed a reasonable success with the launch of

LML Select which came with new age technology and improved

performance.

The industry witnessed a steady growth of 14% leading to a peak volume of

1.9mn vehicles in 1990.

In 1990, the entire automobile industry sawa drastic fallin demand. This

resulted in a decline of 15% in 1991 and 8% in 1992, resulting in a

production loss of 0.4mn vehicles. Barring Hero Honda, all the major

producers suffered from recession in FY93 and FY94. Hero Honda showed a

marginal decline in 1992.

The reasons for recession in the sector were the incessant rise in fuel prices,

high input costs and reduced purchasing power due to significant rise in


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general price level and credit crunch in consumer financing. Factors like

increased production in 1992, due to new entrants coupled with the recession

in the industry resulted in company either reporting losses or a fall in profits.

India is one of the very few countries manufacturing three-wheelers in the

world. It is the world's largest manufacturer and seller of three-wheelers.

Bajaj Auto commands a monopoly in the domestic market with a market

share of above 80%, the rest is shared by Bajaj Tempo, Greaves Ltd and

Scooters India. a variometric scooter helped in providing ease of use to the

scooter owners.

SEGMENTATION OF TWO WHEELER:A Two Wheeler Sector Sub-Segmenting in the three Segments. Motorcycle Scooter Mopeds

TREND IN 2W VOLUMES BY CATEGORY:


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TREND IN 2W SALES VOLUMES, DOMESTIC ANDEXPORTS:

Domestic Market Share for 2013-14

Passenger Vehicles 15.86

Commercial Vehicles 4.32

Three Wheelers 3.58

Two Wheelers 76.23


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GROWTH PROSPECTS AND KEY DRIVERS OF INDIANTWO WHEELER INDUSTRY:

The growth witnessed by the Indian two wheeler industry

indicates the growing demand for low cost personal

transportation solutions amongst the 300 million Indian middle

class consumers. Despite this spectacular growth rate, the two-

wheeler penetration (number of two wheelers per 1000

inhabitants) in India remains lower than other Asian countries.

This fact provides an opportunity for continued growth in the

market. India has the lowest Penetration of two wheelers as

compared to countries like Taiwan, Thailand, Malaysia,

Vietnam, Indonesia and China. In the present scenario, growth

in the two wheelers Industry will be driven by several factors

RISE IN INDIAS YOUNG WORKING POPULATION:

With the rising levels of per capita income of people, the Indian two wheeler

market offers a huge potential for Growth. This growth is relevant in the

light of the fact that 70 per cent of Indias population is below the age of 35

Years and 150 million people will be added to the working Population in the

next five years. The number of women in the urban work force is also

increasing; this will lead to the Growth of gearless scooters.


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RISE OF INDIAS RURAL ECONOMY AND GROWTH INMIDDLE INCOME HOUSEHOLDS:

The growth prospects of the Indian rural economy offer a significant

opportunity for the motorcycle industry in India. The penetration of

motorcycles amongst rural households with income levels greater than US$

2,200 per annum has already increased to over 50 per cent. The current target

Segment for two wheelers, i.e., households belonging to the Income category

of US$ 2,20012,000 is expected to grow at a CAGR of 10 per cent.

GREATER AFFORDABILITY OF VEHICLES:

The growth in two-wheeler sales in India has been driven by an increase in

affordability of these vehicles. An analysis of the price trends indicates that

prices have more or less stagnated in the past. This has been part of the

marketing strategy adopted by the manufacturers to gain volume, as well as

conscious efforts adopted to bring down costs. The operating expenses of

leading manufacturers have declined by around 15 per cent in the last five

years. With greater avenues of financing, the customers capacity to own a

two wheeler has improved.

RAPID PRODUCT INTRODUCTION AND SHORTER PRODUCT LIFE CYCLE:

The last five years have witnessed a sharp increase in new product launches

in the two-wheeler industry. It is estimated that close to 50 new productshave been launched by manufacturers during this period, filling up all price

points and targeted at various consumer segments.

INADEQUATE PUBLIC TRANSPORT SYSTEMS IN MOST URBAN AREAS:

The economic boom witnessed in the country and the increased migration to

urban areas have increased the traffic congestion in Indian cities and

worsened the existing infrastructure bottlenecks. Inadequate urban planning


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has meant that transport systems have not kept pace with the economic boom

and the growing urban population. This has increased the dependence on

personal modes of transport and the two wheelers market has benefited from

this infrastructure gap.

FACTORS AFFECTING THE MARKET:

Post 1991, the Indian two-wheeler industry comprising of motorcycles,

scooters and scooterettes opened up tremendously. The Indian motorcycle

industry has expanded at a 24% CAGR over the last five years, It Captured

almost 80% of the market primarily at the cost of the scooter and Moped

segment. The scooter segment though has witnessed a revival with the

launch of scooterettes aimed at young women and adolescents.

The two-wheeler market can be segmented into three categories on the basis

of priceEntry segment (


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With the introduction of Government policies such as reduction in excise

duty from 16% to 12% and allowing for 100% FDI Barriers to entry has

reduced. However, the investment required for setting up large distribution

channels and service stations can be a major entry barrier. Another

significant entry barrier is the brand building required. Thus, initially foreign

players set up Joint Ventures with indigenous companies. After establishing

their brand they have launched their own line of products. E.g. Honda with

Hero Group and Yamaha with Escorts.

RISING CUSTOMER EXPECTATIONS:

The growth witnessed by the Indian two wheeler industry has

attracted a number of new entrants to the market and it is

expected that the Indian industry will become more

competitive in the future. The excess of products introduced in

the past has also raised customer expectations with respect toreliability, styling, performance and economy.

Inflation is a big factor that may play a part in moving the

loyalties and aspirations of people away from the four to the

much cheaper and economical two-wheeler segment.

Moreover, the constantly increasing prices of oil and increasing

interest rates on finance are not helping the cause either.

Environmental Concerns are also quite big on the agenda these

days and do play a part in the preference of consumers

choices. The rising global temperatures along with daily

snippets in the national and international media about the

thinning of ozone and imminent environmental disaster have


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all contributed to the making of a present day environmentally

conscious consumer.

ENVIRONMENTAL AND SAFETY CONCERNS:

The increasing demand for two wheelers will need to be managed to address

issues relating to overcrowding of roads. Another problem is the insufficientinfrastructure for inspection to ensure adherence to emission norms. As the

industry grows, it is important to regulate the sale of used two wheelers in a

more organized manner for which a mechanism needs to be evolved.

Unregulated sale of two wheelers, especially in the rural areas, are likely to

create issues related to emissions and safety of vehicles.
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In 1974The RE5 is the first Japanese motorcycle with a rotary engine. It

cost a fortune to develop and, while not bad, its a commercial disaster. After

two years, the company abandons the project, and there are rumors the

tooling was dumped into the sea so that Suzuki managers would never have

to see it again. Most bikes produced around the middle 70s had enough

power but lacked a steady frame. The introduction of the Suzuki GS1000 in

1978 changed this problem once and for all. The GS out preformed every

other bike in its category and had a frame to match its power. The only thing,

which could be said against the very popular and successful GS1000, was its

dull looks.

The GS1000 was redesigned and new models based on the same original

success bike were introduced. The GSX1000 in 1980 and the GSX1100S

Katana in 1982. The later bike was a huge success due to it powerful

performance, funky style, low weight and good pricing. In 1983The RG250

is Suzukis first ever race replica. This bike features the AL-BOX, square

aluminum frame, 16-inch tire and Anti Nose Dive Forks (ANDF) at thefront. In 1985 The RG500 Gamma features the same square-Four cylinder

layout as the as the factory Grand Prix bikes. Other racy features are the

square-tube aluminum frame and the removable cassette-type transmission.

Suzuki pulled a stunt within the motorcycle market by introducing the GSX-

R750, which was such a direct copy of their formula race bike with the only

difference that this GSX was, road legal. It turned the super sport motorcyclemarket upside down and dominated the way super bikes would look for the

future. The GSX-R750 was super fast, which wasn't hard to understand since

there were hardly any changes to its racetrack design. Both on the street and

in the race track the bike was a huge success. In 1986 the GSX-R1100 was

also added to the line.


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In 1996Suzuki calls the new GSX-R750 the turning-point model thanks to

its twin-spar frame instead of the older double-cradle frame. The engine is

also redesigned and featured 3-piece crankcases, chrome-plated cylinders

and a side-mount cam chain as well as Suzuki Ram Air Direct (SRAD)

system.

In 1997The TL1000S is the first Suzuki sport bike with a V-Twin engine. It

will be followed a year later by a racier R version, with a dodgy rotary vane

damping system in the rear shock. Suzuki equipped the TL1000R with a

steering damper, but it was still prone to headshake and customers

approached it with caution, if at all.

In 1999Mat Mladin wins the AMA Super bike Championship, beginning a

run of unprecedented dominance. Mladin will win five more times, and

Suzuki will win 8 of the next 9 titles. With sport bikes getting more and

more sharp edged, the company is one of the first to recognize what might becalled the semi-sport market, as opposed to the super sport market. The

SV650 features an aluminum-alloy truss frame and a liquid-cooled 90 V-

Twin DOHC 4-valve engine. Suzuki calls the Hayabusa the ultimate

aerodynamic sportbike. Its powered by a 1298cc liquid-cooled DOHC in-

line 4-cylinder engine that becomes the darling of land-speed racers. The

name means peregrine falcon in Japanese.

The GSX style and line didn't change much over all the years with

improvements being made to the bike. A small fluke in design made Suzuki

lose its performance lead with the GSX-R1100. But the GSX-R750 has

remained a hit up until today. Maybe still hurt by losing the performance

edge with the GSX-R1100 redesign in the 1990s Suzuki introduced the

GSX-1300R (Hayabusa) in 1999. This sent the Honda Blackbird packing


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and became the world's fastest production bike at a whopping 190 mph (307

km/h).

In 2001 Suzuki introduced an upgrade GSX-R750 engine and created the

GSX-R1000 (998cc), which is a super bike with outstanding performance. In

2003 the GSX-R1000 was restyled but still kept its position as a super class

bike.

In 2005 Suzukis original 4-stroke motocross, the RM-Z450, is equipped

with a 4-stroke 449cc engine, which features the Suzuki Advanced Sump

System (SASS). Troy Corser gives Suzuki its first and only (so far) World

Super bike Championship.

In 2006 The M109R, Suzukis flagship V-Twin cruiser is powered by a

1783cc V-Twin engine with 112mm bore and 90.5mm stroke. It has the

largest reciprocating pistons in any production passenger car or motorcycle.

In 2008The B-King is launched, powered by the 1340cc Hayabusa engine;

the B-King is Suzukis flagship big Naked bike. Suzuki says it has the top -

ranked power output in the naked category.


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SUZUKI MOTORCYCLES INDIA HISTORY

Suzuki Motorcycle India Pvt., Ltd. engages in manufacturing two wheelers.

The companys products include motorcycles and scooters. It offers its

products through a network of dealers. The company was incorporated in

1997 and is based in Gurgaon, India. Suzuki Motorcycle India Pvt., Ltd.

operates as the subsidiary of Suzuki Motor Corp.

Suzuki Motor Corporation (SMC), a global giant of motorcycle

manufacturing is headquartered in Japan. It holds major stake in its Indian

subsidiary, Suzuki Motorcycle India Private Limited (SMIL). SMIL was setup after Suzuki's re-entry into the Indian two-wheeler market after it severed

ties with partner TVS in 2000-01. Suzuki was then the technology provider

in the erstwhile joint venture company TVS Suzuki.

Suzuki Motorcycle India Pvt Ltd (SMIPL) is the latest entry into the already

crowded Indian two-wheeler segment with players like Hero Honda, Bajaj

Auto, Honda, and TVS. SMIPL have started their Indian operations with a

125-cc mass-market motorcycle. It has made an initial investment of Rs. 200

crores to start their Indian operations.

Company sources have revealed that Suzuki would follow up this 125cc bike

with a high performance 150-cc sibling sometime next year. And for the

budget segment, another 100cc bike is expected in the first quarter of 2006.

Mass market is the initial aim with plans to enter all the segments rapidly.

They have their facilities located in Gurgaon.

Suzuki had launched bike by diwali, which is the auspicious time for buying

a new vehicle in Indian families. Their setup in Gurgaon has the capabilities

of manufacturing one lakh motorcycles and they are ready to step that up

massively if the situation arises. They already have setup 40 dealerships


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around the country and are going to establish 4,000-5,000 sq.ft showroom

and service stations to provide services to the customers.

The parent company happens to be one of the largest manufacturers of twowheelers in the world with more than 20 lakh bikes sold per annum. They

are popular for their range of high performance road machines, lightweight

super bikes, dirt bikes, street bikes, and motocross and fun bikes globally.
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COMPANY PROFILE

Plant area and production capacity:

They have installed their manufacturing plant in Gurgaon (Haryana) having

the annual capacity of 2,50,000 units. Total land area of the facility at Gurgaon

is 37 acres out of which the present plant is constructed in an area of 6.5 acres

of land. The remaining area of 30.5 acres is left for land development and

future expansion.

Chairman:Mr. Katsumi Takata

Personnel over the yearsYear 2013-14

Total number of employees 490

Main ProductsMotorcycles and scooters

Head Office, Plants & FacilitiesName Address Operations

Suzuki Motorcycle India PvtLtd

Factory OfficeVillage KherkiDhaula, Badshahapur,

N.H.-8, Link Road,Gurgaon.Fax No. - 0124-4170

701

Regd. Office Sales &Marketing Office

2nd Floor, Plot No. 1,Nelson Mandela Road,Vasant Kunj,

New Delhi -110 070Fax No. - 011-46075418

Head office affairs

Motorcycle engines assembling andmachining

Spare parts administration

Education, training and

Public relations

Research and development

Testing and development of motorcycles


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MISSION OF SUZUKI

The core philosophy of SUZUKI is to provide VALUE-PACKED

PRODUCTS. Since the founding of SUZUKI Motor Corporation, theOrganizations Endeavour has always been to provide VALUE-PACKED

PRODUCTS as one of the manufacturing philosophies.

SUZUKI believes that VALUE-PACKED PRODUCTS come from the

effort to carry out Product development from customers point of view. This

policy has been in effect since Companys inception and has helped the

Organization to meet customers needs. As a result, Suzukis Products have

become well received throughout the World.

SUZUKI is fully committed to create Products that meet customers demand

by utilizing its dynamic, long-nurtured technological advantage coupled with

its fresh and active human resources.

Develop products of superior value by focusing on the customers

Establish a refreshing and innovative company through teamwork

Strive for individual excellence through continuous improvement


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GROWTH REPORT:

It has reported a growth of 47.66%in sales in the month of November 13

at 14745 unitscompared to 9986 units same month last year.

It has sold 14806 units in December 13 listing a strong growth of 61%

over its sales in December 12 despite recession. This increase of sales is

attributed to the tremendous response from the new product GS150R and

ACCESS 125.

It has reported 93%growth in sales during the month of January 2014. It

has sold 20441 unitsin January 10 listing a strong growth of 93% over its

sales in January 09.

It has sold 21752 units in March 14 listing an impressive growth of 76%

over its sales in March 13. This increase of sales is attributed to the

tremendous response from the new product GS150R and ACCESS 125.

It has great plans for the coming year and this is only the beginning. Their

objective is to offer quality products and customer satisfaction to consumers.

This growth momentum will further accelerate in coming months.


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FACILITIES

1 ) ENVIRONMENT:

The philosophy of keeping environment first is properly percolated

downwards. To comply with all applicable legislations and setting standards

thereof remains only a beginning. Company thrives to discover and invent

mechanisms for better environment management systems and its a

continuous process which is managed by a separate wing of experts and

specialist in the field.

The biggest testimony of Suzukis commitments towards environment first

is seen at Gurgaon which is built to be a Zero discharge plant.

SMIPL have embraced Natural light optimization system and water

harvesting systems besides several other measures to create better and

cleaner environment around us. All packaging material used by Suzuki is re-

cycleable. A constant flow of internal communication on environment

related issues not only creates awareness amongst employees but also helps

in inculcating an environment friendly value system.

2)SHOPFLOORSAFETYMEASURES:

SMIPL have safety guards/safety curtains to ensure Operator safety on

machines. Company has also installed robots through out the facilities toreduce the ergonomic stress on workers. There are gas detection systems

installed to eliminate any gas related accident and fire detection system for

immediate information about any fire related incident.


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SMIPL have fire fighting system (manual & automatic) for immediate

handling of any fire related accident. They have a fire tender (capacity 4500

liters water and 500 liters capacity foam).

Company try to maintain zero accident record through regular safety audit,

frequent training for staff, line associates and contractors. They organize

different safety programs and competitions to encourage employee

awareness and involvement.

3) ENVIRONMENTAL UTILITY:

To take care of the health of all our employees, they maintain all

international parameters and standards for drinking water, treated water,

ambient air shop floor, office and the outside. They keep updating all these

standards of health and welfare of employees through a team of well

qualified personnel in the R & D laboratory.

4) QUALITY CONTROL:

It has four main sections as follows:

Tested by SMC Japan with their international quality standards

Final (Vehicle) Inspection

Market Quality


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5) PARTS INSPECTION:

The non conformities in the parts being procured may lead to

production loss & degradation of the quality of the final output and

life of the product. To ensure the product, the dimensional, material,

aesthetic & performance inspection for the special processes are

carried out on the individual parts before they are declared fit for the

assembly

For carrying out the inspection activities effectively, we have the latest

& sophisticated machines installed in the inspection area

6) FINAL (VEHICLE) INSPECTION:

Safety related parameters such as braking; clutch operation and other

functional defects of the vehicle

Emission related parameters for checking the conformance of the

exhaust gases with the emission rules

Functional & aesthetic parameters are also checked

7) MARKET QUALITY:

To act upon the customers feedback received from the service

department for the up gradation of the product

To resolve the quality issues being received from the market by

visiting the suppliers & taking the corrective & preventive measures

for the same

Monitoring for the effectiveness of the measures taken for the

particular problems through the cut off engine/ frame numbers.


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8) WORK CULTURE:

They believe that future growth and prosperity of every employee

depends on the companys growth and prosperity

Organizational and individual discipline

Continual improvement in quality and productivity

Cost consciousness

Customer satisfaction ( both internal and external )

Long term goals

Respect for laws, human beings and society

9) EMPLOYEE DEVELOPMENT:

Company's growth is based on enhancement of technical and behavioral

skills of the employees. They continually identify the performance gaps and

new skills required keeping into the company's growth in focus. They

believe that Employees are the most important assets of an organization. For

enhancement of technical and behavioral skills of the employees they

organize regular training programmers. Teams from Japan often come to the

organization to impart training. Their focus is to create a healthy

Environment where individual employee can achieve maximum satisfaction.


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PRODUCTS OF SUZUKI MOTORCYCLES

SUZUKI ACCESS 125CC

Suzuki launched the Access 125cc in the month of September 2007. In those

days, Access 125 was the third product from Suzukis stable in India. Prior

to this, Heat and Zeus motorcycles were ruling the Suzuki showrooms PAN

India.

Suzuki Access 125 is the third product from the Suzuki stable in India after

Heat and Zeus motorcycles. 125cc Access is powered by a 125-cc air-cooled

four-stroke engine with Continuous Variable Transmission (CVT), which

develops 8.5bhp at 7000rpm with 1.0kgm of torque at 5000rpm. The design

is typically Japanese, almost flat aprons where large turn indicators are

embedded. Though it has a longer wheelbase access looks compact becauseof this design. No body colored mirrors for this access. Paint quality is of top

notch.


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SUZUKI ACCESS 125 FEATURES:

Xtra Torque Performance (XTP) for more power and faster pick-up

Telescopic front fork suspensions for comfortable riding Tail lights that are trendy and attractive

Wider seat for comfort riding

Large size underseat compartment

Centralized ignition key switch, with shutter

Smart built-in signal

Multi-reflector lights for better visibility Stylish, Chrome-plated silencer cover

SUZUKI ACCESS 125 TECHNICAL SPECIFICATIONS:

Dimensions And Dry Mass

Overall length 1780 mm

Overall width 650 mm

Overall height 1125 mm

Wheelbase 1250 mm

Ground clearance 160 mm

Seat height 780 mm

Dry mass 109 kgs

Engine

Type Four-stroke, Air-cooled,OHC

Number of cylinders 1

Displacement 124 cm (cc)

Max Power 6.4 Kw@7000rpm(8.58hp@7000rpm)

Max Torque 9.8Nm@5000rpm (1.0kg-m@5500rpm)

Air cleaner Non-woven fabric element

Transmission CVT


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Starter system Self & Kick Self

Suspension

Front Telescopic

Rear Swing-arm

Brake

Front Drum brake (130 mm)

Rear Drum brake (130 mm)

Tyre Size

Front 90/100-10

Rear 90/100-10

Electrical

Spark plug CHAMPION P-RZ9HC

Battery 12V, 5Ah

Headlamp 12V 35/35W

Fuel Tank : Capacities

Tank capacity 6.4 L

Underseat space 20 L


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SUZUKI GS150R

The 150cc Segment is picking up in India. Suzuki has been a little

conservative till now with its bike models. Zeus and Heat and not extra

ordinary, but it sells enough to be seen here and there a while. The company

took another step ahead with the Access 125 Scooter. Suzukis foray into

this segment is expected to be create similar impact in the segment with the

GS150R.

The engine of the Suzuki GS150R is said to be convenient for riding in the

city. The 150cc engine respires through a BS26 carburetter. It comes with

Throttle Positioning Sensor (TPS). GS150R's 149cc engine develops

13.8bhp of peak power at 8500rpm and 13.4Nm of peak torque 6000rpm.

According to Suzuki, GS150R will return a mileage of 48kmpl in City and

55kmpl in Highway.

The engine uses engine balancer technology to minimise vibration and

comes with a rubber damper and a balancer shaft. It has a digital

speedometer which shows gear position, fuel level, speed, odometer,

tripmeter and the tachometer is a neat dial adjacent to the digital console.


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Name: GS150R

Type: Commuter

Top Speed: 120kph

Fuel Consumption:City 48.00

Fuel Consumption:Highway 55.00

ENGINE SPECIFICATIONS

Displacement: 149cc

Engine:Four Stroke, Single

Cylinder, SOHC

Maximum Power: 13.8 Bhp @ 8500 rpm

Maximum Torque: 13.4 Nm @ 6000 rpm

Gears: 6 ManualBore: 57

Stroke: 58.6

No. of Cylinders: 1

Cylinder

Configuration:SOHC

Valve Per

Cylinder:2

Cooling Type: Air Cooling

Carburetor: BS26 - ThrottlePositioning Sensor

DIMENSIONS

Length: 2095.00 mm

Width: 775.00 mm

Height: 1120.00 mm

OTHER SPECIFICATIONS

Weight: 134.00 kg

Ground Clearance:160.00 mm

Fuel Tank: 15.50 ltrs

Wheelbase: 1340.00 mm

Headlamp:Multi Reflector Halogen

Bulb

Wheel Type: Die Cast Alloys

Wheel Size: 2.75x18 - 100/90-18 mm

Tubeless: NO

Colors:

Pearl nebular black,

Metallic flint gray, Candy

max orange & Candy dark

greenish blue.

ACTIVE AND PASSIVE SAFETY

Suspension(Front):Telescopic, Coil Springs, Oil

Damped

Suspension(Rear):Swing Arm Type Coil

Spring, Oil & Gas Damped

Brakes: Hydraulic Single Disc

Brakes(Rear): 130mm Drum

Stand Alarm: NO

COMFORT AND CONVENIENCE

Fuel Guage: Digital

Self Start: YES

Tacho Meter: Analogue

Trip Meter: Digital-1

Alloys: YES

Speedometer: Digital

PassengerFootrest:

YES

Passenger

Backrest:NO

Step-up Seat: YES

Pass-light: YES

Low Fuel

Indicator:YES
http://autos.maxabout.com/bikes/bodytype/commuterhttp://autos.maxabout.com/bikes/bodytype/commuter


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SUZUKI ZEUS 125CC

Suzuki Zeus, the latest bike from Suzuki Motorcycles India Pvt Ltd has beenlaunched. The 125cc single cylinder Suzuki Zeus comes at a price of f Rs

46,084. The bike had a soft launch earlier this year.

Besides Suzuki Zeus, Suzuki India has another motorcycle in the Indian

market, called Suzuki Heat. Both Zeus and Heat are part of Suzuki's attempts

to come back to the Indian market, which it had left in the late 90s. During

its earlier Indian coming, Suzuki partnered TVS for its two-wheeler

business.

Suzuki Zeus, packed with latest technology and styling, is an entry level bike

from Suzuki Motor Corporation. Zeus has a unique cut-line front cowl for a

much stylished, dynamic look. The bike is available in Zeus 125X and

125XU models.

Suzuki Zeus will be available in three colors, the company said. These are

Candy Antares Red (19A), Metallic Titanium Gold (YM3) and Pearl

Nebular Black (YAY). To manufacture Suzuki Zeus and Suzuki Heat, the

company has invested Rs 200 crore at its Gurgaon manufacturing plant. The

production capacity of the plant is 100,000 bikes per annum.


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SUZUKI ZEUS 125CC FEATURES:

Powerful Disc Brakes (front, asbestos-free)

Bright and Big multi-reflector Halogen Head Lamp for better visibilityat night and make a dashing style statement.

Convenient Shift indicator for adjusting fuel efficiency on different

gears.

Advanced and Stylish Instrument Panel with Tachometer

Uniquely styled front cowl for a dynamic look.

Stylish Under Cowl for engine protection and making a stylestatement.

Advanced 5-speed Gearbox for a smoother and comfortable ride.

Robust all Aluminium Engine with large fins and upright cylinder for

superb cooling and style.

Primary Kick & Auto Decompression System for effortlessly starting

the engine in any gear.

Stylish and large fuel tank.

Ergonomic seat design for easy ground access and minimum knee

bending.

Helmet Holder to take the load off your head after you park the bike.


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VEHICLE SUMMARY

Name: Zeus 125

Model: XCD

Type: Commuter

Top Speed: 101kph

ENGINE SPECIFICATIONS

Displacement: 124cc

Engine:Four-stroke, Air-cooled,OHC

Maximum Power: 8.5 Bhp @ 7500 rpm

Maximum Torque: 10 Nm @ 3500 rpm

Gears: 5 Speed

Clutch: Wet Multiplate typeBore: 53.5

Stroke: 55.2

CylinderConfiguration:

NA

Engine BlockMaterial:

NA

Chassis Type: NA

Cooling Type: Air Cooling

Carburetor: NA

DIMENSIONS

Length: 2040.00 mm

Width: 770.00 mm

Height: 1125.00 mm

OTHER SPECIFICATIONS

Weight: 114.00 kg

Ground Clearance: 155.00 mm

Fuel Tank: 12.00 ltrs

Wheelbase: 1240.00 mmElectrical System: NA

Headlamp: NA

Battery Type: 9.0 KC 10HR

Battery Voltage: 12V

Battery Capacity: 2.5 Ah

Horn: NA

Wheel Type: Alloys

Wheel Size: 2.75x18 - 3.00x-18 mm

Tubeless:

Colors: NA

ACTIVE AND PASSIVE SAFETY

Suspension(Front):Telescopic, Coil spring,Oil damped

Suspension(Rear):Swing-arm type, Coilspring, Oil damped

Brakes: Disc

Brakes(Rear): Drum 130mmStand Alarm:

COMFORT AND CONVENIENCE

Fuel Guage: Analogue

Self Start:

Tacho Meter: Analogue

Trip Meter: Analogue-1

Alloys:

Warranty: NASpeedometer: Analogue

Passenger Footrest:

PassengerBackrest:

Step-up Seat:

Pass-light:
http://autos.maxabout.com/bikes/bodytype/commuterhttp://autos.maxabout.com/bikes/bodytype/commuter


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SUZUKI HAYABUSA

Suzuki bring the Hayabusa motorcycle to India. The Hayabusa official

nomenclature is GSX 1300Rwill pave the way for Suzukis foray into thesuperbike segment in India. Competition, however, has already arrived in the

shape of Yamaha and Ducati motorcycles in India.

Powered by a 1340cc in line 4 cylinder engine, the Suzuki Hayabusa is likely

to sport a price tag of Rs 11 lakh. The bike was launched in the first week of

September 2008. Suzuki also launched a second superbike, the GSX-R 1000

in November.

Although boasting of a top speed of 397 km per hour as per recorded figures,

the bike that will come to India will have a speed limit of 299 km per hour.

Company think that the higher figure here is from some world record

attempts, while 299 km ph would be the official top speed. Do keep in

though that superbike or not, speed limits in most parts of India are at 60kmph, and may go up to 100 km ph on some of the expressways.

Suzuki expects only a sale of around 150 units of the Hayabusa in India per

annum.


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SUZUKI WARRANTY POLICY

Suzuki Motorcycle India Private Limited, (SMIPL) offers warranty for all

models manufactured in its Gurgaon plant and sold through its authorized

dealers. Suzuki Motorcycle India Private Limited reserves the right either to

replace or repair, at their authorized dealer, free of cost, those parts which

may be found on examination to have manufacturing defect within 2 years

from the date of sale (or) first 30,000 kms whichever occurs earlier of its

operation.

If any of the free or paid service is not done as per schedule, the warranty

tends to stand void. Parts of the vehicle have been subjected to misuse,

accident, and negligent treatment, use of bad quality parts which are not

manufactured (or) not recommended for use by SMIPL on their motorcycles.

Parts of the motorcycle getting rusted or their plating or painting coming off

due to atmospheric condition like Sea Breeze and Industrial Pollution.

Motorcycle used for any Competition (i.e.) Rallies (or) Races, if it is used for

any commercial purposes like Hiring etc. SMIPL undertakes no liability in

the matter of any consequential loss (or) damage caused due to failure of the

parts. Parts repaired (or) replaced under this warranty are warranted only for

the original warranty period of Suzuki motorcycles. Consumables like

Engine Oil, TFF Oil, Grease, used for the warranty repair are not covered

under the application of the warranty.


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APPLE AUTO AGENCY

This Show room has its separate service center, also have a la testservice center with all semi-automatic instruments. It maintains a

unique and regular checking of each and every bike to increase a

satisfaction level of the customers.

It strictly watches and tries to lesser the time of a customer while

they give bike in to service. Mostly Customer when come to give

his bikes in service, the service procedure of the showroom is

very less and smallest so that customer will free within 5

Minutes.

Gate Entry

Receive by Service Advisor

Job Card Entry (Opening)

Estimation of Exp .

This Procedure will take just only 5 Minute then after Service of

the Bike is done.


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SERVICE PROCEDURE

WASHING THE BIKE

MECHANICS / ENGINEER

(BIKE WISE)

SPARPART REQUICISION

(IF REQUIRED)

SPAREPART

DEPART.

FITTING OF SPARPARTS &COMPLETE FORTHER

PROCESS

TESTING ONROAD

SUPERVISOR

DELIVERY TO THE

CUSTOMER


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SELLING SCHEME & RESULT:

Selling scheme is a Dealers Scheme that is useful to attract the

customer towards the showroom to purchase new bike. This all

selling scheme provided to the customer is within Rs.2000. Such

Selling Scheme are:

RTO Free

Insurance Free

Petrol Free Up to some K.M or some Rupees.

Reference Sales

DSS (Door Sales Service)

Exchange (It is a Major tool of Scheme/Conversion)

SELLING OF SHOW ROOM:

Every showrooms goal is to increase the sales. The APPLE

AUTO AGEENCY has a great sales of bike through providing

different scheme, facility and services to the customer. The

Following figures are approximate:

Daily 6 vehicles

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