A

PROJECT REPORT
ON
“IMPACT OF INFORMATION TECHNOLOGY SYSTEM ON THE
MARKETING OF PRODUCTS”

FOR
STEEL AUTHORITY OF INDIA LIMITED, MUMBAI

SUBMITED TO
UNIVERSITY OF PUNE

IN PARTIAL FULFILLLMENT OF TWO YEARS FULL TIME MASTERS

IN BUSINESS ADMINISTRATION (MBA)

SUBMITED BY
ABHIMANYU GARYALI

SIDDHANT COLLEGE OF ENGINEERING,

SUDUMBARE, TALEGAON-CHAKAN ROAD, PUNE-412109
(2009-2011)
 PREFACE

This project is carried out in pursuance of the postgraduate program in the discipline
of business administration (MBA) for marketing specialization.

It is well known that theory without practice is of little use undoubtedly theoretical
knowledge gives an edge to practice. I was placed with Steel Authority Of India Ltd.
(Mumbai) for summer training. The topic studied under this project is entitled as “A
Study of IT systems used in CMO Mumbai (SAIL)”.

This provided me opportunity to peep into the IT systems adopted by CMO Mumbai.

In this connection, I was benefited a lot by different magazines and journal. The
bibliography and appendix attached at last mention it.

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 ACKNOWLEDGEMENT

It is difficult enough to express my deep and profound sense of gratitude in words for
those, whose direct and indirect support enabled me in successfully carrying out this
project.

First of all, I express my gratefulness to our Manager Mrs. Jyoti Bara, Manager(C &
IT)/WR, The Metropolitan 8th and 9th floor, Bandra-Kurla (East) Mumbai. For
allowing me to do this project from his esteemed organization and helped as a Mentor
in this project work.

I express my deep gratitude to my Principal Dr. T. R. Sontakke and internal guide

Prof. Yogini Gajare of the college for his spiteful guidance and encouragement.

Last but not the least, I acknowledge my parents, family members and friends who
encouraged and inspired me in completion of this project.

Date: - Abhimanyu Garyali

Place: - M.B.A-IInd Year (Marketing)

BATCH (2009-2011)

3
 DECLARATION

I, Abhimanyu Garyali student of Siddhant College of Engineering (MBA

Department), Pune, hereby declare that the project report submitted by me is an
original work conducted by me for the partial fulfillment of the degree of master of
business administration (MBA) under the guidance of Prof. Yogini Gajare.

The same has not been submitted by me for any other examination of this university
or any other university.

ABHIMANYU GARYALI

4
 INDEX

Sr. No Contents Page No.

1. Executive Summary 06

2. Objectives of the Project 08

3. Scope of the Project 09

4. Company & Product Profile 10

5. Theoretical Background 34

6. Research Methodology 41

7. Data Analysis and Interpretation 44

8. Findings of the Project 63

9. Conclusion 65

10. Limitations of the Project 66

11. Recommendations 67

12. Bibliography 69

13. Annexure 70

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 EXECUTIVE SUMMARY

Introduction

The present study was undertaken to see the use and benefits of IT system in Central
Marketing Organization (CMO) Mumbai and in the working marketing department
(CMO). Marketing department is the newest genesis from the SAIL and attempts to
reach there where no corporate has ever ventured so far. The survey was conducted in
IT Department and marketing department. I wanted to find out the effectiveness of the
latest IT technology in increasing the sales and satisfaction of both the employees and
the customers. The basic function of the IT system is explained and how does the IT
system work.

After the dawn of IT systems the world has become easier to live in. IT has not only
helped in business but other spheres of life also. Information technology is basically
the use of electronic items for a specified process. In SAIL the IT system is extensive
used and connects all the plants to the CMO’s.

Objective

The primary objective of the project is to analyze the IT system used by Central
Marketing Organization (CMO’s) in major cities to place order, to decide the
production pattern, to know the quantity available with the plan and by this system the
CMO’s can also indirectly tell the plants what to produce and which part of India
would they require it.

Research Methodology

For this research project I used both primary and secondary data. First, I used
secondary data to understand the market situation and to review the industry norms

6
and reports. After this I drafted a questionnaire on the relevant issues and conducted a
employee and customer survey. I used descriptive research design, as this suited my
project’s requirement. The research also included distributor, retailer. Random
sampling was used for this purpose. The sample size for the consumer survey was 35
respondents. Out of which 25 respondents are from customer category whereas 10 are
from employee category. Random sampling of probability sampling technique is used
to take the response of consumers and employees. On the basis of this study different
strategies were designed to facilitate the effectiveness of IT system on market and
customer. Duration of my project was two months.

Findings

During my training I had to find out the use of IT system in the day to day working of
SAIL. By using the present IT system this is evident that there are many major
developments such as increase in sales, higher customer and employee satisfaction,
ease in demand forecasting. But at many spheres such as right time of delivery of
product the customers were not satisfied. So we can say that there are many merits
and demerits in the present IT systems.

Conclusion

To summarize I would say that the study carried out by me is to find the major
contribution of the latest IT technology in the company and how it helps in the
marketing of the products for the company. I passed through various stages of
problems and difficulties to accomplish the task of project work but it was privilege
for me to take this opportunity a challenging work to study and observe “IT system”.

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 OBJECTIVES OF THE STUDY

Primary objective:

The primary objective of study is to know about the use of Information Technology in
Central Marketing Organization Mumbai and CMO’s for marketing selling their
products and creates a two way communication pattern between the CMO’s and
plants.

Secondary objectives:

• To study the impact of IT in the company for manager & customers.

• To study the impact of IT on sales.

• To study the various reasons for purchase of products from the company.

• To study present IT system in company.

• To study various difficulties/ problem while using IT system.

• To study the satisfaction level with the company employees and customers
using the IT system installed.

• To find out the demand or demand forecast

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 SCOPE OF THE PROJECT

In today’s life IT plays a vital role in all the aspects of life whether it be life or
business IT is present everywhere and is being of great help to the humans.
Purposeful application of information in the design, production, and utilization of
goods and services, and in the organization of human activities

There are vast applications of IT, but some of the applications of IT are listed below

• In Education

• In Business

• In Health Care

• In Defense

There are some following scopes:

• The result of marketing success using information technology can be used in

applied in all the other sphere of the company such as providing good and
services, production planning, forecasting, logistics,

• The present IT system can be used for demand forecasting making production
efficient.

• With the help of the present IT system correct type of transportation and
distribution channels can be used.

• With the use of IT systems it is easy now for any human being to connect or to
contact anybody anywhere.

• With the help of the latest IT technology we can now make correct decision
regarding production plans, distribution channels and market segment.

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 COMPANY PROFILE

One of the leading steel producers in the world and the largest steel maker in the
country, SAIL occupies a prime place in the industrial scenario of India. SAIL, is
India’s largest and one of the World’s leading steel producer with a turnover of
around Rs.16500 crores. Quality steel products from SAIL, have carved a niche for
themselves in the global steel market. The company aims at making its global
presence felt through export, joint ventures and alliance with internationally reputed
steel markets.

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It is a fully integrated iron and steel maker, producing both basic and special steels for
domestic construction, engineering, power, railway, automotive and defense
industries and for sale in export markets. The Government of India owns about 86%
of SAIL’s equity and retains voting control of the company. SAIL by virtue of its
“Navaratna” status, enjoys significant operational and financial autonomy.

In a fast changing product market scenario, SAIL has lunched a new strategy for
achieving a turnaround, which includes financial restructuring and business
restructuring to focus on core business of making carbon steel and withdrawing from
non-core and non-viable activities. Making employees focus on market requirement,
ensuring greater involvement of plans in marketing initiative, achieving cost
leadership through rigorous cost cutting drive and rationalizing manpower to bring
down the total number of employees to competitive levels are some other facets of the
strategy.

CURRENT SCENARIO

The Indian steel industry also went through an extremely turbulent phase in the
backdrop of a global economic slowdown revealing that the industry was now
globally linked and was impacted by developments in international markets. As per
the Ninth Plan (1997-2002) steel production targets the industry had started investing
in fresh capacity. While the installed capacity of the industry went up to 35 MT, a
slowdown in almost all industrial segments of the Indian Economy and depressed
global demand resulted in mismatch between installed capacity and demand. This led
to a crash in steel prices, which meant ever-decreasing price realization for all major
steel producers. All major producers barring Tata Steel went into red and in 1999-
2000 questions were being asked whether the steel industry would survive.

Joint Ventures:

SAIL has promoted joint ventures in different areas ranging from power plants to e-
commerce.

 NTPC SAIL Power Company Pvt. Ltd (NSPCL)

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Set up in March 2001, this 50:50 joint venture between SAIL and the National

Thermal Power Corporation (NTPC) operates and manages the Captive Power Plants-
II of the Durgapur and Rourkela Steel Plants which have a combine Capacity of 314.
It has installed additional capacity by implementation of 500 MW (2 x 250 MW
Units) power plant at Bhilai. The commercial generation of 1st Unit has commenced
in April’2009 and the 2nd Unit in October 2009

 Bokaro Power Supply Company Pvt. Limited (BPSCL)

This 50:50 joint venture between SAIL and the Damodar Valley Corporation formed
in January 2002 is managing the 302-MW power generation and 660 tonnes per hour
steam generation facilities at Bokaro Steel Plant.

BPSCL has proposed to expand its capacity by installing 2x250 MW coal based
thermal unit at Bokaro. In addition, construction activities are underway for
installation of 9th Boiler (300T/Hr) & 36 MW Back Pressure Turbo Generator
(BPTG) project at Bokaro.

 Bhilai Electric Supply Company Pvt. Limited

Another SAIL-NTPC joint venture on 50:50 basis formed in March 200 manages the
74 MW Power Plants-II of Bhilai Steel Plant which has additional capacity of
producing 150 tonnes of steam per hour.

 Larsen & Toubro Ltd (L&T) –

To jointly set up, develop, manage and own captive/independent power plant(s) at
suitable location/s to meet future power requirements of SAIL including opportunities
to own captive thermal coal blocks to cater to the power plants’ requirements..
 Indian Railways for procurement of high power locomotives
Bangalore-based Bharat Earth Movers Limited (BEML) for supply of crucial
equipment

 Metaljunction.com Private limited

A joint venture between SAIL and Tata Steel on 50:50 basis, this company promotes
e-commerce activities in steel and related areas.

A 50-50 joint venture between SAIL and Tata Steel formed in 2001. This company
promotes e-commerce activities in steel and related areas. Newly added services

12
include e-Assets sales, Events & Conferences, Coal Sales & Logistics, Publications
etc...

 SAIL-Bansal Service Center Pvt. Ltd.

SAIL has formed a joint venture with BMW industries Ltd. on 40:60 basis to promote
a service centre at Bokaro with the objective of adding value to steel.

 North Bengal Dolomite Limited

A joint venture between SAIL and West Bengal Mineral Development
Corporation ltd on 50:50 basis was formed for development of Jayanti Dolomit
Deposit, Jalpaiguri for supply of Dolomite to DSP and other plants.

 Bhilai JP Cement Ltd

SAIL has incorporated a joint venture company with M/s Jaiprakash
Associates Ltd to set up a 2.2 MT slag based cement plant at Bhilai. The clinker
production has started from December 2009; and the grinding unit has commenced
trial runs since April 2010.

 Bokaro JP Cement Ltd

SAIL has incorporated another joint venture company with M/s Jaiprakash
Associates Ltd to set up a 2.1 MT cement plant at Bokaro utilizing slag from BSL.
The project implementation is under progress with commencement of cement
production likely by July’2011.

 Romelt-SAIL (India) Ltd

A joint venture between SAIL, National Mineral Development Corporation
(NMDC) and Russian promoters for marketing Romelt Technology developed by
Russia for reducing of iron bearing materials, which is carried out with carbon in
single stage reactor with the use of oxygen.

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 Satisfaction Customer

Aspiration Unlimited

Improvement Continual

Leadership Market

VISION

To be a respected world Class Corporation and the leader in Indian steel business in
quality, productivity, profitability and customer satisfaction.

CREDO

• We build lasting relationships with customers. Based on trust and mutual

benefit.

• We uphold highest ethical standards in conduct of our business.

• We create and nurture a culture that supports flexibility, learning and is

proactive to change.

• We chart a challenging career for employees with opportunities for

advancement and rewards.

• We value the opportunity and responsibility to make a meaningful difference

in people's lives.

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OVERVIEW

As, we all know that Central Marketing Organization (CMO) of SAIL has got Sales
Resident Manager offices at all the Plant locations. The Head of the department of
such offices are called Sales Resident Managers. Similarly, at Bokaro Steel Plant,
Central Marketing Organization has set up its office called SRMO. This is a very
important assignment as Bokaro Steel Plant is the largest producers of the saleable
steel in India. Before, knowing more about SRMO working it becomes essential to
know something about Bokaro Steel Plant, as SRMO has to work neck to neck with
the Plant.

Bokaro Steel Plant brings out before ones eyes the vision of a massive giant in the
steel marking. As the fourth steel plant in the Public Sector, conceived in 1959, it
actually started taking shape in 1965 with the signing of an agreement with the
Government of USSR on 25th of January 1965. Envisaging a capacity of 1.7 Mt in 1st
stage and 4.0 Mt in second stage. The Plant has taken up modernization with a view
to introduce continuous casting facilities and updating the Hot Strip Mill, a major step
towards providing the state of art technology for producing quality steel at
international standards. Its main products are:

1. HR Coils, Plates & sheets

2. CR Coils & Sheets

3. GP/GC Sheets

4. Tin Mill Black Plates

5. Cr cold rolled sheets

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 PRODUCT PROFILE

PRODUCTS

In steel plant, finished products are categorized into 3 parts:

1. Prime products: - These are actual products, which are originally produced for
example; blooms, billets, channels, rounds, angles etc.

Steel Billets 2.1001-83529

2. By products: - These products are not originally produced by Bokaro Steel

plant, but are outcomes while producing the primary products.

3. Secondary products: - these are the defectives or rejected materials due to

improper mixing of chemical components or fail to meet the optimum
requirements. Scraps generated inside plant are also termed as Secondary
products. The secondary products used here in after will mean ferrous
materials generated from various production units which can either suitably be
used foe re-melting to produce iron and products or offered for sale if
rendered surplus, rod cutting, scrap etc.

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Performance Highlights – 9 months FY 09

 Sales of 7.7 million tones

 Semis component reduced to 7.4 % [ 5 ISPs] of sales of saleable steel
 Saleable steel production of 9.1 million tones
 Hot Metal production of 10.9 million tonnes
 Crude steel production of 10.1 million tones
 Special Steel Production – 2.9 million tones
 Production through Concast – 6.6 million tones

Performance Highlights – 9 months FY 09

Major Techno Economic Parameters.

 Coke Rate at 525 kg/T- lower by 2% over CPLY

 Fuel Rate at 564 (kg/Thm) – marginally lower over CPLY
 Energy Consumption 6.78 (G.Cal/tcs tcs) –lower by 4% over
Corresponding Period Last Year.
 Avg. Capacity utilization (Saleable Steel) steel– 110%
 Avg. Capacity utilization (Hot Metal) Metal) – 105%
 Avg. Capacity utilization (Concast Production) – 126

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 Central Marketing Organization

Central Marketing Organization (CMO), headquartered in Kolkata, is India’s largest

industrial marketing set-up. It markets carbon steel produced by the five integrated
steel plants of SAIL. This ISO 9001:2000 certified organization transacts its business
through a network of

• 42 Branch Sales Offices spread across the four regions,

• 25 departmental Warehouses equipped with mechanized handling systems,
• 42 Consignment Agents and 26 Customer Contact Offices.

CMO’s domestic marketing effort is supplemented by its ever widening network of

rural dealers. Who meet the demands of the smallest customers in the remotest
corners of the country. With the total number of dealers crossing 2,000, SAIL's wide
marketing spread ensures availability of quality steel in virtually all the districts of the
country. CMO through its joint venture partner M/s Metal Junction has simplified
steel buying by providing net based facilities through its on line ‘e store’, providing
door delivery facilities to small house-builders.

A strong IT support system enables real-time network connectivity within the entire
CMO network. Extensive customer contact, product and segment specialization, close
monitoring of order servicing and feedback analysis through a Customer Satisfaction
index are established norms at CMO. The customer-friendly approach of CMO is
backed by practical after-sales service. Through the process of Key Account
management, CMO provides single-window service to key customers across the
country for every business transaction from enquiry to order booking, order tracking
to delivery, and even consultancy and after-sales service.

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SALES PROCESS OF PRODUCTS MANUFACTURED IN BOKARO STEEL
PLANT

PLANT

Sales Stock Transfer

Export Sales Stockyard Transfer

Direct Sales

Plant Direct Sales CMO Direct Sales

IPT Transfer

Sales of Primary Product

Sales of Secondary Products

CMO

BSO A, B, C ……….. Sister Plants A, B

…...

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Party A, B, C, D ……………………
WHO OWNS SAIL?

SAIL is public sector undertaking of the government of India which holds 85.82% of
equity. Other major shareholders are financial institution with 7.57% stake and
individuals with 3.68% stake.

Sail today

SAIL today is one of the largest industrial entities in India. Its strength has been the
diversified range of quality steel products catering to the domestic, as well as the
export markets and a large pool of technical and professional expertise. The total
turnover of the company was an all time high of Rs. 39,188.66 crores during 2006-
07, a growth of 21% as compared to 2005-06.

Integrated steel plants:

 Bhilai steel plant (BSP) in Chhattisgarh

 Durgapur steel plant (DSP) in West Bengal

 Rourkela steel plant (RS.P) in Orissa

 Bokaro steel plant (BSL) in Jharkhand

 IISCO steel plant (ISP) in West Bengal

Special steel plants:

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  Alloy steel plants (ASP) in West Bengal

 Salem steel plant (SSP) in Tamil Nadu

 Vivesvaraya iron and steel plant (VISL) in Karnataka

Subsidiaries

Maharashtra elektrosmelt limited (MEL) in Maharashtra

Bhilai oxygen limited (BOL) in New Delhi

Competitors of SAIL:

1. Tisco (Tata iron and Steel Corporation).

Sales turnover Rs. 3791 crores, increase of over 13 % over last year.

Sales volume 2052 MT, increase of over 10% over last year.

Exports Rs. 700 crores

Market share increased from 2-12%.

Modernization to the tune of Rs. 4000 crores underway.

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Expanding product mix

2. RINL (Rashtriya Ispat Nigam Ltd).

Sales turnover Rs. 1900 crores, increased by 52%.

Sales volume 2.36 MT increased 67%.

Exports Rs. 600 crores

Growth in domestic market by 26% over last year

Market share increased from 5% to 21%.

3. Ispat

Started in 1976 by setting up multi crores ISP in Indonesia; today its one of the fastest
growing company’s in the world.

Sales turnover Rs. 600 crores

Capacity 4.2 MT.

Other competitors

4. Essar steel

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 5. Jindal steel

Capital Expenditure

Amount spent on Expansion Plan and other Capital Schemes of SAIL (incl.
subsidiary) during last 3 years are as follows:

Year Total (Rs. in Crores)

2007-08 2181

2008-09 5233

2009-10 10606

ROLE AND FUNCTIONS IN SRM OFFICE

The role and functions of SRM is very critical and important. Its important role is to
coordinate with the plant for execution of orders booked by the various Branch Sales
Offices all over India i.e. from Kashmir to Cochin. The role and functions of SRMO
can be defined point wise which are computed below:

1. To ascertain the availability of material at the Plant level and to intimate

the same to the HQ/regional HODs.

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 2. To intimate the Demand Forecast for the next month received from
HQ/CMO to plant in order to start making steel accordingly.
3. To receive the orders from Branches Regions and HQ’s (Direct and
Stockyard.
4. To ascertain the dispatches from plant location to the actual destination.
5. To help branches/customers in getting CA, DA, RR and Test Certificates
available in short time with much accuracy.
6. Any Plant-related job of any branch of CMO is carried away through
respective SRMO.

I.T. SYSTEM IN Central Marketing Organization

The day today working CMO is fully dependent on I.T. set-up. branches feed the
orders in OMS-II which passes through regional office and then HQ through system
where the order gets approved and through SDC Hyderabad reaches to CMO location
where the same order is downloaded and through system only gets transferred to plant
for execution of that particular order in other words we can say that everything is
online at SRMO especially at Bokaro. After material is dispatched to the respective
locations the DA/RR/CA is prepared/generated by the plant and ftped to CMO where
the same details are being put on home page to facilitate the Customer /Branches
regarding their dispatches of materials. This process is done through IPPs system.
Before going through IPPS system at Bokaro and other details of IPPS etc., we should
know few things about computerization in SAIL which are the Primary or
Fundamental requirements for developing such system.

INTRODUCTION TO SAIL NET:

CMO had started the total computerization the total computerization activities during
1989 with the help of outside agencies. This was done in a planned manner
encompassing the various functions of the organization. During the course of the Past
few years various systems were implemented and had reached a level of stabilization

24
and the acceptance by the user. The various applications or branch and stockyard,
SRM (plant interface) regional product planning, central product planning, payroll,
branch transport and shipping. Headquarters T&S and headquarter finance system.

All the systems were developed keeping in view the geographical spread of the
organization. These were isolated system interacting with each other using variety of
hardware and software depending on the need of the respective functional area of
work. As such we have stand alone PC's, PC-based LAN's, dumb terminal based
minis and super minis. However, each system depends upon another for its input. The
regular flow of information forms a very crucial link for the different systems.

SAIL NET is to provide the networking facility by interconnection the various

computers and applications running in these computers. The effective networking will
include maintaining online and provide access to the distributed database as is
currently available.

File transfer facility: The user will be able to send files from or printed document
from one location to another.

E-mail Facility: A special software package has been implemented for sending and
receiving electronic mails which helps to act speedily in the offices of SAIL & that
too with effective cost reduction.

The information needs to be classified into 5 functional zones:

Information

Zone A Zone B Zone C Zone D Zone E

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Zone A

This is the area where the information is generated e.g. Orders, delivery, orders
challan etc. in the branches, moment plans in the SRM, price, and product master at
commercial division.

The online data capture at various locations is processed and used by the owner
(where the actual data is generated) for day to day activities, the same is also used for
analysis and reports at the other levels of the management

Zone B

The information at Zone A is used by the zone for further processing and output of
which forms the input to the other users. For instance the orders received from the
branches are processed into movement plans and are sent to the plants where it is used
as input for further processing.

The needs of the zones are to be catered by Zone A either by:

01. Providing information data at basic level (raw data e.g. challan CMIS)

02. Providing processed information (trial balance to HQs, Finance)

The frequency of the need of the various types of the information from Zone A is as
follows:

1. Instant updates i.e. as and when transactions occur in Zone A.

2. Frequent batch updates, may be daily or weekly to be decided by the
respective users (e.g. cash collection statements, daily sundry debtors
statements.)
3. Batch updates which requires to be done only on monthly (e.g. stock
cum sales statement to plant and HQ Finance)

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Zone-C

The Zone needs information generated by the Zone A for enquiries, analysis, reports,
management information system. Zone A needs to provide information at the basis
level as and when the transmission occurs. In a few cases batch updates need to be
done periodically.

ZONE- D

This zone will be a broadcast type where the information will be sent to all the
locations (e.g. price product master, circulars from personnel department).

ZONE- E

This zone needs online access to all the other zones for problem solving, trouble
shooting, updating enhancing software division (Software group only).

Based on the classification of the Zone, System, the information needs of the various
functions of the SAIL CMO can be categorized broadly into:

CATEGORY 1: Branch and Stockyard, Commercial Division, ITD, BTSO,

Finance, Personnel.

CATEGORY 2: Product Planning Group, Market Development Group,

Regional Finance SRM office, PPC (Plant Interface System),
T&S HQs and Finance HQs.

CATEGORY 3: Régional MIS, Finance HQs, MIS Personnel, Central MIS.

CATEGORY 4: Pricing Division, Personnel, Finance HQs.

CATEGORY 5: System's Software Group.

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How are computer interconnected at Application level?

To understand the method of connections it is necessary to take at top-down approach.

ZONE C

This zone will provide the complete MIS for SAIL CMO, plants and SAIL Corporate
Office.

WHENEVER NECESSARY THE FUNCTIONARIES AT ZONE A AND B CAN

VIEW INFORMATION FROM THIS ZONE (E.G. INFORMATION ON STOCK
AVAILABILITY AT OTHER LOCATIONS DESPATCHES FROM PLANTS
ETC.)

This zone will comprise of mini and super minicomputer at the Regions quarters,
SRM (Plant interface system) clustered together. These computers will work in
tandem or together depending upon the need of the applications.

ZONE B

The computers belonging to this zone are directly linked to computers in the zone C.
The information requirement of this zone is met by Zone A and Zone B.

ZONE A

This zone generates almost all the necessary information for use in the other Zones.
The computers in this zone are more or less functioning independently but transmit
the information generated by them via the linkages provided.

ZONE D

The computers in this zone will send data/information to all the locations which are
connected to the network.

HOW DOES SAILNET WORK?

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Most of our applications are based on distributed database. For the integration of the
applications the nodes (node is a computer in the network) do not interact with each
other directly. They do so via dedicated communication server. This is meant to ease
the application host server (Falcon Server in the branches, Regional mini computers
etc.) from routine communication activities.

Integrated data communication system software has been developed to provide the
exchange of information at pre determined internals among the applications. The
application software has been also changed/modified to ensure that the SENDING
AND RECEIVING DATA is in-built into the application software. Care has been
taken to ensure that there is an only minimal change to the application software.

The main functions of the integrated data communication system are:-

a) To packetize out bound messages (each transaction is treated as a

message) from the application server to the communication server.

b) To receive incoming messages from the communication server and

either (i) update the application database immediately or (ii) store them
in communication database for further use.

c) To acknowledge the receipt of data at the application server or send

appropriate error message, wherever necessary.

d) To ensure that the message are routed to the correct destination

computer.

VSAT is terminated or connected to one or more communication servers. The

communication serves in turn are connected to the application servers or mini-
computers or stand-alone computers. In addition to taking care of the sending and

29
receiving messages, these Communication Servers also serve as mail servers (Mail-
boxes) for a given location.

All transactions at the Branches or SRM etc. are also stored in a communication
database, from where these are forwarded to the pre defined destination. Adequate fail
safe software has been provided to take care of the various error conditions that may
occur during transmission. The user is not required to put in any extra (manual) effort
to send or receive data, as the communication software has been designed to
automatically update the database without human intervention. It is to be noted that a
condense replica of all the transactions at the branches or SRM's etc. will be made
available at the regions and CMIS-Kolkatta. Of course there are some changes to the
working procedures which have been provided to the users during the time of
implementation.

One of the most important aspects of networking is the security of the systems and the
databases. This is a very great extend has been taken care of by the protocols and the
communication software. However, the final control and maintaince of the security
rests with the user only. This means that the use of various levels of login-
identifications and passwords should be kept under strict control.

EXECUTION OF WORK IN COMPANY IN ITS CONTEXT:

As already said that total working in company is carried through system only, in other
words we can say that everything is online here so we can call it as online system.
There is one communication server with application server and another standby
application server which are called database server also through which data flows for
the whole time by way of receiving the data and sending the data. There are also four
main workstations in addition to five secondary work stations which are all connected
with LAN as already mentioned branches of CMO feed the orders in their system
through OMS, reaches the same orders to region and headquarter for approval and
through SDC Hydrabad to our location that is SRMO Bokaro where these orders or
which we generally call Planning Flow Through our system and after downloading
these orders we convert them to moment plans. These moment plans are

30
simultaneously transferred to plants through one plant server where material is being
made as per MP's only and being further dispatched to the concerned location/
branches. At the end of the day the whole data is being transferred to the standby
application server for up keeping of the safety of the data and backup is taken. This is
the day to day job of SRMO so far IT field is concerned. The system through which
all these things are done is called IPPS i.e. INTEGRATED PRODUCT PLANNING
SYSTEM. Before laying more emphasis (information) on IPPS we should know
about OMS (Order Management System) and other systems which are totally
related/linked to the system installed at SRMO Bokaro.

IPPS (INTEGRATED PRODUCT PLANNING SYSTEM) has been implemented at

SRMO Bokaro, Bhillai, Durgapur, Rourkela & PMG Ispat bhawan Kolkata.

Features:

1. The system has been designed with the of the art client/server technology.

2. First GUI (Graphical User Interface) based system in CMO.

3. The system can be used from remote locations also.

As mentioned above there are other system which are co related to IPPS in day to day
work.

1. Order booking procedure via internet and Sailnet.

A. MP Generation process against QDDP's

B.CA/DA data flow status report

DEMAND FORECAST SYSTEM (Order Management System):

All branches enter forecast for the next month in this system for branch key accounts

31
as well as Sundry customers. Whereas for national key accounts, KAM's enter the
forecast. These forecasts are consolidated at regions and then sent to PMG(FP/LP)
after moderations. Plants (SRMs) indicate the availability for the next month is done
and then allocation data is transferred back to regions. Further regions does branch
wise allocations.

ORDER BOOKING SYSTEM- Procedures (Order Management system-Phase 2

This system provides facility to enter the actual orders. These orders may be given for
a given forecasts or fresh (i.e. not covered under any forecasts). This system can be
accessed via SAILNET as well as INTERNET (Tip: on top right of all screens one
image of "HOME" appears. Select it to go back to main menu of the system.

How to access through SAILNET (Branches)

Logon to demand forecast system (OMS- PHASE 1) being used to enter demand
forecasts. Elect "Order Banking" in menu screen. Next screen will show following
options. Enter fresh order or generate order for a given forecasts Enter Orders for a
customer reference modify order. View Order Delete Order Reports & Inquiry
Demand forecast menu. Logout.

Generate Orders

Select first option of the menu. Next screen will show a selection list. Select "NEW"
for fresh orders otherwise select forecast no if you want to generate Order for a
forecast. If you are selecting "new" then one blank screen will appear. Fill up all the
fields and choose OK. Second screen will also be a screen with blank fields. Fill up all
the fields here and choose OK. Orders generated!!!! Please note down the order
number for future reference. if you are selecting "forecast no" then forecast details
will appear. Fill up blank fields, select appropriate grade and choose OK. Again one
screen with blank fields will appear, enter/select appropriate values and choose OK.

32
One more screen with blank field will appear, Select/Enter appropriate details and
choose OK. ORDER generated!!!! Please note down the order number for future
reference. in both to select a party you can follow (only) one of og the following
ENER 13 character AI Party code of the party. If you don’t know the AI Party code of
the customer then select party name from the selection list. Take "Search AI Party
Code" help. Enter few characters of the party name, division, payee or consignee.
System will show you all parties matching with initials you entered. Select the
appropriate one. Shortly more simplified procedure of party selection will be
introduced and will be informed to all accordingly. NOTE: There are few Tip’s to
ease your job. Please consult once with respective SRMO also before using codes etc.
given in this document.

1. While generating orders please note down Customer reference No & the Order no.
for future reference.

2. To enter a fresh order user has to traverse two screens and has to enter a lot of
information. Since there can be a lot of items for same customer & product but for
different grade or size. Except grade, size & tonnage rest of the things may be
common to all items. Hence, to minimize the data entry effort please select "next
item" link given in the bottom of the page (the page which you get after entering one
order). On selecting this link system [apart from TDCs, destination etc.). Rest of the
things you need not to enter again and again. System will take rest of the values from
the previous item.

3. Even you need not to enter all items in a single day. Suppose you have entered 10
items out of 15 items given by the customer (or if you have entered all 15 items and
customer given some more orders after few days for the same product but for different
size & grade). Then select "NEW order against Customer reference" from the menu.
System will ask you to enter very little information like grade/size/tonnage (apart
from TDCs Destination etc.). Rest of the things (like party details, its payment terms,
PFA value etc.) you need not to enter again. This newly generated order will get
linked to same customer reference number (the one which you selected from menu).

4. Some important points to be kept in mind during Order Entry in the above system
are mentioned below:

33
a) Booking/Customer type codes: During order entry, please note that the Booking
type and Customer Type codes chosen are very critical since the installment Code
number. Some branches may have doubts regarding the booking type of orders. For
their easy reference, we are mentioning herewith some of the combinations to be
used. (For a complete list, please refer to help button in entry screen).

THEORITICAL BACKGROUND

DEFINITION OF INFORMATION

In general, raw data that has been verified to be accurate and timely, is specific and
organized for a purpose, is presented within a context that gives it meaning and
relevance, and which leads to increase in understanding and decrease in uncertainty.
The value of information lies solely in its ability to affect a behavior, decision, or
outcome. A piece of information is considered valueless if, after receiving it, things
remain unchanged. For the technical meaning of information see information theory.

WITH REFRENCE TO COMPUTERS

a. Important or useful facts obtained as output from a computer by means of

processing input data with a program: Using the input data, we have come up with
some significant new information.

34
b. Data at any stage of processing (input, output, storage, transmission, etc.).

DEFINITION OF TECHNOLOGY

Purposeful application of information in the design, production, and utilization of

goods and services, and in the organization for human activities. Technology is
generally divided into five categories Tangible: blueprints, models, operating
manuals, prototypes. Intangible: consultancy, problem solving, and training methods.
High: entirely or almost entirely automated and 'intelligent' technology which
manipulates ever finer matter and ever powerful forces. Intermediate: semi-automated
'partially intelligent' technology that manipulates refined matter and medium level
forces. Low: labor intensive 'dumb' technology that manipulates only coarse or gross
matter and weaker forces.

TECHNOLOGY WITH REFRENCE TO COMPUTERS

Any outbreak of new or innovative Tools, machines, instruments, weapons,

appliances - the physical devices of technical performance, Knowledge: The know-
how behind technological innovation, Activities: their skills, methods, procedures,
routines, Process: Begins with a need and ends with a solution, Sociotechnical
System: The manufacture and use of objects involving people and other objects in
combination with reference to computers.

Importance of Technology in Business: Advanced technology developed by some of

the best scientists and researchers in the world have totally changed the way
businesses function. Machines have helped product manufacturing companies to
produce quality products at low cost and in huge quantities. This has increased their
total turnover and also the profit margins. Due to the growing demand, these
companies are hiring employees on a large scale thus reducing the number of
unemployed people substantially. The various software packages available and
developed by software giants have made day to day working of firms belonging to all
sectors very easy and highly professional. Technology has also helped reduce losses

35
and meet the security demands of business houses. Development in the
communication and telecoms sector has helped business houses stay connected at any
given time, thus increasing their efficiency to a great extent. Maintaining important
records of things related to the business has become easy due to the accounting
software available in the market. The reason why technology is so important today
will give you relevant information.

WHAT IS INFORMATION TECHNOLOGY

In the 1960s and 1970s, the term information technology (IT) was a little known
phrase that was used by those who worked in places like banks and hospitals to
describe the processes they used to store information. With the paradigm shift to
computing technology and "paperless" workplaces, information technology has come
to be a household phrase. It defines an industry that uses computers, networking,
software programming, and other equipment and processes to store, process, retrieve,
transmit, and protect information. In the early days of computer development, there
was no such thing as a college degree in IT. Software development and computer
programming were best left to the computer scientists and mathematical engineers,
due to their complicated nature. As time passed and technology advanced, such as
with the advent of the personal computer in the 1980s and its everyday use in the
home and the workplace, the world moved into the information age.

By the early 21st century, nearly every child in the Western world, and many in other
parts of the world, knew how to use a personal computer. Businesses' information
technology departments have gone from using storage tapes created by a single
computer operator to interconnected networks of employee workstations that store
information in a server farm, often somewhere away from the main business site.
Communication has advanced, from physical postal mail, to telephone fax
transmissions, to nearly instantaneous digital communication through electronic mail
(email). Great technological advances have been made since the days when computers
were huge pieces of equipment that were stored in big, air conditioned rooms, getting
their information from punch cards. The information technology industry has turned
out to be a huge employer of people worldwide, as the focus shifts in some nations

36
from manufacturing to service industries. It is a field where the barrier to entry is
generally much lower than that of manufacturing, for example. In the current business
environment, being proficient in computers is often a necessity for those who want to
compete in the workplace.

What is a System?

System: A set of components that work together to achieve a common goal

Subsystem: One part of a system where the products of more than one system are
combined to reach an ultimate goal

Closed system: Stand-alone system that has no contact with other systems

Open system: System that interfaces with other systems

WHAT IS AN IT SYSTEM?

An information system (IS) is any combination of information technology and

people's activities using that technology to support operations, management, and
decision-making. In a very broad sense, the term information system is frequently
used to refer to the interaction between people, algorithmic processes, data and
technology. In this sense, the term is used to refer not only to the information and
communication technology (ICT) an organization uses, but also to the way in which
people interact with this technology in support of business processes.

37
 Components of an information system

Several subsystems make up this corporate IT system.

NEED OF AN IT SYSTEM:

Why Do People Need Information?

• Individuals - Entertainment and enlightenment

• Businesses - Decision making, problem solving and control

38
• Generating Information
a. Computer-based ISs take data as raw material, process it, and produce information as
output.

Input-process-output

• Information in Context:

39
 Characteristics of useful information

• Information and Managers:

 Systems thinking
 Creates a framework for problem solving and decision making.
 Keeps managers focused on overall goals and operations of
business.

40
 Qualities of humans and computers that contribute to synergy

The Benefits of Human-Computer Synergy:

Synergy

When combined resources produce output that exceeds the sum of the outputs of the
same resources employed separately

Allows human thought to be translated into efficient processing of large amounts of

data

41
 RESEARCH METHODOLOGY

Research methodology is a framework, a blue print for the research, which guide the
collection and analysis of data.
Research methodology is being framed in order to achieve the research objectives. It
is an expression of what is expected of the research exercise in terms of result and the
analytical input need to convert data into research findings.

Research methodology minimizes the degree of uncertainly involved in the

management decisions. Research lays the structure for decision-making.

RESEARCH DESIGN

Research design can be defined as the arrangement of condition for the collection of
data in a manner that provides relevance in research and economy in procedure. In
this study descriptive research design was used. It is generally concerned with
narration of facts and character concerning group of situation. It also describes the
existing state of affairs. Researcher can only report as to what has happened or what is
happening and has no control over the variables.

For this research project I used both primary and secondary data. First I used
secondary data to understand the market situation and to review the industry norms
and reports. After this I drafted a questionnaire on the relevant issues and conducted a
employee and customer survey. I used descriptive research design, as this suited my
project’s requirement. The research also included distributor, retailer. Random
sampling was used for this purpose. The sample size for the consumer survey was 35
respondents. Out of which 25 respondents are from customer category and 10 from
employee category. Random sampling of probability sampling technique is used to
take the response of consumers and employees. On the basis of this study different
strategies were designed to facilitate the effectiveness of IT system on market and
customer. Duration of my project was two months.

42
SAMPLE DESIGN

Sampling indicated the selection of a part of a group or an aggregate with a view to

obtaining the information about the whole. This aggregate or totality of all members is
known as population although they need not be human beings. For this study in
designing the sampling the sampling plan, we have used the random sampling
method. The sampling units for this study are dealers, big civil contractors & builders
concerning to steel industry.

PARTICULARS DESCRIPTION

Sample size 35 respondents

[25 are customers

10 are employees]

Sample area Mumbai

Target respondents Customers(manufacturers, traders,

processors, others) employees

Research method Random sampling

Research type Descriptive

This is written and in organized format containing all question relevant to soliciting
type, in which all questions and answers is specified and comments in the respondents
own words are held to a minimum, the unstructured questionnaire is useful in carrying
out in depth interviews where the aim is to probe for attitudes and reasons.

For this study we are using structured questionnaire and carry out the personal
interviews with customers and dealer. Sometimes we have carried out in-depth
interviews and observe the situation to get more in depth information about the topic.
In the structured personal interview method the information is likely to be more
accurate and reliable because the interviewer can clear up doubts and cross check the
respondents. Moreover this method is most flexible, no response is very low.
Supervision & control is possible.

Tools for data collection

43
Primary Data: Data that is collected for the specific purpose at hand is Primary Data.

Characteristics:

a) It is expensive mode of data collection.

b) Lot of time is spent.
c) It gives accurate results if sample is efficiently selected.
d) Data used is original in nature.
Primary data sources used in this project:

a) Observation Method
b) Questionnaire Method

Secondary Data: Data that has been collected earlier for some purpose other than the

purpose for present study.

Characteristics:

a) It is economical as the cost of collecting original data is saved.

b) Time involved is comparatively less than primary data.
Secondary data sources used in this project:

a) Books
b) Journals
c) Website of Company

Findings and conclusions: Analysis of the data leads to the results and based on that
result it has been tried to provide the company with important suggestions.

Data tabulation: collected data has been tabulated in a manner easy to grasp and is in
quantified terms wherever possible.

Data analysis: Different statistical and non-statistical techniques like histograms and
pie-charts are employed to analyze the collected data.

Analyzing the information: The collected data was carefully analyzed and only
relevant data was selected that was useful for my research work.

DATA ANALYSIS & INTERPRETATION

44
The fieldwork was carried out by the researcher mainly with the view to get a
generalized view about the present IT System installed in CMO Mumbai. The
research was mainly carried in CMO Mumbai.

DATA ANALYSIS &

INTERPRETATION OF

EMPLOYEES
CUSTOMERS

QUESTIONNAIRE FOR CUSTOMERS

45
1) What is the classification of customers in the company?

Sr. Customers classification Respondents Percentage

No.

1. Trader 6 24%

2. Manufacturer 14 56%

3. Processor 3 12%

4. Others 2 8%

Total 25 100%

INTERPRETATION:-

The above graph shows the different category of customers for secondary
and by-products. Manufacturers were found to be highest amounting to 56% whereas
traders were 24%, processors were 12% and others amounted of 8% among the
different types of customers who purchased from the company.

2) What are the reasons for purchase from the company?

46
 Sr. Reason for purchase Respondents Percentage
No.

1. Present it system 11 44%

2. Cheap transportation 5 20%

3. Price 2 8%

4. Quality 7 28%

Total 25 100%

INTERPRETATION:-

From the graph, it is interpreted that most of the customers of secondary and
by-products prefer to purchase from the company because of present IT System that
accounting to be of 43% whereas 31% go for quality, 20% opt for price and 6%
choose cheap transportation.

3) Which is the most suitable way for placing order?

47
Sr. Suitable way to place order Respondents Percentage
No.

1. It system 19 76%

2. Challan 2 8%

3. Form filling 1 4%

4. Telephonic 3 12%

Total 25 100%

INTERPRETATION:-

It was judged from the above pie chart that 76% of the customer find IT
system method of placing order most suitable but 8% find challan method convenient
whereas 4% find for filling easy and 12% find telephonic method of placing order the
best.

4) What types of products are purchased by using the present IT system in the
company?

48
 Sr. Type of product Respondents Percentage
No.

1. Secondary steel 10 40%

2. By-products 11 44%

3. Slag 3 12%

4. Idle assets 1 4%

Total 25 100%

INTERPRETATION

As interpreted from above most of the customers of secondary and by-

products in the company deal with the by-products accounting to 44% but secondary
steel is also sharing a 40% stake. Though slag also generates huge revenue but they
only have a 12% presence whereas idle assets are of 4%.

5) How did the present IT system help you in placing orders?

Sr. No. Reasons for choosing Respondents Percentage

49
 1. Order placing procedure is 16 64%
fast

2. Modification of order is easy 3 12%

3. Status enquiry is easy 5 20%

4. Others 1 4%

Total 25 100%

INTERPRETATION:

From the above chart we can say that 64% of the customer place order due
to the reason that the IT system is fast. 20% of the customers are have an opinion that
it is easy to do enquiry about the status. 12% of the customer find that after ordering
they can easily modify their orders apart from that 4% have other reasons for placing
order.

6) Do you find better IT system with the competitors of the company?

50
 Sr. View Respondents Percentage
No.

1. No 22 88%

2. Yes 3 8%

Total 25 100%

INTERPRETATION:

From the above study we can say that 88% of the customers believe that
the current selling methods adopted by the company are good. Only12% customers
found better selling methods adopted by other steel companies.

7) For how many years are you trading with the present IT system installed?

51
Sr. No. Categories Respondents Percentage

1. Below 2 years 4 16%

2. 2 years to 4 years 5 20%

3. Above 4 years 16 64%

Total 25 100%

INTERPRETATION:

Out of total respondents, 64% of the customers of the company for

secondary and by-products have been trading with them for more than 4years. Apart
from that 20% of customers were dealing from 2-4 years and 16% were dealing with
the company from less than 2 years.

8) What kind of difficulties did you face while using the IT services?

52
Sr. Problems faced Respondents Percentage
No.

1. Timely delivery 1 4%

2. No single window system 21 84%

concept

3. Transportation/logistics 3 12%

Total 25 100%

INTERPRETATION:

From the above chart 84% of the customers face the problem that there is not a
single window system for ordering the product. Rest 12% think that they face issues
with transportation and logistics apart from that remaining 4% have a problem with
the timely delivery of product.

9) How was your experience with marketing mangers using the IT system?

53
 Sr. Perception Respondents Percentage
No.

1. Highly satisfied 9 36%

2. Satisfied 12 48%

3. Neutral 3 12%

4. Dissatisfied 1 4%

Total 25 100%

INTERPRETATION:

From the above pie chart 36% of the customer are highly satisfied with the
present IT system installed in the company, 48% were satisfied with the IT system
and 12% were of neutral opinion. Only 4% of the customers were dissatisfied.

10) Are you satisfied with the current selling methods of the company using the
IT system?

54
 Sr. No. Response Respondents Percentage

1. Yes 21 84%

2. No 4 16%

Total 25 100%

INTERPRETATION:

We can state from the above that the 84% of the customers of secondary and
by-products in the company are satisfied with the current selling methods using IT
system. 16% of the customers are not satisfied with the current selling methods the
company using IT Technology but they are not able to give proper reason for their
dissatisfaction.

11) How was your overall experience while dealing with the company?

Sr. Status Respondents Percentage

55
 No.

1. Highly dissatisfied 2 8%

2. Dissatisfied 3 12%

3. Neutral 8 32%

4. Satisfied 10 40%

5. Highly satisfied 2 8%

Total 25 100%

INTERPRETATION:

The above graph shows the experience of customers while dealing with the
company. 8% of the customers said that they are highly satisfied and 8% dissatisfied
with the experience while trading with the company. But, there were 40% who were
satisfied with the experience. 32% were neutral about their experience. Only 12%
were dissatisfied.

QUESTIONNAIRE FOR EMPLOYEES:

56
1) Is there any impact on sales volume after the installation of the present IT
system?

Sr. Response Respondents Percentage

No.

1. Yes 9 90%

2. No 1 10%

Total 10 100%

INTERPRETATION:

From the above pie chart we can say that after the installation of the present IT
System in the company, the sales have considerably increased 90% of the employees
stated it that using the IT System the sales volume for the products has increased and
is constantly increasing. But only 10% feel that there is no increase in sales.

2) How is IT technology helpful for you?

57
 Sr. Reasons Respondents Percentage
No.

1. Fast process 4 40%

2. Requires less paperwork 2 20%

3. Saves time 1 10%

4. Saves money 2 20%

5. Reduces requirement for 1 10%

manpower

Total 10 100%

INTERPREATION:

From the above pie chart we can conclude that 40% of the employees think
that with the use of IT technology the process has become fast. 20% of customers
think that with the help of IT technology it reduces paper work and saves money
respectively. And 10 % of customers think that with the use of IT technology we can
reduce manpower and save time.

3) Are you satisfied using the present IT system?

58
 Sr. Status Respondents Percentage
No.

1. Highly satisfied 2 20%

2. Satisfied 7 70%

3. Neutral 1 10%

4. Dissatisfied 0 0%

Total 10 100%

INTERPRETATION:

The above graph shows the experience of employees which are using the IT
system installed in the company. 20% of the employees are highly satisfied using the
present IT system and find it convenient and easy for the day to day working.70%
employees are satisfied with the IT system. 10% have no opinion about it. None is
dissatisfied.

4) Does the present IT system help you in demand forecasting?

59
 Sr. Response Respondent Percentage
No.

1. Yes 7 70%

2. No 3 30%

Total 10 100%

INTERPRETATION:

The above pie chart shows that 70% think that the IT system helps the
manager to forecast what and how much to produce. As demand for the product can
be ascertained thus the IT system helps reducing the overall cost of production. But
30% think that IT is of no use in demand forecasting.

5) How does the IT system helpful for you in the following?

60
 Sr. Uses Respondents Percentage
No.

1. Place order 2 20%

2. Modify orders 2 20%

3. Delete orders 2 20%

4. Truncate orders 2 20%

5. Status enquiry 2 20%

Total 10 100%

INTERPRETATION:

From the above pie chart we can say that the present IT system is equally important in
all spheres of work that is 20% for all.

6) Are you satisfied with the training and development for IT system?

61
 Sr. Status Respondents Percentage
No.

1. Highly satisfied 6 60%

2. Satisfied 3 30%

3. Neutral 1 10%

4. Dissatisfied 0 0%

Total 10 100%

INTERPRATATION:

From the above pie chart we can conclude that 60% of the employees are
highly satisfied with the training and development done by the organization. 30% are
satisfied, rest 10% has a neutral opinion about training and development process.
None is dissatisfied.

7) Do you get news and updates regarding the present IT system?

62
Sr. No. Response Respondent Percentage

1. Yes 8 80%

2. No 2 20%

Total 10 100%

INTERPRETATION:

The above pie chart is about the employee being updated or

informed about the new changes and upgrades done in the present IT system. 80% of
the employees are satisfied by the updates they get through email and letters. But still
20% employees are not that satisfied with the present measures taken to inform the
employees about the updates.

FINDINGS OF THE PROJECT

63
Customers:

1. Out of total sample, 56% of the customers were found to be Manufacturers.

2. 44% of the customers purchased products from the company because of the present
IT system.

3. 76% of the customer find IT system method of placing order most suitable.

4. 44% of the customers are dealing in secondary and by-products.

5. 64% of the customer place order due to the reason that the IT system is fast.

6. 88% of the customers believe that the current selling methods adopted by the
company are good.

7. 64% of the customers of the company for secondary and by-products have been
trading with them for more than 4 years.

8. 84% of the customers face the problem that there is not a single window system for
ordering the product.

9. 48% were satisfied with the IT system.

10. 84% of the customers of secondary and by-products in the company are satisfied
with the current selling methods using IT system.

11. 40% of the customers are satisfied with the overall experience.

Employees:

64
1. Out of total sample, 40% of the employees think that with the use of IT technology
the process has become fast.

2.90% of the employees stated it that using the IT System the sales volume for the
products has increased and is constantly increasing.

3. 70% employees are satisfied with the IT system.

4. 70% think that the IT system helps the manager to forecast what and how much to
produce.

5. The present IT system is equally important in all spheres of work that is 20% for
all.

6.60% of the employees are highly satisfied with the training and development done
by the organization.

7.80% of the employees are satisfied by the updates they get through email and
letters.

CONCLUSION

65
Majority of the customers were found to be Manufacturers. And most of the
customers purchase products from the company because of the present IT system as
they find IT system method of placing order most suitable. Most of the customers out
of them deal in secondary and by-products as it is feasible for them to place orders
due to the effectiveness and efficiency of the IT system and saves a lot of time and
money.

Almost all the customers believe that the current selling methods adopted by the
company is the best adopted method for sale due to which majority of the customers
have been dealing with secondary and by-products have been trading with them for
more than 4years. But still major chunk of the customers face the problem that there is
not a single window system for ordering the products.

Half of the customers were satisfied with the IT system as it reduces paper work and
complex documentation.

Majority of the customers of secondary and by-products in the company are satisfied
with the current selling methods using IT system. Mostly all of the customers are
satisfied with the overall experience.

Roughly all the employees think that with the use of IT technology the process has
become fast. All the employees somehow admitted that IT system has played a vital
role in increased of sales volume and sales are constantly increasing.

Majority of employees are satisfied with the IT system. As this state that with the help
of IT system the manager can forecast what and how much to produce. All the
employees think that the present IT system is equally important in all spheres of work.
Most of the employees are highly satisfied with the training and development done by
the organization. As per date all the employees are satisfied by the updates they get
through email and letters.

LIMITATIONS OF THE STUDY

66
• Non cooperative attitude of some of the respondent and biased responses in
some case.

• The secondary data collected from magazines and newspapers were compiled
for others purposes, as such they were not completely pertinent to the
information required for the problem.
• Sometimes, respondent try to hide certain facts or they manipulate certain
answers.
• As SAIL is a huge company and CMO Mumbai has a huge customer base it is
impossible to reach to every customer and conduct a survey.
• This project is subject to certain limitations. As study involves generalization
of certain facts. Short time period at command, economic limitations and a
vast area to cover rules out censure method and randomization has its own
shortcomings.

• Secrecy needed to be maintained in case of confidential official data. So it was

difficult to get relevant data from office.

• During survey it was little difficult appointment from senior officers of the
company because of their busy schedule.

• Geographical limitations are existed as the project is very much confined to

Mumbai.

67
 RECOMMENDATIONS

• Majority of the customers are manufacturers so the company should target

other market sections also.

• Apart from the IT system the company should lay stress on other factors for
promoting sales.

• Customer should also be involved actively in the IT system so that they can
also check for regular updates for their products.

• Other options should be also kept open for placing orders apart from IT
system.

• The sale for secondary and by-products consists of major sales so promotion
mix should be made so that slag and scrap should also be sold.

• Dependence on IT system should be reduced for day today working.

• The company should lay emphasis on single window system for sale of
products.

• Proper training and development activities should be conducted on regular

basis for older employees as they are not that tech savvy.

• More functions should be introduced in the IT system for efficient working.

• As technology is dynamic in nature so proper up gradation should be done

time to time.

• Updates and news about the IT system should be provided to employees

regularly.

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Some more important points to be noted

• Check the connectivity regularly.

• Please ensure that the V-sat is working properly.

• Keep the procedure for bringing up and bringing down the systems readily
available.

• Please ensure that the communication server is kept on during the period the
work is in progress.

• Check the Regional EDP or SDC for any clarification. Don’t try to do on trial
basis if not sure at the time of any problem.

• Please follow the procedures laid down for smooth flow of data.

• Please ensure that the regular archiving is done in the communication

database. If not done regularly then the flow of information becomes uneven.
The integrity of the data base in SMRO is disrupted. Archiving needs to be
done on daily basis.

• Please don’t give your root password of A/S or C/S to any one except to
regional EDP or SDC.
• Please keep procedure for starting and stopping servers ready ensure 2 or 3
persons know about this
Following steps should be taken at regular interval to create space in the IPPS DB
Server.

• When IPPS DB is down only then give the following command: “rm—
i/usr/ipps/nohup.out” may be done once in every week or more often. This
creates space in /usr/ipps/filesystem.
• In SAILCOM login, go to option a) administration b) archive communication
database c) clean archive directories. This deletes all archived data in arc_cd
directory. This should be done once in three month. (if possible not too often
since archived CA data also gets deleted which branches same time ask for).
But even if we do it is not a problem. This creates space in /home/sailcom/ file
system.

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 • In Sailcom login, go to a) Administration b) Cleanup message log. This
deletes system.log. This should be done regularly or alternatively or more
often. This creates space in /home/s ailcom /file systems.
BIBLIOGRAPHY

In order to complete the project report following Books and magazines were
concerned:

Books:

Marketing Management – Philip Kotler 13th edition (Pg-115)

Research methodology (methods and techniques) – C. R. Kothari 2nd revised edition

(Pg-1, 2, 31, 95 and 111)

MAGAZINES AND REPORTS:

 Business India

 Business Today

 Business Standard

Websites:

www.sail.co.in www.metaljunction .com

www.steelrx.com www.pib.nic.in

www.steel.nic.in www.steel.gov.in

www.newstech.com www.wikipedia.com

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 ANNEXURE

QUESTIONNAIRE FOR CONSTOMERS-

Customers of CMO Mumbai

(A unit of SAIL)

• Name of customer-
………………………………………..
• Address:
……………………………………………………………………
• Contact no:
…………………………………………………………………….
1. Why do you prefer to purchase from the company?
a. Present IT system
b. Quality
c. Cheap transportation
d. Price

2. What type of products do you purchase from the company using IT system?
a. Primary products
b. Secondary products
c. By-products
d. Scraps

3. Since when you are dealing with the company using the present IT system?

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 a. Below 2 year
b. 2 year-4year
c. Above 4 year

4. In which category of customer do you belong?

a. Trader
b. Manufacturer
c. Processor
d. Other

5. How did the present IT system help you in placing orders?

a. Order placing procedure is fast

b. Modification of order is easy

c. Status enquiry is easy

d. Others

6. Are you satisfied with the current selling methods of the company using the IT
system?

a. Yes
b. No

7. Did you face any difficulties dealing with the company?

a. Timely delivery
b. No single window system concept
c. Transportation/logistics

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QUESTIONNAIRE FOR EMPLOYEES:

• Name of employee-
………………………………………..
• Address:
……………………………………………………………………
• Contact no:
…………………………………………………………………….

1. How is it technology helpful for managers?

a. Fast process
b. Requires less paperwork
c. Saves time
d. Saves money
e. Reduces requirement for manpower

2. Has the sales increased after using the IT system?

a. Yes
b. No

3. Are you satisfied with present IT system installed?

a. Highly satisfied
b. Satisfied
c. Neutral
d. Dissatisfied

4. Is it possible to forecast demand using present IT system?

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a. Yes
b. No

5. How does the IT system helpful for you in the following?

a. Place order
b. Modify orders
c. Delete orders
d. Truncate orders
e. Status enquiry

6. Are you satisfied with the training and development for the IT systems?
a. Highly satisfied
b. Satisfied
c. Neutral
d. Dissatisfied

7. Are you satisfied with the news and updates on the present IT system?
a. Yes
b. No

74