final project balco

8/6/2019 Final Project Balco

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NDERSTANDING CUSTOMER S CONCERNNDERSTANDING CUSTOMER S CONCERN&&

EVISING A PLAN FOR CUSTOMER SEVISING A PLAN FOR CUSTOMER SATISFACTIONATISFACTION

Project guide:

Mr. K. Karmakar

AGM(marketing) BALCO,KORBA

MENTOR:Subah kataria

Submitted by:

Alok Ghosh

Sumit Namdev


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INTRODUCTION BALCOINTRODUCTION BALCO

BALCO was incorporated in 1965 as a public sectorundertaking. Till 2001, BALCO was a public sector enterpriseowned 100% by Government of India (GoI). In the year 2001,

GoI divested 51% equity and management control in favour ofSterlite Industries (I) Limited.

BALCO is located in Chhattisgarh region at korba near bilaspur. It majorly contributes in the national GDP by

producing aluminum around 350000 tonnes per annum.


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BALCO is executing a US$ 863 million expansion plan to

increase its aluminium production. It set up a 540 MWelectricity generation plant for captive consumption.It isalso setting up GREENFIELD SMELTER at Korba. Itscapacity proposed to be increased by 9,00,000tna. The costof project is presumed to be around $800 m.

BALCO has been the first in the Indian Aluminium Industryto produce the Alloy Rods, which is a Feedstock for allAluminium Alloy Conductors, needed for todays powertransmission lines.


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Vedanta Resources plc (Vedanta) is a London listed FTSE 100diversified metals and mining major.The Group producesaluminium, copper, zinc, lead,iron ore and commercial energy.Vedanta has operations in India, Zambia and Australia and astrong organic growth pipeline of projects.With an empowered talent pool of 30,000 employees globally,Vedanta places strong emphasis on partnering with all its

stakeholders based on the core values of entrepreneurship,excellence, trust, sustainability and growth.
http://www.vedantaresources.com/uploads/vedanta-group-structure-lar.jpg


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Objectives of The ProjectObj

ectives of The Project

To initially make a brief study of the Aluminium industry bothin the global scenario and in the Indian scenario

To make brief study of the company i.e. BALCOTo find out the importance of solving the customers complaintsTo make study on the customers complaint resolution method

carried out by BALCO

To study the customer satisfaction strategy as carried in-house

by BALCO and to study about the Customer Satisfaction


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AluminiuAluminium productsm p

roducts

Ingot

Billet

Wire rod

Rolled Products

Hot Rolled Coils

Hot Rolled Plates

Cold Rolled Coils and Strips
http://en.wikipedia.org/wiki/File:Lingot_aluminium.jpg


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VisionVisionTo achieve global standards of excellence in productivity and customer

satisfactionThe Bharat Aluminium Co. Ltd. (BALCO) culture finds expression in its fivecore values:1.Commitment to excellence2.Commitment and competence of the people

3.Customer satisfaction4.Globally one of the lowest cost produces5.Team work.

MissionMission

To harness the profitable and growing CCR market from 1 million ton perannum.

To achieve and sustain cost leadership in the global marketTo become a vibrant, learning organization by building skills and

competencies of employees for growth.To be a responsible and respectable corporate citizen.


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CUSTOMER SATISFACTIONCUSTOMER SATISFACTION

The very success of any enterprise depends largely on its ability to

satisfy and retain their customers. Any business without a focuson customer satisfaction is at the mercy of the market. Withoutloyal customers eventually a competitor will take away yourcustomers and your customer retention rate will decrease.

A successful enterprise knows very well what the key drivers of

satisfaction are, the areas that will have the greatest impact inimproving customers overall perception of our service. Best

practice companies also monitor customer feedbacks over timeand communicate a strong message about their commitment toserve their customer.

As per the marketing concept, a firm can realize all its business

goals by generating customer satisfaction. The idea may soundsomewhat utopian. In reality, it is an workable proposition.


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Benefits of Measuring Customer SatisfactionBenefits of Measuring Customer Satisfaction

Learning strategies for improving servicesLearning customer expectationsIdentifying common reasons for customer dissatisfactionImproving customer retention

Making customers feel valuedUncovering missed opportunities to demonstrate your capacity

to solve problems and win back customers confidenceImproved competitive positionHelping to decide where best to spend improvement dollars to

make sure you spend it where it matters the most.


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Customer Satisfaction Strategy OverviewCustomer Satisfaction Strategy Overview

When we talk about customer service or satisfaction, we talk aboutcreativity. It allows us to handle or diffuse problems at hand or lateron in the process of conducting everyday business. We talk abouthow or rather what the organization has to do to gain not only the

sale but also the loyalty of the customer. He wants to know the pay ofthe transaction both in the short and long term.We want to know what

the customer wants; we want to know if our customers are satisfied.Satisfaction of course means that what we delivered to the customer

met his / her approval. We want to know if the customer is delightedand is willing to come back.


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Tools For Tracking CustomerTools For Tracking Customer

Satisfaction StrategySatisfaction Strategy

Customer satisfaction surveys:

Complaint & Suggestion System:

Ghost Shopping:


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Major Customers of BALCOMajor Customers of BALCO

NATIONAL SMALL INDUSTRIES CORPORATIONHINDUSTAN SEALS LTDBAJAJ AUTO LTDGOETZE INDIA LTDTATA MOTORS LTD

GANGA JAMUNA LTDHIREN ALUMINIUM LTDSTERLITE INDUSTRIES LTDMETAL POWER COMPANY LTDSUNDARAM CLAYTON LTDINDIA PISTONS LTD

ORDNANCE FACTORY AMBAJHARIHINDUSTAN AERONAUTICS LTDBHILAI STEEL PLANTROURKELA STEEL PLANTVISAKHAPATNAM STEEL PLANT


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Marketing processMarketing processCUSTOMER REQUIREMENTS

eq ues t f orroducee que st f orroduce

ENQUIRYNQUIRY EGIONAL MARKETING/FFICE PRODUCTMANAGEREGIONAL MARKETING

/FFICE PRODUCTMANAGER

/S THE MATERIAL FEASIBLE AVILABL TO PRODUCE/S THE MATERIAL FEASIBLE AVILABL TO PRODUCEURCHASE ORDERURCHASE ORDER

S THE MATERIAL AVAILABLE IN STOCKS THE MATERIAL AVAILABLE IN STOCK ERFORMAINVOICE

ANUFACTURINGRDER TO PLANTANUFACTURINGRDER TO PLANT

/TOCK WAREHOUSETOCK WAREHOUSEATERIALPRODUCTIONATERIALPRODUCTIONAYMENT

/ /DV LC BGAYMENT/ /DV LC BGAP DELIVERYORDERAP DELIVERYORDER/ILLING INVOICE /ILLING INVOICE

DESPATCH


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CUSTOMER SATISFACTION SURVEYCUSTOMER SATISFACTION SURVEY

Depth Interviews were conducted to

capture the expectations of customers

and map interaction areas in order to

provide context/ perspective to the

performance measurement.

Quantification of all expectations through

a systematic measurement tool, using a

structured questionnaire and Performance

scale.

Phase IExploratory Phase

Phase IExploratory Phase

Phase IIMeasurement Phase

Phase IIMeasurement Phase

CRA


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&roduct &roductPackagingackaging &illing Payment&illing Payment Orderingrdering

elivery of goodselivery of goods Contractontractingngompany Personnelompany Personnel

elationship Buildingelationship Buildingomplaint handlingomplaint handling

1 2

6

3

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Analysis of The SurveyAnalysis of The Survey

On the basis of the survey BALCO found some vital areas wherethey want to improve themselves. These areas are fallows


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Surface finish of the product

Adequacy of channels available for enquiry (email, regional office etc.)

Completeness of the invoice with respect to the quantity purchased, price, discounts and packaging detailsetc.

Ability to keep quality related rejection low

Timely receipt of Credit Note

Timeliness of Account Reconciliation

Ability to maintain the appropriate physical properties of the product

Ability to commit a time for delivery

Adequacy of options available for payment (Letter of credit, Bank Guarantee etc.)Ability to build rapport

Packaging of products as specified in the invoice

Sturdiness of packaging

Timeliness of delivery of product as per commitment

Dimensional Tolerances - length

Condition of product delivered

Transparency in pricingAbility to understand your needs as a customer

Quality of price structure provided

Adequacy of information to track delivery (details of transporter, truck driver`s contact etc.)

Ability to solve your problems, queries, complaints, etc.

Condition of product delivered

Timeliness of loading of product at plant

Condition of packaging on delivery

BALCO - Improvement AreasBALCO - Improvement Areas


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RESEARCH METHODOLOGYRESEARCH METHODOLOGY

The general methodology adopted for the project was a survey basedapproach where an attempt was made to gather relevant informationand feedback from the customers.

The objectives of the study were formulated. They have been outlined

in the previous page.

Secondary data was collected from official manuals, journals, metalbulletin and company website.

The data collected were presented in the form of bar graph, pie chart, linegraphs and other graphs. They were processed and analysed and theresults were interpreted.


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LOGISTICSLOGISTICS

FUNCTIONS OF LOGISTICS:

Purchasing /Procurement

Transportation

Material handling

Packaging


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Shipment

Check the available stock

Transport placement

Gross wt. of truck

Loading of placedtransport

Dispatch plan by marketingto logistics

ogistics process


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Shift timing

Drivers mistake

Weight bridge

Problem at loading site:

Problem, which is related to finished product,:

Other product loading:

PROBLEMS:PROBLEMS:


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SUGGESTION:

One concern person from the logistic department associate with the securityoffice at get with well-defined program which help to minimize the truckturnaround time

Increase the size of working space is warehouse.

Another gate at plant 1 & 2 helps to minimize the truck turnaround time.

Increase the size of warehouse.

Follow-up for each truck.

Weight Bridge in front of logistics at plant.

Another gate at plant 1& 2. Coordination and cooperation among eachdepartment


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MARKET SHARE

Marketing functions have been centralized at Korba for bettercustomer service.

Sales through Consignment agents have been stopped tomaximise direct sale to actual customers.

Marketing policy has been redefined to make the documentsimple, better debtor management and bringing more clarityon discount structure.

Central sales tax has been reduced from 4% to 2% thusincreasing the Ex- factory sales.

FINANCEFINANCE


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Production capacity is increasing year by year.

BALCOs market share is growing rapidly.

Domestic supply and export will be doubled in future.

Brownfield project double its productivity.

Availability of bauxite ores, coal mines in abundance.

Sufficient water resource available.

Wire rods segment is most preferrable in BALCO.

Old customer are dealing with BALCO mainly because of good brandimage.

FINDINGSFINDINGS


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BALCO needs to develop its customer relationship management (CRM). Though thecustomers are satisfied, there is scope for improvement in the relationship part.

Customers are not highly satisfied when it comes to contacting BALCO to register acomplaint. An online customer complaint section can be included in the officialwebsite of BALCO and a dedicated operator for quick resolution of complaints.

BALCO can have better evaluation of the customer satisfactions by using the database

of complaints so that organization could better align its products and services to meetcustomer expectations.

The knowledge base mentioned above could be integrated with all other functions and

process of the company with the help of a strong IT framework. This could help in

taking care of customer needs and expectations at all functional levels.BALCO should respond to customer complaints quickly which will improve customer

loyalty. A speedy response can add 25% to customer loyalty.

SUGGESTIONSSUGGESTIONS


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final project balco

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