Assignment of Statistics Gangajal Water Purifier

Submitted by Siddhartha Tiwari

Subject Statistics

Batch Feb 2011-2013

ABSTRACT
Statisticians have devised many tools for application and these are available to be utilized for general business

Improvement and industrial problem solving this paper we look at some ideas for implementation of statistical methods in business and industry.

IMPLEMENTATION OF STATISTICS IN BUSINESS

INTRODUCTION

GANGAJAL Industries was established in june 2010 through the purchase of the assets of Commercial water Systems, Inc. CWSI was an under - capitalized, cash flow-starved DI exchange tank service provider.

START UP SUMMARY

The chart and table below summarize the start-up requirements for GANGAJAL Ind.

Start-up Requirements

Start-up Expenses Legal Stationery etc. Brochures Consultants Insurance Rent $10,000 $850 $6,500 $5,000 $0 $0 $0

Research and Development Expensed Equipment Other Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirements $124,223 $10,000 $90,000 $220,000 $444,223 $466,573 $0 $0 $22,350

COMPANY LOCATIONS AND FACILITIES

The facilities are located in a rented building on an industrial estate in Sultanpur, U.P. A description of the technology involved in the production can be found in section 3.5 (Technology). The fallowing is description of the production layout.City water is fed into the building and goes directly to a carbon filter tank to remove organic materials and chlorine. A centrifugal pump is installed, in the unlikely event that city water pressure falls below 40 pounds per square inch (psi). A hot water boiler is provided to supply hot water (100 degrees F) from part of the incoming city water. This water is needed for anion treatment due to the specific gravity of

the caustic material. The heated water then passes through a cation and an anion filter tank. The deionized hot water goes to the caustic tank where it mixes with the caustic material used to regenerate at the anion pad. Part of the unheated incoming city water is deionized by passage through similar cation and anion tanks. These tanks, as well as the tanks deionizing the heated in-coming water, are regenerated automatically at night when production is shut down. Water, not H20 Industries, is used at the spent tank staging area to empty the incoming tanks into the separation cones, and more water (H20 Industries) goes to the cation regeneration pad for use in adduction as well as flushing of the regenerate. The rinse water, as well as the acid and caustic solutions, now pass into an 8,000-gallon blue tank where, with the help of compressed air for mixing, neutralization takes place to obtain the allowed Ph level. 500-gallon neutralization tank and a 250-gallon polishing tank are provided prior to disposal of the waste water into the city sewer system.

PRODUCTS AND SERVICES

The company is in the water purification business. GANGAJAL Industries is engaged in a specific branch of this business called "Service deionization." Within this branch, the company plans to emphasize a further service specialization known as "segregated regeneration," as opposed to "bulk regeneration." This concept is explained in the following sections.

MARKET ANALYSIS SUMMARY

The chart and table below summarize the total market potential for the DI exchange services in Sultanpur U.P.

SALES

FINANCIAL PLAN
The following table and chart show the Monthly Units and Monthly Revenue Break-even calculations based on the Average Per-Unit Revenue, Average Per-Unit Variable Costs and the Estimated Monthly Fixed Costs, as drawn from the other financial tables in this plan.

MARKETING STRATEGY
GANGAJAL Industries marketing strategy will be to execute and communicate its value proposition of service and market segmentation advantage in providing segregated regeneration of customers' resin.

DISTRIBUTION STRATEGY
Wherever H20 Industries cannot economically sell directly, due to distance or quantities, it will utilize a network of water service companies. These companies will be carefully chosen for their quality of service. An arrangement will be set up whereby the distributor will offer DI exchange service along with its other water services. The installations can easily be handled by them. They would tag the tanks and return and pick up from the H20 Industries plant. Being able to offer this service increases the image of the local water service company. It fosters a feeling a one-stop shopping. A 33% discount off the retail price should be adequate to satisfy the distributors.

PRICING STRATEGY

In line with the conclusions drawn in the positioning statements, GANGAJAL Industries can charge a higher price for its segregated regenerated resin. There is virtually no competition for this product in the Sultanpur U.P. market. Charging $63 per cubic foot (mixed bed), as used in the sales projections, is more than a 65% increase over the price for US Filter's bulk resin price for mixed bed.GANGAJAL Industries is currently successfully charging in excess of $70 for this product. It is essential that H20 Industries place a premium price consistent with its superior product. Wholesale prices have been established to encourage the quick formation of a dealership network. Dealers are afforded a 33% discount.

SALES STRATEGY

The sales strategy is to concentrate on that segment of the market most easily captured by the following sales feature: segregated regeneration of portable resin. In addition, the fastest way to reach the sales goal for the first several years is by actively working to develop a dealership network for GANGAJAL Industries.