“SUMMER TRAINING REPORT”

“A STUDY ON PRODUCTION PROCESS AT DASH”

Submitted in partial fulfilment for the Award of the Degree of bachelor in Business
Administration 2016-2019

Submitted to : Submitted by:

Dr Ravikant Swami Ayan Lamba

Enrolment No. 35351101716

DELHI METROPOLITIAN EDUCATION

(Affiliated to Guru Gobind Singh Indraprastha University)

B-12, Sector-62, Noida, 201301

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CERTIFICATE

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 DECLARATION

1. I, Ayan Lamba of BBA Batch (2016-19) of DME Management School, hereby declare that the
Summer Training Report entitled A STUDY OF PRODUCTION PROCESS AT DASH is an
original work and the same has not been submitted to any other University/Organization for the
award of any other degree.

2. A presentation of this Training Report was made on _________ and the suggestions as
approved by the mentor & peers have been duly incorporated.

Signature of the candidate Presentation In charge

(Mentor)

Countersigned

Head, DME Management School

Seal
SEAL

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 ACKNOWLEDGEMENT

Project work is never the accomplishment of an individual rather it is an amalgamation of the

efforts, ideas and co-operation of a number of entities.

It is my privilege to express my gratitude and respect to those who guided and inspired me in the
completion of this dissertation.

I would like to thank Guru Gobind Singh Indraprastha University for giving an opportunity to
work on a valuable project.

I wish to acknowledge my sincere gratitude and indebtedness to my project Mr.Ashok Kachru

who is the director of the company for valuable guidance and constructive suggestions in the
preparation of dissertation. Her sincere advices, encouragement and helpful attitude have been a
constant source of inspiration for me. I would also like to thank my internal guide Dr.Ravikant
Swami without whose constant support and remarks, I would not have been able to improve and
correct myself time to time.

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 CONTENTS
Chapter no. Title Page No.

1 1.1- Introduction to the topic

1.2- Introduction of the company
2 Objective of the study

3 3.1- Research Methodology

3.2 – Source of data

3.3 – Tools used in the analysis

4 Data representation

5 Analysis & Interpretation

Recommendations & suggestions

7 Limitations of the study

Bibliography

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INTRODUCTION

Production is a process of combining various material inputs and immaterial inputs (plans, know-
how) in order to make something for consumption (the output). It is the act of creating output, a
good or service which has value and contributes to the utility of individuals.

Economic well-being is created in a production process, meaning all economic activities that aim
directly or indirectly to satisfy human wants and needs. The degree to which the needs are
satisfied is often accepted as a measure of economic well-being. In production there are two
features which explain increasing economic well-being. They are improving quality-price-ratio
of goods and services and increasing incomes from growing and more efficient market
production.

The most important forms of production are:

 Market production
 Public production
 Household production

In order to understand the origin of the economic well-being, we must understand these three
production processes. All of them produce commodities which have value and contribute to well-
being of individuals.

The satisfaction of needs originates from the use of the commodities which are produced. The
need satisfaction increases when the quality-price-ratio of the commodities improves and more
satisfaction is achieved at less cost. Improving the quality-price-ratio of commodities is to a
producer an essential way to improve the competitiveness of products but this kind of gains
distributed to customers cannot be measured with production data. Improving the
competitiveness of products means often to the producer lower product prices and therefore
losses in incomes which are to compensated with the growth of sales volume.

Economic well-being also increases due to the growth of incomes that are gained from the
growing and more efficient market production. Market production is the only production form

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which creates and distributes incomes to stakeholders. Public production and household
production are financed by the incomes generated in market production. Thus market production
has a double role in creating well-being, i.e. the role of producing goods and services and the role
of creating income. Because of this double role market production is the “primus motor” of
economic well-being and therefore here under review

As a source of economic well-being

In principle there are two main activities in an economy, production and consumption. Similarly
there are two kinds of actors, producers and consumers. Well-being is made possible by efficient
production and by the interaction between producers and consumers. In the interaction,
consumers can be identified in two roles both of which generate well-being. Consumers can be
both customers of the producers and suppliers to the producers. The customers’ well-being arises
from the commodities they are buying and the suppliers’ well-being is related to the income they
receive as compensation for the production inputs they have delivered to the producers.

Stakeholders of production

Stakeholders of production are persons, groups or organizations with an interest in a producing

company. Economic well-being originates in efficient production and it is distributed through the
interaction between the company’s stakeholders. The stakeholders of companies are economic
actors which have an economic interest in a company. Based on the similarities of their interests,
stakeholders can be classified into three groups in order to differentiate their interests and mutual
relations. The three groups are as follows:

Interactive contributions of a company’s stakeholders

 Customers
 Suppliers
 Producers.

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The interests of these stakeholders and their relations to companies are described briefly below.
Our purpose is to establish a framework for further analysis.

Customers

The customers of a company are typically consumers, other market producers or producers in the
public sector. Each of them has their individual production functions. Due to competition, the
price-quality-ratios of commodities tend to improve and this brings the benefits of better
productivity to customers. Customers get more for less. In households and the public sector this
means that more need satisfaction is achieved at less cost. For this reason the productivity of
customers can increase over time even though their incomes remain unchanged.

Suppliers

The suppliers of companies are typically producers of materials, energy, capital, and services.
They all have their individual production functions. The changes in prices or qualities of
supplied commodities have an effect on both actors’ (company and suppliers) production
functions. We come to the conclusion that the production functions of the company and its
suppliers are in a state of continuous change.

Producer community

The incomes are generated for those participating in production, i.e., the labour force, society
and owners. These stakeholders are referred to here as producer communities or, in shorter form,
as producers. The producer communities have a common interest in maximizing their incomes.
These parties that contribute to production receive increased incomes from the growing and
developing production.

The well-being gained through commodities stems from the price-quality relations of the
commodities. Due to competition and development in the market, the price-quality relations of
commodities tend to improve over time. Typically the quality of a commodity goes up and the
price goes down over time. This development favorably affects the production functions of
customers. Customers get more for less. Consumer customers get more satisfaction at less cost.
This type of well-being generation can only partially be calculated from the production data. The

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situation is presented in this study. The producer community (labour force, society, and owners)
earns income as compensation for the inputs they have delivered to the production. When the
production grows and becomes more efficient, the income tends to increase. In production this
brings about an increased ability to pay salaries, taxes and profits. The growth of production and
improved productivity generate additional income for the producing community. Similarly the
high income level achieved in the community is a result of the high volume of production and its
good performance. This type of well-being generation – as mentioned earlier - can be reliably
calculated from the production data.

Main processes of a producing company

A producing company can be divided into sub-processes in different ways; yet, the following
five are identified as main processes, each with a logic, objectives, theory and key figures of its
own. It is important to examine each of them individually, yet, as a part of the whole, in order to
be able to measure and understand them. The main processes of a company are as follows:

Main processes of a producing company

1. real process.
2. income distribution process
3. production process.
4. monetary process.
5. market value process.

Production output is created in the real process, gains of production are distributed in the income
distribution process and these two processes constitute the production process. The production
process and its sub-processes, the real process and income distribution process occur
simultaneously, and only the production process is identifiable and measurable by the traditional
accounting practices. The real process and income distribution process can be identified and
measured by extra calculation, and this is why they need to be analyzed separately in order to
understand the logic of production and its performance.

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Real process generates the production output from input, and it can be described by means of the
production function. It refers to a series of events in production in which production inputs of
different quality and quantity are combined into products of different quality and quantity.
Products can be physical goods, immaterial services and most often combinations of both. The
characteristics created into the product by the producer imply surplus value to the consumer, and
on the basis of the market price this value is shared by the consumer and the producer in the
marketplace. This is the mechanism through which surplus value originates to the consumer and
the producer likewise. Surplus values to customers cannot be measured from any production
data. Instead the surplus value to a producer can be measured. It can be expressed both in terms
of nominal and real values. The real surplus value to the producer is an outcome of the real
process, real income, and measured proportionally it means productivity.

The concept “real process” in the meaning quantitative structure of production process was
introduced in Finnish management accounting in 1960s. Since then it has been a cornerstone in
the Finnish management accounting theory.

Income distribution process of the production refers to a series of events in which the unit prices
of constant-quality products and inputs alter causing a change in income distribution among
those participating in the exchange. The magnitude of the change in income distribution is
directly proportionate to the change in prices of the output and inputs and to their quantities.
Productivity gains are distributed, for example, to customers as lower product sales prices or to
staff as higher income pay.

The production process consists of the real process and the income distribution process. A result
and a criterion of success of the owner is profitability. The profitability of production is the share
of the real process result the owner has been able to keep to himself in the income distribution
process. Factors describing the production process are the components of profitability, i.e.,
returns and costs. They differ from the factors of the real process in that the components of
profitability are given at nominal prices whereas in the real process the factors are at periodically
fixed prices.

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Monetary process refers to events related to financing the business. Market value process refers
to a series of events in which investors determine the market value of the company in the
investment markets.

Production growth and performance

Economic growth is often defined as a production increase of an output of a production process.

It is usually expressed as a growth percentage depicting growth of the real production output.
The real output is the real value of products produced in a production process and when we
subtract the real input from the real output we get the real income. The real output and the real
income are generated by the real process of production from the real inputs.

The real process can be described by means of the production function. The production function
is a graphical or mathematical expression showing the relationship between the inputs used in
production and the output achieved. Both graphical and mathematical expressions are presented
and demonstrated. The production function is a simple description of the mechanism of income
generation in production process. It consists of two components. These components are a change
in production input and a change in productivity.

Components of economic growth

The figure illustrates an income generation process (exaggerated for clarity). The Value T2
(value at time 2) represents the growth in output from Value T1 (value at time 1). Each time of
measurement has its own graph of the production function for that time (the straight lines). The
output measured at time 2 is greater than the output measured at time one for both of the
components of growth: an increase of inputs and an increase of productivity. The portion of
growth caused by the increase in inputs is shown on line 1 and does not change the relation
between inputs and outputs. The portion of growth caused by an increase in productivity is
shown on line 2 with a steeper slope. So increased productivity represents greater output per unit
of input.

The growth of production output does not reveal anything about the performance of the
production process. The performance of production measures production’s ability to generate
income. Because the income from production is generated in the real process, we call it the real

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income. Similarly, as the production function is an expression of the real process, we could also
call it “income generated by the production function”.

The real income generation follows the logic of the production function. Two components can
also be distinguished in the income change: the income growth caused by an increase in
production input (production volume) and the income growth caused by an increase in
productivity. The income growth caused by increased production volume is determined by
moving along the production function graph. The income growth corresponding to a shift of the
production function is generated by the increase in productivity. The change of real income so
signifies a move from the point 1 to the point 2 on the production function (above). When we
want to maximize the production performance we have to maximize the income generated by the
production function.

The sources of productivity growth and production volume growth are explained as follows.
Productivity growth is seen as the key economic indicator of innovation. The successful
introduction of new products and new or altered processes, organization structures, systems, and
business models generates growth of output that exceeds the growth of inputs. This results in
growth in productivity or output per unit of input. Income growth can also take place without
innovation through replication of established technologies. With only replication and without
innovation, output will increase in proportion to inputs. (Jorgenson et al. 2014,2) This is the case
of income growth through production volume growth.

In the case of a single production process (described above) the output is defined as an economic
value of products and services produced in the process. When we want to examine an entity of
many production processes we have to sum up the value-added created in the single processes.
This is done in order to avoid the double accounting of intermediate inputs. Value-added is
obtained by subtracting the intermediate inputs from the outputs. The most well-known and used
measure of value-added is the GDP (Gross Domestic Product). It is widely used as a measure of
the economic growth of nations and industries.

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Absolute (total) and average income

The production performance can be measured as an average or an absolute income. Expressing

performance both in average (avg.) and absolute (abs.) quantities is helpful for understanding the
welfare effects of production. For measurement of the average production performance, we use
the known productivity ratio

Real output / Real input.

The absolute income of performance is obtained by subtracting the real input from the real
output as follows:

Real income (abs.) = Real output – Real input

The growth of the real income is the increase of the economic value which can be distributed
between the production stakeholders. With the aid of the production model we can perform the
average and absolute accounting in one calculation. Maximizing production performance
requires using the absolute measure, i.e. the real income and its derivatives as a criterion of
production performance.

Maximizing productivity also leads to the phenomenon called "jobless growth" This refers to
economic growth as a result of productivity growth but without creation of new jobs and new
incomes from them. A practical example illustrates the case. When a jobless person obtains a job
in market production we may assume it is a low productivity job. As a result, average
productivity decreases but the real income per capita increases. Furthermore, the well-being of
the society also grows. This example reveals the difficulty to interpret the total productivity
change correctly. The combination of volume increase and total productivity decrease leads in
this case to the improved performance because we are on the “diminishing returns” area of the
production function. If we are on the part of “increasing returns” on the production function, the
combination of production volume increase and total productivity increase leads to improved
production performance. Unfortunately we do not know in practice on which part of the
production function we are. Therefore, a correct interpretation of a performance change is
obtained only by measuring the real income change.

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Production models

A production model is a numerical description of the production process and is based on the
prices and the quantities of inputs and outputs. There are two main approaches to operationalize
the concept of production function. We can use mathematical formulae, which are typically used
in macroeconomics (in growth accounting) or arithmetical models, which are typically used in
microeconomics and management accounting. We do not present the former approach here but
refer to the survey “Growth accounting”

We use here arithmetical models because they are like the models of management accounting,
illustrative and easily understood and applied in practice. Furthermore, they are integrated to
management accounting, which is a practical advantage. A major advantage of the arithmetical
model is its capability to depict production function as a part of production process.
Consequently, production function can be understood, measured, and examined as a part of
production process.

There are different production models according to different interests. Here we use a production
income model and a production analysis model in order to demonstrate production function as a
phenomenon and a measurable quantity.

Production income model

Profitability of production measured by surplus value .

The scale of success run by a going concern is manifold, and there are no criteria that might be
universally applicable to success. Nevertheless, there is one criterion by which we can generalise
the rate of success in production. This criterion is the ability to produce surplus value. As a
criterion of profitability, surplus value refers to the difference between returns and costs, taking
into consideration the costs of equity in addition to the costs included in the profit and loss
statement as usual. Surplus value indicates that the output has more value than the sacrifice made
for it, in other words, the output value is higher than the value (production costs) of the used
inputs. If the surplus value is positive, the owner’s profit expectation has been surpassed.

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The table presents a surplus value calculation. We call this set of production data a basic
example and we use the data through the article in illustrative production models. The basic
example is a simplified profitability calculation used for illustration and modelling. Even as
reduced, it comprises all phenomena of a real measuring situation and most importantly the
change in the output-input mix between two periods. Hence, the basic example works as an
illustrative “scale model” of production without any features of a real measuring situation being
lost. In practice, there may be hundreds of products and inputs but the logic of measuring does
not differ from that presented in the basic example.

In this context we define the quality requirements for the production data used in productivity
accounting. The most important criterion of good measurement is the homogenous quality of the
measurement object. If the object is not homogenous, then the measurement result may include
changes in both quantity and quality but their respective shares will remain unclear. In
productivity accounting this criterion requires that every item of output and input must appear in
accounting as being homogenous. In other words, the inputs and the outputs are not allowed to
be aggregated in measuring and accounting. If they are aggregated, they are no longer
homogenous and hence the measurement results may be biased.

Both the absolute and relative surplus value have been calculated in the example. Absolute value
is the difference of the output and input values and the relative value is their relation,
respectively. The surplus value calculation in the example is at a nominal price, calculated at the
market price of each period.

Production analysis model

A model used here is a typical production analysis model by help of which it is possible to
calculate the outcome of the real process, income distribution process and production process.
The starting point is a profitability calculation using surplus value as a criterion of profitability.
The surplus value calculation is the only valid measure for understanding the connection
between profitability and productivity or understanding the connection between real process and
production process. A valid measurement of total productivity necessitates considering all
production inputs, and the surplus value calculation is the only calculation to conform to the
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requirement. If we omit an input in productivity or income accounting, this means that the
omitted input can be used unlimitedly in production without any cost impact on accounting
results.

Accounting and interpreting

The process of calculating is best understood by applying the term ceteris paribus, i.e. "all other
things being the same," stating that at a time only the impact of one changing factor be
introduced to the phenomenon being examined. Therefore, the calculation can be presented as a
process advancing step by step. First, the impacts of the income distribution process are
calculated, and then, the impacts of the real process on the profitability of the production.

The first step of the calculation is to separate the impacts of the real process and the income
distribution process, respectively, from the change in profitability (285.12 – 266.00 = 19.12).
This takes place by simply creating one auxiliary column (4) in which a surplus value calculation
is compiled using the quantities of Period 1 and the prices of Period 2. In the resulting
profitability calculation, Columns 3 and 4 depict the impact of a change in income distribution
process on the profitability and in Columns 4 and 7 the impact of a change in real process on the
profitability.

The accounting results are easily interpreted and understood. We see that the real income has
increased by 58.12 units from which 41.12 units come from the increase of productivity growth
and the rest 17.00 units come from the production volume growth. The total increase of real
income (58.12) is distributed to the stakeholders of production, in this case 39.00 units to the
customers and to the suppliers of inputs and the rest 19.12 units to the owners.

Here we can make an important conclusion. Income formation of production is always a balance
between income generation and income distribution. The income change created in a real process
(i.e. by production function) is always distributed to the stakeholders as economic values within
the review period. Accordingly, the changes in real income and income distribution are always
equal in terms of economic value.

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Based on the accounted changes of productivity and production volume values we can explicitly
conclude on which part of the production function the production is. The rules of interpretations
are the following:

The production is on the part of “increasing returns” on the production function, when:

productivity and production volume increase or

productivity and production volume decrease

The production is on the part of “diminishing returns” on the production function, when

productivity decreases and volume increases or

productivity increases and volume decreases.

In the basic example the combination of volume growth (+17.00) and productivity growth
(+41.12) reports explicitly that the production is on the part of “increasing returns” on the
production function (Saari 2006 a, 138–144).

Another production model also gives details of the income distribution. Because the accounting
techniques of the two models are different, they give differing, although complementary,
analytical information. The accounting results are, however, identical. We do not present the
model here in detail but we only use its detailed data on income distribution, when the objective
functions are formulated in the next section.

Objective functions

An efficient way to improve the understanding of production performance is to formulate

different objective functions according to the objectives of the different interest groups.
Formulating the objective function necessitates defining the variable to be maximized (or
minimized). After that other variables are considered as constraints or free variables. The most
familiar objective function is profit maximization which is also included in this case. Profit

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maximization is an objective function that stems from the owner’s interest and all other variables
are constraints in relation to maximizing of profits in the organization.

Summary of objective function formulations

The procedure for formulating objective functions

The procedure for formulating different objective functions, in terms of the production model, is
introduced next. In the income formation from production the following objective functions can
be identified:

Maximizing the real income

Maximizing the producer income

Maximizing the owner income.

These cases are illustrated using the numbers from the basic example. The following symbols are
used in the presentation: The equal sign (=) signifies the starting point of the computation or the
result of computing and the plus or minus sign (+ / -) signifies a variable that is to be added or
subtracted from the function. A producer means here the producer community, i.e. labour force,
society and owners.

Objective function formulations can be expressed in a single calculation which concisely

illustrates the logic of the income generation, the income distribution and the variables to be
maximized.

The calculation resembles an income statement starting with the income generation and ending
with the income distribution. The income generation and the distribution are always in balance
so that their amounts are equal. In this case it is 58.12 units. The income which has been
generated in the real process is distributed to the stakeholders during the same period. There are
three variables which can be maximized. They are the real income, the producer income and the
owner income. Producer income and owner income are practical quantities because they are
addable quantities and they can be computed quite easily. Real income is normally not an
addable quantity and in many cases it is difficult to calculate.

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The dual approach for the formulation

Here we have to add that the change of real income can also be computed from the changes in
income distribution. We have to identify the unit price changes of outputs and inputs and
calculate their profit impacts (i.e. unit price change x quantity). The change of real income is the
sum of these profit impacts and the change of owner income. This approach is called the dual
approach because the framework is seen in terms of prices instead of quantities (ONS 3, 23).

The dual approach has been recognized in growth accounting for long but its interpretation has
remained unclear. The following question has remained unanswered: “Quantity based estimates
of the residual are interpreted as a shift in the production function, but what is the interpretation
of the price-based growth estimates. We have demonstrated above that the real income change is
achieved by quantitative changes in production and the income distribution change to the
stakeholders is its dual. In this case the duality means that the same accounting result is obtained
by accounting the change of the total income generation (real income) and by accounting the
change of the total income distribution.

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Company Profile

Established in the year 2014, Laxmi Tricycle Industry is a highly regarded supplier, trader and
manufacturer of a series of attractive vehicles and toys for kids. Located at Delhi (India), our
products are widely appreciated by industrial experts and our own clients spread across the
country. We are offering Scooter, Cars, Scooter , Swing, Baby Walker, Walker, Tricycle, etc. All
these products are designed and developed by our professed team members, who are well versed
with industrial norms and know how to make the most of available resources. In addition to this,
use of premium quality materials under our well-developed manufacturing units allows us to
provide products as per set industrial standards and prove our industrial excellence.

Company Facts

Nature of Business Manufacturer, Supplier & Trader

Year of Establishment 2014

No. of Production Units 1

Production Type Automatic & Semi-Automatic

No. of Employees 20

Bankers State Bank of India

Original Equipment Manufacturer Yes

Warehousing Facility Yes

Our Products

 Baby Products  Swing

 Cars  Tricycle
 Walker  Tricycle Spare Parts
 Baby Walker
 Scooter o Wheels

 Scooty o Pedals

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Celebrating childhood everyday with our collection of colorful swings, tricycles and other
products..

ABOUT THEM

Established in the year 2014, Laxmi Tricycle Industry is a reputed manufacturer, supplier and
trader of attractive toys and vehicles for kids. Based at Delhi (India), we have become a synonym
for quality by delivering products in sync with industrial quality parameters. Specializing in
designing products as per young minds, we entered the business with an aim to become the most
sought after name to avail different kinds of baby products including swings and toys. Our
offered product list encompasses Tricycle, Walker, Tricycle Spare Parts, Baby Walker, Swing,
Scooty, Baby Tricycle, Cars, Scooter, etc. We manufacture all these products by using hi-end
equipment in the manufacturing process. Using innovative ideas to create fun toys and swings,
we come across as a trusted brand to avail baby products at most affordable prices. We use high
grade materials so as to ensure that all offered goods are wear and tear resistant, durable and give
long service life. Use of bright colors and fresh ideas makes the products appear kids-friendly
that becomes a prime reason for our likeness among our industrial contemporaries.

What Makes Us Different?

We offer excellent plastic molded products that are highly reliable, nontoxic, colorful and
absolutely safe. Some aspects that make us stand apart from regular manufacturers in the
industry are as follows:

 Our principle of optimum quality, huge collection of products.

 A promise to deliver safe products to give more fun.

 Consistent innovation to deliver new products in most affordable prices.

 Touching lives everywhere.

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Quality

With a firm believe in delivering high quality through our products, we have hired quality
controllers, who monitor all manufacturing process to give maximum satisfaction to our
esteemed clients. In addition to this, use of high-grade plastic, LLDP, HDPE, PP, ABS and other
raw materials allows us to provide our valued clients with products in compliance with set
industrial quality norms and prove excellence in our domain. In addition to this, manufacturing
of all goods by using hi-end manufacturing machines gives perfect finishing, toxicity and
flexibility to the products.

Product Range

We are engaged in designing world-class swings, cars and other products for kids. Find our
complete product series from following list.

 Baby Products  Swing

 Cars  Tricycle Spare Parts

 Walker  Tricycle Spare Parts

 Baby Tricycle o Wheels

 Baby Walker o Pedals

 Scooter o Handles

 Scooty

Core Values

With ethical core values, we strive to become the most sought-after brand to avail products with
best value for money. Leadership, customer centric approach to give optimum satisfaction to our
prestigious clients, continuous innovation through our offered products and our international

22
perspective allow us to become a worldwide entity. In addition to this, our integrity towards
effectively meeting the customer requirements proves to be helpful in treating everyone at the
workplace with total candidness.

R&D

We have an innovative R&D team that has experts, who are not only responsible for offering
innovative products but also in offering fresh design through the use of advance machinery under
our production units.
Our Team Comprises

 Designing experts

 Technical experts

 Machine operators

 Procurement agents

 R&D experts

 Quality controllers

 Sales & marketing professionals

 Warehousing professionals

Due to the combined efforts of all these professionals, we are successfully carrying out all
actions in an uninterrupted manner. These professionals are able to develop products as per
clients' specifications to give them optimum satisfaction by making full use of available
resources. Also, use of advance technology in the manufacturing process enables our
professionals to deliver products as per set quality standards.

23
One of the leading Manufacturer of
kid's vehicles and various toys.

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25
 CHAPTER 2

OBJECTIVES

 The objective of the study is to learn about the functioning of different

departments particularly production (Moulding), fitting, finishing and paint
department.
 To analyse the swot of DASH SUPER

26
 CHAPTER – 3

3.1 RESEARCH METHODOLOGY

A research design is the set of methods and procedures used in collecting and analyzing
measures of the variables specified in the research problem research. The design of a study
defines the study type and sub-type. There are three methods of Research Design:

EXPLORATORY RESEARCH

Exploratory Research is research conducted for a problem that has not been studied more clearly,
establishes priorities, develops operational definitions and improve the final research design.
Exploratory research helps determine the best research design, data-collection method and
selection of subjects.

DESCRIPTIVE RESEARCH

Descriptive research is used to describe characteristics of a population or phenomenon being studied. It

does not answer questions about how/when/why the characteristics occurred. Rather it addresses the
"what" question. The characteristics used to describe the situation or population are usually some kind of
categorical scheme also known as descriptive categories.

DATA COLLECTION INSTRUMENT

 The study is a based-on analysis and interpretation of data collected through reports. One
interview was designed to collect details about best practices adopted by the company.

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3.2 SOURCES OF DATA

Primary Sources

 Personal Interview from various departments

 Close observation during the work
 Internal data from various departments

Secondary Sources

 The data are collected from the annual reports maintained by the company for the past
five years viz., 2013-2017
 Data is collected from the company’s website.

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 CHAPTER–5

DATA REPRESENTATION

S.W.O.T ANALYSIS

5.1 MEANING

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By definition,

Strengths (S) and Weaknesses (W) are considered to be internal factors over which you have
some measure of control. Also, by definition, Opportunities (O) and Threats (T) are considered
to be external factors over which you have essentially no control.

SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position
of the business and its environment. Its key purpose is to identify the strategies that will create a
firm specific business model that will best align an organization’s resources and capabilities to
the requirements of the environment in which the firm operates.

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5.2 SWOT OF THE COMPANY

STRENGTHS

 Highly Skilled Workforce

 Service Innovation
 High Level of Customer Satisfaction
 Good Quality at lower cost
 Well known kids brand in India.

WEAKNESS

 Limited success due to low level of management

 Need more investment in new technologies
 Slow Production cycles
 Labour absenteeism
 Not advertising much

OPPORTUNITIES

 They can practice differentiated Pricing Strategy as they are old player in the market
 Growing need for physical activities in children.
 Parents are concerned about the threats on internet.

THREATS

 Rising New manufacturers in the industry

 Shortage of Skilled labour
 Growing Strength of new producers
 Rising pay level leads to pressure on profitability

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 CHAPTER 6

ANALYSIS & INTERPRETATION

FUNCTIONING OF DIFFERENT DEPARTMENTS:

PRODUCTION (MOLDING) DEPARTMENT

Plastic molding is the process of shaping plastic using a rigid frame or mold. The technique
allows for the creation of objects of all shapes and sizes with huge design flexibility for both
simple and highly complex designs. A popular manufacturing option, plastic molding techniques
are responsible for many car parts, containers, signs and other high-volume items.

Plastic Molding Techniques

The underlying concept of plastic molding is placing liquid polymer into a hollow mold so that
the polymer can take its shape, often with various ranges of pressure and heat required. There are
different plastic molding techniques available to accomplish this including rotational molding,
injection molding, blow molding, and compression molding to name just a few. Each technique
has its benefits and is best suited for the creation of specific items.

The History of Plastic Molding

The history of rotational molding began somewhere between 1940 and 1950 in the USA when
the process was developed for a small number of plastics. By the late 1950s, when the rotational
molding process was better understood, applications for other industries were developed
including road cones, marine buoys, and car armrests. A process was developed in Europe in the
early 1960s that enabled large hollow containers to be created in low density polyethylene
(LDPE) by rotating (or rocking) a mold on a chassis, houses open gas jets, through 30 degrees
which coated the inside of the mold with the polymer.

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The history of plastic injection molding

It has seen steady industry growth since its beginnings in the late 1800s. The technique has
evolved from the production of combs and buttons to major consumer, industrial, medical, and
aerospace products. In 1868, John Wesley Hyatt invented a way to make billiard balls by
injecting celluloid into a mold.

FITTING DEPARTMENT:

Fitting department has some sub departments in it and they are as follows:

 Tricycle fitting department

 Swing fitting department
 Magic car fitting department
 Paddle car fitting department
 Walker fitting department

 Tricycle fitting department

Raw material used to make tricycles were produced in molding department and many
other parts of tricycles like nuts and bolts were bought from the specified suppliers were
delivered to the tricycle fitting department and tricycles were fitted as per the orders of
the customers.

 Magic car fitting department

Raw material used to make magic car are also produced in molding department and the
other parts of magic car like stickers, nuts and bolts were bought from the specified
suppliers were delivered to the magic car fitting department and different model of cars
were fitted as per the orders of the customers.

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  Walker fitting department
In walker fitting department the products are taken from the supplier and the molding
department and also the speaker and horns are fitted to make them fancy.

 Swing fitting department

The swing department takes ropes and seats from the other departments and fit them with
the help of nuts and bolts.

FINISHING AND PAINT DEPARTMENT

The plastic parts of tricycles and cars are produced in the molding department and then delivered
to the finishing and paint department to give proper shape to the following product and then
these parts are painted and polished properly and according to the color of plastic.

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SWOT ANANLYSIS

STRENGTH

 Highly Skilled Workforce

The company is blessed with a very much skilled force which helps the company top
grow in the upper direction.

 Service Innovation
The services provided by the following company are innovative and unique also they
keep on adding new innovations in the work.

 High Level of Customer Satisfaction

The customers / clients are very much satisfied as the quality of service provided is very
good and satisfactory.

 Good Quality at lower cost

Dash provides best available quality at lower possible price.

 Well known kids brand in India.

The company has a strength of being popular in India.

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WEAKNESS

 Limited success due to low level of management

Dash doesn’t have good management and low number of professionals.

 Need more investment in new technologies

The company needs to improve its technology to cope up with the new era.

 Slow Production cycles

The production cycles are very low due to low level of production and low number of
labours.

 Not advertising much

The company doesn’t spend on advertisements but should spend to get success.

OPPORTUNITIES

 They can practice differentiated Pricing Strategy as they are old player in the
market
The company has an established market already and are famous for good quality and thus
can ask for higher prices in the market.

 Growing need for physical activities in children

Children these days are very lethargic and that happens to be the reason that parents want
some fun equipments with which children can do some physical work.

 Parents are concerned about the threats on internet

Children today are more attracted towards the internet and internet is not safe for children
in many senses thus parents want heir children to be busy with the other things.

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THREATS

 Rising New manufacturers in the industry

So many new manufacturers are growing in the market and can be threat to the company
in future.

 Shortage of Skilled labour

Labour is available but skilled labour is not there to work in the company

 Growing Strength of new producers

New producers are coming up with unique technologies which help them grow in the
market.

 Rising pay level leads to pressure on profitability

Increasing Inflation leads to demand of rising pay level which creates hindrance in the
profitability.

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 Chapter – 6

Recommendations & suggestions

6.1 Recommendation

1. Management must have free and effective communication policy to allow managers to
comment their views.
2. The company should improve its management.
3. Suppliers of raw material should be replaced or told to deliver on time.
4. Dash should keep the inventory managed properly.
5. Extra products should be produced for sudden situations.
6. Leadership needs to be improved.
7. Unions need to be stopped

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6.2 Suggestions

1. They can take help of the experts for better working of laborer.

2. Training and development activities should be used effectively for reducing attrition.

3. The company may have extra labor available if needed (in case of shortage)

4. Machinery substitute should available if needed.

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 CHAPTER 7

Limitations of the study

1. All the data was collected through secondary means of data collection ie; the data already
existed in the market. Secondary is general, vague, unreliable and inaccurate to reach to a
specific conclusion or result.

2. The project cannot be used for further reference and use in future as the information would get
out of date and old.

3. Less availability of time and money for the research work.

4. Lack of Scientific training in the methodology of researcher.
5. Difficulty of timely and adequate secretarial assistance.
6. Difficulty of timely published data.
7. Less expertise or skills in the researcher.

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 CHAPTER 8

BIBLIOGRAPHY

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