A

SUMMER INTERSHIP REPORT

ON

DEPARTMENT STUDY

AT

AARON INDUSTRIES LTD

Submitted By:

Miss. VERMA NISHA RITLAL(114),

Miss. GUPTA SALONI NAGENDRA(25)

Miss. RAI RANJANI SAROJ(69),

Miss. MISHRA ANSHIKA RAJESH(42),

Under The Guidance Of:

DR.SAGAR GAUR

Submitted To:

SDJ International Collage, Palsana, Surat

Affiliated To:

Veer Narmad South Gujarat University, Surat, Gujarat

JULY 2024

1
 AARON INDUSTRIES LTD

LOCTION: PLOT B, 65-66, RD NUMBER 4,UDHANA GIDC, UDHNA

UDHYOG NAGAR,UDHNA,SURAT,GUJARAT 394210

GMAIL: info@aaronindustries.net
WEBSITE: www.aaronindustries.net

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COLLAGE CERTIFICATE

3
COMPANY CERTIFICATE

4
 DECLARATION
I Hereby Declare that the Project Report Entitled in the partial fulfillment of Course
Curriculum of the degree of Bachelor Of Business Administration from SDJ international
Collage Palsana, Surat, Gujarat.

The Work which is present is a team project , Is a part of our project work and Authentic
to the best of our Knowledge Under the Supervision of our mentor Dr. Sagar Gaur.

ROLL NAME OF THE STUDENT SPID SIGNATURE

NO
114 VERMA NISHA RITILAL 2022056468

25 GUPTA SALONI NAGENDRA 2022056358

69 RAI RANJANI SAROJ 2022056415

42 MISHRA ANSHIKA RAJESH 2022056379

5
 ACKNOWLEDGEMENT
At this point, when we are about to finish our summer internship work, it is our privileged
opportunity to thank all those people for their contribution provided to this summer
internship report.

Firstly, we would like to thank our respected I/C Principal Dr. Sanjay Joshi, who always
work and think in the direction of betterment of the students and institute as well as
supporting us with all the necessary resources. He always motivates us to fulfill our dreams
and lead us in the direction of growth. We also thank Veer Narmad South Gujarat
University for providing us the platform to undertake such study.

We specially would like to thank ,MISS KAMINI RANA ( HR Manager) our guide at
company, who explained and guided us in such a way that we could get deep insights in the
real happenings in the companies. This project would not have completed without her
practical guidance.

We cannot forget the contribution of our project guide Dr. Sagar Gaur, without the
support of whom we would have never completed this report. His constant help, guidance
and continuo teaching have given us so many inputs on academic as well as non-academic
front.

Lastly, we would thank all the other persons directly or indirectly, who have supported us
in completing this report.

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 EXECUTIVE SUMMARY
As a part of curriculum, we have undergone internship in AARON INDUSTRIES LTD for
four weeks.

It becomes necessary for undergraduate to be well versed with both theoretical knowledge
and its practical application in real situation.

The internship training is an eye opener regarding the actual functioning of different
departments in an organization.

Also, inter departmental relationships and its significance thoroughly understood during
this period.

We studied the theoretical aspects of Management principles in the classroom. However,

here Aaron industries LTD .we could learn the application of that principles.

We learned how this principle are implemented in this organizational setting. It is aimed at
seeking information from various department, its history nature of business, mission,
policies, procedures, products, turnover and market share etc.

Organization study helped to know new method, technology used by the company. It
enhances the knowledge about the company and its competitors and technique strategies
adopted by them to beat their competitor.

Overall, it helped in knowing, learning and studying any organization closely.

There are different sub- divisions at Aaron industries LTD which mainly deal with
industrial relation, human resources development and public relation.

It was a great opportunity for us to undergo summer training and how company
coordinated its department and in providing timely and comfortable service to the public.

The support and the hands-on-experience during four weeks in the organization.

7
 INDEX

SR NO. CHAPTER NAME PAGENO.

1 GENERAL INFORMATION 09

2 PRODUCTION DEPARTMENT 13

3 MARKETING DEPARTMENT 27

4 FINANCE/ACCOUNTS DEPARTMENT 39

5 HUMAN RESOURCE DEPARTMENT 50

6 PURCHASE DEPARTMENT 57

7 SAFETY DEPARTMENT 79

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 AARON INDUSTRY
CHAPTER: 1

GENERAL INFORMATION
COMPANY’S INTRODUCTION

 Aaron industries ltd was incorporated in 2013 with the purpose of providing
excellent solution for the elevator industry and other connected industries. With the
vision to become a public limited company. Aaron made its entry in the elevator
industry and immediately spread its reach in pan India. Aaron industries limited in
2018 become first public ltd company in the elevator industries in SME and is listed
on NSE.
 Within a Short Spam, Aaron has changed the elevator by developing a large variety
of elevator cabin and auto door system, with designs that the industry has seldom
seen.
 Under the guidance and leadership of our board team, Aaron industry also entered
into stainless steel polishing industry with expanding its facility by four times and
developing a state of art unit with imported latest technology.

1.1 FOUNDER:-

Amar Chinubhai Doshi

[Chairman and managing director of the company]

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 1.2 LOCATION OF MILL:-

 PLOT B, 65-66, RD NUMBER 4,UDHANA GIDC, UDHNA UDHYOG

NAGAR,UDHNA,SURAT,GUJARAT 394210

1.3 Company’s Team Core Values

1] Result oriented smart work

Aaron believe that in today’s time, it is smart work that count and not just hard work.
They have an environment where they challenge to focus on the result and not on mere
action. It the results that count and not the hardworking hours.

2] unity

Aaron team believes that wonderful things can be achieved when individual come together
and work in unity.

3] continuous improvement in every sphere of activities

10
Aaron focusing on creating on environment where everyone seeks improvement in their
personal and professional life.

4] continuous employee growth

All employees in aaron given a proper platform to learn and improve his skill. New
training and educational activities are held to develop new skills and understandings.

1.4 BOARD OF DIRECTORS

1. MR. AMAR CHINUBHAI DOSHI

[Chairman & managing directors]

2. MR. KARAN AMAR DOSHI

[whole team director]

3. MR. MONISH AMARBHAI DOSHI

[Director & chief financial officer]

4. MRS. SHRUNGI KIRANBHAI DESAI

[Independent director]

5. MR. HETAL RUMENDRABHAI MEHTA

Board Committees

 Composition of Audit Committee:

 Mr. Pradeepkumar Sanmukhlal Choksi – Chairman & Member

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Mr.HetalRumendrabhaiMehta–Member
Mrs. Shrungi Kiranbhai Desai – Member

 Composition of Nomination and Remuneration Committee

 Mr. Pradeepkumar Sanmukhlal Choksi – Chairman & Member

Mr. Hetal Rumendrabhai Mehta – Member
Mrs. Shrungi Kiranbhai Desai – Member

 Composition of Stakeholder’s Relationship Committee

 Mrs. Shrungi Kiranbhai Desai – Chairperson & Member

Mr. Pradeepkumar Sanmukhlal Choksi – Member
Mr. Hetal Rumendrabhai Mehta – Member

 Composition of Corporate Social Responsibility Committee

 Mr. Monish Amar Doshi – Chairman & Member

Mr. Amar Chinubhai Doshi – Member
Mr. Karan Amar Doshi – Member
Mrs. Shrungi Kiranbhai Desai – Member

12
 CHAPTER-2

Production Department /

Processing department

 Plant location

Aaron industries Limited Elevator Manufacturer in Surat, Gujarat Plant located in

[Plot B, 65-66, Rd Number 4, Udhana GIDC, UdhanaUdhyog Nagar, Udhana, Surat,

Gujarat 394210]

 Plant Layout Used

In an elevator
manufacturing company, the
type of plant layout typically
used is a combination of
processes layout and product
layout and processes layout.
As it is also called hybrid
layout

Processes layout: This is

used for departments that
handle specific processes,
such as metal fabrication, machining, painting, and assembly. Each department is
13
arranged by function, allowing specialized equipment and workers to handle tasks
efficiently.

Product layout: This layout is used for the final assembly of the elevators. In this stage,
components and subassemblies produced in different departments are bought together on
an assembly line.

 Raw material used.

The manufacturing of an elevator involves a variety of

raw materials, each serving specific function to ensure
the elevator operates safely and efficiently.

1. Steel: There is two types of steel is used

 MS: which is mild steel [mild steel is alloyed
using carbon ]
 SS: it means stainless steel [Stainless steel has chromium as its alloying element.]

Steel is used for extensively for the framework, structural components, shafts and
reinforcement.

2.Stainless Steel: utilized for doors, panels, and other visible parts due to its
aesthetic appeal and corrosion resistance.

3. Aluminum: used for lightweight components such as some doors, frames, and
decorative elements.

4. Glass: Employed in modern designs for

elevator walls and doors, particularly in
panoramic or observation elevators.

5. Copper: Essential for electronic wiring,

control systems, and motor windings.

14
 6. Plastic and Composite Materials: Used for buttons, control panels, interior fixtures,
and other non-structural components.

7. Rubber: Utilized for seals, gaskets, and other components requiring flexibility and
durability.

8. Electronic Components: Such as microcontrollers, sensors, displays, and

control systems for the operation and safety features of the elevator.

9. Cables and Ropes: Made from steel or

synthetic fibers, used for lifting and supporting the
elevator car.

10. Concrete: Often used in the construction of

elevators shafts within buildings.

 Systems used and their sub types

In an elevator manufacturing company the system which is used to manufacture an

elevator is a fixed position layout.

 The following characteristics are common.

 The product remains in a single location for the duration of its assembly.
 Workers and equipment move around the product.
 This layout minimizes the need to move the product, reducing handling and
potential damage.
 It allows for greater customization and flexibility in assembly processes.

 Heavy Machineries Used

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 In an elevator manufacturing company, various types of heavy machinery are
used to handle the different stages of production.

 CNC machines ( Computer Numerical Control): used for precision

cutting, and machining of metal parts to create computers like gears, shafts, and
structural elements of the elevator.

 Press Brakes: Utilized for bending metal sheets to from the car frames and
other structural components.

 Laser cutting machines: Employed to cut metal sheets with high precision
for various parts of the elevator, including panels and brackets.

 Hydraulic presses: Used to form and shape metal parts under high pressure,
critical for components requiring significant strength and durability.

 Welding machines: Essential for joining metal parts together, creating string
and stable structure for the elevator frame and other components.

 Material handling Equipment: Forklifts, cranes and hoists for moving

heavy parts and assemblies around the manufacturing facility.

 Products and Services

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Aaron Industries Limited designs and manufactures elevators products. The company
offers elevators cabins doors, frem, header, and traction machines, as well as providers
electronic equipment, such as busbar chambers, cable tray, distribution boxes, and loom
switches. Aaron Industries serves customers in India.

Step by step process

 Cotting

The first process to manufacturing an elevator is Putting a prevention layer on steel to

protect the layer of steel from the moist environment or from humid climate.

 Grinding

The second step is grinding which means cutting the steel according to the need of shape
and size which is required and pre decided.

 Bending

After the grinding process the next step is Bending. In bending the material of steel is Bend
according to the shape and size.

 Washing

There is washing process, in this process the bended material is washed in a 10 chemical
tank. It took almost 2 hour to wash.

The name of chemical is given below

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 1. Ferroclean pickling bath
2. Water rinsing
3. Cleansol – powder Degreasing bath
4. Water rinsing
5. FerroliteDerusting Bath
6. Water rinsing
7. Comphose-ACT activating Bath
8. Comphos-001 Treatment
9. Water rinsing
10. Comphos-FRC passivation Bath

 Coloring

After the washing steps the next step is coloring

which took atleas 1:30 hour. Coloring gives
finishing and protect from humid climate

 Assembly

After this the assemble processes take place they assemble the part
of the components of elevator, like four side of elevator and bottom
base.

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 Customizing

After this they customize the product according to their demand

of the customers, like the bottom design of elevator, lighting,
mirror, actual mirror or steel mirror, types of doors, like one
way, two ways, three way, or four way door according to the
demand of the customers.

After this they assemble other part of the components like

header, sensor, motors, wheels, rubber, electronic components
etc.

 Quality Control and Testing

The next step is quality control testing

The method which is used in quality control testing is individual test, loading test,
safety performance etc.
The next step is packing, carefully package components to prevent damage during
transportation.

 Transportation and Installation

19
 All the product should be assemble on their actual location, and checking their
capacity with the safety measures.

 Maintenance and after-sales Service

And the last step is maintenance the after sales service.

 Material Handling Equipment Used

 Hoists:

Used for lifting heavy components such as elevator cars,

counterweights, and machinery

 Cranes: Used for maneuvering large components during installation or

maintenance.

Lifts: Aerial work platforms for accessing elevated areas safely.

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 Conveyor system: Used for transporting
materials and components within
manufacturing during installation or
maintenance.

 Conveyor:

Used for transporting materials and components within manufacturing facilities or

construction sites.

 Quality Control Technique:

To improve the safety performance and good working condition of the elevator
operation, realize the safe and reliable operation of the elevator, so as to avoid the
occurrence of accidents and ensure the comfortable and safe operation of the
elevator.

 Order Quantity:
Order quantity is a components, parts, or materials ordered at one time. The order
quantity should be determined based on factors such as demand forecasts, storage
capacity, and Economic order quantity.

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 Lead time:
Lead time can very on depending on factors such as supplier availability,
transportation logistics, and production timelines. It’s essential to accurately
estimate lead times to avoid stockouts and maintain smooth operation.

 On the job & off the job training to workers and supervisors

At on the job training, Atleast 4 to 5 days training given to the workers as well as
supervisors

 Name and addresses of plants if elsewhere situated

Aaron Industries LTD

[ 251/ B, Royal Industries Park, MotiParadi, Road, kosamba, Gujarat 394120

CHAPTER 03
22
 MARKETING DEPARTMENT

* List of product & service

Elevators come in various types and are designed to meet different needs and building

specifications. Here are some of the main types of elevators and their key features:

Traction Elevators:

Geared Traction Elevators: Use gears to drive the wheel that moves the ropes. They

are suitable for mid- to high-rise buildings, offering moderate speed and energy
efficiency.

Gearless Traction Elevators: The motor directly drives the wheel, allowing for higher

speeds and taller buildings. These are typically used in high-rise structures due to their

efficiency and smooth operation.

Hydraulic Elevators:

23
Operate using a hydraulic piston at the base. They are known for their smooth and
quiet ride,

making them ideal for low- to mid-rise buildings (up to 60 feet). These elevators are cost
effective but use more energy and have a limited travel speed and distance (TTI Group)

(Salzgitter Lifts) (Arizona Elevator Solutions).

Machine-Room-Less (MRL) Elevator

Do not require a separate machine room as the machinery is housed within the shaft.
MRL

elevators save space and are energy-efficient, making them popular in buildings with
space

constraints. They are suitable for mid-rise buildings (up to 250 feet) (TTI Group)
(Arizona Elevator Solutions).

Residential Elevators:

Designed specifically for home use, offering convenience and accessibility. They come in

various
styles to
match
home
interiors
and
include
models
like hydraulic, traction, and

pneumatic vacuum elevators (PVEs), which use air pressure for movement and require

minimal space (Home Elevators by PVE) (Salzgitter Lifts).

24
Dumbwaiters:

Small elevators used to transport goods between floors, commonly found in restaurants,

hotels, and hospitals. They provide a discreet and efficient way to move items like food,
laundry, or medical supplies (TTI Group).

* Service Elevators:

Housekeeping, and deliveries in buildings. They feature larger doors, durable flooring,
and are designed for functionality rather than aesthetics (TTI GBuilt to handle larger
and bulkier items, used for maintenance, roup).

Pneumatic Vacuum Elevators (PVEs):

25
Utilize a vacuum pressure system to move a small capsule through a transparent tube.
These elevators are space-saving, energy-efficient, and provide a modern look, making
them ideal for residential settings (Home Elevators by PVE).

* Number of customers / overseas channel

The number of customers Annually changed. But approxed number of customer is 700
to

800.Aaron Industries Limited is a Public Limited company striving for maximizing

safety in

the vertical traveling industry. With advanced technological infrastructure and a

dedicated

team of 100+ Employees, Aaron has created its unique benchmark with its products
and 800.Aaron Industries Limited is a Public Limited company striving for maximizing
safety in

the vertical traveling industry. With advanced technological infrastructure and a

dedicated

team of 100+ Employees, Aaron has created its unique benchmark with its products
and

26
innovative concepts.

6000+ Projects

Material provided on site

30+ Order

Executed Daily

1500+ Customer

Happy Customers

Widest Range

* Major competitors

The major competitor of Aaron industry is, The Wittur Group, with the operating
entity

Wittur Holding GmbH, is a worldwide leading producer and supplier of elevator

components.

Founded 1968 in Germany, the Group is today present with various subsidiaries In
Europe,

Asia and Latin America

* The elevator industry is highly competitive, with several major companies dominating

the global market. Here are some of the key competitors in the elevator industry:

* Otis Elevat: or Company; One of the oldest and largest elevator manufacturers

in the world, Otis is known for its innovation and extensive service network.

* Schindler Group: A Swiss company, Schindler is a leading global provider of

27
elevators, escalators, and moving walkways, with a strong focus on safety and
technology.

* KONE Corporation: Based in Finland, KONE is a significant player in the

elevator and escalator market, renowned for its energy-efficient solutions and advanced

technology.

* Thyssenkrupp Elevator (TK Elevator): A German multinational,

Thyssenkrupp offers a wide range of elevator solutions and has a strong presence in
both new

installations and maintenance services.

* Mitsubishi Electric: A part of the larger Mitsubishi conglomerate, this company

provides high-quality elevator and escalator systems with a reputation for reliability
and

innovation.

* Hitachi: Another Japanese giant, Hitachi produces elevators and escalators,

emphasizing cutting-edge technology and energy efficiency.

* Fujitec: A Japanese company with a significant global footprint, Fujitec

specializes in manufacturing and servicing elevators, escalators, and moving

walkways.

* These companies compete on various fronts, including technology, energy efficiency,

safety features, design, and after-sales service. Each has a strong presence in different
regions

28
and sectors, from residential buildings to commercial skyscrapers and industrial
facilities.

Specific Distribution channel

Aaron elevator industries LTD is based on B to B Channel [ Business to business] , so

the

specific distribution channel is ,

The distribution channels in the elevator industry are multifaceted and involve several
stages

from manufacturing to end-user installation and maintenance. Here's an overview of

the key components.

1. Direct Sales

Manufacturers to Customers: Leading elevator companies like Otis, Schindler, KONE,

and

Thyssenkrupp often sell directly to large clients such as real estate developers,
government

projects, and corporate clients. This direct sales approach ensures that the
manufacturer can

29
provide custom solutions tailored to the specific needs of the project (Metoree) (Dazen).

2. Distributors and Agents

Regional Distributors: Many manufacturers utilize regional distributors to extend their

reach. These distributors handle the local sales, installation, and sometimes the
maintenance of elevators. They act as intermediaries between the manufacturer and the
end-user.Authorized Dealers: Some companies appoint authorized dealers who
exclusively sell and service their products within a certain territory. This helps in
maintaining quality control and brand consistency (Metoree).

3. Contractors and Builders:

Construction Firms: Often, elevators are purchased by construction firms as part of

large building projects. These firms may have contracts with elevator companies to
supply and install the elevators as part of their overall project management services
(ButterflyMX).Subcontractors: In many cases, general contractors subcontract the
installation and maintenance of elevators to specialized companies that focus solely on
elevator systems.

4. Service and Maintenance Providers

In-house Services: Large manufacturers often provide ongoing maintenance and

modernization services directly. This ensures that their elevators continue to meet
safety

standards and operate efficiently throughout their lifecycle.

Third-Party Maintenance Companies: Independent service providers offer

maintenance and repair services for elevators from various manufacturers. They may
also handle modernization projects for older systems (Metoree) (Dazen).

5. Online Sales and Marketing

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E-commerce Platforms: Some companies have started to offer certain products and
parts

through online platforms. This includes sales of smaller components, maintenance kits,
and

even certain types of home elevators.

Digital Marketing: Manufacturers and distributors use digital marketing strategies to

reach

potential customers, including detailed websites, online brochures, and virtual

consultations

to showcase their products and services (Metoree).

6. Consultants and Architects

Project Consultants: Elevator consultants work with architects and building owners to
design and specify the best elevator systems for new construction or modernization
projects. They help in the selection of the appropriate technology and ensure
compliance with local regulations.

Architectural Firms: Architects often include elevator specifications in their building

designs and work closely with manufacturers to integrate these systems seamlessly into
their projects (Dazen).

7. End Users

Residential and Commercial Clients: These include homeowners for residential

elevators, property managers for commercial buildings, and public sector clients for
installations in government buildings, hospitals, and schools.

Key Distribution Strategies:

Customization and Flexibility: Offering tailored solutions to meet the specific needs of
different buildings and applications.

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Strong After-Sales Service: Providing comprehensive maintenance and modernization
services to ensure long-term customer satisfaction.

Global Reach with Local Presence: Balancing global manufacturing capabilities with
strong local distribution and service networks to cater to regional markets effectively.

These distribution channels ensure that elevator manufacturers can effectively reach a
wide

range of customers while maintaining the high standards of safety, reliability, and
innovation

that the industry demands.

* Market segmentation

* Promotion tools used

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* The elevator industry employs a variety of promotional tools to market their products
and services effectively. Here are some of the key promotional tools used:

1. Digital Marketing

* Website and SEO: Elevator companies maintain comprehensive websites that

showcase their products, services, case studies, and technical specifications. Search
Engine Optimization (SEO) strategies are used to improve visibility in search engine
results.

* Social Media: Platforms like LinkedIn, Facebook, and Instagram are utilized to
share updates, innovations, and success stories, engaging with both corporate clients
and the general public (Metoree) (Dazen).

* Online Advertising: Pay-per-click (PPC) campaigns, display ads, and retargeting

ads help reach potential customers actively searching for elevator solutions.

2. Trade Shows and Exhibitions

* Industry Events: Participating in industry-specific trade shows and exhibitions,

such as the International Elevator and Escalator Expo (IEEE), allows companies to
showcase their latest technologies and network with potential clients and
partners(Metoree).

33
* Product Demonstrations: Live demonstrations at these events help in presenting
new products and technologies directly to a targeted audience.

3. Print and Digital Media

Brochures and Catalogs: Detailed brochures and product catalogs are distributed
both in print and digital formats to provide comprehensive information about the
products and services offered.

* Industry Publications: Advertising in industry magazines and journals helps in

reaching a professional audience, including architects, builders, and facility managers.

4. Content Marketing

* Blogs and Articles: Regularly updated blogs on company websites provide valuable
information on topics such as elevator maintenance, energy efficiency, and new
technologies.

* Case Studies and White Papers: Detailed case studies and white papers
highlight successful installations and innovative solutions, building credibility and
demonstrating expertise (ButterflyMX)

5. Direct Marketing

* Email Campaigns: Targeted email campaigns to existing and potential customers

keep them informed about new products, special offers, and industry news.

* Direct Mail: Sending personalized direct mail pieces to key decision-makers in

relevant industries can effectively capture their attention.

6. Public Relations (PR)

* Press Releases: Announcing new products, technological advancements, and major

project completions through press releases helps in gaining media coverage and public
interest.

34
* Media Relations: Building relationships with industry journalists and influencers
to secure positive coverage and reviews.

7. Sales Promotions

* Discounts and Incentives: Offering limited-time discounts, rebates, and financing

options to stimulate sales and attract new customers.

* Referral Programs: Incentivizing existing customers to refer new clients through

referral bonuses or discounts.

8. Customer Engagement and Support

Webinars and Workshops: Hosting webinars and workshops to educate customers

about new products, industry trends, and maintenance best practices.

* Customer Service Excellence: Providing exceptional customer service and

support to build long-term relationships and encourage repeat business.

9. Partnerships and Alliances

* Strategic Alliances: Forming partnerships with construction companies,

architects, and real estate developers to ensure their products are specified in new
building projects.

* Collaborations with Technology Providers: Working with tech companies to

integrate smart technologies and IT solutions into elevator systems.

* By leveraging these promotional tools, elevator companies can effectively reach and
engage their target audiences, enhance brand visibility, and drive sales growth in a
competitive.

* Pricing Method followed

35
* The pricing methods in the elevator industry can vary based on several factors,
including the type of elevator, the complexity of the installation, the level of
customization, and the geographical location. Here are some of the primary pricing
methods used:

1. Cost-Plus Pricing

* Basic Cost Calculation: This method involves calculating the total cost of
manufacturing and installing the elevator (including materials, labor, and overhead)
and then adding a markup percentage to ensure profit. This is commonly used for
custom or complex installations where costs can vary significantly.

* Customization Charges: For highly customized elevators, additional charges are

applied based on the specific requirements of the client.

2. Competitive Pricing

* Market Rates: Companies often set their prices based on the prevailing market
rates. They conduct market research to understand the pricing strategies of their
competitors and adjust their prices accordingly to remain competitive.

Differentiation-Based Pricing: Firms may offer similar prices to competitors but

differentiate themselves through added value, such as extended warranties, superior
service, or advanced technology features (Metoree) (Dazen).

3. Value-Based Pricing

* Perceived Value: This method sets prices based on the perceived value to the
customer rather than the cost of production. Premium brands like Mitsubishi Electric
and KONE may use this approach, leveraging their reputation for quality and
innovation to justify higher prices.

36
* Customer Segmentation: Different prices may be set for different customer
segments based on the value they place on certain features, such as high-speed elevators
for high-rise buildings versus standard models for residential buildings(ButterflyMX).

4. Project-Based Pricing

* Turnkey Projects: For large-scale projects, such as commercial buildings or

infrastructure developments, pricing is often negotiated as part of a comprehensive
contract that includes design, installation, and maintenance services. These projects
typically involve a detailed proposal and bidding process.

* Bid and Tender: Public sector projects often require companies to submit bids,
with pricing influenced by the specific requirements and budget constraints of the
project (Dazen).

5. Package Pricing

* Bundled Services: Companies may offer packages that include the elevator,
installation, and a maintenance contract for a set period. This approach can simplify
the purchasing process for clients and provide a steady revenue stream for the
manufacturer through ongoing maintenance services.

* Tiered Packages: Different levels of service packages can be offered (e.g., basic,
standard, and premium), each with varying features and service levels to cater to
different customer needs and budgets (Metoree).

6. Geographical Pricing

* Regional Adjustments: Prices may vary based on geographical location due to

differences in labor costs, regulatory requirements, and market demand. For example,
installations in urban areas may be priced higher due to higher operational costs and
demand for advanced features.

37
* Local Market Conditions: Elevator companies adjust their pricing strategies to
reflect local economic conditions, competitive landscape, and customer preferences in
different regions (ButterflyMX) (Dazen).

* Key Factors Influencing Pricing:

* Type of Elevator: The complexity and specifications of the elevator (e.g., hydraulic vs.
traction, residential vs. commercial) significantly impact the price.

* Customization and Features: Custom designs, advanced features (such as smart

technology integrations), and high-speed capabilities typically increase the cost.

* Installation Complexity: The complexity of the installation environment, such as

retrofitting an elevator into an existing building versus a new construction, affects the
overall pricing.

* Service and Maintenance: Long-term maintenance contracts and service

packages can influence the initial pricing, with bundled services often providing cost
savings to customers over time (Metoree) (Dazen).

* By employing these diverse pricing methods, elevator companies can cater to a wide
range of customer needs and market conditions, ensuring profitability while remaining
competitive.

So the price of product is based on the different product . like Aaron manufacture the
product on the base of customer customization . So the price is flexible in this type of
industry.Also the price of product is also based on the quantity of the product.

 Export Procedure

Aaron elevator industry have many contractors and dealers in different states.

They contact with them and take order over worldwide.

They export all over India and other countries including the Nepal, Uganda, Kenya,
Bangladesh, Bhutan, etc.

38
 CHAPTER 04

Human Resource Management

* Recruitment procedure

Recruiting employees for an elevator company involves a structure process to ensure

that qualified candidates are hired to meet the company's technical and service
standards.

Certainly! Here's an overview of the recruitment process in the Human Resource

Department

* Recruitment Process in the Human Resource Department

1. Introduction to Recruitment:

39
Introduce the significance of recruitment in acquiring talent for organizational success.
Highlight its role in aligning with the company's strategic goals and maintaining a
competitive edge.

2. Job Analysis and Role Definition:

Conducting Job Analysis: Explain the process of identifying job requirements,

responsibilities, and qualifications.

- Role Definition: Define the role's objectives, reporting structure, and key performance
indicators.

3. Talent Sourcing:

- Internal Recruitment: Discuss the advantages of promoting from within and methods
for identifying internal talent.

- External Recruitment: Explore various sourcing channels such as job boards, social
media, recruitment agencies, and professional networks.

4. Candidate Screening:

- Resume Screening: Explain techniques for reviewing resumes to shortlist qualified

candidates.

- Pre-Employment Assessments: Discuss the use of assessments to evaluate candidates'

skills, personality traits, and cultural fit.

- Initial Interviews: Describe the process of conducting initial interviews to assess

candidates' suitability for the role.

5. Selection Process:

- Panel Interviews: Discuss the benefits of panel interviews in evaluating candidates

from multiple perspectives.

40
- Skills Assessment: Explain the use of practical tests or simulations to assess
candidates' jobrelated skills.

- Background Checks: Highlight the importance of verifying candidates' credentials,

employment history, and references.

6. Candidate Experience:

-Communication: Emphasize the importance of clear and timely communication with

candidates throughout the recruitment process.

- Candidate Feedback: Discuss the value of soliciting feedback from candidates to

improve the recruitment experience.

- Onboarding: Briefly touch upon the onboarding process and its role in integrating
new hires into the organization.

7. Legal and Ethical Considerations:

- Equal Employment Opportunity (EEO): Explain the importance of complying with

antidiscrimination laws and promoting diversity and inclusion.

- Privacy and Confidentiality: Discuss the handling of candidate information and the
importance of maintaining confidentiality.

- Fair Hiring Practices: Highlight the need for fairness and transparency in the
recruitment process to ensure a level playing field for all candidates.

8. Technology in Recruitment:

- Applicant Tracking Systems (ATS): Discuss the use of ATS software for streamlining
the recruitment process, managing candidate data, and tracking progress.

- Artificial Intelligence (AI): Explore the role of AI in automating repetitive tasks,

analyzing candidate data, and improving the efficiency of recruitment processes.

9. Continuous Improvement:

41
- Metrics and Analytics: Explain the use of recruitment metrics such as time-to-fill,
cost-per-hire, and quality-of-hire to evaluate the effectiveness of recruitment efforts.

- Feedback and Evaluation: Discuss the importance of gathering feedback from hiring
managers, candidates, and HR stakeholders to identify areas for improvement.

* Sourcing Candidates

1. Internal job process

* Create Job Descriptions

Develop detailed job descriptions for internal postings.

* Internal Job Posting

Announce job openings via company intranet, emails, or notice boards.

* Employee Referrals

Encourage current employees to refer suitable candidates.

* Screen and Shortlist Candidates

Review applications from interested internal candidates.

* Interview Process

Conduct interviews with shortlisted internal candidates.

* Selection and Offer

Choose the best candidate and make an internal job offer.

* Transition and Onboarding

Facilitate the transition and provide necessary training.

2. External Recruitment Process

42
* Identify Job Openings

Determine which positions need to be filled.

* Create Job Descriptions

Develop detailed job descriptions for external postings

Choose Recruitment Channels

Select appropriate external recruitment channels (job portals, social media, etc.).

* Advertise Job Openings

Post job ads on selected channels.

* Screen Applications

Review and filter applications from external candidates.

* Preliminary Assessments

Conduct initial screening tests or interviews.

* Interview Process

Conduct in-depth interviews with shortlisted external candidates.

 Selection and Offer

Choose the best candidate and make a job offer.

* Background Check and References

Perform background checks and verify references.

* Onboarding

Integrate the new hire into the company with proper onboarding and training.

43
* Selection process

Overview of the Elevator Industry and Importance of Selection

Introduction

The elevator industry plays a crucial role in modern urban development, facilitating
efficient vertical transportation in buildings. Key players in this industry include
manufacturers, service providers, and maintenance companies. Given the technical and
safety-critical nature of the industry, the selection process for hiring employees is
rigorous and detailed to ensure high standards of quality and safety.

Industry Challenges

 Safety Compliance: Adhering to stringent safety standards and regulations.

 Technological Advancements: Keeping up with innovations like smart
elevators and energy efficient systems.
 Customer Expectations: Meeting the demands for reliability, speed, and
aesthetics.
 Workforce Skills: Ensuring employees possess the necessary technical and
soft skills.
 Importance of Effective Selection

44
  Quality Assurance: High-quality employees contribute to better product and
service quality. Safety and Reliability: Properly trained and skilled employees
help maintain safety and reliability standards.
 Customer Satisfaction: Skilled workforce enhances customer satisfaction
through efficient installation and maintenance.
 Cost Efficiency: Reducing turnover and training costs by selecting the right
candidates from the start.

Steps in the Selection Process

1. Identifying Job Requirements

Job Analysis: Conduct a thorough job analysis to understand the roles and
responsibilities.

2. Skill Requirements:

Determine the essential technical and soft skills needed.

Job Descriptions: Create detailed job descriptions and specification.

3. Screening Applications

Application Review: Evaluate resumes and cover letters for relevant experience and
skills. Pre-screening Calls: Conduct initial phone interviews to assess candidate
suitability.

4. Assessing Candidates

Technical Assessments: Administer technical tests to evaluate relevant technical skills.

Behavioral Assessments: Use behavioral tests to gauge problem-solving abilities and

teamwork.

Interviews:

45
Initial Interviews: Conduct initial interviews to further screen candidates.

Panel Interviews: Involve a panel of experts to assess technical and cultural fit.

Technical Interviews: Focus on specific technical competencies required for the role.

5. Structured Interview Process

Interview Panels: Form panels including HR representatives, technical managers, and

senior technicians.

Competency-Based Questions: Prepare questions targeting key competencies such as

problem solving, technical knowledge, and safety awareness.

Technical Problem Solving: Present real-life technical problems for candidates to solve
during the interview.

Behavioral Questions: Use STAR (Situation, Task, Action, Result) method to assess
past experiences and behaviors.

6. Practical Assessments

Hands-on Tests: Conduct practical tests to evaluate hands-on skills, such as installation,
troubleshooting, and maintenance of elevator systems.

Simulations: Use simulation software or mock setups to test candidate responses to

potential field scenarios.

7. Background Checks

Verification: Verify educational qualifications, certifications, and previous employment.

Reference Checks: Contact previous employers and references to gain insights into the
candidate’s work ethic and capabilities.

Safety Record: Ensure candidates have a clean safety record, particularly in roles
involving

direct interaction with elevator systems.

46
8. Decision Making

Evaluation Matrix: Use a weighted evaluation matrix to score candidates based on

technical skills, experience, interview performance, and cultural fit.

Consensus Meetings: Hold meetings with the interview panel to discuss and finalize
candidate selections.

Final Approval: Obtain final approval from senior management or HR for the selected
candidates.

9. Job Offer

Offer Letter: Send a detailed job offer letter including role, responsibilities, salary,
benefits, and other terms.

Negotiation: Engage in negotiations if necessary to finalize the offer.

10. On boarding Process

Pre-On boarding: Provide new hires with necessary paperwork and initial information
before their start date.

Orientation Program: Conduct a comprehensive orientation covering company policies,

safety protocols, and an introduction to the team.

Training and Development: Implement a structured training program focusing on both

technical skills and company-specific processes.

Mentorship: Assign mentors to new hires for the initial period to assist with their
integration into the company.

11. Continuous Evaluation

Probation Period: Monitor performance during the probation period with regular
feedback sessions.

47
Performance Reviews: Conduct formal performance reviews to ensure the new hires
meet the company’s standards and expectations.

 No of Employees

The total number of employees is approx 150.

Attendance maintenance

for the attendance maintenance the company have their own software. from where
company maintain the attendance.

Training given

All new joining get 2 to 3 days training under the supervision of head of department
and under the supervisor.

Leave rules

The total number of employees is approx 150.

Attendance maintenance

for the attendance maintenance the company have their own software . from where
company maintain the attendance.

Training given

All new joining get 2 to 3 days training under the supervision of head of department
and under

the supervisor.

Leave rules

Leave rules of the Aaron industry is that employees need to inform their heads of
department

48
1weak before of their leave date.

Employee Safety mechanisms

for the safety of employees of the Aaron industry they provide various safety tools like
Safety shooes, helmet, gloves, Welding goggles, etc.

Also they have fire extension all over the company.

Promotion - Transfer rules

All employees and staffs get promotion annually, each and every staff are get promotion
as per their perfomance.

Wages & Salary Administration

In Aaron Industry their is already predecided salary and wages is allocated to the
worker and the staff member's also the wages of administrative level employees and
worker is based on their work type and on their performance based.

Also their salary and wages get increased in the end of each year.

49
 CHAPTER-4

FINANCE DEPARTMENT
 Introduction.

What is business finance ?

In essence, business finance involves managing

money and assets within a company to achieve its
financial goals. This includes activities like planning,
investing, funding, risk management, financial
analysis, working capital management, and financial reporting. By effectively handling
these aspects, businesses can optimize their resources, mitigate risks, and make informed
decisions for sustainable growth.

Why is business finance is important ?

Business finance is the lifeblood of any enterprise, providing the necessary funds to start,
operate, and grow a business. It involves the management of money and other assets to
ensure the financial health and sustainability of an organization. Key aspects include cash
flow management, investment in growth opportunities, risk management, and ensuring
profitability. Effective business finance enables informed decision-making, compliance with
regulations, and fosters stakeholder confidence, all of which are essential for the success
and longevity of a business.

Definition and explantion of profit/loss a/c:

A profit and loss statement (p&l), also called an income statement or statement of
operations, is a financial report that shows a company's revenues, expenses and net profit
or loss over a given period of time. The time period can be of any length, but it is usually a
month, quarter or year. It can also be based on either the calendar year or fiscal year.

50
The p&l statement is one of three major statements typically included in the financial
reporting process. The other two are the balance sheet and cash flow statement. A balance
sheet provides a snapshot of an organization's assets, debts and equity at a specific point in
time. A p&l statement is more concerned with an organization's profitability over a period.
A cash flow statement differs from both of these. It shows how much cash flowed into and
out of the organization during a specific time period

Method of preparation of profit and loss account:

Typically, businesses prepare profit and loss statements monthly, quarterly, or annually
(quarterly and annual statements are recommended). When applying for a small business
loan, companies must often produce several years of profit and loss history, if available.

Similarly, when a company seeks investors or a business owner wants to sell, interested
parties want to see p&ls for a number of years to detect the direction in which the
organization is moving.

For tax law purposes, generating and submitting a p&l to the irs is not required. However,
the tax return itself is the p&l, reflecting the company's income and expenses for the year.

There are differences between the p&l and the tax return because not all expenses are
deductible on the return (e.g., only 50% of business meals are deductible on the tax return,
while 100% of these expenses are reductions on the p&l).

Types of profit and loss statements

51
P&l statements come in several different types, depending on the complexity of the business
and the level of detail required. The method you choose affects how the information is
presented and the insights that can be gained from the statement. Understanding the
various types of profit and loss statements will help you choose the proper one for your
company's needs.

Single-step method

The single-step method is the simplest way to create a p&l statement. With this approach,
you list all revenue items at the top of the statement and subtract all expenses to arrive at
the net income or loss. It requires only a single calculation.

Small businesses with uncomplicated financial structures are best suited for the single-step
method. It provides a quick and easy way to assess profitability without breaking down the
information into multiple categories. However, analyzing profitability is more difficult
because the single-step p&l lacks detail.

Multistep method

The multistep method is a more complex process. It involves categorizing revenues and
expenses into operating and non-operating items, allowing for a more detailed analysis of
the business's financial performance. It has 3 different calculations:

Gross profit = net sales - cost of goods sold

Operating income = gross profit - operating expenses

Net income = operating income + non-operating items

52
The additional information breakdown makes the multistep method ideal for larger
businesses or companies with more complex financial structures. It provides a more
comprehensive view of the company's profitability and helps identify areas for
improvement.

Profit/loss A/C

Balance sheet:

The balance sheet is a financial statement that provides a snapshot of what a company
owns and owes, as well as the amount invested by shareholders. Balance sheets can be used
with other important financial statements to conduct fundamental analysis or calculate
financial ratios.

A balance sheet is a financial statement that reports a company's assets, liabilities, and
shareholder equity.

53
The balance sheet is one of the three core financial statements that are used to evaluate a
business.

It provides a snapshot of a company's finances (what it owns and owes) as of the date of
publication.

The balance sheet adheres to an equation that equates assets with the sum of liabilities and
shareholder equity.

Fundamental analysts use balance sheets to calculate financial ratios.

Following are the statements of our firm:

Cash flow :

In financial accounting, a cash flow statement, also known as statement of cash flows, is a
financial statement that shows how changes in balance sheet accounts and income affect
cash and cash equivalents, and breaks the analysis down to operating, investing and

54
financing activities. Essentially, the cash flow statement is concerned with the flow of cash
in and out of the business. As an analytical tool, the statement of cash flows is useful in
determining the short-term viability of a company, particularly its ability to pay bills.
International accounting standard 7 (ias 7) is the international accounting standard that
deals with cash flow statements.

Cash flow statement:

What are finance ratio:

A financial ratio or accounting ratio states the relative magnitude of two selected numerical
values taken from an enterprise's financial statements. Often used in accounting, there are
many standard ratios used to try to evaluate the overall financial condition of a corporation
or other organization. Financial ratios may be used by managers within a firm, by current
and potential shareholders (owners) of a firm, and by a firm's creditors. Financial analysts
use financial ratios to compare the strengths and weaknesses in various companies.[1] if
shares in a company are traded in a financial market, the market price of the shares is used
in certain financial ratios.

Ratio:

55
56
 CHAPTER 06

PURCHASE DEPARTMENT
Purchase procedure

Purchasing an elevator in a Aaron for a building involves several steps, from initial
planning to final installation and maintenance. Here is a detailed procedure commonly
followed in the elevator industry:

1. Initial Planning and Requirements Assessment

Needs Analysis:

Determine the type of building (residential, commercial, industrial) and its specific
requirements.

Assess the expected traffic and capacity needs (number of passengers, weight limits).

Specifications:

Decide on the type of elevator (passenger, freight, service, etc.).

Determine the number of floors, travel distance, and speed requirements.

Choose between hydraulic, traction, or machine-room-less (MRL) elevators based on

building structure and space.

57
2. Budgeting and Funding

Cost Estimation:

Obtain preliminary cost estimates, including equipment, installation, and maintenance.

Consider additional costs for building modifications, permits, and inspections.

Financing:

Determine funding sources (capital budget, loans, leasing options).

3. Vendor Selection and Proposal Solicitation

Market Research:

Identify potential vendors or manufacturers specializing in elevators.

Request for Proposal (RFP):

Issue an RFP to multiple vendors detailing the specifications and requirements.

Evaluate proposals based on technical specifications, cost, warranty, maintenance

services, and reputation.

Site Visits and References:

Conduct site visits to installations by prospective vendors.

Check references and customer reviews.

4. Contract Negotiation

Terms and Conditions:

Negotiate terms including delivery timelines, payment schedules, warranties, and

service agreements.

Ensure compliance with local codes and regulations.

58
Sign Agreement:

Finalize and sign a contract with the chosen vendor.

5. Design and Engineering

Custom Design:

Work with the vendor to finalize the design, ensuring it meets all requirements and fits
the building's architecture.

Approve detailed drawings and specifications.

6. Permitting and Compliance

Permits:

Obtain necessary permits from local building authorities

Ensure the design complies with all safety and accessibility standards, such as ADA
compliance in the US.

Regulatory Compliance:

Schedule inspections by local authorities during various stages of installation.

7. Installation

Preparation:

Prepare the site for installation, including any structural modifications.

Ensure all necessary utilities (power supply, communication lines) are ready.

Installation:

The vendor's team installs the elevator equipment according to the agreed schedule.
Monitor progress and conduct regular site inspections.

8. Testing and Commissioning

59
Testing:

Conduct comprehensive testing of the elevator's performance, safety systems, and

compliance with specifications.

Perform load tests and emergency operation tests.

Commissioning:

Final inspection by local authorities and issuance of operating permits.

Handover from the vendor to the building management.

9. Training and Handover

Training:

Provide training for building management and maintenance staff on the operation and
basic troubleshooting of the elevator.

Documentation:

Receive all documentation, including operation manuals, maintenance schedules, and

warranty details.

10. Maintenance and After-sales Support

Maintenance Contract:

Sign a maintenance contract with the vendor or a third-party service provider for
regular inspections and servicing.

Establish a schedule for periodic maintenance and safety checks.

Support:

Ensure 24/7 emergency support and rapid response for any issues that arise.

Key Considerations

60
Safety and Compliance: Adherence to safety regulations and standards is crucial
throughout the process.

Vendor Reputation: Choose a reputable vendor with a proven track record to ensure
reliability and quality.

Future Needs: Consider future expansion or changes in building usage that might affect
elevator requirements.

By following these steps, building owners and managers can ensure a smooth and
successful purchase and installation of an elevator system.

PURCHASE LEAD TIME

The lead time for purchasing an elevator in the elevator industry can vary widely
depending on several factors, including the complexity of the project, the type of
elevator, vendor capabilities, and specific customer requirements. However, a general
timeline for the purchasing process from initial planning to final installation might look
something like this:

1. Initial Planning and Requirements Assessment (1-2 months)

Needs Analysis and Specifications

Conducting a thorough needs analysis and defining the specifications.

Engaging stakeholders and getting approvals.

61
2. Budgeting and Funding (1-2 months)

Cost Estimation and Financing:

Obtaining preliminary cost estimates.

Securing funding or budget approval.

3. Vendor Selection and Proposal Solicitation (2-3 months)

Market Research and RFP Process:

Identifying potential vendors and issuing RFPs.

Evaluating proposals and conducting site visits.

Negotiating and signing the contract.

4. Design and Engineering (2-4 months)

Custom Design and Approval:

Working with the vendor on the design.

Reviewing and approving detailed drawings and specifications.

5. Permitting and Compliance (1-3 months)++ and Delivery (3-6 months)

Production and Shipping:

Manufacturing the elevator components according to specifications.

Shipping the components to the installation site.

7. Installation Testing and Final Inspection:

Conducting comprehensive performance and safety tests.

Completing final inspections and obtaining operating permits.

9. Training and Handover (1 month)

62
Training and Documentation:

Training building management and maintenance staff.

Providing all necessary documentation.

Summary

Overall, the total lead time for purchasing and installing an elevator can range from 12
to 24 months, with some projects potentially taking longer depending on the complexity
and specific circumstances. Here’s a breakdown:

Initial Planning and Requirements Assessment: 1-2 months

Budgeting and Funding: 1-2 months

Vendor Selection and Proposal Solicitation: 2-3 months

Design and Engineering: 2-4 months

Permitting and Compliance: 1-3 months

Manufacturing and Delivery: 3-6 months

Installation: 2-4 months

Testing and Commissioning: 1-2 months

Training and Handover: 1 month

63
In the context of the elevator industry, ordering costs and carrying costs are critical
components of the overall cost management strategy. Here's an explanation of these
costs:

Ordering Costs

Ordering costs are the expenses incurred in the process of purchasing elevators or
elevator components. These costs include:

Procurement Costs:

Administrative Expenses: Costs associated with the time and effort of preparing
purchase orders, processing paperwork, and coordinating with suppliers.

Communication Costs: Expenses for communication with vendors (phone calls, emails,
meetings).

Vendor Selection Costs: Costs for evaluating and selecting vendors, including site visits
and reference checks.

Transportation and Handling:

Shipping Costs: Expenses for transporting elevator components from the manufacturer
to the installation site.

Handling Costs: Costs related to unloading, inspection, and moving components to the
storage or installation area.

Inspection and Quality Control:

Inspection Costs: Expenses for inspecting and verifying the quality and quantity of
received components.

Testing Costs: Costs associated with testing components to ensure they meet specified
standards.

Legal and Regulatory Compliance:

64
Permit Fees: Costs for obtaining necessary permits for installation.

Inspection Fees: Expenses for mandatory inspections by regulatory authorities.

Carrying cost

Carrying costs, also known as holding costs, are the expenses associated with storing
and maintaining inventory. In the elevator industry, these costs include:

Storage Costs:

Warehouse Rent: Cost of renting storage space for elevator components.

Utilities: Expenses for electricity, heating, and other utilities in the storage area.

Security: Costs for securing the storage area, including security personnel and
surveillance systems.

Inventory Management:

Inventory Control Systems: Costs for inventory management software and systems.

Personnel Costs: Salaries and wages for staff involved in inventory management and
control.

Depreciation and Obsolescence:

Depreciation: The reduction in value of stored components over time.

65
Obsolescence: Costs associated with inventory becoming outdated or obsolete due to
technological advancements or changes in specifications.

Insurance:

Insurance Premiums: Costs for insuring stored components against risks such as theft,
damage, or loss.

Capital Costs:

Opportunity Cost: The cost of tying up capital in inventory that could have been
used elsewhere.

Interest Expense: If inventory is financed through loans, the interest on borrowed

funds.

Minimizing Ordering and Carrying Costs

To minimize these costs, companies in the elevator industry can implement several
strategies:

Just-In-Time (JIT) Inventory:

Reducing inventory levels by ordering components as needed, thus lowering carrying

costs.

Vendor Management:

Establishing strong relationships with reliable vendors to streamline ordering processes

and negotiate better terms.

66
Efficient Inventory Management:

Using advanced inventory management systems to optimize stock levels and reduce
excess inventory.

Bulk Purchasing:

Ordering in bulk to take advantage of discounts, while balancing the risk of higher
carrying costs.

Forecasting and Planning:

Accurate demand forecasting to align ordering with actual needs, reducing both
ordering and carrying costs.

By carefully managing these costs, companies in the elevator industry can improve their
overall cost efficiency and competitiveness.

Raw Materials ordered

The elevator industry relies on a variety of raw materials to manufacture different

types of elevators, including passenger, freight, and service elevators. Here are the
primary raw materials used in the elevator industry:

1. Steel

Types of Steel:

Carbon Steel: Used for structural components due to its strength and durability.

Stainless Steel: Used for elevator doors, cabin interiors, and fixtures because of its
corrosion resistance and aesthetic appeal.

Applications:

Guide Rails: Provide a path for the elevator car and counterweights.

Shaft Structure: Forms the framework of the elevator shaft.

67
Cabin Structure: Frames and supports the elevator car.

2. Aluminum

Uses:

Cabin Panels: Lightweight and corrosion-resistant, used for interior panels.

Door Panels: Often used in automatic doors for its lightweight and aesthetic properties.

Components: Various small parts and fittings within the elevator system.

3. Copper

Applications:

Wiring: Essential for electrical wiring and components due to its excellent conductivity.

Motors and Generators: Used in windings and other parts of motors and generators for
its conductivity and efficiency.

4. Glass

Types:

Tempered Glass: Used for safety reasons, it is stronger and less likely to break into
sharp pieces.

Laminated Glass: Used in panoramic elevators and for aesthetic purposes, providing
both safety and an unobstructed view.

Uses:

Elevluxury buildings.

5. Plastics and Composites

Ator Cab Walls: In panoramic elevators for a clear view.

Doors: Glass doors are often used in modern and Types:

68
ABS (Acrylonitrile Butadiene Styrene): Used for buttons and fixtures due to its
durability and ease of molding.

PVC (Polyvinyl Chloride): Used in insulation for wiring and some interior finishes.

Applications:

Control Panels: Buttons, indicators, and panels inside the elevator.

Interior Finishes: Decorative trims and moldings.

6. Rubber

Uses:

Buffers: Shock absorbers installed in the pit to cushion the elevator car in case of over-
travel.

Seals and Gaskets: Used in various parts to ensure tight seals and reduce noise.

7. Electronic Components

Components:

Microprocessors: Used in control systems for precise operation and automation.

Sensors: Used for various functions like door operation, weight measurement, and
position sensing.

Cables and Connectors: Necessary for connecting all electronic components and
ensuring communication within the system.

8. Lubricants

Guide Rail Lubricants: Reduce friction and wear on the guide rails.

Gearbox Oils: Ensure smooth operation of the gear mechanisms.

9. Concrete

69
Applications:

Counterweights: Often made of concrete and used to balance the elevator car.

Shaft Construction: In some cases, concrete is used for constructing elevator shafts,
especially in older buildings.

Sustainable and Advanced Materials

Sustainable Materials:

Recycled Metals: Increasing use of recycled steel and aluminum to reduce

environmental impact.

Eco-friendly Plastics: Biodegradable and recyclable plastics are being explored for
various components.

Advanced Materials:

Composite Materials: High-strength, lightweight composites for structural components.

Smart Glass: Glass with variable transparency for energy efficiency and aesthetic
appeal.

Conclusion

The elevator industry utilizes a wide range of raw materials, each chosen for its specific
properties and suitability for different parts of the elevator system. Advances in
materials science and a focus on sustainability are driving the industry toward more
efficient and eco-friendly materials, which enhance performance while reducing
environmental impact.

Re-Ordering Time

According the company when half of the raw material get stock out the reorder, and
also Re-ordering time of raw material is also based on the Quantity of raw material.

70
Purchasing an elevator for a building involves several steps, from initial planning to
final installation and maintenance. Here is a detailed procedure commonly followed in
the elevator industry:

1. Initial Planning and Requirements Assessment

Needs Analysis:

Determine the type of building (residential, commercial, industrial) and its specific
requirements.

Assess the expected traffic and capacity needs (number of passengers, weight limits).

Specifications:

Decide on the type of elevator (passenger, freight, service, etc.).

Determine the number of floors, travel distance, and speed requirements.

Choose between hydraulic, traction, or machine-room-less (MRL) elevators based on

building structure and space.

2. Budgeting and Funding

Cost Estimation:

Obtain preliminary cost estimates, including equipment, installation, and maintenance.

Consider additional costs for building modifications, permits, and inspections.

71
Financing:

Determine funding sources (capital budget, loans, leasing options).

3. Vendor Selection and Proposal Solicitation

Market Research:

Identify potential vendors or manufacturers specializing in elevators.

Request for Proposal (RFP):

Issue an RFP to multiple vendors detailing the specifications and requirements.

Evaluate proposals based on technical specifications, cost, warranty, maintenance

services, and reputation.

Site Visits and References:

Conduct site visits to installations by prospective vendors.

Check references and customer reviews.

4. Contract Negotiation

Terms and Conditions:

Negotiate terms including delivery timelines, payment schedules, warranties, and

service agreements.

Ensure compliance with local codes and regulations.

Sign Agreement:

Finalize and sign a contract with the chosen vendor.

5. Design and Engineering

Custom Design:

72
Work with the vendor to finalize the design, ensuring it meets all requirements and fits
the building's architecture.

Approve detailed drawings and specifications.

6. Permitting and Compliance

Permits:

Obtain necessary permits from local building authorities.

Ensure the design complies with all safety and accessibility standards, such as ADA
compliance in the US.

Regulatory Compliance:

Schedule inspections by local authorities during various stages of installation.

7. Installation

Preparation:

Prepare the site for installation, including any structural modifications.

Ensure all necessary utilities (power supply, communication lines) are ready.

Installation:

The vendor's team installs the elevator equipment according to the agreed schedule.

Monitor progress and conduct regular site inspections.

8. Testing and Commissioning

Testing:

Conduct comprehensive testing of the elevator's performance, safety systems, and

compliance with specifications.

Perform load tests and emergency operation tests.

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Commissioning:

Final inspection by local authorities and issuance of operating permits.

Handover from the vendor to the building management.

9. Training and Handover

Training:

Provide training for building management and maintenance staff on the operation and
basic troubleshooting of the elevator.

Documentation:

Receive all documentation, including operation manuals, maintenance schedules, and

warranty details.

Maintenance and After-sales Support

Maintenance Contract:

Sign a maintenance contract with the vendor or a third-party service provider for
regular inspections and servicing.

Establish a schedule for periodic maintenance and safety checks.

Support:

Ensure 24/7 emergency support and rapid response for any issues that arise.

Key Considerations

Safety and Compliance: Adherence to safety regulations and standards is crucial

throughout the process.

Vendor Reputation: Choose a reputable vendor with a proven track record to ensure
reliability and quality.

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Future Needs: Consider future expansion or changes in building usage that might affect
elevator requirements.

By following these steps, building owners and managers can ensure a smooth and
successful purchase and installation of an elevator system.

Ordering Cost and Carrying Cost

In the context of the elevator industry, ordering costs and carrying costs are critical
components of the overall cost management strategy. Here's an explanation of these
costs:

Ordering cost

Ordering costs are the expenses incurred in the process of purchasing elevators or
elevator components. These costs include:

Procurement Costs:

Administrative Expenses: Costs associated with the time and effort of preparing
purchase orders, processing paperwork, and coordinating with suppliers.

Communication Costs: Expenses for communication with vendors (phone calls, emails,
meetings).

Vendor Selection Costs: Costs for evaluating and selecting vendors, including site visits
and reference checks.

Transportation and Handling:

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Shipping Costs: Expenses for transporting elevator components from the manufacturer
to the installation site.

Handling Costs: Costs related to unloading, inspection, and moving components to the
storage or installation area.

Inspection and Quality Control:

Inspection Costs: Expenses for inspecting and verifying the quality and quantity of
received components.

Testing Costs: Costs associated with testing components to ensure they meet specified
standards.

Legal and Regulatory Compliance:

Permit Fees: Costs for obtaining necessary permits for installation.

Inspection Fees: Expenses for mandatory inspections by regulatory authorities.

Carrying costs

Carrying costs, also known as holding costs, are the expenses associated with storing
and maintaining inventory. In the elevator industry, these costs include:

Storage Costs:

Warehouse Rent: Cost of renting storage space for elevator components.

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Utilities: Expenses for electricity, heating, and other utilities in the storage area.

Security: Costs for securing the storage area, including security personnel and
surveillance systems.

Inventory Management:

Inventory Control Systems: Costs for inventory management software and systems.

Costs Personnel : Salaries and wages for staff involved in inventory management and
control.

Depreciation and Obsolescence:

Depreciation: The reduction in value of stored components over time.

Obsolescence: Costs associated with inventory becoming outdated or obsolete due to

technological advancements or changes in specifications.

Insurance:

Insurance Premiums: Costs for insuring stored components against risks such as theft,
damage, or loss.

Capital Costs:

Opportunity Cost: The cost of tying up capital in inventory that could have been used
elsewhere.

Interest Expense: If inventory is financed through loans, the interest on borrowed

funds.

Minimizing Ordering and Carrying Costs

To minimize these costs, companies in the elevator industry can implement several
strategies:

Just-In-Time (JIT) Inventory:

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Reducing inventory levels by ordering components as needed, thus lowering carrying
costs.

Vendor Management:

Establishing strong relationships with reliable vendors to streamline ordering processes

and negotiate better terms.

Efficient Inventory Management:

Using advanced inventory management systems to optimize stock levels and reduce
excess inventory.

Bulk Purchasing:

Ordering in bulk to take advantage of discounts, while balancing the risk of higher
carrying costs.

Forecasting and Planning:

Accurate demand forecasting to align ordering with actual needs, reducing both
ordering and carrying costs.

By carefully managing these costs, companies in the elevator industry can improve their
overall cost efficiency and competitiveness.

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 CHAPTER 07

SAFETY DEPARTMENT
* Safety Equipment Inventory:

In the dynamic environment of the elevator industry, safety is paramount. Our safety
department meticulously maintains an inventory of essential safety equipment to safeguard
both employees and assets.

* Fire Safety Measures:

We maintain an adequate number of fire extinguishers strategically placed throughout our

facilities. These extinguishers undergo regular inspections and maintenance to ensure they
are fully operational in the event of a fire emergency. Additionally, we provide
comprehensive training to employees on the proper use of fire extinguishers.

* Worker Protection Equipment:

Our commitment to worker safety extends to the provision of Personal Protective

Equipment (PPE), including helmets, safety shoes, gloves, eyewear, high-visibility clothing,

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and safety harnesses. These items are essential for protecting employees from potential
hazards during their work in and around elevators.

* Policies and Procedures:

Ensuring the safety and well-being of our employees is a fundamental aspect of our
operations. Our safety department implements and enforces various policies and
procedures to mitigate risks and promote a culture of safety.

* Workmen Compensation Policy:

- We have a robust workmen compensation policy in place to provide financial protection

to employees in the unfortunate event of workplace injuries. This policy includes
comprehensive coverage and clear reporting protocols to ensure that injured workers
receive prompt assistance and support.

* Insurance Coverage:

Our employees are covered by life insurance policies tailored to their individual needs,
providing them and their families with peace of mind. Additionally, we maintain general
insurance policies to protect our property, liability, and other assets, safeguarding our
business interests.

* Health and Safety Policy:

- Our health and safety policy outlines strict guidelines and procedures to ensure the well
being of our workforce. This includes adherence to safety regulations, regular safety
training sessions, and clear delineation of employee responsibilities regarding safety
compliance and reporting.

* Additional Safety Mechanisms:

In addition to the aforementioned safety measures, we have implemented various

additional safety mechanisms to enhance workplace safety and emergency preparedness.

* Emergency Preparedness:

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We conduct regular drills to familiarize employees with evacuation procedures and
emergency protocols. Emergency exits and evacuation routes are clearly marked
throughout our facilities, and first aid stations are strategically located and well-equipped
to provide immediate assistance in case of injuries or medical emergencies.

Safety Signage:

Prominent safety signage is displayed throughout our facilities to provide clear instructions
and warnings to employees and visitors. Regular maintenance ensures that these signs
remain visible and effective at all times, contributing to a safer working environment.

* Emergency Communication Systems:

Intercoms and alarm systems are installed in key locations to facilitate quick
communication and coordination during emergencies. These systems enable prompt
response and evacuation, minimizing the potential impact of emergencies on personnel and
property.

In conclusion, our safety department plays a crucial role in ensuring workplace safety
within the elevator industry. Through comprehensive safety equipment inventory, robust
policies and procedures, and additional safety mechanisms, we remain steadfast in our
commitment to protecting the well-being of our employees and maintaining a safe and
secure work environment.

1. Comprehensive Safety Equipment Inventory:

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Our safety department leaves no stone unturned when it comes to ensuring that our
facilities are equipped with the necessary safety equipment to mitigate risks effectively.

* Fire Safety Measures:

We maintain a detailed inventory of fire extinguishers, ensuring adequate coverage

throughout our facilities. Regular inspections, maintenance, and refresher training sessions
guarantee their operational readiness in the event of a fire emergency.

* Personal Protective Equipment (PPE) Provision :

In addition to standard PPE, such as helmets and safety shoes, we provide specialized gear
tailored to the unique challenges encountered in elevator-related work. This includes
protective gear for working at heights, confined spaces, and electrical safety.

* Emergency Response Kits:

Our safety department ensures that emergency response kits, including first aid supplies,
AEDs (Automated External Defibrillators), and emergency oxygen units, are readily
available and well-maintained throughout our facilities.

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2. Robust Policies and Procedures:

Our safety policies and procedures are meticulously crafted to mitigate risks, promote a
culture of safety, and ensure compliance with regulatory requirements.

* Workmen Compensation Policy:

Our comprehensive workmen compensation policy not only provides financial support to
employees in the event of workplace injuries but also includes rehabilitation services to
facilitate their recovery and return to work.

* Insurance Coverage Assurance:

Beyond life and general insurance policies, we also maintain specialized insurance coverage
tailored to the unique risks associated with elevator operations, such as liability insurance
for elevator maintenance and installation projects.

* Health and Safety Policy Commitment:

Our health and safety policy encompasses a wide range of initiatives, including hazard
identification and risk assessment, safety training and education, and regular safety audits
and inspections to ensure compliance with industry standards.

3. Advanced Safety Mechanisms

In addition to our foundational safety measures, we continuously explore and implement

advanced safety mechanisms to enhance our overall safety posture.

* Technology Integration for Safety:

We leverage cutting-edge technologies, such as IoT (Internet of Things) sensors and

predictive maintenance algorithms, to monitor elevator performance in real-time and
identify potential safety issues before they escalate into emergencies.

* Safety Culture Promotion:

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Our safety department actively promotes a culture of safety by organizing safety awareness
campaigns, recognition programs for safety champions, and peer-to-peer safety mentoring
initiatives to encourage employees to actively participate in safety initiatives.

* Continuous Improvement Initiatives:

Through regular safety performance reviews, lessons learned sessions following incidents
or near misses, and feedback mechanisms from frontline employees, we continuously
identify areas for improvement and implement corrective actions to enhance safety across
our organization.

* Advanced Training Programs:

Our safety department goes above and beyond in providing comprehensive training
programs to equip our workforce with the knowledge and skills necessary to navigate
potential hazards safely.

* Technical Training:

Specialized training programs cover various aspects of elevator installation, maintenance,

and repair, ensuring that technicians possess the expertise to perform their duties safely
and efficiently.

* Emergency Response Training:

Regular drills and simulations prepare employees to respond swiftly and effectively to
emergency situations, including elevator entrapments, power outages, and fire incidents.

* Proactive Safety Audits and Inspections:

Our safety department conducts regular audits and inspections to identify potential safety
hazards and ensure compliance with regulatory standards.

* Safety Audits:

Periodic safety audits are conducted across all facilities and job sites to assess adherence to

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safety protocols, identify areas for improvement, and implement corrective actions.

* Equipment Inspections:

Rigorous inspections of elevator systems, safety devices, and personal protective equipment

are carried out to ensure optimal performance and compliance with safety standards.

* Emergency Response Preparedness:

Our safety department prioritizes emergency response preparedness to minimize the

impact

of unforeseen events and safeguard the well-being of our employees and customers.

* Emergency Response Plans:

Comprehensive emergency response plans outline protocols for evacuations, medical

emergencies, and other crisis scenarios, ensuring a coordinated and effective response.

* Collaboration with First Responders:

Partnerships with local emergency services facilitate swift response and coordination
during

emergencies, enhancing overall emergency preparedness and response capabilities.

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* Continuous Safety Innovation:

Our safety department remains at the forefront of innovation, leveraging technology and

best practices to enhance safety across our operations.

* Technology Integration:

Integration of advanced safety technologies, such as remote monitoring systems and

predictive analytics, enhances proactive risk management and improves overall safety

performance.

* Safety Culture Initiatives:

employee engagement programs, safety committees, and recognition schemes foster a

culture of safety ownership and accountability, empowering employees to actively
participate in safety initiatives.

* Community Outreach and Engagement:

Our safety department extends its commitment to safety beyond our organization, actively
engaging with the community to promote safety awareness and education.

* Safety Workshops and Seminars:

Collaborative initiatives with local organizations and educational institutions provide

valuable safety training and resources to the broader community, enhancing safety
knowledge and awareness.

* Public Safety Campaigns:

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Outreach campaigns raise awareness about elevator safety, emphasizing best practices for
passengers and highlighting the importance of regular maintenance and inspection of
elevator systems.

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