Service

Gaps Model

EVALUATION OF SERVICE PERFORMANCE & ANALYSIS OF SCOPE

OF MARKET ATMECON LIMITED

Presented By:

Sarvajeet Halder

Roll No. 13380MA037Company Mentor:Sandeep Gunda

Faculty Mentor:Prof. Ashish Bajpai

Presentation Flow

Industry Analysis

Company Analysis

Research Method

Findings & Conclusion Suggestions

Learning from

Summer Training

4 Consulting Industry

India contributes to 20.04% of the total revenue generated by consulting industry in world.

According to NASSCOM, India's Consulting Industry Revenues in 2013-14 86.4 Billion US$ which is forecasted to increase to 99.0 Billion US$.

High competition due to increase in the number of new comers in this field, exploring all the industries.

Key Players in Engineering Consultancy Providers:

1. MECON Limited

2. TATA Engineering Consultancy Limited

3. MITCON Consultancy & Engineering Services Limited

4. Consulting Engineers Group Limited

5 MECON Limited

MECON Limited is a public sector undertaking under the Ministry of Steel, Government of India.

MECON Limited was established in 1959 under the aegis of Central Engineering & Design Bureau (CEDB).

Industry: Consulting

Chairman-cum-Managing Director: Shri A. K. Tyagi

Site Selection Report

Project Proposal Report

Techno Economic Feasibility Report

Detailed Project Report

Environmental Engineering Detailed Engineering Tendering & Procurement Services EPC Project Execution

Range of Services

6 Net Profit/Loss after Tax(in Crores)

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-130

20

40

60

80

100

120

140

160

16.1120.38

33.31

65.88

82.62

93.68

136.36

101.2

FINANCIAL YEAR

RUPE

ES(IN

CRO

RES)

7 SWOT Analysis

Strengths• Experience• Multidisciplinar

y• Geographically

located• Good

credential

Weaknesses• Inadequate

proactive marketing

• Inadequate follow-up

• Technology Gap

Opportunities• Steel / other

metals• Diversificatio

n• Tie-ups

Threats• Mushrooming• In-house

consultancy services

• Continued dependence on metals

8 Research Method OBJECTIVES:

To find and evaluate the Service Performance Gap in the Marketing Section of MECON Limited.

To find various core-activities accomplished by the Marketing Section.

To find and rank causes of extension of due date in Marketing Section.

To forecast opportunities in Power Sector.

RESEARCH DESIGN:

Exploratory cum descriptive research design.

Part 1

Part 2

FOR PART 1: SAMPLE DESIGNPopulation: Employees associated with Marketing Section.Sampling Unit: Employees in Marketing Section.Sample Size: 69Sampling technique: Judgemental samplingDATA COLLECTION DESIGNType: PrimaryTool: Questionnaire (Likert-scale)

FOR PART 2: SAMPLING DESIGNPopulation: Power Industry in India.DATA COLLECTION DESIGNType: Secondary DataData Collection Source: Published External Sources(Sources from the Government of India)

9 Data Representation:

Charts

Tables

Data Analysis:

Part 1

• Percentage

• Chi-square test

Part 2

• Regression analysis

10

PART 1

To find and evaluate the Service Performance Gap in the Marketing Section of MECON Limited.

To find various core-activities accomplished by the Marketing Section.

To find and rank causes of extension of due date in Marketing Section.

11 Questionnaire & Findings

Attributes Strongly Disagree Disagree

Neither Agree nor Disagree

Agree Strongly Agree

1. Teamwork— Interaction 0 8 10 38 13

2. Knowledge of Taxes, Levies & Duties

8 40 9 12 0

3. Management Information Service(MIS)— Documented

21 29 8 10 1

4. Computer for MIS 1 2 14 40 12

5. Competitor Awareness 14 34 15 5 1

6. Extension of Due Date 3 5 51 10 0

7. Lost Bid Analysis Results 8 45 8 6 2

8. Provisional Project Coordinator(PPC)

1 2 9 43 14

12 Data Representation (by Percentage)

1. Teamwork—

Intera

ction

2. Knowledge of T

axes,

Levie

s & D

uties

3. Management In

formation Se

rvice

(MIS)

— D

ocumented

4. Computer f

or MIS

5. Competitor A

wareness

6. Exte

nsion of D

ue Date

7. Lost

Bid Analysis

Results

8. Pro

visional P

roject

Coordinator(P

PC)0%

20%

40%

60%

80%

100%

0 821

114

3 8 18

4029

2

34

5

45

210

9 8

14

15

51

8

9

38

12 10

40

5 10 6

43

130 1

121 0 2

14

Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

13 Interpretation — Chi-square test(One-tailed)

Attributes p value (0.05) Significance

1. Teamwork— Interaction 0.705 Insignificant

2. Knowledge of Taxes, Levies & Duties

1.983E-36≈0.00 Significant

3. Management Information Service(MIS)— Documented

4.419E-40≈0.00 Significant

4. Computer for MIS 0.341 Insignificant

5. Competitor Awareness 5.779E-39≈0.00 Significant

6. Extension of Due Date1.06498E-42≈0.00

Significant

7. Lost Bid Analysis Results 2.622E-46≈0.00 Significant

8. Provisional Project Coordinator(PPC)

0.391 Insignificant

Reliability Test:Cronbach’s alpha=0.641

Questionnaire

14 Core-activities  

Core-Activities

 Number of Person involved

Consultancy Supply/EPC

Market Scanning / Enquiry Generation

20

11

Registration with Statutory Agencies

14

12

Submission of EOI / Prequalification Bids

35

34

Tie-up with Suppliers 7 14

Project specific working arrangements

6 10

Price Estimation27

26

Bid Preparation 21

23

Price Negotiation 13

15

Contract Finalization 7 10

Post Contract Activities 0 10

Issue of Work Item / Modification

29

0

Preparing Mgmt. Info. Reports

12

0

Reasons for Extension of Due Date

Rank Reason

Rank 1 Very less gap between Opening & Closing dates of Tender

Rank 2 Looking for Consortium

Rank 3 Requesting for Nomination based bidding

Rank 4 Unavailability of Manpower

15 Data Representation of Core-activities

Market Sca

nning / Enquiry

Generation

Registration w

ith Statutory Agencie

s

Submission of E

OI / Prequalifi

cation Bids

Tie-up with

Suppliers

Project

specifi

c working arra

ngements

Price Esti

mation

Bid Preparation

Price Negotiation

Contract

Finalization

Post Contra

ct Acti

vities

Issue of W

ork Item/M

odification

Preparing M

gmt. Info. R

eports05

101520253035

Consultancy Supply/EPC

Core-Activity

No.

of e

mpl

oyee

s

16

• Proper training and development of employeesKnowledge of Taxes, Levies and Duties:

• Introducing proper pricing analysis of competitor’s bid price in MIS in a usable and visual format

Competitor Pricing Awareness

• MIS should be accessible electronically through computer.• Solution: Chronological update and maintenance of

databaseComputer (for MIS):

• Increasing simultaneous efforts on same tender as it was mainly due to time constraints

• Increase the reliability of tie-ups by improving relationship

Extension of due date

• Regular updates of corrective decisions of LBA to all employeesLost Bid Analysis

• Inter-department cooperation for activities should be performedCore-Activities

Suggestions & Conclusion

17

PART 2

To forecast opportunities in Power Sector.

18

Installed Capacity(in Mega Watts) and MECON Revenues in POWER SECTOR(in Lakhs)

Installed Capacity (in Mega Watts)* 

2006-072007-

082008-09 2009-10 2010-11 2011-12 2012-13

April 14.8 220 250 300 2501858

1760May 0 750 186 1126 550

3374June 1077 610 460 932 1265July 750 290 1109 750 1303

2860950

August 155 395 39 1075 839 550September 429 380 150 250 742

13978

870October 250 1120 150 1334 2085 1400November 0 1350 150 250 39 802December 252 1370 500 233 2671 15January 510 778 115 490

1858815

February 505 420 530 770 2057March 2170 1292 250 2075 2057               

Annual Capacity Addition

6112.8 8975 3889 9585 11602 18696 14650

Source:  Reports published by Central Electricity Authority, Ministry of Power, Government of IndiaMECON Revenues in Power sector*

 2006-07

2007-08

2008-09 2009-10 2010-11 2011-12 2012-13

Annual Revenues (in Lakhs)

4978 4198 6922 2292.8 2770.36 1703.56 776.29

Source: MECON BHARTI Annual Report published by MECON LIMITED* includes only hydro, thermal & nuclear power

19 Regression Table

Equation format of Regression line:

Annual Capacity Addition(Independent Variable)(X)

Annual Revenues(Dependent Variable)(Y)

2006-07 6112.8 4978

2007-08 8975 4198

2008-09 3889 6922

2009-10 9585 2292.8

2010-11 11602 2770.36

2011-12 18696 1703.56

2012-13 14650 776.29

20 Regression Output as shown on IBM SPSS Statistics version 21

Model Summary

Model R R Square Adjusted R

Square

Std. Error of the

Estimate

1 .875a .765 .718 1124.20835

a. Predictors: (Constant), CapacityAddition

Coefficientsa

Model Unstandardized Coefficients Standardized

Coefficients

t Sig.

B Std. Error Beta

1(Constant) 7246.047 1048.402   6.912 .001

CapacityAddition -.368 .091 -.875 -4.037 .010

a. Dependent Variable: Revenues

Revenues = 7246 – 0.368 x Yearly Capacity Addition

Nature: Inverse Relationship

Strength: The model explains 76.5% of variations in the revenues due to variations in the capacity added (MW) each year

Y = 7246 ― 0.368XANOVAa

Model Sum of

Squares

df Mean Square F Sig.

1

Regression 20592640.055 1 20592640.055 16.294 .010b

Residual 6319222.036 5 1263844.407    

Total 26911862.090 6      

a. Dependent Variable: Revenues

b. Predictors: (Constant), CapacityAddition

Critical value of F-static for α=0.05 at df1=1 and df2=5 is:F(table)=6.61 which is less than F(calculated)=16.294. Hence, there is a significant relationship.

21 Scope*

* Source: Page 146, Twelfth Five Year Plan (2012–2017) Economic Sectors, Volume II, Planning Commission (Government of India), SAGE Publications India Pvt Ltd.

* includes only hydro, thermal & nuclear power

22 Scatter Diagram (red) with Regression line (blue) representing the relationship between Yearly Capacity Addition (X) & Revenues (Y), “fitted” through

2000 4000 6000 8000 10000 12000 14000 16000 18000 200000

1000

2000

3000

4000

5000

6000

7000

8000

4978

4198

6922

2292.82770.36

1703.56

776.29

Yearly Capacity Addition(in Mega Watts)

Reve

nues

(in L

akhs

)Revenue(Lakh) for 1year,when Capacity addition is calculated as:X= =

23 Learnings from Summer Internship Program

Personal Level:

Marketing functions in a Services firm, where business is done by tendering and bidding, is very different

Marketing mix is not limited to 4P’s

An implementation of primary data & secondary data

Conducting research through questionnaires and analysis

Forecasting with a statistical tool

Finding reliable secondary data

Organizational Level:

Culture

Time-management

24 Queries???

25

Thank You…