Precision Engineering

Components for Industries

Team Members:

Ayush Hardikar 2017PGP135

Anurag Sugandhi 2017PGP115

Vibhav Dwivedi 2017PGP119

Shanal Jauhari 2017PGP106

Sandeep Goyal 2017PGP105

Current Market Scenerio

“Luxury car manufacturer, BMW, recently suffered production stoppage of its 3-Series sedan in
Germany, China, and South Africa, due to Bosch’s failure to supply the necessary steering gears.
Aside from its 3-Series sedan, production of BMW’s 1-, 2-, and 4-Series was also affected. While
the financial impact of the stoppage has yet to be measured, BMW is seeking compensation from
Bosch for the disruption.”

This incident highlights the importance of the supply chain for any manufacturer in the industry.
While many established players in the industry may have optimized their supply chains and
vendor relations to procure the materials and components for their plants and production but
procuring engineering components still poses a great challenge for many players, especially small
players.

The engineering components include products like Casted and machined parts, flanges, bearing
holders, V-Belt Pulleys, Retaining and Wear Ring, Rubber components like O-Rings and X-Rings,
Oil Seals and Gaskets, safety components like Lifting Sling, Eye Bolts, along with fasteners, Signs
and Arrows and Mallets.

Also, many companies require specialized and customized products like precision machines
according to their requirements but do not have the knowledge about where and how to procure
these products. Currently, many companies can perform machining of some sort. However, there
is limited capacity among world-class precision machining suppliers, globally speaking. Due to
this, the procurement professionals face major challenges to locate and source capable
machining supply partners. Each option must be approached from multiple angles, and one must
be conscious of all facets of the part and assembly before choosing the best supply partner for
machining services.

There are many factors which need to be considered for such procurement process. While cost
remains critical in any sourcing activity, it is important to note that overall capabilities, experience,
and quality are as important and should be weighted equally as part of the decision criteria. Before
moving forward with any vendor, a procurement professional must have a stringent supplier
development process that ensures the following considerations are met, and the results meet
company goals: capabilities, experience, quality, and costs.
This is where our business idea comes in. We will offer our services to the companies who are
looking to procure these engineering products and seeking customized solutions to their
requirements.

This is different than the EPC business. EPC stands for Engineering, Procurement, Construction
and is a prominent form of contracting agreement in the construction industry. The engineering
and construction contractor will carry out the detailed engineering design of the project, procure
all the equipment and materials necessary, and then construct to deliver a functioning facility or
asset to their clients. Companies that deliver EPC Projects are commonly referred to as EPC
Contractors.

In the correct scenario, the problem lies with connecting the supplier with correct capabilities with
the customer. In India, the OEM’s which are generally based outside but manufacture in India do
not have the requisite skillset to onboard such suppliers. This results in increased cost of
procurement as the supply chain is not optimized. This is where our business will have distinct
advantage. We will be doing this using the information arbitrage. We have a list of more than
13000 small and medium scale manufacturers from which we can get distinct advantages in terms
of the cost of the products.

Business Plan

We aim to provide supply chain solutions customised to the customer needs. All solutions will be
designed after considering the consumer needs and in consultation with the consumer. Major
dealings will be primarily in engineered products and workforce will comprise of people who have
a tremendous experience in this field. Consistency will be achieved by creating new supply chains
and restructuring the existing value chain and capturing hidden values in strategic sourcing.

We will provide precision manufactured components to our industry partners. All these
components will be delivered after thorough inspections and will also provide Inspection Reports
along with the components.

Major dealings will be in engineered components like Casted and machined parts, flanges,
bearing holders, V-Belt Pulleys, Retaining and Wear Ring, Rubber components like O-Rings and
X-Rings, Oil Seals and Gaskets, safety components like Lifting Sling, Eye Bolts, along with
fasteners, Signs and Arrows and Mallets and will also provide customized components with
special requirements like hardness, surface finish or coating which are manufactured as per
technical requirements.
All our products will be thoroughly inspected by our internal quality control team. All products will
be checked and verified to be 100% compliant to the customer drawing provided and the checklist
has been followed. Further verification for compliance with RoHS, Black and Grey product list and
material specifications will also be carried out. It is only because of such strict internal controls
that we will be able to boast quality compliance of more than 99.5%. We intend to reach more
than 99.9% quality compliance by 2020.

It is difficult for many Multi-National Companies to find out the best opportunities in the ever
evolving and dynamic market like India. We aim to bridge this strategic gap. We will provide
strategic solutions so that your "India Story" shines through.

Doing business in India comes with its own unique challenges. We will assist our clients in
navigating this complex environment by leveraging our extensive supply chain in mitigating the
risks involved.

Our products and solutions will be used in fields of Defence, Oil and Gas, Automotive, Steel
Manufacturing, Breweries, Dairy, Agriculture, water treatment among others.

Our Core Competency includes a wide range of quality suppliers based out of India, Europe and
America. This enables us to procure the best quality product every time.

All our products are manufactured by ISO certified suppliers only. Special certifications like CE
certified safety components, FDA Approvals, 3A and TS16949 guidelines are particularly taken
care of. We have exceptionally strict quality guidelines which ensures 100% quality conformance
and zero rejections. We have always striven to achieve 'Six Sigma' standards in all our
processes.

We have taken the philosophy of Li and Fung to our hearts. We aim to provide low-cost high-quality
products through our Supply Chains to our business partners.

We will take an example on a zinc plated screw to explain to you how we function:

Among our network, we will find the raw material supplier for the steel. The steel is then shipped
to the manufacturer. The manufacturer will receive the steel and then manufacture the same as
per the dimensional requirements and complete various activities like head forming and thread
forming. The manufacturer will inform us of the product readiness. This part is later sent to the
coating agent who will apply the zinc coating as per customer requirements. After confirmation
from the coating company a random sample as per ISO 2859 is sent to internal quality control
team. After QC gives their go-ahead only, these components will be packed and dispatched to
the final customer.

Benefits for the customer

1) Reduced Purchase Prices

2) Better Lead Times
3) Low Deviations in quality
4) Improved response to customer changes
5) Faster query resolution
6) Lower Vendor Development Costs
7) Reduction in Vendor management costs
8) Efficient Supply Chain
9) Quality Assurance
10) Reduced Quality Costs
11) Low Logistics handling costs
12) Enhanced Technical Expertise of the Supply Chain