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A Comprehensive Project Report ON FEASIBILITY OF MAINTENANCE AGENCY IN BARODASubmitted to Anand Institute of Management, Anand Under The Guidance Of SNEHAL BHATT Assistant Professor, AIM In partial Fulfilment of the Requirement of the award of the degree of Master of Business Administration Offered by Gujarat Technological University, Ahmadabad Prepared By UTKARSH AMARAVAT (127020592003) MBA SEMESTER IV May, 2014

Feasibility of Maintenance Agency in Baroda

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Page 1: Feasibility of Maintenance Agency in Baroda

A

Comprehensive Project Report

ON

“FEASIBILITY OF MAINTENANCE AGENCY IN

BARODA”

Submitted to

Anand Institute of Management, Anand

Under The Guidance Of

SNEHAL BHATT

Assistant Professor, AIM

In partial Fulfilment of the Requirement of the award of the degree of

Master of Business Administration

Offered by

Gujarat Technological University, Ahmadabad

Prepared By

UTKARSH AMARAVAT

(127020592003)

MBA SEMESTER IV

May, 2014

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i

Declaration

I, UTKARSH AMARAVAT hereby declare that the report on entitled

“Feasibility of Maintenance Agency in Baroda” is a result of my own work and

my indebtedness to other work Publications, if any, have been duly

acknowledgment.

Place: - Anand, Gujarat, India

Date: - 6th May, 2014

Utkarsh Amaravat

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ii

Preface

As undergoing the course of Masters of Business Administration in Gujarat

Technological University, This comprehensive project report has been

prepared in partial fulfilment of the requirement of academic where one can

get opportunity to meet the real working people of different industries and to

learn practical aspect of management.

Before finishing MBA and going in practical world, it is necessary to learn how

actually Company do any feasibility study for new project. I take Marketing as

specialization in MBA and to do marketing it’s necessary to find product or

service feasibility in market. It was a complete learning and research process

throughout this project. I had a very memorable and worthy experience.

The rationale behind doing the project work is to study, analyze and find

feasibility of blue ocean maintenance agency idea in real world.

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iii

Acknowledgement

It was indeed an opportunity for me to prepare a feasibility study project

report. during M.B.A. programme. My heartful thanks to Mr. Snehal Bhatt, my

project guide and Mr. Akash Shah and Miss. Suchi Patel who helped me to

bring out this project in good manner with them precise suggestion and rich

experience. I gratefully acknowledge my sincere thanks to my friends

Specifically Mr. Bharat Gohil who help me in this project when needed.

I am extremely thankful to all companies who participate as respondent in this

research; and Makarpura, Pore, Ranoli, Salvi, Nandesari and Vagodia GIDC

offices to provide helpful guidance and materials.

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iv

LIST OF TABLES

Table No. Table Description

Page No.

1.1 Maintenance Agency Fixed Cost or Initial Investment 13

1.2 Maintenance Agency Variable Cost per month 14

2.1 Content Analysis 23

5.1 Demographic Profile 39

5.2 Machinery basic Data 40

5.3 Type of Machinery 41

5.4 Operational Machinery Usage 42

5.5 No. of Operational Machinery 44

5.6 Average age of Operational Machinery 46

5.7 Conveying Machinery Usage 48

5.8 No. of Conveying Machinery 49

5.9 Average age of Conveying Machinery 50

5.10 Power supply Machinery Usage 51

5.11 No. of Power supply Machinery 52

5.12 Average age of Power supply Machinery 53

5.13 Different Manufacturer machinery usage 54

5.14 Maintenance Department Inquiry 55

5.15 Maintenance Department Ability 56

5.16 Maintenance Department Man power 57

5.17 Awareness of other Maintenance agency 58

5.18 Other Maintenance agency AMC 59

5.19 Machinery warranty period Inquiry 60

5.20 Likert Scale: Statement 1 61

5.21 Likert Scale: Statement 2 62

5.22 Likert Scale: Statement 3 63

5.23 Likert Scale: Statement 4 64

5.24 Likert Scale: Statement 5 65

5.25 Likert Scale: Statement 6 66

5.26 Likert Scale: Statement 7 67

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v

5.27 Likert Scale: Statement 8 68

5.28 Likert Scale: Statement 9 69

5.29 Likert Scale: Statement 10 70

5.30 Likert Scale: Statement 11 71

5.31 Likert Scale: Statement 12 72

5.32 Likert Scale: Statement 13 73

5.33 Likert Scale: Statement 14 74

5.34 Likert Scale: Statement 15 75

5.35 Likert Scale: Statement 16 76

5.36 Likert Scale: Statement 17 77

5.37 Purchase Maintenance agency services in Future 78

6.1 Hypothesis 1 79

6.2 Hypothesis 2 80

6.3 Hypothesis 3 81

6.4 Hypothesis 4 82

6.5 Hypothesis 5 84

6.6 Hypothesis 6 85

6.7 Hypothesis 7 86

6.8 Hypothesis 8 87

7.1 Fixed Investment Cost requirement for next 3 Years 88

7.2 Variable Cost requirement for next 3 Years 89

7.3 Future customer analysis 91

7.4 Estimated Cash inflow 93

7.5 Estimated P/L Accounts 93

7.6 Payback Period 95

7.7 PV of Cash Inflow 95

7.8 PV of Cash Outflow 96

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vi

LIST OF FIGURES

Figure No. Figure Description

Page No.

1.1 Flow Diagram of Breakdown Maintenance 2

1.2 Preventive Maintenance Process Flow 3

1.3 Comparison of Breakdown, Predictive and Routine

Maintenance

4

5.1 Machinery basic Data 40

5.2 Type of Machinery 41

5.3 Operational Machinery Usage 43

5.4 No. of Operational Machinery 45

5.5 Average age of Operational Machinery 47

5.6 Conveying Machinery Usage 48

5.7 No. of Conveying Machinery 49

5.8 Average age of Conveying Machinery 50

5.9 Power supply Machinery Usage 51

5.10 No. of Power supply Machinery 52

5.11 Average age of Power supply Machinery 53

5.12 Different Manufacturer machinery usage 54

5.13 Maintenance Department Inquiry 55

5.14 Maintenance Department Ability 56

5.15 Maintenance Department Man power 57

5.16 Awareness of other Maintenance agency 58

5.17 Other Maintenance agency AMC 59

5.18 Machinery warranty period Inquiry 60

5.19 Likert Scale: Statement 1 61

5.20 Likert Scale: Statement 2 62

5.21 Likert Scale: Statement 3 63

5.22 Likert Scale: Statement 4 64

5.23 Likert Scale: Statement 5 65

5.24 Likert Scale: Statement 6 66

5.25 Likert Scale: Statement 7 67

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vii

5.26 Likert Scale: Statement 8 68

5.27 Likert Scale: Statement 9 69

5.28 Likert Scale: Statement 10 70

5.29 Likert Scale: Statement 11 71

5.30 Likert Scale: Statement 12 72

5.31 Likert Scale: Statement 13 73

5.32 Likert Scale: Statement 14 74

5.33 Likert Scale: Statement 15 75

5.34 Likert Scale: Statement 16 76

5.35 Likert Scale: Statement 17 77

5.36 Purchase Maintenance agency services in Future 78

6.1 Hypothesis 1 79

6.2 Hypothesis 4 83

6.3 Hypothesis 5 83

6.4 Hypothesis 8 87

7.1 Estimated PAT 94

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viii

TABLE OF CONTENTS

Page No.

Declaration i

Preface ii

Acknowledgement iii

List of Tables iv

List of Figures vi

Table of Contents

viii

1 About Industry

1.1 Maintenance 1

1.2 Maintenance Agency 6

1.3 Maintenance Agency Service Mix 9

1.4 Maintenance Agency Cost

13

2 Secondary Data Analysis

2.1 Literature Review 15

2.2 Content Analysis 23

2.3 Research Gap

34

3 Signification of Study

35

4 Research Methodology

4.1 Research Statement 36

4.2 Objective of Study 36

4.3 Research Hypothesis 36

4.4 Research Design 38

4.5 Sampling Method 38

4.6 Data Collection Instruments 38

4.7 Sampling Unit 38

4.8 Sample Size

38

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ix

5 Data Analysis

5.1 Demographic Profile 39

5.2 Response Rate 39

5.3 Questionnaire Analysis

40

6 Hypothesis Testing

79

7 Maintenance agency Profitability and Feasibility Analysis

7.1 Cost of Project 88

7.2 Means of Financing 90

7.3 Estimated Cash Flow for next 3 years 91

7.4 Estimated Profit and Loss Accounts 93

7.5 Feasibility Analysis

95

8 Finding

97

9 Conclusion

98

Annexure I x

Bibliography xiv

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Chapter 1

About Industry

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1

1.1. Maintenance

The old concept of Maintenance was “Maintenance is about preserving

physical asset”. However, the new concept is that “Maintenance is about

preserving the functions of assets”. Maintenance can be define as “It is a

routine or a recurring process of keeping a particular machine or asset in its

normal operating condition, so that it can deliver its expected performance or

service without causing any loss of time on account of accidental damage or

breakdown.”

Main function is to keep the equipment in working condition by replacing or

repairing some of the component of the machine and increased availability of

production system, with increased safety and optimized cost.

1.1.1. Maintenance Concepts

Actually, Maintenance is an age old function, which developed and

progressed, knowingly or unknowingly, along with the operation of the

equipment/ machines. In early ages, maintenance was not a separate identity

but the job of maintenance was considered as part and parcel of operator’s

job. This was possible because of simplicity and openness of the machines.

Here some concepts of Maintenance given as per there generation which are

followed by Industries:

1. Breakdown Maintenance Concept (Before 1950)

Breakdown Maintenance concept/system is oldest concept in Maintenance

management. In this not do anything as long as everything is going well and

maintenance repair is done after failure has already occurred. The equipment

allowed running undisturbed till it fails. This maintenance concept also called

as Reactive Maintenance Concept or Unplanned Maintenance or Operate to

failure concept.

Breakdown maintenance can only be suitable for small scale industries where

numbers of equipments are few and sudden failure of equipment will not

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2

cause several financial losses in term of delivery commitment. This system

look to be simple and less expensive, but is not really so. It does not provide

any guarantee of reliability to the smooth production running. In breakdown

maintenance downtime of equipment is high after breakdown.

Fig. 1.1 Flow Diagram of Breakdown Maintenance

2. Preventive Maintenance Concept (Between 1950 to 1960)

Some group of Japanese engineers started a new concept/system in

maintenance that consisted on following the manufactures recommendation

about the care that should be taken in the operation and maintenance of

machine and devices. That new concept was called Preventive Maintenance

or Schedule Maintenance Concept. This Maintenance program is scheduled

in consultation with the production/operation department so that relevant

equipment is made available for maintenance work and utilizes idle time of

equipment. In this maintenance action such as inspection, lubrication,

cleaning, adjustment and replacement are undertaken at fixed interval of

number of hours or kilometres. Although it reduces downtime it was an

expensive alternative. The reason many parts were replaced on a time basis,

while they could have lasted longer. Also many unnecessary man-hours were

put into it and in not few cases excess lubrication caused more damage than

good.

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Fig. 1.2 Preventive Maintenance Process Flow

3. Predictive Maintenance Concept (Between 1960 to 1970)

With time change new concept/system established which determined a more

professional approach. This assign of higher responsibility to all the people

related to maintenance consisted of series of considerations about the

reliability and design of equipment and plant itself. When equipment/system is

taken down for maintenance, changing one or few warn out component

opportunity can be utilized for maintenance, changing other wearing out

component even though they have not failed. This would probably be

economical in the long run. It is very beneficial for non-monitored component

which are inaccessible for inspection. This maintenance concept also called

as Productive Maintenance Concept or Opportunity Maintenance Concept or

Reliability Maintenance Management Concept.

4. Condition based Maintenance Concept (Between 1960 to 1970)

Condition monitoring detects and diagnoses faults and it helps in planned

maintenance based on equipment condition. This condition based on

maintenance strategy is preferred for critical system and for such system

breakdown maintenance is to be avoided. A number of condition based

maintenance techniques such as vibration, temperature, oil analysis, etc.

Have been developed, which guide the users in planned maintenance.

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4

5. Total Productive Maintenance Concept (Between 1970 to 1985)

This concept is about the involvement and participation of each and every one

of the members in the organizations toward optimizing the outcome of each

piece of equipment. This is a completely new philosophy is different approach

that will keep updated by itself. It implies a continuous improvement in all

aspect and is also called Total Participation Maintenance.

The purpose is to transform the attitude of all the members of the industrial

community, all kinds and levels of workers, operators, supervisors, engineers,

administrators are included in this major responsibility. TPM implementation is

a goal that all company members share. It also generates benefits for all.

Through this effort, all are responsible for the up keeping of the equipment. It

becomes more productive, safer and easier to operate and even looks nicer.

The participation of people, who are not familiar with the equipment and its

operation, enriches the result because their observations are in many cases

more objective than those of the people who live with equipment in a daily

basis.

6. Routine Maintenance Concept (Between 1970 to 1985)

It is the Simplest form of part maintenance but very essential which Carrying

out minor maintenance job such as cleaning, lubrication, inspection, minor

adjustment of pressure, flow, tightness, etc. or inspection of bearing, belts,

coupling, joints, foundations, bolts, earthings, etc. at regular intervals.

Small/Critical effects using such inspection are rectified immediately. It is not

need base, all equipment are inspected. It may consider small portion of

preventive maintenance. It needs very little investment in terms of time and

money. The duration routine maintenance is generally so small that it does

not affect the output of machine appreciably. However, the cost of not doing

routine maintenance may be very high as a small develop in big and

catastrophic failure.

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Fig. 1.3 Comparison of Breakdown, Predictive and Routine Maintenance

7. Computerized Maintenance Management System – CMMS (After 1985)

It is also known as Enterprise Asset Management and Computerized

Maintenance Management Information System (CMMIS). A CMMS software

package maintains a computer database of information about an

organization’s maintenance operations. This information is intended to help

maintenance worker do their jobs more effectively and to help management

make informed decisions. CMMS data may also be used to verify regulatory

compliance. CMMS package may be used by any organization that must

perform maintenance on equipment, assets and property. CMMS packages

can produce status reports and documents giving details or summaries of

maintenance activities. The more sophisticated the package, the more

analysis facilities are available. Many CMMS packages can be either web

based meaning they are hosted by the company selling the product on an

outside server or LAN based meaning that the company buying the software

hosts the product on their own server.

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6

1.1.2. Selection criteria for selection of Maintenance Concept

in Industries

Presently many maintenance concepts are in use in industries and selection

has to be made depending the need, complexity and reliability needed and

also considering techno-economics. Criteria must consider are-

1) Work Procedures (Maintenance and Operation etc.)

2) Problems, Defect and Fault Reports

3) Work Schedules, Job Orders etc.

4) Work History

5) Assets

6) Inventory

7) Finance, etc.

1.2. Maintenance Agency

“Maintenance Agency is the Organization provides service to the Industries to

maintain their asset.” Asset involves infrastructure, machinery, equipment,

hardware, software, etc. Here consider maintenance agency which deals with

machinery and equipment means mechanical elements any industry.

Maintenance agency involves managing function of maintenance. Maintaining

equipment in the field has been a challenging task since the beginning of

industrial revolution. Since then, a significant of progress has been made to

maintain equipment effectively in the field. As the engineering equipment

becomes sophisticated and expensive to produce and maintain, maintenance

work has face even more challenging situations to maintain effectively such

equipments in industrial environment, And Maintenance agency are outside

agency doing this work for any industry.

1.2.1. Why Maintenance agency is needed?

In Industries now a day’s various companies such as Fanuc, Siemens,

Motorola, etc. machines are used such as lathe machine, milling machine,

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shaper machine, drilling machine, etc. Now a day’s machine are two type

numerical and computer control CNCs machine which are more complicated

in nature. Today robot used also increased and that’s why in industry various

robotic machines or equipment are used such as welding robot, painting

robot, etc. All machineries run due to electricity that’s why maintaining of

generator and motor is also important aspect.

Other than these complex machineries on work station to transfer work in

progress material from one work station to another various different type of

material conveying system are used and sometime it is particularly made for

that industry only.

To deal with this type of modern machineries and equipments maintenance

experience maintenance department is needed by any industries which can

able to deal with any type of maintenance problem.

Small scale industries are purchased advance machinery such as CNCs,

robot, etc. to survive in market by increasing productivity with higher quality

but these industries don’t have separate maintenance department or expertise

worker who can deal with machine problems so these industries mostly deals

with breakdown maintenance concept which increase downtime of machine

and affect overall productivity of industries. Thus these industries always need

outside support for their machineries maintenance.

Medium scale industries have separate maintenance department or not but

these industry people are not that much expertise like particular maintenance

agency people who can able to solve any problem related to maintenance

because Industry maintenance department people deals with limited existing

machinery so don’t have more knowledge about new machinery and due to

less man power sometime these people deals with other function of Industry

also other than maintenance. Industry can give training to their maintenance

department people but if industry gives more focus on maintenance training

than its affect on industry productivity, thus these industries always need

outside support for their machineries maintenance.

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Large scale industries mostly have well expertise separate maintenance

department but these industries always try to cut their cost, so if these

industries find better option in terms of maintenance agency for maintenance

so in place of go to the maintenance department where monthly salary and

training expenses are needed these industries like to go with expertise

maintenance agency out sourcing services so that these industries more

focus on effective production in place of machinery maintenance.

Maintenance agency is important aspect because,

1. It lowers down production unit cost for industries.

2. It minimizes downtime for industries.

3. It improves total availability of system in any industry.

4. It extended useful life of equipment which used in industries.

5. It increases safety of personals who work in industries.

6. It helps in reducing overtime in industries which reflect in terms of cost

saving.

7. It provides better process stability in any industry.

8. It reduce maintenance part inventory which stored in industry if that

industry have maintenance department.

Actually equipment or machinery manufacturer provides maintenance

services for their products during warranty period and after that through

contract, But now a day’s industries are having more than one company

machinery or equipment for example same industry having lathe machine of

two different company Fanuc and Siemens so after completing of warranty

period doing contract of maintenance with more than one company its quite

difficult where these manufacturer service station are not located at nearer

place (In Gujarat all machine manufacturer service station are located in

Ahmadabad so for industry which located in Ahmadabad its feasible to use

manufacturer maintenance services) and take almost two days to come after

complaining which affect production. Thus after completing warranty period all

industries are like to go with one maintenance agency who is expertise in

maintenance which provide them all type of machinery and equipment

maintenance service for any manufacturer machinery and equipment, But

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these type of maintenance agency is not present in India actually in world for

machinery and equipment maintenance that’s why this business idea to start

maintenance agency is blue ocean business idea where maximum chances

for success.

1.3. Maintenance Agency Service Mix

1.3.1. Product

Maintenance agency should provide all machinery maintenance services

under one roof on 24X7 bases to industries for various maintenance problems

and also provide services in term of annual maintenance contract.

13.2. Place

This maintenance agency should start in Baroda city in initial basis and based

on success in future will try to increase service area from Baroda region to

Baroda District and then will try to capturing whole Gujarat then move towards

India.

Why Maintenance agency in Baroda?

Baroda is headquarters of Baroda District and after Ahmadabad and Surat

now main attraction for investor for further development. In Baroda District

total 15 Industrial area (GIDC) where total 5466 no. of units in production.

The industrial clusters include Chemicals & fertilizers, Pharmaceuticals,

Biotechnology, Cotton Textiles, Machine Tools, Glass, Engineering, Tobacco,

Fisheries and Dairy. There are over 18,000 small scale industrial units in

Baroda, in which repairs & services units are maximum in numbers

accounting nearly 5,713 units, 1,923 textiles, 1,615 metal works, 1,357

chemicals, 1,316 equipments\machinery, 1,145 rubber & its products, 1,047

food products and 3,840 are misc. units . Other key small scale industries

include textiles, metal works, chemicals, equipments, rubber products and

food products etc.885 glass, ceramics & cement, 829 equipments related to

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electricity, 753 papers & its products, 601 non ferrous metals, 543 leathers,

173 tobacco and 56 are misc. units. In Baroda district 18067 units are

registered and total investment is of Rs. 223250.54 lakhs.

While in Baroda region 15534 units are registered and total investment is of

Rs. 99435.21 lakhs, which shows lots of business opportunity for

maintenance agency in Baroda region where small scale, medium scale and

large scale means all type of Industries having their present and more

investor are move towards Baroda region for investment and building strong

industrial culture.

For maintenance agency for machinery maintenance machine spare part are

required and machine spare part main market is located in Ahmadabad which

near to Baroda so to arrange required spare part in shorter period of time is

easy if maintenance agency is located in Baroda and in Gujarat all machine

manufacturer industries service station are located in Ahmadabad so for

industry machine which maintenance is quite difficult for maintenance agency

than if maintenance agency is in Baroda can used out source service of main

machine manufacturer easily.

1.3.3. Process

Any Industry belong in Baroda region can contact this maintenance

agency for any type of maintenance problem in their machinery or

equipment.

Any Industry can registered maintenance problem to maintenance

agency through mail, through website, through call or through

personnel contact for any type of problem.

Maintenance problems registration should open for 24x7 and

maintenance agency should provide services 24x7.

For any maintenance problem, that industry should get response in

terms of visit from maintenance agency within 24 hours after

registering their maintenance problem.

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During visit of particular industry maintenance agency experts should

try to solve problem at a time and if at that time it is not possible to

solve the problems at a time then always try to solve problem as early

as possible by giving correct estimated time.

After repairing or solving any problem, Maintenance agency person

should verify it from that industry person, take that person signature on

document and collect those service charges.

Maintenance agency should take annual contract for maintenance if

any industry wants, Annual contract on two ways-

- Half annual Contract where provide servicing facility to all

machinery but spare part or other replacement charges are

chargeable.

- Full annual contract where provide all type of services including

servicing of machinery to replacement in one predefined annual

amount only.

1.3.4. Price

To get success in Baroda region maintenance agency will take minimum

charges compare to other manufacturer charges and provide all machinery

maintenance services. Also maintenance agency should provide instalment

payment option.

Maintenance agency experts should visit particular industry after their problem

registration, and which charges will be Rs. 450/ machine and Rs. 800/ two

machines to that industry to check problem and correct problem if possible.

This rate should be changed based on market.

Other charges for maintenance like spare part and other out sourcing services

should be taken based on those market values.

To built long term relation maintenance agency should provide discount to

regular clients. If industry will increase service level then maintenance agency

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12

should provide them more benefit in terms of additional discount in service

charges.

1.3.5. Promotion

To get success marketing is important aspect, and this maintenance agency

will used direct marketing approach and mailed relevant information and

website link with contact information to all industries mail id and also as

physical evidence send pamphlet to all industries in Baroda region.

1.3.6. People

In service Industry trust towards service provider is important aspect and

people who work as service provider can build trust towards company in the

mind of consumer.

Here in this maintenance agency people means employee of agency are

required to attain or register customer maintenance complains, visit customer

place and using expertise solve customer maintenance problem.

If Maintenance agency employee behaves in such way and creating

impression in the mind of customer in such way about maintenance agency

service then customer will buy again and again maintenance agency service

and convert it into annual contract in terms of long term professional

relationship.

1.3.7. Physical Evidence

In Maintenance agency services are provided at place of customer so

physical evidence are not matter more compare to other service industry, In

terms of physical evidence one shop is required at ground floor where storing

agency spare parts and tool; and where agency person sit and received order

in terms of maintenance problem through internet or telephone.

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1.4. Maintenance Agency Cost

1.4.1. Fixed Cost/ Investment

To start any business initial amount is required for investment and to start

maintenance agency as shown in Table 1.1. Rs. 746500 is required as fixed

initial cost.

Table 1.1 Maintenance Agency Fixed Cost or Initial Investment

unit Rs.

Shop Deposit - 50000

Website charges - 15000

Toolbox 3 15000

Hand Drill 3 10000

Welding Machine 3 26500

Grinder/cutter 3 6000

Hacksaw 3 6000

Computer 1 22000

Printer 1 4500

Shop Furniture/ chairs - 30000

Vehicles

Tata Chhota Hathi 2 560000

Cycle 1 1500

Total 746500

1.4.2.. Variable Cost

To run any business and deal with it expanse certain amount is required on

monthly bases; and here as shown in Table 1.2. Rs. 123400 is required as

monthly working capital money to run maintenance agency.

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Table 1.2 Maintenance Agency Variable Cost per month

Rs.

Shop Rent 5000

Petrol/ Diesel 8000

Electricity Bill 2500

Telephone Bill 3000

Stationary Cost 500

Employee Salary

Diploma Mechanical

>15 yr experience 38500

>1 yr experience 5000

Diploma electrical

>2 yr experience 6000

Computer operator 4500

Telephone operator 4500

Wages

ITI

>10 yr experience 320*2 Worker 19200

>5 yr experience 255*2 Worker 15300

Helper 190*2 Helper 11400

Total (Rs. Required per Month) 123400

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Chapter 2

Secondary Data Analysis

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15

2.1. Literature Review

1. The Economic Times (2013, November 25), “RIL shuts secondary unit at

its Jamnagar refinery for planned maintenance” which suggest

importance of maintenance for any industry as big industry like Reliance

close it one unit where diesel is produced and which affect Reliance

diesel stock.

2. Dilanthi M G S (2013) studied on improving productivity with maintenance

function in manufacturing industry of Sri Lanka: literature review.

The researcher reviewed literature and develop strategy to improve

productivity in manufacturing industry in country by improving

maintenance operation.

3. Department of Education and Early Childhood Development (2013)

measured feasibility of secondary education in to the broader

Sandringham area and concluded that high level of interest in discussion

about secondary education options in the Sandringham and Beaumaris

area.

4. Rexroad APG (2013) checked Colorado Springs public market feasibility

and find out that the members of the Colorado Springs Public Market

Project (CSPMP) founding organization, become increasingly exposed as

the effort becomes more and more real. Awareness and support are

important elements to making the Public Market a success. The

establishment of the market is a long and sometimes arduous process

that the public generally has little tolerance for. In order to sustain fickle

public attention without the burden of detail, communication of progress

and public involvement should be carefully managed. This is increasingly

difficult when factored to the demands of public financial support.

5. Ghaffari H et al (2012) studied on alax copper/gold feasibility projects in

Kamloops, British Columbia.

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16

The researchers find out that documentation for the drilling campaigns

completed in the Ajax area before 1980 is limited or not available.

Because of the limited documentation, the pre-1980 drill campaigns were

not included in the 2011 resource model database. No factors were

identified with the data collection from the drill programs used that could

affect Mineral Resource or Mineral Reserve estimation. The Ajax deposits

have been sampled at drill-hole spacing appropriate for a property at this

level of development. Because of the irregular shape of the mineralized

body, the orientation of the mineralization with respect to drill intercepts is

unknown. The Ajax concentrator has been designed to produce a

saleable copper concentrate. The complete processing circuit has been

designed according to metallurgical test work conducted over the years

and proven equipment.

6. Tito D A et al (2012) studied on feasibility analysis for a manned mars

free return mission in 2018.

The researchers concluded that a manned Mars free-return mission is a

useful precursor mission to other planned Mars missions. It will develop

and demonstrate many critical technologies and capabilities needed for

manned Mars orbit and landing missions. The technology and other

capabilities needed for this mission are needed for any future manned

Mars missions. Investments in pursuing this development now would not

be wasted even if this mission were to miss its launch date.

7. Riccetti S (2011) studied on Product safety and equipment reliability in the

food industry through maintenance engineering.

The researcher reviewed that Failure mode and effect analysis is

important aspect for reducing maintenance problem.

8. Tahboub K K (2011) studied on an assessment of maintenance practice

and problem in Jordanian industries.

The researcher concluded that maintenance problem is mainly because

of unavailability of spare part and lack of specialities in maintenance field.

Page 29: Feasibility of Maintenance Agency in Baroda

17

9. Pophaley M and Vyas R K (2010) studied on plant maintenance

management practices in automobile industries: A retrospective and

literature review.

The researchers concluded that the current work gives a broader view of

maintenance practices and research carried across the globe, but now

maintenance is the widely accepted philosophy for competitive

advantage.

10. Bliss G (2010) studied on feasibility study of services needed for aging in

place in steuben country.

The researcher find out that there is a general lack of

knowledge/understanding in people who might use the services and

about services currently being provided by the Office for the Aging and

other area service providers. There are further innovative in delivery

required for services.

11. Kalensky D and Johnson F (2010) studied on technical feasibility study

Carbon Monoxide sensing safety system foe appliances.

The researchers concluded that CO sensors would be able to operate in

the combustion chamber or the flue of a gas-fired appliance for a length of

time to be used for safety or combustion control. Smaller surfaces

improve heating and cooling times and reduce the power requirements.

12. AECOM Australia Pvt. Ltd. (2010) done pre feasibility study for a solar

power precinct and concluded that large scale solar projects are unlikely

to be financially viable for the next 10-20 years and it is hard to see a

developer making financial investments in large scale solar power plants

in the short term.

13. Transportation Economics and Management Systems, Inc. (2010)

Measured feasibility of High speed rail and concluded that The feasibility

of high-speed rail in Colorado represents a tremendous transportation

and development opportunity for the Colorado and the Rocky Mountain

west High-speed rail can provide a more efficient and cost-effective

Page 30: Feasibility of Maintenance Agency in Baroda

18

means of connecting Colorado’s commercial centers with one another as

well as the national and international destinations served by the state’s

airports. High-speed rail also provides a more reliable, enjoyable and

convenient way for tourists from all over the globe to get to some of the

most important and popular recreational resort destinations in North

America and the world. The economic benefits of such an investment are

considerable. While the costs of implementing high-speed rail are large,

as would be expected given the mountainous conditions in the I-70

corridor ($16 billion to $21 billion for service in both corridors), analysis

indicates that investing in high-speed rail would generate an impressive

$33 billion of benefits to Colorado. These benefits are generated by the

rapid growth of the state and its need to accommodate a doubling of its

population over the next 30-40 years. High-speed rail is by no means the

silver bullet that solves all of Colorado’s transportation challenges. But, as

this study clearly shows, it is a critical part of that solution and will be

invaluable to the growth of the state’s economy.

14. Wilson R J (2010) studied on 2009‐2010 Feasibility and Market Research

Study for Commercial Hop Production in New England.

The researcher determined that is feasible to grow a commercial hop crop

in New England. There is sufficient demand, there is sufficient price

elasticity, and there is now the information, technology, supplies, and

equipment available to meet the needs of a 1‐10 acre commercial hop

yard.

15. Fonollera D L (2009) studied on feasibility study, project plan and

business plan.

The researcher concluded that feasibility study is used as a means of

exploring the viability of an idea. The viability of an idea, its accuracy and

its reliability depends on the information gathered through market

research and analysis which used mainly to support project feasibility.

16. Lepelle-Nkumpi Local Municipality (2009) studied goat meat production

feasibility study and find out that each co-operative member and/or

Page 31: Feasibility of Maintenance Agency in Baroda

19

worker will be required to register for a goat management-training course

offered by the Agricultural Research Council of South Africa.

17. Sautter F C et al (2008) studied on an integrated Maintenance

management information system is the key to enabling condition based

maintenance.

The researchers find that the maintenance management information

systems are the foundation for the data that support effective

management decision.

18. Reis N, Sydness G S and Barton D N (2007) studied feasibility of

payment for water services.

The researchers concluded that In India, PWS programmes that increase

employment opportunities by stimulating the demand in agricultural labour

are likely to have the greatest benefits for the poor. If too many of the

constraints consider in this work are present in a watershed, market-like

arrangements will not be likely to offer the optimal way of achieving

environmental conservation and solving water-related conflicts.

19. Hopwood V et al (2007) studied feasibility of the prevalence of home

education in England.

The researchers find out that it is not feasible to reliably ascertain the

prevalence of home educated children through a national survey of LAs

and home education organizations (as a route through which to access

parents/careers). This is because despite improvements in LA records,

there could be significant numbers of home educated children who are

not known to an LA.

20. Pe’re’setal F and Noyes D (2006) studied on envisioning e-logistics

developments: Making spare parts in situ and on demand: State of art

and guideline for future developments.

The researchers expressed the problem of supplying the spare part by

automobile manufacturers. Thus effective maintenance system need is

further increases.

Page 32: Feasibility of Maintenance Agency in Baroda

20

21. Firmansyah A, Veronika A and Trigunarsyah B (2006) studied on risk

analysis in feasibility study of building construction projects.

The researchers find out that Feasibility study analysis with calculating

risk factors cause a decrease in investment feasibility parameters and if

treatments are done against the risks, hence the parameters will

increase. Risk factors give a significant influence to the investment plan of

research object. Risk factors that have the highest influence to the

construction project are those that have relation with economical and

financial aspect. The economic factors that have high sensitivity of

investment feasibility are loan interest rate and increments of sales.

Meanwhile, the factors that have low sensitivity are inflation changes and

equity percentage.

22. Batson R G and Wan Q (2004) studied on quality of assembly assurance.

The researchers find out that Quality of assembly is complex issue and

four management systems are important namely production, quality,

maintenance and human resources.

23. Chelbi A and Aitkadi D (2004) studied on analysis of a

production/inventory system with randomly failing production unit

submitted to regular preventive maintenance

The researcher concluded that a repairable production unit subject to a

random failures, such as in automobile manufacturing, a mathematical

model has been developed to support maintenance strategy.

24. Batson R, Hall D and Hauer D (2001) studied on the role of equipment

maintenance in lean assembly system.

The researchers concluded that the excellence in equipment

maintenance is essential to lean assembly.

25. Hoagland W H and Williamson L (2000) overviewed feasibility studies.

Page 33: Feasibility of Maintenance Agency in Baroda

21

The researcher concluded that a feasibility study is an important tool for

making the right decisions in starting of new business and a wrong

decision at this point often leads to business failure.

26. Wadswoeth B (1999) studied on factor affecting forestland conversion

and the feasibility of cooperative land management efforts at king

countries urban/rural interface.

The researcher concluded that King County's urban/rural interface

presents a complex problem for planners and natural resource managers.

The changing population and the associated fragmentation of large

ownerships into small residential home sites has resulted in an increasing

spectrum of landowner values and objectives that makes planning for the

interface a difficult and potentially frustrating task. If King County leaders

are committed to preserving the forest land base, they cannot ignore the

problem, and they must act to set policy with this commitment in mind.

Hopefully, this research can provide direction for King County’s planners

and elected officials as they strive to work with forest landowners at the

urban/rural interface to preserve forestland. The issue of forestland

conversion at the urban/rural interface is not unique to King County, and

many of the results from this study may well apply to other interface areas

throughout the country.

27. Novak L R (1996) studied on guiding way for market feasibility study.

The researcher concluded that Market and feasibility studies are quite

complex. The best way to learn about market and feasibility studies, like

most things, is by doing. If you don't have the opportunity to work on a

study acquire and review a couple. The importance of market studies is

not going to decrease. Capital is becoming more difficult to acquire and

regulatory considerations are becoming more complex. In the competitive

world of real estate development, the investor with the best information is

going to be the most successful.

28. Murry R J and Mitchell B F (1994) studied on cost saving from practical

preventive maintenance program.

Page 34: Feasibility of Maintenance Agency in Baroda

22

The researchers showed the importance of predictive maintenance in

effective maintenance management.

29. Meade B W and Hunsucker D Q (1991) studied on Cost effective

maintenance Contracting – A literature review.

The researchers find out that routine maintenance approaches reduce

maintenance problem in highways which done on activity based.

30. Reichelderfer K (1984) studied on factor affecting the economic feasibility

of the biological control of the weeds.

The researcher the individual or group responsible for application and/or

maintenance of the potential bio control approach perceive the target

weed problem, the economic activity impacted by the weed has high

value, and the biological control agent’s effect on the weed is neither slow

nor highly variable, There either no current affective control available for

the target weed or current control is very costly and the net economic

returns to users of the bio control tactic are expected to equal or exceed

those for alternative control.

Page 35: Feasibility of Maintenance Agency in Baroda

23

2.2

. C

on

ten

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naly

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Ta

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. C

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lysis

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297

0

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Srila

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No. 1

2

3

Page 36: Feasibility of Maintenance Agency in Baroda

24

Ta

ble

2.1

(C

on

tin

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...)

Re

ma

rk

NA

NA

Ga

p

Re

sea

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is

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me

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g

ma

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ag

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sib

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is

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d

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me

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g

ma

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sib

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g

Org

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incre

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e

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a

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effo

rt

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s

mo

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and

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are

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and

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g t

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Pu

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is

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incre

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facto

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we

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inclu

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in

the

2011

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No. 4

5

Page 37: Feasibility of Maintenance Agency in Baroda

25

Ta

ble

2.1

(C

on

tin

ue

...)

Re

ma

rk

NA

NA

NA

Ga

p

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sea

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is

no

t

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d

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me

asu

rin

g

ma

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nan

ce

ag

en

cy

fea

sib

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.

Ma

inte

nan

ce

is

a

n

imp

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an

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spe

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for

co

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s

gro

wth

bu

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no

m

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ma

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ag

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pre

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ag

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wh

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tim

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will

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No. 6

7

8

Page 38: Feasibility of Maintenance Agency in Baroda

26

Ta

ble

2.1

(C

on

tin

ue

...)

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ma

rk

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NA

NA

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p

Ma

inte

nan

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is

ne

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ssa

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ad

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bu

t no

ma

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ma

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pre

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d

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me

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g

ma

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ag

en

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fea

sib

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.

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is

no

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d

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t fo

r

me

asu

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g

ma

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ag

en

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fea

sib

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.

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din

g

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e

cu

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ork

g

ive

s

a

bro

ad

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w o

f m

ain

ten

an

ce

pra

ctice

s

an

d

resea

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ca

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d a

cro

ss t

he

glo

be

, but

no

w

ma

inte

nan

ce

is

th

e

wid

ely

a

ccep

ted

p

hilo

sop

hy

for

co

mp

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ad

va

nta

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La

ck o

f kno

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dge

in

pe

op

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wh

o

mig

ht

use

th

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se

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and

ab

ou

t se

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cu

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ntly

be

ing

p

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b

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e O

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Ag

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an

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rovid

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.

CO

se

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in

th

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co

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ustion

ch

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lue

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th o

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fo

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fety

or

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F

Sr.

No. 9

10

11

Page 39: Feasibility of Maintenance Agency in Baroda

27

Ta

ble

2.1

(C

on

tin

ue

...)

Re

ma

rk

NA

NA

NA

Ga

p

Re

sea

rch

is

no

t

ca

rrie

d

ou

t fo

r

me

asu

rin

g

ma

inte

nan

ce

age

ncy fea

sib

ility

.

Re

sea

rch

is

no

t

ca

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d

ou

t fo

r

me

asu

rin

g

ma

inte

nan

ce

age

ncy fea

sib

ility

.

Re

sea

rch

is

no

t

ca

rrie

d

ou

t fo

r

me

asu

rin

g

ma

inte

nan

ce

age

ncy fea

sib

ility

.

Fin

din

g

La

rge

sca

le

so

lar

pro

jects

a

re

un

like

ly t

o b

e f

ina

ncia

lly v

iab

le f

or

the

n

ext

10

-20

ye

ars

an

d

it

is

ha

rd to

see

a de

ve

lope

r m

akin

g

fin

an

cia

l in

ve

stm

ents

in

la

rge

sca

le

so

lar

po

we

r p

lan

ts

in

the

sh

ort

te

rm.

Inve

sting

in

hig

h-s

pee

d r

ail

wo

uld

gen

era

te a

n i

mp

ressiv

e $

33

bill

ion

of b

en

efits

to

Co

lora

do

.

Fe

asib

le

to

gro

w

a

co

mm

erc

ial

hop

cro

p i

n N

ew

Eng

lan

d.

The

re

is

su

ffic

ien

t de

ma

nd

, th

ere

is

su

ffic

ien

t p

rice

e

lasticity,

and

the

re

is

no

w

the

info

rma

tion,

techn

olo

gy,

su

pp

lies,

and

equ

ipm

en

t ava

ilab

le to

m

ee

t th

e

nee

ds o

f a 1

‐10

acre

co

mm

erc

ial

hop

ya

rd.

Te

st

Ap

pe

are

d

NA

NA

NA

Sa

mp

le

Siz

e

NA

303

8

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ntr

y

Au

str

alia

US

A

UK

Ye

ar

201

0

201

0

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tho

r

AE

CO

M

Au

str

alia

P

vt.

Ltd

.

Tra

nspo

rtation

Econ

om

ics

and

Ma

nag

em

ent

Syste

ms,

Inc.

Wils

on

R J

Sr.

No.

12

13

14

Page 40: Feasibility of Maintenance Agency in Baroda

28

Ta

ble

2.1

(C

on

tin

ue

...)

Re

ma

rk

NA

NA

NA

Ga

p

To

da

y in

the

wo

rld

no

m

ach

ine

ma

inte

nan

ce

age

ncy e

xis

ting

so

to

che

ck

via

bili

ty

of

ma

inte

na

nce

age

ncy,

its

fea

sib

ility

stu

dy is

ne

ce

ssa

ry.

Re

sea

rch

is

no

t

ca

rrie

d

ou

t fo

r

me

asu

rin

g

ma

inte

nan

ce

age

ncy fea

sib

ility

.

Ma

inte

nan

ce

age

ncy i

s r

eq

uired

for

ma

na

gin

g

ma

inte

nan

ce

info

rma

tio

n.

Fin

din

g

Fe

asib

ility

stu

dy is

u

sed

a

s a

me

an

s o

f e

xp

loring

th

e v

iab

ility

of

an i

dea

. T

he

via

bili

ty o

f an

ide

a,

its

accu

racy

an

d

its

relia

bili

ty

de

pe

nd

s

on

th

e

info

rma

tio

n

ga

the

red

th

rough

ma

rke

t re

sea

rch

an

d a

na

lysis

wh

ich

u

sed

m

ain

ly to

su

pp

ort

pro

ject fe

asib

ility

.

Ea

ch

co

-ope

rative

me

mbe

r

and

/or

wo

rke

r w

ill b

e r

equ

ired

to

reg

iste

r fo

r a

go

at

ma

nag

em

ent-

tra

inin

g

co

urs

e

offe

red

b

y

the

A

gricu

ltu

ral

Re

sea

rch

C

ou

ncil

of

Sou

th

Afr

ica

.

T

he

m

ain

ten

an

ce

ma

nag

em

ent

info

rmation

syste

ms a

re t

he

fou

nd

atio

n f

or

the

da

ta t

ha

t sup

po

rt e

ffe

ctive

ma

inte

nan

ce

de

cis

ion

.

Te

st

Ap

pe

are

d

NA

NA

NA

Sa

mp

le

Siz

e

NA

NA

NA

Cou

ntr

y

Ph

ilipp

ine

s

So

uth

Afr

ica

US

A

Ye

ar

200

9

200

9

200

8

Au

tho

r

Fo

no

llera

D L

Lep

elle

-Nku

mp

i

Lo

ca

l

Mu

nic

ipa

lity

Sa

utte

r F

C e

t a

l

Sr.

No.

15

16

17

Page 41: Feasibility of Maintenance Agency in Baroda

29

Ta

ble

2.1

(C

on

tin

ue

...)

Re

ma

rk

NA

NA

NA

Ga

p

Re

sea

rch

is

no

t

ca

rrie

d

ou

t fo

r

me

asu

rin

g

ma

inte

nan

ce

ag

en

cy

fea

sib

ility

.

Re

sea

rch

is

no

t

ca

rrie

d

ou

t fo

r

me

asu

rin

g

ma

inte

nan

ce

ag

en

cy

fea

sib

ility

.

Scop

e

for

Ma

inte

nan

ce

ag

en

cy

wh

ich

ha

ve

a

ll

ne

ce

ssa

ry

spa

re

pa

rt

at

the

tim

e

of

ma

inte

nan

ce

.

Fin

din

g

PW

S

pro

gra

mm

es

that

incre

ase

e

mp

loym

ent

opp

ort

un

itie

s

by

stim

ula

ting

the

d

em

and

in

ag

ricu

ltu

ral

lab

ou

r a

re

like

ly

to

ha

ve

th

e

gre

ate

st

be

ne

fits

fo

r th

e p

oo

r

peo

ple

.

it

is

not

fea

sib

le

to

relia

bly

asce

rta

in

the

p

reva

len

ce

of

ho

me

ed

uca

ted

ch

ildre

n

thro

ugh

a

n

atio

na

l su

rve

y

of

LA

s

and

ho

me

e

du

cation

org

an

iza

tio

ns

Au

tom

ob

ile

ma

nu

factu

rer

facin

g

pro

ble

m

in

su

pp

lyin

g

sp

are

pa

rt.

Thu

s

effe

ctive

ma

inte

nan

ce

syste

m

ne

ed

is

incre

ase

s.

Te

st

Ap

pe

are

d

NA

NA

NA

Sa

mp

le

Siz

e

NA

NA

NA

Cou

ntr

y

Ind

ia

UK

NA

Ye

ar

200

7

200

7

200

6

Au

tho

r

Re

is N

Sydn

ess G

S

Ba

rton

D N

Ho

pw

oo

d V

O’N

eill

L

Ca

str

o G

Ho

dgson

B

Pe

’re

’seta

l F

Noye

s D

Sr.

No.

18

19

20

Page 42: Feasibility of Maintenance Agency in Baroda

30

Ta

ble

2.1

(C

on

tin

ue

...)

Re

ma

rk

NA

NA

NA

Ga

p

Ma

inte

nan

ce

ag

en

cy

fea

sib

ility

stu

dy

is

ne

ce

ssa

ry t

o m

inim

ize

its r

isk.

Ma

inte

nan

ce

is

a

n

imp

ort

an

t a

spe

ct

for

ma

nag

em

ent

bu

t no

ma

ch

ine

ma

inte

na

nce

age

ncy

pre

sen

t in

wo

rld

.

To

d

eve

lop

e

ffe

ctive

ma

the

ma

tica

l m

od

el

for

ma

inte

na

nce

ma

ch

ine

ma

inte

na

nce

age

ncy is r

equ

ired

.

Fin

din

g

Ris

k fa

cto

rs g

ive

a

sig

nific

ant

influ

en

ce

to

th

e

inve

stm

ent

pla

n

of

resea

rch

o

bje

ct.

Ris

k

facto

rs

that

ha

ve

th

e

hig

he

st

influ

en

ce

to

th

e

con

str

uction

pro

ject

are

th

ose

th

at

ha

ve

rela

tion

w

ith

e

con

om

ica

l and

fin

an

cia

l a

spe

ct.

Qu

alit

y o

f asse

mb

ly is c

om

ple

x

issu

e

an

d

fou

r m

an

ag

em

ent

syste

m

are

im

po

rtan

t n

am

ely

pro

du

ction

, qu

alit

y,

ma

inte

nan

ce

an

d

hu

man

reso

urc

es.

A

repa

ira

ble

p

rod

uctio

n

un

it

su

bje

ct

to

a

ran

do

m

failu

res,

su

ch

a

s

in

au

tom

ob

ile

ma

nufa

ctu

ring

, a

math

em

atica

l

mo

de

l h

as b

ee

n d

eve

lop

ed

to

su

pp

ort

ma

inte

na

nce

str

ate

gy.

Te

st

Ap

pe

are

d

NA

NA

NA

Sa

mp

le

Siz

e

NA

NA

NA

Cou

ntr

y

Th

aila

nd

US

A

US

A

Ye

ar

200

6

200

4

200

4

Au

tho

r

Firm

an

syah

A

Ve

ron

ika

A

Trig

una

rsyah

B

Ba

tso

n R

G

Wa

n Q

Ch

elb

i A

Aitkad

i D

Sr.

No.

21

22

23

Page 43: Feasibility of Maintenance Agency in Baroda

31

Ta

ble

2.1

(C

on

tin

ue

...)

Re

ma

rk

NA

NA

Ga

p

Ma

inte

nan

ce

is

a

n

imp

ort

an

t a

spe

ct

bu

t

no

m

ach

ine

ma

inte

nan

ce

ag

en

cy

pre

sen

t in

wo

rld

.

Re

sea

rch

is

no

t

ca

rrie

d

ou

t fo

r

me

asu

rin

g

ma

inte

nan

ce

ag

en

cy

fea

sib

ility

.

Fin

din

g

Th

e

exce

llen

ce

in

eq

uip

me

nt

ma

inte

na

nce

is

esse

ntia

l to

lea

n a

ssem

bly

. .

A

fea

sib

ility

stu

dy

is

an

imp

ort

an

t to

ol

for

ma

kin

g th

e

rig

ht

de

cis

ion

s

in

sta

rtin

g

of

ne

w

bu

sin

ess

an

d

a

wro

ng

de

cis

ion

at

this

po

int

often

lea

ds t

o b

usin

ess fa

ilure

.

Te

st

Ap

pe

are

d

NA

NA

Sa

mp

le

Siz

e

NA

NA

Cou

ntr

y

US

A

UK

Ye

ar

200

1

200

0

Au

tho

r

Ba

sto

n R

Ha

ll D

Ha

ue

r D

Ho

ag

land

W H

Will

iam

so

n L

Sr.

No.

24

25

Page 44: Feasibility of Maintenance Agency in Baroda

32

Ta

ble

2.1

(C

on

tin

ue

...)

Re

ma

rk

NA

NA

NA

Ga

p

Re

sea

rch

is

no

t

ca

rrie

d

ou

t fo

r

me

asu

rin

g

ma

inte

nan

ce

ag

en

cy

fea

sib

ility

.

To

lea

rn M

ain

tena

nce

age

ncy

fea

sib

ility

its

ne

ce

ssa

ry t

o m

ea

su

re

it

by

do

ing

m

ark

et

rese

arc

h.

Ma

inte

nan

ce

is

a

n

imp

ort

an

t a

spe

ct

for

ma

nag

em

ent

bu

t no

ma

ch

ine

ma

inte

na

nce

age

ncy

pre

sen

t in

wo

rld

.

Fin

din

g

Th

e

ch

an

gin

g

po

pu

latio

n

and

the a

sso

cia

ted

fra

gm

en

tation

of

larg

e

ow

ne

rsh

ips

into

sm

all

resid

en

tia

l ho

me

site

s

ha

s

resu

lted

in

an

in

cre

asin

g

sp

ectr

um

of

lan

do

wn

er

va

lue

s

and

o

bje

ctive

s

tha

t m

ake

s

pla

nn

ing

fo

r th

e

inte

rfa

ce

a

difficu

lt

and

p

ote

ntia

lly

fru

str

atin

g t

ask.

Th

e b

est

wa

y

to

lea

rn a

bo

ut

ma

rke

t a

nd

fe

asib

ility

stu

die

s,

like

mo

st th

ing

s, is

by d

oin

g.

the

im

po

rtan

ce

o

f p

red

ictive

ma

inte

nan

ce

in

e

ffe

ctive

ma

inte

nan

ce

man

ag

em

en

t

Te

st

Ap

pe

are

d

NA

NA

NA

Sa

mp

le

Siz

e

183

0

NA

NA

Cou

ntr

y

NA

US

A

US

A

Ye

ar

199

9

199

6

199

4

Au

tho

r

Wa

dsw

oe

th B

No

va

k L

R

Mu

rry R

J

Mitch

ell

B F

Sr.

No.

26

27

28

Page 45: Feasibility of Maintenance Agency in Baroda

33

Ta

ble

2.1

(C

on

tin

ue

...)

Re

ma

rk

NA

NA

Ga

p

Ro

utin

e

ma

inte

na

nce

lea

ds

ma

inte

na

nce

age

ncy

requ

ire

men

t

for

con

tinu

ou

s

ma

inte

nan

ce

wo

rk.

Re

sea

rch

is

no

t

ca

rrie

d

ou

t fo

r

me

asu

rin

g

ma

inte

nan

ce

ag

en

cy

fea

sib

ility

.

Fin

din

g

Ro

utin

e

ma

inte

na

nce

app

roa

ch

es

red

uce

ma

inte

nan

ce

p

rob

lem

in

hig

hw

ays

wh

ich

do

ne

on

activity b

ase

d.

Ind

ivid

ua

l o

r g

roup

re

sp

on

sib

le

for

ap

plic

atio

n

and

/or

ma

inte

nan

ce

o

f th

e

po

ten

tia

l

bio

co

ntr

ol

app

roa

ch pe

rce

ive

the ta

rget

weed

p

rob

lem

, th

e

econ

om

ic a

ctivity i

mp

acte

d b

y

the w

ee

d h

as h

igh v

alu

e,

and

the

b

iolo

gic

al

co

ntr

ol

age

nt’s

effe

ct

on

th

e w

ee

d is

ne

ithe

r

slo

w

no

r h

igh

ly

va

ria

ble

, and

the

ne

t e

co

no

mic

re

turn

s

to

use

rs of

the

b

io co

ntr

ol

tactic

are

expe

cte

d

to

equ

al

or

excee

d

tho

se

fo

r a

lte

rna

tive

co

ntr

ol.

Te

st

Ap

pe

are

d

NA

NA

Sa

mp

le

Siz

e

NA

NA

Cou

ntr

y

US

A

US

A

Ye

ar

199

1

198

4

Au

tho

r

Me

ede

B W

Hu

nsu

cke

r D

Q

Reic

he

lde

rfer

K

Sr.

No.

29

30

Page 46: Feasibility of Maintenance Agency in Baroda

34

2.3. Research Gap

Literature Review Conclusion:

Scope of Maintenance is increasing to get competitive advantage.

Maintenance management support management to take effective

management decision and for effective maintenance management

computer based maintenance information system and mathematical

model is required now a days. In Maintenance machine spare part

availability and maintenance person expertise is major problem.

Maintenance is important for any industry as big industry like Reliance

close it one unit where diesel is produced and which affect Reliance diesel

stock.

Maintenance is important aspect for industries but today in world no

machinery maintenance agency presents which provides all type of

expertise, 24x7 availability for all type of machinery under one roof.

So here try to find out this type of maintenance agency is feasible in actual

industrial environment or not based on industries review.

Page 47: Feasibility of Maintenance Agency in Baroda

Chapter 3

Signification of Study

Page 48: Feasibility of Maintenance Agency in Baroda

35

1. This study is used to know which types of machinery are mostly used in

Baroda region.

2. This study is help to know the intention of the existing industries towards

services provide by maintenance agency.

3. This study is help to know the interest of the existing industries in services

provided by maintenance agency.

4. This study is help to know the perception of the existing industries towards

maintenance agency.

5. This study is help to know existing industries purchasing attitude towards

service provide by maintenance agency.

6. This study is help to measure profitability of maintenance agency based on

responses.

Page 49: Feasibility of Maintenance Agency in Baroda

Chapter 4

Research Methodology

Page 50: Feasibility of Maintenance Agency in Baroda

36

4.1. Problem Statement

“To study the feasibility of Maintenance agency in Baroda.”

4.2. Objective of the Study

1. To know the intention of the existing industries towards services

provide by maintenance agency.

2. To know the interest of the existing industries in services provided by

maintenance agency.

3. To know the perception of the existing industries towards maintenance

agency.

4. To know existing industries purchasing attitude towards service provide

by maintenance agency.

5. To measure profitability of maintenance agency based on responses.

4.3. Research Hypothesis

Intension

1 H0: Existing industries are not having positive intension towards

maintenance agency services.

H1: Existing industries are having positive intension towards

maintenance agency services.

2 H0: Company Intension towards Maintenance agency services is

not independent of the type of Industry and Company annual

maintenance budget.

H1: Company Intension towards Maintenance agency services is

independent of the type of Industry and Company annual

maintenance budget.

Page 51: Feasibility of Maintenance Agency in Baroda

37

Interest

3 H0: Company interest level towards Maintenance agency

services is not independent of the type of Industry and

Company annual maintenance budget.

H1: Company interest level towards Maintenance agency

services is independent of the type of Industry and Company

annual maintenance budget.

4 H0: Existing industries are not interested in services provided by

maintenance agency.

H1: Existing industries are interested in services provided by

maintenance agency.

Perception

5 H0: Existing industries are not having good perception towards

maintenance agency.

H1: Existing industries are having good perception towards

maintenance agency.

6 H0: Company Perception towards Maintenance Agency is not

independent of the type of Industry and Company annual

maintenance budget.

H1: Company Perception towards Maintenance Agency is

independent of the type of Industry and Company annual

maintenance budget.

Attitude

7 H0: There is no significant difference among type of Industry or

company annual maintenance budget regarding decision of

purchasing maintenance agency services.

H1: There is significant difference among type of Industry or

company annual maintenance budget regarding decision of

purchasing maintenance agency services.

Page 52: Feasibility of Maintenance Agency in Baroda

38

8 H0: Existing industries are not purchased services provided by

maintenance agency.

H1: Existing industries are purchased services provided by

maintenance agency.

4.4. Research Design

For this research we used Descriptive type research Design.

4.5. Sampling Method

We used simple random sampling method to select Company plot in GIDCs

but if in one plot more than one company used convenience sampling method

to select sample from that particular plot for completing quota for our

research.

4.6. Data collection Instrument

For this research we used questionnaire for collecting the information from the

respondents. (Refer Annexure I)

4.7. Sampling Unit

All 15534 industrial units which are registered in Baroda region are able to

became sample.

4.8. Sample Size

We are taken 400 industries as respondents for collecting the information for

the research.

Page 53: Feasibility of Maintenance Agency in Baroda

Chapter 5

Data Analysis

Page 54: Feasibility of Maintenance Agency in Baroda

39

5.1. Demographic Profile

Table 5.1 Demographic Profile

Frequency Percentage

Area

Makarpura GIDC 86 21.50

Pore GIDC 40 10.00

Nandesari GIDC 18 4.50

Ranoli GIDC 97 24.25

Salvi GIDC 63 15.75

Vagodia GIDC 96 24.00

Type of Industry

Machine work Industry 256 64.00

Fabrication Industry 48 12.00

Sheet Metal Work Industry 20 5.00

Foundry Industry 40 10.00

Service Industry 12 3.00

Others

24 6

Cement Industry

Chemical Industry

Paint Industry

Pharmaceutical Industry

Annual

Maintenance

Budget (Rs.)

Below 4999 55 13.75

5000 to 14999 192 48.00

15000 to 24999 82 20.50

25000 to 34999 20 5.00

35000 to 44999 27 6.75

Above 45000 24 6.00

5.2. Response Rate

=400 ∗ 100

435

= 90.9 %

Page 55: Feasibility of Maintenance Agency in Baroda

40

5.3. Questionnaire Analysis

Q-1: Do you have machinery in your company?

Table 5.2 Machinery basic Data

Particulars Frequency

Yes 400

No 0

Fig 5.1 Machinery basic Data

Interpretation:

This question is one of the basic filter question, If answer is Yes then one can

consider further response of that respondent otherwise rejected that

questionnaire. So 400 means 100 % respondent whose answer is Yes are

consider as respondent in this research.

100%

0%0%

20%

40%

60%

80%

100%

120%

Yes No

Page 56: Feasibility of Maintenance Agency in Baroda

41

Q-2: Rank following type of machinery based on number of

machine you have of that type.

Table 5.3 Type of Machinery

Particulars Rank Mean

Conventional 1 2.65

Semi Automatic 2 1.29

Automatic 3 0.25

Fig 5.2 Type of Machinery

Interpretation:

This question is used to generate interaest and to know which type of

machinery expertise required by maintenance agency to get success in future.

Based on responces companies have 63.19% conventional machinery, 30.85

% Semi Automatic machinery and 5.96 % Automatic machinery in Baroda.

63.19%

30.85%

5.96%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Conventional Semi Automatic Automatic

Page 57: Feasibility of Maintenance Agency in Baroda

42

Q-3: For Operational Machinery,

Rank based on usage in operation.

Table 5.4 Operational Machinery Usage

Particulars Rank Mean Percentage

Lathe m/c 1 9.90 16.46

Milling m/c 4 5.88 9.77

Boring m/c 5 4.26 7.08

Shaper m/c 7 3.70 6.15

Drilling m/c 2 8.92 14.83

Hobbing m/c 13 1.07 1.78

Cutting m/c 3 8.09 13.45

Wire cut m/c 17 0.54 0.89

Heating Equipments 9 2.42 4.02

Polishing/Grinding m/c 8 2.89 4.80

Moulding m/c 12 1.14 1.89

Sand Mixer 14 1.00 1.66

Knockout m/c 18 0.43 0.71

Forging m/c 16 0.68 1.13

Rolling m/c 10 2.25 3.74

Welding Equipments 6 4.09 6.79

Sort blasting m/c 15 0.83 1.37

Bending/Punching m/c 11 2.06 3.42

Interpretation:

If machinery usage is incresed then its maintenance problem occuring rate

also increase. By knowing which Operational machinery used more here try to

find which machinery expertise will be required mainly by Maintenance

agency in future. Based on responces companies are maximum using

Operational machinery like Lathe m/c (16.46 %), Drilling m/c (14.83 %),

Cutting m/c (13.45 %), Milling m/c (9.77 %), Boring m/c (7.08 %), Welding

Equipments (6.79 %) and Shaper m/c (6.15 %) in Baroda; Companies are

Page 58: Feasibility of Maintenance Agency in Baroda

43

Fig 5.3 Operational Machinery Usage

moderate way using Operational machinery like Polishing/Grinding m/c (4.80

%), Heating Equipments (4.02 %), Rolling m/c (3.74 %) and

Bending/Punching m/c (3.42 % ) in Baroda; While Companies are very less

using Operational machinery like Moulding m/c (1.89 % ), Hobbing m/c (1.78

% ), Sand Mixer (1.66 % ), Sort blasting m/c (1.37 % ), Forging m/c (1.13 % ),

Wire cut m/c (0.89 % ) and Knockout m/c (0.71 %) in Baroda. By using Table

5.4 it can be interpreted that to get success in Baroda initial stage

Maintenance agency should get expertise in Operational machinery like Lathe

m/c, Drilling m/c, Cutting m/c, Milling m/c, Boring m/c, Welding Equipments

and Shaper m/c maintenance works; then move towards other Operational

machinery expertise.

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

Lath

e m

/c

Mill

ing

m/c

Bo

rin

g m

/c

Shap

er m

/c

Dri

llin

g m

/c

Ho

bb

ing

m/c

Cu

ttin

g m

/c

Wir

e cu

t m

/c

Hea

tin

g Eq

uip

men

ts

Po

lish

ing/

Gri

nd

ing

m/c

Mo

uld

ing

m/c

San

d M

ixer

Kn

ock

ou

t m/c

Forg

ing

m/c

Ro

llin

g m

/c

Wel

din

g Eq

uip

men

ts

Sort

bla

stin

g m

/c

Ben

din

g/P

un

chin

g m

/c

Page 59: Feasibility of Maintenance Agency in Baroda

44

No. of Operational machinery In Companies.

Table 5.5 No. of Operational Machinery

Particulars Mean (Units) Percentage

Lathe m/c 2.92 20.15

Milling m/c 1.50 10.37

Boring m/c 1.05 7.26

Shaper m/c 0.88 6.08

Drilling m/c 2.02 13.96

Hobbing m/c 0.38 2.63

Cutting m/c 1.14 7.88

Wire cut m/c 0.07 0.48

Heating Equipments 0.43 2.97

Polishing/Grinding m/c 0.70 4.84

Moulding m/c 0.24 1.66

Sand Mixer 0.18 1.24

Knockout m/c 0.09 0.63

Forging m/c 0.15 1.04

Rolling m/c 0.75 5.18

Welding Equipments 1.42 9.82

Sort blasting m/c 0.23 1.59

Bending/Punching m/c 0.32 2.22

Interpretation:

If no. of machinery is more then only generate expertise to solve it

maintenance problem become worthful. By knowing which Operational

machinery is more in number Maintenance agency should try to develop more

expertise for that type of machinery. Based on responces companies have

Operational machinery like Lathe m/c (20.15 %), Drilling m/c (13.96 %),

Milling m/c (10.37 %), Welding Equipments (9.82 %), Cutting m/c (7.88 %),

Boring m/c (7.26 %), Shaper m/c (7.08 %), Rolling m/c (5.18 %),

Polishing/Grinding m/c (4.84 %), Heating Equipments (2.97 %), Hobbing m/c

Page 60: Feasibility of Maintenance Agency in Baroda

45

Fig 5.4 No. of Operational Machinery

(2.63 % ), Bending/Punching m/c (2.22 %), Moulding m/c (1.66 %), Sort

blasting m/c (1.59 %), Sand Mixer (1.24 %), Forging m/c (1.04 %), Knockout

m/c (0.63 %) and Wire cut m/c (0.48 %) in Baroda. By using Table 5.5 it can

be interpreted that to get success in Baroda initial stage Maintenance agency

should get expertise in Operational machinery like Lathe m/c, Drilling m/c,

Milling m/c, Welding Equipments, Cutting m/c, Boring m/c, Shaper m/c,

Rolling m/c and Polishing/Grinding m/c maintenance works; then move

towards other operational machinery expertise.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Lath

e m

/c

Mill

ing

m/c

Bo

rin

g m

/c

Shap

er m

/c

Dri

llin

g m

/c

Ho

bb

ing

m/c

Cu

ttin

g m

/c

Wir

e cu

t m

/c

Hea

tin

g Eq

uip

men

ts

Po

lish

ing/

Gri

nd

ing

m/c

Mo

uld

ing

m/c

San

d M

ixer

Kn

ock

ou

t m/c

Forg

ing

m/c

Ro

llin

g m

/c

Wel

din

g Eq

uip

men

ts

Sort

bla

stin

g m

/c

Ben

din

g/P

un

chin

g m

/c

Page 61: Feasibility of Maintenance Agency in Baroda

46

Average age of Operational machinery in Companies.

Table 5.6 Average age of Operational Machinery

Particulars Mean (Years)

Lathe m/c 7.24

Milling m/c 6.83

Boring m/c 6.73

Shaper m/c 6.04

Drilling m/c 8.05

Hobbing m/c 7.00

Cutting m/c 7.37

Wire cut m/c 5.67

Heating Equipments 8.87

Polishing/Grinding m/c 8.95

Moulding m/c 9.14

Sand Mixer 9.67

Knockout m/c 7.33

Forging m/c 6.00

Rolling m/c 8.11

Welding Equipments 7.07

Sort blasting m/c 8.20

Bending/Punching m/c 9.46

Interpretation:

If machinery age is more then chances of its break down in high means more

scope for its maintenance problem. By knowing which Operational machinery

age is more, Maintenance agency should try to develop more expertise for

that type of machinery. Based on responces companies have Operational

machinery of with average age of 9.67 years old Sand Mixer, 9.46 years old

Bending/Punching m/c, 9.14 years old Moulding m/c, 8.95 years old

Polishing/Grinding m/c, 8.87 years old Heating Equipments, 8.20 years old

Sort blasting m/c, 8.11 years old Rolling m/c, 8.05 years old Drilling m/c, 7.37

years old Cutting m/c, 7.33 years old Knockout m/c, 7.24 years old Lathe m/c,

Page 62: Feasibility of Maintenance Agency in Baroda

47

Fig 5.5 Average age of Operational Machinery

7.07 years old Welding Equipments, 7.00 years old Hobbing m/c, 6.83 years

old Milling m/c, 6.73 years old Boring m/c, 6.04 years old Shaper m/c, 6.00

years old Forging m/c, and 5.67 years old Wire cut m/c in Baroda. Based on

this data it interpreted that all Operational machinery have age is around more

than 6 years so warranty periods are over and good scope for maintenance

works so Maintenance agency will try to develop expertise for all Operational

machinery.

0

2

4

6

8

10

12

Lath

e m

/c

Mill

ing

m/c

Bo

rin

g m

/c

Shap

er m

/c

Dri

llin

g m

/c

Ho

bb

ing

m/c

Cu

ttin

g m

/c

Wir

e cu

t m

/c

Hea

tin

g Eq

uip

men

ts

Po

lish

ing/

Gri

nd

ing

m/c

Mo

uld

ing

m/c

San

d M

ixer

Kn

ock

ou

t m/c

Forg

ing

m/c

Ro

llin

g m

/c

Wel

din

g Eq

uip

men

ts

Sort

bla

stin

g m

/c

Ben

din

g/P

un

chin

g m

/c

Year

s

Page 63: Feasibility of Maintenance Agency in Baroda

48

Q-4: For Conveying Machinery,

Rank based on usage in operation.

Table 5.7 Conveying Machinery Usage

Particulars Rank Mean Percentage

Crain 1 1.73 74.92

Bucket Elevator 2 0.27 11.62

Belt Conveyor 3 0.24 10.42

Pipe Line 4 0.07 3.04

Fig 5.6 Conveying Machinery Usage

Interpretation:

If machinery usage is incresed then its maintenance problem occuring rate

also increase. By knowing which Conveying machinery used more here try to

find which machinery expertise will be required mainly by Maintenance

agency in future. Based on responces companies are maximum using Crain

(74.92 %) for Conveying purpose in Baroda. Companies are also using

Buckete Elevator (11.62 %), Belt Conveyor (10.42 %) and Pipeline (3.04 %)

for Conveying purpose in Baroda. Thus to get success in Baroda Crain

maintenance work expertise is essential for Maintenance agency.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Crain Bucket Elevator Belt Conveyor Pipe Line

Page 64: Feasibility of Maintenance Agency in Baroda

49

No. of Conveying machinery In Companies.

Table 5.8 No. of Conveying Machinery

Particulars Mean (Unit) Percentage

Crain 1.28 42.51

Bucket Elevator 0.23 7.61

Belt Conveyor 0.42 13.73

Pipe Line 1.09 36.14

Fig 5.7 No. of Conveying Machinery

Interpretation:

If no. of machinery is more then only generate expertise to solve it

maintenance problem become worthful. By knowing which Conveying

machinery is more in number Maintenance agency should try to develop more

expertise for that type of machinery. Based on responces companies have

mainly Crain (42.51) % and Pipe line (36.14 % - used in Chemical industries

mainly but in large quantity) as Conveying machinery in Baroda; Companies

also have Belt conveyor (13.74 %) and Bucket Elevator (7.61 %) for

Conveying purpose in Baroda. Thus to get success in Baroda Crain

maintenance work expertise is essential for Maintenance agency at initial

stage and then move towards other Conveying machinery expertise.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

Crain Bucket Elevator Belt Conveyor Pipe Line

Page 65: Feasibility of Maintenance Agency in Baroda

50

Average age of Conveying machinery in Companies.

Table 5.9 Average age of Conveying Machinery

Particulars Mean (Years)

Crain 7.22

Bucket Elevator 8.48

Belt Conveyor 8.23

Pipe Line 6.85

Fig 5.8 Average age of Conveying Machinery

Interpretation:

If machinery age is more then chances of its break down in high means more

scope for its maintenance problem. By knowing which Conveying machinery

age is more, Maintenance agency should try to develop more expertise for

that type of machinery. Based on responces companies have 8.48 years old

Bucket Elevator, 8.23 years old Belt conveyor, 7.22 years old Crain and 6.85

years old pipelines as Conveying machinery in Baroda. All Conveying

machinery have age is around more than 7 years so warranty periods are

over and good scope for maintenance works so Maintenance agency will try

to develop expertise for all Conveying machinery.

0

1

2

3

4

5

6

7

8

9

Crain Bucket Elevator Belt Conveyor Pipe Line

Year

s

Page 66: Feasibility of Maintenance Agency in Baroda

51

Q-5: For Power supply Machinery,

Rank based on usage in operation.

Table 5.10 Power supply Machinery Usage

Particulars Rank Mean Percentage

Motor 2 0.07 22.05

Generator 1 0.16 50.39

Transformer 3 0.05 14.96

Electric Panel 4 0.04 12.59

Fig 5.9 Power supply Machinery Usage

Interpretation:

If machinery usage is incresed then its maintenance problem occuring rate

also increase. By knowing which Power supply machinery used more here try

to find which machinery expertise will be required mainly by Maintenance

agency in future. Based on responces companies are maximum using

Generator (50.39 %) for Power supply purpose in Baroda. Companies are

also using Motor (22.05 %), Transformer (14.96 %) and Electric Panel (12.59

%) for Power supply purpose in Baroda. Thus to get success in Baroda

Generator maintenance work expertise is essential for Maintenance agency.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Motor Generator Transformer Electric Panel

Page 67: Feasibility of Maintenance Agency in Baroda

52

No. of Power supply machinery In Companies.

Table 5.11 No. of Power supply Machinery

Particulars Mean (Unit) Percentage

Motor 0.35 81.28

Generator 0.06 14.04

Transformer 0.01 2.34

Electric Panel 0.01 2.34

Fig 5.10 No. of Power supply Machinery

Interpretation:

If no. of machinery is more then only generate expertise to solve it

maintenance problem become worthful. By knowing which Power supply

machinery is more in number Maintenance agency should try to develop more

expertise for that type of machinery. Based on responces companies have

mainly motor (81.28 %) as Power supply machinery in Baroda; Companies

also have Generator (14.04 %), Transformer (2.34 %) and Electric panel (2.34

%) for Power supply purpose in Baroda. Thus to get success in Baroda Motor

maintenance work expertise is essential for Maintenance agency at initial

stage and then move towards other Power supply machinery expertise.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Motor Generator Transformer Electric Panel

Page 68: Feasibility of Maintenance Agency in Baroda

53

Average age of Power supply machinery in Companies.

Table 5.12 Average age of Power supply Machinery

Particulars Mean (Years)

Motor 6.86

Generator 9.5

Transformer 5

Electric Panel 5

Fig 5.11 Average age of Power supply Machinery

Interpretation:

If machinery age is more then chances of its break down in high means more

scope for its maintenance problem. By knowing which Power supply

machinery age is more, Maintenance agency should try to develop more

expertise for that type of machinery. Based on responces companies have 9.5

years old Generator, 6.86 years old Motor, 5.00 years old Transformer and

Electric panel as Power supply machinery in Baroda. All Power supply

machinery have age is around more than 5 years so warranty periods are

over and good scope for maintenance works so Maintenance agency will try

to develop expertise for all Power supply machinery.

0

1

2

3

4

5

6

7

8

9

10

Motor Generator Transformer Electric Panel

Years

Page 69: Feasibility of Maintenance Agency in Baroda

54

Q-6: Do you use machinery of different manufacturer?

Table 5.13 Different Manufacturer machinery usage

Particulars Frequency

Yes 365

No 35

Fig 5.12 Different Manufacturer machinery usage

Interpretation:

This question is used to measure Intention, because if company have only

one manufacturer machinery then manufacturer maintenance services are

better option and do not easily purchase Maintenance agency services.

Based on responces around 91.25 % companies in Baroda are using

machinery of different manufacture and 8.75 % companies in Baroda are

using machinery of same different manufacture.

91.25%

8.75%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Yes No

Page 70: Feasibility of Maintenance Agency in Baroda

55

Q-7: Do you have maintenance department in your company?

Table 5.14 Maintenance Department Inquiry

Particulars Frequency

Yes 55

No 345

Fig 5.13 Maintenance Department Inquiry

Interpretation:

This question is used to measure Intention, because if company have own

maintenance department then company do not easily purchase Maintenance

agency services. Based on responces around 13.75 % companies in Baroda

have own maintenance department and 86.25 % companies in Baroda do not

have own maintenance department which are prospected target at initial

stage.

13.75%

86.25%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Yes No

Page 71: Feasibility of Maintenance Agency in Baroda

56

If Yes then your maintenance department,

Table 5.15 Maintenance Department Ability

Particulars Frequency

Within specific time solve all maintenance problems 36

Take more time to solve all maintenance problems 11

Don’t able to solve all maintenance problems 8

Fig 5.14 Maintenance Department Ability

Interpretation:

This question is used to measure Intention of company having maintenance

department, because if company having own maintenance department but do

not satisfied with their maintenance department then posibility they will

purchase Maintenance agency services. Out of 55 companies which having

maintenance department around 65.45 % maintenance department within

specific time solve all maintenance problems; 20 % maintenance department

take more time to solve all maintenance problems and 14.55 % maintenance

department don’t able to solve all maintenance problems. So all companies

which have maintenance deparetment which take more time to solve all

maintenance problems and don’t able to solve all maintenance problems are

also prospected target at initial stage.

65.45%

20%14.55%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Within specific time solve all maintenance problems

Take more time to solve all maintenance problems

Don’t able to solve all maintenance problems

Page 72: Feasibility of Maintenance Agency in Baroda

57

How many man powers in your maintenance department?

Table 5.16 Maintenance Department Man power

Particulars Only

Permanent

Both Permanent

and Contract

Only

Contract

Less than 5 39 12 0

Between 5 to 10 0 0 4

Fig 5.15 Maintenance Department Man power

Interpretation:

This question is used to measure Intention of company having maintenance

department, because if company having own maintenance department but

required more man power and having more man power also dont able to

solve company maintenance problem effectivly then they they will purchase

Maintenance agency services. Out of 55 companies which having

maintenance department around 70.91 % maintenance department have only

parmenent maintenance employess in quantity of less than 5; 7.27 %

maintenance department have both parmenent and contract based

maintenance employess in quantity of less than 5 each and 81.82 %

maintenance department have only contract based maintenance employess

in quantity between 5 to 10.

70.91%

7.27%00 0

81.82%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Only Permanent Both Permanent and Contract

Only Contract

Less than 5 Between 5 to 10

Page 73: Feasibility of Maintenance Agency in Baroda

58

Q-8: Are you aware about other maintenance agency?

Table 5.17 Awareness of other Maintenance agency

Particulars Frequency

Yes 400

No 0

Fig 5.16 Awareness of other Maintenance agency

Interpretation:

This question is used to measure Intention, because if company is aware

about other maintenance agency then might be company is using that other

maintenance agency services means manufacturer maintenance services

then company do not easily purchase Maintenance agency services unless

find more benefit in it. Based on responces of 400 companies all 100 %

companies in Baroda are aware about other maintenance agency, so they

can purchase Maintenance agency services if Maintenance agency is able to

provide extra benefit.

100%

0%0%

20%

40%

60%

80%

100%

120%

Yes No

Page 74: Feasibility of Maintenance Agency in Baroda

59

If Yes then are you having annual maintenance contract?

Table 5.18 Other Maintenance agency AMC

Particulars Frequency

Yes 64

No 336

Fig 5.17 Other Maintenance agency AMC

Interpretation:

This question is used to measure Intention, because if company have annual

maintenance contact of other maintenance agency means manufacturer

maintenance contract then company do not able to purchase Maintenance

agency services at initial basis and if company is satisfied with that contract

then company dont purchase Maintenance agency services in future also.

Based on responces around 16 % companies in Baroda have annual

maintenance contract of other maintenance agency and 84 % companies in

Baroda do not have annual maintenance contract of other maintenance

agency. So companies which do not have AMC are prospected target at initial

stage and companies which dissatisfied with current AMC are prospected

target for Maintenance Agency.

16%

84%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes No

Page 75: Feasibility of Maintenance Agency in Baroda

60

Q-9: Do your most of the machinery come under warranty

period?

Table 5.19 Machinery warranty period Inquiry

Particulars Frequency

Yes 64

No 336

Fig 5.18 Machinery warranty period Inquiry

Interpretation:

This question is used to measure Intention, because if company machinery

come under warrenty period then company use manufacturer maintenance

services and do not purchase Maintenance agency servies at initial stage.

Based on responces around 3 % companies in Baroda having machinery

which come under warrenty periods and 97 % companies in Baroda do not

having machinery which come under warrenty periods which are prospected

target for Maintenance Agency.

3%

97%

0%

20%

40%

60%

80%

100%

120%

Yes No

Page 76: Feasibility of Maintenance Agency in Baroda

61

Q-10: Likert Scale Analysis,

Statement 1: Company is satisfied with current maintenance practice.

Table 5.20 Likert Scale: Statement 1

Particulars Frequency Mean

Strongly Disagree 0

3.03

Disagree 144

Neutral 104

Agree 148

Strongly Agree 4

Fig 5.19 Likert Scale: Statement 1

Interpretation:

This question is used to measure Intention, Based on responces, Companies

in Baroda are neutral with the statement ‘Company is satisfied with current

maintenance practice.’ because their response mean is 3.03; Where 37 %

Companies are agree with this statement and 36 % Companies are disagree

with this statement.

0%

36%

26%

37%

1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

SD D N A SA

Page 77: Feasibility of Maintenance Agency in Baroda

62

Statement 2: Company is planning to improve its maintenance practices.

Table 5.21 Likert Scale: Statement 2

Particulars Frequency Mean

Strongly Disagree 0

3.87

Disagree 4

Neutral 60

Agree 320

Strongly Agree 16

Table 5.20 Likert Scale: Statement 2

Interpretation:

This question is used to measure Intention, Based on responces, Companies

in Baroda are agree with the statement ‘Company is planning to improve its

maintenance practices.’ because their response mean is 3.87; Where 87 %

Companies are agree with this statement.

0% 1%

15%

80%

4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

SD D N A SA

Page 78: Feasibility of Maintenance Agency in Baroda

63

Statement 3: Company machine manufacturer provides excellent

maintenance services.

Table 5.22 Likert Scale: Statement 3

Particulars Frequency Mean

Strongly Disagree 0

3.14

Disagree 75

Neutral 197

Agree 124

Strongly Agree 4

Fig 5.21 Likert Scale: Statement 3

Interpretation:

This question is used to measure Interest, Based on responces, Companies

in Baroda are neutral with the statement ‘Company machine manufacturer

provides excellent maintenance services.’ because their response mean is

3.14; Where 31 % Companies are agree with this statement.

0%

19%

49%

31%

1%

0%

10%

20%

30%

40%

50%

60%

SD D N A SA

Page 79: Feasibility of Maintenance Agency in Baroda

64

Statement 4: Company is paying reasonable price to current maintenance

agency for servicing machinery.

Table 5.23 Likert Scale: Statement 4

Particulars Frequency Mean

Strongly Disagree 0

3.46

Disagree 24

Neutral 168

Agree 198

Strongly Agree 8

Fig 5.22 Likert Scale: Statement 4

Interpretation:

This question is used to measure Interest, Based on responces, Companies

in Baroda are neutral with the statement ‘Company is paying reasonable price

to current maintenance agency for servicing machinery.’ because their

response mean is 3.46; Where 49 % Companies are agree with this

statement.

1%

6%

42%

49%

2%

0%

10%

20%

30%

40%

50%

60%

SD D N A SA

Page 80: Feasibility of Maintenance Agency in Baroda

65

Statement 5: Breakdown leads to shutdown in your company.

Table 5.24 Likert Scale: Statement 5

Particulars Frequency Mean

Strongly Disagree 8

3.05

Disagree 151

Neutral 80

Agree 133

Strongly Agree 28

Fig 5.23 Likert Scale: Statement 5

Interpretation:

This question is used to measure Interest, Based on responces, Companies

in Baroda are neutral with the statement ‘Breakdown leads to shutdown in

your company.’ because their response mean is 3.05; Where 33 %

Companies are agree with this statement and 38 % Companies are disagree

with this statement.

2%

38%

20%

33%

7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

SD D N A SA

Page 81: Feasibility of Maintenance Agency in Baroda

66

Statement 6: For Company, prevention of breakdown is important aspect.

Table 5.25 Likert Scale: Statement 6

Particulars Frequency Mean

Strongly Disagree 0

4.12

Disagree 4

Neutral 24

Agree 292

Strongly Agree 80

Fig 5.24 Likert Scale: Statement 6

Interpretation:

This question is used to measure Interest, Based on responces, Companies

in Baroda are agree with the statement ‘For Company, prevention of

breakdown is important aspect.’ because their response mean is 4.12; Where

73 % Companies are agree with this statement and 20 % Companies are

strongly agree with this statement.

0% 1%

6%

73%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

SD D N A SA

Page 82: Feasibility of Maintenance Agency in Baroda

67

Statement 7: Maintenance agency should provide all maintenance services

under one roof.

Table 5.26 Likert Scale: Statement 7

Particulars Frequency Mean

Strongly Disagree 0

4.22

Disagree 4

Neutral 28

Agree 241

Strongly Agree 127

Table 5.25 Likert Scale: Statement 7

Interpretation:

This question is used to measure Interest, Based on responces, Companies

in Baroda are agree with the statement ‘Maintenance agency should provide

all maintenance services under one roof.’ because their response mean is

4.22; Where 60 % Companies are agree with this statement and 32 %

Companies are strongly agree with this statement.

0% 1%

7%

60%

32%

0%

10%

20%

30%

40%

50%

60%

70%

SD D N A SA

Page 83: Feasibility of Maintenance Agency in Baroda

68

Statement 8: Maintenance agency should provide 24x7 maintenance

services.

Table 5.27 Likert Scale: Statement 8

Particulars Frequency Mean

Strongly Disagree 0

4.16

Disagree 4

Neutral 52

Agree 222

Strongly Agree 122

Fig 5.26 Likert Scale: Statement 8

Interpretation:

This question is used to measure Interest, Based on responces, Companies

in Baroda are agree with the statement ‘Maintenance agency should provide

24x7 maintenance services.’ because their response mean is 4.16; Where 56

% Companies are agree with this statement and 30 % Companies are

strongly agree with this statement.

0% 1%

13%

56%

30%

0%

10%

20%

30%

40%

50%

60%

SD D N A SA

Page 84: Feasibility of Maintenance Agency in Baroda

69

Statement 9: Maintenance agency should provide installment payment option.

Table 5.28 Likert Scale: Statement 9

Particulars Frequency Mean

Strongly Disagree 0

4.04

Disagree 8

Neutral 68

Agree 225

Strongly Agree 99

Fig 5.27 Likert Scale: Statement 9

Interpretation:

This question is used to measure Interest, Based on responces, Companies

in Baroda are agree with the statement ‘Maintenance agency should provide

installment payment option.’ because their response mean is 4.04; Where 56

% Companies are agree with this statement and 25 % Companies are

strongly agree with this statement.

0%2%

17%

56%

25%

0%

10%

20%

30%

40%

50%

60%

SD D N A SA

Page 85: Feasibility of Maintenance Agency in Baroda

70

Statement 10: Maintenance agency should visit regularly every month either

breakdown or not, in an organization.

Table 5.29 Likert Scale: Statement 10

Particulars Frequency Mean

Strongly Disagree 0

3.88

Disagree 4

Neutral 80

Agree 276

Strongly Agree 40

Fig 5.28 Likert Scale: Statement 10

Interpretation:

This question is used to measure Interest, Based on responces, Companies

in Baroda are agree with the statement ‘Maintenance agency should visit

regularly every month either breakdown or not, in an organization.’ because

their response mean is 3.88; Where 69 % Companies are agree with this

statement.

0% 1%

20%

69%

10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

SD D N A SA

Page 86: Feasibility of Maintenance Agency in Baroda

71

Statement 11: Maintenance agency has more expertise in comparison to

internal maintenance department.

Table 5.30 Likert Scale: Statement 11

Particulars Frequency Mean

Strongly Disagree 0

3.94

Disagree 4

Neutral 60

Agree 292

Strongly Agree 44

Fig 5.29 Likert Scale: Statement 11

Interpretation:

This question is used to measure Perception, Based on responces,

Companies in Baroda are agree with the statement ‘Maintenance agency has

more expertise in comparison to internal maintenance department.’ because

their response mean is 3.94; Where 73 % Companies are agree with this

statement.

0% 1%

15%

73%

11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

SD D N A SA

Page 87: Feasibility of Maintenance Agency in Baroda

72

Statement 12: Maintenance agency is able to solve maintenance problem in

different no. of ways.

Table 5.31 Likert Scale: Statement 12

Particulars Frequency Mean

Strongly Disagree 0

3.87

Disagree 0

Neutral 76

Agree 300

Strongly Agree 24

Fig 5.30 Likert Scale: Statement 12

Interpretation:

This question is used to measure Perception, Based on responces,

Companies in Baroda are agree with the statement ‘Maintenance agency is

able to solve maintenance problem in different no. of ways.’ because their

response mean is 3.87; Where 75 % Companies are agree with this

statement.

0% 0%

19%

75%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

SD D N A SA

Page 88: Feasibility of Maintenance Agency in Baroda

73

Statement 13: Maintenance agency is economical.

Table 5.32 Likert Scale: Statement 13

Particulars Frequency Mean

Strongly Disagree 0

3.57

Disagree 4

Neutral 179

Agree 201

Strongly Agree 16

Fig 5.31 Likert Scale: Statement 13

Interpretation:

This question is used to measure Perception, Based on responces,

Companies in Baroda are agree with the statement ‘Maintenance agency is

economical.’ because their response mean is 3.57; Where 50 % Companies

are agree with this statement.

0% 1%

45%

50%

4%

0%

10%

20%

30%

40%

50%

60%

SD D N A SA

Page 89: Feasibility of Maintenance Agency in Baroda

74

Statement 14: Maintenance agency is able to solve maintenance problem

quickly compare to maintenance department.

Table 5.33 Likert Scale: Statement 14

Particulars Frequency Mean

Strongly Disagree 0

3.73

Disagree 20

Neutral 91

Agree 266

Strongly Agree 23

Fig 5.32 Likert Scale: Statement 14

Interpretation:

This question is used to measure Perception, Based on responces,

Companies in Baroda are agree with the statement ‘Maintenance agency is

able to solve maintenance problem quickly compare to maintenance

department.’ because their response mean is 3.73; Where 67 % Companies

are agree with this statement.

0%

5%

22%

67%

6%

0%

10%

20%

30%

40%

50%

60%

70%

SD D N A SA

Page 90: Feasibility of Maintenance Agency in Baroda

75

Statement 15: Maintenance agencies don’t response on time when required.

Table 5.34 Likert Scale: Statement 15

Particulars Frequency Mean

Strongly Disagree 0

2.9

Disagree 140

Neutral 172

Agree 76

Strongly Agree 12

Fig 5.33 Likert Scale: Statement 15

Interpretation:

This question is used to measure Perception, Based on responces,

Companies in Baroda are neutral with the statement ‘Maintenance agencies

don’t response on time when required.’ because their response mean is 2.9;

Where 19 % Companies are agree with this statement and 35 % Companies

are disagree with this statement

0%

35%

43%

19%

3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

SD D N A SA

Page 91: Feasibility of Maintenance Agency in Baroda

76

Statement 16: Maintenance agency is better option compare to internal

maintenance department.

Table 5.35 Likert Scale: Statement 16

Particulars Frequency Mean

Strongly Disagree 0

2.79

Disagree 4

Neutral 92

Agree 288

Strongly Agree 16

Fig 5.34 Likert Scale: Statement 16

Interpretation:

This question is used to measure Perception, Based on responces,

Companies in Baroda are neutral with the statement ‘Maintenance agency is

better option compare to internal maintenance department.’ because their

response mean is 2.79; Where 72 % Companies are agree with this

statement.

0% 1%

23%

72%

4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

SD D N A SA

Page 92: Feasibility of Maintenance Agency in Baroda

77

Statement 17: Maintenance agency is required for maintenance.

Table 5.36 Likert Scale: Statement 17

Particulars Frequency Mean

Strongly Disagree 0

3.89

Disagree 4

Neutral 64

Agree 304

Strongly Agree 28

Fig 5.35 Likert Scale: Statement 17

Interpretation:

This question is used to measure Attitude, Based on responces, Companies

in Baroda are agree with the statement ‘Maintenance agency is required for

maintenance.’ because their response mean is 3.89; Where 76 % Companies

are agree with this statement.

0% 1%

16%

76%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

SD D N A SA

Page 93: Feasibility of Maintenance Agency in Baroda

78

Q-11: Will you purchase maintenance agency services in

future?

Table 5.37 Purchase Maintenance agency services in Future

Particulars Frequency

Yes 336

No 64

Fig 5.36 Purchase Maintenance agency services in Future

Interpretation:

This question is used to measure Attitude, Based on responces around 84 %

companies in Baroda will purchase maintenance agency services in future

(Positive attitude towards Maintenance agency services) and 16 %

companies in Baroda will not purchase maintenance agency services in future

(Negative attitude towards Maintenance agency services).

84%

16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes No

Page 94: Feasibility of Maintenance Agency in Baroda

Chapter 6

Hypothesis Testing

Page 95: Feasibility of Maintenance Agency in Baroda

79

Hypothesis 1:

H0: Existing industries are not having positive intension towards

maintenance agency services.

H1: Existing industries are having positive intension towards

maintenance agency services.

Table 6.1 Hypothesis 1

No. Statement Mean

1 Company is satisfied with current maintenance

practice. 3.03

3.45

2 Company is planning to improve its maintenance

practices. 3.87

Fig 6.1 Hypothesis 1

Interpretation:

From above Table 6.1 and Fig. 6.1, it can be interpreted that Existing

industries are having positive intension towards maintenance agency services

(Null Hypothesis will be rejected) because Intention likert scale statement

mean is 3.45 greater than scale middle value 3.

Page 96: Feasibility of Maintenance Agency in Baroda

80

Hypothesis 2:

H0: Company Intension towards Maintenance agency services is not

independent of the type of Industry and Company annual

maintenance budget.

H1: Company Intension towards Maintenance agency services is

independent of the type of Industry and Company annual

maintenance budget.

Table 6.2 Hypothesis 2 (Chi-Square Tests)

No. Statement Pearson Chi-Square

Type of Industry Annual Budget

1 Company is satisfied with

current maintenance practice.

.000 .000

2 Company is planning to improve

its maintenance practices.

.000 .000

With 15 Degree of freedom

Interpretation:

From above Table 6.3, it can be interpreted that Company Intension towards

Maintenance agency services is independent of the type of Industry and

Company annual maintenance budget. (All value of chi-square (alpha) is less

than 0.05)

Page 97: Feasibility of Maintenance Agency in Baroda

81

Hypothesis 3:

H0: Company interest level towards Maintenance agency services is not

independent of the type of Industry and Company annual

maintenance budget.

H1: Company interest level towards Maintenance agency services is

independent of the type of Industry and Company annual

maintenance budget.

Table 6.3 Hypothesis 3 (Chi-Square Tests)

No. Statement Pearson Chi-Square

Type of

Industry

Annual

Budget

1 Company machine manufacturer provides excellent

maintenance services.

.000 .000

2 Company is paying reasonable price to current

maintenance agency for servicing machinery.

.000 .000

3 Breakdown leads to shutdown in your company. .000 .000

4 For Company, prevention of breakdown is important

aspect.

.000 .002

5 Maintenance agency should provide all maintenance

services under one roof.

.000 .001

6 Maintenance agency should provide 24x7

maintenance services.

.000 .000

7 Maintenance agency should provide installment

payment option.

.000 .000

8 Maintenance agency should visit regularly every

month either breakdown or not, in an organization.

.000 .000

Interpretation:

From above Table 6.3, it can be interpreted that Company interest level

towards Maintenance agency services is independent of the type of Industry

and Company annual maintenance budget. (All value of chi-square (alpha) is

less than 0.05)

Page 98: Feasibility of Maintenance Agency in Baroda

82

Hypothesis 4:

H0: Existing industries are not interested in services provided by

maintenance agency.

H1: Existing industries are interested in services provided by

maintenance agency.

Table 6.4 Hypothesis 4

No. Statement Mean

1 Company machine manufacturer provides excellent

maintenance services. 3.14

3.76

2 Company is paying reasonable price to current maintenance

agency for servicing machinery. 3.46

3 Breakdown leads to shutdown in your company. 3.05

4 For Company, prevention of breakdown is important aspect. 4.12

5 Maintenance agency should provide all maintenance services

under one roof. 4.22

6 Maintenance agency should provide 24x7 maintenance

services. 4.15

7 Maintenance agency should provide installment payment

option. 4.03

8 Maintenance agency should visit regularly every month either

breakdown or not, in an organization. 3.88

Interpretation:

From above Table 6.3 and Fig. 6.2, it can be interpreted that Existing

industries are interested in services provided by maintenance agency (Null

Hypothesis will be rejected) because Interest likert scale statement mean is

3.76 greater than scale middle value 3.

Page 99: Feasibility of Maintenance Agency in Baroda

83

Fig 6.2 Hypothesis 4

Fig 6.3 Hypothesis 5

Page 100: Feasibility of Maintenance Agency in Baroda

84

Hypothesis 5:

H0: Existing industries are not having good perception towards

maintenance agency.

H1: Existing industries are having good perception towards maintenance

agency.

Table 6.5 Hypothesis 5

No. Statement Mean

1 Maintenance agency has more expertise in comparison to

internal maintenance department 3.94

3.63

2 Maintenance agency is able to solve maintenance problem in

different no. of ways. 3.87

3 Maintenance agency is economical. 3.57

4 Maintenance agency is able to solve maintenance problem

quickly compare to maintenance department. 3.73

5 Maintenance agencies don’t response on time when required. 2.90

6 Maintenance agency is better option compare to internal

maintenance department. 3.79

Interpretation:

From above Table 6.5 and Fig. 6.3, it can be interpreted that Existing

industries are having good perception towards maintenance agency. (Null

Hypothesis will be rejected) because Interest likert scale statement mean is

3.63 greater than scale middle value 3.

Page 101: Feasibility of Maintenance Agency in Baroda

85

Hypothesis 6:

H0: Company Perception towards Maintenance Agency is not

independent of the type of Industry and Company annual

maintenance budget.

H1: Company Perception towards Maintenance Agency is independent

of the type of Industry and Company annual maintenance budget.

Table 6.6 Hypothesis 6 (Chi-Square Tests)

No. Statement Pearson Chi-Square

Type of

Industry

Annual

Budget

1 Maintenance agency has more expertise in

comparison to internal maintenance department

.000 .000

2 Maintenance agency is able to solve maintenance

problem in different no. of ways.

.000 .004

3 Maintenance agency is economical. .004 .000

4 Maintenance agency is able to solve maintenance

problem quickly compare to maintenance department.

.000 .001

5 Maintenance agencies don’t response on time when

required.

.000 .000

6 Maintenance agency is better option compare to

internal maintenance department.

.000 .000

Interpretation:

From above Table 6.6, it can be interpreted that Company interest level

towards Maintenance agency services is independent of the type of Industry

and Company annual maintenance budget. (All value of chi-square (alpha) is

less than 0.05)

Page 102: Feasibility of Maintenance Agency in Baroda

86

Hypothesis 7:

H0: There is no significant difference among type of Industry or company

annual maintenance budget regarding decision of purchasing

maintenance agency services.

H1: There is significant difference among type of Industry or company

annual maintenance budget regarding decision of purchasing

maintenance agency services.

Table 6.7 Hypothesis 7 (One way Anova)

Sum of

Squares df

Mean

Square F Sig.

Type of Industry

Between Groups 1.543 5 .309 2.329 .042

Within Groups 52.217 394 .133

Total 53.760 399

Company annual maintenance budget

Between Groups 1.375 5 .275 2.069 .068

Within Groups 52.385 394 .133

Total 53.760 399

Interpretation:

From above Table 6.7, Null hypotheses will be rejected for Type of Industry

and it can be interpreted that there is significant difference among type of

Industry regarding decision of purchasing maintenance agency services. (For

Type of Industry value of significant is less than 0.05)

From above Table 6.7, Null hypotheses will not be rejected for Company

annual maintenance budget and it can be interpreted that there is no

significant difference among company annual maintenance budget regarding

decision of purchasing maintenance agency services. (For Company annual

maintenance budget value of significant is greater than 0.05)

Page 103: Feasibility of Maintenance Agency in Baroda

87

Hypothesis 8:

H0: Existing industries are not purchased services provided by

maintenance agency.

H1: Existing industries are purchased services provided by maintenance

agency.

Table 6.8 Hypothesis 8

No. Statement Mean

1 Maintenance agency is required for maintenance. 3.89

Fig 6.4 Hypothesis 8

Interpretation:

From above Table 6.8, Fig. 6.4, and Fig. 5.36 where Based on responces

around 84 % companies in Baroda will purchase maintenance agency

services in future (Positive attitude towards Maintenance agency services), it

can be interpreted that Existing industries are purchased services provided by

maintenance agency (Null Hypothesis will be rejected) because Interest likert

scale statement mean is 3.89 greater than scale middle value 3.

Page 104: Feasibility of Maintenance Agency in Baroda

Chapter 7

Maintenance agency Profitability and Feasibility

Analysis

Page 105: Feasibility of Maintenance Agency in Baroda

88

7.1. Cost of Project

7.1.1. Fixed Investment Cost requirement for next 3 Years

Table 7.1 Fixed Investment Cost requirement for next 3 Years

All Amount in Rs.

1 Year 2 Year 3 Year

unit Rs. Unit Rs. Unit Rs.

Shop Deposit - 50000 - - - -

Website

charges

- 15000 - - - -

Toolbox 3 15000 - - 1 5000

Hand Drill 3 10000 - - 1 3000

Welding

Machine

3 26500 - - 1 6000

Grinder/cutter 3 6000 - - 1000

Hacksaw 3 6000 - - 1 2000

Computer 1 22000 - - - -

Printer 1 4500 - - - -

Shop Furniture/

chairs

- 30000 - - - -

Vehicles

Tata Chhota

Hathi

2 560000 - - 1 280000

Cycle 1 1500 - - 1 1500

Total 746500 - 298000

To start any business initial amount is required for investment and to start

maintenance agency as shown in Table 7.1 initially Rs. 746500 is required as

fixed initial cost. During second year other investment is not required but

during 3 year to match demand rate investment is required in equipments and

vehicles around Rs. 298000.

Page 106: Feasibility of Maintenance Agency in Baroda

89

7.1.2. Variable Cost requirement for next 3 Years

Table 7.2 Variable Cost requirement for next 3 Years

All Amount in Rs.

1 Year

Monthly

Cost

1 Year 2 Year

Monthly

Cost

2 Year 3 Year

Monthly

Cost

3 Year

Shop Rent 5000 60000 5500 66000 6000 72000

Petrol/ Diesel 8000 96000 10000 120000 15000 180000

Electricity Bill 2500 30000 2500 30000 2500 3000

Telephone Bill 3000 36000 3000 36000 4000 48000

Stationary Cost 500 6000 700 8400 1000 12000

Hand drill - - - 1000 - -

Welding Machine - - - 1000 - -

Grinder/cutter - - - 500 - 1000

Employee Salary

Diploma

Mechanical

>15 yr

experience

38500 462000 40500 486000 43500 522000

>1 yr

experience

5000 60000 6000 72000 8000 96000

>1 yr

experience

- - - - 5000 60000

Diploma electrical

>2 yr

experience

6000 72000 7000 84000 9000 108000

>2 yr

experience

- - - - 6000 72000

Computer

operator

4500 54000 5500 66000 6500 78000

Telephone

operator

4500 54000 5500 66000 6500 78000

Page 107: Feasibility of Maintenance Agency in Baroda

90

Wages

ITI

>10 yr

experience

320*2*30 230400 335*2*30 241200 350*2*30 252000

>5 yr

experience

255*2*30 183600 265*2*30 190800 285*2*30 205200

>1 yr

experience

- - - - 230*2*30 165600

Helper 190*2*30 136800 195*2*30 140400 210*2*30 151200

- - - - 190*2*30 136800

Cash Outflow 1480800 1609300 2240800

To run any business and deal with it expanse certain amount is required on

monthly bases as working capital; and here as shown in Table 7.2 Rs. 123400

is required as monthly working capital money to run maintenance agency

during 1 year. Based on inflation rate it can be increasing on yearly bases

(Salary) and in 2 year Rs. 1609300 and in 3 year Rs 2240800 is required.

7.2. Means of Financing

To start any business initial amount is required for investment and to start

maintenance agency as shown in Table 7.1 initially Rs. 746500 is required as

fixed initial cost, so instead of going towards other financing option like loan,

venture capital financing, etc. We will be used our own money to start

business.

Page 108: Feasibility of Maintenance Agency in Baroda

91

7.3. Estimated Cash Flow for next 3 years

7.3.1. Future market Identification

Table 7.3 Future customer analysis

Total Industrial Units in Baroda = 15534

1 Year 2 Year 3 Year

15534 15534 15534

84 % companies in Baroda don’t have AMC which will able to purchased

Maintenance agency services at initial basis.

13049 13049 13049

86.25 % companies in Baroda don’t have maintenance department which will

be purchased Maintenance agency services.

11255 11255 11255

- (Add) 13049 units 13.75

% companies have

maintenance

department but don’t

well so they will be

purchased maintenance

agency services.

Assume 5 % of 13.75 %

will be purchased.

=87

(Add) 13049 units 13.75

% companies have

maintenance

department but don’t

well so they will be

purchased maintenance

agency services.

Assume 10 % of 13.75

% will be purchased.

=179

11255 11344 11434

69 % companies have positive intension which will be purchased

Maintenance agency services.

7766 7827 7889

75.2 % companies are

interested in

maintenance agency

services which will be

purchased Maintenance

78 % (Assume interest

rate will be increased)

companies are

interested in

maintenance agency

80 % (Assume interest

rate will be increased)

companies are

interested in

maintenance agency

Page 109: Feasibility of Maintenance Agency in Baroda

92

agency services. services which will be

purchased Maintenance

agency services.

services which will be

purchased Maintenance

agency services.

5840 6105 6311

72.6 % companies have

good perception about

Maintenance agency

which will be purchased

Maintenance agency

services.

72.6 % (Assume

perception will not be

changed) companies

have good perception

about Maintenance

agency which will be

purchased Maintenance

agency services.

73.6 % (Assume

perception will be

increased at slow rate

only 1 %) companies

have good perception

about Maintenance

agency which will be

purchased Maintenance

agency services.

4240 4432 4645

50.9 % (Actually 80.9 %

but negative tolerance

of 30 %) companies will

have purchasing attitude

which will be purchased

Maintenance agency

services.

65.9 % (Actually 80.9 %

but negative tolerance

of 15 %) companies will

have purchasing attitude

which will be purchased

Maintenance agency

services.

70.9 % (Actually 80.9 %

but negative tolerance

of 10 %) companies will

have purchasing attitude

which will be purchased

Maintenance agency

services.

2158 2920 3293

As shown in Table 7.3, 2158, 2920 and 3293 units will be purchased

Maintenance agency service in 1 year, 2 year and 3 year.

7.3.2. Estimated cash inflow

As shown in Table 7.4 estimated cash inflow for 1 year, 2 year and 3 year are

Rs. 1523548, Rs. 2417176 and 3495519.

Page 110: Feasibility of Maintenance Agency in Baroda

93

Table 7.4 Estimated Cash inflow

Total Industrial Units in Baroda = 15534

Puchased Charg

es

1 Year 2 Year 3 Year

2158 Units 2920 Units 3293 Units

% Rs. % Rs. % Rs.

1 Time 450 60 582660 46 604440 35 518647

2 Times 800 30 517920 40 934400 46 1211824

4 Times 1600 8 276224 10 467200 12 632256

8 Times 3400 2 146744 2.5 248200 3 335886

12 Times 5200 - - 0.4 60736 1 171236

AMC

2500 - - 1 73000 2 164650

10000 - - 0.1 29200 0.5 164650

20000 - - - - 0.3 197580

30000 - - - - 0.2 98790

40000 - - - - - -

50000 - - - - - -

Cash Inflow/ Year 100 1523548 100 2417176 100 3495519

7.4. Estimated Profit and Loss Accounts

As shown in Table 7.5 during 1 year profit is less compare to high

depreciation amount so Rs. 24077 loss occurred, while in 2 year and 3 year

PAT are Rs. 523192 and Rs. 819488.

Table 7.5 Estimated P/L Accounts

All amount in Rs.

Investments 746500 - 298000

1 Year 2 Year 3 Year

Cash Inflow 1523548 2417176 3495519

Cash Out flow 1480800 1609300 2240800

PBDIT 42748 807876 1254719

(Less) Dep.

Note: Find using

66825 60459 84024

Page 111: Feasibility of Maintenance Agency in Baroda

94

WDV- 10 % dep.

On equipments

and 5 % dep. On

furniture

PBIT (24077) 747417 1170697

(Less) Interest

Note: No loan for

initial fund so no

interest

0 0 0

PBT (24077) 747417 1170697

(Less) Tax (30%) 0 224225 351209

PAT (24077) 523192 819488

Fig 7.1 Estimated PAT

-100000

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1 Year 2 Year 3 Year

Page 112: Feasibility of Maintenance Agency in Baroda

95

7.5. Feasibility Analysis

First check Payback Period,

Table 7.6 Payback Period

All amount in Rs.

Year Investment Cash Inflow Cash Outflow PAT

1 746500 1523548 1480800 (24077)

2 - 2417176 1609300 523192

3 298000 3495519 2240800 819488

As shown in Table 7.6 after 2 year due to profit only Rs. 223308 will be

remaining from initial investment Because Rs. 746500 – Rs. 523192 = Rs.

223308), But in starting of 3 year Rs. 298000 more investment done by

company to meet demand rate, so total investment will be remaining is – Rs.

223308 + Rs. 298000 = Rs. 521308.

So, Payback Period = 2 +521308

819488

= 2.63 Years

Now find Profitability Index,

PI = Present Value of Cash Inflow/ Present Value of Cash out flow

Table 7.7 PV of Cash Inflow

Year Cash Inflow (Rs.) Discount Factor

(Cost or Return of

Capital 10 %)

PV of Cash Inflow (Rs.)

1 1523548 0.909 1384905

2 2417176 0.826 1996587

3 3495519 0.751 2625134

Total PV of Cash Inflow (Rs.) 6006626

Page 113: Feasibility of Maintenance Agency in Baroda

96

Table 7.8 PV of Cash Outflow

Year Investment

(Rs.)

Cash

Outflow

(Rs.)

Discount Factor

(Cost or Return

of Capital 10 %)

PV of

Cash

Outflow

(Rs.)

PV of

Investment

(Rs.)

0 746500 - - - 746500

1 - 1480800 0.909 1346047

2 - 1609300 0.826 1329281

3 298000 2240800 0.751 1682840 223798

Total PV of Cash Outflow (Rs.) 4358169 970298

5328467

Profitability Index (PI) =Present Value of Cash Inflow (Refer Table 7.7)

Present Valkue of Cash Outflow (Refer Table 7.8)

=6000026

5328467

= 1.13 > 1 𝑚𝑒𝑎𝑛𝑠 𝑝𝑟𝑜𝑗𝑒𝑐𝑡 𝑖𝑠 𝑓𝑒𝑎𝑠𝑖𝑏𝑙𝑒

Here payback period is less than 3 years and Profitability Index is 1.13 which

is greater than 1 that means Maintenance agency project in Baroda is

feasible.

Page 114: Feasibility of Maintenance Agency in Baroda

Chapter 8

Findings

Page 115: Feasibility of Maintenance Agency in Baroda

97

After this research one can find out that companies located in Baroda have

conventional machinery around 63 %, and mainly using Lathe m/c, Drilling

m/c, Cutting m/c, Milling m/c, Boring m/c, Welding Equipments with Crain as

conveying machine. So for any maintenance agency which want to develop

their self in Baroda expertise in Lathe m/c, Drilling m/c, Cutting m/c, Milling

m/c, Boring m/c, Welding Equipments with Crain and mainly for conventional

must required.

Out of 15534 companies in Baroda 84 % companies don’t have annual

maintenance contract and out of these 86.25 % companies don’t have

maintenance department and 34.55 % companies which have maintenance

department are not satisfied with their maintenance department.

61 % companies have positive intention towards maintenance agency

because intension likert scale mean is 3.45 and mostly companies are

planning to improve maintenance practices. 75.2 % companies are interest in

purchasing maintenance agency services because interest likert scale mean

is 3.76 and also find that companies are mostly interested in all machinery

services under one roof 24x7 services and intallment payment options. 72.6

% companies are having good perception about maintenance agency

because their mean is 3.63 and they believe that Maintenance agency has

more expertise in comparison to internal maintenance department,

Maintenance agency is able to solve maintenance problem in different no. of

ways, Maintenance agency is able to solve maintenance problem quickly

compare to maintenance department and Maintenance agency is better

option compare to internal maintenance department. Interest liker scale mean

is 3.89 and 84 % companies show willingness to purchase maintenance

agency services in future, Thus over all 80.9 % companies have positive

attitude towards maintenance agency services in terms of purchasing action.

Based on Profitability and feasibility analysis one can find out that

Maintenance agency will get back all investment after 2.6 years and

profitability index is greater than 1 (1.13), Thus Maintenance agency project in

Baroda is feasible.

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Chapter 9

Conclusion

Page 117: Feasibility of Maintenance Agency in Baroda

98

After this research one can conclude that Maintenance agency is feasible in

Baroda because companies located in Baroda have overall positive intention,

high interest level, good perception and positive attitude in term of purchasing

maintenance agency service which provide all service under one roof, 24x7

services and instalment payment option.

Overall profitability chances for maintenance agency is also good because

profitability index higher than one and within three years after starting

business Maintenance agency will able to collect all initial investment. At end

one can conclude that Maintenance agency is feasible in Baroda.

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x

Annexure II: Questionnaire

To study the feasibility of Maintenance agency in Baroda

1. Do you have machinery in your company?

Yes No

2. Rank following type of machinery based on number of machine you have of that type.

(Where 1 = Most no. of machine of that type)

____ Conventional

____ Semi Automatic

____ Automatic

3. For operational machinery,

Rank based on usage in

operation

(Where 1 = most usage)

No. of Machine Average age of machine

Lathe m/c

Milling m/c

Boring m/c

Shaper m/c

Drilling m/c

Hobbing m/c

Cutting m/c

Wire cut m/c

Heating Equipments

Polishing/Grinding m/c

Moulding m/c

Sand Mixer

Knockout m/c

Forging m/c

Rolling m/c

Welding Equipments

Sort blasting m/c

Bending/Punching m/c

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xi

4. For conveying machinery,

Rank based on usage

in operation

(Where 1= most usage)

No. of Machine Average age of machine

Crain

Bucket Elevator

Belt conveyor

Pipe Line

5. For power supply machinery,

6. Do you use machinery of different manufacturer?

Yes No

7. Do you have maintenance department in your company?

Yes No

If Yes then your maintenance department,

Within specific time solve all maintenance problems

Take more time to solve all maintenance problems

Don’t able to solve all maintenance problems

How many man powers in your maintenance department?

Permanent Contract

Less than 5

Between 5 to 10

Between 10 to 15

More than 15

8. Are you aware about other maintenance agency?

Yes No

Rank based on usage

in operation

(Where 1= most usage)

No. of Machine Average age of machine

Motor

Generator

Transformer

Electric Panel

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xii

If Yes then are you having annual maintenance contract?

Yes No

9. Do your most of the machinery come under warranty period?

Yes No

10. Rate the following sentences,

Strongly

Disagree Disagree Neutral Agree

Strongly

Agree

Company is satisfied with current

maintenance practice.

Company is planning to improve its

maintenance practices.

Company machine manufacturer provides

excellent maintenance services.

Company is paying reasonable price to

current maintenance agency for servicing

machinery.

Breakdown leads to shutdown in your

company.

For Company, prevention of breakdown is

important aspect.

Maintenance agency should provide all

maintenance services under one roof.

Maintenance agency should provide 24x7

maintenance services.

Maintenance agency should provide

installment payment option.

Maintenance agency should visit regularly

every month either breakdown or not, in an

organization.

Maintenance agency has more expertise in

comparison to internal maintenance

department.

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xiii

Strongly

Disagree Disagree Neutral Agree

Strongly

Agree

Maintenance agency is able to solve

maintenance problem in different no. of

ways.

Maintenance agency is economical.

Maintenance agency is able to solve

maintenance problem quickly compare to

maintenance department.

Maintenance agencies don’t response on

time when required.

Maintenance agency is better option

compare to internal maintenance

department.

Maintenance agency is required for

maintenance.

11. Will you purchase maintenance agency services in future?

Yes No

Company Information:

Name of Company: ______________________________________________________________

Company Address: ______________________________________________________________

______________________________________________________________________________

Company Website: ______________________________________________________________

Type of Industry: ________________________________________________________________

Products: ______________________________________________________________________

Annual Maintenance contract budget is Rs. ___________________________________________

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xiv

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