Analysis of the Distribution Channel and the End Customer of Stanley Hand tools

for B2B Market in Pune

Submitted bySaurabh Bhattacharya

PGDM(IB)Roll no-IB09257

Under the guidance ofProf .A.K.Biswas

BIMTECH&

Mr.Sumit SrivastavaStanley Works, India

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Summer Project Certificate

This is to certify that Mr. Saurabh Bhattacharya Roll No. 09IB257 a student of PGDM

(IB) has worked on a summer project titled Analysis of the Distribution Channel and End

Customer of Stanley Hand Tool for B2B Market in Pune at Stanley Works, India after

Trimester-III in partial fulfillment of the requirement for the Post Graduate Diploma in

Management programme. This is his original work to the best of my knowledge.

Date:___________ Signature ________________

(_________________________)

Name of Faculty

BIMTECH SEAL

Industry Certificate

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Acknowledgement

It is a matter of great pleasure to acknowledge the guidance, enormous assistance and co-operation extended to me from every corner, while proceeding with my internship

My first word of gratitude is due to Mr. Sumit Srivastava Sales Officer, my corporate guide, for his kind help and support and for his valuable guidance throughout the project. I am thankful to him for providing me with necessary insights and helping me out at every single step. I would also like to thank Mr . Kuldeep S. Bhardawaj as he found me credible enough to work for Stanley Works India (P) Ltd

My heartfelt thanks to my respected Faculty Guide Prof.A.K.Biswas, Birla Institute of Management Technology, Greater Noida, without his continuous help the project would not have been materialized in the present form. His valuable suggestions helped me at every step

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I would also like to express my gratitude to all other people who had extended their helping hand directly or indirectly throughout the internship, and without whose help my internship would not have been completed.

I would also like to thank my parents for their guidance and support. They have remained a source of inspiration for me

Saurabh BhattacharyaIB09257

PGDM-IB

Executive Summary

The Stanley Works, The 167 year old company is a worldwide manufacturer and marketer of tools, hardware and specialty hardware products for home improvement, consumer, industrial and professional use. The company stills bears not only Frederick Stanley's name but also the spirit and passion that drove him to succeed where others failed.

Stanley India, a fully owned subsidiary of Stanley Works, U.S. having its head quarters in Delhi, started its operations in the year 2007. They import their own products manufactured in different countries and sell those in Indian Market with the help of its extensive chain of distributors & dealers. In the past one year, Stanley has been able to appoint more than 170 + distributors all over India. The U.S. hand tool industry is estimated to be a $6.2 billion. Hand tool demand, including power tool in the United States is expected to rise 3.1% annually through 2011, reaching $14.3 billion, according to a recently released report

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All the products of Stanley are categorized into 3 segments: Hand Tools, Hardware, Assembly technology and Hydraulics. In India, Stanley has launched nearly 2400 products, and is in the process of launching more. Presently, Stanley India is focusing on Industrial Tools and Hardware business in IndiaIndia has a competitive advantage in the hand tool industry compared to other countries because of easy availability of raw materials, entrepreneurship skills and skilled labor at competitive wages. The hand tool industry as a whole is witnessing a shift of manufacturing base from traditional manufacturing countries in Europe and Taiwan to the developing world and this is a good sign for India to benefit. There has been an average growth of 17% per annum of the hand tool market in India for the last 7 years.

The study covers the business development potential and the study of the buyer’s behavior of Stanley hand tools for B2B market in Pune region.The study started with the much needed product training by the Stanley employees. A tour to the Authorized Distributor and Dealer of Stanley in the city was carried out under the guidance of the Industry mentor.

The Hand Tools industry is a very labor intensive industry. The field study started with gaining knowledge about the industries in Pune and their needs and requirements vis-à-vis hand tools. This was done on a daily planned visit to the Industries in and around Pune city. A 6 day weekly plan was prepared and followed so as to target one location of the city per week. Companies were segmented in such a way they could be potential customers for Stanley hand tools in future. A comparative study of different brand of hand tools used in different industries was carried out by meeting different end users of the company.

The respondents were interviewed on the basis of a structured questionnaire. Some points were also noted on the basis of my own observation during my visits to the manufacturing plants. The comparison was done on parameters like quality, price, performance, availability, durability, design, maintenance, functionality, customization, after sales service (ASS), lead time, discount offered. This was judged on Likert scale. Some open ended and closed ended questions were also asked to the respondents. Quotations were sent to companies after receiving request for the same.

On the basis of this study and my observations some critical recommendations were made at the end of this report. If these recommendations are applied, it will boost the sales and create an awareness of Brand in the B2B market of Pune.

Recommendation for better advertising and promotion was made. The company needs to work on its branding awareness. It is highly recommended that Stanley use testimonials from satisfied users to increase brand awareness. Certificates from Satisfied Stanley customers must be used as a proof. To expand the market in India, it is important to realize the price sensitive customers. The company must justify the price premium. Either increase the volume of sales or reduce the cost of production. Demonstrate to the customers that the performance of Stanley product is better.

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Provide tools for usage as samples. It is a general perception of the customer that since the office is not located in the city the after sales service will not be effective. Hence a regional office must be set up in the city Rs.1.5 crore pa is the Stanley’s held value in PuneRs.1.6 crores pa is my proposed potential value in addition to the existing value. My proposed potential is little more than 100% of the existing value generated from Pune. Target the premium segment, then target the next segment. To target the less premium segment bring down the price and sacrifice the price premium to increase the volume of sales.Pune is a developing city with large number of top manufacturing companies. These companies are potential customers of Stanley. The sales force in Pune should be increased. Sales force should not only communicate value but create value. Value can be providing innovative solutions. It is also recommended to have a warehouse or an exclusive showroom in the west region. Concentrate on customers need, attitude and changing behavior due to the market fluctuations. Make the products available to the customer as quickly as possible.

Table of Content

Content Page No.

Chapter I: Introduction 9Chapter II: Objective 112.1 Primary Objectives 112.2 Secondary Objectives 112.3 Scope of the Study 112.4 Limitations of the study 11Chapter III: Methodology of study 123.1 Reach of the Project 123.2 Research Plan 123.1.1 Data Sources 123.2.2: Research Approaches 123.2.3: Research Instruments 133.2.4: Sampling Plan 133.3: Collection of Data and Analysis 133.4: Findings & Recommendations 13

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3.5: Steps Involved 133.5.1: Literature study 133.5.2: Expert opinion 133.5.3: Descriptive study 133.5.4: Scaling technique 133.5.5: Designing questionnaire 133.5.6: Deciding the sample size 133.5.7: Data collection 133.5.8: Analysis of the data collected 153.6: Plan of data analysis 15Chapter IV: Industry and Company analysis 164.1: Company Overview 164.1.1: Authorized Distributors: 224.1.2: Authorized Dealer 224.2: Stanley’s Valued Customers 23Chapter V: Analysis and Findings 245.1: Industry Segmentation 255.2: Analysis of the Respondents 255.3: Awareness of Stanley in the Market 265.4: Source of Information about Hand Tools 265.5: Most widely used Hand tools in the Industry 275.6: What are the Hand Tools generally used by the respondent 285.7: Frequency of the Purchase 295.8: Tools that Break or don’t function properly 295.9: Result of the Factor Analysis 305.10: Satisfaction level of the present Hand tool 345.11: Decision Maker in the Company 34Chapter VI: Conclusions and Recommendations 37Chapter VII: Bibliography 40Annexure I: Company History 41Annexure II: Stanley products 50Annexure III: Literature Support 57Annexure IV: Potential of the companies 62Annexure V: Details of the company visited in Pune 64Annexure VI: Details of Factor Analysis 67Annexure VII: Questionnaire 80Annexure VIII: Standards 83

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Chapter I: Introduction

The Stanley Works is positioned to meet tomorrow's competitive challenges and continue as a leading worldwide manufacturer and marketer. Our businesses are diversified in terms of products, geographic spread and channels of distribution. We have moved effectively to expand our products into new market areas such as the Far East and Eastern Europe.Today, the Stanley name is known around the world as a reliable guarantee of quality and value.The Indian operations of Stanley is involved the· Laser Products· Hardware· Hand Tools· Proto

The most popular product category is hand tools. The tools, which are operated by hands, are known as hand tools. Hand tool products include a broad category of hand tools. Hand tool products are broadly used in all type of industries. Today technology has become highly advanced but still the importance of hand tools products cannot be ignored. In fact hand tool

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products are the backbone of all the industries; no matter how advanced are the machines and technology used there. No industrial process can be executed without using hand tools.As machine can never replace importance of mankind the same way automatic tools can never take place of hand tools. The use of hand tools is must in every kind of industrial job but sometimes it is not promptly noticeable. Even if the entire process is executed by automatic tolls and machine, then too hand tools are required for additional jobs like packing, finishing etc. Furthermore the efficient working of machine is also dependant on hand tools. Hand tools are essentially required for repair and lubrications of machines.Apart from this they are widely used for home repairs, garages, electrical appliances etc. A kit full of primary hand tools products may be easily found at any home. Hand tools are used to execute very complex as well as simple tasks. Screwdriver is such a common hand tool product, which is the part of every engineer’s tool kit as well as in every household. Spanners, screwdrivers, pliers, clamps, riveters, wrenches etc., are used for tightening and riveting the various screws etc. Hand tool products are designed to carry easily. That’s why every vehicle has its own set of hand tool products. It can be used in time of any breaking of machine where one does not find any help. Hand tool is a savior in time of need. A kit of hand tools products is like a first-aid box for machinery.

Factors to consider for the growth of the hand tool industryHand tool industry is a growing one. Developed countries like EU, USA have already been manufacturing and exporting hand tools since a long time. Developing countries like India, China, and Japan are coming up. Some factors that are to be considered for the overall development of the industry are as follows:

Manufacturing centers should be equipped with the latest hand tool manufacturing technology.

For small, medium scale entrepreneurs in the developing areas, credit should be made available to them at lower rates of interest. 

This industry is usually a part of hand and power tool industry as a whole. Hence, steps should be taken to built up a Hand Tool Industrial Estate, exclusively for the Hand Tools Units, in all countries. 

Labor laws of all countries dealing with hand tools should be made more investor friendly, especially for small entrepreneurs.

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Pune has a large potential market for Stanley Hand-Tools. Stanley Hand tools are manufactured in different locations outside India. A warehouse in Sonipat stocks all the materials and is supplied to the distributors from here.Pune is a base of leading Automobile companies in India. Stanley already supplies to Automobile Companies like: Mahindra Volkswagen Mercedes Benz General Motors Fiat Premier Kinetic Motors Dilip Chabria Design (DC Motors)

As the market research was done to B2B market the sample size was taken as 65. The data was collected from purchase managers and end users. Certain care was taken to avoid errors of history as the consumers were all contacted at the place of location. The other errors were either avoided or even though present it was cancelled out due to the presence of the same with other brands.

The problems that I had to study during my internships in Pune are: understanding the buying behavior of the customers and the business development potential for Stanley Hand Tool B2B market

Chapter II: Objective and Scope

2.1: Primary Objectives· To assess the scope for the business development of Stanley Hand Tools in Pune.· To study the Decision making behavior.

2.2: Secondary Objectives· To find the potential for Stanley Hand Tools in the existing market.· To find the hand tools purchaser’s needs and the expectation on hand tools.· To identify potential customers and new plants where business development can truly happen

2.3: Scope of the StudyThe study provided an insight into the hand tools usage, expectations and attitude towards hand tools like spanners, pliers and screw drivers. And to find out what factors the customers seek in general, with regards hand tools. This study will help to find out the feedback of Stanley hand tools with regards to price, brand, quality, durability, reliability, availability, etc.

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2.4.: Limitations of the studyNo research would be a fool proof, 100% error free with the time/ money constraints and within the limited resources. My research study was no exception.I too had my own set of problems in terms of price, availability and with the fact that I was a first timer in this fieldThe first limitation could be the fact that Expert opinion. Depth interview and all theDescriptive studies were conducted on a sample size of 65. Though these techniques were conducted to unearth it still could be limited.· Next limitation would be the fact that the sample size of 65. More the sample size more detailed study would be.· The sample taken for creating the model included people from various industries in Pune.· The conclusions made are based on the data collected from the sample size. So the conclusion are based how truthfully the people entered the data.These were some of the limitations identified during the course of my research

Chapter III: Methodology of Study

The projected was executed in such a way that it is complete to the maximum extent covering all the aspects and thus arriving at a suitable conclusion to meet the objective of the project. Few recommendations were also suggested to the company, which can help the organization to grow further and penetrate faster into the new markets.

3.1: Reach of the ProjectThe study was conducted covering the geographical region of Pune. The reach of the project consisted of various industries and dealers located in these above mentioned areas.

3.2: Research PlanThe research was started with a well laid research plan and weekly schedule. The research plan included the following important stages.1) Data Sources2) Research Approaches3) Research Instruments4) Sampling Plan

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3.2.1: Data SourcesPrimary Research: most of the data in this project was through primary research conducted in industries. It was done completely through personal interviews, though a prepared questionnaire was used as guide line and which was later filled summarized.

Secondary Research: Latest information available on internet about various industries and dealers was also used apart from the data got through primary research, so as to have a good study of the hand tools market in Pune

3.2.2: Research ApproachesApproaching Customers/Industries:– Getting permission into an industry would complete almost 50% of your job as it would give the platform to know about their operations.– Get the details of the persons as many as possible in the industry– Spend your maximum time in the industry, so that you would know what the work Environment is i.e., whether they are using quality products, how much of their operations are being done by contractors, what is their hand tools purchase quantity and frequency of purchase, etc.– Also try to find out how the process of purchase takes place, which might be different for different departments.

Closing the sale:– This is very important for both the parties to build the relation and also for oneself as this give motivation and adds more value to your work.

– To reach to this stage, one must be clear how much work needs to be put in, which operates as a funnel like, if u want to reach or make x sales at least you need to meet 10x customers.– The time in which you would achieve this should also be planned in the similar way.

3.2.3: Research InstrumentsThe research instrument was both qualitative and quantitative and hence consisted of personalInterviews, which were guided by self prepared Questionnaires. Each of the questionnaire consisted of 12 questions on an average. The questions were both open ended and closed ended. The closed ended questions were a diverse type consisting of single choices, multiple choices, likert scales and rating scales.

3.2.4: Sampling PlanThe industries to be visited were based on their type of industry like Automobile Manufacturing and assembly units, steel Plants, chemical industry, Fabrication Industry, and any other major industries. The sample for studying the end user of Hand tools was chosen to be65 from 38 different companies visited. These included users from different departments of the Company.Initial leads were taken from 2 Distributors and 1 Dealer in Pune under the guidance of the Industry Mentor.

3.3: Collection of Data and Analysis

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Various Pie-charts and bar-graphs are made to have an easy and quick understanding of the study conducted. Initially all the questionnaires were analyzed individually, and then finally an overall comparison of the various responses from all the dealers was done and analyzed.

3.4: Findings & RecommendationsFinally, the various findings from the study were listed out along with certain invaluable recommendations for STANLEY, to help the company generate and tap the new markets.

3.5: Steps InvolvedThe following steps were followed to attain the objective.

3.5.1: Literature studyThere is no specific study, which was done on identifying hand tools purchasers purchase behavior.

3.5.2: Expert opinionExpert opinion is the process where an expert in the related field is interviewed to get information that can be used in the study. In this case distributors, dealers, sales officers, marketing manager of Stanley for south and purchase managers of industries which use hand tools are considered as an expert.

3.5.3: Descriptive studyThe descriptive research design used in this case is survey method and personal interview. Personal interview with various industry purchase managers made the researcher to find some of the factors and ideas by observation, hearing their grief and interacting with them.

3.5.4: Scaling techniqueThe scaling technique used in the questionnaire was likert scale, open, closed ended and ranking scale. All the questions in the main questionnaire were extracting answers by this scale. This was maintained throughout the questionnaire to keep the reliability and validity in control. The likert scale technique is widely used to determine the level of agreement or disagreement of an issue in the questionnaire. And another set of likert scaling were used to determine the most important and least important of an issue in a questionnaire.

The scale was designed with five response categories as shown below.

1---Most important2---Important3---Neutral (Neither important nor unimportant)4---Less important5---Least important

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The questionnaire when framed was carefully done to avoid complex words. In circumstances where such words could not be avoided, explanations were given for the respondents to understand easy.The ambiguous words or sentences were also avoided. Each section of the questionnaire had an initial explanation of how to answer the questions. An example was also given for easy understanding of filling the questionnaire. Important instructions were highlighted in bold letters to improve the vision and for a quicker understanding of the instructions by the respondent.The questionnaire was altered on and off as required. The corrections were made and then it was tested amongst the respondents. The respondent didn’t have any problem in understanding the questionnaire and answering it.

3.5.5: Designing questionnaireBased on the results obtained from the descriptive study and using scaling method the finalQuestionnaire was prepared and administered to the respondents.

3.5.6: Deciding the sample sizeThe sampling technique used for the research was more of a stratified random sampling. This is because of the customers who were all possible to meet were selected. The sampling was done as mentioned above due the lack of time to get data.

3.5.7: Data collectionData was collected from both purchase managers and end users using stratified random sampling.The researcher went to each of them and conducted a depth interview, which takes almost 15-20 minutes. The sample was about 65 potential customers for Stanley Hand ToolsThe data for the questionnaire was collected directly and through e-mail from purchaser mangers and end users. The data was collected from most of all industries in Pune only. Using the data collected by the researcher was able to come with factor analysis to see whether the factors are really related to the buying decision.

3.5.8: Analysis of the data collectedAll the data collected was fed into a database created in Microsoft Excel especially for this purpose.The various tools and functions available on excel were used for necessary calculation. Bar graphs and pie charts were generated to make the interpretation of the results easier. SPSS software was used for the purpose factor analysis.

Data analysis model is econometric model and was planned to be done with the statistical tool SPSS.The data was got mainly in the likert scale for this purpose. The various tools and functions available on Excel were used for necessary calculations. Bar graphs and pie charts were generated to make the interpretation of the results. SPSS software was used for the purpose of factor analysis.

3.6: Plan of data analysisThe data analysis done as in the plan given below1. Filtering of the questionnaire were done

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2. The questionnaires were sorted into the respective groups3. Coding of the questions were done4. All the data was entered into different excel sheets5. This data was copied to the SPSS tool all the variable were explained6. The other questions related awareness, departments, ranking and current brand were analyzed using Micro soft Excel.7. Results were tabulated and conclusion and recommendations were drawn.

Chapter IV: Industry and Company Analysis

4.1: Company Overview.It is 167 years old company. Stanley is a number one Brand in the U.S and Europe."The secret of this company's success is an open one -- all who will may avail themselves of it, and all who do so will succeed -- one word tells it all and that one word is – ExcellenceWith products sold in more than 130 countries, the Stanley® brand is recognized worldwide. From crisis comes OPPORTUNITY. The chance to emerge BETTER than ever before. By remaining committed to our guiding PRINCIPLES. And TRANSFORMING a LEGACY established over a century ago. Today’s Stanley is lean, flexible, diverse, and focused on long term GROWTH.Today’s Stanley is READY for tomorrow

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The Stanley Fulfillment System (SFS), created to encompass and improve upon Stanley’s long tradition of operations excellence, is the heart of our business operations. It’s a continuous improvement program focused 100% on the needs of our customers and a comprehensive business system that guides the way we work every day. SFS is at once our blueprint for success and our roadmap for continued growth.

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At the heart of SFS are three simple, customer-facing goals:

· Improve Service· Increase Quality· Reduce Costs

Service, quality and costs have always been strengths at The Stanley Works. SFS is our commitment to making them even stronger

Stanley also has a good portfolio of brands many of which are strong leaders in their categories.

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Stanley has recently merged with Black & Decker

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Stanley’s Strategic FrameworkBe A Consolidator Of The Tool Industry  Increase Relative Weighting Of Emerging MarketsBe Selective and Operate In MWhere:  Brand Is Meaningful (Stanley Or Sub-Brand)  Value Proposition Is Definable And Sustainable Through Innovation  Global Cost Leadership Is Achievable.Pursue Growth On Multiple Fronts Through: Building On Existing Growth Platforms Developing New Growth Platforms over Time. Accelerate Prss Via Stanley FulfillSystem  Increased Scale In Hand And Power Tools Greater Presence In Latin America, Middle  East and Eastern Europe Significant Brand Equity  Extensive Array of High Value-Added  Products And Strong Culture Of Innovation  Bringing Together Two Cost Leaders Increased Size And Scale  Adds Attractive New Engineered Fastening Growth Platform

èOwnership50.5% Stanley / 49.5% Black & DeckerèCompany Name Stanley Black & Decker

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All the products of Stanley are categorized into 3 segments: Hand Tools, Hardware, Assembly technology and Hydraulics. In India, Stanley has launched nearly 2400 products, and is in the process of launching more. Presently, Stanley India is focusing on Industrial Tools and Hardware business in India.Some of the valued customers of Stanley India are Tata Motors, Airtel, Nokia, Mahindra,DMRC, etc.

No. of Distributors for Stanley Products in India: 

PROTO                            5

Hardware                        20         

Laser Products                 8

Stanley Hand Tools      140

Stanley Works will set up its manufacturing facility in the country and aims to clock a turnover of $100 million in next three years from Indian operations.

Geographical reach of channels in India

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Stanley India Hierarchy Chart

Distribution Stanley follows a hybrid distribution system.

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India General Manager

Regional Managers

Sales OfficersBusiness Development

At present Stanley has three channel partners in Pune-two Authorized Distributors and One Authorized Dealer.4.1.1: Authorized Distributors: Bhaigora Enterprises: LocationèRasta Peth Indian Tools: LocationèChakan

4.1.2: Authorized Dealer Super Hardware: LocationèPimpri

Deficiency: No regional office in the city.Stanley is rated high on the price factor when compared to its competitors in India.

Some of the Competitors of Stanley Tools in Indian Markets include

Taparia Everest East Man Snap On Ambika Bahco, Blue Point Sioux Multitec Mac Master Jhalani.Amongst all, Taparia is the biggest competitor for the Stanley Tools. Irony is that Stanley Works is expanding in India when Taparia is expanding its operations in European Markets

Since the company has channel partners in the city, the service provided is done by the company. Hence the company has an active role to playThe company has a good market in Pune. The revenue generated by the Pune market is approx Rs.1.5 crores p.aStanley’s customers in Pune Mercedes Benz Volkswagen General Motors Mahindra Fiat MTN Indian Army

The Authorized Distributors/Dealers are allocated different locations of the city for business.A company representative is available to cater the market of Pune. Other than the company representative the Distributor and the Dealers Executives also play a vital role in generating and exploring the business development potential in the city. Since the Distributors/ Dealers already cater to some part of the market in the city, they are a useful tool in converting and convincing the End Users to use Stanley Hand Tools rather than the local made Hand Tools.

4.2: Stanley’s Valued Customers

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Chapter V: Analysis and Findings

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The City of Pune is a hub of Manufacturing companies Atlas Copco, Alfa Laval, LG, Finolex Cables etc, and leading Automobile making companies Force motors, DC motors, Tata Motors, Fiat, Premier Motors etc..Segmentation was done on the basis of customers who want same type of benefits or solution to a problem from the offered product. Demographic variable was also considered. It was important for me to understand the Key Organizational Characteristics of the buying organization while segmenting the Companies.

SegmentationNow I have done Macro and Micro segmentationMacro Factors Size of the organization Location Organizational structure

Micro Factors Decision making Unit Characteristics Buying behavior

Since I have to study the buying behavior, I have segmented the customers on the basis of buying behavior.

Different companies were targeted so as to cover as many companies as possible divided geographically across the city limits. 4 such major locations were chosen.A weekly plan was made and followed so that one particular location was covered.

The locations are Hinjewadi Pirangute Pimpri-Chinchwad Chakan

I chose 38 companies after studying the companies on a daily basis and taking appointments.There was a weekly plan made and also followed.

The potential of the Pune market that I surveyed is Rs.1.63 crores.Details have been put in the Annexure IV

5.1: Industry Segmentation

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SectorNo.of respondents

Automobile 4Chemical 1Engineering /Manufacturing 30Fabrication 2Steel Plant 1

Manufacturing and Engineering industry is the main customers for Stanley. 79% of the respondents were from such industries.

5.2: Analysis of the Respondents

Different end users from various departments were interviewed so as to get a wide feedback about the study.Other departments include Vendor Development, Operations, and Quality Control.

Segmentation Of Customers

No.of respondents

Purchase 20Maintenance 21

Vendor Development 1Operations 4

Poduct Development 5Quality control 1

Production 13

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65 End Users including purchase managers of various companies were interviewed.Out of the 65 respondents, 31% were Purchase managers, 32% were Maintenance Incharges, and 20% were Production Managers

5.3: Awareness of Stanley in the Market

15% of the respondents are aware of Stanley Hand Tools.

5.4: Source of Information about Hand Tools

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Awareness Of Stanley

No. of respondents

Yes 10No 55

Source of informationNo.of

respondentsPresent vendor 20

Stanley representative 10Seminars or exhibition 8

Friends or peers 22Others 5

The data shows that 31% of the respondents admit that they get the Information about Hand tools from their local vendor.Distribution channels are hence proved effective.A significant number of respondents (28%) have admitted that word of mouth of a good product can spread like grapevine.Another 18% of the respondents visit exhibitions and seminars.

5.5: Most widely used Hand tools in the Industry

20% of the respondents admit that Spanners are the most widely used Hand tools after Allen Key (34% respondents agree that Allen Keys are most widely used).

Most widely used toolsNo. of

respondentsSpanners 13

Torque Wrench 8Hammers 2

Hex Keys/Allen Keys 22Pliers 10

Crimping Tools 2Tool Kits 8

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5.6: What are the Hand Tools generally used by the respondent

45 of the respondents out of 65 use Taparia Brand Hand tools, i.e. 69%. Only 6% of the respondents use Other Important Brands.

Majority of the customers use Taparia made tools in the Industry. 69% of the respondents admitted that they use Taparia make tools

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Hand tools UsedNo. of respondents

Taparia 45Everest 8Cromwell 2Others 4Jhalani 4Gedore 2

5.7: Frequency of the Purchase

51% of the respondents purchased hand tools yearly, 6% purchased Half yearly, 3% purchased Quarterly and 40% purchased once in 2 years

Frequency of purchasing Hand tools

 No. of responses

Yearly 33Half yearly 4Quarterly 2In 2 years 26  65

5.8: Tools that Break or don’t function properly.

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Tools that frequently break

No. of respondents

Hammers-Breakage 23Screw Driver-Breakage 7

Jaw Pullers 5Torque Wrench 30

35% of the respondents complain about Hammer breaking from the ‘T’ joint. It is important to note at this stage that only 3% of the respondents admit that Hammer is most commonly used tool in their company.Majority of the respondents complain about Torque Wrench not functioning well. Again 12% of the respondents have agreed that Torque Wrench is the most widely used Hand tool.

5.9: Result of the Factor Analysis

The 12 items of Stanley were subjected to principal components analysis (PCA) using SPSS Version 16. Prior to performing PCA the suitability of data for factor analysis was assessed. Inspection of the correlation matrix revealed the presence of many coefficients of .3 and above. The Kaiser-Meyer-Oklin value was .703, exceeding the recommended value of .6 (Kaiser, 1970, 1974) and the Barlett’s Test of Sphericity (Bartlett, 1954) reached statistical significance, supporting the factorability of the correlation matrix.

Principal components analysis revealed the presence of four components with eigenvalues exceeding 1. Then I decided to consider 3 factors. To aid in the interpretation of these three components, Varimax rotation was performed. The three component solution explained a total of 50.469 per cent of the variance, with Component 1 contributing 20.146 per cent and Component 2 contributing 17.155 per cent and Component 3 contributing 13.169 per cent.

The results of this analysis have reduced the 12 factors to three.Main loadings on Component 1 are items Quality and DurabilityThe main items on Component 2 are Maintenance and FunctionalityThe main items on Component 3 are Price and DiscountDetails of the factor analysis has been provided in Annexure VI

Varimax rotation for 3 factor

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Now we reduce the factors to three and repeat the same process Varimax rotation-3 factor

Total Variance Explained

Component

Initial Eigenvalu

es

Initial Eigenvalu

es

Initial Eigenvalues

Extraction Sums

of Squared Loadings

Extraction Sums

of Squared Loadings

Extraction Sums of Squared Loadings

Rotation Sums

of Square

d Loadin

gs

Rotation Sums of Squared Loading

s

Rotation Sums of Squared Loadings

 

Total % of Variance

Cumulative %

Total % of Variance

Cumulative %

Total % of Variance

Cumulative %

1 3.086 25.713 25.713 3.086 25.713 25.713 2.417 20.146 20.146

2 1.639 13.660 39.373 1.639 13.660 39.373 2.059 17.115 37.300

3 1.331 11.096 50.469 1.331 11.096 50.469 1.580 13.169 50.469

4 1.109 9.245 59.714

5 .933 7.776 67.490

6 0.842 7.014 74.504

7 0.728 6.064 80.568

8 0.666 5.553 86.121

9 0.448 3.736 89.857

10 0.438 3.647 93.504

11 0.416 3.467 96.971

12 0.363 3.029 100

Extraction method: Principle component analysis.

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Component Matrixa

Component

1 2 3

Quality .615 .492

Durability .524 -.338 .410

Price -.375 .504 .517

Availability .484 -.315

Performance .418

Customization .630

Design .802

Manitenance .550

Reliability .556 .427

Functionality .602 .377 -.462

Leadtime .572

Discount .459 .475

Extraction Method: Principal Component Analysis.

a. 3 components extracted.

Component Transformation Matrix

Compo

nent 1 2 3

1 .778 .578 -.248

2 -.288 .678 .677

3 .559 -.455 .693

Extraction Method: Principal Component

Analysis.

Rotation Method: Varimax with Kaiser

Normalization.

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Rotated Component Matrixa

Component

1 2 3

Quality .813

Durability .734

Price .793

Availability .557

Performance .397

Customization .581

Design .685 .381

Maintenance .325 .497

Reliability .654

Functionality .813

Lead time .377 .504

Discount .699

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 4 iterations.

Interpretation of Varimax Rotation In the table labeled Total Variance Explained there are only three components listed in the right-hand section (as compared with four, in the previous un rotated output which is mentioned in the Annexure VI in detail). This is because I asked SPSS to select only three components for rotation. The distribution of the variance explained has also been adjusted after rotation. Component 1 now explains 20.146 per cent of the variance and Component 2 explains 17.155 per cent and Component 3 contributing 13.169 per cent. The total variance explained (48.2 per cent) does not change after rotation, just the way that it is distributed between the two components.

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5.10: Satisfaction level of the present Hand tool

The following data shows that 52% of the respondents (46% Excellent and 6% Good) are actually satisfied with the present hand tools, and 48% of the respondents are under the satisfaction level

5.11: Decision Maker in the Company

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Satisfaction level of present Hand tools

 No. of respondents

1-Excellent 302-Good 43-Neutral 44-Bad 125-Dissatisfactory 15

Decision maker while purchasing the

equipmentsNo. of

respondentsEnd User 50

Purchase Department 15

The above data shows that majority of the time the decision maker is the different end users in the company.Different department will have their different requirement and they in turn ask the Purchase Department to order the particular tool. In some companies it was observed that the Purchase manager is the decision maker, though the percentage is very less approx 23%.

77% of the respondents are End Users who are the decision makers when it comes down to take decisions on which company tools are to be purchased

An open question was also included to the 15% of the respondents who were aware of Stanley as a brand of hand tools. They were asked the reason why they did not buy Stanley Hand Tools. 60% of the respondent did not purchase Stanley products of its high price, 30% of the respondent fear that after sales service will not be available since there is no office in Pune.

Reasons for not purchasing Stanley tools

No. of respondents

High price 6After sales service 3

availability 1

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After my study it was clear that the Brand awareness of Stanley in the market of Pune is very low. Only 15% of the respondents knew Stanley as a brand of hand tools. The remaining 85% of the respondent are also potential customers of Stanley, but are not aware of the company’s existence in the market. Few factors that needs to focused are Quality and Durability Maintenance and Functionality Price and Discount (according to the factor analysis performed earlier)

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Chapter VI: Conclusions and Recommendations

ConclusionAdvertising and Promotion are not very effectiveRecommendations-Take part in Auto shows in India or up-coming Trade Shows in India like IndiaMART AMTEX 2010 (Asian Machine Tool Exhibition) from, July 23-2010to 26th July 2010 to be held in New Delhi.Automation 2010 in Mumbai-Bombay Exhibition Centre - NSE Exhibition Complex, Mumbai, India from September-21-2010 to 24th Sep-2010Other than participating in such events, the company should also Advertise and create an awareness in the Industry.This can be done by advertising in Auto magazines, Business magazines, TV advertising.Collaboration with Automobile companies-so that they can promote Stanley tools as a recommended tool kits for assured safety.

Conclusion:Only 15% of the respondent I surveyed was aware of Stanley as a Brand.RecommendationsWord of mouth is the best way of advertising. It is highly recommended that Stanley use testimonials from satisfied users to increase brand awareness. Certificates from Satisfied Stanley customers must be used as a proof. Organize regular corporate functions like Dinners, where Stanley’s top executives can interact with the executives from the Industry. Complimentary stationeries with Stanley logo should be distributed among these executives. This will definitely increase the Brand awareness among the local executives. Brand is a distinctive identity of the company, it promises value. Without a great product and service there can be no successful Brand. Having a brand with high perceived value in the minds of the customer will set a stage for a long lasting relationship.

Conclusion:The Price structure of Stanley equipments is very high. Most customers are not convinced about the price premium that they have to pay when they buy Stanley products.To expand the market in India, it is important to realize the price sensitive customers. The company must justify the price premium. It is difficult to convince the customers to purchase Stanley products on the grounds that Stanley products have better and long lasting life cycle.Recommendations:Either increase the volume of sales or reduce the cost of production. Demonstrate to the customers that the performance of Stanley product is better. Provide tools for usage as samples.Look at the cost effective measures that can be taken to reduce the price, this was out of the scope of my study; hence I cannot comment anything on the pricing factor. But certainly this should be considered.

Conclusion:

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No Regional OfficeRecommendation:It always helps to set up a regional Office in the city.According to my research a majority of the Customers are worried about the After Sales Service (ASS). The very fact that there is no office in Pune and there is only one office in New Delhi i.e. the corporate office forces the customer to think once again before taking any purchase decision. It is a general perception of the customer that since the office is not located in the city the after sales service will not be effective.

Conclusion:The Pune market has a very high potential for Stanley hand tools. According to my study the potential of the market is Rs.1.63 crores pa.Rs.1.5 crore pa is the Stanley’s held value in PuneRs.1.6 crores pa is my proposed potential value in addition to the existing value. My proposed potential is little more than 100% of the existing value generated from Pune.Recommendations:I have already send quotations worth Rs.10 lac approx. Follow up on these orders.Target the premium segment, then target the next segment. To target the less premium segment bring down the price and sacrifice the price premium to increase the volume of sales.Pune is a developing city with large number of top manufacturing companies. These companies are potential customers of Stanley. In my report I have mentioned the names of the top companies in India which have manufacturing plant in Pune. Apparently these were never targeted. If these companies are tapped, the sales will increase drastically.

Conclusion:Small sales force.Recommendation:Geographically the city limits is very large, hence it is strongly recommended to increase the sales force team. Practically it becomes difficult for one sales officer to handle so many regions and so many companies. This results in delay of response. Sales force should not only communicate value but create value. Value can be providing innovative solutions.

Conclusion:No warehouse or showroom in the cityRecommendation:Since all the equipments are not stocked with the local Distributor, it is strongly advised to have a warehouse in the west region. I faced such situations many times when the customer wants to have a demo of the product and it is not available with us. To add on to it the lead time is very high.One of the top executive I visited recently rightly said “in India, it’s a tendency to dig a well only when you are thirsty”. This is very critical but a soft learning for me, which also makes it obvious that customers want quick service, if they do not get quality product when they need it, they compromise on the quality and order the product from the local market, which is delivered to them in less than the promised time by Stanley.

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Conclusion:I observed that it is a tendency in the industry to reject the product when they realize that it is made in china. (To add on to this the price is high) Recommendations:It is very important to change the perception of the end user. Most of the Stanley equipments that are available with the Distributor are either made in Taiwan or China. This gives a very negative impression of the company in the minds of the end user. It is strongly recommended to procure equipments which are manufactured in some other place. If this is not possible then the printing on the package should be made in English rather than Chinese.

Conclusion:Less Market penetrationRecommendation:Customers choose the offer that meets their needs or requirement better than any other at a price they are willing to pay. The solution is to provide benefits to the customer-relationship benefits. Concentrate on customers need, attitude and changing behavior due to the market fluctuations. Make the products available to the customer as quickly as possible.

All my decisions have been taken based on the responses and my analysis about the same.

Chapter VII: Bibliography

39

www.stanleytools.comwww.stanleyblackanddecker.comwww.industrialtools.inwww.wikipedia.comwww.agelessmarketing.comwww.marketingprofs.com www.hand-tools-manufacturers.comwww.faqs.org/sec-filings/091103/STANLEY-WORKS_8-K/ex991-.htmwww.hti.org/0410HTIStandards.htmwww.hand-tool-manufacturers.com/suppliers/www.learnmarketing.co.uk/consumer.htm

Annexure I: History

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History and GrowthIn 1843, an enterprise businessman named Frederick Trent Stanley established a little shop in New Britain, Connecticut to manufacture door bolts and other hardware from wrought iron. Mr. Stanley was the first Mayor in town; he brought New Britain rail service, gas lighting and a reservoir-fed water supply.

In 1930, Stanley invented the tape rules. Stanley tools have built nearly every home, school, church and hospital in America. Stanley Air tools build nearly every car and truck made in North America. Millions pass through Stanley Automatic Doors each day.Stanley Works

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42

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The Legend of Stanley

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Stanley Platforms.A) Consumer Tools.A world leader in the design, development and delivery of tools, Stanley brings to market the strongest and most innovative tools available. With thousands of products on the market andHundreds introduced each year; Stanley develops the tools consumers need to get the job done.

Key BrandsStanley®, Proto®, Husky®, Vidmar®, ZAG®, MAC®, Jensen®, Contact East®, Bostitch®,Atro®, Cobotics®, LaBounty®, Innerspace®Product categoriesIndustrial hand tools and tool boxes, professional and industrial mechanics tools, electronicdiagnostic tools, pneumatic fastening tools and fasteners, hydraulic tools, shearers, breakers and crushers.

B) Security Solutions.An industry powerhouse with a global footprint, Stanley Security Solutions builds on Stanley’s development of the first automatic door with integrated solutions that provide wall-to-wall security, including doors, hardware, software and service. Stanley’s Security Solutions protect buildings, airports and institutions all over the world.

Key BrandsBest® Access, Blick®, cj rush™, Frisco Bay™, HSM Electronic Protection Services,Integrator.com™, ISR™ Solutions, Sargent & Greenleaf™, Safemasters®, Senior Technologies™,Stanley® Access Technologies, Stanley® HardwareThe Stanley Security Solutions Product Group offers a wide array of electronic security products, mechanical security products, integration software, and installation and support services for a diverse set of industrial, institutional, and commercial facility applications.Electronic security, access and safety products manufactured and tested to the industry’s highest standards for functionality and long life. Applications include schools, banks, retail stores, hospitals, government agencies, manufacturing facilities, colleges and universities, and utilities, to name a few.

Mechanical security products include patented keying, customized master key systems andQuality door and lock hardware. These combine to supply customers with mechanical access control that is cost-effective and efficient.C) Industrial ToolsWith our powerful professional tools, Stanley’s Industrial Tools Group delivers big tools for big jobs. Recognized as leaders in Industrial Tools, our family of brands builds everything from cars and trucks to roofs and floors.Key BrandsStanley®, Proto®, Husky®, Vidmar®, ZAG®, MAC®, Jensen®, Contact East®, Bostitch®,Atro®, Cobotics®, LaBounty®, Innerspace®

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Product categories

Industrial hand tools and tool boxes, professional and industrial mechanics tools, electronic diagnostic tools, pneumatic fastening tools and fasteners, hydraulic tools, shearers, breakers and Crushers.

Platforms

Awards & Recognition.A steady stream of new and innovative products is the lifeblood of this company. In 2007, Stanley introduced more than 100 new products, many of which have won awards for great distinctions.

The company itself has been triumphant in winning numerous awards throughout the years for packaging, design innovation, communication and advertising. Most recently, Stanley won 4 Golden Hammer Awards in 2007 and also won two IDEA awards in the 2007 International Design Excellence Competition.

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Stanley has earned it’s industry stripes over the past 160 years being chosen as “Vendor of the Year”, “Innovator of the Year” and being included in the book “America’s Greatest Brands.” We’re featured with the likes of Marlboro, IBM, AT&T as well as Coke.

2007 Golden Hammer Awards

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Presented by Home Channel News, Stanley was the recipient of the following four awards at the2007 Golden Hammer Awards Ceremony: The Vendor of the Year Award. The Innovator of the Year Award for overall new product development in all categories. The Gold Golden Hammer Award for the Hand Tools category. The Business to Consumer Communications Award for the Alien commercial featuring the Stanley® MaxLife™ 369™ Tripod Flashlight.

2006 Golden Hammer AwardsStanley was the only multiple award winner at the 22nd Annual Golden Hammer AwardsCeremony, presented by Home Channel News. The awards, based on votes from retailers andbuyers, were handed out at a ceremony in Las Vegas at the 2006 National Hardware Show. Stanley won: The Gold Golden Hammer Award for the Hand Tools category. The Business to Consumer Communications Award for the Stanley® Sharpshooter® StapleGun World's Weakest Man campaign.The Innovator of the Year Award for overall new product development in all categories.

Both the Gold Golden Hammer for the Hand Tools category and the Business to ConsumerCommunications awards are the highest awards in their category. For the Innovator of the Year award, Stanley was voted number one in new product innovation across all 36 product categories.Brands Acquired.Our innovative Consumer and Industrial products help people utilize their skills, express their creativity and realize their visions on work sites around the globe. Brand names include Stanley®, FatMax®, Husky®, Goldblatt®, Bostitch®, Jensen®, Mac®, Proto®, La Bounty®, Vidmar®, CST®, David White® and ZAG®. Our Security Solutions brands include Stanley®, Best®, Blick® and Frisco Bay®.

Stanley Black & DeckerA Powerful Legacy, A future growth with Black & Decker

(Acquisition of Black & Decker)Two Companies with great legacy

Stanley

Established In 1843 By Frederick Trent Stanley, Who Founded A Small Hardware Manufacturing Shop In New Britain, CT• 166 Year Reputation For Product Quality And Service• 133 Years Of Consecutive Dividends

Black & Decker

Established In 1910 By S. Duncan Black And Alonzo G. Decker, Who Founded A Small Machine Shop In Baltimore, MD• 100 Year Reputation For Product Innovation And Customer Focus• 72 Years Of Consecutive Dividends• World Class Power Tools Portfolio

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Strategic Benefits

A Global Leader In Hand and Power Tools

 Iconic Brand Portfolio - Over 250 Years Of Combined History

Greater Scale In Hand And Power Tools & Storage, Mechanical Security, And Engineered Fastening

World Class Innovation Process Global Low Cost Sourcing And

 Manufacturing Platforms Additional Presence In High-Growth

 Emerging Markets

 

Financial Benefits

 $350M In Cost Synergies Annually Opportunity For Margin Improvement Free Cash Flow Of Approximately

 $1.0B And Over $1.5B In EBITDA By Year 3

Increased Resources To Invest In Security Solutions, Engineered Fastening And Other High-Growth Platforms

Strong Balance Sheet

Annexure II: Stanley Products

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Hand ToolsMechanic Tools: 

Spanners: This includes Ratcheting Spanners, Ratcheting Geared Spanners, Combination Spanners Ring End Spanners, Double Open End Spanners, Adjustable Spanners, Ratcheting Hook Spanners, Socket Spanners, and Construction Ratchet Spanners. 

Figure 1: Ring end spanner, Open end spanner and Combination spanner

Sockets and Accessories: Sockets – Inch & Metric, Ratchets, Flex Handle, Spinner Handle, Universal Joints, Adapters, Bit Adapters, Sliding T-Bars, Extension Bars, Bit Sockets, Speeder Handles, L-Handle, and Offset handles, Impact Sockets & Accessories. 

Figure 2: Stanley Sockets-Chrome Vanadium

Automotive Tools:

Brass Hammers, Feeler Gauge, Oil Filter Strap Spanner, Grease Guns, Stud Removers, Jaw Pullers, Ignition Crimping Tools, Snap ring Pliers.  

Pneumatic Tools:

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Air Ratchets, Reversible keyless Air drill 

Figure 3: Stanley Ratchet

Tool Sets:

Telecommunication Tools Sets, Do-it-all Tool Sets, Electrician Tool Sets, Auto Maintenance Tool sets, all purpose tools sets. 

Figure 4: Tool Kits

Pliers, cutting and holding tools: 

Pliers:  Insulated Pliers, Basic Pliers, Miniature Pliers, Locking Pliers, Automatic Wire, Strippers, Circlip Pliers, Clamping Pliers, Orceleon Wire Stripper, Chain Grip Pliers. 

Figure 5: Pliers

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Knives and Cutters:  Retractable Knives, Sports Utility Knives, Saws, Hacksaws, Hand drills, Aviation Snips, All Purpose Snips, Wire Strippers, Bolt Cutters, Glass Cutters, Bit Braces. 

Figure 6: Mini Hacksaw

Pipe Tools

Pipe wrenches, Basin wrenches, Water Plumb Pliers, Tubing cutters, Pipe cutters, Flaring Tools. 

Figure 7: Pipe tools

Fastening Tools 

Screwdrivers and Keys: Insulated screwdrivers, Basic Screwdrivers, Tank Thru Screwdrivers, Ratcheting Screwdrivers, Multi Bit Screwdrivers, Testers, Digital Testers, Precision Screwdrivers, Hex Keys, Torx Keys. 

Figure 8: Screwdriver and Allen Keys (Hex Key)

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Clamps, Glue Guns, Riveters, Staplers:  Trigger Clamps, F-Clamps, C-Clamps, Pipe Clamps, Parallel Bar Clamps, Heavy duty Clamps, Corner Clamps, Staplers, Heavy Duty Staplers, Hammer Tackers, Hot Melt Glue Guns, Soldering Guns, Riveters. 

Figure 9: C-Clamp

Striking and stuck Tools 

Hammers: Anti Vibe Hammers, Jacketed Steed Hammer, Fiberglass Hammer, Wood Handle Hammer, Contractor Grade Hammer, Engineering Hammer, Hickory Handle Hammers, Compo Cast Hammers, Rubber Mallets, Soft Face Hammers, Steel Axe. 

Figire 10: Ball Pein Hammer

Pry Bars, Chisels, Punches, Nails: 4 in One Fu Bars, Pry Bars, Claw bars, Wrecking Bars, Hand Guard Chisels, Cold Chisels, wood curving Chisels, Nail sets , Punches. 

Figure 11: The 4-in-1 Fu bar

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Flashlights 

Led Flashlights, Tripod Flashlights, Mini Tripod Flashlights, Aluminum Alloy Bright , Flashlights, Aluminum Alloy Bright , Chargeable Flashlights. 

Measuring, Layout and Surveying Tools

Layout Tools:  I-Beam Levels, Box Levels, Torpedo levels, Line Levels, Chalk Lines, Roofing Squares, Try Squares, Combination Squares, Bevel Edges, Marking Gauge, Magnetic Cast Aluminum Torpedo Level, Torpedo Level (42-294 - 8" )

Measuring and Layout Tools: Laser Distance Estimator, Laser Torpedo Level, Laser Line Level, Laser Cross Level, Laser Level & Square, Laser Level, Cross Line Laser Level, Cross Line Laser Level with Pole, Horizontal/ Vertical Laser Level, Multi laser Cross Level, Digital Measuring wheel, Analog Measuring Wheel, Rotary laser.

VDE Pliers

These are pliers that are tested under 10000 electricity volts and are recommended to be used where there is high electric voltage (recommended to be used upto 1000 volts).

Figure 12: VDE Pliers

Key Technologies and Standards

Stanley Works applies certain patented technologies in its tools that differentiate them from competitors and puts them at a competitive advantage. Some of them are discussed here. However, even before it is worth mentioning that Stanley Tools meet ANSI, ISO and DIN standards.

ANSI –  American National Institutions

ISO –  International Organization for Standardization

DIN –  Deutches Institute for Normung  

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Maxi-Drive Technology in Sockets 

The Maxi-Drive technology is the registered patent of Stanley. It is the patented gripping designed to outperform conventional drive configuration. Some of the key Advantages are:

Reduces the chance of rounding in corners of the fasteners to extend fastener life. Enables to turn worn or rounded fasteners.

Provides 15% more torque to tighten fasteners easily.

Reduces fastener wear by minimizing contact on the outer 5% of the fastener; helping increase life expectancy of the fastener.

Helps reduce slipping on frozen or rusted fasteners.

There is absolutely no difference between the printed size & the actual size.

It allows ratcheting at an angle of 50.

Figure 13: 5 Degree angle for ratcheting

Figure 14:.The above picture shows the Maxi-Drive technology

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Dyna Grip Technology

Figure 14: The above picture shows the patented Dyna Grip by Stanley

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Annexure III: Literature Support

What is a Hand Tool?A hand tool is a device or an instrument used to do a particular job that does not require a motor, but intended for hand held operation by one individual. Virtually every type of tool can be considered a hand tool. It provides a mechanical advantage in accomplishing a physical task.

Examples of Hand ToolsHand tools include anything from hammer to wrenches, to axes, pliers, screwdrivers, punches, shears, chisels, toolboxes etc.

Materials in making Hand ToolsHand tools are made of a wide variety of metals and wood. The common materials used in making the blades of hand tools are:

Iron Steel

Aluminum

Brass

Stainless steel

Carbon steel

Mild steel

Types of Hand Tools

Manual Hand Tools: Manual hand tools are the most basic form of equipment. They do not require the speed of powered hand tools or do not have access to power sources but are perfect for operations. These include hoes, screwdrivers, chisels, wedges, drift pins, hammers etc. 

Pneumatic Hand Tools: Pneumatic hand tools perform the operation task at the push of a lever. They are powered by compressed air. They include chippers, drills, hammers, sanders etc. 

Power Hand Tools: Tools which are hand held but are powered by electricity. These include chainsaws, high grade motors, electric drills, angle grinders, jigsaw cutters, tappers, fasteners etc.

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We give below a list of the various popular hand tools used for various purposes.

Awl

Axe/ Hatchet

Bars

Clamp

Chisel

Cutter

Drill Bit

Drill

File

Guns

Hammers Mattock Mallet Planes Plier Punches Saws

Screwdriver

Shovel/ Spade

Trowel

Vise

Wrenches

Hand Tool MarketIndian hand tools market

Estimated No. of Units in India

2500

SSI Units 95%

Large Units 7

Estimated number of 25000

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workers

Major Manufacturing regions

Jallandhar/ Nagaur

Total exports in 2001-02 5215.5 million Rs.

US hand tool market. There are more than 1,000 firms active in the U.S. hand and power tools industry, ranging from small, privately owned firms to major corporations like Stanley Works, Black & Decker, Bosch, Danaher and Snap-on etc. In fact these major companies accounted for nearly 55% of the total sales in 2006.

Characteristics of the industry· A labor Intensive Industry: A source of employment to many, hand tools industry is basically labor intensive in nature, whose development is of great importance for a competitive as well as a self-reliant industrial structure. The manufacturers of hand tools produce a comprehensive range of of hand tools, right from carpentry and plumbing tools to striking and cutting tools.

· Energy intensive industry: Apart from being a labor intensive industry, this industry is also an energy intensive one. It is estimated in a recent study that in most economies adoption of energy efficient processes and technologies can yield in energy savings of up to 30 to 50%.

· Effective contributor to the economy: Adding positively to the income of a country,Hand tools industry has contributed to economy in terms of development and technology up gradation

Consumption patterns of hand toolsThis depends on the following factors: Price Supply chain dynamics Product quality, design and safety Service Environmental factors

Driving forces for hand tool developmentHand tools were in use since a long time and there has been a great change in the designs of hand tools from time to time. There were many factors that led to hand tool development.

Workers safety & health:This is a very important consideration in today's designing of hand tools. Hand tools should be designed in such a way so that they reduce wear and tear on the operator. Ergonomics hand tools have become very popular, driven by an increased emphasis on worker safety and health.Workers nowadays prefer tools, which reduce stress on the body and at the same time reduce employee time loss due to job-related disabilities. Today, designers are coming up with more

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comfortable grips, reducing the weight of the object, and making hand tools adjustable to different body types.ChemicalsWhen tools are designed, manufacturers consider ergonomics, performance and the environment. Besides considering health and cleaning factors, hand tools are also producedNowadays using less chemicals, using less environmentally damaging products which are not harmful to the the human body and which becomes an environment friendly product. Eliminating the spread of germs or cross-contamination from one area to another has been a priority for more than a decade in hand tools designing.MicrofiberA more recent development in hand tools is microfiber. This new material is more efficient at cleaning compared to its traditional counterparts. It is also less damaging to the environment as it uses few or no chemicals. And because it can be laundered several times, different microfiber cleaning cloths can be used for each area to be cleaned, thereby reducing the risk of cross-contamination.

Same Old, Same OldDespite new inventions in composition and designing, hand tools in original designs are still preferred by many. As the old saying goes, the more things change, the more they stay the same. Hand tools still are expected for many to perform in a way that is ageless. They may be sturdier and more colorful, but their main function has never really changed. Even with new styles and features on the market, for DIY projects, users rely on traditional tools.

CleaningOne of the driving forces for change in hand tool has always been to make cleaning easier. For proper functioning and durability of hand tools, it is necessary keep them clean after usage. In most cases, the latest designs go for flexible handles which can be removed and cleaned separately as both the handle and the tool blade are of different materials.

Hand Tools StandardsWith the rapid advancement and expansion in the global trade, standardization of various products is very necessary. The standards given to various products help in expandingInternational trade which in turn bridges the quality gap between the manufacturers, suppliers and buyers of different nations. In hand tools as well, standards play a vital role.

Standards are required in hand tools for the following reasons:

They provide performance requirements. They provide safety requirements. Standards are available for all types of hand tools like pliers, screwdrivers, wrenches,

striking tools, torque instruments etc. These standards also include the various tests that are required to determine conformance

with the safety and performance requirements.

Introduction to Stanley Assembly Technology:Stanley Assembly Technologies, an operating group of The Stanley Works was founded in 1963.Originally called Stanley Air Tools, the group was renamed in 2002 to reflect the emphasis on technology to deliver solutions of high value to customers. Assembly Technologies

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headquarters are located in Highland Heights, Ohio, a suburb of Cleveland. The Stanley Works is global corporation, headquartered in New Britain, Connecticut and has manufacturing and distribution in all world areas. An application center is located in Troy, Michigan. Locations in Europe include the U.K., France, Germany and Italy.Assembly Technologies Product Group provides solutions to the global assembly market, including the motor vehicle industry. Core solutions include high-performance DC electric and pneumatic tightening tools and controllers, conventional pneumatic articulating arms, torque tubes and Intelligent Assist Devices for ergonomic material handlingTightening torque capacity ranges from 0.5 to 2000 Nm and above. Tool geometries include straight, pistol, angle, hold & drive, crowfoot and tubenut outputs. Different levels of torque control, fit assembly requirements ranging from the most critical, such as safety related vehicle components to non-critical. Network systems enable plant-wide real-time assembly monitoring including statistical charting, trace analysis, remote tool configuration and hardware diagnostics.With Cobotics products, Stanley Assembly Technologies leads the growing global market forIntelligent Assist Devices (IADs). Engineered to dramatically improve the productivity, quality and ergonomic safety of assembly operations, IADs are computer controlled, servo powered lift assist devices that assist workers in lifting and manipulating heavy and awkward parts. A highly skilled direct sales force works directly with major customers and supports distributors in all world areas. Assembly Technologies sales engineers and distributors are qualified to analyze customer applications and propose the ideal selection of assembly and material handling components. Technical Service employees support customers from Assembly Technologies offices and regional locations. Other services offered by Stanley AssemblyTechnologies are:

Field service Training for customers’ support personnel Design consultation for special systems Maintenance programs Telephone support, Spare parts and repair,

Equipment calibration and tool system certification include: Auto and Light Truck Assembly Auto Parts and Components Large Truck Assembly Construction and Farm Machinery Recreational Vehicles

Products:1) Thread Fastening.i. Torque Equipmentii. Standard Nut Runnersiii. Small QPM Tools2) Engineered Systemsi. Articulating Armii. Fixtured Tools3) Material Handlingi. Trolley

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ii. Lift

Annexure IV: Potential of the companies

 

Buying potential per year      

Companies 0 to 2 lac

2 to 5 lac

5 lac above

Amount in lac

Jabil Circuit India Pvt. Ltd.   Yes   3kirloskar Oil Engines Ltd. Yes     2

Nainko Exim Pvt. Ltd       0

LG   Yes   3

Alfa Laval     Yes 5

Montanari Lifts Components     Yes 5

Sanghvi Movers Ltd.   Yes   3

Honeywell Turbo Technologies     Yes 5

Greaves Yes     2

Mather Platt Pumps ltd.     Yes 8

ThyssenKrupp Industries India     Yes 10

Mailhem Engineers Pvt. Ltd. Yes     2

Vanaz Engineering   Yes   4

WOM India .Pvt.Ltd   Yes   4

Cummins India Ltd.     Yes 8

Suzler India Ltd. Yes     2

Finolex Cables Ltd   Yes   3

Premier Ltd.     Yes 8

Tata Bluescope Steel     Yes 5

Knorr-Bremse     Yes 8

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KSB Pumps     Yes 5

Kam-Avida Yes     2

Demag Cranes & Components.     Yes 7

Premium   Yes   3

VSAS Automation Yes     2

Force Motors     Yes 8

Atlas Copco     Yes 6

Vulkan Technologies.Pvt.Ltd Yes     2

TATA JOHNSON   Yes   4

SKF     Yes 5

Fiat India ltd     Yes 5

Renu Electronics 0     0

ElectroMech-ABUS   Yes   4

Indo-Schottle Yes     2

Aquapharm Chemicals.Pvt.Ltd   Yes   3

Dilip Chabria Design, ( DC)   Yes   4

Thermax   Yes   4

Eclipse   Yes   4

Ador Welding   Yes   3TOTAL AMOUNT       163

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Annexure V: Details of the companies visited in Pune

Details of the Company VisitedDuring this period of 8 weeks I visited 38 companies and met 65 End Users including Purchase Managers.

Company NameNo. Of persons

met

Jabil Circuit India Pvt. Ltd. 1kirloskar Oil Engines Ltd. 1Nainko Exim Pvt. Ltd 1LG 1Alfa Laval 1Montanari Lifts Components 1Sanghvi Movers Ltd. 2Honeywell Turbo Technologies 1Greaves 2Mather Platt Pumps ltd. 1ThyssenKrupp Industries India 1Mailhem Engineers Pvt. Ltd. 1Vanaz Engineering 2WOM India .Pvt.Ltd 2Cummins India Ltd. 3Sulzer India Ltd. 1Finolex Cables Ltd 1Premier Ltd. 3Tata Bluescope Steel 2Knorr-Bremse 2KSB Pumps 1Kam-Avida 2

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Demag Cranes & Components. 3Premium 3VSAS Automation 1Force Motors 4Atlas Copco 2Vulkan Technologies.Pvt.Ltd 2TATA JOHNSON 4SKF 1

Fiat India ltd2

Renu Electronics 1ElectroMech-ABUS 1Indo-Schottle 1Aquapharm Chemicals.Pvt.Ltd 1Dilip Chabria Design, ( DC) 2Thermax 2Ador Welding 2   Total No. of companies- 38  Total No. of Users Visited 65

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The Customers Purchase Process

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Recognizing the need (Demand)

Asking for Quotations from potential suppliers

Developing product specification

May ask for a product demo

Deciding to Purchase

Rejected if price not satisfactory

Issue of Purchase OrderTesting the received product

Evaluating the Vendor and the product company

Annexure VI: Details of Factor Analysis

Factor AnalysisThere are a number of techniques that can be used to assist in the decision concerning the number of factors to retain:

What I have: A set of correlated continuous variables.What it does: Factor analysis attempts to identify a small set of factors that represents the underlying relationships among a group of related variables.Assumptions: 1. Sample size. Ideally the overall sample size should be 150+ and there should be a ratio of at least five cases for each of the variables2. Factorability of the correlation matrix. To be considered suitable for factor analysis the correlation matrix should show at least some correlations of r=.3 or greater. The

67

Bartlett’s test of sphericity should be statistically significant at p<.05 and the Kaiser-Meyer-Olkin value should be .6 or above. These values are presented as part of the output from factor analysis.

ProcedureFactor analysis involves a number of steps: assessment of the data, factor extraction and factor rotation. To cover the SPSS procedures required for these steps, this section is divided into two parts. In Part 1 the procedures involved in the assessment of the data and the extraction of the factors will be presented and the output discussed. In Part 2 the additional procedures required to rotate and to interpret the factors will be covered.

Part 1: Assessing the data and extracting the factors

The first step when performing a factor analysis is to assess the suitability of the data for factor analysis. This involves inspecting the correlation matrix for coefficients of .3 and above, and calculating the Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMO) and Barlett’s Test of Sphericity. This information can be obtained from SPSS in the same analysis as used for Factor Extraction.The second step involves determining how many underlying factors there are in the set of variables.

Correlation Matrix

   Q D1 P1 A P C D2 M R F L D3

Correlation Q 1 0.439 -0.06 -0.102 0.207 0.377 0.452 0.284 0.222 0.098 0.034 -0.065

  D1 0.439 1 -0.147 -0.047 0.213 0.302 0.39 0.108 0.064 0.055 0.082 -0.176

  P1 -0.06 -0.147 1 0.072 -0.003 -0.307 -0.282 -0.078 -0.034 -0.239 0.178 0.335

  A -0.102 -0.047 0.072 1 0.047 0.078 0.062 0.175 0.109 0.246 0.083 0.059

  P 0.207 0.213 -0.003 0.047 1 0.096 0.247 0.235 0.173 0.22 0.045 0.001

  C 0.377 0.302 -0.307 0.078 0.096 1 0.487 0.144 0.274 0.172 0.018 -0.113

  D2 0.452 0.39 -0.282 0.062 0.247 0.487 1 0.416 0.318 0.385 0.057 -0.085

  M 0.284 0.108 -0.078 0.175 0.235 0.144 0.416 1 0.222 0.374 -0.046 0.014

  R 0.222 0.064 -0.034 0.109 0.173 0.274 0.318 0.222 1 0.449 0.317 -0.072

68

  F 0.098 0.055 -0.239 0.246 0.22 0.172 0.385 0.374 0.449 1 0.212 -0.172

  L 0.034 0.082 0.178 0.083 0.045 0.018 0.057 -0.046 0.317 0.212 1 0.145

  D3 -0.065 -0.176 0.335 0.059 0.001 -0.113 -0.085 0.014 -0.072 -0.172 0.145 1

Q QUALITY  

D1 DURABILITY  

P1 PRICE  

A AVAILABILITY  

P PERFORMANCE  

C CUSTOMIZATION  

D2 DESIGN  

M MAINTENANCE  

R RELIABILITY  

F FUNCTIONALITY  

L LEAD TIME  

D3 DISCOUNT  

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .703

Bartlett's Test of Sphericity Approx. Chi-Square 146.252

df 66

Sig. .000

                   Total Variance Explained

Component

Initial EigenvaluesExtraction Sums of Squared

LoadingsRotation Sums of Squared

Loadings

Total

% of Varianc

eCumulativ

e % Total

% of Varianc

eCumulativ

e % Total

% of Varianc

eCumulativ

e %1 3.086 25.71 25.71 3.086 25.71 25.71 2.287 19.06 19.062 1.639 13.66 39.37 1.639 13.66 39.37 1.743 14.53 33.593 1.331 11.1 50.47 1.331 11.1 50.47 1.615 13.46 47.054 1.109 9.245 59.71 1.109 9.245 59.71 1.52 12.67 59.715 0.933 7.776 67.49            6 0.842 7.014 74.5            7 0.728 6.064 80.57            8 0.666 5.553 86.12            

69

9 0.448 3.736 89.86            10 0.438 3.647 93.5            11 0.416 3.467 96.97            12 0.363 3.029 100            

Extraction Method: Principal Component Analysis.

           

70

Component Matrixa

Component

1 2 3 4

Design .802

Customization .630

Quality .615 .492

Functionality .602 .377 -.462

Reliability .556 .427 -.360

Durability .524 -.338 .410

Performance .418 .323

Availability .484 -.315

Price -.375 .504 .517

Discount .459 .475

Lead time .572 -.609

Maintenance .550 .563

Extraction Method: Principal Component Analysis.

a. 4 components extracted.

Communalities

Initial Extraction

Quality 1.000 .665

Durability 1.000 .570

Price 1.000 .670

Availability 1.000 .423

Performance 1.000 .347

Customization 1.000 .477

Design 1.000 .663

Maintenance 1.000 .671

Reliability 1.000 .630

Functionality 1.000 .719

Lead time 1.000 .774

Discount 1.000 .556

Extraction Method: Principal Component

Analysis.

71

Rotated Component Matrixa

Component

1 2 3 4

Quality .811

Durability .740

Design .650 .398

Customization .560 -.351

Maintenance .761

Functionality .607 -.352 .476

Availability .578

Performance .378 .417

Price .799

Discount .738

Lead time .831

Reliability .706

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

Component Transformation Matrix

Compo

nent 1 2 3 4

1 .724 .497 -.346 .331

2 -.347 .476 .537 .604

3 .596 -.341 .726 -.034

4 .014 .640 .255 -.724

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

ANTI IMAGE MATRICES

Q D1 P1 A P C D2 M R F L D3

A1 Q0.631

-0.192

-0.081

0.125-

0.041-

0.126-

0.106-

0.119-

0.0690.05 0.014 0.011

  D1-

0.1920.691 0.027

-0.004

-0.114

-0.052

-0.128

0.037 0.085 0.06 -0.11 0.131

  P1-

0.0810.027 0.713

-0.108

-0.05 0.159 0.088-

0.022-

0.0680.137

-0.129

-0.187

  A0.125

-0.004

-0.108

0.871 0.005-

0.1050.016

-0.101

0.013-

0.142-

0.012-0.04

  P-

0.041-

0.114-0.05 0.005 0.869 0.031

-0.041

-0.074

-0.044

-0.085

0.032-

0.039

  C-

0.126-

0.0520.159

-0.105

0.031 0.651-

0.1660.065

-0.118

0.051 0.02-

0.009

  D2-

0.106-

0.1280.088 0.016

-0.041

-0.166

0.509-

0.146-

0.044-

0.1060.006

-0.052

  M-

0.1190.037

-0.022

-0.101

-0.074

0.065-

0.1460.697

-0.023

-0.148

0.125-

0.067

72

  R-

0.0690.085

-0.068

0.013-

0.044-

0.118-

0.044-

0.0230.67

-0.184

-0.189

0.058

  F0.05 0.06 0.137

-0.142

-0.085

0.051-

0.106-

0.148-

0.1840.576

-0.134

0.112

  L0.014 -0.11

-0.129

-0.012

0.032 0.02 0.006 0.125-

0.189-

0.1340.786

-0.138

  D30.011 0.131

-0.187

-0.04-

0.039-

0.009-

0.052-

0.0670.058 0.112

-0.138

0.819

A2 Q.743a

-0.291

-0.121

0.169-

0.056-

0.197-

0.187-0.18

-0.106

0.084 0.021 0.015

  D1-

0.291.700a 0.038

-0.006

-0.147

-0.078

-0.216

0.054 0.125 0.095-

0.1490.174

  P1-

0.1210.038 .613a

-0.137

-0.064

0.233 0.145-

0.031-

0.0990.214

-0.172

-0.245

  A0.169

-0.006

-0.137

.529a 0.006-

0.1390.024 -0.13 0.017

-0.201

-0.014

-0.047

  P-

0.056-

0.147-

0.0640.006 .821a 0.041

-0.062

-0.096

-0.057

-0.12 0.038-

0.046

  C-

0.197-

0.0780.233

-0.139

0.041 .740a-

0.2870.097

-0.179

0.083 0.028-

0.012

  D2-

0.187-

0.2160.145 0.024

-0.062

-0.287

.796a-

0.245-

0.076-

0.1950.009

-0.081

  M-0.18 0.054

-0.031

-0.13-

0.0960.097

-0.245

.717a-

0.033-

0.2340.168

-0.089

  R-

0.1060.125

-0.099

0.017-

0.057-

0.179-

0.076-

0.033.723a

-0.297

-0.261

0.078

  F0.084 0.095 0.214

-0.201

-0.12 0.083-

0.195-

0.234-

0.297.676a

-0.199

0.163

  L0.021

-0.149

-0.172

-0.014

0.038 0.028 0.009 0.168-

0.261-

0.199.500a

-0.173

  D30.015 0.174

-0.245

-0.047

-0.046

-0.012

-0.081

-0.089

0.078 0.163-

0.173.569a

A1=Anti Image covarianceA2=Anti Image correlation

Q QUALITY

D1 DURABILITY

73

P1 PRICE

A AVAILABILITY

P PERFORMANCE

C CUSTOMIZATION

D2 DESIGN

M MAINTENANCE

R RELIABILITY

F FUNCTIONALITY

L LEAD TIME

D3 DISCOUNT

Step 1In the Correlation Matrix table, look for correlation coefficients of .3 and above You should also check that the Kaiser-Meyer-OlkinMeasure of Sampling Adequacy (KMO) value is .6 or above. The Barlett’s Test of Sphericity value should be significant (i.e. the Sig. value should be .05 or smaller). In my case here the KMO value is .703, and the Bartlett’s test is significant (p=.000), therefore factor analysis is appropriate.

Step 2To determine how many components (factors) to ‘extract’ we need to consider a few pieces of information provided in the output. We are interested only in components that have an eigenvalue of 1 or more. To determine how many components meet this criterion we need to look in the Total Variance Explained table.Only the first four components recorded eigenvalues above 1, these 4 components explain a total of 59.71 per cent of the variance (see Cumulative % column)It is important to also look at the screeplot provided by SPSS. What we need to look for is a change in the shape of the plot. Only components above this point are retained.

Part 2 Factor rotation and interpretation

Once the numbers of factors have been determined, the next step is to try to interpret them. To assist in this process the factors are ‘rotated’. This does not change the underlying solution—rather; it presents the pattern of loadings in a manner that is easier to interpret. 4 components will be extracted and rotated. There are a number of different rotation techniques. Here I will use Varimax rotation, first as the output is simpler to interpret. I will then repeat the analysis using Oblimin rotation. This is an oblique rotational technique (which does not assume that the factors are uncorrelated). The output from Oblimin rotation will allow us to determine how strongly inter-correlated the factors actually are, and therefore which of the rotational techniques is more appropriate

74

Varimax Rotation

Rotated Component Matrixa

Component

1 2 3 4

Quality .811

Durability .740

Design .650 .398

Customization .560 -.351

Maintenance .761

Functionality .607 -.352 .476

Availability .578

Performance .378 .417

Price .799

Discount .738

Lead time .831

Reliability .706

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 8 iterations.

Component Transformation Matrix

Compo

nent 1 2 3 4

1 .724 .497 -.346 .331

2 -.347 .476 .537 .604

3 .596 -.341 .726 -.034

4 .014 .640 .255 -.724

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

In the Rotated Component Matrix we will see the loadings of each of the variables on the 4 factors that were selectedAs we look for the highest loading variables on each of the component—these can be used to help you identify the nature of the underlying latent variable represented by each component.Main loadings on Component 1 are items Quality and DurabilityThe main items on Component 2 are Maintenance and Functionality

75

The main items on Component 3 are Price and DiscountThe main items on Component 4 are Lead time and Reliability

Oblimin Rotation

Pattern Matrixa

Component

1 2 3 4

Quality .820

Durability .754

Price .799

Availability -.309 .590

Performance .356 .409

Customization .527 -.318

Design .598 .345

Manitenance .772

Reliability -.686

Functionality .560 -.349 -.420

Leadtime -.863

Discount .743

Extraction Method: Principal Component Analysis.

Rotation Method: Oblimin with Kaiser Normalization.

a. Rotation converged in 21 iterations.

76

Structure Matrix

Component

1 2 3 4

Quality .810

Durability .736

Price .804

Availability .561

Performance .392 .449

Customization .589 -.405

Design .692 .474 -.314

Manitenance .331 .776

Reliability .357 -.740

Functionality .647 -.395 -.540

Leadtime -.813

Discount .735

Extraction Method: Principal Component Analysis.

Rotation Method: Oblimin with Kaiser Normalization.

Component Correlation Matrix

Compo

nent 1 2 3 4

1 1.000 .165 -.145 -.076

2 .165 1.000 -.058 -.188

3 -.145 -.058 1.000 .059

4 -.076 -.188 .059 1.000

Extraction Method: Principal Component Analysis.

Rotation Method: Oblimin with Kaiser Normalization.

Note: The outputs for Oblimin rotation are different from that of Varimax rotationThere are three main tables to consider:Pattern Matrix, Structure Matrix and Component Correlation Matrix

77

Now I perform an Oblimin rotation for 3 factorsThere are three main tables to consider:

Pattern Matrix,

Structure Matrix and

Component Correlation Matrix

Oblimin Rotation for 3 factors

Component Initial Eigenvalues

Initial Eigenvalues

 Initial Eigenvalues

 Extraction Sums of Squared Loadings

Extraction Sums of Squared Loadings

Extraction Sums of Squared Loadings 

 Rotation Sums of Squared Loadings

 Total % of

VarianceCumulative %

Total % of Variance

Cumulative %

Total

1 3.086 25.713 25.713 3.086 25.713 25.713 2.632

2 1.639 13.660 39.373 1.639 13.66 39.373 1.62

3 1.331 11.096 50.469 1.331 11.096 50.469 2.203

4 1.109 9.245 59.714

5 0.933 7.776 67.49

6 0.842 7.014 74.504

7 0.728 6.064 80.568

8 0.666 5.553 86.121

9 0.448 3.736 89.857

10 0.438 3.647 93.504

11 0.416 3.467 96.971

12 0.363 3.029 100

78

Structure Matrix

Component

1 2 3

Quality .802

Durability .717

Price .795

Availability -.535

Performance .418

Customization .613 -.309

Design .737 -.445

Manitenance .387 -.526

Reliability .332 -.677

Functionality -.817

Leadtime .511 -.389

Discount .699

Extraction Method: Principal Component Analysis.

Rotation Method: Oblimin with Kaiser Normalization.

Now we have to look at the Component Correlation

Matrix . This shows you the strength of the relationship between the two factors (the value is quite low, at –.244). the correlation between the two components is quite low, so we would expect very similar

solutions from the Varimax and Oblimin rotation.

79

Pattern Matrixa

Component

1 2 3

Quality .838

Durability .760

Price .792

Availability -.591

Performance .391

Customization .558

Design .651 -.306

Manitenance -.465

Reliability -.629

Functionality -.824

Leadtime .505 -.350

Discount .702

Extraction Method: Principal Component Analysis. Rotation Method: Oblimin with Kaiser Normalization.

Rotation converged in 14 iterations

Component Correlation Matrix

Compo

nent 1 2 3

1 1.000 -.103 -.224

2 -.103 1.000 -.041

3 -.224 -.041 1.000

Extraction Method: Principal Component

Analysis.

Rotation Method: Oblimin with Kaiser

Normalization.

This gives us information to decide whether it was reasonable to assume that the two components were not related. When we look at the Oblimin rotation we need to look at both the tables, the pattern matrix and the structured matrix. Pattern Matrix, is similar to that provided in the previous Varimax rotated solution. It shows the factor loadings of each of the variables and can be interpreted in much the same way

Annexure VII: Questionnaire

Questionnaire

Part –A

1. Name of the Company_________________________

2. What is the annual turnover of your company?____________________________

3. What is the amount of purchase done annually?_____________________________

Part-B

1. Are you aware of Stanley Hand tools?

Yes _________ No __________

2. If yes, then how did you come to know about Stanley?

80

From present vendorFrom Stanley company representativeFrom seminars or exhibitionFrom friends or peersOthers

3. Which are the most widely used tools in your Company?_______________________

4. Which company make hand tools do you use?a) Tapariab) Gadorec) Everestd) Jhalanie) Cromwellf) Others___________

5. What is the frequency of purchasing the hand tools?___________________________

6. Which are the tools that you face problems with?________________________

7. How would you rate your existing hand tools on the following parameters?

Parameters 1-Very Important

2-Important 3-Neutral 4-less Important

5-Least Important

QualityDurabilityPriceAvailabilityPerformanceCustomizationDesignMaintenanceReliability (ASS)FunctionalityLead TimeDiscount

8. What is your satisfaction level on your present Hand tools?

81

1-Excellent 2-Good 3-Neutral 4-Bad 4-Dissatisfactory

9. Who is the Decision maker while purchasing the equipments?

1) End User2) Purchase Department

Part-C

1. Company Address_________________

2. Name of the Contact person__________________________

3. Designation_______________________

4. Contact details__________________________

~Thank You ~

82

Annexure VIII: StandardsB107 Standards

The B107 ASME series standard is given to various hand tools and accessories. The Committee of B107 Standards operates under the American National Standards Institutes’ procedure. The B107 Committees are comprised of experts in the field of hand tools. These standards are published by ASME after being approved by ANSI and ASME. The B107 standards on hand tools cover the complete general and dimensional data for hand tools, including safety and other requirements.

B107.1-1993 Socket Wrenches, Hand (Inch)

B107.2-1995 Socket Wrenches, Extensions, Adaptors, and Universal Joints, Power Drive (Impact) (Inch Series)

B107.4M-1995 Driving & Spindle Ends for Portable Hand, Impact, Air, and Electric Tools (Percussion Tools Excluded)

B107.5M-1994 Socket Wrenches, Hand (Metric Series)

B107.6-1994 Wrenches, Box, Angled, Open End, Combination, Flare Nut, and Tappet (Inch Series)

B107.8M-1996 Adjustable Wrenches

B107.9M-1994 Wrenches, Box , Angled, Open End, Combination, Flare Nut, and Tappet (Metric Series)

83

B107.10M-1996 Handles and Attachments For Hand Socket Wrenches - Inch and Metric Series

B107.11M-1993 Pliers, Diagonal Cutting, and Nippers, End Cutting

B107.12-1997 Nut Driver (Spin Type, Screwdriver Grip) (Inch Series)

B107.13M-1996 Pliers - Long Nose, Long Reach

B107.14M-1994 Hand Torque Tools

B107.15-1993 Flat Tip and Phillips Screwdrivers

B107.16-1998 Shears (Metal Cutting, Hand)

B107.17M-1997 Gages, Wrench Openings, Reference

B107.18M-1996 Pliers (Wire Twister)

B107.19-1993 (R1998) Pliers, Retaining Ring

107.20-1998 Pliers (Lineman's, Iron Worker's, Gas, Glass, Fence, and Battery)

B107.21-1998 Wrench, Crowfoot Attachments (Inch Series)

B107.22M-1998 Electronic Cutters

B107.23M-1997 Pliers, Multiple Position, Adjustable

B107.25M-1996 Pliers - Performance Test Methods

B107.27-1996 Pliers, Multiple Position (Electrical Connector)

B107.28M-1997 Electronic Torque Instruments

B107.29M-1998 Electronic Tester, Hand Torque Tools

B107.31M-1997 Screwdriver, Cross Tip Gaging

B107.34M-1997 Socket Wrenches for Spark Plugs

B107.35M-1997 Nut Drivers (Spin Type, Screwdriver Grip) (Metric Series)

B107.38M-1998 Electronic Pliers

B107.41M-1997 Nail Hammers, Safety Requirements

B107.42M-1997 Hatchets - Safety Requirements

B107.43M-1998 Wood Splitting Wedges - Safety Requirements

B107.44M-1998 Glaziers Chisels & Wood Chisels, Safety Requirements

84

B107.45M-1998 Ripping Chisels and Flooring/Electricians' Chisels - Safety Requirements

B107.46M-1998 Stud, Screw, and Pipe Extractors - Safety Requirements

B107.47M-1998 Metal Chisels - Safety Requirements

B107.48M-1998 Metal Punches and Drift Pins: Safety Requirements

B107.49M-1998 Nail Sets: Safety Requirements

B107.50M-1998 Brick Chisels & Brick Sets: Safety Requirements

B107.52M-1998 Nail Puller Bars - Safety Requirements

B107.53M-1998 Ball Peen Hammers - Safety Requirements

B107.54-2001 Heavy Striking Tools - Safety Requirements

B107.55M-1998 Axes: Safety Requirements

B107.56-1999 Body Repair Hammers and Dolly Blocks - Safety Requirements

B107.57-2001 Bricklayers Hammers & Prospecting Picks - Safety Requirements

B107.58-1998 Riveting, Scaling, Tinners Setting Hammers - Safety Requirements

85

Some formats used

Business Potential Report format

Company Information Sheet

1. Company name: __________________________________________________________

2. Address: _________________________________________________________________

3. Phone no: ________________________________________________________________

4. Email id: _________________________________________________________________

5. Nature of Business: Manufacturing/Service/Both: ________________________________

6. Annual Turnover(FY2008): ________________________________________

7. Hand tools Purchase( FY2008) : _________ Products: _____________________

8. Name of Key Executives

86

Sr No Depart Name Designation Contact No E Mail ID

1. Purchase

2 Maintenance

3 Production

4 Vendor Development

5 Quality

6

9. Major Supplier of Hand tools (I): ___________________________since_____________

10. Major Supplier of Hand tools (II): __________________________since____________

11. Products explained: ___________________________________________________________________________________________________________________________________

12. Quotations cited for: _______________________________________________________

13. Major Competitors : _______________________________________________________

14. Scope for Stanley Hand Tools: ___________________________________________________________________________________________________________________________________________________________________________________________________________________________

Date: ________ Signatures:________________________

Place: ________ Name: ____________________________

87

Daily Sales Report Format

88

89