Operative Managerial(Activities / function) (Activities / function)

* Marketing * Planning (Creating Plan) * Production * Organizing (How to

Organize) * Finance * Staffing (Staff-How to

manage) * Human Resource Management * Directing (How to direct

staff) * Accounting * Controlling (How to

control)

Business Process

BUSINESS PROCESS

What is Business?

“It is a System which has been created by the society for producing and distributing goods and services and their by making certain amount of profit”.

System: System is a condition of various part which constitute a unitary whole. All the parts

are interrelated and interdependent (as the below figure) in such as manner that if the action is

taken and one part is the reaction can be observed at several of the other parts. Business

Activities should be presented as >>>>

Marketing:

Marketing should be define as…

(1) Marketing is one of the operative function.

(2) Marketing is the human activities directed at the satisfying Needs and

Wants of a customer through the Exchange Process.”

Need: - It is a state of felt deprivation arising out of human Physiological (human body

activity) and Psychological (Depend/ related to the human mind) condition.

For example- Food, Water, Cloths etc.

Wants: it is the specific satisfier of a need.

For example- Apple, Raymond etc.

Exchange Process- -

1-There must be at least two parties.

2-Each party must have something value of other.

3-Each party must be free to communicate.

4-Each party must be free to communicate accept or

neglect the offer.

What is Process:

Process is the sequential way to completing the work.

Process is the righteous way to fulfilling the entire work.

BUSINESS PROCESS IN MARKETING

1. Registration of Enquiry

2. Contract Review

3. Cost Estimation

4. Offer Preparation

5. Negotiation

1. Order Registration

2. Contract Review

3. Resolving Gaps

4. Issue of Indent and

5. Amendments6. Coordination

& Monitoring of execution activity

7.Completion of delivery

1. Printing of New Catalogue & Revision of Existing

2. Photography

3. Contents for Catalogue

4. Arrangement of Publicity Agency

Details of Tendering Process

Purpose To Prepare & Deliver timely, complete and correct offer to Region / Customer

Input Customer Enquiry complete with technical and commercial requirement

Activity 1) Registration of Enquiry2) Commercial Review3) Technical Review4) Cost Estimation5) Discussion finalization of commercial and technical offer6) Discussion with design for replying clarification7) Negotiate with customer when required

Resources 1) Competent Manpower2) Office tools with Software/ Hardware and Communication

channel3) Competitors/ Customers/ Project Information4) Standard Price list/ reference of past supplies/ material prices5) Design offer. Technical Documents and catalogue

Control 1) Enquiry Register2) Activity by authorized person

Output Offer to region/ Customer

Monitoring & Measurements

Response to Customer

Details of Contract Execution

Purpose 1) Safe, complete and Timely delivery of Product

2) To meet customer need & Construct Specification

Input 1) Customer LOI/LOA/ Purchase order

2) Indent

3) Offer and Enquiry Specification

Activity 1) Order Registration

2) Contract Review

3) Resolve the Gap, if any

4) Issue of Indent & Indent Amendment if any

5) Coordination & Monitoring of Execution activity at Works

and with Region/Customer

6) Coordination of Inspection & Despatch

7) Ensure Complete Supply

8) Coordination with after Sales Service

Resources 1) Competent Manpower

2) Office tools with Software/ Hardware and Communication

channel

Control 1) Order Register

2) Indent / Amendment

3) Activity by authorized person

Output Delivery of Product

Monitoring &

Measurements

1) Recovery by Customer on account of liquidated

damages/penalty

2) Record of Transit damage/Short Supplies

Details of Promotion

Purpose To Prepare & Update Catalogue for Distribution Transformer

Input 1) New Product

2) Facilities Created

3) New Installation Photographs

4) Suggestions received from various Functions

Activity 1) Review of the Catalogue

2) Revise the Existing or/and making New Catalogue

Resources 1) Competent Manpower

2) Publicity Agency

Control Checking the Publication by Authorized Person before releasing

Output Printed Catalogue

Business process in ALSTOM T&D India Ltd. is through Tendering

Steps involved at various stages in Marketing Department:

TENDER DOCUMENT

Tender:-

The company releases the tender in order to accept the bid from the interesting parties. A

tender is an offer to do work or supply goods at a fixed price. When a company puts out

tender its means the company asks the public for price offers to do work or supply goods.

Commercial Terms and Conditions:-

1. Scope

2. Price:-

Price of product should be fix, not variable in any condition.

3. Taxes & Duties:-

Taxes & Duties on transportation or any other process shall be given by either

customer or Contractor, it should be written in tender document.

4. Delivery:-

Delivery of finished product to site of installation will be done by Contractor clearly

write in tender document.

5. Freight & Insurance:-

Freight and Insurance will be paid by the Contractor but all the cost will be included in

price.

6. Raw material price variation:-

Raw material price should be fixed in given time period but if the price of raw material

like copper, CAGR, etc vary in that period then price of raw material can change.

Price variation shall be allowed on ex-work price only for the contractual delivery

period.

Component of packing &forwarding, freight & inwards change shall remain firm in

all respect throughout the currency of the contract.

Tender shall be quoted firm price only for the spare parts, type text, service change

for erection and the commission of the equipment.

No price variation shall be claimed against document to be negotiated through bank.

Bank charges, if any, for document to be negotiated through bank shall be borne by

this tender.

In the event of dispatch of equipment beyond contractual delivery period, the claim

shall be raised only offer allowing for the due price reduction as per prevision the

order

7. Terms of Payment:-

10% advance, 10% against powering approval, 70% against dispatch, 10% against

recall at site.

8. Guarantee & Warranty:- Guarantee & Warranty of product should be clearly

written in the tender document, it may be 1 year, 2 year and so on.

9. Liquidation Damages:-

If the Contractor does not finish the job till last date then Contractor will has to give

1% to 5% of price in the form of LD.

10.Force Majeure:-

If the job does not complete due to some natural disaster, rampage in city etc then

there is no LD or any penalty given by Bidder.

11.Validity:-

Validity of function of the tender document may be 3 months, 2 month depend on the

customer company.

12. Security Deposit:-

Bidder has to pay the some amount of worth in form of security deposit to get the

tender of particular job.

13. Inspection:-

Employer has right to inspect every stage of manufacturing of particular job.

BIDDING DOCUMENT

Contents of Bidding document:-

Volume-I Condition of Contract

Section

1. A. Invitation for Bid (IFB)

B. Invitation to Bid (ITB)

C. Bid Data Sheet (BDS)

2. A. General Condition of Contract (GCC)

B. Special Condition of Contract (SCC)

3. Sample Forms & Price Schedule

A. Bid Forms & Price Schedule

B. Bid Forms

C. Price Schedule

D. Form of Notification by Employer to the Bank

E. Form of Notification of Award of Contract.

4. A. Form of Notification of Award of Contract for Supply of Plant & Equipment.

B. Form of Notification of Award of Contract for Installation of Plant & Equipment.

5. Form of Contract Agreement

Terms & Procedure of Payment.

Price Adjustment.

Insurance Requirement.

Time Schedule.

List of Approved Subcontractors.

Scope of Work & Supply by the Employer.

1. Performance Security Form.

2. Bank Guarantee form for Advance Payment.

3. Form of Taking over Certificate.

4. Form of indemnity bond to execute by the Contractor for the equipment handed over

in installment.

5. Form of Authorization Letter.

6. Form of Trust Receipt for Plant, Equipment & Material Received.

7. Form of Extension of Bank Guarantee.

8. Form of Power of Attony for Joint Venture.

9. Form of Joint Venture Agreement.

10. Format of Evidence of access to

11. Form of Operational Acceptance

Volume- II Technical Specification

Volume-III Bid form, Price Schedule, & Technical Data Sheet.

INSTRUCTION TO BIDDERS

1) Source of fund:-

Internal resource of owner or domestic borrowing/bonds etc.

2) Eligible Bidder:-

All the companies registered under act 1956 are able to bidding. MNCs, Foreign Bidders which are not registered can’t bid.

3) Eligible plant, equipment & service:-

4) All the plant, equipment & machinery should be purchased by only authrised supplies.

5) Bidder directly & indirectly shall not be dependent agency of Employer.

6) Purpose of clause origin mean where the plant & equipment part there of mind, grown

or produced.

7) Plant & equipment are produced through manufacturing, processing, substantial &

major assembling of component.

8) Cost of Bidding:-

The Bidder shall bar all the cost of bidding and Employer will not responsible for only cost.

9) Bidding clarification document & Pre-Bid meeting:-

The Employer will respond in writing to any clarification & modification in bidding

document prior to 28 days to submission of bidding document.

The Employer and Bidder organize a meeting prior to final bidding process for

Elimination & clarification of any confusion.

10) Amendment of bidding document:-

Employer can amend the BDS as per by the request of Bidder before the dead line of

submission of BDS.

Bidder has to send the acknowledge receipt to Employer.

Employer can extend the deadline of submission of BDS.

Preparation of Bids

11) Language of Bid:- Bid should be written in the English language.

12) Document comprising the Bid:-

Bid form completed & signed by Bidder.

Price schedule completed by bidders.

Technical data sheet.

Attachment with BDS.

a) Bid security

b) Power of attorney

c) Bidder’s eligibility & qualification

d) Eligibility & Conformity of facility.

e) Subcontractors proposed by the Bidder.

f) Deviation.

g) Alternatives Bids.

h) Manufacture’s authrisation form.

i) Work completion schedule.

j) Guarantee declaration.

k) Information regarding ex-employees of Employer in Bidder’s firm.

l) Price adjustment data.

13) Bid Price:-Total bid price cover all the Contractor’s obligation maintained in bidding document in respect of the design, manufacture, including procurement & subcontracting, delivery, construction, installation & completion of all facilities including supply of mandatory spare.

Schedule of Bid-Price:-

Plant & Equipment to be supplied included type test charges.

Local transportation, Insurance and other incidental service applicable for supply of

plant & equipment.

Installation service

Charges for training to be imported.

Taxes & Duties not included in schedule 1-4.

Grand Summary-15

Break up of type test charges.

14) Bid Currency:-

Bid currency should be in Indian rupee.

15) Bid Security:-

The bid security is amount in the form of crossed bank draft/pay order/bank certified cheque in favour of employee as stipulated in BDS from commercial bank selected by Bidder & located in India.

16) Period of validity of Bid:-

Bid shall remain valid for the period of 6 month after the date of bid opening prescribed by the Employer.

17) Format and Signing of Bid:-

Bid document form in the several copies like original copy, photo copy no.1, photo copy no.2 and each copy should be signed by the Bidder and Employer in particular manner.

Submission of Bids

18) Sealing & Marking of Bid:-

Seal the original copy and photo copy and also mark with original copy, copy no.1,

copy no.2 having contract name on bods, address of Employer.

19) Dead line for submission of Bid:-

Bid must be received by the Employer at the address specified under no later than the

time & date stated in the BDS. Bids once received by the Employer shall not be

returned accept otherwise provide in BDS.

20) Late Bid:-

Late bid doesn’t accepted by the Employer.

21) Modification and withdrawal of Bids:-

The Bidder may modify or withdrawal its bid after submission provided that

modification prior to last date.

Bid Opening & Evolution

22) Opening of Bid by Employer:- The Employer will open the bid in public, including withdrawal & modification made

pursuant in the presence of Bidder designated who choose to attend at time, date & location maintained in BDS.

23) Clarification of Bids:-

During bid evolution, the Employer may ask the Bidder for a clarification of the bid.

The request for clarification & response shall be in writing & no change in the price

or substance of bid shall be sought, offered & permitted.

24) Preliminary Examination Bids:-

The Employer will examine the bids to determine whether they are complete, whether

any computational error, whether required sureties has been furnished, whether

document paper signed & whether bids are generally in order.

25) Conversion of single currency:-

This shall not be applicable as domestic firms are required to quote the price in Indian

rupee only.

26) Technical Evolution:-

Employer will carry out a detailed evolution of the bid previously determined to be

responsive in order too determine whether the technical aspect are in accordance with

requirement set forth in bidding document. He examines & compares technical aspect

of bid on the basis of information supplied by Bidder.

27) Commercial Evolution:-

The comparison shall be on total price also include taxes, duties & other levies, costs

resulting form applicable of evolution procedure.

28) Contracting the Employer:-

From time bid opening to time of contract award, if any bidder wishes to contact the

Employer related to bid, it should be in writing.

Award of contract

29) Post Qualification:-

In the absence of prequalification, the Employer will determine to its satisfaction

whether the Bidder selected as having submitted the lowest evaluated responsive bid

is qualified, as per qualification requirement to satisfactory perform the contract. The

Employer shall be sole judge in the regard.

30) Employer’s right to accept any bid, annual bid process prior to award of contract or

reject.

31) Any or all bid without thereby incurring any liability to affected Bidder.

32) Notification of Award:-

Prior to expiration of period of bid validity, the Employer will notify the successful

bidding in writing, i.e. bid has been accepted. The notification of award will constitute

the formation contract.

33) Signing the contract agreement:-

At the time the Employer notifies the successful Bidder that its bid has been accepted

the Employer in consultation with Bidder will prepare the contract agreement & it

shall be prepare within 28 days of the notification of award & successful Bidder &

Employer shall sign.

34) Performance security:-

Within 28 days after receipt of notification of award, the successful bidder shall

furnish the performance securities for 10% of contract price + additional performance

securities.

35) Fraud & Corruption:-

It is the employer policy that requires the Bidders, suppliers & contractors & their

Subcontractors under the contract to observe the highest standard of ethics during the

procurement & execution of such contents.

GENERAL CONDITION OF CONTRACT (GCC)

Subject matter of contract.

1. Scope of supply.

2. Time for commencement & completion

3. Contractor’s responsibility.

4. Employer’s responsibility.

Payment

1. Contract price

2. Term of payment

3. Securities

4. Taxes and Duties

Intellectual Property

1. Copy right

2. Confidential Information

Execution of Facilities

1. Representative

2. Work Program

3. Subcontracting

4. Design & Engineering

5. Plant & Equipment

6. Installation

7. Test & Inspection

8. Completion of the facilities and Operational acceptance.

1. Guaranties and Liabilities

Completion time guaranties.

Defect Liabilities

Functional guaranties.

Equipment performance guaranties.

Subject Matter of Contract

Scope of Facilities:-

Meaning of Facilities:- Plant and Equipment machinery, raw material and service of the

Company or firm. These firm or companies come under the contract having a good stock of

facility like euro Machineries, equipments. Raw Material for developing a product ( Supply

of mandatory or spare part) and services like transportation services etc. if the contractors fail

to supply the spare parts in given contract time, the employer shall sanction the contractor

declaring them ineligible for a stated period of time for future project.

Contractor’s Responsibilities:-

The contractor shall design, manufacture, installation and complete the facility with

due Core and diligence in accordance the contract.

The contractors entered into the contract on the basis of data relating to facilities

provided by employer and on the basis of information that the contractor could have

obtained from visual inspection of site and other data readily available to relating to

the facilities as of the date 28 days prior to bid submission.

Contractor shall acquire in its name all permit approval or licence from all local state,

national govt. authorities or public service undertakeing in the century where site is

necessary for the performance of contract. The contractor shall complete with all the

laws in force in India. The laws will include all local, state, national or other laws that

affect the performance of the contractor.

The contractor shall permit the employer to inspect the contractor’s a/c and record

related to the performance of contractor.

Employer’s Responsibility:-

Employer has responsibility to provide accurate information to contractor.

Employer should be responsible for acquiring and providing legal and physical

ownership and the site and access to all other areas reasonably require for execution

of contract.

The employer shall also be responsible for the permit, approval and license from all

the local, state, national govt. authorities or public services undertaking in the

countries where the site is located i.e. necessary for the execution of contract.

Employer should also provide sufficient properly qualified operating and maintenance

personal shall supply and make available all raw material utilities, lubricants,

chemicals, catalysts, other materials and facilities.

The employer shall be responsible for continued operation of facilities.

All the costs and expenses involve in the performance of obligation under GCC shall

be responsibility of employer.

PAYMENT

Contract price and terms of payment form the contract agreement.

Contract Price:-

Contract price shall adjust according to contract agreement. It should be increased or decreased with the quality. Break-up of the contract price-

Price Components

Ex work price

Type test charge

Total contract cost

Terms of Payment:-

Terms of Payment should be specified in the contract agreement. All the payment under the

contract shall be made in Indian rupee.

Securities:-

1. Insurance of Securities 2. Advance Payment Securities.

Taxes and Duties:-

Contractor shall be responsible for all the payment of taxes, duties, license, fees and levies

legally payable until delivery of contracted supplies to the employer. Employer does not take

any responsibility regarding to the taxes under Indian Income Tax of contractor.

In case of direct transaction b/w the contractor and employer, the Exec price include all cost

and duties paid or payable on component, raw material and any other item. Employer would

not bear any liability on a/c of service tax. Employer shall reduce tax at source as per rules &

norms.

Intellectual Property

Copy Right:-

Copy rights include all drawings, documents and other material containing data and information furnished to the employer by the contractor.

Confidential Information:-

The employer and contractor shall keep confidential and shall not out the written consent of

other party. The employer shall not use such document data and other information received

from the contractor for any process other than operation and maintenance of facility.

Execution of Facility

Employer’s Representative:-

Employer shall appoint the project manager in contract and notify the contractor if their name

is not written in contract. All the notice, information, order, certificate, approval all other

given by the project manager.

Contractor’s Representative:-

Contractor shall appoint the construction manager in contract and notify the employer if their

name is not written in contract. All the notice, information, order, certificate, approval and all

other taken by the construction manager.

Work Program:-

1. Contractor’s organization:-

Contract shall supply the organizational chart of key personal with other C.V. who will work

on those facilities to employer & project manager within 21 days

2. Program of performance:-

Within 28 days after date of notification of award, contractor shall prepare a detailed

document & send to the project manager which include performance of program in contract

like design, manufacture and transport, assemble, installation, pre-commissioning etc.by

critical patha method.

1. Progress report of performance:-Contractor shall send the progress report of performance to project manager every month.

Subcontracting:-

Subcontractors are listed against any such item & it sends to the employer.

Design & Engineering:-

1) Specification & Drawings:-

The contract shall execute the basic & detailed design and the engineering work in

compliance with the provision of the content.

2) Codes & Standards:-

Here some codes & standards made according to which execution of contract occur. It shall

be change 28 days prior to bid submission & after approval of employer.

3) Technical document of contract should be approved/reviewed by project manager.

Plant & Equipment:-

Employer supplied plant, equipment, material. The employer shall be its own risk expense,

transport each items to the site. The plant & equipment furnished by the employer shall

supply to contractor department. The lorry receipt will be handed over the contractor. The

contractor will be responsible for taking delivery from the transport & also responsible for

proper handling & maintenance of plant & equipment. Employer can inspect the yard and

store of contractor, the cost of all handling & storage by the contractor. If any plant &

equipment get damages then contractor has to inform to employer for resupply of that

materials.

Transport:-

The contractor shall be its own risk & expense transport each items to the site. And contractor

should choose any safe mode to transport the material.

Installation:-

Installation of the facility at the site is done by the contractor and contractor shall provide all

necessary superintend to the installation and provide construction manager, technical

personal to the site.

Completion of facility & operational acceptance:-

Contractor shall be complete the facility in the given period of time in contract. It includes all

the process from getting the order up to installation & service.

Guaranties and Liabilities

Completion time guaranties:-

Contractor has to give a guaranty period to employer for competition of job in the contract. It

may be 6 month; 10 month, 1 year etc depend on the job.

Defect Liabilities:-

Under defect liability if any defect comes in any part of facility under given guarantee period

then that part has to be replaced by contractor without any extra cost on employer.

REJECTION OF TENDER

1. TENDERS WILL BE SUMMARILY REJECTED IF

The EMD requirement are not complied with,

Not satisfying any of BID Qualification Requirements.

Cost of specification is not enclosed inside the outer cover and outside the inner cover

for those who are downloading the documents from the TNEB Website.

If the documents furnished with the offer is found to be bogus or the documents contains

any false particulars

2. TENDER IS LIABLE BE REJECTED IF IT IS:

a) Not covering the supply of equipments / materials with all accessories.

b) With validity period less than that stipulated in this specification.

c) Not in conformity with Board Commercial terms and Technical specifications

(Section-V & Vi)

d) Not signed properly by the tenderer.

e) Received from consortium of SSI units.

f) Received “after due date and time”

g) Received from a tenderer who is directly or indirectly connected with government

service or board service or services of local authority.

h) From any black listed firm or contractor.

i) Received by Telex / Telegram / E-Mail / FAX.

j) From a tenderer whose past performance / vendor rating is not satisfactory.

k) Not containing all required particulars as per schedule – A to G

l) Not containing separate Demand Draft / Bankers Cheque towards the cost of

specification along with their offer in the case of downloading the tender documents

from TNEB Website

m) Received from any joint venture of firm / companies / individual or consortium of

firms / companies / individual

n) Demand Draft or Bankers Cheques towards the cost of specification in the event of

downloading from boards website should be drawn on or before the last date of sale

of tender specification.