SYNOPSIS

On

SERVICE QUALITY OF LPG SERVICE

Submitted to the Uttaranchal University in partial fulfillment of the

requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

SOHIT TOMAR

(Enrollment No.: ---------------------------------------)

Under the guidance of

Guide name with Designation (Faculty Guide)

(Batch: 2014-2016)

FACULTY OF MANAGEMENT AND BUSINESS STUDIES

UTTARANCHAL UNIVERSITY, DEHRADUN

INTRODUCTION

Indane is today one of the largest packed-LPG brands in the world and has been

conferred the coveted Consumer Superbrand status by the Superbrands Council

of India

Having launched LPG marketing in the mid-60s, IndianOil has been credited

with bringing about a kitchen revolution, spreading warmth and cheer in

millions of households with the introduction of the clean and efficient cooking

fuel. It has led to a substantial improvement in the health of women, especially

in rural areas by replacing smoky and unhe- althy chulha. Indane is today an

ideal fuel for modern kitchens, synonymous with safety, reliability and

convenience.

With the status of an exclusive business vertical within the Corporation, Indane

is delivered to the doorsteps of over 92 million households. IndianOil’s 91

Indane bottling plants in upcountry locations roll out 1.81 million cylinders a

day, making IndianOil the second largest marketer of LPG globally, after SHV

Gas of The Netherlands. Indane is available in compact 5 kg cylinders for rural,

hilly and inaccessible areas, 14.2 kg cylinders for domestic use, and 19 kg and

47.5 kg for commercial and industrial use.

LPG is a blend of Butane and Propane readily liquefied under moderate

pressure. LPG vapour is heavier than air; thus it normally settles down in low-

lying places. Since LPG has only a faint scent, a mercaptan odorant is added to

help in its detection. In the ev- ent of an LPG leak, the vapourisation of liquid

cools the atmosphere and condenses the water vapour contained in it to form a

whitish fog, which is easy to observe. LPG in fairly large concentrations

displaces oxygen leading to a nauseous or suffocating feeling. 

REVIEW OF LITERATURE

Literature review carried out under the following broad categories. Summary of inferences,

gaps from literature review is given under each category.

Table 4: Summary of literature survey

Main theme No of references

Cylinder marketing 5

Cylinder incidents 8

Cylinder design 13

Cylinder Material properties 8

Cylinder Marketing

The following documents reviewed under the category of

cylinder marketing

LPG As a cooking fuels option for India[13]&[14]

Management of Supply Chain in Petroleum Corporations in India [15]

Understanding the political economy and key drivers of energy access in

addressing national energy access priorities and policies [49]

Scenario analysis of household energy use in India [16]

Residential market for LPG [100]

It is understood that the 17.5 % of Indian homes are equipped with LPG as a cooking fuel and it is

equivalent to 33.6 million numbers. This is a huge number. The supply chain of LPG Cylinder

management is critical for the operating firms particularly the initiatives taken towards

green supply chain, where in emphasis is on optimize the entire supply chain. Although

the potential exists, infrastructure needs to strengthen in terms of reliability for increasing the

access of energy

Cylinder Incidents

The following documents reviewed under this category

Identification Of Technological Disaster Prone Areas In Province Punjab, Pakistan [1]

Modelling The Performance Of Coated LPG Tanks Engulfed In

Fires[42]&[43]

Risks Of Fire And Explosion Associated With The Increasing Use Of

Liquefied Petroleum Gas [85]

Risk Reduction In Road And Rail LPG Transportation By Passive Fire Protection [73]

Welded Low Carbon Steel Cylinders Exceeding 5 Litre Water Capacity For Low

Pressure Liquefiable Gases Part 3 Methods Of Test [3]

Transport of dangerous goods through road tunnels [48]

Boiling Liquid Expanding Vapor Explosions (BLEVEs) [64]

Measures to avoid a hot BLEVE of a LPG tank [69]

Increase use of LPG enhances the risk of boiling liquid expansion vapor explosion (BLEVE). In

simple terms, BLEVE is an intense explosion due to sudden and rapid expansion of LPG. It is

evident from the studies that the BLEVE triggered secondary fires due to flying hot

objects due to explosion. Although there is no direct study on material safety vs. BLEVE,

improper heat-treat on LPG Cylinder can cause cylinder to burst with fragments in burst test

of LPG Cylinder. These fragments are the main reason for secondary fires associated with

BLEVE.

Cylinder Design

The following documents reviewed under this category

Pressure-Temperature Diagram Analysis Of Liquefied Petroleum Gas And

Inspection Of Retrograde Phenomenon [72]

A New End-Closure Design For DOT-4BA Propane Cylinders [105]

Burst Tests And Volume Expansions Of Vehicle Toroidal LPG Fuel Tanks [106]

Determination Of Burst Pressure And Location Of The DOT-39 Refrigerant

Cylinders [101]

Determination Of Stress And Deformations Analysis On LPG Steel Cylinder [90]

Determination Of Stresses Of LPG Gas Cylinder By Finite Element Method [78]

Effects Of Weld Zone Properties On Burst Pressures And Failure Locations [104] Finite

Element Analysis Of LPG Gas Cylinder [66]

Minimum Material Design For Propane Cylinder End Closures [102]

Stress Analysis Of LPG Cylinder Using Ansys Software [67]

Welded Low Carbon Steel Cylinders Exceeding 5 Litre Water Capacity For Low

Pressure Liquefiable Gases Part 1 Cylinders For Liquefied Petroleum Gases

(LPG) -Specification [25]

Design and analysis of LPG cylinder using ANSYS [33]

Design and finite element analysis of FRP LPG cylinder [71] From the literature, Cylinder

thickness is the critical factor in designing. If the thickness is increased the cylinder safety

increases in conventional design. However the weight of the cylinder increases proportional to

thickness. The cylinder specifications states, the thickness is based on yield strength and test

pressure, weld joint factor and the diameter of cylinder. Among these parameters the yield

strength can be obtained only with tensile testing of cylinder material.

While analysis stresses and deformation studies on cylinders, critical factors are identifies

such as tensile strength, yield strength, percentage elongation, burst pressure and volumetric

expansion. Limits for these parameters are given in Indian Standards for further reference.

From studies, it is evident that the burst test and volumetric expansion can be estimated using

mathematical models for LPG fuel tanks that are large capacity cylinders that are not

intended for domestic consumption. In small cylinder segment like refrigerated cylinders, the

burst pressure and its location can be predicted with mathematical models. Softwares like

FEA, ANSYS, Pro-E WILDFIRE can be used for estimation of stress in cylinders. However,

this software cannot be used for routine laboratory tests as these are expensive, cannot be operative in shop floor and are not possible to integrate with online field equipment, where instantaneous response is

Cylinder Material Properties

The following documents reviewed under this category

Comparison Of Hardness, Tensile Stress And Yield Stress, Depending On

Temperature And Annealing Time Of Degradation Of P91 Steel[37]

Correlation Between Hardness And Tensile Properties In Ultra-High Strength Dual

Phase Steels - Short Communication [68]

Effect Of Cooling Rate On Hardness And Microstructure Of Aisi 1020, Aisi

1040 And Aisi 1060 Steels [2]

Effect Of Soaking Time On The Mechanical Properties Of Annealed Cold-

Drawn Low Carbon Steel [76]

Experimental And Analytical Investigation Of Thermal Coating

Effectiveness For 3m3 LPG Tanks Engulfed By Fire [43]

Fuzzy Regression Analysis: An Application On Tensile Strength Of

Materials And Hardness Scales [95]

Influence Of Degree Of Cold-Drawing On The Mechanical Properties

Of Low Carbon Steel [74]

Estimation Of Yield Strength From Hardness Measurement [84] Form the literature; it is

evident that correlations relationship is possible among hardness,

tensile strength and yield strength. It is also evident that the heat treatment process on low

carbon steel there is a relation between of steel effects its mechanical properties such as

hardness, yield strength, tensile strength and ductility in other words percentage elongation.

44

This depends on soaking temperatures and time. The Indian standards on LPG Cylinder states

repeated heat treatment on LPG cylinders till they pass the acceptance test instead of

discarding a failed batch during the production process. This scenario affects mechanical

properties, based on the literature study. Also the few studies revealed linear relation between yield

strength and hardness on low carbon steel. Cylinder domes are manufactured with deep drawn

domes. The cold drawing process can influence mechanical properties especially, tensile

strength and hardness. Yield strength, tensile strength and ductility reduces with increased

cold drawing operation on a steel sample.

OBJECTIVE

primary objectives of the study:

To find out the quality of customer services offered by Indane LPG distributors in

Dehradun city.

To study the drawbacks of the services offered and way to improve.

Find out the expectations of the consumers.

To study the distributors and know about the distribution chain and the level of service

offered by the distributors.

To find out ways to improve the distributor’s functioning and anticipations.

RESEARCH METHODOLOGY

Marketing Research Problem

To determine quality of customer services offered by Indane LPG distributors in Dehradun City.

Information Needed

The questionnaire was designed in such a way that the information regarding the following

was obtained:

Whether the consumer are getting timely refill supply from their Distributor.

Whether the consumer are home delivery.

Whether the delivery man demand extra money.

Whether the consumer getting timely response in your complaints redressed from the

Distributor.

Whether the consumer finds any difficulty in booking your refill over phone.

Whether the Distributor/Staff courteous over the phone.

Whether the Distributor/Staff courteous when you visit showroom.

Whether the delivery man/mechanic courteous.

Whether the cylinders have seal on them.

Whether the cylinders have safety cap attached.

Whether the consumers been getting prompt service from customer Service Cell.

Whether the consumers been getting periodic instruction from the Oil

Company/Distributor regarding safety awareness.

Whether the consumers been getting periodic guidance from Oil Company/Distributor

regarding Fuel Saving.

The above information actually leads to the conclusion that whether Indane consumers are

satisfied with the services offer by the Indane Distributors and also their expectation on the

future.

Approach to the Problem

To formulating the research design exploratory research was done to get a better understanding

of the research problem i.e. to determine quality of customer services offered by Indane LPG

distributors in Dehradun City.

Research design: Type of Research Design

Descriptive Research Design- Survey: Personal Interview

Reasons for selecting this method

The questions were diverse and personal interaction was needed to get the correct and

true response of the respondent.

The sample selected can only be reached through this method.

The response rate could only be increased through this method.

In this method the time required and the cost involved is less as compared to other

methods.

Primary Data:

Primary data was collected from Indane consumers through personal interviewing techniques.

The interview was conducted at the distributor’s booking point and LPG distribution point. A

structured questionnaire was designed to conduct the interview.

To get an insight into the various services offered by the distributors I visited two prominent

distributors. I also took information about the feedbacks they received from the consumers. This

information helped me to get an initial understanding of the consumer need. No structured

questioner has been formed for the distributor’s interview.

The sample size has been decided and divided accordingly to four distributors. The distributors

visited by me are: Bhaskar Gas, Bluflame Agencies, City Gas and Dipti Gas. These four

distributors are located in prominent part of the city.

Exploratory Research Design

Secondary Data:

Secondary Data was collected to get a better understanding of the following:

The research problem.

IndianOil and Indane distributors code of conduct.

Various rules and regulation regarding purchase and sale of LPG.

Rights of the distributors and consumers.

Grant of new connection and transfer of connection.

Various non fuel products sold by the Indane Distributors.

Services offered by the Indane Distributors.

Other relevant information.

The data was collected from Indane’s consumers and distributor’s code of conduct manual,

IOCL’s magazines, journals, news papers and websites like:

www.iocl.com

www.ioclbizz.com

www.petroleum.nic.in

www.google.com

Secondary Data Collected

Empowerment of Indane Distributor

1. Revalidation of intimation letter of new connection and DBC

Time given – 60 days (can be extended on genuine reason for the delay)

On the condition:

Original slip must be shown i.e. Subscription Voucher

Customer signature must tall with the original signature.

2. Revalidation of Termination Voucher

Time given – 365days (can be extended on genuine reason for the delay)

3. Case of Death of the customer

The family member should produce the following documents:

Copy the death certificate of the consumer

Original Subscription Voucher

Lost Subscription Voucher

In case of lost SV the following documents must be given to the distributor

1. Copy of the Subscription Voucher

2. Passport

3. Succession Certificate

4. Election Card

5. Affidavit

6. Succession Certificate

7. NOC from legal Heir

8. Affidavit-Oath Commission or Public Notary

4. Case of Theft of Cylinder

FIR should be logged.

District council will inform the area manager and give the area manager customer

detail.

Market return of Indane Cylinders by Distributors

The cylinders can be returned by the distributors on the following conditions.

The cylinder is under weight but, seal is intact.

The cylinder is under weight but, seal is not intact.

Body leak cylinders.

Bung leak cylinders.

Unsealed suspicious.

Unserviceable cylinders.

Sampling Technique

Non-Probability Sampling Technique

The sample includes Indane consumers visiting the Indane Distributor booking office and LPG

distribution point.

Convenience Sampling.

Judgmental Sampling.

Sample Size

200 Indane Consumers selected randomly.

Scaling Technique

The scaling technique I used in the survey is nominal methods. Each data collection form has

been assigned a serial no. so that the consumers can be easily identified.

Rating Scale: Likert Scale

An itemized rating scale has been used for each and every question in the questionnaire.

The Likert Scale used in the questionnaire is:

ALWAYS MOSTLY SOMETIMES RARELY NEVER

Fieldwork

The fieldwork was done by me along with the help of staff in the Indane Distributor’s office.

Analysis

SPSS package was used to analyze the data obtained from the survey.

Findings

Out of 200 consumers, 158 (79%) consumers get their refill on time but, 21 % consumers

face delay in delivery of refill at preferred time. One of the main reason for the delay is

that the delivery man have to return back as there is no one present in the consumer

residence at the time of delivery.

Out of 200 consumers,158 (79 %) consumers always receive home delivery but 42 (21

%) consumers don’t get home delivery. Out of the 42 consumers 24 of them never get

home delivery. The company have to do something as the price of cylinders include

home deliver charge.

When it comes to demanding extra money by the delivery man, 170 consumers out of

200 responded that the delivery man never demanded extra money. 30 consumers have

face situation where delivery man have demanded extra money. The delivery man ask for

carrying charge from the consumers and don’t want to return the change. The consumers

can lodge a complaint against such deliver man.

Out of 200 consumers 170 consumers are getting timely response in complaints redressed

from the Distributor. Only 3 consumers have never got timely response on complains.

133 consumers out of 200 never find difficulty in booking refill over the phone but, 67

consumers are find difficulty in booking refill over the phone. Some consumers have

even complained that instead of confirmation of booking refill over the phone by the staff

the consumers do not get the cylinders. When the same consumers visit the office and

enquire about the delay the staff say that there is no such booking been made by the

consumer. The telephone booking facility is also one of the major services offered by the

distributors and customer satisfaction depends a great deal on it.

Recommendations

Customer expectations are not merely limited to receiving timely refills, but look forward

to value added services. Indane have to initiate these changes and have to take measures

to standardize and benchmark all marketing activities such as checking weight of the

cylinders and spreading safety and fuel saving awareness among consumers.

The company must take initiatives to improve the overall service of the distributors. The

company can set targets for the distributors which, if achieved the distributor will be

awarded in the form of increased commission rate, advertisement for the distributor,

discounts on non fuel products, etc.

As Indane has a market share of almost 99 % the distributors must provided the services

seven days a week to increase customer satisfaction.

The delivery man of all the distributors must be provided with proper uniform and i-card

in order to minimize sales through road side vendors at very high prices. As the general

public is unaware they must be educated through various means such as newspapers and

television advertisements, by sending personal to the consumer’s residence and by

telephonic conservation. The consumers must be guided about what action they should

take when they see such illegal activities. Only then such illegal sale LPG can be stopped.

The company should organize regular tanning sessions for the distributor’s staff such as

the manager, the staff at the booking counter, delivery boy and the mechanic so that they

can give 100 % at work. This will help to increase consumer satisfaction.

The distributors must give weight checking equipments and leak checking equipments to

the delivery man to make the process fast, reliable and safe.

Implications for Future Research

Survey on consumers from other distributors should be done to get the exact level of customer

satisfaction.

Consumer from prohibited area of Indian Defense Service should be surveyed.

Research should be done on the non fuel products sold at the distributor booking office. The

level of customer satisfaction on the various non fuel products, the demand of these product and

other modes of generating non fuel revenue must be studied.

Research on Auto LPG should be done as this sector is not performing well.

References

Books:

Market Research- An Applied Orientation {5th Edition} By Naresh K. Malhotra

(Published by Pearson Education)

Marketing Management{12th Edition} By Philip Kotler & Kevin Lane Keller

(Published by Prentice-Hall India)

Statistics for Business & Economics{ India Edition } By Anderson, Sweeney &Williams.

(Published by Thomsan Southwestern)

Journals:

Indane LPG Manual Hand Book.

Annual report of IndianOil.

Business Today.

Newspaper:

Sentinel

Dehradun Tribunal

Websites:

www.iocl.com

www.ioclbizz.com

www.petroleum.nic.in

www.google.com