A PROJECT REPORT ON CAPACITY PLANNING OF PZS GROUP IN BFL
BY
CHETAN SHITOLE REG.NO.-201200480 (2012 – 2014)
IN PARTIAL FULFILLMENT OF PGDBA-OPERATIONS MANAGEMENT SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL) PUNE: 411016
ACKNOWLEDGEMENT A project of this nature calls for intellectual nourishment, professional help and encouragement from many quarters. I would like to express my gratitude to my project mentor, Mr. Santosh Dhage for his invaluable guidance, directions and intent supervision at every step of this project work. I would like thank Mr. B.N Kalyani, Chairman and MD of Bharat Forge Ltd who provided me the opportunity of doing project in Bharat forge. I would also like to offer my acknowledgement to Mr. S.J Gangawane (AVP, PPC dept.) and Mr. Manish Rashinkar (Sr. Manager, PPC dept.) and the complete staff of PPC department for their support and guidance throughout the project. I would also like to show my gratitude towards SCDL for giving me the opportunity to work on this project.
Mr. Chetan Shitole
ABSTRACT
The objective of the project is to do capacity planning of PZS group and to study the Working and functioning of the PPC department. Capacity verses demand is studied for different presses under PZS group, for few presses where the demand does not matches the effective capacity the factors of OEE and cycle time are studied. Demand forecasting is done using the least square method
to know the future requirement and plan
accordingly for future. According to the forecast the demand will be exceeding the capacity; therefore the company should start working on how to increase the capacity. Steps in capacity planning are studied to understand the planning process, and also suggest a particular strategy to use for future planning.
INDEX Sr. No. 1
1.1 1.2 1.3 1.4 1.4.1 1.4.2 1.5 1.6 1.7 1.8 1.9 1.9.1 1.9.2
2 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 2.1.8 2.2 2.2.1 2.2.2 2.2.4 2.2.5 2.3 2.3.1
3 3.1
3.1.1 3.2 3.2.1 3.2.2 3.2.3 4
3.3 4.1 4.1.1 4.1.2 4.2
4.2.1
Contents Introduction Company Profile Bharat Forge history Major milestones Forging facilities Closed die forging facilities Open die forging facilities Clients of BFL Brief overview of BFL Material flow in BFL Steps in forging process Products of Bharat Forge Closed die forging products Open die forging products Literature review Production planning and control Principle of planning and control Function of PPC Planning in BFL Controlling in BFL Objectives of PPC Process carried out by PPC in BFL Co-ordination of PPC with other department Capacity planning Introduction to capacity planning Need of the project Capacity decision Factors affecting capacity planning Prime area : PZS group Important parameters of presses and hammers Demand evaluation Forecasting Forecasting methods Demand pattern Customer wise Part wise Group wise Forecasting for PZS group Capacity planning Estimate future capacity Quarterly business plan Four monthly production plan Evaluate existing capacity and identify gaps Monthly capacity planning of PZS group
Page No. 1 1 3 4 6 6 8 9 11 19 21 22 22 24 26 26 26 27 27 28 28 29 30 33 31 34 36 39 39 40 41 41 41 46 46 47 48 49 51 51 51 54 56 56
4.2.2 4.3 5 5.1 5.2 6 6.1 6.2 6.4 7
Effective capacity vs demand Planning for future Data analysis and interpretation OEE analysis Pareto chart for major downtime Suggestions Checklist of the preventive maintenance Adjustments to capacity Capacity planning strategies References
64 65 68 68 74 78 79 79 82
LIST OF FIGURES Sr. No. 1 2 3 4 5 6 7 8 9 11 12 13 14 15 16 17
Figure No. Fig. No. 1.1 Fig. No. 1.2 Fig. No. 1.3 Fig. No. 1.4 Fig. No. 1.5 Fig. No. 1.6 Fig. No. 1.7 Fig. No. 1.8 Fig. No. 1.9 Fig. No. 2.1 Fig. No. 2.2 Fig. No. 2.3 Fig. No. 2.4 Fig. No. 2.5 Fig. No. 3.1 Fig. No. 6.1
Page No. 3 9 10 11 20 22 23 23 25 27 30 31 35 38 42 81
LIST OF GRAPHS Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12
Graph No. Graph No.3.1 Graph No 3.2 Graph No 3.3 Graph No 3.4 Graph No 4.1 Graph No 4.2 Graph No 4.3 Graph No 4.4 Graph No 4.5 Graph No 4.6 Graph No 5.1 Graph No 5.2
Page No. 47 48 49 50 57 59 60 62 63 65 75 76
LIST OF TABLES Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 32 33 34 35 36 37 38 39
Tables Table No 1.1. Table No 1.2 Table No 1.3 Table No 2.1 Table No 2.2 Table No 3.1 Table No 3.2 Table No 3.3 Table No 3.4 Table No 3.5 Table No 3.6 Table No 4.1 Table No 4.2 Table No 4.3 Table No 4.4 Table No 4.5 Table No 4.6 Table No 4.7 Table No 4.8 Table No 4.9 Table No 4.10 Table No 4.11 Table No 4.12 Table No 4.13 Table No 4.14 Table No 4.15 Table No 5.1 Table No 5.2 Table No 5.3 Table No 5.4 Table No 5.5 Table No 5.6 Table No 5.7 Table No 6.1
Page No. 4 6 8 39 40 44 45 46 47 48 49 52 53 54 55 57 58 58 59 60 61 61 62 63 64 64 68 69 70 71 72 74 76 79
1. INTRODUCTION
1.1 Company Profile Bharat forge limited (BFL), the Pune based multinational is a technology-driven global leader in metal forming having trans-continental presence across a dozen manufacturing locations, serving several sectors including automobile, power, oil and gas, rail and marine, aerospace, construction and mining. Part of Kalyani group- a U.S $ 2.5 billion conglomerate with 10,000 global work forces. BFL today has the largest repository of metallurgical knowledge in the region and offers complete service supply capabilities to its geographically dispersed marquee customers from concept to product design, engineering, manufacturing, testing and validation. Bharat Forge is the largest forging company in the world and one of the most technologically
advanced commercial forge shops in the world. They specialize in manufacturing over 2000 different range of forgings and machined components for the automotive, engine, railway, earthmoving, cement, sugar, steel, coal, shipbuilding and oil field industries. They are specialized in closed die as well as open die forgings. BFL’s customer base includes virtually every global automotive OEM and tier 1 supplier. It holds the distinction of being the first Indian automotive component manufacturing company that
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made a major breakthrough in china in 2003 by securing large business from first and second automotive works, the two leading automobile manufacturers in that country. It is the largest manufacturer of the axle components for heavy trucks with a 35% global market share and a 10% global share in engine components. The organization aspires to become $3 Billion Company in the near future by having various organic and non-organic business expansions. The business is so well maintained and spread that a single customer constitutes not more than 8% of the total turnover of Bharat Forge. An ISO 9001-2000, ISO/TS 16949: 2002 accredited company, Bharat Forge is internationally reputed for its cutting edge technology, quality processes, and capabilities developed over the years to meet the exact standards of the most demanding customers in the world. BFL completed capacity expansion to set up dedicated state of art facility for manufacture of critical and value added components for non-automotive applications including rail and marine, Oil and Gas, power and construction and mining. Over the year BFL has built a strong base of intellectual capacity. Highly skilled and motivated manpower, with over 1200 engineers engaged in various manufacturing disciplines are driving the company’s global thrust. Bharat Forge limited today is a global corporation with world class engineering capabilities, state of the art manufacturing facilities and a global customer base that includes General Motors, Toyota, Ford, Daimler-Chrysler, Honda, Renault, Volvo, Caterpillar-Perkins, Cummins, Arvin Meritor, Mitsubishi Motor Corporation, Dana Corporation and several others.
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Fig. 1.1
1.2 Bharat Forge history Bharat Forge Ltd. is one of the most innovative & exciting companies to emerge in the history of the forging industry. The Indian Automotive Industry in 50s was more like the story of imported kits. Ancillaries were nominal & infrastructure was scarce and inadequate. It was then, that Bharat Forge came into existence in 1961 to meet the forging needs of Indian Automotive Industry. The 70’s witnessed a spurt in the Indian forging industry with more & more units coming up. For Bharat Forge, it was a period of consolidation & growth. With the largest integration facilities in Asia & an unbeatable track record, Bharat Forge emerged as the undisputed leader the first name in forgings industry in India. With an emphasis on diversification, the 80’s saw, Bharat Forge grew from a primarily automotive ancillary to an engineering enterprise focusing on technological supremacy,
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resilience & total customer orientation. Today, the art of forging metal is tradition at Bharat Forge, & all of our products are built with the expertise necessary to accommodate various industries. Each customer specification is carefully transformed into a cost efficient reality. Every part we create is a representation of our overall dedication to craftsmanship. An outstanding reputation for customer service coupled with the management commitment to quality has made Bharat Forge the preferred domestic & global supplier for major OEM’s. Under the intense & caring supervision of the chairman & managing director, Mr. B. N. Kalyani, the company continues to expand & its markets continue to grow, while the goal remains the same : to deliver competitive, quality products & services time after time. 1.3 Major Milestones 1961
Incorporation
1962
Technical agreement with SIFCO, USA for hammer forging technology
1966
Start of hammer shop commercial production
1972
Execution of maiden export order to Greece
1984
Technical agreement with Tokyo Drop Forge, Japan for technology up gradation & quality improvement for hammer forgings
1985
Entry in erstwhile USSR market by winning a large contract for under carriage components-for track line and big crank shafts
1986
Technical agreement with Jidosha Buhin Kogyo, Japan for machining of front axle beams
1990-91
Major breakthrough in the developed markets of Japan, USA & UK for the critical suspension & engine components like front axle beams & machined crankshafts.
1991
Implementation of large US $ 50 million forging facility up-gradation program by commissioning of 16000 MT’s & 6000 MT’s Weingarten (Germany) make of screw press lines.
1993
ISO 9002 accreditation
1996
Technical agreement with Metalart Corporation, Japan for small forgings &
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commissioning of 4000 MT’s & 2500 MT’s mechanical press lines for small forgings. 1997-98
Establishment of new machining facilities for crankshafts, front axle beams & heavy steering knuckles.
1999
QS 9000 accreditation
2000
Implementation of a US $ 30 million facility expansion program by commissioning of second 16000 MT’s Weingarten (Germany) make screw & 2500 MT’s mechanical press lines.
2003
Bharat Forge has acquired one of the largest forging companies in Germany named Carl Dan Pedinghaus emerging as the second largest Forging Company in the world.
2004
Acquisition of Aluminum Forging Company in Germany in December 2004. Major expansion program FMD III & MCD II. Once again a part of the Forbes list of 200 successful companies out of US, With revenue less than $ 1 billion. “CEO of the year to Babasaheb Kalyani” by business standard.
2005
Acquired Imatra Kilsta, AB, Sweden along with its whole Scottish Stampings, Scotland (together called as Imatra). Signed a JV with FAW Corporation, the largest automobile named FAW Bharat Forge.
2006
kurimoto line installed - completely automatic transfer line
2007
Introduction of 12500 TMP to increase business- mainly for big components
2008
Baramati plant was started- as a measure of expansion of capacity facility
2013
Wedge press installed to serve the demand for international customers
Table no. 1.1
5
1.4 Forging Facilities 1.4.1
Closed die forging PRESS SIZE
WEIGHT RANGE
TYPICAL COMPONENTS
(KG) 16,000 MT
60-250
I-Beams & Crankshafts & Connecting Rods
12,500 MT
60-250
I-Beams & Crankshafts
10,000 MT
80-120
Crankshafts & I-Beams
8,000 MT
20-90
Crankshafts & I-Beams
6,000 MT
20-50
Steering Knuckles, Crankshafts, Connecting Rods & Lower Control Arms
5,550 MT
20-50
Crankshafts for Passenger Cars
5,000 MT
10-50
Control Arms, Steering Knuckles, Lower Control Shoes & Truck Shoes
4,000 MT
5-20
Steering Knuckles, Crankshafts, Connecting Rods, Swivel Hubs, Knuckles, Control Arms, Heavy Duty Pistons, Wheel Carriers,
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Upper Control Arms, Track Shoes & Brackets 2,500 MT
2-5
Connecting Rods, Transmission Components, GET Tips, Camshafts, Knuckles, Upper Rear Control Arms & Pistons
2,000 MT
2-5
Tips, Camshafts, Knuckles & Pistons
Hammer
2.5T & 4.5 m long
Large components for Energy Sector, Hydro Carbon
80 Mtr Ton
Exploration Sector including Fracing. Transportation including Aerospace, Locomotive & Marine. Ring Rolling
Up to 4000 mm in diameter
Large Rings & Gear blanks for various sectors
Table no. 1.2
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1.4.2
Open die forging PRESS SIZE
WEIGHT RANGE
SECTORS
(KG) 4,000 MT
70 T
Products for sectors such as Wind Energy, Oil & Gas, Steel, Power, Gear, Cement, Ship Building, Press Vessel, Petrochemical & Sugar Industry. Shafts for the Wind Energy & Power Generation sector, Well Heads & X-mas Tree parts for the Oil & Gas Industry and Pinion Shafts, Gear blanks etc. for the Capital Goods sector.
1,600 MT
17 T
Products for sectors such as Sugar Industry, Cement Industry & Material Handling, Mining, Shipbuilding, Fan & Pump, Oil & Gas
Table no. 1.3
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1.5 Clients BFL has various kinds of customers both from Automotive and Non-Automotive field. Following are some of the customers of BFL
Automotive
Fig. 1.2
9
Non-Automotive
Fig. 1.3
10
1.6 Brief Overview of BFL
Fig. 1.4 CDFD:
MCD:
MCD:
Services:
Ø FMD 1
Ø MCD 1
Ø HFD 1
Ø ITD
Ø FMD 2
Ø MCD 2
Ø HFD 2
Ø Sales
Ø FMD 3
Ø MCD NC Ø Die Shop
Ø Forge Shop
Ø MCD Chakan
Ø Material Ø MCD Baram ati
Ø HR
Ø CDFD Engg
Ø Legal
Ø Processing
Ø PPC
Ø Heat Treatment
1
Ø Finance
1
1. FMD I (Forge Modernization Division I)FMD I stands for Forge Modernization Division 1. The unit was started at BFL Mundhwa plant in 1991 and has been in operation ever since. Today it has a total of 5 press lines. The lines available are PZS-1 line (16000T), PSH line (6300T), LKM-4000 line (4000T), LKM- 2500 line (2500T) and LMZ 2500 line (2500T). The jobs forge here includes Crank Shafts, Front Axle Beams, and Connecting Rods etc. The types of furnaces used here are Rotary Hearth Furnace and Induction Furnace. 2. FMD II (Forge Modernization Division II)FMD II stands for Forge Modernization Division 2. It has a total of 4 press lines. The lines are PZS-2 line (16000T), AZAX line (6000T), EUMUCO line (5000T), MAXI line (2500T). Here the PZS press is mainly used for forging Axle Beams. 3. FMD III (Forge Modernization Division III)FMD III stands for Forge Modernization Division 3. The unit was installed in 2005 and being the latest one it has the highest level of automation. It has a total of 3 press lines. The lines are TMP 12500 line (12500T), TMP 8000 line (8000T) and Kurimoto line (5500 T). 4. Forge ShopForge Shop is the oldest division of Bharat Forge Ltd. and still is using the old machinery. The division has Hammers instead of Presses unlike FMDs. It forges various products with weight range of up to 350 kg. It has pneumatic hammers which are manually controlled. The lines available here are 25001, 25002 and 10T. The jobs are handled mechanically using forklifts and No Automation is done. All the above hammers are Vertical Movement Machines and the Horizontal Movement machines are 12
called Upsetters. Mostly larger jobs are forged here and it deals with forging of various metals like Stainless Steel, alloy steels, aluminum and titanium. Heating is done by oil fire furnace using low density oil. 5. Die ShopDies are very important tools in manufacturing of many components which are required to be produced in large quantities. A Die is basically a shape engraved on a large metal piece which can be used as a model for production of products of that particular shape. The dies used for forgings are made here. Automatic cutting machine tools like CNC Lathe, HSM (High Speed Machine), EDM (Electron Discharge Machining) etc. are used for production of the required die. The dies are made in 2 types of machines, traditional and imported which are both computerized. A traditional machine operates at 3000 rpm so it is kept open. Imported machines operates in a chamber as the operating speed is 8000- 18000 rpm. One more advantage of imported machines is that they got tool changer and all the tools required for the complete process can be loaded in one go. The design specifications are given by the engineering division. After the final craving of the shape on the metal block is done the process of Nitriding is performed in the Heat Treatment Department. Afterwards it is sent for inspection. Once the validity of the product is confirmed the Die is sent to the Die Storage yard. 6. CDFD Engineering DesigningIs the backbone of any manufacturing unit. It is a very important step in production of any product especially for engineering purpose. The CDFD department is responsible for the designing of any product as per the requirement of the customers. It uses various modern software like Pro-E, CATIA, ANSYS etc. Customers provide the drawings of the job and according to that the dies are design.
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7. Processing linesAfter the forging is done, processing of the products is required so as to increase the value of the job as well as the property. The Processes involved are given below: a. Shot Blasting: A process of rapidly impacting the surface of an object with a controlled stream of abrasive, shot material to prepare the surface to meet specifications. b. Cold Straightening (Padding): To remove bends and to straighten the job. Magnetic Particle Inspection: To remove surface cracks Coining: It is a form of precision stamping in which the job is subjected to a sufficiently high stress to induce plastic flow on the surface of the material but retains toughness and ductility. c. Finishing Shot Peening: to increase fatigue life by bombarding the surface of the part with small spheres of uniform media that induce compressive stresses. d. Visual Inspections: Visual Inspection is done to check the final specification. e. Painting: Dip or Spray There are 3 processing lines at Bharat Forge, namely:a. IQC (Old line): Valve Body (Oil field), Big Connecting Rods, Tubes, CSO (Crank Shaft old) are processed here. Axle Beams are processed here also but the capacity/output comes under that of A2 line. b. A2 Line: The lines here are Axle Beam, Ford line, A2 line small, HHP A2 line, Crank Shaft new, LCV Beam c. FMD3 line: All the jobs forged in FMD3 are processed here.
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8. Heat TreatmentHeat Treatment is a group of industrial and metal working processes used to alter the physical and chemical properties of the material. It changes the properties of the forged part being treated by affecting the size and alignment of the crystalline structure of the elements in the steel or carbon alloy. It involves the following factors: Heating, temperature control, atmosphere control and controlled cooling. Tray time is the time taken of one tray with job to feed from one end and to come out of the furnace at the other end as heat treated. The furnaces used are Bogie Hearth furnaces as well as batch and various continuous furnace lines. Processes employed in Heat Treatment area. Preheating and soaking: Preheating is done in Induction Billet Furnace, Oil-Fire Furnace and LPG furnace. It involves heating the jobs up to a temperature of 727oC to create a solid solution of Iron and carbon which is easily workable. The heating is done until the entire job is at the same temperature. This is known as soaking and the timing depends upon the chemical analysis of the metal and mass of the part. When the parts are non-uniform, the soaking period is determined by the heaviest section. b.
Annealing: Annealing is done to induce ductility, soften material, relieve internal stresses and refine the structure by making it homogeneous by heating till Eutectoid region and maintaining the temperature before cooling.
c. Normalizing: It is done to improve the crystalline structure of the steel. Control Cooling: Hold at a temperature and then cool Quenching: It is done by rapid cooling of the job for increasing the toughness. Various liquid mixtures are used for quenching which include polymer quench ant, polymer & water quench ant and polymer & oil quench ant. d.
Tempering: The quenched job is tempered at 560oC to obtain the requisite mechanical properties. It is accomplished by a controlled reheating of the work piece to a temperature below its lower critical temperature. It is done in LPG furnace. 15
9. MQC (Metallurgical Quality Control)It is involved in raw material injection and clearance. Service failure analysis is done to find out and eradicate the failure and its cause permanently. Metallurgical testing of a job for parameters like hardness, brittleness, ultimate tensile strength etc. is done here. Only if the material is tested successfully for all parameters as per the requirements of the customers, it is given to the customer. 10. MCD I (Machine Component Division I)Machining of the forged jobs is done here to the requisite dimensions and tolerances. It has 11 crankshaft lines. Products are finished using machining processes like rounding, flangside drilling, oil hole drilling, deburring, grinding, turning, facing, centering, chamfering etc. by using CNC’s. 11. MCD II (Machine Component Division II)This division is more modern than MCD I and hence has higher automation. Higher automation results in enhanced fatigue resistance of the product being forged along with improved balancing which is taken care by magnetic particle inspection. MCD 2 compared to MCD 1 handles products of greater dimensions and capacity. There are 6 lines in it of which, 4 are crank shafts line, 1 for Front Axle line and 1 for knuckle line. Machined parts are for 100 % export. 12. HFD I (Heavy Forge Division I)The press was installed in 1985 and the maximum capacity press here is of 1600 T capacity. It has an Open die forging process. The process here is semi-automatic and in this division the heat treatment section is also within it. The jobs mainly forged here are
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valve bodies, front axle for Volvo’s etc. Major clients are Sugar Mills, Cement industry, Aeronautics and other heavy machinery industries like BHEL. 13. HFD II (Heavy Forge Division II)HFD 2 deals with the forging of heavy components. The hydraulic press of 4000 T and manipulator of 35 T is installed in this division. The main purpose of manipulator is to help in holding the work piece and feeding it to the hydraulic press. The orientation and feed movement is controlled by the manipulator. V die is used for forging ingot into cylindrical shape and flat die for forging into rectangular shape. 14. SalesSales division is an important department of the company which deals with the domestic sales. Another department International trade division (ITD) deals with the sales with the overseas companies. Sales department is the starting point for any company as it helps in determining the production and profits for the company. Sales department takes the order from the companies, processes them, decides upon the costing and sets the deal with these companies. Then it sends the details of the order to PPC division for the further processing of the order. 15. SafetyBharat Forge always keeps its employee’s safety as the first priority. The department owns many amenities that are needed for ensuring hazard free working conditions as listed under:
A 24 hour ready ambulance.
Facility of first aid kits, fire extinguisher in all shops.
A rapid action van.
A rapid action motor bike for inaccessible areas.
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Well-equipped dispensary with necessary facilities.
A 24 hour ready fire extinguisher van.
16. MaterialsThe Material department takes care of all the international and domestic purchases. It has broadly six departments, namely
General Purchase – This department deals with transactions within India and is further subdivided into two categories i.e. stock and non- stock.
Imports – This department deals with transactions outside of India.
Steel Purchasing – This department deals with the purchase of steel for the plant from companies such as TATA steel, Kalyani steel etc.
Stores – There are 3 stores - GS 01, GS 02 and GS 04. GS 01 caters to the needs of A2 line, MCD1 and MCD2. GS 02 caters to FMD1and FMD2 and similarly GS04 caters to FMD3.
Excise department – This department deals with excise documentation and duty.
Shipping department- Physical dispatch of goods.
17. FinanceThe department is divided further into sub departments. Those are –
Cash & Bank: It deals with bank and allocation of funds.
Expense: It maintains accounts of miscellaneous expenses travel allowances of employees etc.
Salaries: It calculates the number of days an employee has worked, appropriate payrolls and related activities.
Payables: It maintains accounts of purchases of goods and payments to suppliers.
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Receivables: It does the accounting of sales and maintains account for all customers.
Costing: It deals in inventory valuation, job costing and budget control.
Treasury: It deals with arrangement of finances, working capital and long term investment.
Fixed Assets: It deals in controlling and monitoring various projects and maintains accounts of depreciation.
General Ledger: Coordinate between all sections and maintains Profit Loss accounts, balance sheets and prepares quarterly, half yearly and annual financial reports.
18. MTB (Machine tool building)It focuses on reconditioning of old machines so that we can rebuild a machine at a lower cost. Here old machines are bought and the parts are replaced by world class parts such that we can achieve a machine at a lower cost. The new machines generally cost around 12 crore but the old machines with new parts will come to maximum of 4 to 5 crore thereby cost saving the expenses of the company. Major objectives are cost saving and faster machine availability. Tools commonly used are CNC, PLC, E-plan. 1.7 Material flow in BFL 1. BFL recieves raw material from kalyani steels, hospet, JSW and other sister companies. 2. When the material arrives in BFL it is stored in steel yard, it goes to the metallurgical quality control (MQC) department where the material is tested, hardness testing, microstructure analysis is also done. Investigation and analysis is needed as the properties of the materials must be according to the customers requirement. The materials not up to the mark are sent back to the source from where it came. 3. Once approved by MQC the raw material is sent tfor billet cutting where material is cut into circular or square billets.
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4. Then the material is sent for forging to different shop floors, after forging once again properties are checked by MQC . the materials which are not accepted by the MQC are sent back. 5. Few parts require heat treatment and few are sent directly for processing, as few parts are micro alloyed steel they wont require heat treatment. 6. After processing parts are send to MCD if machining is required while others are directly send for shipment and finally to the customers. 7. All the material which is collected as scrap is send to Kalyani Carpentry.
Fig. 1.5
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1.8 Steps in Forging 1. Cut Billet: A semi-finished‚ cogged‚ hot–rolled‚ or continuous–cast metal product of uniform section‚ usually rectangular with rounded corners. 2. Heating: Heating of the billets in the furnaces up to the forging temperatures. 3. Reducer Roll: A machine situated alongside the forging machine for pre–forming. The operation is carried out by passing the work–piece between contra–rotating shafts‚ which carry appropriately shaped dies. 4. Flattening/Bending if required: A preliminary forging operation to give the piece approximately the correct shape for subsequent forming. 5. Buster (rougher): An impression employed in a die when considerable metal movement is required and which precedes a blocker cavity and a finisher cavity. 6.
Blocker: The forging die impression which gives the forging its general shape‚ but omits any details that might restrict the metal flow; corners are well rounded. The primary purpose of the blocker is to enable the forming of shapes too complex to be finished after the preliminary operations; it also reduces die wear in the finishing impression.
7. Finisher: The die impression that imparts the final shape to a forged part. 8. Trimming: The removal of flash or excess metal from a hot part (such as a forging) in a trimming press. 9. Padding: In case small misalignment may be there in the job, correction or straightening is done here in padding. 10. Controlled Cooling / Heat treatment: A sequence of controlled heating and cooling operations applied to the solid metal to impart desired properties
21
Fig. 1.6
1.9 Products of Bharat Forge The products of Bharat Forge can be classified into two types: 1.9.1
Closed die forgings
Crankshaft Axle beam
Steering Knuckle
Connecting Rod
Rocker Arm
Transmission Parts
Hubs
Oil & Gas segment 22
Fig. 1.7
Fig. 1.8 23
1.9.2
Open Die Forging
The open die forging division of Bharat Forge manufactures products for the following sectors:
Sugar Industry
Cement Industry
Steel Plants
Gear manufacturing and Material Handling
Mining
Shipbuilding
Fan and Pump
Petroleum and Petrochemical
Tools and Plastic Injection Moulding
Forging Industry
Seamless tube Industry
24
Fig. 1.9
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2. LITERATURE REVIEW 2.1 Production planning and control PPC department is a very crucial and critical department in every industry since this department decides upon how the production would be carried out. It takes the demand plan from the Sales department and based upon the requirement, it decides upon the production plan. It coordinates with the materials department for the inventory availability. PPC after designing the production plan also keeps check or monitors whether the whole plan is followed properly or not. 2.1.1
Principle of production planning and control
“The highest efficiency in production is obtained by manufacturing the required quantity of product, of the required quality, at the required time by the best and cheapest method”- PPC is a tool to coordinate all manufacturing activities in a production system. Production planning and control essentially consists of planning production in a manufacturing organization before actual production activities start and exercising control activities to ensure that the planned production is realized in terms of quality, quantity, delivery schedule and cost of production. Objective of a production planning is to provide a physical system together with a set of operating guidelines for efficient conversion of raw materials, human skills and other inputs into finished products.
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2.1.2
Functions of PPC
Fig. 2.1 2.1.3
Planning in BFL Analysis of Strategic Business Plans and setting of goals and objectives in consultation
with the management.
Analysis of customer demand, both internal and external.
Analysis of forging WIP with respect to customer demand.
Preparation of four monthly production plan, and conversion into monthly, weekly and daily shift-wise schedules.
Coordination of new product development.
Preparation Shipment plans. 27
Synchronization of MCD production requirements with forge division’s plans.
Preparation of daily dispatch and receipt plan in coordination with processing shops.
2.1.4
Controlling in BFL
Coordination of inputs like dies and raw material to achieve production plans.
Work order processing.
Control over the issue of cut material to OFD.
Coordination with shipping department for delivery of forgings to customer
Coordination of feeding forgings to MCD
Disposition and accounting of scrap
Sub-contracting activities like selection and assessment of sub-contractors.
Review quarterly / monthly performance against goals and objectives.
2.1.5
Objectives of PPC
Optimum utilization of capacity
Inventory control
Economy in production time
Ensure quality
Effective utilization of resources
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Co-ordinates activities of departments
2.1.6
Process carried out by PPC in BFL
Following is the various processes followed by PPC department:1. Received the Sales Demand After receiving the Sales demand from Sales Department, 4 month Production Plan is prepared by 2nd or 3rd of month say (Jan, Feb, Mar, April). First 2 month’s plan is fixed and last 2 are tentative. Then Monthly Production & Shipment are scheduled after that and then the Week wise breakup is done every week. To calculate how much to produced, they take into account the WIP available from previous schedules and added up 3- 3.5% of the amount to be produced as the scrap allowance and consider the opening stock of the previous month. Jobs are identified by the Die No. 2. Identify where to produce They identify the presses which are underutilized and give the new work to them and also take into account the blow force that will be required and the productivity of the press. 3. When to produce PPC department considers the following parameters while deciding when to produce i)
When the customers want the product.
ii)
Lead time
iii)
Batch Size
iv)
Processing Lines requirement.
29
Fig. 2.2 2.1.7
Co- ordination of PPC with other Department
PPC department is a department which require to co-ordinate closely with all the other departments. It works on various data given by other departments and it needs other departments to perform their work properly in order to fulfill the production plan timely and correctly. It is indeed the backbone of the company. PPC co-ordinates with-
30
1. QualityQuality department informs PPC department about the number of accepted and rejected materials.
Inspection department provides immediate feedback on rejected quantity and quality of items that is reworkable.
Quality control department must give feedback about quality of incoming raw material immediately. If incoming raw material is poor, immediate feedback avoids further processing on defective raw materials.
Errors in dimension observed by shop inspection must be communicated to PPC immediately.
Fig. 2.3
31
2. ITD
ITD consults PPC regarding the deliveries, when is it possible so that they can convey it to the customers.
ITD department gives the demand to the PPC department given by the international customer’s.
If the delivery cannot be made within time then PPC informs ITD department.
3. SalesPPC department acts as important link between sales department and production department.
Sales department consults PPC department regarding quotation prices and deliveries.
Information regarding customer orders must be passes to PPC department for further action.
PPC provides status of production to sales department.
PPC reports sales department when delivery promises can not be met within schedules.
4. Materials
PPC department informs the materials department about how much material will be required in the future.
PPC plans and controls the flow of material.
PPC has to coordinate with the material department to know how much the inventory is.
32
5. Die shop
PPC informs the die shop that how many dies are required per month and their specification.
PPC requires the information about dies like die run size, die life etc during planning.
New die development information is given to the die shop by the PPC according to customer’s requirement.
6. MCDIn machine component division machining of different components is done.
PPC department sends parts for machining to MCD 1 and MCD 2.
Machining of auto components is done in MCD 1, and machining of crankshaft is done only in MCD 2.
MCD department coveys to PPC about how many parts are machined and ready for shipping and how many parts are needed to be processed again or what is the rejection rate.
2.2 Capacity planning Capacity in general is the maximum production rate of a facility or a firm. It is usually expressed in volume of output per period of time. Capacity indicates ability of a firm to meet customers demand. Operations manager are concerned with capacity because:
They want sufficient capacity to meet the customers demand in time.
Capacity affects cost efficiency of operations, the ease or difficulty of scheduling output and the cost of maintaining the capacity.
Capacity requires an investment of capital. .
33
2.2.1
Introduction to capacity planning
Capacity planning is the process of projecting future capacity needs based on current company use and industry trends. It is the process of determining the production capacity needed by an organization to meet changing demands for its products. A discrepancy between the capacity of an organization and the demands of its customers results in inefficiency, either in under-utilized resources or unfulfilled customers. The goal of capacity planning is to minimize this discrepancy. Capacity can be increased through introducing new techniques, equipment and materials, increasing the number of workers or machines, increasing the number of shifts, or acquiring additional production facilities. 2.2.2
Need of the project
Capacity planning is the first step when an organisation decided to produce more or a new product. Once capacity is evaluated and a need for a new epanded facility is determined, facility locations and process technology activities occur. Too much capacity would require exploring ways to reduce capacity, such as temporarily closing, selling or consolidating facilities. Consolidation might involve relocation, a combination of technologies, or a rearrangement of equipment and processes
Capacity planning is done to estimate whether the demand is higher than capacity or lower than capacity. That is compare demand verses capacity.
It helps an organisation to identify and plan the actions necessary to meet customers present and future demand.
.
34
Fig. 2.4 When we observe the trend of previous years, the demand of different groups is exceeding the available capacity. There is a need to continuously manage the capacity so that the demand matches the capacity Based on the demand fluctuations, we have to keep revising our capacities and try to make it leveled. If we have excess capacity, the underutilization of the resource is wastage and if the demand exceeds the capacity, we may lose our valuable customers as we will not be able to supply the required demands in time. Either way, it is a loss to us. So, it is very important on how to manage our capacity level and if we have to increase it, in what way we have to do it. Capacity requirement can be evaluated from two extreme perspectives-short term and long term.
35
a. Short term requirementsManagers often use forecast of product demand to estimate the short term work load the facility must handle. By looking ahead up to 12 months, mangers anticipate output requirements for different products or services. Then they compare requirements with existing capacity and detect when capacity adjustments are needed. b. Long term requirementLong term capacity requirement are more difficult to determine because future demand and technologies are uncertain. Forecasting 5 or ten years into the future is a risky and difficult task. What products or services will the firm are producing then? today’s product may not even exist in the future. Obviously long term capacity requirements are dependent on marketing plans, product development and the life cycles of the products. Changing in process technology must also be anticipated. Even if producers remain unchanged, the method for generating them may change dramatically. Capacity planning must involve forecast of technology as well as product. 2.2.3
Capacity decisions
Major considerations in capacity decisions are: 1. What size of plant? How much capacity to install? 2. When capacity is needed? When to phase-in capacity or phase-out capacity? 3. At what cost? How to budget for cost? Capacity decisions are important to all departments of the organization; an accountant would be interested in collecting cost accounting information in order to ensure that correct capacity expansion decision is reached. Similarly a financial manager would be interested in performing the financial analysis of whether the investment decision is justified for a plant or capacity increase. An Information Technology Manager would end up preparing data bases that would aid the organization to decide about the capacity and last but not the least an operations manager would select strategies that would help 36
the organization achieve the optimum capacity levels to meet the customer demand. Capacity decisions are important because they impact
Ability to meet future demands
Affects operating costs
Major determinant of initial costs
Involves long-term commitment
Affects competitiveness
Affects ease of management
Globalization adds complexity
Impacts long range planning
The figure below depicts the hierarchy of capacity planning decisions that can be made within a planning and control environment. These range from long-term capacity decisions down to shortterm shop floor monitoring and control tasks:
Planning resource capacities over long time horizons.
The rough-cut evaluation of capacity required by the master production schedule.
Detailed capacity requirements of a particular production schedule.
The use of finite loading procedures.
The simulation of the use of alternate capacity plans.
Monitoring actual outputs versus plan
37
Fig. 2.5 The source of the loading data changes as you move down this hierarchy. While resource planning takes its capacity requirements from the business plan, rough-cut capacity planning uses the master production schedule as the source of its information. Capacity requirements planning and the remainder of these shorter-term planning modules take their loading data from the Material Requirements Planning output.
38
2.2.4
Factors affecting capacity planning
Product & Services factors: Type of product/services to be provided
Process: The manufacturing process Availability of Facilities: State of technology & communications
Human factors: Skill & quality of workers
Supply factor: Timely & assured supply of inputs
External factors: Investors & government policies
2.3 Prime area: PZS group PZS group is the group of presses where forging of high tonnage jobs are done. Few examples are crankshaft, axle beam, connecting rods of heavy commercial vehicles etc. currently we have 5 presses in this group, they are PZS 1, PZS 2 each having blow capacities of 16000 Tf and two TMP’s with 12500 Tf and 8000Tf, and one wedge press with 10000 Tf. If we consider the quantity, Mts, and Rml of 2014-2015-
QTY PZS Group
1278491
Total
8609332
%
Mts
%
Rml
100354.48 14.8 %
170891.70
%
4556.46 58.7 %
8304.89
54.86 %
Table no. 2.1 Quantity wise PZS group constitute about 14.8 % of the total quantity, metric ton wise it constitutes about 58.7 % and Rml wise it constitute about 54.86 % of the total.
39
2.3.1
Important parameters of presses and hammers i) Weight rangeii) Available capacity (No./month) iii) Average cycle time of jobs (sec) iv) Set up time required (hrs.)
PZS presses
Weight
Available
Avg.
cycle Setup
range (kg)
capacity
time
(nos/month)
different
time OEE
of required (hrs.)
jobs(sec) PZS 1
53-310
25000-26000
50
1.5
65%
PZS 2
60-160
30000
53
1.25
66%
TMP 8000
36-90
30000
38
2
58%
TMP 12500
50-100
30000-32000
38
2
65%
TWP 10000
35-89
22000
40
2
55%
Table no. 2.2 From the table, we can conclude that the year wise capacities of the PZS group presses are PZS I capacity: 312000/ year PZS II capacity: 360000 / year TMP 12500 capacity: 360000/ year TMP 8000 capacity: 384000/ year TWP 10000 capacity: 264000 / year So Total Capacity of PZS group: 1680000/ year
40
3. DEMAND EVALUATION 3.1 Forecasting Forecasting is the process of making statements about events whose actual outcomes (typically) have not yet been observed. It is the use of historic data to determine the direction of future trends. Forecasting is used by companies to determine how to allocate their budgets for an upcoming period of time. The firm must plan for the future. Planning for the future involves forecasting. No businessman can afford to ignore forecasting if he wants to thrive and prosper in his business. The firm has to forecast the future level of demand for its product under different possible circumstances; such as prices, competition, promotional activities and general economic activity. Similarly forecasting will be necessary with reference to costs under changing conditions of availability of raw materials and their respective prices, changing technology, wage rates, labour training and capital acquisition programs. Forecasting does play a key role in managerial decisions and hence forecasting is emphasized in the study of managerial economics. The objective of business forecasting is to minimize risk and the margin of uncertainty in business 3.1.1
Forecasting methods
There are, as such, two approaches to demand forecasting. First is to obtain information about the intentions of the spenders through collecting experts' opinion or by conducting interviews with the consumers. Second is to use past experience as the guide and using or projecting the past statistical relationships to obtain the expected level of future demand. The first method is also considered to be qualitative and is mostly used for short-term forecasting; whereas the second method is quantitative and is used for long-term forecasting. We can forecast the demand for existing product by using any one or even mix of the above methods, but to forecast demand for new product we have to use survey method only because the new product has no past or historical data to offer.
41
Fig. 3.1 a.
Qualitative
Qualitative forecasting techniques are subjective, based on the opinion and judgment of consumers, experts; appropriate when past data is not available. It is usually applied to
intermediate-long range decisions. Examples of qualitative forecasting methods are: informed opinion and judgment, the Delphi method etc. b. Quantitative Quantitative forecasting models are used to estimate future demands as a function of past data; appropriate when past data are available. The method is usually applied to short-intermediate range decisions. Examples of quantitative forecasting methods are: simple and weighted moving averages, simple exponential smoothing, smoothing with seasonal index, least square method (Trend).
Forecasting the demand
We have currently the demand of 3 years i.e. 2012-13, 2013-14 and 2014-15. By using the data, we can forecast the demand of year 2015-16. If we get the forecast of the demand, then we will have some knowledge on what pattern it is increasing and demand of which part or dies will 42
increase more. According to that we can work on our strategy on how to increase our capacity facility. We are using the Least Square method of forecasting.
Reason for using Trend or Least square method of forecasting
Forecasting methods are divided into quantitative and qualitative methods. In qualitative method, experience in the field is required and is done by experts only. Among the quantitative methods, least square method suited us the best as it requires a historical data which we have. And we can use it to forecast future trends for up to 4-5 periods when we have data of 12 periods while other method forecast for just 1 period only.
Working Procedure of Least Square Method
It is the best method to determine trend. Here we try to draw a straight line through the given data satisfying maximum points on the graph. But slope of he line is sure to vary from analyst to analyst because of judgment. Regression analysis is the mathematical method of obtaining the “best fit of line relationship” between a dependent variable and a single independent variable.
Let y be demand (dependent variable) and x period for certain commodity (independent variable). Then the linear relationship between y and x is given by : Y=a+bx----- (1) The value of constants ‘a’ and ‘b’ are obtained from following two equations: ∑y=na+b∑x----- (2) ∑xy=a∑x+b∑x.x------ (3) Where, A=constant whose value equals y intercept (i.e. height of the line from original) or y=a where x=0. B=slope of trend line. Positive value of b indicates upward slope i.e. growth of business and negative value indicates negative slope. n=number of observations.
43
Use following steps to determine ‘a’ and ‘b’ i) Find time deviation (x) from certain period for each period and then find out sum of time deviation (∑x). ii) Square each time deviation and ad all squared values to get ∑x.x. iii) Multiply time deviation of each period (x) with corresponding actual sales for the period (y) and then add all figures to get ∑xy. iv) Calculate values of ‘a’ and ‘b’ from following method. At ∑x=0, equation (2) and (3) will become ∑y=na--- (4) ∑xy=b∑x.x---- (5) The above two equations can be arranged as: a=∑y / n, b=∑xy /∑x.x For example we have the following data,
Month
Product of x and y
Deviation of period
Square of
from (x) April
deviation x*x
Jan.
-3
9
-1,32,977
Feb.
-2
4
-89,340
Mar.
-1
1
-48,670
Apr.
0
0
0
May.
1
1
47,670
44
i.e. x*y
Jun.
2
4
1,11.460
Jul.
3
9
1,64,904
=7
∑x=0
∑x.x=28
∑xy=53043
Table no. 3.1 a=∑y / n = 3, 41,827 / 7 =48,832 b=∑xy / ∑x.x =53,043 / 28 =1894 y=48,832+1894x……. (A) Trend values: Month
x
Trend of y
Jan.
-3
43,150
Feb.
-2
45,044
Mar.
-1
46,938
Apr.
0
48,832
May.
1
50,726
Jun.
2
52,620
Jul.
3
54,514
Table no. 3.2
45
3.2 Demand pattern 3.2.1
Customer wise
There are around 110 different customers in total from all the groups. Below are few of the customers with their demand pattern who come under PZS group. Here we have studied the demand of different customers, by doing this we will know who our regular customer is and who is ordering from us on regular bases, and whose demand is increasing.
Table no. 3.3
46
CUSTOMER WISE 7000 0 6000 0 AL(ENNOR
5000 0
E) KOEL
Qt y 4000
ESSEN SPARES
0
3000 0 2000 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012-2013
2013-2014
2014-2015
1000 0 0
Graph No. 3.1
By this graph we can see that AL(ENCORE) has the highest demand in comparison to others, so we can provide better customer satisfaction to them so that they continue using BFL products. 3.2.2
Part wise
There are around 36 different parts in total, we have listed few parts that are forged under PZS group of presses. By studying this demand pattern we can understand which part has the highest demand and higher increasing trend.
Table no. 3.4 47
PART WISE 2500 00
2000 00
F. A BEAM HCV CRANKSHAFT 6
1500 00
THROW CON ROD NORMAL
Qt y 1000
F. A BEAM MCV CRANKSHAFT 4 THROW
00
5000 0
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 2012-2013
2013-2014
2014-2015
0
Graph No. 3.2 By the graph we can conclude that F.A beam has the highest demand of all with variation in demand pattern, and crankshaft 4 throw has a continuously increasing demand pattern. 3.2.3
Group wise
Here we have considered 5 groups of presses, to study their demand pattern.
Table no. 3.5
48
7000 00 6000 00 PZS
5000 00
Group
de m an 4000 00 d
LKM 2500 PSH Gr Kurimot
3000 00
o LKM 4000
2000 00
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012-2013
1000 00
2013-2014
2014-2015
0
Graph No. 3.3
From the graph we can see that PZS group has the highest demand compared to others. Therefore we should focus more on PZS group and try to meet the customer’s requirement. 3.3 Forecasting for PZS group As seen in the earlier graph PZS group has the highest demand, we have forecasted demand for PZS using trend line forecasting.
Table no. 3.6
49
PZS GROUP 4000 00
y = 8383.3x + 273897
3500 00 3000 00
PZS GROUP
Qt y 2500 00
Linear (PZS GROUP)
2000 00 1500 00
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1000 00
2013-2014
2014-2015
2015-2016
5000 0 0
Graph No. 3.4
This method gives us the equation of the linear forecast trend line, by which we can calculate the succeeding years demand. In the above graph the best fit line shows that the demand is continuously increasing.
50
4. CAPACITY PLANNING IN BFL 4.1 Estimate future capacity requirement In BFL the sales department gives customer requirement for the next year through the business plan, according to which the strategic plan is made by the PPC department. 4.1.1
Quarterly business plan
The PPC department receives the demand for the next year from the sales department.
They then compile all the data, then they prepare quarterly business plan according to the demand.
They study the capacity of presses and designate different jobs to different presses.
The plan tells about how much quantity to be forged in which quarter, on which press, and on which die number.
This is a forecasting method by which the PPC department can estimate the demand and decides about the capacity planning.
51
Table No. 4.1
The above figure shows the unit sap codes which are used while preparing business plan.
In BFL the presses are divided into different groups, each group has presses with different capacities.
Business plan for the year of 2014-2015 is given below.
52
53
This sheet shows the requirement given by the sales department for the year of 20152016, 2016-2017, on the basis of which business plan will be prepared by the PPC department.
Table No. 4.3 4.1.2
Four monthly production plan PPC prepares a four monthly plan on the basis of schedule provided by the sales department.
This four monthly plan is prepared every month as the demand may vary or there may be an excess or limited production.
First 2 months plan is fixed and last 2 month is tentative.
54
55
4.2 Evaluate existing capacity and identify gaps Design capacity = 3600*24*30 / average cycle time Presses under PZS group
Capacity / month
PZS 1
52897
PZS 2
48000
WEDGE PRESS
66461
12500 TMP
68210
8000 TMP
64800
TOTAL = 52897+48000+66461+64800 = 300368 / month =3604416 / year Effective capacity = 1680000/ year 4.2.1
Monthly capacity planning of PZS group to study gap
On the basis of demand details monthly capacity planning is done.
PPC decides how much quantity to be forged on which die number.
Then this information is given to the shop floor where cycle time, up time, number of setups is calculated.
After actual production, the difference between the required production and actual production is calculated which gives excess/short fall.
Utilization of the press is calculated and measures are taken to improve the utilization.
56
Capacity planning should be done in such a way that the maximum forging capacity of the presses should be utilized.
a. PZS 2Expected vs achieved production:
PZS 2
JAN.
FEB.
MAR.
APR.
MAY
EXPECTED
23775
24405
20985
26270
26245
ACHIEVED
26239
24585
23208
24786
24812
VARIANCE
2464
180
2223
-1484
-1433
Table no. 4.5 PZS 2 has a negative variance in the month of april and march, From the month of april we are not able to meet the expected plan, as the down time has suddenly increases in april and may.
30000 25000 20000 EXPECT
Qt ED 15000 y ACHIEVED 10000 5000 0 JAN.
FEB.
MAR.
Graph No. 4.1
APR.
MAY
57
JAN.
FEB.
MAR.
APR.
MAY
SET-UP
23
29
23
28
28
CY. TIME
56
57
57
56
57
DOWN TIME
368
386
330
408
412
TRIALS
1
2
1
-
-
UTILISATION
52 %
63 %
49 %
61 %
63 %
Table no. 4.6
b. Wedge pressExpected vs. achieved production:
WEDGE
JAN.
FEB.
MAR.
APR.
MAY
EXPECTED
13425
21500
18360
21865
22410
ACHIEVED
15753
17683
16736
14650
19371
VARIANCE
2328
-3817
-1624
-7215
-3039
PRESS
Table no. 4.7
58
25000
20000
15000
Qt y ED 10000
EXPECT
ACHIEVED
5000
0 JAN.
FEB.
MAR.
APR.
MAY
Graph No. 4.2 In January we have achieved the expected plan, after that there is a huge gap between expected and achieved production. The down time is increasing after January, it is also considered to have only one trial per month but we can see there are 2, 3 trails in February, March, April which may have led to reduction in the production. JAN.
FEB.
MAR.
APR.
MAY
SET-UP
13
20
23
23
21
CY. TIME
38
37
39
38
41
DOWN TIME
141
220
201
232
254
TRIALS
1
2
3
2
1
UTILISATION
63 %
60 %
50 %
59 %
31 %
Table no. 4.8 The utilization of the equipment is also less in February; march, April and May as compared to January. During these months there may be lots of holidays, or the press may be shut down for
maintenance purpose. 59
c.
PZS 1
Expected vs achieved production:
PZS 1
JAN.
FEB.
MAR.
APR.
MAY
EXPECTED
25250
26150
29450
25320
16900
ACHIEVED
29150
18519
25239
24536
16961
VARIANCE
3900
-7631
-4211
-784
61
Table no. 4.9
35000 30000 25000
Qt y
20000 EXPECTED 15000
ACHIEVED
10000 5000 0 JAN.
FEB.
MAR.
APR.
MAY
Graph No. 4.3 In the month of Feb. the press is not able to achieve expected plan, the no. of setups, cycle time, and up time has increased in February leading to reduction in forging. PZS 1 press had a planned shutdown of 45 days leading to reduction in production.
60
FEB.
MAR.
APR.
MAY
SET-UP
26
31
25
15
CYCLE TIME
48
52
49
48
DOWN TIME
348.2
428
345.76
223
TRIALS
-
-
-
-
UTILISATION
58 %
63 %
52 %
64 %
Table no. 4.10
d. TMP 12500:
Expected vs. achieved production:
TMP 12500
JAN.
FEB.
MAR.
APR.
MAY
EXPECTED
22920
27190
25445
26275
30490
ACHIEVED
29490
26608
23762
26312
20589
VARIANCE
6570
-582
-1683
37
-9901
Table no. 4.11
61
35000 30000 25000 20000 EXPECTED
Qt y 15000
ACHIEVED
10000 5000 0 JAN.
FEB.
MAR.
APR.
MAY
Graph No. 4.4 In the month of march there is a huge variance in the expected and achieved production, this may be due to the no. of setups in march is more as compared to other months, the down time has also increased from February to march and also the machine utilization has reduced in the month of march leading to less production.
FEB.
MAR.
APR.
SET-UP
7
26
26
CYCLE TIME
41.32
38.83
42.06
DOWN TIME
87.22
285
286
TRIALS
-
-
-
UTILISATION
60.57 %
47.5 %
58.81 %
Table no. 4.12
62
e. 8000 TMP
Expected vs. achieved production:
8000 TMP
JAN.
FEB.
MAR.
APR.
MAY
EXPECTED
21920
21400
22660
25585
28915
ACHIEVED
20003
21858
23721
16521
21901
VARIANCE
-1917
458
1061
9064
-7014
Table no. 4.13
35000 30000 25000 20000 EXPECTED
Qt y 15000
ACHIEVED
10000 5000 0 JAN.
FEB.
MAR.
APR.
MAY
Graph No. 4.5 In the graph we can see that achieved production is more than the expected plan in the month of February, after February the variance is negative and we are not able to attain expected production. During the month of February the utilization of press is high while in March and 63
April it has reduced. The down time, cycle time and number of setups have also increased after Feb. leading to reduction in production.
FEB.
MAR.
APR.
SET-UP
7
19
20
CYCLE TIME
42
43
43
DOWN TIME
96.94
270.14
292.47
TRIALS
-
-
-
UTILISATION
67 %
47 %
51 %
Table no. 4.14
4.2.2
Effective Capacity vs. demand for Quarter 4 for 2013-2014 PZS PRESSES
CAPACITY
DEMAND
PZS 1
82008
105534
PZS 2
53162
63856
WEDGE PRESS
70069
76681
12500 TMP
69421
42139
8000 TMP
87996
58174
Table no. 4.15
64
120000 100000 80000 60000
CAPACITY
DEMAN
D 40000 20000 0 PZS 1 2
PZS
WEDGE 12500 TMP 8000 TMP PRESS
Graph No. 4.6
Here we can see that at PZS, PZS 2 and wedge press the demand is more than the effective capacity whereas at 12500 TMP and 8000 TMP the capacity is more than the demand.
Future planning should be done in such a way that the increasing demand should be met and the presses having higher capacity should be utilized in best possible way.
4.3 Planning for future 1. Balancing capacity and demand:
If there is an imbalance in the demand and the capacity in the short term then it can be tackled by temporary measures / adjustments such as increasing / decreasing the labour force or creating and carrying inventory in the lean period to be used up in the peak
demand period.
65
If there is an imbalance in the long term demand and the capacity then an organization can respond by changing / modifying the capacity. 1) If capacity is short term then it can create a new facility or expand existing facility. 2) If there is excess capacity then it can temporarily close / sell / consolidate facilities. Consolidation can be done by relocation rearrangement of equipment’s.
2. Maintaining capacity cushion: It is the amount of the WIP that a firm maintains to handle sudden increase in demand or temporary losses of production capacity. It is usually needed when there is uneven demand, changing product mix, uncertain demand, and uncertain supply. 3. Ways of increasing effective capacity:
Proper process quality control so that there are less defective items requiring rework.
Proper facility location, layout, and internal working conditions.
Good training, high motivation, less absenteeism and high turnover on part of workers.
By making products and services as uniform as possible in design so that numbers of setups required are less.
Good coordination with suppliers for timely and defect-free supplies and proper scheduling of products on machines.
By properly following the environmental and pollution norms, which results in lesser inspections by government enforcement agencies and, thus, lesser disruption of production activities.
66
4. Reducing the number of setups:
Planning in such a way that the numbers of setups required are minimum. While planning the monthly production the die run size should be taken into consideration.
While selecting a certain die, one should see what the die run size is and what our requirement is.
If the requirement is less that the run size then we should completely utilize the die till it gets run out so that the excess forged parts can be kept in WIP and can be utilized in future.
As changing the setups takes huge amount of time so we should try and keep the use of different number of dies limited but the production requirement should not be compromised.
5. Diversion of load:
When there is heavy load on a certain press this load can be transferred to some other press which has the capacity to forge those products.
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5. DATA ANALYSIS AND INTERPRETATION 5.1 OEE Analysis We know that Capacity = (time available / cycle time)* OEE So in order to increase capacity, we have to either
Reduce the cycle time
Increase the OEE
1. Availability = available time/scheduled time 2. Performance = ideal cycle time/(operating time/total pieces) 3. Quality = good pieces/total pieces 4. OEE = availability *performance*quality
Calculation of OEE1. PZS 1-
PARAMETER
JAN
FEB
MAR
APR
RUN-HOURS
720
672
742.7
720
BREAKS / PLANNED SHUTDOWN
82.65
186.57
102.62
100.74
EFFECTIVE RUN HOURS
637.35
485.43
640.08
619.26
DOWN-TIME
239.7
212.13
248.82
236.73
DIES (Hrs.)
88.13
69.15
72.59
77.58
DIES %
13.83
14.25
11.34
12.53
OPER (Hrs.)
87.24
65.79
93.11
83.84
OPER %
13.69
13.55
14.55
13.54
EQPT (Hrs.)
57.61
32.46
61.93
50.07
EQPT %
9.04
6.69
9.68
8.09
GENERAL (Hrs.)
6.72
44.73
21.19
25.24
68
GENERAL %
1.05
9.22
3.31
4.08
UPTIME AT ACTUAL CYCLE TIME
397.65
273.3
391.26
382.53
EQUIPMENT AVAILABILITY
62.39
56.3
61.13
61.77
TOTAL PRODUCTION
29,150.00
18,519.00
25,239.00
24,536.00
OK PRODUCTION
27,824.00
17,687.00
22,360.00
23,427.00
NOT OK PRODUCTION
1,326.00
832
2,879.00
1,109.00
QUALITY RATE
95.45
95.51
88.59
95.48
ACTUAL CYCLE TIME
49.11
53.13
55.81
56.13
PLANNED CYCLE TIME
54.38
57.91
59.29
61.21
PERFORMANCE EFFICIENCY
110.74
108.99
106.23
109.06
65.95 Table no. 5.1
58.61
57.53
64.32
OVER ALL EQPT EFFECTIVENESS
2. PZS 2-
PARAMETER RUN-HOURS BREAKS / PLANNED SHUTDOWN EFFECTIVE RUN HOURS DOWN-TIME DIES (Hrs.) DIES % OPER (Hrs.) OPER % EQPT (Hrs.) EQPT % GENERAL (Hrs.) GENERAL % UPTIME AT ACTUAL CYCLE EQUIPMENT AVAILABILITY TOTAL PRODUCTION OK PRODUCTION NOT OK PRODUCTION QUALITY RATE
JAN 718.67
FEB 655.16
MAR 697.5
APR 686
MAY 696
40.62
64.68
126.84
29.52
65.48
678.05 590.48 278.04 228.21 132.68 91.37 19.57 15.47 85.36 67.87 12.59 11.49 57.87 47.54 8.54 8.05 2.13 21.43 0.31 3.63 400.01 362.27 58.99 61.35 26,239.00 24,585.0 25,450.00 23,879.0 789 706 96.99 97.13 69
570.66 656.48 630.52 221.17 269.81 248.49 85.6 114.29 100.17 15 17.41 15.89 62.86 84.17 81.49 11.02 12.82 12.92 51.05 60.36 55.66 8.95 9.19 8.83 21.66 10.99 11.17 3.8 1.67 1.77 349.49 386.67 382.03 61.24 58.9 60.59 23,208.0 24,786.0 24,812.0 20,295.0 24,006.0 24,022.00 2,913.00 780 790 87.45 96.85 96.82
ACTUAL CYCLE TIME
54.88
53.05
54.21
56.16
55.43
PLANNED CYCLE TIME PERFORMANCE EFFICIENCY OEE
55.34 53.8 100.84 101.41 57.7 60.43 Table no. 5.2
55.17 101.76 54.5
56.23 100.12 57.12
55.84 100.74 59.09
3. TMP 8000-
PARAMETER
JAN
FEB
MAR
APR
MAY
RUN-HOURS BREAKS PLANNEDSHUTDOWN EFFECTIVE RUN HOURS
645
545
634
583
559
157.09
107.67
133.2
180.64
44.82
487.91
437.33
500.8
402.36
514.18
DOWN-TIME
260.64
186.73
227.15
219.59
262.91
DIES (Hrs.)
54.06
45.46
58.3
37.16
40.98
DIES %
11.08
10.4
11.64
9.24
7.97
OPER (Hrs.)
42.65
43.25
42.08
30.11
48.52
OPER %
8.74
9.89
8.4
7.48
9.44
EQPT (Hrs.)
123.37
62.71
89.06
117.1
121.05
EQPT %
25.29
14.34
17.78
29.1
23.54
GENERAL (Hrs.)
40.56
35.31
37.71
35.22
52.36
GENERAL %
8.31
8.07
7.53
8.75
10.18
UPTIME AT ACTUAL CYCLE
227.27
250.6
273.65
182.77
251.27
EQUIPMENT AVAILABILITY
46.58
57.3
54.64
45.42
48.87
TOTAL PRODUCTION
20,003
21,858
23,721
16,521
21,901
/
OK PRODUCTION
18,847.00 21,373.00 21,526.00 15,407.00
NOT OK PRODUCTION
1,156.00
485
2,195.00
1,114.00
560
QUALITY RATE
94.22
97.78
90.75
93.26
97.44
ACTUAL CYCLE TIME
40.9
41.27
41.53
39.83
41.3
PLANNED CYCLE TIME
40.9
41.3
41.51
39.82
41.26
PERFORMANCE EFFICIENCY
100
100.07
99.96
100
99.89
43.89 56.07 Table no. 5.3
49.57
42.36
47.57
OEE
70
21,341
4. TMP 12500-
PARAMETER
JAN
FEB
MAR
APR
MAY
RUN-HOURS
645
583
648
590
566
72.78
80.28
143.04
36.31
46.12
EFFECTIVE RUN HOURS
572.22
502.72
504.96
553.69
519.88
DOWN-TIME
258.51
208.23
246.19
255.25
289.44
DIES (Hrs.)
85.65
75.86
75.9
85.19
69.86
DIES %
14.97
15.09
15.03
15.39
13.44
OPER (Hrs.)
75.17
67.88
78.29
101.44
72.29
OPER %
13.14
13.5
15.5
18.32
13.91
EQPT (Hrs.)
61.38
28.9
79.08
47.65
98.15
EQPT %
10.73
5.75
15.66
8.61
18.88
GENERAL (Hrs.)
36.31
35.59
12.92
20.97
49.14
GENERAL % UPTIME AT ACTUAL CYCLE TIME
6.35
7.08
2.56
3.79
9.45
313.71
294.49
258.77
298.44
230.44
54.82
58.58
51.25
53.9
44.33
TOTAL PRODUCTION
29,490.00
26,608
23,762
26,312
20,589
OK PRODUCTION
28,686.00
25,958
22,742
25,625
19,899.00
804
650
1,020.00
687
690
QUALITY RATE
97.27
97.56
95.71
97.39
96.65
ACTUAL CYCLE TIME
38.3
39.84
39.2
40.83
40.29
PLANNED CYCLE TIME
38.52
39.84
39.2
40.82
40.2
PERFORMANCE EFFICIENCY
100.58
99.99
100
99.98
99.78
OEE
53.64 57.14 Table no. 5.4
49.05
52.48
42.75
BREAKS / SHUTDOWN
PLANNED
EQUIPMENT AVAILABILITY
NOT OK PRODUCTION
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5. Wedge pressPARAMETER
JAN
FEB
MAR
APR
MAY
RUN-HOURS
529
387.5
435.5
407
496.5
BREAKS / PLANNED SHUTDOWN EFFECTIVE RUN HOURS
217.21
74.84
93.94
77.31
49.73
311.79
312.66
341.56
329.69
446.73
DOWN-TIME
151.47
153.19
169.62
178.86
233.07
DIES (Hrs.)
53.55
33.77
35.5
53.25
77.04
DIES %
17.18
10.8
10.39
16.15
17.24
OPER (Hrs.)
52.36
38
43.51
41.66
81.71
OPER %
16.79
12.15
12.71
12.64
18.29
EQPT (Hrs.)
32.77
26.58
26.3
24.21
31.17
EQPT %
10.51
8.5
7.7
7.34
6.98
GENERAL (Hrs.)
12.79
54.84
64.31
59.74
43.15
4.1
17.54
18.83
18.12
9.66
160.32
159.47
171.94
150.83
213.7
51.42
51
50.34
45.75
47.83
1,15,753.0 0 15,317.00
17,683.0 0 17,302
16,736.0 0 16,149
14,650.0 0 14,046
19,373.0 0 18,555
436
381
587.00
604
818
QUALITY RATE
97.23
97.85
96.49
95.88
95.78
ACTUAL CYCLE TIME
36.64
32.47
36.99
37.06
39.71
PLANNED CYCLE TIME
34.58
33.25
35.01
35.26
39.49
PERFORMANCE EFFICIENCY
94.39
102.41
94.65
95.13
99.11
OEE
47.19
51.11
45.98
41.73
46.07
GENERAL % UPTIME AT ACTUAL CYCLE TIME EQUIPMENT AVAILABILITY TOTAL PRODUCTION OK PRODUCTION NOT OK PRODUCTION
Table No. 5.5
At BFL among the three factors availability has a huge scope of improving. Available time = scheduled time – down time So, if we reduce the downtime the available time increases and hence the OEE. 72
One of the main factors affecting OEE is availability; availability can be increased by reducing the downtime. Mainly there are 4 types of downtime they are due to:
Operation
Dies
Equipment
General Few of the reasons for downtime on PZS 2 are-
I.
Downtime due to operations include
Setup
Mismatch correction Heat symbol changes II.
Downtime due to dies include
Die grinding
Adjustments
Insert not available, Insert change.
Padding dies grinding / welding
Butting block crack / budge / change
Die crack matching
Pad shift correction
PZS dies sent to die shop for correction
Die crack matching / land drop
Job sticking.
Backup dies not available.
III.
Downtime due to equipment include
PZS lower cassette not clamping
PZS ram not moving up/down
F/C waiting for soaking.
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PZS lubrication countdown.
F/C 3rd zone temperature not increasing
IV.
Downtime due to general
Planned shutdown.
Scale pit problem
Trial production.
S/D - Descaler Leakage.
S/D - Furnace.
Reduce roll trials
Back up dies not available
5.2 Pareto chart for major downtimes We can use pareto analysis to identify the top portion of causes that need to be addressed to resolve the majority of problems, the idea that by doing 20% of the work you can generate 80% of the benefit of doing the entire job. If we take PZS 2 press line and study all the reasons for downtime, for the month of January, February, march, April and May. In PZS 2 the major downtime occurs due to dies and then operations. 1. Due to operation downtime-
Sr. No.
Reasons
Frequency Cumulative Percentage Frequency
1
Setup Actual
74
74
61
2
Heat Symbol Changes
22
96
79
3
Mismatch Correction
18
114
94
4
Double loading
2
116
95
5
Quality Checking
2
118
97
6
Dropout reprocessing
2
120
99
74
7
PZS bottom cassette not
1
121
100
declamping Total
121 Table no. 5.6
120 100 80 60 40 20
Series1
0
Series2
Graph No. 5.1
Here we can see that setup actual and heat symbol changes are close to 80 % therefore these two reasons should be addressed first.
PZS 2 has automated setup change mechanism, so downtime cannot be reduced over there. But we can utilize the die until it wears out i.e. we can forge parts on that die until the die run size is attained.
If the plan is short for this month for e.g. Die no. 3768- plan is 600 parts but the run size is 1500 then we should forge 1500 parts at a time so that the rest could be used in the next month and be kept as WIP. This will reduce the time required for die change.
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2. Due to dies –
Sr. No.
Reasons
Frequency Cumulative
Percentage
Frequency 1
PZS die grinding
34
34
48
2
Correction
10
44
62
3
Die crack matching
7
51
72
4
Butting block crack/change/
5
56
80
bulge 5
Insert not available
4
60
85
6
padding dies grinding
4
64
91
7
Insert change
3
67
95
8
Blow holes weld / repair
3
70
100
Total
70 Table no. 5.7
120 100 80 60 40 20 Frequenc y Percenta ge 0
Graph No. 5.2 76
Here we can see that PZS die grinding, corrections, die crack matching and butting block crack should be targeted first and planning should be done for these so that in future downtime due to these reasons reduce.
To reduce the downtime for die grinding the dies nitriding should be done on the dies before loading on the press.
If the die is nitrided then it works without grinding for around 1000 pieces, whereas if the die is not nitride it has to be grinded after 150-200 pieces.
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6. SUGGESTIONS We have seen that the demand has been increasing and mostly the demand of parts which are generally forged in presses of PZS group is increasing. So, we have to focus on how we can increase the Capacity of the group. For increasing the current capacity utilization, we have to look into 2 things-Cycle time and OEE. Among the OEE factors, Availability is the most important one in BFL. To increase the Availability, we have to reduce the downtime of machine. Also to increase capacity, we have to try and decrease our cycle time. We can decrease the cycle time by:
Continuous improvement of the way to do various operations.
Continuous implementation of 5S.
Changes in the production line.
Installation of more efficient supporting machines.
Downtime occurs mainly due to Die failure, Die wear, Oil Leakage, Mismatch etc. This can be checked by
Using better quality die materials.
Better design of dies.
Regular preventive maintenance of the machines.
We have prepared a checklist table for the preventive maintenance which can be done daily or at the start of every shift. As we know Preventive Maintenance is much better than Breakdown maintenance and is cost effective also, we should dedicate some time for the inspections every day before the start of each shift.
78
5.1 Checklist of the Preventive maintenance
Sl.
Check list item
Remarks
No. 1
Check hydraulic lines and fitting for leaks.
2
Check the oil level and if necessary top it off.
3
Ensure oil cleanliness.
4
Check the oil temperature.
5
Check for loose bolts around the tooling area and fasten it.
6
Check lubrication on guided platens.
7
Check the ram whether it is moist but not dripping oil.
8
Check for wear and tear in the die.
9
Check for cracks in the die.
10
Check all lights and alarms for proper functioning.
11
Inspect all safety covers and connections.
12
Record press data. Table no. 6.1 5.2 Adjustment to capacity 1. Increase capacity by: As the demand is increasing and we are not able to meet the needs of the customer due to less capacity, therefore we can increase the capacity by:
Adding extra shifts.
Scheduling overtime or weekends.
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Adding equipment and/or personnel.
2. Reduce load by: Sometimes, there is a huge load on a certain press line but that press line may not be capable of handling that load so we can:
Reducing lot sizes.
Holding work in production control.
Subcontracting work to outside suppliers.
3. Reduce capacity by: In few cases like TMP 8000 and 12500 where the capacity is more than demand here we can adjust capacity by:
Temporarily reassigning staff.
Reducing the number of shifts.
Eliminating shifts.
4. Increase load by: The presses like TMP 8000 and TMP 12500 which are having more capacity but the load given is less, we can utilize the capacity by:
Releasing orders early.
Increasing lot sizes.
Making items normally outsourced.
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5.3 Capacity planning strategies There are mainly 3 capacity planning strategies: 1. Lead strategy is adding capacity in anticipation of an increase in demand. It is an aggressive strategy and used to lure customers away from competitors. The possible disadvantage is that it is often results in excess inventory, which is costly and often wasteful.
Fig.6.1 2. Lag strategy is a conservative strategy; here capacity is increased after demand has increased. It decreases the risk of wastage but may result in loss of customer. 3. Match strategy is adding capacity in small amounts in response to changing demand in the market. It is also known as tracking strategy. Suggested strategy- I would suggest match strategy as it will not affect the company if a sector suffers global downturn.
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7. REFERENCES 1. www.bharatforge .com 2. www.oee.com 3. www.forging.org 4. www.teamquest.com 5. Handbook of Industrial Engineering: Technology and Operations Management, Third Edition 6. www.slideshare.net/aarish9696/capacity-planning 7. www.wikipedia.org/wiki/Capacity_planning
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