Professional Documents
Culture Documents
FAG Done My
FAG Done My
HI-TECH PLASTIC
UNDERTAKEN TOWARDS THE PARTIAL FULFILLMENT OF MBA PROGRAMME
PREPARED BY: SHWETA GODHANI (11039) RUSHANK PATEL (11033) PARTH TRIVEDI (11025) KEYUR VARDE (11019)
G H PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT SARDAR PATEL UNIVERSITY, VALLABH VIDHYANAGAR (2011 -2013)
PREFACE
As a part of the course curriculum, the second semester MBA students are required to prepare a project report on the production and operations of one large scale and one small scale company. The objective behind preparing this project report is to relate the management subjects taught in the classroom to their practical application and to get insight into practical situation. The group decided to select FAG Bearings India Limited as a large scale company and undertook the study on the production and operation functions of the company. The group has prepared this project report on the basis of the information gathered during the visit to the company and from the website of the company. This project is prepared for the academic purpose and inspite of our best efforts there may be some errors, which may please be excused.
ACKNOWLEDGEMENT
Through this acknowledgement, we express our sincere gratitude towards all those people who have contributed directly or indirectly in preparation of this project report, which has been a great learning experience for all of us. We would like to thank Dr. H.J. Jani, the head of the Department of GHPIBM, Prof. K. Sai. Prasad, faculty of HRM, O.B., S.M., GHPIBM, Mrs. Jagruti Sharma, Executive HR of FAG Bearings India Limited, Mr. J.P. Nair, executive of Training and Development of FAG Bearings India Limited and the librarian of GHPIBM library for their support and for giving us the opportunity to accomplish such a task that has enriched our knowledge.
INDEX
SR. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
TITLE INTRODUCTION TO THE COMPANY ORGANISATION CHART PLANT LOCATION OF THE COMPANY PLANT LAYOUT OF THE COMPANY PLANT CAPACITY OF THE COMPANY MATERIALS REQUIREMENTS PRODUCTION PROCESS FINAL PRODUCTS OF THE COMPANY PURCHASE MANAGEMENT MATERIAILS HANDLING EQUIPMENTS INVENTORY MANAGEMENT MAINTENANCE OF THE MACHINERIES STORES MANAGEMENT (WAREHOUSING) QUALITY MANGEMENT SAFETY OF THE EMPLOYEES ENVIRONMENTAL CONCERN AND WASTE DISPOSAL BIBLIOGRAPHY HI-TEC PLASTIC ( SMALL SCALE FIRM )
PAGE NO. 4 5 6 7 9 10 11 14 17 18 19 20 21 22 24 25 27 28
Brief History
In 1962, it was incorporated as Precision Bearings India Limited. In 1986, the company name changed to FAG Precision Bearings Limited. In 1993, it became first Indian Bearing Company to achieve ISO 9001 certification. In 1997, EOU Project for Cylindrical roller bearings inaugurated. In 1998, it became first Indian Bearing Company to achieve QS 9000 certification. In 2000, set up India's first production facilities to produce hub bearings. In 2001, Launched Joint Venture company FAG Roller Bearings Private Limited to manufacture taper roller bearings.
2. ORGANISATIONAL CHART
M SAR
PURCHASING PW MHASKAR
INTERNAL AUDIT
Plant Location
Plant location is the process of determining a geographical site for a firms operations achieving maximum operating economy and effectiveness.
Types of Layout
Process Layout or Functional Layout or Job Shop Layout Product Layout or Line Processing Layout or Flow-Line Layout Fixed Position Layout Cellular Manufacturing Layout Hybrid Layout
FAG Bearings India Limited follows process layout which involves a grouping together of similar machines in one department. A quantity of raw material is issued to machines which performs the first operation. The machine may be situated anywhere in the factory. For the next operation, a different machine may be required, which may be situated in another part of the factory. The material should be transported to the other machine for the operation .Thus, material would move long distances along crisscrossing path. At one stage, material would be taken to a separate building, say, for a heat treatment, and then brought back for grinding. If machines in one department are engaged, the party finished product awaiting operations may be taken to the store and later reissued for production. Partly finished good would be waiting for processing in every department.
Production capacity
The production capacity of a facility or a firm is the maximum rate of production the facility or the firm is capable of producing. It is usually expressed as volume of output per period of time (i.e. hour, day, week, month, quarter, and year).
6. MATERIALS REQUIREMENTS
Material
Materials are any commodity used directly or indirectly in producing a product or service such as raw materials, component parts, assemblies and supplies. In manufacturing organizations, the important inputs are referred to as 5 Ms viz. Men, Machines, Money, Materials, and Methods. Material is an important and inevitable input of a production system since the cost of materials and cost on materials (cost incurred in purchasing and storing the materials) put together account for 50 to 85% of the production cost depending on the nature of the product and the type of the production system. FAG Bearings India Limited uses following material in the producing bearings. Races Balls Rollers Retainers Cages Seal and Shield Oil and grease Stainless Steel
The company purchases all these materials from the domestic suppliers (90%) as well as foreign suppliers (10%). The company is also purchasing the raw materials from the group of companies.
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7. PRODUCTION PROCESS
Production
Production implies the creation of goods and services to satisfy human needs. It involves conversion of inputs (resources) into output (products). It is a process by which, raw materials and other inputs are converted into finished goods. The utilities or added value is the difference between the value of outputs and the value of inputs. The addition to inputs is brought about by alteration, transportation, storage or preservation and quality assurance A process converts inputs into outputs in a production system.
Types of Processes
Conversion Process - Converting raw material into finished products. The conversion
processes could be metallurgical or chemical or manufacturing or construct ring processes. Manufacturing Process Processes can be categorized into (1) Forming Process, (2) Machining Process and (3) Assembly Process Testing Processes Involves inspection and testing of products.
FAG Bearings India Limited follows the assembly process which involves assembly of bearings.
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RINGS
BALLS
RETAINERS
Z- GROOVING TUMBLING
HEAT TREATEMENT FLUE GAS TO ATMOSPHERE THROUGH STACKS (OFFLOADED) GRINDING USED COOLANT/OIL GRINDING DUST TO SECURED LAND FILL HONING TO ETP (ETP SOLID WASTE TO SECURED LAND FILL) HONING DUST TO SECURED LAND FILL
BEARING ASSEMBLY
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RINGS
ROLLERS
HEAT TREATEMENT
FLUE GAS TO ATMOSPHERE GRINDING GRINDING USED COOLANT/OIL GRINDING DUST TO SECURED LAND FILL HONING TO ETP (ETP SOLID WASTE TO SECURED LAND FILL) HONING DUST TO SECURED LAND FILL BEARING ASSEMBLY
LAPPING COOLANT
HONING
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9. PURCHASE MANAGEMENT
Purchasing
Purchasing refers to the function of procuring of materials, supplies, machines, equipments, tools, spare parts and services required for meeting the needs of production department and maintenance department. It is a managerial activity involving planning and policy formulation, research and development, strategies required for the proper selection of materials and sources of supply, negotiating with supplies for the best price terms, placing purchase order, follow-up to ensure timely delivery, co-coordinating with other departments viz. receiving, inwards inspection, stores and accounting (bills payable section). FAG Bearings India Limited has centralized purchase department which responsible for overall requirements of the all the departments of the company. The need for purchase in any department is specified trough purchase requisition form which includes in detail description of the need. Then it is to be sent to the purchase department. In order that FAG Bearings India Limited is supplied the best quality material, the company follows a very stringent three-stage process for approval of any steel supplier. The same includes: Product approval (Both by FAG Bearings India Limited and FAG-Germany). Quality system approval (By FAG Bearings India Limited). Process approval (Jointly by FAG Bearings India Limited and FAG-Germany).
After successful approval of the above, the supplier should also be in `A' (Very good) category in terms of both the vendor quality and delivery rating evaluation done by FAG every three months.
Hence, FAG Bearings India Limited requires that any material supplied to it be strictly in accordance with FAG Bearings India Limited guidelines. The company makes payment partly as advance and partly after receiving the order from the supplier.
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Materials Handling
Materials handling is the art and science involving the moving, packaging, and storing of substance in any form. In any industrial process, the product being manufactured passes through various phases and it needs to be transported from place to place. This could involve processes such as transporting of raw material to the machines and then shifting the machines from one station to another station and finally to the store or warehouse. This involves the use of material handling equipment. Material handling system does not contribute directly to the product value, but it adds to the cost of the product and is therefore sometimes is referred to as a necessary evil. In fact, least handling is the best handling.
FAG Bearings India Limited uses the following material handling equipments in its operations: Roller Conveyors Fork Lift Trucks for internal movement of materials. Band Truck for internal movement of materials Trucks for the transportation of raw materials into the company and of finished goods into the market.
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FAG Bearings India Limited believes that only by engaging in continuous process and product oriented innovation, the company will succeed in the future. Therefore, to improve its position in the bearing industry, where the competition is stiff, FAG implemented Continuous Improvement Process (CIP), popularly known as CIP-culture. CIP is a concept based on a continuous self-sustaining, learning and improvement process. The CIP supports FAG on its course to becoming a high performance organization and ensures that the best practices are implemented in all areas of operations. CIP makes FAG quicker and flexible. With CIP program, FAG can recognize target deviations even more quickly and take immediate counter measures. The company launched the program "CIP for Production" in 1998, giving each of the employees the freedom to think and try new ideas. In addition, the company launched the program "CIP for Sales" and "CIP for Service" in 1999 and 2000 respectively. After only two years, CIP has become a firm part of its corporate culture. FAG also uses Total Processing Management (TPM) for maintenance purposes. It has checks over its machineries once in a week usually Thursday for maintenance purposes.
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Receiving and storing are important flow control activities in the material management chain. In industries, materials have to be stocked to meet the consumption requirements during the lead time due to delays by suppliers or due to unexpected increase in the consumption rate.
Ware housing
Ware housing is not the simple act of storing materials, but rather a package of services which enables the smooth flow of materials through the production departments without causing stoppage of production due to shortage of materials.
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Quality is an important dimension of production and operations management. It is not enough to produce goods or services in the right quantity and at the right time; it is important to ensure that the goods and services produced are of the right quality. The consumer of the final product of a company needs a certain quantity of products of a quality appropriate ho his needs.
Quality
Quality is the performance of the product as per the commitment made by the producers to the customer.
Quality Systems
It is defined as the collective plans, activities and events that are provided to ensure that a product, process or service will satisfy given needs. Quality is a requirement at FAG and the basis for its work. The result is high quality of its products and services and the trust its customers, employees and suppliers place in it. It major focus is on zero defects company. FAG Bearings India Limited is an ISO/TS 16949 2002 certified. It has also ISO 90012000 an ISO 14001-2004 certificates.
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Tremendous technological developments have taken place, are taking place and will take place in all fields of engineering. Health hazards due to air pollution, noise and contagious diseases are ever increasing in industrial environments and accidents in workplace during the course of work are causing partial or total disability to workers and sometimes even death of workers. Hence, the importance of industrial safety and prevention of accidents and health hazards is quite for production/operation managers. Health and safety are the basic need of workers.
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Operations function has contributed very significantly to environment damage. So it should also take responsibility for it and act to rectify the damage done and prevent any future damage.
Effective Work Safety and Environmental Management FAG actively uses a global work safety and environmental management system that is undergoing continuous improvement. The company elaborates forward-looking concepts that it implement in collaboration with its contractual partners. The company carries out regular checks across all areas to determine the extent to which these measures have been implemented and to monitor the success of its management system.
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17. BIBLIOGRAPHY
Chary S. N., Production and Operation Management, McGraw-Hill Companies, New Delhi, 4th Edition, 2010. Bhat K Shridhara, Production and Operation Management, Himalaya Publishing House, Mumbai, 1st Edition, 2003. Gaither Norman and Frazier Greg, Operation Management, Thomson Asia Pte Ltd. Singapore, 2nd Edition, 2002. www.fag.co.in Annual Report of FAG for the year 2010.
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Small scale industries have been playing a pivotal role in countrys overall economic growth, and have achieved steady progress over the last couple of years. From the perspective of industrial development in India, and hence the growth of the overall economy, SSIs have to play a prominent role, given that their labour intensiveness generates employment. The SSI segment also plays a major role in developing countries such as India in an effort to alleviate poverty and propel sustainable growth. They also lead to an equitable distribution of income due to the nature of business. Moreover, SSIs in countries such as India help in efficient allocation of resources by implementing labour intensive production processes, given the abundant supply of labour in these countries, wherein capital is scarce. SSIs are contributing towards the increase in employment in India, next to agriculture. The food products industry generates the maximum employment. Also chemical and chemical products, machinery parts, wood products, basic metal industries, paper products and printing, hosiery and garments are contributing towards employment. Small industry sector has performed exceedingly well and enabled our country to achieve a wide measure of industrial growth and diversification. By its less capital intensive and high labour absorption nature, SSI sector has made significant contributions to employment generation and also to rural industrialization. This sector is ideally suited to build on the strengths of our traditional skills and knowledge, by infusion of technologies, capital and innovative marketing practices. The opportunities in the small scale sector are enormous as they are less capital intensive, are promoted and supported by the Government and a number of subsidies are available.
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INDEX
SR NO. 1 2 3 4 5 6 7 8 9
TITLE INTRODUCTION TO THE COMPANY PLANT LOCATION MATERIALS REQUIREMENT PRODUCTION PROCESS FINAL PRODUCTS OF THE COMPANY MATERIALS HANDLING STORES MANAGEMENT MAINTENANCE AND SAFETY BIBLIOGRAPHY
PAGE NO. 30 31 32 33 36 37 38 38 39
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1. INTRODUCTION TO COMPANY
The firm was established in the year 1982 by Dilip Dalal. He started production of Plastic bags and the annual turnover of first year was 4-5 lacs. He also started producing plastic injection moulded items a few years later. He started his production with 4 workers in 1982. The total unit area of the firm is about 5000 sq.ft. AMUL is their major customer, as they supply plastic lids & plastic spoons to them. They started their firm with 1 machine which is now grown to a massive of 14 machines. As the requirement of AMUL increases Hi-tech plastic need to expand their machines. As the demand of AMUL increase demand for the production also increases simultaneously leads to the growth of this company. Recently they are having a total of 70 employees, out of which there are 22 workers and others as the technical staff. Their recent turnover is 3.5-4 crore per annum. It is an ISO 9001:2008 company.
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2. PLANT LOCATION
Location of the company:
Ranoli Village, Nr. High School, Vadodara, Gujarat - 391350 The company is spread over 5000 sq.ft. of land.
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3. MATERIAL REQUIREMENTS
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4. PRODUCTION PROCESS
Injection molding is a manufacturing process for producing parts from both thermoplastic and thermosetting plastic materials. Material is fed into a heated barrel, mixed, and forced into a mold cavity where it cools and hardens to the configuration of the mold cavity. After a product is designed, usually by an industrial designer or an engineer, molds are made by a mold maker (or toolmaker) from metal, usually either steel or aluminum, and precision-machined to form the features of the desired part. Injection molding is widely used for manufacturing a variety of parts, from the smallest component to entire body panels of required product. Injection molding is used to create many things such as wire spools, packaging, bottle caps, automotive dashboards, pocket combs, and most other plastic products available today. Injection molding is the most common method of part manufacturing. It is ideal for producing high volumes of the same object. Some advantages of injection molding are high production rates, repeatable high tolerances, and the ability to use a wide range of materials, low labour cost, minimal scrap losses, and little need to finish parts after molding. Some disadvantages of this process are expensive equipment investment, potentially high running costs, and the need to design moldable parts. Injection molding machines consist of a material hopper, an injection ram or screw-type plunger, and a heating unit. They are also known as presses, they hold the molds in which the components are shaped. Presses are rated by tonnage, which expresses the amount of clamping force that the machine can exert. This force keeps the mold closed during the injection process. Tonnage can vary from less than 5 tons to 6000 tons, with the higher figures used in comparatively few manufacturing operations. The total clamp force needed is determined by the projected area of the part being molded. This projected area is multiplied by a clamp force of from 2 to 8 tons for each square inch of the projected areas. As a rule of thumb, 4 or 5tons/inch2 can be used for most products. If the plastic material is very stiff, it will require more injection pressure to fill the mold, thus more clamp tonnage to hold the mold closed. The required force can also be determined by the material used and the size of the part, larger parts require higher clamping force. The machine used for the production in Hi-Tech Plastic is Fully Automatic Screw type machine. A hopper is there which is completely filled with plastic granules of poly propylene or poly styrene for the production of spoons while high density polyethylene or low density polyethylene for the production of lids. Granules are allowed to flow through the heater where they are converted to a semi-liquid form by the heat provided by the heater. There are dies also known as molds which are prepared to form different shapes of spoons and lids as per the requirement of the customer. Mold or die are the common terms used to describe the tooling used to produce plastic parts in molding.
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Traditionally, molds have been expensive to manufacture. They were usually only used in mass production where thousands of parts were being produced. Molds are typically constructed from hardened steel, pre-hardened steel, aluminum, and/or beryllium-copper alloy. The choice of material to build a mold from is primarily one of economics, steel molds generally cost more to construct, but their longer lifespan will offset the higher initial cost over a higher number of parts made before wearing out. Pre-hardened steel molds are less wear resistant and are used for lower volume requirements or larger components. Aluminum molds can cost substantially less, and when designed and machined with modern computerized equipment, can be economical for molding tens or even hundreds of thousands of parts. Beryllium copper is used in areas of the mold which require fast heat removal or areas that see the most shear heat generated. The molds can be manufactured by either CNC machining or by using Electrical Discharge Machining processes. The mold consists of two primary components, the injection mold (A plate) and the ejector mold (B plate). Plastic resin enters the mold through a sprue in the injection mold; the sprue bushing is to seal tightly against the nozzle of the injection barrel of the molding machine and to allow molten plastic to flow from the barrel into the mold, also known as cavity. The sprue bushing directs the molten plastic to the cavity images through channels that are machined into the faces of the A and B plates. These channels allow plastic to run along them, so they are referred to as runners. The molten plastic flows through the runner and enters one or more specialized gates and into the cavity geometry to form the desired part. The amount of resin required to fill the sprue, runner and cavities of a mold is a shot. Trapped air in the mold can escape through air vents that are ground into the parting line of the mold. If the trapped air is not allowed to escape, it is compressed by the pressure of the incoming material and is squeezed into the corners of the cavity, where it prevents filling and causes other defects as well. The air can become so compressed that it ignites and burns the surrounding plastic material. To allow for removal of the molded part from the mold, the mold features must
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not overhang one another in the direction that the mold opens, unless parts of the mold are designed to move from between such overhangs when the mold opens (utilizing components called Lifters). Sides of the part that appear parallel with the direction of draw (The axis of the cored position (hole) or insert is parallel to the up and down movement of the mold as it opens and closes) are typically angled slightly with (draft) to ease release of the part from the mold. Insufficient draft can cause deformation or damage. The draft required for mold release is primarily dependent on the depth of the cavity: the deeper the cavity, the more draft necessary. Shrinkage must also be taken into account when determining the draft required. If the skin is too thin, then the molded part will tend to shrink onto the cores that form them while cooling, and cling to those cores or part may warp, twist, blister or crack when the cavity is pulled away. The mold is usually designed so that the molded part reliably remains on the ejector (B) side of the mold when it opens, and draws the runner and the sprue out of the (A) side along with the parts. The part then falls freely when ejected from the (B) side. The molded part is cut (by the mold) from the runner system on ejection from the mold. Ejector pins, also known as knockout pin, is a circular pin placed in either half of the mold (usually the ejector half) which pushes the finished molded product, or runner system out of a mold. The standard method of cooling is passing a coolant (usually water) through a series of holes drilled through the mold plates and connected by hoses to form a continuous pathway. The coolant absorbs heat from the mold (which has absorbed heat from the hot plastic) and keeps the mold at a proper temperature to solidify the plastic at the most efficient rate. In a single die 20 to 30 units of spoon can be produced in 10 seconds whereas 8 units of lids are produced in 1 minute. After producing 10 lakh units the die is to be changed so as to get a proper product without any defect.
Packing Procedure
The die is designed such that 20 spoons can be produced at a time and for lids 1000 to 2000 numbers can be produced together in a sound polythene bags. These units are produced as a runner in the die and produced in series. After this each unit is broken to get the final spoon or lid. As per the requirement of AMUL, the company makes bundles of these units. AMUL require 12 spoons in a bundle. Packing standards are such that these bundles are packed in 2.5 kg polythene bags. Such four polythene bags of 2.5 kg are packed together in one corrugated box weighing 10 kg.
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6. MATERIALS HANDLING
Materials Handling
Materials handling is the art and science involving the moving, packaging, and storing of substance in any form. In any industrial process, the product being manufactured passes through various phases and it needs to be transported from place to place. This could involve processes such as transporting of raw material to the machines and then shifting the machines from one station to another station and finally to the store or warehouse. This involves the use of material handling equipment. Material handling system does not contribute directly to the product value, but it adds to the cost of the product and is therefore sometimes is referred to as a necessary evil. In fact, least handling is the best handling. It is a small firm so handling of the material is not a big problem. And also movement of materials is less.
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7. STORES
Raw materials are easily available in the local market. Even imported raw material can be available. But storing the purchased material is essential. If sufficient quantity of raw material is stored in the firm any increase in demand can be fulfilled. Amul is the major customer of HiTech Plastic so their requirements are always known to the firm. So this firm stores material which can fulfills their customer requirement. And the firm need not to keep large stock as the demand for its product is not fluctuating.
Maintaining safety is the prior concern of this firm. The firm provides free medical facilities to all its employees. Some of its equipments are old so it requires periodic maintenance for its proper functioning and to avoid breakdowns and accidents. The company follows scheduled maintenance for maintaining its machines and equipments. The company has 14 machines and they are lubricated and
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9.
BIBLIOGRAPHY
S. N. CHARY; production and operation management; 4th edition; The McGraw Hill companies www.asiancerc.com
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