Summer internship project

Carried out in JSW

Special Thanks To
Mr. Manoj Kumar Jha (costing manager) Mr. Nitin Tekade (HR Head) Mr. Sanjay Swami( ppc incharge) Mr. Rahgunath Dhumal( S.P.T) Mr. Pravin naulakiya(techn.)

Introduction
Company name : JSW Project Topic : optimization of production cycle time for the product GI, GL, PPGI, PPGL. Under the guidance of Mr. Manoj kumar Jha.

Steel industry profile

100 years old 6th largest producer of iron ore in world Capacity (124 ml tonnes 2012 < 275 ml tonnes 2020 ). Capital investment 100000 cr. Employment for 2 million people.

About JSW
Founder 1952 1982 - vasind plant 1983 - Tarapur plant 1994 - Vijaynagar plant Investment Products

important break troughs

Indias only fully integrated stainless steel
plant Indias only integrated private sector galvanized steel producer Indias only diameter submerged Arc welded steel pipes World standard sponge iron Indias only integrated green-field steel project.

COLOR COATING PRODUCTION PROCESS

SLITTING PICKLING ROLLING GALVANSING COLOUR COATING

Production cycle
1 2 3 4 5 6
Sale order received from marketing dept. analysis of order order ganerated in oracle software order sign by production/QC dept. spec release ( technical specification)

H.R processing

G.L. finishing

dispatch

Expected time required for each stage

Expected time required for each process
receiving orders, 1 day receiving orders order ganerating spec release H.R processing G. L. finishing dispatch order ganerating , 1 day

dispatch, 1 day G. L. finishing, 1 day H.R processing, 2 day spec release, 1 day

Total days required for production ( appx.) = 7 days.

ANALYSIS OF DATA
PROCESS(including all) Sales Order Received Order Generated In Oracle Software Spec released. Slitting Pickling Rolling Galvanizing Colour Coating Dispatch STANDERD TIME -----1 day 1 day 1 day day day day day

Order no. 5024 Volume :- 100 tones

ACTUAL DATE 25th April 2011 25th April 2011 26th April 2011 20th may 2011 21th may 2011 23rd may 2011 31st may 2011 31st may 2011 2nd june 2011

Order no. 5024

Cost saving after optimization production time.

Processing stage Cost at the stage Slitting 35000 Rolling 38000 Galvanizing 50000 Colour coating 58000 Dispatch 60000 Total Time lag in process 24 days. 1 days 5 days Calculation 35000*10%*24/365 38000*10%*1/365 50000*10%*5/365 90000*10%*0/365 95000*10%*0/365 Amount 230.13 1.12 68.49 0 0 309.74

Cost saving for whole order = 309.74*150 = 30974 rs

All orders in brief

Order no. 5024 5049 5065 5074 5030 Total. Standard time 7 days 12-15 days 11 days 7-9 days 10-11 days Actual time 37 days 27 days 13 days 17 days 38 days volume 100 tonnes 624 tonnes 175 tonnes 155 tonnes 150 tonnes 1204 tonnes
Cost saving /tonne

Total Cost saving 30974 rs 68377 rs 7192 rs 10616 rs 46461 rs 163162 rs

309.74 rs 109.58 rs. 41.095 rs 68.49 rs 309.74

Yearly production = 500000 tonnes. tonnes.

Approximately saving per year = 163162 * 500000 / 1204 = 6,77,58,305 rs

Recommendation.
Company can reduce scrap collecting time. i.e. 20-30 min by 5-10 min. By reducing fault in machineries by way of maintenance and repairs of machineries from time to time. The inventory should transfer to the next process without halt. The firm must use J-I-T inventory control tenchnique in production to minimize production process time. The technical specification(spec) should not be lated. Their must appropriate link exist between all department include marketing, PPC, costing.

 THANK U