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INDUSTRIAL TRAINING REPORT

An Organizational study of Inder Industries & Analysis of the production process and the manufacturing cycle time of a product Under the guidance of

PALLAVI MADAM
Submitted By T PRADEEP KUMAR (Regd No: 511032560) PRABHAKAR SINGH (Regd No: 511036106) In partial fulfilment of the requirement for the award of the degree Of MBA IN OPERATIONS MANAGEMENT

November-2011
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ACKNOWLEDGEMENT

The satiation and euphoric that accompany the successful completion of task would be incomplete without the mention of the people who made it possible. So with immense gratitude I acknowledge all those whose guidance and encouragement crowned my efforts with success. I would like to thank Pallavi Madam Sikkam Manipal Univesity, for providing the support to do this study. I sincerely thank Inder Industries top management for giving me the good opportunity to do this study. I express my sincere gratitude to Mr. Sanjay Kumar Chatrath, Director (Technical) of Inder Industries for extending his valuable time and giving me all the required information for the successful completion of this project work. With deep sense of gratitude and indebtedness I sincerely thank Prof. Lt Col (Retd) L Shri Harsha my project guide for giving me valuable suggestions and advice throughout the execution of the project. I would like to thank all the faculty members of Sikkam Manipal University and the entire Inder Industries family. Last but not the least I would like to thank my parents, friends without whose co-operation this project wouldn t have possible.

Thanking Everyone.

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BONAFIDE CERTIFICATE

Certified that this project report titled An Organizational study of Inder Industries & Analysis of the production process and the manufacturing cycle time of a product is the Bonafide work of T.PRADEEP KUMAR, PRABHAKAR SINGH supervision. who carried out of the project work under my

SIGNATURE HEAD OF THE DEPARTMENT OPERATIONS MANGEMENT

SIGNATURE FACULTY IN CHARGE OPERATIONS MANAGEMENT

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EXECUTIVE SUMMARY Analysis of the production process and the manufacturing cycle time of a product Manufacturing industry particularly Tools industry nature and details has been explained in the introductory chapter and can be easily understood from it. Hence by understanding the industry, need and importance of the good production process can be understood. It is the production process that defines the company and the products of the company. A company with a good production process will always be at the forefront of the industry. So for knowing about the health of the company or for estimating about the future condition of the company, its production process and production related activities needs to be analysed. In this project the production process of a product has been analysed. The product is having a high demand in the market but the production is not up to mark. On analysing the production process the problem has been easily identified and removed. In the project in addition with the analysis of the production process, a method or way for reducing the cycle time has also been explained. By properly utilizing the resources the cycle time can be reduced. By using the same concept and utilizing a higher efficiency machine at the correct place the cycle time of a product is reduced by 11%. So by making small changes the cycle time can be easily reduced and hence the productivity of a production process will surely improve.

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TABLE OF CONTENTS

S.No. EXECUTIVE SUMMARY 1 1.1 1.2 1.3 1.4 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3 3.1 3.2 3.3 3.4 3.5 3.6 INDUSTRY PROFILE MANUFACTURING INDUSTRY

TOPICS

Page No. 4 10 11 13 17 25 30 31 32 34 34 36 44 45 51 52 52 52 52 53 54

INDIA S MANUFACTURING SECTOR DETAILS TOOLS INDUSTRY HAND TOOL INDUSTRY COMPANY PROFILE INTRODUCTION AWARDS AND CERTIFICATION ORGANIZATIONAL CHART DEPARTMENTAL DETAILS PRODUCT DETAILS MAJOR COMPETITORS SWOT ANALYSIS RESEARCH DESIGN STATEMENT OF THE PROBLEM TITLE OF THE PROJECT OBJECTIVES SCOPE OPERATIONAL DEFINITIONS RESEARCH METHODOLOGY

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4 5 5.1 5.2

DATA ANALYSIS FINDINGS,CONCLUSIONS AND SUGGESTIONS FINDINGS & SUGGESTIONS CONCLUSIONS MY LEARNINGS BIBLIOGRAPHY

57 87 88 89 90 92

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LIST OF TABLES

Table No. 1 2

PARTICULARS Table Showing mean processing time for manufacturing of Chaser Table Showing number of machines/tools used for manufacturing of Chaser. Table Showing Different Service and Arrival rates during the manufacturing of Chaser Table Showing the Utilization factors for different processes during the manufacturing of Chaser Table showing the Waiting times for different processes during the

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60

61

manufacturing of Chaser Table Showing mean processing time for manufacturing of Handle Table showing number of machines/tools used for manufacturing of Handle Table Showing Different Service and Arrival rates during the manufacturing of

63

6 7

64-65 65

Handle Table Showing the Utilization factors for different processes during the

66

manufacturing of Handle Table Showing the Waiting times for different processes during the manufacturing of Handle

66

10

67

11 12 13

Table Showing mean processing time for manufacturing of Body Table showing number of machines/tools used for manufacturing of Body Table showing Different Service and Arrival rates during the manufacturing of

69 70 70-71

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Body Table Showing Utilization factors for different processes during the manufacturing process of Body and showing bottleneck condition Table showing number of machines/tools used for manufacturing of Body after 15 removing bottleneck Table showing Different Service and Arrival rates during the manufacturing of 16 Body after removing bottleneck Table Showing Utilization factors for different processes during the manufacturing process of Body after removing bottleneck Table Showing the Waiting times for different processes during the manufacturing of Body after removing bottleneck Table Showing mean processing time for manufacturing of Body by alternate 19 method Table showing number of machines/tools used for manufacturing of Body by alternate method Table showing Different Service and Arrival rates during the manufacturing of Body by alternate method Table Showing Utilization factors for different processes during the manufacturing process of Body by alternate method Table Showing the Waiting times for different processes during the 23 manufacturing of Body by alternate method 84-85 82 75 74-75

14

71

17

76

18

77

20

82

21

83

22

84

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LIST OF FIGURES

Chart No. 1 2 3

PARTICULARS Figure showing the different processes during the manufacturing of Chaser Figure showing the different processes during the manufacturing of Handle Figure showing the different processes during the manufacturing of Body originally Figure showing the order in which the different parts of the product are manufactured Figure showing the different processes during the manufacturing of Body by

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78

alternate method

81

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CHAPTER 1 INDUSTRY PROFILE

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1.1 MANUFACTURING INDUSTRY


Manufacturing is the use of machines, tools and labour to make things for use or sale. Also it can be used for selling things. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished goods may be used for manufacturing other, more complex products, such as household appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users - the "consumers". Manufacturing takes turns under all types of economic systems. In a free market economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy. In free market economies, manufacturing occurs under some degree of government regulation. Modern manufacturing includes all intermediate processes required for the production and integration of a product's components. Some industries, such as semiconductor and steel manufacturers use the term fabrication instead. Manufacturing industry refers to those industries which involve in the manufacturing and processing of items and indulge in either creation of new commodities or in value addition. The manufacturing industry accounts for a significant share of the industrial sector in developed countries. The final products can either serve as a finished good for sale to customers or as intermediate goods used in the production process.

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1.1.1 EVOLUTION OF THE MANUFACTURING INDUSTRY


Manufacturing industries came into being with the occurrence of technological and socio-economic transformations in the Western countries in the 18th-19th century. This was widely known as industrial revolution. It began in Britain and replaced the labour intensive textile production with mechanization and use of fuels.

1.1.2 WORKING OF MANUFACTURING INDUSTRY


Manufacturing industries are the chief wealth producing sectors of an economy . These industries use various technologies and methods widely known as manufacturing process management. Manufacturing industries are broadly categorized into engineering industries, construction industries, electronics industries, chemical industries, energy industries, textile industries, food and beverage industries, metalworking industries, plastic industries, transport and telecommunicationindustries.

Manufacturing industries are important for an economy as they employ a huge share of the labour force and produce materials required by sectors of strategic importance such as national infrastructure and defence. However, not all manufacturing industries are beneficial to the nation as some of them generate negative externalities with huge social costs. The cost of letting such

industries flourish may even exceed the benefits generated by them.

1.1.3 ECONOMICS OF MANUFACTURING


According to some economists, manufacturing is a wealth-producing sector of an economy, whereas a service sector tends to be wealth-consuming. Emerging technologies have provided some new growth in advanced manufacturing employment opportunities in the Manufacturing Belt in the United States. Manufacturing provides important material support for national infrastructure and for national defence. On the other hand, most manufacturing may involve significant social and environmental costs. The clean-up costs of hazardous waste, for example, may outweigh the benefits of a product that creates it. Hazardous materials may expose workers to health risks. Developed countries regulate Sikkam Manipal University Page 12

manufacturing activity with labour laws and environmental laws. In the U.S, manufacturers are subject to regulations by the Occupational Safety and Health Administration and the United States Environmental Protection Agency. In Europe, pollution taxes to offset environmental costs are another form of regulation on manufacturing activity. Labour Unions and craft guilds have played a historic role negotiation of worker rights and wages. Environment laws and labour protections that are available in developed nations may not be available in the third world. Tort law and product liability impose additional costs on manufacturing.

1.2 INDIA S MANUFACTURING SECTOR DETAILS


1.2.1 MANUFACTURING INDUSTRY IN INDIA
The manufacturing industry in India has all the qualities which enhance economic development, increase the productivity of the manufacturing industry and face competition from the global markets. The Manufacturing industry in India is believed to have the potential of improving the economic condition of India. Studies conducted on the manufacturing industry have concluded that India has a working population of 75%. Out of this, only 600 million have acquired education till middle school. Due to this reason, the manufacturing industry in India, which is labour intensive, can provide the requisite number of employment units in the country. Studies have indicated that the productivity of the manufacturing industry in India is approximately 1/5th of the productivity in the manufacturing industry of United States of America. It is about as compared to the productivity levels in South Korea as well as Taiwan. Labour productivity has escalated only to a small extent in case of India in comparison to United States of America, on the contrary, labour productivity has increased manifold in countries like Taiwan and Korea.

1.2.2 SECTOR/MARKET SIZE


India is fast emerging as a global manufacturing hub. India has all the requisite skills in product, process and capital engineering, thanks to its long manufacturing history and higher education system. India's cheap, skilled manpower is attracting a number of companies, spanning diverse industries, making India a global manufacturing powerhouse. Sikkam Manipal University Page 13

According to a United Nations Industrial Development Organisation s (UNIDO) International Yearbook of Industrial Statistics 2010 , India ranks among the top 10 producers of manufacturing output in 2009. While the US and China occupies the first two places, India is in the ninth place followed by Brazil. India surpassed Canada, Brazil and Mexico in 2009 to reach the 9th position from the 12th position it held in 2008. According to the report, India is among the global top ten in the following sectors: basic metals; electrical machinery and apparatus; transport equipment, other than motor vehicles, trailers and semi-trailers; textiles; leather, leather products and footwear; coke, refined petroleum products, nuclear fuel; chemicals and chemical products. According to the UNIDO estimates, India's manufacturing value added (MVA) per capita is US$ 283. The Index of Industrial Production (IIP) data for February 2010 shows a robust growth of 16 per cent in the manufacturing sector as compared to February 2009. The cumulative growth during AprilFebruary 2009-10 over the corresponding period of 2008-09 was 10.5 per cent.

1.2.3 GROWTH TRENDS


The HSBC Market Purchasing Managers' Index (PMI), the most reliable indicator of manufacturing activity in the country based on a survey of 500 companies, stood at 57.2 in April 2010. A figure above 50 means activity is expanding and it has been above that level for 13 months. Exports from Special Economic Zones (SEZs) grew by over 122 per cent to US$ 49.5 billion in 2009-10 compared to US$ 22.4 billion in 2008-09. IT, IT hardware, petroleum, engineering, leather and garments are the leading exports from SEZs. Borg Warner Inc, a US based US$ 4 billion (2009) auto component and systems manufacturing company with presence in 18 countries, has established its Indian manufacturing facility at Sip cot industrial park at Sriperambadur near Chennai at a cost of US$ 6.6 million.
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US-based electronic manufacturing services company Sanmina-SCI opened a new manufacturing facility in March 2010, at Oragadam, Tamil Nadu at an investment of US$ 55.6 million.

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Ingersoll Rand plc has earmarked about US$ 100 million investment in its Indian operations during the next three years and expects to source products and services of an equal amount.

Panasonic India plans to invest US$ 100 million in its new plasma TV production facility in 2011.

1.2.4 GLOBAL MANUFACTURING HUB


India is fast emerging as a global manufacturing hub with a large number of companies shifting their manufacturing base to the country. Moreover, India has the largest number of companies, outside of Japan, that have been recognised for excellence in quality. As many as 21 companies have received the Deming Excellence awards; 153 companies have achieved Total Productive Maintenance (TPM) Excellence Award for their total productivity management practices by the Japan Institute of Plant Maintenance (JIPM) committee. GE Healthcare is drawing up plans to grow its India business and develop the country as a global hub for manufacturing low-cost medical devices.
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Volkswagen AG will make India a low-cost manufacturing hub catering to select export markets. Volkswagen will export fully-built models and completely knocked-down kits of its hatchback, Polo, to South East Asia, Middle East and Africa from its Pune plant.

Japanese automobile major, Yamaha, is planning to make India a hub for manufacturing its premium and deluxe bikes for overseas markets. The company s Indian unit supplied 66,904 bikes in fiscal 2010 to Yamaha s global operation compared with 38,639 units in 2008-2009, a jump of 73 per cent.

According to a report by RNCOS, Global Vaccine Market Forecast to 2012 published in February 2010, India has emerged as a new hub for vaccine manufacturers from across the world.

1.2.5 GOVERNMENT INITIATIVES


The government has issued the new consolidated FDI policy, which has come into effect from April 1, 2010. The government is also looking at publishing a new manufacturing policy document to make India a world class manufacturing hub. The policy is likely to be published by June 2010. Sikkam Manipal University Page 15

1.2.6 TOP 50 MANUFACTURING COMPANIES OF INDIA

S. No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33.

COMPANY Aditya Birla Group Hindustan Lever Network Bombay Dyeing Reynolds India Hindustan Paper Corporation Ltd Haldia Petrochemicals Emani Group Birla Yamaha Mittal Dhatu Rashayan Udyog Surya Salt Lark Engineering Company(India) Commodities Intertrade Homocol Atlas Cycles V K Exports Haridarshan Sevashram Pvt Ltd Stanlay Surya Electronics Deccan Gold Mines Ltd India ASGI(India) Industries Tea Machinery from Amrfeo Ratan Engineering Company Baba Digital

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34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50.

Sutlej Industries limited Raja Sulpher Industries S U Pumps Kantilal Sanghvi & company Ajanta Steel Mahavira Cycle Industries Yogesh Pharma Machinery Pvt Ltd Kwality Electronic Industries Ansuiya International Zenax chains Tytan Organics Pvt Ltd Salil Enterprises SJ fabricators Caliber Valves Arihant Industries Aerosa Exports Pvt Ltd Lohiya Groups of Industries

1.3 TOOLS INDUSTRY


1.3.1 INTRODUCTION
Tools industry a strategic industry, forms the backbone of many if not most of the major sectors of industrial activity in a country in the traditional manufacturing context. Therefore, a country such as India which is on the threshold of becoming a major global industrial and economic power must have a strong, well-developed, robust and modern tool industry to support and assist its manufacturing sector.

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The tools industry in India has played and will continue to play a key role in enhancing competitiveness and enabling development of quality and excellence in the output of the manufacturing industry and of the Indian economy as a whole. Tools also contribute to the vibrancy of small and medium scale manufacturing industries, in particular, the millions of job shops in the country.

In India, the Rs. 20 billion tool industry supports more than Rs. 2,000 billion manufacturing sector in the country. The Indian tools industry predominantly comprises manufacturers from the small and medium-sized enterprises. About three-quarters of total tools production in the country comes out of ISO certified companies that are involved in manufacturing of metalworking machine tools, manufacturing solutions, accessories, and cutting tools & tooling systems. India-wide, the sector employs some 75,000 skilled and unskilled persons.

Based on current trends and emerging demands, the computer numerically controlled (CNC) segment is emerging as a key driver of growth for the tools industry in India. Indian-made machine tools are currently exported to over 55 countries major ones being United States, Italy, Brazil,

Germany, and the Middle East. Lathes and automats, presses, electro-discharge machines, and machining centres form the bulk of export orders for Indian manufacturers.

1.3.2 HISTORICAL BACKDROP

This sector has had a long history of growth in India, beginning in the 1940s. From early 1950s to mid 1970s, the tools industry evolved under an umbrella of protection in which the growth was based on import substitution. During the 1950s to mid-1960s, this sector bolstered in confidence and began to absorb imported technology and manufacture tools to specifications given by foreign collaborators. It also initiated developmental work directed to modifying tools and developing variants of machines for which design had been acquired by the purchase of licenses.

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The next phase of liberalisation of policies of the government allowed selective imports that made it imperative for the domestic industry to catch up with quality specifications of imported machines, at reduced costs and to adopt best practices for reducing technology gaps.

In the 1980s, the industry developed further and was able to acquire know-how in machine tool technology in order to reproduce and even develop new machine tools. The national expertise developed over the years provided the needed human resources to initiate creative modified versions of existing machine tools manufactured under licence, thereby further paving the way towards self-reliance through aggressive R&D in India.

1.3.3 CURRENT STATUS IN INDIA


The Indian tools industry manufactures almost the complete range of metal-cutting and metalforming tools. Customised in nature, the products from the Indian basket comprise conventional tools as well as computer numerically controlled (CNC) machines produced tools.

Efforts within the industry are now underway to improve the features of CNC machines, and provide further value additions at lower costs, to meet specific requirements of users. The slowdown in the Indian economy since mid 1999 had its impact on the prospects of Indian tools manufacturers.

While the decrease in domestic production was lower in the case of conventional metal-working machine tools, computer numerically controlled (CNC) machine tools manufacturers too suffered, although marginally. Lathes, machining centres, special purpose machines, and grinding machines were categories of machine tools that sustained much of the order inflow even during 2001 although these segments registered a decline, in comparison with the previous year.

An industry, which has undergone a radical paradigm shift in its thinking, the Indian machine tools industry is now recognized as a provider of low-cost high quality lean manufacturing solutions. The industry resiliently supports all its users to enhance productivity as well as improve competitiveness for the betterment of the final customer. It is a well known and often repeated fact that the machine tools industry forms the pillar for the competitiveness of the entire manufacturing sector since machine tools produce capital goods which in turn produce the manufactured goods. Sikkam Manipal University Page 19

Hence being an integral sector, growth of the machine tools industry has an immense bearing on the entire manufacturing industry which is crucial for the country's strategic requirement such as defence, railways, space, and atomic energy. World over too, industrially developed countries have created market niches on the back of a well-developed and supportive machine tools sector.

The hub of manufacturing activities is concentrated in Mumbai and Pune in Maharashtra, Jalandhar and Ludhiana in Punjab, Ahmedabad, Baroda, Jamnagar, and Rajkot in Gujarat, Coimbatore and Chennai in Tamil Nadu, Bangalore and Mysore in Karnakata, and some parts of eastern India.

There are a number of issues of critical importance to the industry. These are:

The competitiveness and quality of tools manufacturers depend on the competitiveness and quality of its subcontractors

Attracting and retaining talented manpower is an issue since the industry can grow only with knowledge accumulation

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High fragmentation is leading to low economies of scale Indian educational curriculum in the ITI s or engineering colleges is not geared to impart the all round technical knowledge required by the engineers and operators in this sector. For example, a service engineer in the sector needs knowledge in hydraulics, mechanical, electronics and electrical.

1.3.4 CORE COMPETENCY

The Indian tools industry manufactures almost the complete range of metal-cutting and metalforming machine tools. Customised in nature, the products from India comprise conventional machine tools as well as computer numerically controlled (CNC) machines. One of the significant developments in machine tool industry in recent times have been the Computer Numerically Controlled (CNC) machines. Emergence of CNC machine tools and its dominance over the last few years in the overall product segment stemmed from its value-added features, such as enhanced productivity, higher precision, increased reliability, better finishing, and improved aesthetics and design. Achievement of higher growth and increased share of CNC machines in the overall output Sikkam Manipal University Page 20

surmises the commitment of Indian machine tool manufacturers to providing competitive manufacturing solutions, now at cost effective prices. In terms of key product segments, high growth areas for the Indian machine tool industry include turning centres, machining centres, grinding machines, and cell manufacturing, amongst others. The other emerging demand is for total manufacturing solutions, whereby users seek to economise on manufacturing cost and time.

1.3.5 INDUSTRY STRENGTHS

The tools industry in India is recognised for: y Capability to manufacture low-cost, highly productive manufacturing solutions,

especially customised products, for Indian and overseas users centres, machining centres, and grinding machines. y

in the range of turning

Consistent attempt to transform the industry to become more productive, more efficient, and, above all, much more cost competitive. Products offered by the Indian tool industry today are priced much lower than earlier.

Strong emphasise towards improvement of quality. Over 75 per cent of the total production of the industry comes from ISO certified and CE accredited manufacturers.

Engineering expertise on design, CAD, documentation, testing and evaluation. Most tools manufactured in India are indigenously designed.

Pool of skilled workforce specialising in assembly, design, and software development, as well as in efforts to further strengthen their design and innovative skills.

Forging backward integration with sub-suppliers and vendors for greater standardisation of components and assemblies.

Initiatives to form clusters and enter into consortia, with even competing manufacturers, for developing world-class manufacturing solutions.

Proactive efforts to reach out to customers through process of interactive dialogues industry and at the individual company levels.

at the

Special focus on increasing reach of the industry to other potential overseas markets. The tool industry is making special forays to establish presence in key machine tool markets through joint participation in overseas fairs, as well as establishment of exclusive tool show

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centres. As a result, Indian tools are today well accepted in China, Germany, Italy, France and in North America.

1.3.6 MANAGEMENT EFFICIENCIES

The tools industry is a very fragmented sector and the marketing abilities of the industry are far from what it is in the other sectors of the capital goods industry. Larger companies are also handicapped either due to bureaucratic norms or due to lack of capability. This is probably the reason why in this sector, a few manufacturers have formed a consortium which outsources the marketing and aftersales services. This may be a feasible model for the general purpose machines or low technology products. However, with the entry into the high-end solutions, the industry needs to catch up with global marketing strategies and practices.

An aggressive marketing strategy is followed only by 10 percent of the companies. 65 percent do not even collect competitors information. Only 19 percent of the companies consider strategic alliances with global players for technology as an option. In fact a handful of 10-15 companies are already into strategic alliances with global players and are reaping the benefits. It is quite evident that the sector lacks the managerial efficiencies and capabilities with mostly the market leaders having a strategic planning process in place. Most of the players in the SSI category are not willing to come out of the category even though there are opportunities because of the financial constraints faced by them to invest in further capacity building.

The ones who are beyond the SSI limit are not in an investment mode because they are apprehensive about the growth prospects and some are already bearing the brunt of the reduction in customs duties and import of second hand machines. Except for the top 15 percent companies, the rest are driven by demand led growth. No efforts are forthcoming from their end to explore export markets, or diversify to other products because of lack of technological edge, or cost competitiveness.

Quality consciousnesses of the sector is average with only 56 percent of the companies having reported to be ISO certified or are in the process of certification. There are a handful of companies Sikkam Manipal University Page 22

who also manufacture CE certified machines. The problems of quality are higher in this sector probably because the industry depends more on outsourced products where quality standards may be difficult to enforce. Many a times due to cost considerations, the companies cannot afford to procure the high quality reputed imported/indigenous components due to which the performance and accuracy of the machines suffer. However, the tools industry is believed to have improved its quality in the recent past as compared to what it was 3-5 years back. The industry needs to improve its quality further since the user segment has also rated the quality aspects lower than the imported machines . The ISO certified companies have a market share of 85 percent. However, it is important that all the companies are quality conscious since specifically the smaller companies are supplying tools to the component manufacturers whose quality in turn determines the quality of the equipment.

1.3.7 PROBLEMS OF INDIAN TOOLS MANUFACTURING INDUSTRY


The various problems which are being faced by the Indian tools manufacturing industry are:

There are not enough large firms and there is little cooperation among small and medium players though a few of the medium sized companies have made efforts to come under a unified umbrella to build their own niche market and share the marketing and after-sales service.

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However, since they each of them operate in a niche market, there is less competition. Indian companies also lack adequate capabilities in terms of export marketing. Industry is very weak in its marketing abilities and depended on separate marketing organizations for sales.

The Indian tools industry needs to be more innovative, bold and aggressive in marketing itself.

Indian tools manufacturers are also facing difficulties in obtaining capital to finance export sales. They need distributors to hold inventory of standard products abroad to make inroads into the export market and this requires huge capital.

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Indian firms also lack the ability to translate technological research into market advantage. Though India has the competitive advantage of engineering skills and low man-hour cost of research assistants, yet this advantage cannot be capitalized due to partly lack of finance and partly lack of coordination between the user sector, the tools industry and the Institutes of research.

The Indian domestic demand arising from the small component manufacturers who are the sub-suppliers to the engineering, automobile and defence sector is not very demanding with respect to the latest technologies due to cost considerations. However, this segment will create the highest demand for machine tools considering the fact that India is today becoming a manufacturing outsourcing hub for all the major industries worldwide. These component manufacturers would need to invest in most sophisticated and flexible machines for better productivity and quality of products to meet stringent international standards.

The Indian tools industry on an average exports 6% of its sales. This low export performance by the industry is due to, reasons as mentioned below: 1. Lack of export marketing capabilities 2. Lack of financial resources to sustain inventory levels necessary to be kept. 3. Lack of subsidized participation in trade fairs and trade missions

It is evident that for the Indian machine tools industry to be prosperous in the long run it needs to: 1. Build large capacities of cost competitive standard products 2. Build a marketing network in the domestic and international market to make its presence felt 3. To look at its operational efficiencies and build companies with financial power to spend on marketing

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1.4 HAND TOOL INDUSTRY


1.4.1 INTRODUCTION TO HAND TOOLS

The most popular product category is hand tools. The tools, which are operated by hands, are known as hand tools. Hand tool products include a broad category of hand tools. Hand tool products are broadly used in all type of industries. Today technology has become highly advanced but still the importance of hand tools products cannot be ignored. In fact hand tool products are the backbone of all the industries; no matter how advanced are the machines and technology used there. No industrial process can be executed without using hand tools. As machine can never replace importance of mankind the same way automatic tools can never take place of hand tools. The use of hand tools is must in every kind of industrial job but sometimes it is not promptly noticeable. Even if the entire process is executed by automatic tolls and machine, then too hand tools are required for additional jobs like packing, finishing etc. Furthermore the efficient working of machine is also dependant on hand tools. Hand tools are essentially required for repair and lubrications of machines. Apart from this they are widely used for home repairs, garages, electrical appliances etc. A kit full of primary hand tools products may be easily found at any home. Hand tools are used to execute very complex as well as simple tasks. Screwdriver is such a common hand tool product, which is the part of every engineer s tool kit as well as in every household. Spanners, screwdrivers, pliers, clamps, riveters, wrenches etc., are used for tightening and riveting the various screws etc. Hand tool products are designed to carry easily. That s why every vehicle has its own set of hand tool products. It can be used in time of any breaking of machine where one does not find any help. Hand tool is a saviour in time of need. A kit of hand tools products is like a first-aid box for machinery.

1.4.2 TYPES OF HAND TOOLS


In general tools can be classified as: driving and chopping tools ; cutting and smoothing

tools ; drilling, boring and countersinking tools; measuring, levelling and layout tools (rules, tapes, marking tools, levels and plumb bobs, squares); gripping, prying and twisting

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tools ; holding, raising and grinding

tools; digging tools (shovels, posthole diggers, picks and

mattocks); portable power tools and trailer-mounted tools (electric tool trailer and generator, portable power tools);miscellaneous tools. The single bit axe chopping tool is used to fell, trim tress, split and cut wood. It may also be used for notching and chopping logs and timber. The double-bit axe is limited to the splitting, cutting, trimming and shaping wood. Mauls are used in conjunction with a wood-splitting wedge to split wood. Hammers come in various sizes and shapes, and based on that they must be used for different jobs.

The screwdriver and bit also come in a variety of sizes and designs and it may be used to tighten and loosen screws, for precision work, to punch holes in leather, or to remove small nails or tacks. Saws come with various types of blades, which are used to cut almost any type of material, conduit, metals, glass, galvanized pipe, and PVC pipe. Chisels are used for cutting wood, by being forced into the material. Drilling tools are commonly used in woodworking, metal working or "does it yourself" projects, and some especially designed drills are used in medicine. Boring tools are used to cut or finish the inner diameter of hole. Dividers are instruments used for measuring distances between two points, transferring or comparing measurements directly from a rule, or for scribing an arc, radius, or circle. Micrometers are instruments used to measure distances to the nearest one-thousandth of an inch. Levels are tools designed to prove whether a plane or surface is in the true vertical or true horizontal. Adjustable parallels are used as gages for levelling and setup work. The rule or tape is used for measuring. A plumb bob is used to establish a true vertical transfer and line-up reference point, and to take readings or soundings in tanks and voids. Pliers can be used for gripping or cutting an object. Wrenches may be used to reach behind or below blind surfaces or in the building trades and on heavy objects which require alignment before fastening. Vises are used for holding or clamping large, heavy objects, for holding light materials or for holding pipe, and for forming and shaping metal.[ Work which cannot be held in a vise, or which has to be held for extended periods of time are usually held with the help of clamps. Jacks are used to raise or lower work and heavy loads short distances. Timber handling tools are used for lifting or moving heavy objects such as logs or timbers. The mattock is designed for digging and cutting operations. Sikkam Manipal University Page 26

Digging tools are designed for the breaking and digging of soil. There are different types of digging tools intended for heavy digging, to bore holes in the ground for posts, poles and explosive charges or for light work or for digging in cramped, tight places. Portable electric power tools are designed for a wide variety of uses including construction, tree cutting, bridging, or tree clearing. The cement trowel is used in concrete work for levelling, smoothing, or pushing wet cement into place. The brick trowel is used to scoop and spread mortar. The grapnel is used to trip wires designed to go off on contact, to find

1.4.3 INDIAN HAND TOOLS MARKET


India has a competitive advantage in the hand tool industry compared to other countries because of easy availability of raw materials, entrepreneurship skills and skilled labour at competitive wages. The hand tool industry as a whole is witnessing a shift of manufacturing base from traditional manufacturing countries in Europe and Taiwan to the developing world and this is a good sign for India to benefit. There has been an average growth of 17% per annum of the hand tool market in India for the last 7 years. Estimated No. of Units in India - 2500 SSI Units - 95% Large Units - 7 Estimated number of workers - 25000 Major Manufacturing regions - Jalandhar/ Nagpur

1.4.4 CHARACTERISTICS OF THE INDUSTRY


A labour Intensive Industry: A source of employment to many, hand tools industry is basically labor intensive in nature, whose development is of great importance for a competitive as well as a selfreliant industrial structure. The manufacturers of hand tools produce a comprehensive range of of hand tools, right from carpentry and plumbing tools to striking and cutting tools.

Energy intensive industry: Apart from being a labour intensive industry, this industry is also an energy intensive one. It is estimated in a recent study that in most economies adoption of energy efficient processes and technologies can yield in energy savings of up to 30 to 50%. Sikkam Manipal University Page 27

Effective contributor to the economy: Adding positively to the income of a country, hand tools industry has contributed to economy in terms of development and technology up- gradation.

1.4.5 CONSUMPTION PATTERNS OF HAND TOOLS


This depends on the following factors: y y y y y Price Supply chain dynamics Product quality, design and safety Service Environmental factors

1.4.6 DRIVING FORCES FOR HAND TOOL DEVELOPMENT


Hand tools were in use since a long time and there has been a great change in the designs of hand tools from time to time. There were many factors that led to hand tool development.

Workers safety & health

This is a very important consideration in today's designing of hand tools. Hand tools should be designed in such a way so that they reduce wear and tear on the operator. Ergonomics hand tools have become very popular, driven by an increased emphasis on worker safety and health. Workers nowadays prefer tools, which reduce stress on the body and at the same time reduce employee time loss due to job-related disabilities. Today, designers are coming up with more comfortable grips, reducing the weight of the object, and making hand tools adjustable to different body types. Chemicals

When tools are designed, manufacturers consider ergonomics, performance and the environment. Besides considering health and cleaning factors, hand tools are also produced nowadays using less chemicals, using less environmentally damaging products which are not harmful to the the human body and which becomes an environment friendly product. Sikkam Manipal University Page 28

Cleaning

One of the driving forces for change in hand tool has always been to make cleaning easier. For proper functioning and durability of hand tools, it is necessary keep them clean after usage. In most cases, the latest designs go for flexible handles which can be removed and cleaned separately as both the handle and the tool blade are of different materials. Hand Tools Standards

With the rapid advancement and expansion in the global trade, standardization of various products is very necessary. The standards given to various products help in expanding international trade which in turn bridges the quality gap between the manufacturers, suppliers and buyers of different nations. In hand tools as well, standards play a vital role. Standards are required in hand tools for the following reasons:

1. They provide performance requirements. 2. They provide safety requirements. 3. Standards are available for all types of hand tools like pliers, screwdrivers, wrenches, striking tools, torque instruments etc. \ 4. These standards also include the various tests that are required to determine conformance with the safety and performance requirement

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CHAPTER 2 COMPANY PROFILE

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2.1 INTRODUCTION OF THE COMPANY


Inder Group of Industries is a pioneering manufacturing company specialised in Plumbing Tools, Pipe Threaders, Cutters, Vices, Pliers, Striking Tools, Spanners, Drain Cleaners, Pipe Benders, Pipe Wrenches, Under Pressure Drilling and Tapping Machines and other Diy Tools. Since 1958 INDER brand tools have become the trusted name in the tools manufacturing industry. The company has won many awards for its quality and workmanship. It has been awarded Golden International Award for THE BEST TRADE NAME 1995, at Bilbao, Spain. The company won a trophy in International Trade Fair held in New Delhi in the year 1990, from National Small Industries Corporation for maintaining highest standards of Quality and Workmanship and company also got bulk orders in IMTEX, UNITECH and AMTEX exhibition in India. The company supply the goods all over India besides various Government and semi government departments. The company s turnover from sales in India is about 20 - 22 crores. The company also exports goods to USA, UK, Europe, Poland, Denmark, Australia, UAE, Kuwait, Jordan, Qatar, Saudi Arabia, Egypt, Kenya, Russia, Estonia, Germany etc. The turnover of the company from exports is about 8 -10 crores. The total turnover of the company is about 30 crores. The company has been able to keep abreast of developments in mechanical trade and constantly adding to the manufacturing trade and constantly adding to the manufacturing programme of new tools and appliances. Each product is subject to vigorous quality inspection at each stage of production and tested for performance under extreme working conditions. The company is also coming in the field of Hotel business, Education & Immigration services and Real Estate & Land Development activities.

2.1.1 VISION
To be a market leader in the tools manufacturing industry. 2.1.2 MISSION Our primary focus is to provide our customers the products of high quality according to their need and requirement.

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2.1.3 OBJECTIVES
y y y y Analysing the industry trends. Development of strategies to provide the best quality products to the customers. Execution of all plans and programs related to the production. Design of overall strategy for customer retention and quality management

2.2 AWARDS AND CERTIFICATIONS


Inder Industries has been certified from various organizations like it is an ISO 9001:2000 certified

company, and its product are ISI marked. Inder Industries also exports its products and it products are also in conformity with European standards. Inder Industries has won many awards like Golden International Award for The Best Trade Name at Bilbao, Spain in the year 1995 and an award in International Trade Fair held in New Delhi in the year 1990. The various awards and certifications won by Inder Industries are shown below:

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2.3 ORGANIZATION CHART


CHAIRMAN

MANAGING DIRECTOR

DIRECTOR ACCOUNTS

DIRECTOR SALES AND MARKETING

DIRECTOR EXPORTS

DIRECTOR TECHNICAL

ACCOUNTS MANAGERS

SALES & MARKETING MANAGERS

PRODUCTION MANAGERS

ACCOUNTS EXECUTIVES SALES REPRESENTATIVES ASST. ACCOUNTS EXECUTIVE

PRODUCTION EXECUTIVES

CHART 1

WORKERS

2.4 DEPARTMENTAL DETAILS


1. PRODUCTION / TECHNICAL DEPARTMENT
The major department for the industry is the production or the technical department. This department is headed by the director of the department. The director of the production department is Mr. Sanjay Chatrath. All the workings of the production department take place under the guidance of the director of the department. Director of the department are followed by the production managers and they are further followed by the production executives. Production executives are the person under which the actual production takes place and they are followed by the actual workers Sikkam Manipal University Page 34

who makes the production possible. All the people in the department have specific duties and the people have to perform those duties and then report to the higher authorities. This department is responsible for the production part of the industry and it is the most important department for a manufacturing industry. The director of the department i.e. Mr. Sanjay Chatrath has a huge influence on the people of the department because of his hard working nature and he keeps everybody in the department active and on their toes.

2. SALES AND MARKETING DEPARTMENT


Sales and marketing department is headed by Mr. Sunil Chatrath. He is the director of sales and marketing department and keeps track of all the sales in Indian market. Sales and marketing manager works under him following by sales representatives. A total sale of the company in Indian market is 20-22 crores annually. This high sale is achieved by sales and marketing department s dedication to meet the high sales and continuous growth of the company. This company has pioneered in Indian market by its name and has achieved high sales by its hard work to become the landmark in the market.

3. ACCOUNTS DEPARTMENT
Accounts Department is headed by Mr. Ajay Chatrath. He is director of accounts department in Inder Industries. This department have all the details of purchasing raw materials and incoming cash in terms of sales. Mr. Ajay Chatrath is heading this department very efficiently and accounts manager is the person working under him who keeps track of all the money related details that company is undergoing. Accounts manager have accounts executive and assistant accounts executive under him who are giving their best to the department and playing major role in company s success. Accounts department controls unnecessary expenses and allows expenses wherever its required.

4. EXPORT DEPARTMENT
Export department is headed by Mr. Vijay Chatrath. He is the director of the export department. Sales and marketing managers for foreign markets works under him following by sales representatives. The company exports goods to USA, UK , Europe, Poland, Denmark, Australia, UAE, Sikkam Manipal University Page 35

Kuwait, Jordan, Qatar, Saudi Arabia, Egypt, Kenya, Russia, Estonia, Germany etc. The annual turnover for foreign market for the company is around 8-10 crores. Pioneering in foreign market is not a easy task and it has been achieved by Mr. Vijay Chatrath s hard work and other people s support which has lead the company to get so vast market outside India. Marketing associates for Indian market and foreign market are Mr. Raj Kamal, Mr. Vicky Bhagat, Mr. Sanjeev Anand, Mr. Brij Bhushan, Mr. Rajesh Sharma, Mr. Ravi Bhagat, Mr. Sukhdev Sharma, Mr. Sunil Bhagat, Mr. Harjit Singh, Mr. Paramjit Sehdev, Mr. Raj Sharma, Mr. Mohit Sharma, Mr. Satpal Bhagat, Mr. Ashwani Kumar, Mr. Kamal Bali, Mr. Trilok Nath, Mr. Basant Sharma, Mr. Mansoor Khan(Sri Nagar), Mr. Hanspal Singh(Denmark), Mr. Mujahed Hussain(Dubai), Mr. Abidally(Egypt), Mr. Kapil Sethi(Delhi), Mr. Jas Hothi(Australia).

2.5 PRODUCT DETAILS


Inder Industries provides a wide variety of tools to the customers. It is the leading manufacturer of different types of tools in the country. The different type of tools manufactured by Inder Industries falls into these categories:

I.

PIPE AND BOLT THREADING MACHINES

There are different and many types of pipe and bolt threading machines which are produced by Inder Industries. The different products under this category are shown below:

1. Electric pipe threading machine


It has a compact structure made of cast aluminum alloy light weight body, easy to operate, has good safety and low noise level, referring to the international advanced technology suitable for threading requirement of pipe thread for BSPT & NPT on request. It has a profiled die head for standard taper pipe thread and it has a dependable clamping, free from slip and deformation. 2. Universal electric pipe and bolt threading machine It performs all the functions performed by the above machine but it has some extra features like it can be used for bolt threading. It has self lubricating die head and two more additional functions are pipe cutting and de-burring of pipe. Sikkam Manipal University Page 36

3. Oil gun with bucket It is a portable hand operated device which is easy pumping to just push trigger. Its large pan collect chips and re-circulates oil through reservoir to avoid wastage of oil. 4. Thread nipple holder The Thread Nipple Holder makes short nipple easily in any length and can be used with any pipe threading machine. Pipe clamping from the inside enables the manufacture of nipple from outer plastic coated pipes. 5. Adapter for close threading nipple Adapter is used to hold short or close nipples or studs for threading BSPT or NPT and it includes one insert and 5 adapters size 1/2 , 3/4 , 1 , 1.1/4 , 1.1/2 and main body itself 2 adapter. 6. Universal pipe stands It is heavy duty, light weight, adjustable and is used to balance pipe while pipe threading , grooving or cutting and it is available in fix and folding types and rollers can be fitted on any types of stand. There are various other machines and products manufactured by Inder Industries which falls under this category like Ring thread gauge, Pipe balancing stands, Carriage stand for electric pipe threading machine, Electric pipe grooving and threading machine, Hydraulic thread rolling machine etc.

II.

PIPE THREADERS

The various types of machines and products which fall under this category are given below: 1. Ratchet Pipe Threaders It is a compact tool for threading small pipes, suitable for use in difficult corners and close to walls. The die heads have large clearances holes to prevent chips out. It is packed in a compact and light weight metal and plastic carrying box.

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2. Ratchet Pipe Reamer Self-designed Ratchet Pipe Reamer is for extra fast and easy hand reaming of the pipes edge. This reamer is self feeding and easy to start and operate. 3. Ratchet Conduit Threaders It is a compact tool for threading small electric conduit pipes up to 2 , suitable for use in difficult corner and close to walls. Dies are designed with large holes for standard conduit (BSC) threading in one cut.

4. Adjustable Pipe Die Stock


The Adjustable Pipe Die Stock is an economical, most convenient and most versatile Threaders set. Its adjustment can be set on different type of pipes. The parallel threads always have clearance for pipe fittings. The other products that fall under this category are Spare Die Head, Spare Chaser, Spare Ratchet Handle, Spare Conduit Die Head, and Super Ratchet Pipe Threaders etc.

III.

PIPE VICES AND BENCH VICES

1. Self-Locking Pipe Vice Self Locking Pipe Vice is also popular by the name of Hinged Pipe Vice. In this the frame and base are hinged together. The replaceable steel jaws are accurately machined, hardened and tempered. The handle and main screw are also of steel while the frames and bases are of strong SG (Spheroidal Graphite) which is guaranteed unbreakable.

2. Pipe vice Pillar Type


It is entirely different from the existing vices. The frame and base are combination of mild steel and SG iron graded casting to ensure strength and durability. The handle and main screw are also of steel while the frame is joint with two high tensile L-key bolts.

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3. Pipe Vice Fitted Stand Light The tripod stand is a fabricated steel frame fitted with a self locking pipe vice capacity 60mm made of SG iron casting. The stand features a hinged tray, for odds and ends, and a fold down platform so that the plumber has a firm foothold and can add his own weight to the stand, creating a very stable work station for heavy on site jobs. Some other machines and products that come under this category are Pipe vice Open Type, Bench Chain Vice, Chain Pipe Vice, Multipurpose Vice Stand Heavy, Portable Chain Tristand, Steel Vice, Ratchet Load Binder etc.

IV.

PIPE WRENCHES AND CUTTERS

1. Pipe Wrench This heavy duty pipe wrench is specially used in the oil, gas and civil engineering industries. Its parts are interchangeable. High tensile strong SG iron casted handle and hardened tool steel parts are designed to work on heavy job. 2. Rapid Grip Pipe Wrench It has a unique design to provide speed along with the best performance. It operates with one hand and hold job quickly with spring loaded jaw and ratcheting action. 3. Mini Bolt Cutter Mini Bolt Cutter is designed for cutting small bolt, wire, mesh and cables. Quick and easy adjustment with bolt mechanism with slim head permits cutting close to job. 4. Sheet Hole Cutter Sheet Hole Cutter is the unique tool which is used in Electric field when desired hole need in available junction box on any soft sheet M.S, copper, brass, aluminum, PVC and fiber etc. is required without electricity and drill.

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5. HDPE Pipe Welding Machine with Clamping HDPE Pipe Welding set is a electric and mechanical device which is used to weld HDPE, PVDF and PB pipes. Machine includes Heat element, Digital temperature controller, Safety Box, holding vice with different sizes of jaws, facing machine and long leverage handle for pushing while welding. The other machines in this category are Aluminum alloy pipe wrench, Chain pipe wrench forged, Heavy duty offset pipe wrench, Hacksaw frame, Pipe reamer for internal and external, Tube cutter, Dragon quick release tube cutter, Jumbo plastic pipe cutter, Digital PPR pipe welding set, Rotary pipe cutter, Hinged pipe cutter, Hydraulic power driven pipe cutting machine etc.

V.

DRILLING AND TAPPING MACHINES

1. Online Under Pressure Drilling and Tapping Machine Under Pressure Drilling and Tapping machine is used to Drill and Tap in running water line while under pressure. It makes the hole and tap up to 2 in single operation without electricity. Machine is recommended for connection ferrules to drinking water mains for connection to consumer without stopping water line. It has unique design and involves engineering challenges so that it is capable of Drilling and tapping on cast iron, ductile iron, steel and asbestos cement pipes of various diameters. It is hand operated, easily maintained and highly durable to ensure simple installation of service valve to the main pipe and provide a quick, permanent and leak free service connection via conventional swivel ferrule service valve with or without service saddle and best feature is for whole taping operation to be carried out without interrupting the supply through the main being tapped and it is also capable for dry tapping of the aforesaid mains. All models are packed in robust lock up case with a necessary range of tools and accessories with operations operational manual. 2. Magnetic Drill Machine Magnetic Drill Machines are electric operated with special designed, developed and manufactured to the very highest standards to provide users with a powerful portable and cost effective solution to hole cutting problems.

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3. Hydraulic Under Pressure Drilling Machine Auto Feeding with Power Pack
Hydraulic operated auto feeding Under Pressure Drilling Machine is used for drilling to take branch connections from Large Diameter Cast Iron, Ductile Iron and Mild Steel Pipes, trepanning vessels and blank flanges while under pressure. Operation: The first operation is to mount a welded steel flange or cast iron tee on the main to drilled and pressure it carries. Place the valve for stopping off operation or permanent for a branch operation. A combination of cup drill and center drill is used to cut the piece or coupon from the pipe. Spring loaded balls on the center drill expand beneath the coupon after drilling and cutting. The drill shaft is retracted and the coupon brought back the cutting portion with the drill head, tight the valve and machine can be removed. The other machines under this category are Ratchet Drill Machine Multipurpose, Combined Tap Drill, Tapping Machine, Engineering Reversible Ratchet, and Annular Cutter H.S.S for Magnetic Drill Machine etc.

VI.

PIPE BENDERS

1. Hydraulic Motorized Pipe Bender with Hinged Frame Motorized operated for long radius heavy gauge ERW pipe bending ideally suitable for C class size 3/8 to 6 gas, water, steam DIN 2440/2441 up to 90 bending. 2. Hydraulic Pipe Bender with Double Frame open Bending with Power Pack Motorized with power pack specially self designed for short radius heavy and thin wall thickness bending size 3/8 to 2 gas, water, steam, stainless steel and conduit up to 180 in two steps.

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3. Portable Conduit Pipe Bender with Vice Fabricated portable conduit pipe bender with vice is designed for conduit pipe bending with lever system up to 180 and SG iron makes it strong. Self locking pipe vice 35mm for holding pipe while plumbing job required for threading and cutting etc. Other machines which comes under this category are Hydraulic Pipe Bender with Separate Pump, Spare Bending Formers of Hinged Frame, Hydraulic Pipe Bender with Double Frame open Bending, Hydraulic Pipe Bender with open Frame, Hydraulic Bar and Strip Bender, Hand Pipe Bender, Special purpose Hydraulic Pipe Bender with Mandrel system, Manual 3 axis pipe bending machine etc.

VII.

CRIMPING TOOLS AND MACHINES

1. Hydraulic Press Unique design integrates all the hydraulic elements within chassis, provides a saving in the workshop space and ensures protection in transport. It is easy to assemble and ready to use. Set of two V blocks included and legs with bolt holes for fixing to the floor. 2. Hydraulic Hose Crimping Machine Hydraulic Hose Crimping Machine is used to crimping hydraulic and auto hose pipes. It is hydraulic operated and give the accurate crimping to avoid any loose connection which may cause for leaking. 3. Hydraulic Crimping Plier Hand operated Hydraulic Crimping Pliers are used in field of electric to crimp Copper/ Aluminum terminals and connectors etc. It can be used at sight accordingly to sizes of connectors and its hydraulic force fix up very tightly with available dies. 4. Hydraulic Gear Puller Hydraulic bearing puller tool is convenient for operating. Puller can be touched working center quickly after rotary according to the distance between puller and piston center. It can choose pump freely, the jaws with three legs can be adjusted from high to low point. Sikkam Manipal University Page 42

The other machines which fall under this category are Hand Pipe Crimping Tool, Hydraulic Punch Driver, Hydraulic Cable Cutter, Ratchet Cable Cutter, Hydraulic jack, Digital Control Auto Hydraulic Hose Crimping Machine, Hydraulic Punch Press etc. There are various other types of tools which are manufactured by Inder Industries. The types of other types of Machines which are manufactured by Inder Industries are:

VIII.

ASADA THREADING MACHINES which includes Beaver Pipe Threading Machine, Die
chaser for Beaver Electric Pipe Threading Machine, Beaver Pipe Grooving Attachment, Die Head without dies for beaver electric pipe threading machine, Asada speedy bolt threading machine, Hand held pipe circular saw, Asada band saw beaver etc.

IX.

CONCRETE AND GAS CUTTERS which includes Gasoline pipe, pillars & road cutter, Electric
concrete cutter, Diamond core drillers for concrete, Pipe hole cutting machine, Manual gas pipe cutting machine, Electro gas pipe cutting machine, H-Beam cutting machine, Electric metal saw etc.

X.

PLIERS AND LUBRICATION TOOLS which includes Water pump plier, Adjustable wrench,
Combination plier, Long nose plier, Side cutting plier, Vice grip plier, Bearing puller three legs, Bearing puller two legs, Pincer, Tower pincer, Grease gun, Block plane, Iron jack plane etc.

XI.

CARPENTRY TOOLS which includes G-Clamp, T-Bar clamp, Wrecking bar, Tyre lever, Flat
chisel, Pipe puller tap, Pinch-off vice grip plier, Hex Allen keys, Flaring and swaging tool set, Flaring tool 45 etc.

XII.

SPANNERS which include Open ended slugging spanner, Ring slugging spanner, Deep offset
ring slugging spanner, Ring spanner bent type, double open ended spanners, Combination spanners, Reversible ratchet socket wrench, Bi-Hexagon ring spanner etc.

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XIII.

HYDRAULIC PALLET TRUCKS which includes Hydraulic Hand Pallet Truck, Hydraulic Pallet
Truck with Scale, Hydraulic High-Lift Pallet Trunk, Hydraulic Rough Terrain Hand Pallet Truck, Hydraulic Hand Stacker, Hydraulic Power Press etc.

XIV.

ELECTRIC HOISTS which includes Electric Hoist, Electric Trolley, Battery Winch, Hand
Winch, Electric Winch, Rotary Hoist Frame, Triple Spur Gear Chain Pulley Blocks etc.

XV.

MEASURING TOOLS which includes Iron Level, Aluminum Level, Laser Level, Try Square,
Engineering Square, Tailor Square, Mason Square with base, Micrometer, Wooden folded scale, Hobby Brass Plane, Plumbobs with Brass Nipple, Tyre depth gauge, Vernier Caliper, Dial Vernier etc.

2.6 MAJOR COMPETITORS


1. AMBIKA FORGINGS
It is one of the biggest companies in the tools industry. However it is not the leading manufacturer of tools but it has one of the biggest market shares as it outsources most of its products. It is a manufacturer of forging tools, hand power tools, hand tool kit, ring spanners, cone spanners, spanner tools, wrenches tools, pipe wrenches, bench vice, steel bench vice, hand drill machine, industrial hand tools, industrial power tools, portable electric drills, rotary hammer, industrial angle grinder, metal jig saw, cut machine, saw machine, hand tool kit etc.

2. HINDUSTAN EVEREST TOOLS LIMITED


Another major competitor of Inder Industries is Hindustan Everest Tools Limited. They are the manufacturer of world class hand tools in the brand name "Everest" since 1963 and their plant is situated in district Sonepat (Haryana). They provide major competition in Indian market only in products like pipe wrenches, spanners etc.

3. TAPARIA TOOLS
It is another competitor for Inder Industries. It has the largest market share among all tools manufacturing industries. It provides major competition to Inder Industries in terms of exports. It Sikkam Manipal University Page 44

has got its marketing representatives all over the world and is a stiff competition in all types of tools for Inder Industries. There are various other players in the tool manufacturing industry which provide competition to the Inder Industries. Some of them are Jalani, Eastman Industries, Jagdambay forgings, Mekaster tools limited etc.

2.7 SWOT ANALYSIS


SWOT analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strengths: Attributes of the company are helpful to achieving the objectives. Weaknesses: Attributes of the company that is harmful to achieving the objectives. Opportunities: External conditions that is helpful to achieving the objectives. Threats: External conditions which could do damage to the objectives.

2.7.1 AREAS TO CONSIDER


Some of the key areas to consider when identifying and evaluating Strengths, Weaknesses, Opportunities and Threats are listed down below:

Strengths
1. Technological skills 2. Leading Products 3. Distribution channels Sikkam Manipal University Page 45

4. Customer Loyalty 5. Production quality 6. Scale 7. Management 8. Innovative product or service.

Weaknesses
1. Absence of important skills 2. Weak Products 3. Poor access to customers 4. Low customer retention 5. Unreliable products or services 6. Management

Opportunities
1. Changing customer requirements 2. Technological advances 3. Changes in government Policies (Favour to the firm) 4. Change in population 5. New distribution channels

Threats
1. Changing Environment

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2. Emergence of new companies 3. Technology used may get out-dated

There are some questions which are needed to be answered for the SWOT analysis. Questions for the Strengths, Weaknesses, Opportunities and Threats are given below: Strength is something that a firm truly do well, something that truly differentiates the business, a key metric that is improving, etc. Most companies do surprisingly bad job of identifying what they are really good at doing. Every company has strengths

Strengths Questions
y y y y y y y y y What makes firm stand out from the competitors? What advantages does the firm has over other business? What are the major sources of a company's revenue and profit? What is the market share of the company in its various product lines? Does the company have strong brands? Is the advertisement effective? What is the major focus are of the company? Does the company have a pool of skilled employees? Is the company able to innovate?

Weakness is a real gap, or a problem, or a key metric that is going bad in the company; something firm is not doing very well; something important that firm really don t know or aren t sure about. In fact, one good outcome of a SWOT is to discover what firm really don t know and then do something about it.

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Weakness Questions
y y y y y y y y What do firm customers complain about? What are the least profitable product lines for the company? In what areas is the company not able to recover costs? Is the advertising effective? Is the company not focused? What are the biggest expenditures of the company? Will the company able to stand price competition from competitors? Do the employees have faith in management?

An Opportunity is a favourable external condition; something (that firm hasn t acted on or taken advantage yet) that could impact it positively. Opportunities are new ways that firm exploit the can

STRENGTHS, WEAKNESSES & THREATS, new things that the firm can do to that turn into recommendations and actions. This list

potentially improve the business

becomes the most important part of the SWOT for prioritizing and determining what next steps to take.

Opportunity Questions
y y y y y Are there emerging trends that fit with the company's strengths? What are the interesting trends? Company positioned to take on those trends? What favourable circumstances for the firm? Is the company entering new markets? Is the company advanced in technology?

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A Threat is something external to the business that can potentially impact the firm negatively: competitors (actually doing specific things vs. just being there), changing conditions in the particular marketplace, the overall economy, government regulations, etc. Threats are part of the playing field that firm can t ignore. They are part of the context of the business.

Threat Questions
y y y y y y Are the competitors becoming stronger? Does the company see other external threats to the company's success? Internally, does the firm have financial, development, or other problems? What is the competition doing? Are the required specifications for your products or services changing? Is changing technology threatening firm s position?

2.7.2 SWOT ANALYSIS OF INDER INDUSTRIES STRENGTHS


1. Inder Industries is a leader in tools manufacturing. 2. It has quite good market share. 3. Inder Industry is a reputable name in the market. 4. It has motivated employees with motivated employers. 5. It has demand of its products even outside India.

WEAKNESSES
1. It has quite low employee base. 2. They do not use the latest technology.

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3. Cycle time for products is quite large. 4. Employees are not highly skilled. 5. Not enough advertising is done of products.

OPPORTUNITIES
1. Inder Industries can increase their market share by better advertising. 2. More joint ventures in foreign countries will help Inder Industries to increase their sales. 3. By employing newer technology they can improve their productivity. 4. By providing training to their employees they can increase their efficiency. 5. The company can use its trusted name in entering the new businesses.

THREATS
1. The competitors may use new technology and take their market share. 2. They have high quality advantage over its competitors, once the competitors find out the High quality production methodologies then there will no advantage. 3. Competitors may advertise their products better than them and as a result their sale may Decrease.

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CHAPTER 3 RESEARCH DESIGN

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3.1 STATEMENT OF THE PROBLEM


Inappropriate use of machines in terms of number and type leads to rise in the manufacturing cycle time of a product during manufacturing process. As a result of higher manufacturing cycle time of a product, the productivity or production capacity of a production process decreases.

3.2 TITLE OF THE PROJECT


Analysis of the production process and the manufacturing cycle time of a product.

3.3 OBJECTIVES
The main objective of this project is to analyse the different steps in the production process of a particular product and to look out for the faults in the production process which are affecting the productivity. By analysing and understanding the production process the areas of improvement can be identified which will ultimately result in the increased production i.e. reduced manufacturing cycle time of a product. The other objectives of this project are: y y y y To identify the bottleneck, if any in the production process. To identify or find ways for eliminating the bottleneck. To analyse the manufacturing cycle time of a product. To find ways to decrease or reduce the manufacturing cycle time which will result in increased production.

3.4 SCOPE
The scope of this project has implications for all the manufacturing industries. It provides them with a way to analyse their production process and then seek ways to improve their production process and reduce cycle time. This project tells the implications of improper use of the machines in terms of number and type at particular steps of production process which may even lead to a situation of bottleneck. Sikkam Manipal University Page 52

3.5 OPERATIONAL DEFINITIONS y Jobs

Jobs are the units of work that move through a process or the units of work that wait and that are worked upon.

Cycle Time

The elapsed time from when a job enters a process until it is completed and leaves the process is known as the cycle time. It is calculated by adding the processing time and the waiting time.

Workstation

Workstation is the place where work is performed; where jobs arrive, wait if necessary, are worked on and then leave.

Bottleneck

The workstation s state of having more jobs to do than can be done and jobs are forced to wait because the needed servers are already busy or when the service rate of a workstation is less than the arrival rate of the workstation then the workstation is said to be bottlenecked.

Input

Inputs are the newly arriving jobs to be worked on.

Service

It is the mechanism where units are served, or processed. Service is characterized by the number of servers and by the service time. The number of servers is the number of units that may be worked on at once. In a single server system, one unit is processed, then the next, then the next, etc. When more than one server is present, a unit is processed by any available server and all servers may be busy at once.

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Waiting Time

Waiting time is the amount of time jobs wait in queue because the needed servers (people/machines/systems) are busy.

Service Time

Service time is the time required at an workstation to complete the work on one job; the time required by one server at one activity to perform one job, once work begins.

Processing Time

Processing time is the sum of the average process times for each workstation in a production line.

Arrival Rate

Arrival rate is the rate at which the jobs arrive at a workstation.

Service Rate

Service rate is the rate at which jobs are serviced at a workstation.

Utilization Factor

It gives the percentage of the time the machine or tools remains busy during the production process. It is the ratio of the arrival rate to the service rate.

3.6 RESEARCH METHODOLOGY


3.6.1 Sources of Data
1. Primary Data - It refers to those data which are collected for the first time and thus are original in character. For this study the primary data is collected by observing the production process, like processing time at each workstation and the number of machines used at each workstation.

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2. Secondary Data - It refers to those data which have already been collected by someone else. For this study the secondary data is collected from the company database.

3.6.2 Research Method or Type of Study


The type of study adopted for this project is Descriptive and Analytical Research. Descriptive Research includes fact-finding enquires of different kinds. The main characteristic of this research is that the researcher had no control over the variables i.e. the researcher can only report what has happened or what is happening. In this case for understanding and describing the production process the process was analyzed as to how it is carried out. It describes the different stages or steps of production process and the number of machines used at each workstation. For Analytical Research, the researcher uses facts or information available and collected, and analyses them to make a critical evaluation of the process. It includes using all the facts collected regarding the production process, analyzing them and then using those data to access the efficiency of the production process and finding the ways to improve the production process

3.6.3 Sampling Plan


1. Sampling unit Processing time for each process of the production process are taken to analyse

the total time taken during the manufacturing of a product. 2. Sample Size - 50 samples of processing time of each process of the production process are taken for the analysis of the manufacturing cycle time. 3. Sampling technique - As this project is related to quantitative analysis therefore the best sampling technique for it would be simple random sampling i.e. a probability sampling method. This method is used because we are taking the processing time of the different process randomly and there is no bias involved.

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3.6.4 Tools or Techniques used for Data Analysis


The major tool or technique that is used in this project is the queuing theory. It is the most widely used technique for the study of waiting lines that are formed during the processing of a product. Waiting lines are an inevitable characteristic of the operations and the time that a product has to wait in a queue for processing is known as waiting time and it is included in the manufacturing cycle time of a product.

3.6.5 Limitation of the Study


y The different processes like drilling, milling are done by the workers on the machine so processing time depends on the human element as well. y My own limited knowledge in this highly technical field.

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CHAPTER 4 DATA ANALYSIS

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INTRODUCTION
The product that has been taken here for the analysis is Ratchet Pipe Threaders. The production process of this product has been analysed and its efficiency is measured. The product mainly has three parts which are produced or manufactured separately and in parallel with each other and then are assembled together. The three parts of this product are: y y y Chaser Handle Body

These are the three parts of Ratchet Pipe Threaders which are manufactured in parallel with each other. The manufacturing cycle time of these three products are measured and the highest manufacturing cycle time among these three will decide the overall cycle time of the product. Now the analysis of production process of each of the three parts will be done separately.

1. CHASER
The first part of the product to be analysed is Chaser. It is manufactured in parallel with the other two parts of the product. Chaser goes through 6 processes during its manufacturing. Samples for the time taken during each of these processes have been taken and the mean of those samples are being used for the analysis. During the manufacturing process of Chaser every stage or process employs different number of machines or tools or people. There is always a definite order in which the processes are carried. The order of the different processes for the manufacturing of chaser is given in the table:

Cutting

Grinding

Threading

Tempering

Sizing

Fitting

Figure 1
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The Table 1 given below shows the different processes and their mean processing time for the manufacturing of Chaser:

PROCESSES

MEAN PROCESSING TIME ( in Minutes)

Cutting Grinding Threading Tempering Sizing Fitting Table 1

0.533 0.833 1.5 0.333 0.3 1.083

The company has employed different number of machines or people at different workstations. Table 2 shows the different processes along with the number of machines or tools or people employed for the production of Chaser:

PROCESSES

NUMBER OF MACHINES/TOOLS/PEOPLE 1 2 4 1 1

Cutting Grinding Threading Tempering Sizing

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Fitting Table 2

Now the rates at which the machines at different workstations receive the chaser for processing and the rate at which it services that part needs to be calculated. The rates are known as Arrival rates and the Service rate. The Arrival rates and the Service rates for the different stations will be calculated in terms of Arrivals and Services per hour. The Table given shows the different Arrival rates and Service rates for the different processes during the manufacturing of Chaser:

PROCESSES

NO. OF MACHINES/TOOLS/PEOPL E (k)

TIME (in Min.)

ARRIVAL RATE ( )

SERVICE RATE PER MACHINE ()

TOTAL SERVICE RATE (k)

Cutting Grinding Threading Tempering Sizing Fitting

1 2 4 1 1 4

0.533 0.833 1.5 0.333 0.3 1.083

112.5 112.5 144 160 180 200

112.5 72 40 180 200 55.38

112.5 144 160 180 200 221.5

Table 3
The Table above shows the Arrival and Service rates for the different processes. Now the Utilization factors for the different processes are calculated. The Utilization factor can be calculated as : Utilization Factor = / k Sikkam Manipal University Page 60

Where,

= Arrival Rate = Service Rate k = No. of Machines/ Tools/ People

The Utilization Factor is a very important factor and it is useful in determining the stability of the processes. It gives the percentage of time that the machine /tools/people remains busy. The Utilization Factor should always be less than 1. The Utilization Factor of greater than 1 shows that the system is receiving more arrivals than it can handle. The system will not be in steady state and queue lengths will grow uncontrollably. The one exception is the particular case of deterministic arrival and service times, in which case the utilization may be equal to 1. The Table given below gives the Utilization Factors for different processes:

PROCESSES Cutting Grinding Threading Tempering Sizing Fitting Table 4

UTILIZATION FACTOR 1 0.78 0.9 0.88 0.9 0.9

From the above Table it can be seen that all the processes are in stable state as all the processes has a Utilization Factor of 1 or less than 1.

Utilization Factor should be Sikkam Manipal University

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So there is no bottleneck condition in the production process of Chaser. So now the total cycle time of the production process of Chaser can be calculated. Total cycle time can be calculated by adding the total processing time and the waiting time. The total processing time can be calculated from Table 1 by adding the individual processing time of the different processes. Now the waiting time has to be calculated for finding the total cycle time of the manufacturing process of the Chaser. During the manufacturing process the product has to wait in a queue in front of a machine in order to be processed. The amount of time that a product has to wait in front of a queue is known as waiting time. Waiting Time for a system of single server can be calculated by the formula given below: Waiting Time = Where, / (- )

= Arrival rate = Service rate

Waiting Time for a system of Multi servers can be calculated by the formula given below: Waiting Time = [ ( /) k / (k-1)! (k - )] P0
k-1

And P0 = 1 / [ ( /) n / n! + ( /) k / k! {1-( - k)}


n=0

Where.

= Arrival rate = Service rate k = No. of servers

The Table given below gives the Waiting time for the different processes during the manufacturing of Chaser:

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PROCESSES Cutting Grinding Threading Tempering Sizing Fitting Table 5

WAITING TIME (in Min) 0 1.015 2.934 2.664 2.7 2.22

The Table above gives the waiting times for all the processes during the manufacturing process. The total waiting time can be calculated by adding all the individual waiting times. Total Waiting Time = 0 + 1.015 + 2.934 + 2.664 + 2.7 + 2.22 = 11.533 minutes The total processing time can be calculated by adding all the individual processing times given in the Table 1. Total Processing Time = 0.533 + 0.833 + 1.5 + 0.333 + 0.3 + 1.083= 4.583 minutes

The total cycle time for the manufacturing of chaser can be calculated by adding the total waiting time and the total processing time. Cycle Time = 11.533 + 4.583 Cycle Time = 16.116 minutes Now from the above figures the manufacturing cycle efficiency can be calculated. During manufacturing there are two types of activities i.e value adding activities and the non- value adding Sikkam Manipal University Page 63

activities. Manufacturing cycle efficiency is the measures of time spend on the value adding activities. Manufacturing Cycle Efficiency = Time spend in value adding activities/Total time Or, Manufacturing Cycle Efficiency = Total processing time / Cycle time Therefore, Manufacturing Cycle Efficiency = 4.583 / 16.116 = 0.2843 Or, Manufacturing Cycle Efficiency for the manufacturing of Chaser = 28.43%

2. HANDLE
Now the production process of the second part of the product will be analysed. The second part of the product is the Handle. The Handle goes through 3 processes during its manufacturing. Samples for the time taken during each of these processes have been taken and the mean of those samples are being used for the analysis. There is always a definite order in which the processes are carried. The order of the different processes for the manufacturing of handle is given below:

Turning

Drilling

Tapping

Figure

The Table given below shows the different processes and their mean processing time for the manufacturing of Handle:

PROCESSES

PROCESSING TIME (in Min.)

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Turning Drilling Tapping Table 6

8 2.5 1.5

Now the table given below shows the number of machines used in the different processes during the manufacturing of Handle:

PROCESSES Turning Drilling Tapping

NUMBER OF MACHINES/TOOLS 1 1 1 Table 7

The Arrival rates and the Service rates for the different stations will be calculated in terms of Arrivals and Services per hour. The Table shows the different Arrival rates and Service rates for the different processes:

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PROCESSES

NO. OF MACHINES/TOOLS/PEOPLE (k)

TIME (In Min.)

ARRIVAL RATE ( )

SERVICE RATE PER MACHINE () 7.5 24 40

TOTAL SERVICE RATE (k)

Turning Drilling Tapping

1 1 1

8 2.5 1.5 Table 8

7.5 7.5 24

7.5 24 40

The Table above shows the Arrival and Service rates for the different processes. Now the Utilization factors for the different processes are calculated. The Utilization factor can be calculated as: Utilization Factor = / k Where, = Arrival Rate = Service Rate k = No. of Machines/ Tools/ People The Table below gives the Utilization Factors for the different processes:

PROCESSES Turning Drilling Tapping Table 9

UTILIZATION FACTOR 1 0.3125 0.6

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From the above Table it can be seen that all the processes are in stable state as all the processes has a Utilization Factor of 1 or less than 1.

Utilization Factor should be

So there is no bottleneck condition in the production process of Handle. So now as the Cycle Time of the Chaser was calculated, in the same way the Cycle Time of the production process of Handle can be calculated. Total cycle time can be calculated by adding the total processing time and the waiting time. The processing time can be calculated by adding the individual processing times given in Table 6. Now for calculating the Cycle Time of the production of a Handle the Waiting Time in a queue needs to be calculated. In the manufacturing of a Handle, at all workstations or process only one machine is used. So in this case there is only one server.

Waiting Time for a system of single server can be calculated by the formula given below: Waiting Time = Where, / (- )

= Arrival rate = Service rate

The Table given below gives the Waiting time for the different processes during the manufacturing of Chaser:

PROCESSES Turning

WAITING TIME (in Min) 0

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Drilling Tapping Table 10

1.134 2.25

The Table above gives the waiting times for all the processes during the manufacturing process. The total waiting time can be calculated by adding all the individual waiting times. Total Waiting Time = 0 + 1.134 + 2.25 = 3.384 minutes The total processing time can be calculated by adding all the individual processing times given in the Table 6. Total Processing Time = 8 + 2.5 + 1.5= 12 minutes The total cycle time for the manufacturing of Handle can be calculated by adding the total waiting time and the total processing time. Cycle Time = 12 + 3.384 Cycle Time = 15.384 minutes Now from the above figures the manufacturing cycle efficiency can be calculated. Manufacturing Cycle Efficiency = Time spend in value adding activities/Total time Or, Manufacturing Cycle Efficiency = Total processing time / Cycle time Therefore, Manufacturing Cycle Efficiency = 12/ 15.384= 0.78 Or, Manufacturing Cycle Efficiency for the manufacturing of Handle = 78%

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3. BODY
The third part of the Ratchet Pipe Threaders is the body. Body goes through 6 processes during its manufacturing. Samples for the time taken during each of these processes have been taken and the mean of those samples are being used for the analysis. For the analysis of the production process of the body part around 50 samples were taken. During the manufacturing process of Body every stage or process employs different number of machines/tools/people and the numbers of machines/tools/people used are also considered while analysing the production process of any product. There is always a definite order in which the processes are carried. The order of the different

processes for the manufacturing of body is given below:

Grinding

Turning

Milling

Cutting

Drilling

Threading

Figure 3 The Table given below shows the different processes and their mean processing time for the manufacturing of Body:

PROCESSES

MEAN PROCESSING TIME ( in Minutes)

Grinding Turning Milling Cutting


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0.666 1.916 1.750 0.533

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Drilling Threading Table 11

2.866 1.333

The table given shows the number of machines/tools/people employed at different stages:

PROCESSES

NUMBER OF MACHINES/TOOLS/PEOPLE 1 3 3 1 5 3 Table 12

Grinding Turning Milling Cutting Drilling Threading

The Table shows the different Arrival rates and Service rates for the different processes:

PROCESSES

NO. OF MACHINES/TOOLS/PEOPLE (k)

TIME (In Min.) 0.666 1.916

ARRIVAL RATE ( )

SERVICE RATE PER MACHINE () 90 31.3

TOTAL SERVICE RATE (k)

Grinding Turning

1 3

90 90

90 93.9

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Milling Cutting Drilling Threading

3 1 5 3

1.750 0.533 2.866 1.333 Table 13

93.9 102.87 112.5 104.65

34.29 112.5 20.93 45

102.87 112.5 104.65 135

The previous Table shows the Arrival and Service rates for the different processes. Now the Utilization factors for the different processes are calculated. The Utilization factor can be calculated as : Utilization Factor = / k Where, = Arrival Rate = Service Rate k = No. of Machines/ Tools/ People

The Table given below gives the Utilization Factors for different processes:

PROCESSES Grinding Turning Milling Cutting Drilling Threading Table 14


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UTILIZATION FACTOR 1 0.958 0.913 0.914 1.075 0.775

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Now as it is known that the Utilization Factor

1. But as it can be seen from the above table that

during the Drilling process the Utilization Factor is greater than one i.e. 1.075. Therefore it is a situation of bottleneck in the production process of Body. So first this situation needs to be removed because this affects the cycle time for the production of the product. When the Utilization Factor is greater than 1, it means that the system is receiving more arrivals then it can handle or the arrival rate for the workstation is higher than the service rate of the workstation. As a result of this variation in the arrival and the service rate the queue in front of the drilling workstation will keep on increasing uncontrollably and the waiting time for the product will keep on increasing as they come for the processing. In this case, for cutting it takes about an average of 0.533 minutes and for the drilling phase it takes about 2.866 minutes. So the difference in the time taken for processing is about 2.333 minutes. As a result when the arrival rate is higher than the service rate the waiting time will keep on increasing in the order of 2.333 minutes per product. So if the production of large amount of products is to be done than the company will suffer huge problems. Now the effect of the bottleneck situation on the cycle time of the whole product needs to be analysed. The question that arises here is that does the bottleneck situation in the production process of body affect the whole cycle time of the product?

The Total Processing Time in case of part Body can be calculated by adding all the individual processing time for each process. Total processing Time = 0.666 + 1.916 + 1.750 + 0.533 + 2.866 + 1.333= 9.066 minutes Now expect for the Drilling process the waiting times for the other process needs to be calculated as for the Drilling process it is very difficult to calculate the average waiting time because for a bottleneck situation the waiting time keeps on increasing uncontrollably as the queue starts increasing because of low service rates.

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Waiting times for the different processes except Drilling are given below: Waiting time for Grinding = 0 Waiting time for Turning = 14.184 min Waiting time for Milling = 5.616 min Waiting time for Cutting = 5.7 min Waiting time for Threading = 1.199 min Waiting time for Drilling will vary for every product and keep on increasing with every product, so it is very difficult to calculate the waiting time for Drilling workstation. So except the Drilling process, the total waiting time for the Body manufacturing can be calculated by adding all the individual waiting times for the different processes. Waiting time except Drilling process = 0 + 14.184 + 5.616 + 5.7 + 1.199= 26.699 minutes So, Total cycle time for body except drilling process = 9.066 + 26.699= 35.765 minutes Hence Body is the part that will affect the Cycle Time of the whole product because Cycle Time for Chaser = 16.166 minutes Cycle Time for Handle = 15.384 minutes Cycle Time for Body = 35.765 minutes excluding the waiting time for drilling process All these parts are manufactured in parallel with each other. So the highest cycle time among these three will affect the overall cycle time of the product. Highest cycle time among these three is of Body part. So the Body part s cycle time will affect and determine the overall cycle time of the product. But the Body part s manufacturing process is having a bottleneck situation as a result of which the waiting time keeps on increasing. So for controlling the cycle time and reducing it some measures needs to be taken to remove the bottleneck.

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Some steps that can be taken to overcome the bottleneck condition are: y Machines at the bottleneck workstation should work even during the breaks like during lunch time etc. for controlling the waiting time for the products. y Second method for removing the bottleneck is to add extra machines/tools/people at the workstation having a bottleneck situation which will increase the service rate of the workstation and as a result the queue length will reduce. In this case the machines at the bottleneck situation cannot be made to work more than the other machines a lot because the manufacturing process runs for 16 hours per day and there is not much extra time left for machine to do extra work. So the method of making the bottleneck workstation s machines to work more will not work here. The other way to remove this bottleneck situation is by employing extra machines at the bottleneck workstation in order to increase the service rate of the workstation to match the arrival rate. Currently the number of machines used at Drilling workstation is 5 and the service rate per machine is 20.93 per hour. So currently the service rate of the Drilling workstation is 104.65 per hour while the arrival rate is 112.5. If the number of machines at Drilling workstation is increased to 6 which is possible as they have a number of spare Drilling machines the service rate of the Drilling workstation will go up to 125.58 which will be more than arrival rate for the workstation. Hence the condition of bottleneck will be removed and the problem of uncontrollably growing queue and waiting time will be eliminated. So the number of machines used for the different processes for Body is given in the next Table:

PROCESSES

NUMBER OF MACHINES/TOOLS/PEOPLE 1 3 3

Grinding Turning Milling


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Cutting Drilling Threading Table 15

1 6 3

The Table below shows the different Arrival rates and Service rates for the different processes after making change to the number of machines used for Drilling from 5 to 6:

PROCESSES

NO. OF MACHINES/TOOLS/PEOPLE (k)

TIME (In Min.)

ARRIVAL RATE ( )

SERVICE RATE PER MACHINE () 90 31.3 34.29 112.5 20.93 45

TOTAL SERVICE RATE (k)

Grinding Turning Milling Cutting Drilling Threading

1 3 3 1 6 3

0.666 1.916 1.750 0.533 2.866 1.333 Table 16

90 90 93.9 102.87 112.5 125.58

90 93.9 102.87 112.5 125.58 135

Now again the Utilization Factor needs to be calculated. The Utilization factor can be calculated as : Utilization Factor = / k Where, = Arrival Rate = Service Rate k = No. of Machines/ Tools/ People Sikkam Manipal University Page 75

The Table below shows the Utilization Factor for the different workstations during the manufacturing of the Body:

PROCESSES Grinding Turning Milling Cutting Drilling Threading Table 17

UTILIZATION FACTOR 1 0.958 0.913 0.914 0.896 0.93

From the above Table it can be seen that all the processes are in stable state as all the processes has a Utilization Factor of 1 or less than 1.

Utilization Factor should be

So now there is no bottleneck condition in the production process of Body. Now again for calculating the cycle time for the manufacturing process of Body the waiting time in the queue in order to be processed needs to be calculated. The total waiting time in the queue for the body part can be calculated by adding all the individual waiting times for the body part during each process. The waiting times for the individual processes will be calculated by using formulas for systems with single server and systems with multi server.

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The Table given below shows the individual waiting times for different processes during the manufacturing of Body part:

PROCESSES Grinding Turning Milling Cutting Drilling Threading

WAITING TIME (in Min) 0 14.184 5.616 5.7 3.345 5.543 Table 18

The Table above gives the waiting times for all the processes during the manufacturing process. The total waiting time can be calculated by adding all the individual waiting times. Total Waiting Time = 0 + 14.184 + 5.616 + 5.7 + 3.345 + 5.543= 34.388 minutes The total processing time can be calculated by adding all the individual processing times given in the Table 11. Total Processing Time = 0.666 + 1.916 + 1.750 + 0.533 + 2.866 + 1.333= 9.064 minutes The total cycle time for the manufacturing of Body can be calculated by adding the total waiting time and the total processing time. Cycle Time = 34.388 + 9.064 Cycle Time = 43.452 minutes

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Now from the above figures the manufacturing cycle efficiency can be calculated. During manufacturing there are two types of activities i.e value adding activities and the non- value adding activities. Manufacturing cycle efficiency is the measures of time spend on the value adding activities. Manufacturing Cycle Efficiency = Time spend in value adding activities/Total time Or, Manufacturing Cycle Efficiency = Total processing time / Cycle time Therefore, Manufacturing Cycle Efficiency = 9.064 / 43.452= 0.2086 Or, Manufacturing Cycle Efficiency for the manufacturing of Body = 20.86 % Now the total manufacturing process of Ratchet Pipe Threaders can be shown in the form of a diagram. The diagram given below shows the order in which different parts are made:

Chaser

Painting Handle & Assembling Body

Figure 4

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Now the figure clearly shows that the three parts are made in parallel with each other. So the overall cycle time of the product will be determined by the part which has the highest cycle time because the other parts has to wait till that part is manufactured for further processing. The cycle times for all the parts have been calculated. The cycle times for the three parts are given as: Cycle Time for manufacturing of Chaser = 16.116 minutes Cycle Time for manufacturing of Handle = 15.384 minutes Cycle Time for manufacturing of Body = 43.452 minutes So cycle time for Body will be considered for calculating the overall cycle time of the product. It is the same with the bottleneck situation because in that case the cycle time would have been even more. So because of this the present condition of bottleneck needs to be removed. Now for calculating the overall cycle time of the product in this case processing time of the painting & assembling and the waiting time for the product in the queue in order to be processed needs to be added to the cycle time of the Body i.e. 43.452 minutes Now as the Body needs to be considered for the cycle time so the arrival rate for the painting and assembling workstation will be equal to the service rate of the final process of the Body s manufacturing process i.e. threading. So the arrival rate for the painting & assembling workstation = 135 per hour Now for the painting and assembling workstation it takes an average of 4 minutes for processing per person. So a person can process an average of 15 persons per hour. The numbers of persons employed for the workstation are around 12. Therefore the service rate for the workstation = 15 x 12= 180 per hour Now for calculating the cycle time for the painting & assembling workstation the average waiting time for a product needs to be calculated. The waiting time can be calculated by using the formula of the system with multi servers given earlier.

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In this case,

Arrival Rate ( ) = 135 per hour Service Rate () = 15 per hour No. of the servers (k) = 12

Average waiting time calculated by using the formula for multi servers = 0.355 min. Therefore cycle time for the painting and assembling workstation = 4 + 0.355= 4.355 minutes Now as we know we have the cycle time for the three parts is taken as = 43.452 min. And cycle time for painting and assembling stage = 4.355 minutes Therefore the Total Cycle Time for the product can be calculated by adding these two times. Total Cycle Time = 43.452 + 4.355= 47.807 minutes. Therefore Total Cycle Time for the manufacturing of Ratchet Pipe Threaders = 47.807 minutes. So if the situation of bottleneck is removed from the Drilling workstation by increasing the number of machines from 5 to 6 the Cycle Time of the manufacturing of Ratchet Pipe Threaders comes out as 47.807 minutes which is surely less than the cycle time of the product with bottleneck situation.

ALTERNATIVE WAY OF REDUCTION OF CYCLE TIME


The organization should look to remove the bottleneck situation because that will lead to reduction in the manufacturing cycle time and will ultimately reduce the time taken in the fulfilment of a order. If the bottleneck situation is removed than the products will reach the market quickly and hence can capture the market first. It will also affect their sales as the customers will be more than happy to give orders to a organization which will fulfil their orders sooner than the other organization. The cost of production of products will also decrease. After removing the bottleneck condition, there may be other things which can be done to further decrease the manufacturing cycle time of the product. The things that can be done include increasing the number of machines at the workstations or by changing the way the products are manufactured. Sikkam Manipal University Page 80

After looking into the details of the production processes of the organization it was understood that the different machines available to the organization are not properly utilized. V.M.C machines were being used for milling and cutting for the products for which it was not necessary. It means if there are 2-3 parts of a product being made in parallel to each other and one of the parts has a much higher cycle time than the other two then there is no use of using a higher efficiency machine for the parts that already have a lower cycle time because it will have no effect on the overall manufacturing cycle time of the product. It was noticed that the same thing was happening during the manufacturing of some products. Those high efficiency machines like a V.M.C were being used for the parts which will have a lower cycle time in comparison to the other parts which were being manufactured in parallel to the part. A V.M.C machine is used for milling and cutting and it works much faster than the normal milling and cutting machine. In the products for which the V.M.C is being used, there is no use of it for the part with higher manufacturing cycle time. So there is no way that the V.M.C is reducing the overall cycle time of that product and improving the effectiveness of the production process. But if the V.M.C is used in the production process of the Ratchet Pipe Threaders it will surely reduce the manufacturing cycle time of the product and also increase the effectiveness of the production process. V.M.C can be used for the milling and cutting purpose for the manufacturing of Body part in the Ratchet Pipe Threaders. It will reduce the number of processes and the number of workstations from 6 to 5 and will also reduce the waiting time in the production process. So after making the changes the order of processes for the manufacturing of Body part is given below:

Grinding

Turning

Milling & Cutting on V.M.C

Drilling

Threading

Figure 5

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The Table given below shows the different processes and their mean processing time for the manufacturing of Body:

PROCESSES

MEAN PROCESSING TIME ( in Minutes)

Grinding Turning Milling & Cutting Drilling Threading Table 19

0.666 1.916 0.5 2.886 1.333

The table given shows the number of machines/tools/people employed at different stages or different processes during the manufacturing process of the body part of the Ratchet Pipe Threaders:

PROCESSES

NUMBER OF MACHINES/TOOLS/PEOP LE 1 3 1 6 3 Table 20

Grinding Turning Milling & Cutting Drilling Threading

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The Table shows the different Arrival rates and Service rates for the different processes:

PROCESSES

NO. OF MACHINES/TOOLS/PEOPLE (k)

TIME (In Min.)

ARRIVAL RATE ( )

SERVICE RATE PER MACHINE () 90 31.3 120

TOTAL SERVICE RATE (k)

Grinding Turning Milling & Cutting Drilling Threading

1 3 1

0.666 1.916 0.5

90 90 93.9

90 93.9 120

6 3

2.866 1.333 Table 21

120 125.58

20.93 45

125.58 135

The previous Table shows the Arrival and Service rates for the different processes. Now the Utilization factors for the different processes are calculated. The Utilization factor can be calculated as: Utilization Factor = / k Where, = Arrival Rate = Service Rate k = No. of Machines/ Tools/ People

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The Table given below gives the Utilization Factors for different processes: PROCESSES Grinding Turning Milling & Cutting Drilling Threading Table 22 UTILIZATION FACTOR 1 0.958 0.7825 0.955 0.930

From the above Table it can be seen that all the processes are in stable state as all the processes has a Utilization Factor of 1 or less than 1.

Utilization Factor should be

So there is no bottleneck condition in the production process of Body. Now for the calculation for the manufacturing cycle time of the product, waiting time needs to be calculated. The waiting times for the individual processes will be calculated by using formulas for systems with single server and systems with multi server. The Table given below shows the individual waiting times for different processes during the manufacturing of Body part:

PROCESSES Grinding Turning Milling & Cutting


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WAITING TIME (in Min) 0 14.184 1.7988

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Drilling Threading Table 23

9.3796 5.543

The Table above gives the waiting times for all the processes during the manufacturing process. The total waiting time can be calculated by adding all the individual waiting times. Total Waiting Time = 0 + 14.184 + 1.7988 + 9.3796 + 5.543= 30.9054 minutes The total processing time can be calculated by adding all the individual processing times given in the Table 19. Total Processing Time = 0.666 + 1.916 + 0.5 + 2.866 + 1.333= 7.281 minutes The total cycle time for the manufacturing of Body can be calculated by adding the total waiting time and the total processing time. Cycle Time = 30.9054 + 7.281 Cycle Time = 38.1864 minutes Now the cycle time for the three parts is taken as = 38.1864 min. And cycle time for painting and assembling stage = 4.355 minutes Therefore the Total Cycle Time for the product can be calculated by adding these two times. Total Cycle Time = 38.1864 + 4.355= 42.5414 minutes. Therefore Total Cycle Time for the manufacturing of Ratchet Pipe Threaders = 42.5414 minutes. Now it can be seen that if V.M.C. is used for milling and cutting in place of simple milling and cutting machines the cycle time of the body part has decreased from 43.452 min to 38.1864 min and it has led to the decrease of overall cycle time from 47.807 min to 42.5414 min.

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Reduction in the cycle time of the product = 47.807

42.5414= 5.2656 minutes

Therefore the company can look to utilize its resources in a better way like using a V.M.C. Machine in the production process of the Body part of the Ratchet Pipe Threaders. The percentage reduction in the cycle time is given as = 5.2656 / 47.807= 0.1101 or 11.01% Therefore it reduces the cycle time by 11.01%.

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CHAPTER 5 FINDINGS, SUGGESTIONS & CONCLUSIONS

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FINDINGS & SUGGESTIONS Various findings and suggestions are given below: y Appropriate use of machines and resources during production is very important for the effective production process. If the machines and the resources are not properly utilized then it will affect the production process in a negative way. y For improving the productivity of the organization, analysis of its production process is necessary. It is only after analysing the production process that one can identify the problem areas or the areas where the improvement can be done. y Cycle time estimation is a major way of examining the efficiency of the production process. By estimating the cycle time it can be known that how much time is taken for the manufacturing of a product and then ways to reduce it can be established. y For higher efficiency of the production process cycle time of product should be low. It will reduce the cost of production and it will also attract customers because of its higher speed of fulfilling customer requirement. y y During the project a bottleneck condition was identified in the production process. There is a bottleneck condition present in the manufacturing process of the Body part of the product. y If bottleneck condition is present in the production process then it will surely affect the production process adversely, so every effort should be made to remove the bottleneck condition. y Improper utilization of the resources in one of the production process for the product will hamper the cycle time of the whole product and will also hamper the production capability of the company. y Various ways for improving the efficiency and reducing the manufacturing cycle time has been suggested and it has also been shown that cycle time reduces by 11% by applying one method. Sikkam Manipal University Page 88

Higher efficiency machine should be used at the workstation where it can be properly utilized and is affecting the cycle time in a better way i.e. reducing it.

CONCLUSION The research work embodied in this report is highly quantitative .However, based on our analysis of quantitative data, we prove, beyond doubt, that inappropriate use of Machines in terms of number and placement reduces production and our analysis calls for nothing less than the appropriate placement and usage of machines in order to maintain a good production level and reduce the production cycle time. Thus from the above chapters that have been discussed, we have arrived at precise conclusions at the end of each chapter, giving manufacturers a concise and clear insight into the importance of the proper utilization of the machines as well as the importance of reducing the cycle time of manufacturing. In the project I have analyzed the production process of a product and have analyzed the utilization of the different machines or resources used or employed during the production process. During one of the processes a bottleneck situation was found and there we have described two methods of tackling the bottleneck situation i.e. the machines at the bottleneck station can be made to work for extra time so that it can match the speed of the other workstations or else extra machines can be added at the workstations which are having the bottleneck situation. Technique for reducing the manufacturing cycle time has also been explained in the project. By properly utilizing and arranging the machines the cycle time can be easily reduced. In the project the cycle time has reduces by 11% by properly arranging and utilizing the available resources.

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MY LEARNING
MY LEARNING
It was a great learning experience I had during Summer Internship Program. I got knowledge of many of the concepts. Some of my leanings are:

1. The importance of a good production process is realised during this project. For the proper working of a organization a good production process is very important as it influences both the productivity and the market share of the organization. 2. It is always beneficial to work in an organization in order to understand the industry. 3. There are number of different departments in an organization and all the departments work differently for the same goal i.e. for the growth of the organization. So the major learning during this project was to understand how the different departments coordinate with each other. 4. Major learning was to know the culture of a manufacturing industry. The manufacturing industry culture is more serious and technical as compared to other industries. The

authorities in a manufacturing industry require very high technical knowledge. This thing makes difference from other industries and businesses. 5. In my six weeks of in plant training in Inder Industries, I Studied and learnt many things carried in the organization. This in plant training helped me in gaining more knowledge about the work and production carried out in the organization. 6. There was a good reaction and co-operation by the superiors and subordinates in Inder Industries. They helped me in collected the information regarding the different departments and production process.

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7. I got a clear picture about how the organization work is carried on and how the work is allotted and how it is carried out and duties and responsibilities of the employees in the organization .I Observed the different work techniques that are implemented and practiced in the organization. 8. I also got a lot of knowledge about various concepts while undergoing this project. I understood the concepts of bottlenecking, ways of removing them, concepts of queuing etc. during this project. 9. I also understood that for working in a manufacturing industry a lot of technical knowledge is required. I faced problems due to my lack of knowledge in the beginning but by the end of the internship i gained a lot of knowledge. 10. Finally this in plant training gave me the clear idea about the working condition which will help me in future days.

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BIBLIOGRAPHY
BIBLIOGRAPHY
y y y C.R. Kothari RESEARCH METHODOLOGY: Methods & Techniques Donald R Cooper, Pamela S Schindler Business Research Methods V. K. Kapoor OPERATIONS RESEARCH ( Techniques for Management)

Websites y y y www.wikipedia.com www.inderindia.com www.economywatch.com

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