A

PROJECT REPORT

ON

PRODUCTION AND OPERATIONS MANAGEMENT

OF

“FAG BEARINGS INDIA LIMITED” and

“ HI-TECH PLASTIC”

UNDERTAKEN TOWARDS THE PARTIAL FULFILLMENT OF MBA PROGRAMME

SUBMITTED TO:

DR. (PROF.) H J JANI

PREPARED BY:

SHWETA GODHANI (11039)

RUSHANK PATEL (11033)

PARTH TRIVEDI (11025)

KEYUR VARDE (11019)

G H PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT

SARDAR PATEL UNIVERSITY, VALLABH VIDHYANAGAR (2011 -2013)

PREFACE

As a part of the course curriculum, the second semester MBA students are required to prepare a project report on the production and operations of one large scale and one small scale company. The objective behind preparing this project report is to relate the management subjects taught in the classroom to their practical application and to get insight into practical situation.

The group decided to select FAG Bearings India Limited as a large scale company and undertook the study on the production and operation functions of the company. The group has prepared this project report on the basis of the information gathered during the visit to the company and from the website of the company.

This project is prepared for the academic purpose and inspite of our best efforts there may be some errors, which may please be excused.

ACKNOWLEDGEMENT

Through this acknowledgement, we express our sincere gratitude towards all those people who have contributed directly or indirectly in preparation of this project report, which has been a great learning experience for all of us.

We would like to thank Dr. H.J. Jani, the head of the Department of GHPIBM, Prof. K. Sai. Prasad, faculty of HRM, O.B., S.M., GHPIBM, Mrs. Jagruti Sharma, Executive HR of FAG Bearings India Limited, Mr. J.P. Nair, executive of Training and Development of FAG Bearings India Limited and the librarian of GHPIBM library for their support and for giving us the opportunity to accomplish such a task that has enriched our knowledge.

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INDEX

SR. No. TITLE PAGE NO.

1 INTRODUCTION TO THE COMPANY 4

2 ORGANISATION CHART 5

3 PLANT LOCATION OF THE COMPANY 6

4 PLANT LAYOUT OF THE COMPANY 7

5 PLANT CAPACITY OF THE COMPANY 9

6 MATERIALS REQUIREMENTS 10

7 PRODUCTION PROCESS 11

8 FINAL PRODUCTS OF THE COMPANY 14

9 PURCHASE MANAGEMENT 17

10 MATERIAILS HANDLING EQUIPMENTS 18

11 INVENTORY MANAGEMENT 19

12 MAINTENANCE OF THE MACHINERIES 20

13 STORES MANAGEMENT (WAREHOUSING) 21

14 QUALITY MANGEMENT 22

15 SAFETY OF THE EMPLOYEES 24

16 ENVIRONMENTAL CONCERN AND WASTE DISPOSAL

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17 BIBLIOGRAPHY 27

18 HI-TEC PLASTIC ( SMALL SCALE FIRM ) 28

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1. INTRODUCTION TO THE COMPANY

Fischer Aktien Gesselschaft (FAG) is the oldest ball bearing manufacturer in the world, the pioneer of the rolling bearing industry.

FAG Bearings India Limited, a member company of FAG group of Germany - is a leading player in the Indian Bearing industry. The company manufactures a very wide range of bearings conforming to the stringent international quality standards.

FAG India's manufacturing plants, located at Vadodara, Gujarat, feature the most advanced manufacturing technology. The company is certified to ISO/TS 16949, ISO 9001, and ISO 14001 standards. FAG India is a leading OEM supplier to the automotive industry, mechanical and electrical engineering industry, besides the Railways.

In 1997, FAG Bearings India Limited set up the country's first 100% EOU for bearings. Bearings produced at the EOU plant have gained ready acceptance and recognition of customers located in Europe, USA, Asia and Africa.

Brief History

In 1962, it was incorporated as Precision Bearings India Limited.   In 1986, the company name changed to FAG Precision Bearings Limited. In 1993, it became first Indian Bearing Company to achieve ISO 9001 certification. In 1997, EOU Project for Cylindrical roller bearings inaugurated. In 1998, it became first Indian Bearing Company to achieve QS 9000 certification. In 2000, set up India's first production facilities to produce hub bearings. In 2001, Launched Joint Venture company FAG Roller Bearings Private Limited to

manufacture taper roller bearings.

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2. ORGANISATIONAL CHART

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MANAGING DIRECTOR RJ ANAND PARA

PLANT MANAGER SM SHANWARE

HUMAN RESOURCE & ADMIN. NP ACHARYA

CHIEF FINANCIAL OFFICER S C PATEL

MARKETING SARABJIT SINGH

SEG. HEAD DGB ND SINHA

SEG. HEAD CRB/SRB

S MATHUR

TECH. & PROJECT HJ SHAH

PURCHASING PW MHASKAR

QUALITY MGMT. S DESPANDE

INTERNAL AUDIT

PRODUCT MKT. SARABJIT SINGH

AUTOMATION SARABJIT SINGH

3. PLANT LOCATION OF THE COMPANY

Plant Location

Plant location is the process of determining a geographical site for a firm’s operations achieving maximum operating economy and effectiveness.

Location of the company

FAG Bearings India Limited

Maneja, Vadodara – 390 013

The company is spread over 98,846 sq.mts of land.

The company is located its plan here because of:

Environmental concerns and situated far away from the residential area. Cheap availability of land. Availability of water, electricity and basic infrastructure facility Industrial area.

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4. PLANT LAYOUT OF THE COMPANY

Plant Layout

Plant layout, also known as “Facilities Layout” refers to the configuration of departments, work-centers and equipment and machinery with focus on the flow of materials or work through the production system.

Plant layout or facility layout means planning for location of all machines, equipments, utilities, work station, customer service areas, material storage areas, tool servicing areas, tool cribs, aisles, rest rooms, lunch rooms, coffee/tea bays, offices, and computer rooms and also planning for the patterns of flow of materials and people around, into and within the building.

Types of Layout

Process Layout or Functional Layout or Job Shop Layout Product Layout or Line Processing Layout or Flow-Line Layout Fixed Position Layout Cellular Manufacturing Layout Hybrid Layout

FAG Bearings India Limited follows process layout which involves a grouping together of similar machines in one department.

A quantity of raw material is issued to machines which performs the first operation. The machine may be situated anywhere in the factory. For the next operation, a different machine may be required, which may be situated in another part of the factory. The material should be transported to the other machine for the operation .Thus, material would move long distances along crisscrossing path. At one stage, material would be taken to a separate building, say, for a heat treatment, and then brought back for grinding. If machines in one department are engaged, the party finished product awaiting operations may be taken to the store and later reissued for production. Partly finished good would be waiting for processing in every department.

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5. PLANT CAPACITY OF THE COMPANY

Capacity

Capacity refers to the maximum load an operating unit can handle. The operating unit might be a plant, a department, a machine, a store or a worker. Capacity of a plant is the maximum rate of output the plant can produce.

Production capacity

The production capacity of a facility or a firm is the maximum rate of production the facility or the firm is capable of producing. It is usually expressed as volume of output per period of time (i.e. hour, day, week, month, quarter, and year).

Production capacity of the company during the past five years

Year Capacity In Millions (Bearings)

2011 502010 502009 49.72008 47.12007 43.3

Turnover of the company during the past five years

Year Turnover (In Rs. Millions)2011 10400.82010 7998.92009 7444.12008 64132007 5420.4

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6. MATERIALS REQUIREMENTS

Material

Materials are any commodity used directly or indirectly in producing a product or service such as raw materials, component parts, assemblies and supplies. In manufacturing organizations, the important inputs are referred to as 5 Ms viz. Men, Machines, Money, Materials, and Methods.

Material is an important and inevitable input of a production system since the cost of materials and cost on materials (cost incurred in purchasing and storing the materials) put together account for 50 to 85% of the production cost depending on the nature of the product and the type of the production system.

FAG Bearings India Limited uses following material in the producing bearings.

Races Balls Rollers Retainers Cages Seal and Shield Oil and grease Stainless Steel

The company purchases all these materials from the domestic suppliers (90%) as well as foreign suppliers (10%). The company is also purchasing the raw materials from the group of companies.

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7. PRODUCTION PROCESS

Production

Production implies the creation of goods and services to satisfy human needs. It involves conversion of inputs (resources) into output (products). It is a process by which, raw materials and other inputs are converted into finished goods.

The utilities or added value is the difference between the value of outputs and the value of inputs. The addition to inputs is brought about by alteration, transportation, storage or preservation and quality assurance

A process converts inputs into outputs in a production system.

Types of Processes

Conversion Process - Converting raw material into finished products. The conversion processes could be metallurgical or chemical or manufacturing or construct ring processes.

Manufacturing Process – Processes can be categorized into (1) Forming Process, (2) Machining Process and (3) Assembly Process

Testing Processes – Involves inspection and testing of products.

FAG Bearings India Limited follows the assembly process which involves assembly of bearings.

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BALL BEARING (FLOW CHART)

RAW MATERIAL BOUGHT OUT BOUGHT OUT TUBE/BAR/FORGING DULY GROUND DAILY FINISHED

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TUMBLING

LAPPING

LAPPING COOLANT

TO ETP (ETP SOLID WASTE TO SECURED LAND FILL)

BEARING ASSEMBLY

RINGS BALLS RETAINERS

TURNING (OFF-LOADED)

Z- GROOVING

HEAT TREATEMENT

FLUE GAS TO ATMOSPHERE

THROUGH STACKS (OFF-

LOADED)

GRINDING

USED COOLANT/OIL

GRINDING DUST TO SECURED

LAND FILL

HONING

TO ETP (ETP SOLID WASTE TO SECURED LAND FILL)

HONING DUST TO SECURED

LAND FILL

ROLLER BEARING (FLOW CHART)

RAW MATERIAL BOUGHT OUT BOUGHT OUT TUBE/BAR/FORGING DULY HEATED/TURNED DULY FINISHED

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RINGS ROLLERS RETAINERS

TURNING (OFF-LOADED)

STAMPING

HEAT TREATEMENT

FLUE GAS TO ATMOSPHERE

GRINDING

USED COOLANT/OIL

GRINDING DUST TO SECURED

LAND FILL

HONING

TO ETP (ETP SOLID WASTE TO SECURED LAND FILL)

HONING DUST TO SECURED

LAND FILL

GRINDING

HONING

BEARING ASSEMBLY

LAPPING COOLANT

TO ETP (ETP SOLID WASTE TO SECURED LAND FILL)

HEAT TREATEMENT

8. FINAL PRODUCTS OF THE COMPANY

The company manufactures a very wide range of bearings conforming to the stringent international quality standards.

Products of the company

Deep Groove Ball BearingsSingle row deep groove ball bearings can accommodate

radial and thrust loads and can be used at high speeds. Deep groove ball bearings are non-separable. The self-aligning capacity of deep groove ball bearings is limited. Sealed deep groove ball bearings are maintenance-free and make simple constructions possible. Thanks to these capabilities and their competitive price, they are the most commonly used bearings. Deep groove ball bearings are available as open basic design and with seals or shields at both sides. For manufacturing reasons, open bearings may have grooves in the outer ring or in the outer and the inner rings for seals or shields. 

Four point Ball Bearings Four-point bearings are single row angular contact ball bearings which can accommodate high axial loads in both directions and low radial loads. To ensure low friction, particularly at high speeds, an axial minimum load is required. Four-point bearings feature a split inner ring; this allows a large complement of balls to be filled in. The outer ring with ball set and the inner ring halves can be mounted individually. The self-aligning capability is very limited. Four-point bearings which are mounted as thrust bearings are loosely fitted in the housing to avoid radial loading.

Self Aligning Ball Bearings

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Self-aligning ball bearings are of the double row type, with a spherical outer ring raceway. Their self-aligning capability allows them to compensate for misalignments, shaft deflections, and housing deformations. Self-aligning ball bearings are available with a cylindrical or with a tapered bore. The bearings are not separable. Self-aligning ball bearings of series 12, 13, 22 and 23 are available with cylindrical and tapered bores. Self-aligning ball bearings with a bore taper 1:12 can be mounted either directly on a tapered shaft or on a cylindrical shaft using adapter sleeves.

Cylindrical Roller BearingSingle row cylindrical roller bearings are separable. This

facilitates mounting and dismounting. Both bearing rings can be given a tight fit. The modified line contact between rollers and raceways eliminates edge stressing. The various designs of cylindrical roller bearings are distinguished by the arrangement of their lips. Design NU has two lips on the outer ring, the inner ring being lipless. The inner ring of design N has two lips, the outer ring has none. Cylindrical roller bearings of designs NU and N are used as floating bearings. They are separable, which simplifies mounting and dismounting. Both rings can be fitted tightly.

Spherical Roller Bearing FAG Bearings India Limited's spherical roller bearings are made for heavy-duty applications. They feature two rows of symmetrical barrel rollers which can align freely in the spherical outer ring raceway, thus compensating for shaft deflections and misalignment of the bearing seats. FAG Bearings India Limited spherical roller bearings have a maximum number of long rollers with a large diameter. The close contact between the rollers and raceways yields a uniform stress distribution and a high load carrying capacity.

Tapered Roller BearingTapered roller bearings are separable; the cone with the roller

and cage assembly and the cup can be mounted separately. The modified line contact between rollers and raceways eliminates

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edge stressing. Tapered roller bearings accommodate high radial and axial loads. As tapered roller bearings can transmit axial loads only in one direction, a second, symmetrically arranged tapered roller bearing is usually needed for counter guidance. Tapered roller bearings can transmit radial and axial forces. Due to their particularly large contact angle tapered roller bearings of series 313 are intended for high axial loads.

MAJOR CLIENTS OF THE FAG

AUTOMOTIVE AUTO ANCILLIARY MACHINERY TRANSMISSION PRODUCTSAshok Leyland Autolec HMT Kirloskar PneumaticBajaj Auto Lucas TV LMW Greaves CottonEicher Tractors LALWFIAT India PRIME MOVERS Textools STEEL PLANTS & ROLLING MILLSFord India ABB Flat ProductsGeneral Motors BHEL MATERIAL HAANDLING Mukand IronHero Honda Bharat Bijlee Elecon SAILHMT Crompton Greaves Neyveli Lignite Corp.HMSI Ltd. Kirloskar Electricals THERMAL POWER PLANTSHyundai India NGEF ELECTRIC FANS BHEL John Deere Siemens Crompton NTPCKinetic Motors Polar LML Usha INDIAN RAILWAYSMahindra & Mahindra ICFMaruti Udhyog DLWNew Holland CLWPunjab Tractors RCFTAFE DCWTelco Zonal RailwaysTVS Motor CompanyYamaha Motor

9. PURCHASE MANAGEMENT

Purchasing

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Purchasing refers to the function of procuring of materials, supplies, machines, equipments, tools, spare parts and services required for meeting the needs of production department and maintenance department.

It is a managerial activity involving planning and policy formulation, research and development, strategies required for the proper selection of materials and sources of supply, negotiating with supplies for the best price terms, placing purchase order, follow-up to ensure timely delivery, co-coordinating with other departments’ viz. receiving, inwards inspection, stores and accounting (bills payable section).

FAG Bearings India Limited has centralized purchase department which responsible for overall requirements of the all the departments of the company. The need for purchase in any department is specified trough purchase requisition form which includes in detail description of the need. Then it is to be sent to the purchase department.

In order that FAG Bearings India Limited is supplied the best quality material, the company follows a very stringent three-stage process for approval of any steel supplier.

The same includes:

Product approval (Both by FAG Bearings India Limited and FAG-Germany). Quality system approval (By FAG Bearings India Limited). Process approval (Jointly by FAG Bearings India Limited and FAG-Germany).

After successful approval of the above, the supplier should also be in `A' (Very good) category in terms of both the vendor quality and delivery rating evaluation done by FAG every three months.

Hence, FAG Bearings India Limited requires that any material supplied to it be strictly in accordance with FAG Bearings India Limited guidelines. The company makes payment partly as advance and partly after receiving the order from the supplier.

10.MATERIALS HANDLING EQUIPMENTS

Materials Handling

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Materials handling is the art and science involving the moving, packaging, and storing of substance in any form.

In any industrial process, the product being manufactured passes through various phases and it needs to be transported from place to place. This could involve processes such as transporting of raw material to the machines and then shifting the machines from one station to another station and finally to the store or warehouse. This involves the use of material handling equipment.

Material handling system does not contribute directly to the product value, but it adds to the cost of the product and is therefore sometimes is referred to as a necessary evil. In fact, least handling is the best handling.

Classifications of Material Handling Equipments

The material handling system, based on design and operational characteristics can be broadly classified in to three groups as shown below:

Hoisting equipment Pure hoisting equipment: jacks, winches, pulley blocks etc. Cranes: EOT cranes, jib cranes etc. Elevators: lift elevator, bucket elevator etc. Conveying equipment: Belt conveyors, Chain conveyors, Screw conveyors, Apron conveyors. Surface and overhead equipment: Forklifts, Trucks, Railway cars, Overhead monorails.

FAG Bearings India Limited uses the following material handling equipments in its operations:

Roller Conveyors Fork Lift Trucks for internal movement of materials. Band Truck for internal movement of materials Trucks for the transportation of raw materials into the company and of finished goods

into the market.

11.INVENTORY MANAGE MENT

Inventory

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Inventory refers to any resource that has a certain value, which can be used at a future occasion when demand arises. Alternatively inventory may be defined as “stock of items kept on hand by an organization to be used to meet customer demand”.

Virtually every type of organization maintains some form of inventory. A manufacturing firm maintains inventory of raw materials, bought-out components, and semi finished goods or work in progress items, finished goods, spare parts for maintenance of equipment and machinery, inventory of skilled labor, liquid funds such as cash and also inventory of plant and equipment.

The inventory of FAG Bearings India Limited consists of the raw material, lubricants and the final products. The company is following “KAN-BAN” system. It is the means of signaling to the upstream workstation that the downstream work station is ready for the upstream station to produce another batch or parts.

Here no parts can be produced or moved without a Kanban card. It is based on the simple idea of replacement of containers of parts, one at a time. These containers are reserved for specific parts, are purposely kept small, and always contain the same standard number of parts for each part number.

12.MAINTENANCE OF THE MACHINERIES

Maintenance

It is defined as “that function of production management that is concerned with the day to day problem of keeping the physical plant in good operating condition. It is necessary to ensure

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the availability of the machines, building and services needed by other parts of the organization for the performance of their function at an optimum return on investment in machines, materials, and employees.

Two categories of maintenance activities in a firm are:

Maintaining building, parking lots, lawns, fences, services and utilities. Maintaining equipments, machinery, material handling equipments, transport vehicles,

tools, metrology tools (inspection gages), test instruments, office equipments (computer, fax, machines) etc.

FAG Bearings India Limited believes that only by engaging in continuous process and product oriented innovation, the company will succeed in the future. Therefore, to improve its position in the bearing industry, where the competition is stiff, FAG implemented Continuous Improvement Process (CIP), popularly known as CIP-culture.

CIP is a concept based on a continuous self-sustaining, learning and improvement process. The CIP supports FAG on its course to becoming a high performance organization and ensures that the best practices are implemented in all areas of operations. CIP makes FAG quicker and flexible. With CIP program, FAG can recognize target deviations even more quickly and take immediate counter measures.

The company launched the program "CIP for Production" in 1998, giving each of the employees the freedom to think and try new ideas. In addition, the company launched the program "CIP for Sales" and "CIP for Service" in 1999 and 2000 respectively. After only two years, CIP has become a firm part of its corporate culture. FAG also uses Total Processing Management (TPM) for maintenance purposes. It has checks over its machineries once in a week usually Thursday for maintenance purposes.

13.STORES MANAGEMENT (WAREHOUSING)

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Receiving and storing are important flow control activities in the material management chain. In industries, materials have to be stocked to meet the consumption requirements during the lead time due to delays by suppliers or due to unexpected increase in the consumption rate.

Ware housing

Ware housing is not the simple act of storing materials, but rather a package of services which enables the smooth flow of materials through the production departments without causing stoppage of production due to shortage of materials.

Store and Store-keeping

Store is a building where materials and goods are kept and preserved. It is a place where all kinds of material and goods are held in stock and storage or storekeeping is defined as the act of storing the goods.

FAG Bearings India Limited has about three to four warehouses within its factory in which the raw materials, semi finished goods, tools, lubricants and final products are stored.

14.QUALITY MANAGEMENT

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Quality is an important dimension of production and operations management. It is not enough to produce goods or services in the right quantity and at the right time; it is important to ensure that the goods and services produced are of the right quality. The consumer of the final product of a company needs a certain quantity of products of a quality appropriate ho his needs.

Quality

Quality is the performance of the product as per the commitment made by the producers to the customer.

Quality Systems

It is defined as “the collective plans, activities and events that are provided to ensure that a product, process or service will satisfy given needs.

Quality is a requirement at FAG and the basis for its work. The result is high quality of its products and services and the trust its customers, employees and suppliers place in it. It major focus is on zero defects company.

FAG Bearings India Limited is an ISO/TS 16949 – 2002 certified. It has also ISO 9001-2000 an ISO 14001-2004 certificates.

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15.SAFETY OF THE EMPLOYEES

Tremendous technological developments have taken place, are taking place and will take place in all fields of engineering. Health hazards due to air pollution, noise and contagious diseases are ever increasing in industrial environments and accidents in workplace during the course of work are causing partial or total disability to workers and sometimes even death of workers. Hence, the importance of industrial safety and prevention of accidents and health hazards is quite for production/operation managers. Health and safety are the basic need of workers.

Safety and Industrial Safety

Safety means freedom from the occurrence or risk of injury or loss. Industrial Safety refers to protection of workers from the dangers of industrial accidents. Thus, the main concern of industrial safety is to minimize hazards in the industries. Industrial Safety Management is concerned with reducing, controlling and eliminating hazards in industries. Safety measures must be implemented to reduce the chance of industrial accidents.

Environmental protection and work safety is a fundamental part of FAG’s management principles. The company aims to ensure the continued existence and success of company by establishing and maintaining a safe working environment that promotes the health and performance of company’s employees as well as taking active measures to protect the environment.

FAG takes comprehensive measures to protect its employees against health hazards and prevent damage to the environment. Comprehensive and effective emergency measures are in place at location to ensure that its employees and visitors are treated properly in the event of injury.

A pair of Safety/Electrical/Office shoes is provided to all the permanent employees, every year. Two aprons are provided to the employees working on the shop floor. Gumboots are

provided to the employees if their use is inevitable, depending upon the nature of their work.

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16.ENVIRONMENTAL CONCERN AND WASTE DISPOSAL

Today’ production managers are concerned more and more with pollution control and waste disposal which are key issues in protection of environment and social responsibility. There is increasing emphasis on reducing waste, recycling waste, using less toxic chemicals and using biodegradable materials for packaging.

Operations in organization whether it is a manufacturer or service provider can disturb the environment in many ways.

Pollution – Operations generating harmful by product wastes/effluents. Unsustainability – Operations using/consuming natural resources unsustainably. Resource depletion – Operations using natural resources wastefully and excessively. Causing disaster – Wrong choice of operations systems, processes and products. Disturbing nature’s cycles - Operations wasteful and in excess interfere with nature’s

cycles like water cycle, oxygen cycle and nitrogen cycle.

Operations function has contributed very significantly to environment damage. So it should also take responsibility for it and act to rectify the damage done and prevent any future damage.

Steps for elimination of environmental issues:

Eliminate waste product Recycle the waste Treatment of waste before it is released into environment Keep on improving the waste disposal methods Cleaner production, Non waste technology and Industrial Ecology Elimination of hazardous process

Effective Work Safety and Environmental Management

FAG actively uses a global work safety and environmental management system that is undergoing continuous improvement. The company elaborates forward-looking concepts that it implement in collaboration with its contractual partners. The company carries out regular checks across all areas to determine the extent to which these measures have been implemented and to monitor the success of its management system.

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17.BIBLIOGRAPHY

Chary S. N., Production and Operation Management, McGraw-Hill Companies, New Delhi, 4th Edition, 2010.

Bhat K Shridhara, Production and Operation Management, Himalaya Publishing House, Mumbai, 1st Edition, 2003.

Gaither Norman and Frazier Greg, Operation Management, Thomson Asia Pte Ltd. Singapore, 2nd Edition, 2002.

www.fag.co.in Annual Report of FAG for the year 2010.

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SMALL SCALE INDUSTRY ( HI-TECH PLASTIC)

Small scale industries have been playing a pivotal role in country’s overall economic growth, and have achieved steady progress over the last couple of years. From the perspective of industrial development in India, and hence the growth of the overall economy, SSIs have to play a prominent role, given that their labour intensiveness generates employment. The SSI segment also plays a major role in developing countries such as India in an effort to alleviate poverty and propel sustainable growth. They also lead to an equitable distribution of income due to the nature of business. Moreover, SSIs in countries such as India help in efficient allocation of resources by implementing labour intensive production processes, given the abundant supply of labour in these countries, wherein capital is scarce.

SSIs are contributing towards the increase in employment in India, next to agriculture. The food products industry generates the maximum employment. Also chemical and chemical products, machinery parts, wood products, basic metal industries, paper products and printing, hosiery and garments are contributing towards employment.

Small industry sector has performed exceedingly well and enabled our country to achieve a wide measure of industrial growth and diversification. By its less capital intensive and high labour absorption nature, SSI sector has made significant contributions to employment generation and also to rural industrialization. This sector is ideally suited to build on the strengths of our traditional skills and knowledge, by infusion of technologies, capital and innovative marketing practices. The opportunities in the small scale sector are enormous as they are less capital intensive, are promoted and supported by the Government and a number of subsidies are available.

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INDEX

SR NO. TITLE PAGE NO.

1 INTRODUCTION TO THE COMPANY 30

2 PLANT LOCATION 31

3 MATERIALS REQUIREMENT 32

4 PRODUCTION PROCESS 33

5 FINAL PRODUCTS OF THE COMPANY 36

6 MATERIALS HANDLING 37

7 STORES MANAGEMENT 38

8 MAINTENANCE AND SAFETY 38

9 BIBLIOGRAPHY 39

1. INTRODUCTION TO COMPANY 29

The firm was established in the year 1982 by Dilip Dalal. He started production of Plastic bags and the annual turnover of first year was 4-5 lacs. He also started producing plastic injection moulded items a few years later. He started his production with 4 workers in 1982. The total unit area of the firm is about 5000 sq.ft. AMUL is their major customer, as they supply plastic lids & plastic spoons to them. They started their firm with 1 machine which is now grown to a massive of 14 machines. As the requirement of AMUL increases Hi-tech plastic need to expand their machines. As the demand of AMUL increase demand for the production also increases simultaneously leads to the growth of this company.

Recently they are having a total of 70 employees, out of which there are 22 workers and others as the technical staff. Their recent turnover is 3.5-4 crore per annum.

It is an ISO 9001:2008 company.

2. PLANT LOCATION

30

Location of the company:Ranoli Village,Nr. High School,Vadodara, Gujarat - 391350

The company is spread over 5000 sq.ft. of land.

The company is located its plan here because of:

Cheap availability of land. Availability of water, electricity and basic infrastructure facility. It is an industrial area. Availability of cheap labour.

3. MATERIAL REQUIREMENTS

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Materials required for the production of PLASTIC SPOONS:

Poly-propylene (PP) Poly-styrene

Materials required for the production of PLASTIC LIDS:

Low density poly-ethylene (LDPE) High density poly-ethylene (HDPE)

Raw material suppliers:

Reliance Industry ltd. Vadodara Supreme Petro Chem. Maharashtra

4. PRODUCTION PROCESS

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Injection molding is a manufacturing process for producing parts from both thermoplastic and thermosetting plastic materials. Material is fed into a heated barrel, mixed, and forced into a mold cavity where it cools and hardens to the configuration of the mold cavity. After a product is designed, usually by an industrial designer or an engineer, molds are made by a mold maker (or toolmaker) from metal, usually either steel or aluminum, and precision-machined to form the features of the desired part. Injection molding is widely used for manufacturing a variety of parts, from the smallest component to entire body panels of required product.

Injection molding is used to create many things such as wire spools, packaging, bottle caps, automotive dashboards, pocket combs, and most other plastic products available today. Injection molding is the most common method of part manufacturing. It is ideal for producing high volumes of the same object. Some advantages of injection molding are high production rates, repeatable high tolerances, and the ability to use a wide range of materials, low labour cost, minimal scrap losses, and little need to finish parts after molding. Some disadvantages of this process are expensive equipment investment, potentially high running costs, and the need to design moldable parts.

Injection molding machines consist of a material hopper, an injection ram or screw-type plunger, and a heating unit. They are also known as presses, they hold the molds in which the components are shaped. Presses are rated by tonnage, which expresses the amount of clamping force that the machine can exert. This force keeps the mold closed during the injection process. Tonnage can vary from less than 5 tons to 6000 tons, with the higher figures used in comparatively few manufacturing operations. The total clamp force needed is determined by the projected area of the part being molded. This projected area is multiplied by a clamp force of from 2 to 8 tons for each square inch of the projected areas. As a rule of thumb, 4 or 5tons/inch2

can be used for most products. If the plastic material is very stiff, it will require more injection pressure to fill the mold, thus more clamp tonnage to hold the mold closed. The required force can also be determined by the material used and the size of the part, larger parts require higher clamping force.

The machine used for the production in Hi-Tech Plastic is Fully Automatic Screw type machine. A hopper is there which is completely filled with plastic granules of poly propylene or poly styrene for the production of spoons while high density polyethylene or low density polyethylene for the production of lids. Granules are allowed to flow through the heater where they are converted to a semi-liquid form by the heat provided by the heater. There are dies also known as molds which are prepared to form different shapes of spoons and lids as per the requirement of the customer. Mold or die are the common terms used to describe the tooling used to produce plastic parts in molding.

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Traditionally, molds have been expensive to manufacture. They were usually only used in mass production where thousands of parts were being produced. Molds are typically constructed from hardened steel, pre-hardened steel, aluminum, and/or beryllium-copper alloy. The choice of material to build a mold from is primarily one of economics, steel molds generally cost more to construct, but their longer lifespan will offset the higher initial cost over a higher number of parts made before wearing out. Pre-hardened steel molds are less wear resistant and are used for lower volume requirements or larger components. Aluminum molds can cost substantially less, and when designed and machined with modern computerized equipment, can be economical for molding tens or even hundreds of thousands of parts. Beryllium copper is used in areas of the mold which require fast heat removal or areas that see the most shear heat generated. The molds can be manufactured by either CNC machining or by using Electrical Discharge Machining processes.

The mold consists of two primary components, the injection mold (A plate) and the ejector mold (B plate). Plastic resin enters the mold through a sprue in the injection mold; the sprue bushing is to seal tightly against the nozzle of the injection barrel of the molding machine and to allow molten plastic to flow from the barrel into the mold, also known as cavity. The sprue bushing directs the molten plastic to the cavity images through channels that are machined into the faces of the A and B plates. These channels allow plastic to run along them, so they are referred to as runners. The molten plastic flows through the runner and enters one or more specialized gates and into the cavity geometry to form the desired part.

The amount of resin required to fill the sprue, runner and cavities of a mold is a shot. Trapped air in the mold can escape through air vents that are ground into the parting line of the mold. If the trapped air is not allowed to escape, it is compressed by the pressure of the incoming material and is squeezed into the corners of the cavity, where it prevents filling and causes other defects as well. The air can become so compressed that it ignites and burns the surrounding plastic material. To allow for removal of the molded part from the mold, the mold features must

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not overhang one another in the direction that the mold opens, unless parts of the mold are designed to move from between such overhangs when the mold opens (utilizing components called Lifters).

Sides of the part that appear parallel with the direction of draw (The axis of the cored position (hole) or insert is parallel to the up and down movement of the mold as it opens and closes) are typically angled slightly with (draft) to ease release of the part from the mold. Insufficient draft can cause deformation or damage. The draft required for mold release is primarily dependent on the depth of the cavity: the deeper the cavity, the more draft necessary. Shrinkage must also be taken into account when determining the draft required. If the skin is too thin, then the molded part will tend to shrink onto the cores that form them while cooling, and cling to those cores or part may warp, twist, blister or crack when the cavity is pulled away. The mold is usually designed so that the molded part reliably remains on the ejector (B) side of the mold when it opens, and draws the runner and the sprue out of the (A) side along with the parts. The part then falls freely when ejected from the (B) side. The molded part is cut (by the mold) from the runner system on ejection from the mold. Ejector pins, also known as knockout pin, is a circular pin placed in either half of the mold (usually the ejector half) which pushes the finished molded product, or runner system out of a mold.

The standard method of cooling is passing a coolant (usually water) through a series of holes drilled through the mold plates and connected by hoses to form a continuous pathway. The coolant absorbs heat from the mold (which has absorbed heat from the hot plastic) and keeps the mold at a proper temperature to solidify the plastic at the most efficient rate.

In a single die 20 to 30 units of spoon can be produced in 10 seconds whereas 8 units of lids are produced in 1 minute. After producing 10 lakh units the die is to be changed so as to get a proper product without any defect.

Packing Procedure

The die is designed such that 20 spoons can be produced at a time and for lids 1000 to 2000 numbers can be produced together in a sound polythene bags. These units are produced as a runner in the die and produced in series. After this each unit is broken to get the final spoon or lid. As per the requirement of AMUL, the company makes bundles of these units. AMUL require 12 spoons in a bundle. Packing standards are such that these bundles are packed in 2.5 kg polythene bags. Such four polythene bags of 2.5 kg are packed together in one corrugated box weighing 10 kg.

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5. FINAL PRODUCTS OF THE COMPANY

The final products of the company are as below:

Various types of plastic SPOONS. Various types of plastic LIDS.

Cheese Lid Nutramul Cap Masti Dahi Lid Ghee Lid Mithai Cap

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6. MATERIALS HANDLING

Materials Handling

Materials handling is the art and science involving the moving, packaging, and storing of substance in any form. In any industrial process, the product being manufactured passes through various phases and it needs to be transported from place to place. This could involve processes such as transporting of raw material to the machines and then shifting the machines from one station to another station and finally to the store or warehouse. This involves the use of material handling equipment.

Material handling system does not contribute directly to the product value, but it adds to the cost of the product and is therefore sometimes is referred to as a necessary evil. In fact, least handling is the best handling.

It is a small firm so handling of the material is not a big problem. And also movement of materials is less.

Material handling equipment:

It uses hand truck to move the corrugated box from one place to another.

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7. STORES

Raw materials are easily available in the local market. Even imported raw material can be available. But storing the purchased material is essential. If sufficient quantity of raw material is stored in the firm any increase in demand can be fulfilled. Amul is the major customer of Hi-Tech Plastic so their requirements are always known to the firm. So this firm stores material which can fulfills their customer requirement. And the firm need not to keep large stock as the demand for its product is not fluctuating.

8. MAINTENANCE AND SAFETY

Maintaining safety is the prior concern of this firm. The firm provides free medical facilities to all its employees. Some of its equipments are old so it requires periodic maintenance for its proper functioning and to avoid breakdowns and accidents. The company follows scheduled maintenance for maintaining its machines and equipments. The company has 14 machines and they are lubricated and

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9. BIBLIOGRAPHY

S. N. CHARY; production and operation management; 4th edition; The McGraw –Hill companies

www.asiancerc.com

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