COLLEGE OF ENGINEERING BHUBANESWAR [CEB

]
PLOT -1, SECTOR -B, CNI COMPLEX, PATIA, BHUBANESWAR- 751024

www.coeb.org

This is to certify that the project report entitled “Investment Casting of Lost Wax Type” is a bonafide record of work done by the 8th semester students of 4th year in partial fulfillment of “ Bachelor of Technology in Mechanical Engineering “ during the academic year of 2005-2009 at College of Engineering, Bhubaneswar .

Project Guide
Mohapatra Er. Samir Mohanty Senior Lecturer in Mech. Engg.
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Er. M. M. Head of Department Mechanical Engineering

This is to certify that the following students have successfully completed the Entrepreneurship Project on Investment Casting of Lost Wax Type
 Praveen Kumar

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 Rashmi Kant Rout-----------------------------------------------------

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 Manoj Kumar-----------------------------------------------------------

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 Himanshu Sekhar Pradhan-----------------------------------------

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 Rajesh Ranjan Samal-------------------------------------------------

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 Anand Ratna------------------------------------------------------------

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 Namrata Sinha---------------------------------------------------------

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 Abhishek Rezi----------------------------------------------------------

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 Abhijit Roy--------------------------------------------------------------

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 Manish Kumar Singh------------------------------------------------

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 Piyush Priyadarshi----------------------------------------------------

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 Pritpal Singh------------------------------------------------------------

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Project Guide
Mohapatra Er. Samir Mohanty Senior Lecturer in Mech. Engg.

Er. M. M. Head of Department Mechanical Engineering

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During the final semester of B.TECH in MECHANICAL ENGINEERING a curriculum assignment has to be taken as an entrepreneurship project. Our Entrepreneurship project is “Investment Casting of Lost Wax Type” a complete task of starting from concept analysis to project preparation; the entire has been done under the guidance of our project guide Mr. Samir Mohanty (Senior Lecturer in Mechanical Engineering –College of Engineering Bhubaneswar) . In today's scenario, the Investment Casting is used in the aerospace and power generation industries to produce turbine blades with complex shapes or cooling systems. Blades produced by investment casting can include singlecrystal (SX), directionally solidified (DS), or conventional equiaxed blades. It is also widely used by firearms manufacturers to fabricate firearm receivers, triggers, hammers, and other precision parts at low cost. Other industries that use standard investment-cast parts include military, medical, commercial and automotive. Investment casting offers high production rates, particularly for small or highly complex components, and extremely good surface finish with very little machining The R.K Engineers & Manufacturers offers Investment Casting Products of highly complex type. While preparation of this project every care has been taken to avoid any mistakes and errors. Some errors might have crept in advertently.

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================================

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We gratefully acknowledge the authorities of College of Engineering Bhubaneswar of the “Mechanical Engineering Department” for their wide co-operation in the completion of this project. We express our deep sense of gratitude to our project guide Mr. Samir Mohanty & Mr. Rajesh Kumar Behera (Senior Lecturer in Mechanical EngineeringCollege of Engineering Bhubaneswar [CEB]) who constantly guided & advised us at various levels in the successful completion of the entrepreneurship project. We thank the entire staff of Department for helping us in this project. Mechanical

Last but not the least we want to thank all those who have directly or indirectly helped us during the course of our entrepreneurship project work.

********************************

TABLE
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OF

CONTENTS

1. WHAT IS ENTREPRENEURSHIP ?....................................................

2. WHO IS AN ENTREPRENEUR ?......................................................... 3. NEED OF ENTREPRENEURSHIP…………………………………... 4. TYPES OF ENTREPRENEURSHIP…………………………………. 5. FACTORS AFFECTING ENTREPRENEURSHIP………………… 6. BASIC PROBLEMS OF MARGINAL ENTERPRENEURSHIP… 7. IMPACT OF BIG ENTREPRENEURSHIP ACTIVITY………….. 8. INVESTMENT CASTING OF LOST WAX TYPE- COMPANY PROFILE 9. WHAT IS INVESTMENT CASTING……………………………... 10. BENEFITS OF THE PROCESS……………………………………. 11. PROCESS CHARACTERISTICS…………………………………. 12. FUTURE PROCESS AND DEVELOPMENT…………………… 13. OVERVIEW OF THE INVESTMENT CASTING PROCESS... 14. SCOPES OF INVESTMENT CASTING……………………….. 15. TOTAL COST TO ESTABLISH THE PLANT………………… 16. CONCLUSION……………………………………………………. 17. BIBLIOGRAPHY………………………………………………….

WHAT IS ENTREPRENEURSHIP
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Entrepreneurship is the practice of starting new organizations or

revitalizing mature organizations, particularly new businesses generally in response to identified opportunities. Entrepreneurship is often a difficult undertaking, as a vast majority of new businesses fail. Entrepreneurial activities are substantially different depending on the type of organization that is being started. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities. Many "high-profile" entrepreneurial ventures seek venture capital or angel funding in order to raise capital to build the business. Angel investors generally seek returns of 20-30% and more extensive involvement in the business. Many kinds of organizations now exist to support would-be entrepreneurs, including specialized government agencies, business incubators, science parks, and some NGOs. Entrepreneurship in a broader sense can be described as a process of action an entrepreneur undertakes to establish his enterprise. It is a creative and innovative response to the environment. Entrepreneurship is the inclination (attitude) of mind to take calculated risk with confidence to a predetermined business or individual objective. Entrepreneurship means the function of creating something new, organizing and co-ordinating, undertaking risk and handling economic uncertainty.

WHO IS AN ENTREPRENEUR ?
An entrepreneur is a person who has possession over a new enterprise or venture and assumes full accountability for the inherent risks and the outcomes. The term is a loanword from French and was first defined by the Irish economist Richard Cantillon. A female entrepreneur is sometimes known as an entrepreneuse. However, with the word "entrepreneuse" being the French feminine form of entrepreneur, its usage in English in delineating sexes detracts from the meaning of the word "Entrepreneur." Entrepreneur in English is a term applied to the type of personality who is willing to take upon her self or himself a

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new venture or enterprise and accepts full responsibility for the outcome. The modern myths about entrepreneurs include the idea that they assume the risks involved to undertake a business venture, but that interpretation now appears to be based on a false translation of Cantillon's and Say's ideas. The research data indicate that successful entrepreneurs are actually risk averse. They are successful because their passion for an outcome leads them to organize available resources in new and more valuable ways. In doing so, they are said to efficiently and effectively use the factors of production. Those factors are now deemed to include at least the following elements: land (natural resources), labour (human input into production using available resources), capital (any type of equipment used in production i.e. machinery), intelligence and knowledge, and creativity. A person who can efficiently manage these factors in pursuit of a real opportunity to add value in the long-run, may expand (future prospects of larger firms and businesses) and become successful. Entrepreneurship is often difficult and tricky, as many new ventures fail. Entrepreneur is often synonymous with founder. Most commonly, the term entrepreneur applies to someone who creates value by offering a product or service. Entrepreneurs often have strong beliefs about a market opportunity and organize their resources effectively to accomplish an outcome that changes existing interactions. Some observers see them as being willing to accept a high level of personal, professional or financial risk to pursue that opportunity, but the emerging evidence indicates they are more passionate experts than gamblers. Business entrepreneurs are viewed as fundamentally important in the capitalistic society. Some distinguish business entrepreneurs as either "political entrepreneurs" or "market entrepreneurs," while social entrepreneurs' principal objectives include the creation of a social and /or environmental benefit. Entrepreneurs are men of vision, drive and talent, who spot our opportunities and promptly grasp them for exploition. Entrepreneur is an individual
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who introduces something new into the economy, a new method of production, a new product with which the consumers are not familiar, a new source of raw-material or new market and the alike.

NEED OF AN ENTREPRENEUR
Entrepreneurs play an important role in developing and contributing to the economy of a nation. It is all the more in a developing world where are ample opportunities for innovations to exploit the available resources and initiate entrepreneurial ventures. But the emergence of entrepreneurship in all countries and in all parts of any country is not usually even. Commonly we see more entrepreneurs in comparatively more developed areas. Another paradox exists in terms of increasing number of unemployed population, seeking wage earners career and unaware of the wide opportunities for entrepreneurial career. This is, by and large, because of lack of education about entrepreneurship. The business entrepreneur, the archetypal enterprising person, has become the focus of interest in many nations as an instigator of social and economic change. The search is on for more and better ways of creating enterprising people and specially for developing entrepreneurs. For this, the role of education and training is typically very important. Education is a strong influencing media that sets values, develops attitudes and motivation and induce people to acquire skills and competencies to achieve goals. The word ‘education’ can be linked to the word ‘enterprise’ in three ways – Education about enterprise in which the role of education is in raising awareness of enterprise and entrepreneurship as a key change agent in economic process.
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Education through enterprise in which the education process itself can be enhanced by using pedagogic styles which work in and makes use of enterprising situations including the student concerned and real world project driven approaches Education for enterprise which is aimed at entrepreneurship development and includes training existing entrepreneurs as well as for new business start-up.

TYPES OF ENTREPRENEUR
I have made the point that the one trait common to all entrepreneurial hearts is a drive toward “independence,” and I added that varying levels of that independent spirit serve to create a scale on which we could find and define different types of entrepreneurs. I’d like to expand on those thoughts. The notion of differing “types” of entrepreneurs is only important if one is in some way connected to the world of self-employment. And frankly, unless a person has a direct use for this type of information, the subject is boring. But guess what? At least 25% of Americans are plugged directly into the subject as small business owners, employees of those businesses, or family members of entrepreneurs. As stated before, using a broad brush to define the entrepreneurial personality will not work for serious entrepreneurs because it leaves too many possibilities to examine, too many roads to travel that are unnecessary as one decides on their future. In a nutshell, it is neither forward thinking nor efficient to lump together, all the players and all the personalities. Making broad assumptions about the entrepreneurial personality can also lead to danger and business failure. Over time I have identified at least five distinct entrepreneurial types, and that discovery represents a major step up from the “quick fix” tests that claim to evaluate one’s entrepreneurial personality in a few minutes time. You know the tests I’m talking about. The ones found in pop magazines. The multiple choice
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questionnaires that help puff up the ego and encourage us to think of ourselves as independent, entrepreneurial leaders with “all the right stuff.” Folks, not all of us have the right stuff for the entrepreneurial lifestyle, but then again, most entrepreneurs do not possess the right stuff to make it as great corporate staffers at the highest levels. Why? Because they tend to upset the apple cart and make other staff uncomfortable. The question is not whether a test says a person can be or should be an entrepreneur. The issue is whether or not a person knows in their heart what “type” of entrepreneur they are, if any, before the journey begins. There is little or no value associated with a 15minute personality test that gives people a green light to buy a franchise. Could that test possibly provide better analysis than a system that allows a person to “think through” ownership issues on their own? There is little value in those tests, and there is little value in pursuing an entrepreneurial lifestyle based on what other people claim to be “hot” new opportunities. It is the opinion of the prospective entrepreneur that matters most, but unfortunately we have been conditioned to accept salesmanship and promotion rather than thinking for ourselves. The more informed and definite we become concerning our traits and objectives, the better choices we are able to make. First, is the Intrapreneur!! Although tied to the “other owned” organization where they are employed, the intrapreneur enjoys independent responsibilities where risk and reputation are part of the assignment. What kinds of assignments would those be? Heading up a take-over or merger. Implementation of a new business development plan. Finally, the Practical Visionary (?) with the question mark following the term grabs for the greatest measure of independence. This person follows their heart and their dream with great gusto, but the question mark is attached because until the vision is proven, its practical value and acceptance by the marketplace remains a question.

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FACTORS AFFECTING ENTREPRENEURSHIP
       Psychology Human Capital Life Course Stage Environment Social Networks (Gender) Ethnic Resources

Culture and Entrepreneurship
• Culture: shared cognitions, values, norms and expressive symbols of a society or Subgroup

Culture as a Socialization Agent
Supply-side Mechanism: Individuals are socialized into a society’s or group’s culture which encourages entrepreneurship Examples: • Protestant Ethic and Capitalism (Weber) • Soviet / communist culture and effect on

Entrepreneurship Culture as Legitimating Agent
• Demand-side Mechanism: Environmental factors (widely-held rules and beliefs) affect the demand for entrepreneurial activity. • Individuals, organizations, products, and markets conform to these rules and beliefs in order to gain legitimacy and gain access to resources in order to survive.

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• To gain legitimacy new ventures must present themselves within societal norms, so others can believe in their future success as a business

Rationalized Environments
• Institutional Theory in Sociology – Focuses on cognitive, normative, and regulatory structures that provide meaning to social behavior • Main Thesis – Environments in which organizations must operate have become rationalized, i.e., organizations are subject to prescribed rules and ideologies regarding proper organizational practices or forms; – Rationalization leads to a world society, an orderly society

Loci of Rationalization
• Elite Organizations – Provide models for successful organizing • Nation-State – Constructs laws and policies for the public good • Sciences and Professions – Knowledge system as demystifying nature; “truths” about how the social system works

BASIC PROBLEMS OF SMALL ENTREPRENEURSHIP
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Probably the most uncomfortable are the political and ethnical ones. According to different surveys, the most frequent complaints concern constantly changing laws, high tax rates, lack of capital, complicated access to credit, lack of working capital, high competition, and bureaucracy. The basic problem is the huge and constantly growing amount of administrative costs, the extraction of extra-legal fees for permissions and approvals, and the high pressure of corruption. The state's participation in business, its interference in competition and its violation of the rights of entrepreneurs are serious barriers. Currently, the pressure on leu, Romanian national currency. After 15 years of constant depreciation of the leu, since last autumn we have been witnessing the opposite situation. Entrepreneurs are having a hard time to adapt, especially the ones who export in Europe. Access to capital, a labor code that is very much in favor of the employees, and competition from China and other Asian countries are other constraints to developing entrepreneurship.

IMPACT OF BIG ENTREPNUERSHIP ACTIVITY
The importance of entrepreneurship for achieving economic growth in contemporary economies is widely recognized, both by policy makers and economists. However, empirical evidence linking entrepreneurship to economic growth is scarce. This paper investigates the relation between entrepreneurship and economic growth at the country and regional level. It contributes to the understanding of how entrepreneurship may affect economic growth. It is investigated whether the impact of entrepreneurship on economic growth varies with the development level of an economy, with the sector of economic activity, and with the quantity and quality of entrepreneurial supply.

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Investment Casting of Lost Wax Type COMPANY PROFILE
Investment casting is used in the aerospace and power generation industries to produce turbine blades with complex shapes or cooling systems. Blades produced by investment casting can include single-crystal (SX), directionally solidified (DS), or conventional equiaxed blades. It is also widely used by firearms manufacturers to fabricate firearm receivers, triggers, hammers, and other precision parts at low cost. Other industries that use standard investment-cast parts include military, medical, commercial and automotive. Investment casting offers high production rates, particularly for small or highly complex components, and extremely good surface finish with very little machining. R.K Engineers & Manufacturers is a quality manufacturer of Investment Casting & Precision Investment Castings by lost wax process. R.K Engineers & Manufacturers offers highest quality of engineering by its ultra modern plant equipped with all latest Investment Casting Equipments and high tech laboratory. R.K Engineers & Manufacturers is an Investment casting company in India producing Ferrous & Non Ferrous castings. We are involved in Producing Cheap and very high Quality Investment castings as on customized requirements for Auto, Engineering, Pumps, Valves, Medical Equipments, and Chemical Industry etc.

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What Is Investment Casting ?
Investment casting converts molten metal in a single operation to precision engineered components with a minimum wastage of material and energy and subsequent machining. It has a versatility approached by few other metal forming processes. Intricate or re-entrant contours can be incorporated. These features offer great freedom of design with the process. The versatility of the technique extends to materials, since virtually any alloy can be cast. Castings of over 250 kg and an envelope of 1 cubic metre are common place. The IC process is distinguished by the use of an expendable pattern. A metal die is usually used to produce the pattern, now almost universally of wax. These injection dies are normally made of duralumin or brass. Preformed ceramic or water soluble cores may be used to give precision internal cavities and these are located in the wax die prior to injection. Patterns can be mounted onto a runner system to give an assembly ready for subsequent coating with refractory. Industrial investment casting is based on the ceramic shell process where the wax assembly is dipped into thin refractory slurry and after draining, fine grains of refractory are deposited onto the damp surface, providing a primary refractory coating. The primary coat typically contains a zircon based refractory while the binders used are either alcohol based (ethyl silicate) or water based (silica sol) or a hybrid of these. When the primary coat has hardened or set, subsequent cycles of ‘wet’ dipping and dry ‘sanding’ build up the thickness of the invested material to provide a refractory shell that, when fully hardened, is sufficiently strong to hold the liquid metal during casting. At the end of the investing process, the wax pattern material is removed by thermal means, steam autoclaving being usual. The mould is heated to a high temperature to eliminate any residual wax and to induce chemical and physical change in the refractory
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that will ensure maximum strength and stability combined with minimal reaction between the mould surface and the liquid metal to be poured into the investment casting for lost wax type. The majority of investment casting foundries has air melting facilities and cast a wide range of materials. Steel casting furnaces tend to be of the roll over or tilt induction melting type, whilst for many of the more advanced nickel super alloys, vacuum melting / casting is essential. In the case of aluminum investment castings, melting may be by gas or electricity, while various methods of pouring the molten metal are in use (e.g. it may be gravity vacuum or pressure assisted) These are the methods of pouring. When the mould has cooled sufficiently, the mould material is removed to leave the castings which are then separated from the running system. Various post–casting operations may be carried out to meet customer requirements.

Benefits of the Process
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The benefits of the investment casting process may be summed up by the four words accuracy, versatility, integrity and finish. Few if any alternative metal forming methods can offer such a unique and broad spectrum of advantages. Accuracy and versatility stem from the use of a one piece mould without a joint line or the need for draft angles. These features not only give rise to a component shape that is aesthetic and uniform; they also allow the process to give, on a regular basis, consistent and repetitive close tolerances, intricate and re-entrant contours (many impossible to create economically by alternative manufacturing techniques) and competitive cost ratios. Versatility extends to the choice of materials since virtually all alloys can be investment cast. Utilising the aluminum die form ensures tooling is relatively cheap and is adaptable should design changes be necessary. It also enables relatively small quantities, typically for research and development trials, to be produced prior to commitment to production quantities. Casting integrity is an important feature of the process and investment casting has a long history of serving the most demanding sectors of industry. This has promoted a tradition of quality and reliability, an aspect that by recent work to develop production methods of guaranteed integrity has resulted in fatigue performances equal to that given by forgings measured longitudinally. Based on this work, investment castings are now beginning to replace forgings and machined components in fatigue related environments. Other advantages arise from the high degree of dimensional accuracy, + or - 0.13 mm per 25 mm with improvements up to + or - 0.08 mm per 25 mm and the excellent surface finish that can be routinely achieved, typically 1.5 to 3.2 microns with improvements up to 0.8 microns. Typical minimum wall thickness of 1.5 mm with thinner sections of 1 mm is possible. Tolerances quoted should be taken as a guide, as they may vary depending on the complexity and configuration of the component. Consistency from casting to casting will generally be within the tolerances indicated with individual foundries being able to advice on this point. These characteristics
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minimize the requirements for machining, in some cases eliminating it entirely, and this leads to substantial savings in raw materials, labour costs and capital expenditure, reduces and simplifies production control and simplifies assembly operations. These benefits individually offer great competitive advantages; collectively they suggest an overwhelming case for the consideration of investment casting as the most economic method of forming for a wide range of metal components.

Process Characteristics
• • • • • •

FREEDOM OF DESIGN HIGH PRODUCTION RATES HIGH DIMENSIONAL ACCURACY HIGH DIMENSIONAL CONSISTENCY HIGH INTEGRITY CASTINGS EXTREMELY GOOD SURFACE FINISH CAN BE OBTAINED

• • • • •

COMPLEX SHAPES CAN BE CAST LONG/SHORT RUNS CAN BE ACCOMMODATED MACHINING CAN BE REDUCED OR ELIMINATED MINIMUM FINISHING OF CASTINGS REQUIRED ALMOST ANY ALLOY CAN BE CAST ENVIRONMENTALLY FRIENDLY PROCESS

Most industries requiring castings are catered for but investment castings are admirably suited for high technology, high volume orders especially in respect of the aeronautical industry. The petroleum, chemical, electronic, defence, prosthetic and automobile industries are also large users of castings produced by the process.

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Future Potential & Development
With the development of rapid prototyping techniques for the

production of patterns and shells it is now possible to produce investment castings quickly with lead times reduced to less than two weeks. Work done in BICTA Committees on high integrity castings utilizing vacuum produced ingot and melting and Hipping will ensure the process will further replace welded and forged components extending the field of use of investment castings in the forming of the lost wax type. Casting size and weight will increase with 1 cubic metre plus envelopes and 500Kg castings becoming commonplace in steel. With the use of improved melting techniques and larger melting and casting facilities investment castings can be shown to be the fastest growing metal forming technique and investment casting now represents some 15% of all metal cast in the UK.

OVERVIEW OF THE INVESTMENT CASTING PROCESS
Investment casting, often called lost wax casting, is regarded as a precision casting process to fabricate near-net-shaped metal parts from almost any alloy. Although its history lies to a great extent in the production of art, the most common use of investment casting in more recent history has been the production of components requiring complex, often thin-wall castings. While a complete
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description of the process is beyond the scope of the discussion here, the sequential steps of the investment casting process will be briefly described, with emphasis on casting from rapid prototyping patterns. The investment casting process begins with fabrication of a sacrificial pattern with the same basic geometrical shape as the finished cast part. Patterns are normally made of investment casting wax that is injected into a metal wax injection die. Fabricating the injection die often costs tens of thousands of dollars and can require several months of lead time. Once a wax pattern is produced, it is assembled with other wax components to form a metal delivery system, called the gate and runner system. The entire wax assembly is then dipped in ceramic slurry, covered with sand stucco, and allowed to dry. The dipping and stuccoing process is repeated until a shell of ~6-8 mm (1/4-3/8 in) is applied. Once the ceramic has dried, the entire assembly is placed in a steam autoclave to remove most of the wax. After autoclaving, the remaining amount of wax that soaked into the ceramic shell is burned out in a furnace. At this point, all of the residual pattern and gating material is removed, and the ceramic mold remains. The mold is then preheated to a specific temperature and filled with molten metal, creating the metal casting. Once the casting has cooled sufficiently, the mold shell is chipped away from the casting. Next, the gates and runners are cut from the casting, and final post processing (sandblasting, machining) is done to finish the casting.

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Investment Casting Process Description

Investment Casting Process Description

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Investment Casting Process Description

Scopes of Investment Casting
Design flexibility
Investment casting produces near-net-shape configurations, offering designers and engineer’s freedom of design in a wide range of alloys. The process is capable of producing precise detail and dimensional accuracy in parts weighing many pounds or just a few ounces.

Wide choice of alloys
More than 120 ferrous and nonferrous metals are routinely cast at Hitchiner.

Elimination of tooling setup
By offering near-net-shape configuration, fixturing costs are substantially reduced or eliminated.
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Reduction of production costs
Costly machining operations are reduced and often eliminated. No capital equipment investment is needed to produce parts inhouse.

Reduction of assembly operations
Several parts can be made as one casting, reducing handling, assembly and inspection costs.

Reproduction of fine details
Splines, holes, bosses, lettering, serrations and even some threads can be cast.

Process Comparison Chart

Process
Investment Cast Die Cast Forging Permanent Mold Plaster Mold Powder Metal Resin Shell Mold Sand Cast

Tool Cost Avg. High High Avg.

Unit Cost High Low Avg. Avg.

Metal Options Most Few Avg. Avg.

Design Freedom Most Least Least Avg.

Volume Capabil. All High High All

Draft Req'd No Yes Yes Yes

Tolerance Control Avg. Avg. Poor Avg.

Size Range Avg. Avg. Avg. Avg.

Surface Finish Avg. Avg. Poor Avg.

Wall Min. Small* Avg. Large Large

Normal Delivery Avg. Avg. Long Avg.

Low

High

Few

Avg.

Low

Yes

Avg.

Avg.

Avg.

Large

Short

Avg.

Low

Avg.

Least

High

No

Best

Small

Best

Small

Avg.

Avg.

Avg.

Avg.

Avg.

All

Yes

Avg.

Avg.

Poor

Large

Avg.

Low

Avg.

Most

Avg.

All

Yes

Poor

Large

Poor

Large

Short

Rights of Land
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We are on the process of submitting a memorandum for acquiring 30,000 sq. meters of land at Adityapur Industrial Area Development (AIDA), Jamshedpur. This will be completed after the state government sanctions us a plot to set up our manufacturing unit.

Required Approvals & Licensing
 NOC for acquiring land.  NOC from the inspector for factories and boilers. Clearance from the state pollution control board (OSPCB).

PROJECT IMPLEMENTATION AND ORGANISATIONAL ASPECTS Basis and Presumptions
i) The basis for calculation of production capacity has been taken on single shift basis on 75% efficiency. ii) The maximum capacity utilization on single shift basis for 300 days a year. During first year and second year of operations the utilization is 60% and 80% respectively. The unit is expected to achieve full capacity utilization from the third year onwards. iii) The salaries and wages, cost of raw materials, utilities, rents, etc. are based on the prevailing rates in and around Bhubaneswar. These cost factors are likely to vary with time and location. iv) Interest on term loan and working capital loan has been taken at the rate of 16% on an average. This rate may vary depending upon the policy of the financial institutions/agencies from time to time. v) The cost of machinery and equipments refer to a particular make/model and prices are approximate. vi) The break-even point percentage indicated is of full capacity utilization.
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vii) The project preparation cost etc. whenever required could be considered under pre-operative expenses.

ANNEXURE- 2 Implementation Schedule
The major activities in the implementation of the project have been listed and the average time for implementation of the project is estimated at 12 months:

Sl.No .
1. 2. 3. 4.

Name of Activity
Preparation of project report Registration and other formalities Sanction of loan by financial institutions Plant and Machinery: (a) Placement of orders (b) Procurement (c) Power connection/ Electrification d) Installation/Erection of machinery/Test Equipment

Period in Months (Estimate d)
1 1 3

1 2 2 2 2 2 11

5. 6. 7.

Procurement of raw materials Recruitment of Technical Personnel etc. Trial production

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8.

Commercial production

12

Application Areas
• • • • •

Idol Ornaments Jewellery Blade of Turbine Blade of Jet

Cost Required for the Establishment of the Plant

Fixed cost Cost of equipments required

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Items Shovel Riddle Floor rammer Bench rammer Swab Gate cutter Inside square Box flask Trowel Lifter Sand cutter Furnace Moulding flask Land Cost of const. of line

Numbers 50 50 50 50 150 150 500 50 50 150 150 1 500 1,00,000 sq. feet

Cost/item (in Rs.) 500 500 1000 800 750 150 250 2000 5000 115 150 1,000,000 5000 400

Total Cost (in Rs) 25,000 25,000 50,000 40,000 1,12,500 22,500 1,25,000 1,00,000 2,50,000 17,250 22,500 10,00,000 25,00,000 4,00,00,000 35,00,000

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Variable Cost
Items Labour Cost Electricity Water Bill Stationary Sand Wax Misc. 50 Numbers Cost/Item (in Rs) Total Cost (in Rs) 5,00,000 7,00,000 50,000 25,000 75,000 8,00,000 2,00,000

50 TR 1 TR

1500/TR

Total Capital Required to Establish the Company = Fixed Cost + Variable Cost = Rs. 5, 01, 39,750

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Breakeven Analysis of Product (Turbine Blade)
What Is Breakeven analysis: - The break-even point for a product is the

point where total revenue received equals the total costs associated with the sale of the product (TR=TC) Break-even point is typically calculated in order for businesses to determine if it would be profitable to sell a proposed product, as opposed to attempting to modify an existing product instead so it can be made lucrative. Break-Even Analysis can also be used to analyze the potential profitability of an expenditure in a sales-based business.

Calculation Of breakeven Point Of The Product:Cost Of Per Turbine Blade Total Cost = Rs.50, 0000 =Fixed Cost+Variable Cost =Rs5, 01, 39,750 Break even point turbine blade. 5, 01, 39,750/50,000 =1003 No of

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The project is prepared through the collection of different departmental policies of government as well as technical consultancy from various organizations and during these project financial policies of different financial institute and banks. This project is an analytical representation of data collected from various sources so that during real time implementation further clarifications must be done to make the project a success. Hence, after going through a detailed study we find that the location is suitable for the fructification of our project.

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============================

1. Industrial Engineering & Management, O.P. Khanna.

2. Entrepreneurship of Electronic Industries, M.V. Deshpande , Deep & Deep Publications

3. www.techno-preneur.com

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