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A PROJECT REPORT

ON
CAPACITY PLANNING OF PZS GROUP IN BFL

BY

CHETAN SHITOLE
REG.NO.-201200480
(2012 – 2014)

IN PARTIAL FULFILLMENT OF
PGDBA-OPERATIONS MANAGEMENT
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
PUNE: 411016

ACKNOWLEDGEMENT
A project of this nature calls for intellectual nourishment, professional help and
encouragement from many quarters. I would like to express my gratitude to my project
mentor, Mr. Santosh Dhage for his invaluable guidance, directions and intent
supervision at every step of this project work.
I would like thank Mr. B.N Kalyani, Chairman and MD of Bharat Forge Ltd who
provided me the opportunity of doing project in Bharat forge. I would also like to
offer my acknowledgement to Mr. S.J Gangawane (AVP, PPC dept.) and Mr.
Manish Rashinkar (Sr. Manager, PPC dept.) and the complete staff of PPC
department for their support and guidance throughout the project.
I would also like to show my gratitude towards SCDL for giving me the opportunity to
work on this project.

Mr. Chetan Shitole

ABSTRACT

The objective of the project is to do capacity planning of PZS group and to study the
Working and functioning of the PPC department. Capacity verses demand is studied for
different presses under PZS group, for few presses where the demand does not matches
the effective capacity the factors of OEE and cycle time are studied. Demand forecasting
is done using the least square method

to know the future requirement and plan

accordingly for future. According to the forecast the demand will be exceeding the
capacity; therefore the company should start working on how to increase the
capacity. Steps in capacity planning are studied to understand the planning process,
and also suggest a particular strategy to use for future planning.

1 3.6 2.3 2.1.2.2.2 3.2 3.2.1.2 2.1 4.2.2.2 4.1.4.1 2.3 1.2 1.3 2.1 2.2.2 2.1.9 1.1.5 2.1 3.4 2.1 1.9.4 1.4 2.6 1.2.1 3 3. No.1 3.3 4 3.8 1.2 1.1 1.1 2.2 2 2.7 1. 1 1 3 4 6 6 8 9 11 19 21 22 22 24 26 26 26 27 27 28 28 29 30 33 31 34 36 39 39 40 41 41 41 46 46 47 48 49 51 51 51 54 56 56 .INDEX Sr.3 4. 1 1.1 Contents Introduction Company Profile Bharat Forge history Major milestones Forging facilities Closed die forging facilities Open die forging facilities Clients of BFL Brief overview of BFL Material flow in BFL Steps in forging process Products of Bharat Forge Closed die forging products Open die forging products Literature review Production planning and control Principle of planning and control Function of PPC Planning in BFL Controlling in BFL Objectives of PPC Process carried out by PPC in BFL Co-ordination of PPC with other department Capacity planning Introduction to capacity planning Need of the project Capacity decision Factors affecting capacity planning Prime area : PZS group Important parameters of presses and hammers Demand evaluation Forecasting Forecasting methods Demand pattern Customer wise Part wise Group wise Forecasting for PZS group Capacity planning Estimate future capacity Quarterly business plan Four monthly production plan Evaluate existing capacity and identify gaps Monthly capacity planning of PZS group Page No.1.1.1.1 1.1 4.2 2.9.2 4.5 1.3.5 2.8 2.1.1.4.2.

4 7 Effective capacity vs demand Planning for future Data analysis and interpretation OEE analysis Pareto chart for major downtime Suggestions Checklist of the preventive maintenance Adjustments to capacity Capacity planning strategies References 64 65 68 68 74 78 79 79 82 .4.2 6 6.2 4.1 5.2 6.1 6.3 5 5.2.

No.5 Fig.4 Fig.2 Fig. 1 2 3 4 5 6 7 8 9 11 12 13 14 15 16 17 Figure No.3 Fig.2 Fig. 2. No. 1.4 Fig.3 Fig.1 Fig. No. No. No. 2. 1. 1. No. 2. 1. 3 9 10 11 20 22 23 23 25 27 30 31 35 38 42 81 . No. No. No. 2. 6.5 Fig.1 Fig.7 Fig. No.9 Fig. 1. 1.1 Page No. 2. No. 1.LIST OF FIGURES Sr. 1. No. Fig.8 Fig. 3. No.6 Fig. No. No. No. No. 1.1 Fig.

4 Graph No 4.LIST OF GRAPHS Sr.1 Graph No 5. 1 2 3 4 5 6 7 8 9 10 11 12 Graph No. 47 48 49 50 57 59 60 62 63 65 75 76 .1 Graph No 3.2 Page No.2 Graph No 4. No. Graph No.3.6 Graph No 5.2 Graph No 3.4 Graph No 4.3 Graph No 3.3 Graph No 4.5 Graph No 4.1 Graph No 4.

LIST OF TABLES
Sr. No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
32
33
34
35
36
37
38
39

Tables
Table No 1.1.
Table No 1.2
Table No 1.3
Table No 2.1
Table No 2.2
Table No 3.1
Table No 3.2
Table No 3.3
Table No 3.4
Table No 3.5
Table No 3.6
Table No 4.1
Table No 4.2
Table No 4.3
Table No 4.4
Table No 4.5
Table No 4.6
Table No 4.7
Table No 4.8
Table No 4.9
Table No 4.10
Table No 4.11
Table No 4.12
Table No 4.13
Table No 4.14
Table No 4.15
Table No 5.1
Table No 5.2
Table No 5.3
Table No 5.4
Table No 5.5
Table No 5.6
Table No 5.7
Table No 6.1

Page No.
4
6
8
39
40
44
45
46
47
48
49
52
53
54
55
57
58
58
59
60
61
61
62
63
64
64
68
69
70
71
72
74
76
79

1. INTRODUCTION

1.1 Company Profile
Bharat forge limited (BFL), the Pune based multinational is a technology-driven global leader in
metal forming having trans-continental presence across a dozen manufacturing locations, serving
several sectors including automobile, power, oil and gas, rail and marine, aerospace, construction
and mining.
Part of Kalyani group- a U.S $ 2.5 billion conglomerate with 10,000 global work forces. BFL
today has the largest repository of metallurgical knowledge in the region and offers complete
service supply capabilities to its geographically dispersed marquee customers from concept to
product design, engineering, manufacturing, testing and validation.
Bharat Forge is the largest forging company in the world and one of the most technologically

advanced commercial forge shops in the world. They specialize in manufacturing over 2000
different range of forgings and machined components for the automotive, engine, railway,
earthmoving, cement, sugar, steel, coal, shipbuilding and oil field industries. They are
specialized in closed die as well as open die forgings.
BFL’s customer base includes virtually every global automotive OEM and tier 1 supplier. It
holds the distinction of being the first Indian automotive component manufacturing company that

Mitsubishi Motor Corporation. Over the year BFL has built a strong base of intellectual capacity. Highly skilled and motivated manpower. The organization aspires to become $3 Billion Company in the near future by having various organic and non-organic business expansions. Volvo. state of the art manufacturing facilities and a global customer base that includes General Motors. quality processes. Cummins. the two leading automobile manufacturers in that country. Bharat Forge is internationally reputed for its cutting edge technology. power and construction and mining. Arvin Meritor. Caterpillar-Perkins. Daimler-Chrysler. and capabilities developed over the years to meet the exact standards of the most demanding customers in the world. ISO/TS 16949: 2002 accredited company. Bharat Forge limited today is a global corporation with world class engineering capabilities. .1 made a major breakthrough in china in 2003 by securing large business from first and second automotive works. The business is so well maintained and spread that a single customer constitutes not more than 8% of the total turnover of Bharat Forge. It is the largest manufacturer of the axle components for heavy trucks with a 35% global market share and a 10% global share in engine components. Dana Corporation and several others. BFL completed capacity expansion to set up dedicated state of art facility for manufacture of critical and value added components for non-automotive applications including rail and marine. Renault. Ford. Honda. An ISO 9001-2000. with over 1200 engineers engaged in various manufacturing disciplines are driving the company’s global thrust. Toyota. Oil and Gas.

2 Fig.1 . 1.

that Bharat Forge came into existence in 1961 to meet the forging needs of Indian Automotive Industry. Bharat Forge emerged as the undisputed leader the first name in forgings industry in India. Ancillaries were nominal & infrastructure was scarce and inadequate. With an emphasis on diversification. it was a period of consolidation & growth. For Bharat Forge.2 Bharat Forge history Bharat Forge Ltd. the 80’s saw. Bharat Forge grew from a primarily automotive ancillary to an engineering enterprise focusing on technological supremacy. It was then. . The Indian Automotive Industry in 50s was more like the story of imported kits. With the largest integration facilities in Asia & an unbeatable track record. is one of the most innovative & exciting companies to emerge in the history of the forging industry. The 70’s witnessed a spurt in the Indian forging industry with more & more units coming up.1.

3 resilience & total customer orientation. N. 1993 ISO 9002 accreditation 1996 Technical agreement with Metalart Corporation. B. USA for hammer forging technology 1966 Start of hammer shop commercial production 1972 Execution of maiden export order to Greece 1984 Technical agreement with Tokyo Drop Forge. quality products & services time after time. the company continues to expand & its markets continue to grow. USA & UK for the critical suspension & engine components like front axle beams & machined crankshafts. the art of forging metal is tradition at Bharat Forge. Every part we create is a representation of our overall dedication to craftsmanship. An outstanding reputation for customer service coupled with the management commitment to quality has made Bharat Forge the preferred domestic & global supplier for major OEM’s. 1. Today. Mr. while the goal remains the same : to deliver competitive. 1991 Implementation of large US $ 50 million forging facility up-gradation program by commissioning of 16000 MT’s & 6000 MT’s Weingarten (Germany) make of screw press lines. Under the intense & caring supervision of the chairman & managing director. Kalyani.3 Major Milestones 1961 Incorporation 1962 Technical agreement with SIFCO. Japan for technology up gradation & quality improvement for hammer forgings 1985 Entry in erstwhile USSR market by winning a large contract for under carriage components-for track line and big crank shafts 1986 Technical agreement with Jidosha Buhin Kogyo. & all of our products are built with the expertise necessary to accommodate various industries. Japan for machining of front axle beams 1990-91 Major breakthrough in the developed markets of Japan. Each customer specification is carefully transformed into a cost efficient reality. Japan for small forgings & .

as a measure of expansion of capacity facility 2013 Wedge press installed to serve the demand for international customers Table no. Major expansion program FMD III & MCD II. 1997-98 Establishment of new machining facilities for crankshafts. 2005 Acquired Imatra Kilsta. With revenue less than $ 1 billion.4 commissioning of 4000 MT’s & 2500 MT’s mechanical press lines for small forgings. 1999 QS 9000 accreditation 2000 Implementation of a US $ 30 million facility expansion program by commissioning of second 16000 MT’s Weingarten (Germany) make screw & 2500 MT’s mechanical press lines. 2004 Acquisition of Aluminum Forging Company in Germany in December 2004. AB. front axle beams & heavy steering knuckles. Sweden along with its whole Scottish Stampings. Scotland (together called as Imatra). the largest automobile named FAW Bharat Forge.1 5 . Once again a part of the Forbes list of 200 successful companies out of US.completely automatic transfer line 2007 Introduction of 12500 TMP to increase business. 1. 2006 kurimoto line installed . “CEO of the year to Babasaheb Kalyani” by business standard. 2003 Bharat Forge has acquired one of the largest forging companies in Germany named Carl Dan Pedinghaus emerging as the second largest Forging Company in the world. Signed a JV with FAW Corporation.mainly for big components 2008 Baramati plant was started.

000 MT 60-250 I-Beams & Crankshafts & Connecting Rods 12. Lower Control Shoes & Truck Shoes 4. Connecting Rods & Lower Control Arms 5.000 MT 5-20 Steering Knuckles. Crankshafts. Heavy Duty Pistons.000 MT 80-120 Crankshafts & I-Beams 8. Control Arms.000 MT 20-50 Steering Knuckles. Crankshafts.550 MT 20-50 Crankshafts for Passenger Cars 5. Swivel Hubs.500 MT 60-250 I-Beams & Crankshafts 10.4 Forging Facilities 1.000 MT 10-50 Control Arms. Knuckles. Wheel Carriers.1 Closed die forging PRESS SIZE WEIGHT RANGE TYPICAL COMPONENTS (KG) 16.1.000 MT 20-90 Crankshafts & I-Beams 6. Connecting Rods. . Steering Knuckles.4.

Camshafts. Upper Rear Control Arms & Pistons 2. Transmission Components. GET Tips. Track Shoes & Brackets 2.2 7 . Camshafts. Hydro Carbon 80 Mtr Ton Exploration Sector including Fracing.5 m long Large components for Energy Sector. Knuckles & Pistons Hammer 2. Locomotive & Marine. Knuckles. 1.5T & 4. Transportation including Aerospace.500 MT 2-5 Connecting Rods.6 Upper Control Arms. Ring Rolling Up to 4000 mm in diameter Large Rings & Gear blanks for various sectors Table no.000 MT 2-5 Tips.

Gear. Well Heads & X-mas Tree parts for the Oil & Gas Industry and Pinion Shafts.1.600 MT 17 T Products for sectors such as Sugar Industry.4. Shafts for the Wind Energy & Power Generation sector.000 MT 70 T Products for sectors such as Wind Energy. Fan & Pump. Cement Industry & Material Handling. Mining. Ship Building. Petrochemical & Sugar Industry. 1. Oil & Gas. 1. Cement.3 . for the Capital Goods sector. Shipbuilding.2 Open die forging PRESS SIZE WEIGHT RANGE SECTORS (KG) 4. Press Vessel. Power. Oil & Gas Table no. Steel. Gear blanks etc.

5 Clients BFL has various kinds of customers both from Automotive and Non-Automotive field.8 1. Following are some of the customers of BFL Automotive .

1.Fig.2 9 .

 Non-Automotive .

1.Fig.3 10 .

1.1.4 CDFD: MCD: MCD: Services: Ø FMD 1 Ø MCD 1 Ø HFD 1 Ø ITD Ø FMD 2 Ø MCD 2 Ø HFD 2 Ø Sales Ø FMD 3 Ø MCD NC Ø Die Shop Ø Forge Shop Ø MCD Chakan .6 Brief Overview of BFL Fig.

Ø Material Ø MCD Baram ati Ø HR Ø CDFD Engg Ø Legal Ø Processing Ø PPC Ø Heat Treatment 1 Ø Finance .

The division has Hammers instead of Presses unlike FMDs. The unit was started at BFL Mundhwa plant in 1991 and has been in operation ever since. MAXI line (2500T). It has a total of 4 press lines. 4. FMD II (Forge Modernization Division II)FMD II stands for Forge Modernization Division 2. FMD III (Forge Modernization Division III)FMD III stands for Forge Modernization Division 3. and still is using the old machinery. All the above hammers are Vertical Movement Machines and the Horizontal Movement machines are 12 .1 1. EUMUCO line (5000T). LKM. It forges various products with weight range of up to 350 kg. The unit was installed in 2005 and being the latest one it has the highest level of automation. 3. The lines available are PZS-1 line (16000T). 2. The lines available here are 25001. Front Axle Beams. and Connecting Rods etc. LKM-4000 line (4000T). AZAX line (6000T). PSH line (6300T). FMD I (Forge Modernization Division I)FMD I stands for Forge Modernization Division 1. Here the PZS press is mainly used for forging Axle Beams. Forge ShopForge Shop is the oldest division of Bharat Forge Ltd. TMP 8000 line (8000T) and Kurimoto line (5500 T). Today it has a total of 5 press lines. The jobs forge here includes Crank Shafts. It has pneumatic hammers which are manually controlled.2500 line (2500T) and LMZ 2500 line (2500T). The jobs are handled mechanically using forklifts and No Automation is done. The lines are PZS-2 line (16000T). The types of furnaces used here are Rotary Hearth Furnace and Induction Furnace. It has a total of 3 press lines. 25002 and 10T. The lines are TMP 12500 line (12500T).

traditional and imported which are both computerized. One more advantage of imported machines is that they got tool changer and all the tools required for the complete process can be loaded in one go. CDFD Engineering DesigningIs the backbone of any manufacturing unit.called Upsetters. Imported machines operates in a chamber as the operating speed is 8000. It is a very important step in production of any product especially for engineering purpose. alloy steels. . EDM (Electron Discharge Machining) etc. CATIA. Afterwards it is sent for inspection. ANSYS etc. Mostly larger jobs are forged here and it deals with forging of various metals like Stainless Steel. Heating is done by oil fire furnace using low density oil. The design specifications are given by the engineering division. It uses various modern software like Pro-E. Automatic cutting machine tools like CNC Lathe. Customers provide the drawings of the job and according to that the dies are design. After the final craving of the shape on the metal block is done the process of Nitriding is performed in the Heat Treatment Department. are used for production of the required die. Die ShopDies are very important tools in manufacturing of many components which are required to be produced in large quantities. A Die is basically a shape engraved on a large metal piece which can be used as a model for production of products of that particular shape. The dies are made in 2 types of machines. The dies used for forgings are made here. 5. Once the validity of the product is confirmed the Die is sent to the Die Storage yard. The CDFD department is responsible for the designing of any product as per the requirement of the customers. aluminum and titanium. A traditional machine operates at 3000 rpm so it is kept open.18000 rpm. HSM (High Speed Machine). 6.

shot material to prepare the surface to meet specifications. Visual Inspections: Visual Inspection is done to check the final specification. processing of the products is required so as to increase the value of the job as well as the property. FMD3 line: All the jobs forged in FMD3 are processed here. Crank Shaft new. Axle Beams are processed here also but the capacity/output comes under that of A2 line. Big Connecting Rods. Painting: Dip or Spray There are 3 processing lines at Bharat Forge. CSO (Crank Shaft old) are processed here. .13 7. Ford line. d. The Processes involved are given below: a. c. LCV Beam c. A2 line small. Finishing Shot Peening: to increase fatigue life by bombarding the surface of the part with small spheres of uniform media that induce compressive stresses. b. Shot Blasting: A process of rapidly impacting the surface of an object with a controlled stream of abrasive. Magnetic Particle Inspection: To remove surface cracks Coining: It is a form of precision stamping in which the job is subjected to a sufficiently high stress to induce plastic flow on the surface of the material but retains toughness and ductility. Cold Straightening (Padding): To remove bends and to straighten the job. IQC (Old line): Valve Body (Oil field). HHP A2 line. Tubes. Processing linesAfter the forging is done. namely:a. b. e. A2 Line: The lines here are Axle Beam.

soften material. It changes the properties of the forged part being treated by affecting the size and alignment of the crystalline structure of the elements in the steel or carbon alloy. 15 . Annealing: Annealing is done to induce ductility.14 8. Heat TreatmentHeat Treatment is a group of industrial and metal working processes used to alter the physical and chemical properties of the material. The heating is done until the entire job is at the same temperature. Various liquid mixtures are used for quenching which include polymer quench ant. d. Preheating and soaking: Preheating is done in Induction Billet Furnace. It is done in LPG furnace. It involves the following factors: Heating. The furnaces used are Bogie Hearth furnaces as well as batch and various continuous furnace lines. It involves heating the jobs up to a temperature of 727oC to create a solid solution of Iron and carbon which is easily workable. polymer & water quench ant and polymer & oil quench ant. c. b. Tray time is the time taken of one tray with job to feed from one end and to come out of the furnace at the other end as heat treated. Processes employed in Heat Treatment area. relieve internal stresses and refine the structure by making it homogeneous by heating till Eutectoid region and maintaining the temperature before cooling. Normalizing: It is done to improve the crystalline structure of the steel. Tempering: The quenched job is tempered at 560oC to obtain the requisite mechanical properties. temperature control. This is known as soaking and the timing depends upon the chemical analysis of the metal and mass of the part. Control Cooling: Hold at a temperature and then cool Quenching: It is done by rapid cooling of the job for increasing the toughness. atmosphere control and controlled cooling. Oil-Fire Furnace and LPG furnace. It is accomplished by a controlled reheating of the work piece to a temperature below its lower critical temperature. When the parts are non-uniform. the soaking period is determined by the heaviest section.

turning. MCD I (Machine Component Division I)Machining of the forged jobs is done here to the requisite dimensions and tolerances. The jobs mainly forged here are . oil hole drilling. 1 for Front Axle line and 1 for knuckle line. It has an Open die forging process. grinding. flangside drilling. MCD 2 compared to MCD 1 handles products of greater dimensions and capacity. Only if the material is tested successfully for all parameters as per the requirements of the customers. It has 11 crankshaft lines. chamfering etc. MQC (Metallurgical Quality Control)It is involved in raw material injection and clearance.9. Service failure analysis is done to find out and eradicate the failure and its cause permanently. 4 are crank shafts line. 11. brittleness. Higher automation results in enhanced fatigue resistance of the product being forged along with improved balancing which is taken care by magnetic particle inspection. is done here. Products are finished using machining processes like rounding. The process here is semi-automatic and in this division the heat treatment section is also within it. Metallurgical testing of a job for parameters like hardness. 12. HFD I (Heavy Forge Division I)The press was installed in 1985 and the maximum capacity press here is of 1600 T capacity. Machined parts are for 100 % export. it is given to the customer. deburring. ultimate tensile strength etc. facing. MCD II (Machine Component Division II)This division is more modern than MCD I and hence has higher automation. centering. by using CNC’s. There are 6 lines in it of which. 10.

 A rapid action motor bike for inaccessible areas. Another department International trade division (ITD) deals with the sales with the overseas companies. 13. processes them. V die is used for forging ingot into cylindrical shape and flat die for forging into rectangular shape. The orientation and feed movement is controlled by the manipulator. The hydraulic press of 4000 T and manipulator of 35 T is installed in this division. fire extinguisher in all shops. decides upon the costing and sets the deal with these companies. SafetyBharat Forge always keeps its employee’s safety as the first priority. The main purpose of manipulator is to help in holding the work piece and feeding it to the hydraulic press. Then it sends the details of the order to PPC division for the further processing of the order. 14. Sales department is the starting point for any company as it helps in determining the production and profits for the company.  A rapid action van. .  Facility of first aid kits. Aeronautics and other heavy machinery industries like BHEL. Cement industry. The department owns many amenities that are needed for ensuring hazard free working conditions as listed under:  A 24 hour ready ambulance.16 valve bodies. Major clients are Sugar Mills. HFD II (Heavy Forge Division II)HFD 2 deals with the forging of heavy components. front axle for Volvo’s etc. SalesSales division is an important department of the company which deals with the domestic sales. 15. Sales department takes the order from the companies.

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 Well-equipped dispensary with necessary facilities. MCD1 and MCD2.e.  Payables: It maintains accounts of purchases of goods and payments to suppliers.  A 24 hour ready fire extinguisher van.  Excise department – This department deals with excise documentation and duty. GS 01 caters to the needs of A2 line. FinanceThe department is divided further into sub departments. Kalyani steel etc. Those are –  Cash & Bank: It deals with bank and allocation of funds. namely  General Purchase – This department deals with transactions within India and is further subdivided into two categories i. stock and non.Physical dispatch of goods. .  Expense: It maintains accounts of miscellaneous expenses travel allowances of employees etc. GS 02 caters to FMD1and FMD2 and similarly GS04 caters to FMD3. appropriate payrolls and related activities. 16.  Steel Purchasing – This department deals with the purchase of steel for the plant from companies such as TATA steel.  Shipping department.stock. It has broadly six departments. MaterialsThe Material department takes care of all the international and domestic purchases.GS 01. GS 02 and GS 04. 17.  Imports – This department deals with transactions outside of India.  Salaries: It calculates the number of days an employee has worked.  Stores – There are 3 stores .

18 .

MTB (Machine tool building)It focuses on reconditioning of old machines so that we can rebuild a machine at a lower cost. Investigation and analysis is needed as the properties of the materials must be according to the customers requirement. 2. Tools commonly used are CNC. hospet. JSW and other sister companies. 3. 18. Once approved by MQC the raw material is sent tfor billet cutting where material is cut into circular or square billets. PLC.7 Material flow in BFL 1. hardness testing. E-plan. balance sheets and prepares quarterly. Receivables: It does the accounting of sales and maintains account for all customers. Major objectives are cost saving and faster machine availability. The materials not up to the mark are sent back to the source from where it came. When the material arrives in BFL it is stored in steel yard. it goes to the metallurgical quality control (MQC) department where the material is tested. BFL recieves raw material from kalyani steels. The new machines generally cost around 12 crore but the old machines with new parts will come to maximum of 4 to 5 crore thereby cost saving the expenses of the company.  Treasury: It deals with arrangement of finances. half yearly and annual financial reports. microstructure analysis is also done. . 1.  Fixed Assets: It deals in controlling and monitoring various projects and maintains accounts of depreciation. working capital and long term investment. job costing and budget control.  General Ledger: Coordinate between all sections and maintains Profit Loss accounts.  Costing: It deals in inventory valuation. Here old machines are bought and the parts are replaced by world class parts such that we can achieve a machine at a lower cost.

5. after forging once again properties are checked by MQC . All the material which is collected as scrap is send to Kalyani Carpentry. the materials which are not accepted by the MQC are sent back. 6. Few parts require heat treatment and few are sent directly for processing. as few parts are micro alloyed steel they wont require heat treatment. Then the material is sent for forging to different shop floors.19 4. . 7. After processing parts are send to MCD if machining is required while others are directly send for shipment and finally to the customers.

1.Fig.5 20 .

The operation is carried out by passing the work–piece between contra–rotating shafts‚ which carry appropriately shaped dies. Padding: In case small misalignment may be there in the job. 2. 5.1.8 Steps in Forging 1. 8. corners are well rounded. Controlled Cooling / Heat treatment: A sequence of controlled heating and cooling operations applied to the solid metal to impart desired properties . Flattening/Bending if required: A preliminary forging operation to give the piece approximately the correct shape for subsequent forming. 9. 6. Finisher: The die impression that imparts the final shape to a forged part. 7. 3. Blocker: The forging die impression which gives the forging its general shape‚ but omits any details that might restrict the metal flow. The primary purpose of the blocker is to enable the forming of shapes too complex to be finished after the preliminary operations. 4. Buster (rougher): An impression employed in a die when considerable metal movement is required and which precedes a blocker cavity and a finisher cavity. 10. Trimming: The removal of flash or excess metal from a hot part (such as a forging) in a trimming press. it also reduces die wear in the finishing impression. Heating: Heating of the billets in the furnaces up to the forging temperatures. Cut Billet: A semi-finished‚ cogged‚ hot–rolled‚ or continuous–cast metal product of uniform section‚ usually rectangular with rounded corners. correction or straightening is done here in padding. Reducer Roll: A machine situated alongside the forging machine for pre–forming.

21 .

Fig.6 . 1.

1.9 Products of Bharat Forge The products of Bharat Forge can be classified into two types: 1.1 Closed die forgings Crankshaft Axle beam  Steering Knuckle  Connecting Rod  Rocker Arm  Transmission Parts  Hubs  Oil & Gas segment 22 .9.

Fig. 1.7 .

1.8 23 .Fig.

2 Open Die Forging The open die forging division of Bharat Forge manufactures products for the following sectors:  Sugar Industry  Cement Industry  Steel Plants  Gear manufacturing and Material Handling  Mining  Shipbuilding  Fan and Pump  Petroleum and Petrochemical  Tools and Plastic Injection Moulding  Forging Industry  Seamless tube Industry .1.9.

24 .

.

Fig. 1.9 25 .

of the required quality. human skills and other inputs into finished products. PPC after designing the production plan also keeps check or monitors whether the whole plan is followed properly or not. delivery schedule and cost of production. it decides upon the production plan. Production planning and control essentially consists of planning production in a manufacturing organization before actual production activities start and exercising control activities to ensure that the planned production is realized in terms of quality. 26 . It takes the demand plan from the Sales department and based upon the requirement. at the required time by the best and cheapest method”. It coordinates with the materials department for the inventory availability.2.1 Production planning and control PPC department is a very crucial and critical department in every industry since this department decides upon how the production would be carried out. Objective of a production planning is to provide a physical system together with a set of operating guidelines for efficient conversion of raw materials. quantity.1.1 Principle of production planning and control “The highest efficiency in production is obtained by manufacturing the required quantity of product.PPC is a tool to coordinate all manufacturing activities in a production system. 2. LITERATURE REVIEW 2.

2 Functions of PPC Fig.3  Planning in BFL Analysis of Strategic Business Plans and setting of goals and objectives in consultation .1.2.1 2. 2.1.

27 . both internal and external.  Analysis of forging WIP with respect to customer demand.with the management. and conversion into monthly. weekly and daily shift-wise schedules.  Preparation Shipment plans.  Preparation of four monthly production plan.  Analysis of customer demand.  Coordination of new product development.

 Synchronization of MCD production requirements with forge division’s plans.  Coordination with shipping department for delivery of forgings to customer  Coordination of feeding forgings to MCD  Disposition and accounting of scrap  Sub-contracting activities like selection and assessment of sub-contractors.1.  Preparation of daily dispatch and receipt plan in coordination with processing shops.5 Objectives of PPC  Optimum utilization of capacity  Inventory control  Economy in production time  Ensure quality  Effective utilization of resources .1.  Work order processing.4 Controlling in BFL  Coordination of inputs like dies and raw material to achieve production plans.  Control over the issue of cut material to OFD. 2. 2.  Review quarterly / monthly performance against goals and objectives.

28 .

To calculate how much to produced. Jobs are identified by the Die No. 3.6 Process carried out by PPC in BFL Following is the various processes followed by PPC department:1. Feb.3. Received the Sales Demand After receiving the Sales demand from Sales Department. Co-ordinates activities of departments 2. Then Monthly Production & Shipment are scheduled after that and then the Week wise breakup is done every week. they take into account the WIP available from previous schedules and added up 3. 2. First 2 month’s plan is fixed and last 2 are tentative. Mar. 4 month Production Plan is prepared by 2nd or 3rd of month say (Jan. Identify where to produce They identify the presses which are underutilized and give the new work to them and also take into account the blow force that will be required and the productivity of the press. 29 .5% of the amount to be produced as the scrap allowance and consider the opening stock of the previous month. ii) Lead time iii) Batch Size iv) Processing Lines requirement. April). When to produce PPC department considers the following parameters while deciding when to produce i) When the customers want the product.1.

.

1. 2. It is indeed the backbone of the company.ordination of PPC with other Department PPC department is a department which require to co-ordinate closely with all the other departments. PPC co-ordinates with- 30 .2 2. It works on various data given by other departments and it needs other departments to perform their work properly in order to fulfill the production plan timely and correctly.Fig.7 Co.

 Quality control department must give feedback about quality of incoming raw material immediately.  Errors in dimension observed by shop inspection must be communicated to PPC immediately. . immediate feedback avoids further processing on defective raw materials. QualityQuality department informs PPC department about the number of accepted and rejected materials. If incoming raw material is poor.1.  Inspection department provides immediate feedback on rejected quantity and quality of items that is reworkable.

2.3 31 .Fig.

2.  If the delivery cannot be made within time then PPC informs ITD department.  PPC has to coordinate with the material department to know how much the inventory is. Materials PPC department informs the materials department about how much material will be required in the future.  ITD department gives the demand to the PPC department given by the international customer’s.  Sales department consults PPC department regarding quotation prices and deliveries.  PPC plans and controls the flow of material. 4. 3. when is it possible so that they can convey it to the customers.  PPC reports sales department when delivery promises can not be met within schedules. SalesPPC department acts as important link between sales department and production department. .  PPC provides status of production to sales department.  Information regarding customer orders must be passes to PPC department for further action. ITD ITD consults PPC regarding the deliveries.

32 .

It is usually expressed in volume of output per period of time.  MCD department coveys to PPC about how many parts are machined and ready for shipping and how many parts are needed to be processed again or what is the rejection rate.  Machining of auto components is done in MCD 1.  PPC department sends parts for machining to MCD 1 and MCD 2.2 Capacity planning Capacity in general is the maximum production rate of a facility or a firm.  Capacity requires an investment of capital.  Capacity affects cost efficiency of operations. die life etc during planning. . Operations manager are concerned with capacity because:  They want sufficient capacity to meet the customers demand in time. 6.  New die development information is given to the die shop by the PPC according to customer’s requirement. MCDIn machine component division machining of different components is done. Die shop PPC informs the die shop that how many dies are required per month and their specification. Capacity indicates ability of a firm to meet customers demand.  PPC requires the information about dies like die run size. and machining of crankshaft is done only in MCD 2. 2.5. the ease or difficulty of scheduling output and the cost of maintaining the capacity. .

33 .

Consolidation might involve relocation. facility locations and process technology activities occur. equipment and materials. Capacity can be increased through introducing new techniques. The goal of capacity planning is to minimize this discrepancy. either in under-utilized resources or unfulfilled customers. A discrepancy between the capacity of an organization and the demands of its customers results in inefficiency. It is the process of determining the production capacity needed by an organization to meet changing demands for its products. increasing the number of workers or machines. selling or consolidating facilities. That is compare demand verses capacity. Too much capacity would require exploring ways to reduce capacity. or acquiring additional production facilities.  It helps an organisation to identify and plan the actions necessary to meet customers present and future demand. 2. . such as temporarily closing.2 Need of the project Capacity planning is the first step when an organisation decided to produce more or a new product.2. 34 . a combination of technologies. increasing the number of shifts. Once capacity is evaluated and a need for a new epanded facility is determined. or a rearrangement of equipment and processes  Capacity planning is done to estimate whether the demand is higher than capacity or lower than capacity.2.1 Introduction to capacity planning Capacity planning is the process of projecting future capacity needs based on current company use and industry trends.2.

.

Capacity requirement can be evaluated from two extreme perspectives-short term and long term. .Fig. the underutilization of the resource is wastage and if the demand exceeds the capacity.4 When we observe the trend of previous years. There is a need to continuously manage the capacity so that the demand matches the capacity Based on the demand fluctuations. If we have excess capacity. it is very important on how to manage our capacity level and if we have to increase it. we may lose our valuable customers as we will not be able to supply the required demands in time. it is a loss to us. in what way we have to do it. we have to keep revising our capacities and try to make it leveled. 2. the demand of different groups is exceeding the available capacity. So. Either way.

an accountant would be interested in collecting cost accounting information in order to ensure that correct capacity expansion decision is reached. What products or services will the firm are producing then? today’s product may not even exist in the future.35 a.2. b. product development and the life cycles of the products.3 Capacity decisions Major considerations in capacity decisions are: 1. Long term requirementLong term capacity requirement are more difficult to determine because future demand and technologies are uncertain. What size of plant? How much capacity to install? 2. Short term requirementsManagers often use forecast of product demand to estimate the short term work load the facility must handle. Capacity planning must involve forecast of technology as well as product. An Information Technology Manager would end up preparing data bases that would aid the organization to decide about the capacity and last but not the least an operations manager would select strategies that would help 36 . 2. Obviously long term capacity requirements are dependent on marketing plans. When capacity is needed? When to phase-in capacity or phase-out capacity? 3. Changing in process technology must also be anticipated. By looking ahead up to 12 months. mangers anticipate output requirements for different products or services. At what cost? How to budget for cost? Capacity decisions are important to all departments of the organization. the method for generating them may change dramatically. Even if producers remain unchanged. Forecasting 5 or ten years into the future is a risky and difficult task. Similarly a financial manager would be interested in performing the financial analysis of whether the investment decision is justified for a plant or capacity increase. Then they compare requirements with existing capacity and detect when capacity adjustments are needed.

These range from long-term capacity decisions down to shortterm shop floor monitoring and control tasks:  Planning resource capacities over long time horizons.  The simulation of the use of alternate capacity plans.  Monitoring actual outputs versus plan .  The use of finite loading procedures. Capacity decisions are important because they impact Ability to meet future demands  Affects operating costs  Major determinant of initial costs  Involves long-term commitment  Affects competitiveness  Affects ease of management  Globalization adds complexity  Impacts long range planning The figure below depicts the hierarchy of capacity planning decisions that can be made within a planning and control environment.  Detailed capacity requirements of a particular production schedule.  The rough-cut evaluation of capacity required by the master production schedule.the organization achieve the optimum capacity levels to meet the customer demand.

37 .

.

5 The source of the loading data changes as you move down this hierarchy. rough-cut capacity planning uses the master production schedule as the source of its information. 2.Fig. Capacity requirements planning and the remainder of these shorter-term planning modules take their loading data from the Material Requirements Planning output. While resource planning takes its capacity requirements from the business plan. 38 .

8 % 170891.70 % 4556.7 % 8304.1 Quantity wise PZS group constitute about 14. metric ton wise it constitutes about 58. . 2. currently we have 5 presses in this group. If we consider the quantity. and one wedge press with 10000 Tf. PZS 2 each having blow capacities of 16000 Tf and two TMP’s with 12500 Tf and 8000Tf. axle beam.2.86 % of the total.3 Prime area: PZS group PZS group is the group of presses where forging of high tonnage jobs are done.48 14. and Rml of 2014-2015- QTY PZS Group 1278491 Total 8609332 % Mts % Rml 100354. connecting rods of heavy commercial vehicles etc.8 % of the total quantity. Few examples are crankshaft.7 % and Rml wise it constitute about 54. they are PZS 1.4 Factors affecting capacity planning  Product & Services factors: Type of product/services to be provided  Process: The manufacturing process Availability of Facilities: State of technology & communications  Human factors: Skill & quality of workers  Supply factor: Timely & assured supply of inputs  External factors: Investors & government policies 2.86 % Table no.46 58.89 54.2. Mts.

39 .

) jobs(sec) PZS 1 53-310 25000-26000 50 1.3./month) iii) Average cycle time of jobs (sec) iv) Set up time required (hrs.) PZS presses Weight Available Avg.5 65% PZS 2 60-160 30000 53 1. we can conclude that the year wise capacities of the PZS group presses are PZS I capacity: 312000/ year PZS II capacity: 360000 / year TMP 12500 capacity: 360000/ year TMP 8000 capacity: 384000/ year TWP 10000 capacity: 264000 / year So Total Capacity of PZS group: 1680000/ year 40 . 2.1 Important parameters of presses and hammers i) Weight rangeii) Available capacity (No. cycle Setup range (kg) capacity time (nos/month) different time OEE of required (hrs.25 66% TMP 8000 36-90 30000 38 2 58% TMP 12500 50-100 30000-32000 38 2 65% TWP 10000 35-89 22000 40 2 55% Table no.2 From the table.2.

We can forecast the demand for existing product by using any one or even mix of the above methods. The firm has to forecast the future level of demand for its product under different possible circumstances. Second is to use past experience as the guide and using or projecting the past statistical relationships to obtain the expected level of future demand. DEMAND EVALUATION 3. such as prices. as such. Forecasting does play a key role in managerial decisions and hence forecasting is emphasized in the study of managerial economics. changing technology. The firm must plan for the future.1. promotional activities and general economic activity. Forecasting is used by companies to determine how to allocate their budgets for an upcoming period of time. The objective of business forecasting is to minimize risk and the margin of uncertainty in business 3. wage rates. No businessman can afford to ignore forecasting if he wants to thrive and prosper in his business. The first method is also considered to be qualitative and is mostly used for short-term forecasting. labour training and capital acquisition programs. competition. First is to obtain information about the intentions of the spenders through collecting experts' opinion or by conducting interviews with the consumers. It is the use of historic data to determine the direction of future trends. two approaches to demand forecasting. Similarly forecasting will be necessary with reference to costs under changing conditions of availability of raw materials and their respective prices. but to forecast demand for new product we have to use survey method only because the new product has no past or historical data to offer.1 Forecasting methods There are.3. whereas the second method is quantitative and is used for long-term forecasting.1 Forecasting Forecasting is the process of making statements about events whose actual outcomes (typically) have not yet been observed. 41 . Planning for the future involves forecasting.

Fig. 3. based on the opinion and judgment of consumers. Qualitative Qualitative forecasting techniques are subjective. experts.1 a. appropriate when past data is not available. It is usually applied to .

The method is usually applied to short-intermediate range decisions. the Delphi method etc. smoothing with seasonal index. 2013-14 and 2014-15. Examples of quantitative forecasting methods are: simple and weighted moving averages. appropriate when past data are available.e. then we will have some knowledge on what pattern it is increasing and demand of which part or dies will 42 . we can forecast the demand of year 2015-16. simple exponential smoothing. If we get the forecast of the demand. least square method (Trend). 2012-13. b. Examples of qualitative forecasting methods are: informed opinion and judgment.intermediate-long range decisions. By using the data.  Forecasting the demand We have currently the demand of 3 years i. Quantitative Quantitative forecasting models are used to estimate future demands as a function of past data.

 Reason for using Trend or Least square method of forecasting Forecasting methods are divided into quantitative and qualitative methods.e. height of the line from original) or y=a where x=0.x-----. experience in the field is required and is done by experts only. And we can use it to forecast future trends for up to 4-5 periods when we have data of 12 periods while other method forecast for just 1 period only. Regression analysis is the mathematical method of obtaining the “best fit of line relationship” between a dependent variable and a single independent variable. least square method suited us the best as it requires a historical data which we have. According to that we can work on our strategy on how to increase our capacity facility. . Here we try to draw a straight line through the given data satisfying maximum points on the graph. Positive value of b indicates upward slope i. Among the quantitative methods. A=constant whose value equals y intercept (i.increase more. Then the linear relationship between y and x is given by : Y=a+bx----. But slope of he line is sure to vary from analyst to analyst because of judgment.(3) Where. n=number of observations. We are using the Least Square method of forecasting.(1) The value of constants ‘a’ and ‘b’ are obtained from following two equations: ∑y=na+b∑x----. growth of business and negative value indicates negative slope. In qualitative method.  Working Procedure of Least Square Method It is the best method to determine trend.e.(2) ∑xy=a∑x+b∑x.  Let y be demand (dependent variable) and x period for certain commodity (independent variable). B=slope of trend line.

43 .

0 0 0 May.(5) The above two equations can be arranged as: a=∑y / n. iv) Calculate values of ‘a’ and ‘b’ from following method. ii) Square each time deviation and ad all squared values to get ∑x.(4) ∑xy=b∑x.340 Mar.Use following steps to determine ‘a’ and ‘b’ i) Find time deviation (x) from certain period for each period and then find out sum of time deviation (∑x). -1 1 -48. -3 9 -1. equation (2) and (3) will become ∑y=na--.x For example we have the following data.32.x---. -2 4 -89.670 44 i.e. b=∑xy /∑x. 1 1 47.977 Feb.x. iii) Multiply time deviation of each period (x) with corresponding actual sales for the period (y) and then add all figures to get ∑xy.670 Apr. At ∑x=0. Month Product of x and y Deviation of period Square of from (x) April deviation x*x Jan. x*y .

620 Jul. 3.938 Apr.2 45 .Jun.150 Feb. -3 43. 1 50.832 May.1 a=∑y / n = 3. 41.904 =7 ∑x=0 ∑x. 2 4 1. 3 54. -1 46.832 b=∑xy / ∑x.827 / 7 =48.x =53. 3.x=28 ∑xy=53043 Table no. 0 48.460 Jul.043 / 28 =1894 y=48. (A) Trend values: Month x Trend of y Jan.044 Mar.726 Jun. -2 45. 3 9 1.832+1894x…….64.514 Table no. 2 52.11.

3.2.2 Demand pattern 3. by doing this we will know who our regular customer is and who is ordering from us on regular bases.3 . Below are few of the customers with their demand pattern who come under PZS group.1 Customer wise There are around 110 different customers in total from all the groups. 3. Table no. Here we have studied the demand of different customers. and whose demand is increasing.

46 .

so we can provide better customer satisfaction to them so that they continue using BFL products. 3.CUSTOMER WISE 7000 0 6000 0 AL(ENNOR 5000 0 E) KOEL Qt y 4000 ESSEN SPARES 0 3000 0 2000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012-2013 2013-2014 2014-2015 1000 0 0 Graph No. 3. By studying this demand pattern we can understand which part has the highest demand and higher increasing trend.2.1 By this graph we can see that AL(ENCORE) has the highest demand in comparison to others. we have listed few parts that are forged under PZS group of presses. .2 Part wise There are around 36 different parts in total.

4 47 . 3.Table no.

A BEAM HCV CRANKSHAFT 6 1500 00 THROW CON ROD NORMAL Qt y 1000 F. to study their demand pattern. . and crankshaft 4 throw has a continuously increasing demand pattern.2 By the graph we can conclude that F. 3.PART WISE 2500 00 2000 00 F. 3.A beam has the highest demand of all with variation in demand pattern.2. A BEAM MCV CRANKSHAFT 4 THROW 00 5000 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 2012-2013 2013-2014 2014-2015 0 Graph No.3 Group wise Here we have considered 5 groups of presses.

Table no. 3.5

48

7000
00
6000
00
PZS

5000
00

Group

de
m
an 4000
00
d

LKM
2500
PSH Gr
Kurimot

3000
00

o
LKM 4000

2000
00

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012-2013

1000
00

2013-2014

2014-2015

0

Graph No. 3.3

From the graph we can see that PZS group has the highest demand compared to others.
Therefore we should focus more on PZS group and try to meet the customer’s requirement.
3.3 Forecasting for PZS group
As seen in the earlier graph PZS group has the highest demand, we have forecasted demand for
PZS using trend line forecasting.

Table no. 3.6

49

3.4 This method gives us the equation of the linear forecast trend line.PZS GROUP 4000 00 y = 8383.3x + 273897 3500 00 3000 00 PZS GROUP Qt y 2500 00 Linear (PZS GROUP) 2000 00 1500 00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1000 00 2013-2014 2014-2015 2015-2016 5000 0 0 Graph No. by which we can calculate the succeeding years demand. In the above graph the best fit line shows that the demand is continuously increasing. .

50 .

 The plan tells about how much quantity to be forged in which quarter.  They then compile all the data. CAPACITY PLANNING IN BFL 4.  They study the capacity of presses and designate different jobs to different presses. then they prepare quarterly business plan according to the demand.1. and on which die number. according to which the strategic plan is made by the PPC department.1 Quarterly business plan  The PPC department receives the demand for the next year from the sales department. on which press.  This is a forecasting method by which the PPC department can estimate the demand and decides about the capacity planning.1 Estimate future capacity requirement In BFL the sales department gives customer requirement for the next year through the business plan.4. . 4.

51 .

.

 In BFL the presses are divided into different groups. 52 .1  The above figure shows the unit sap codes which are used while preparing business plan. 4. each group has presses with different capacities.  Business plan for the year of 2014-2015 is given below.Table No.

.

53 .

4. 2016-2017.1.3 4.  First 2 months plan is fixed and last 2 month is tentative.2  Four monthly production plan PPC prepares a four monthly plan on the basis of schedule provided by the sales department. on the basis of which business plan will be prepared by the PPC department. .This sheet shows the requirement given by the sales department for the year of 20152016.  This four monthly plan is prepared every month as the demand may vary or there may be an excess or limited production. Table No.

54 .

.

55 .

up time.  PPC decides how much quantity to be forged on which die number.2.4.  After actual production. number of setups is calculated.  Then this information is given to the shop floor where cycle time.1 Monthly capacity planning of PZS group to study gap  On the basis of demand details monthly capacity planning is done.  Utilization of the press is calculated and measures are taken to improve the utilization. .2 Evaluate existing capacity and identify gaps Design capacity = 3600*24*30 / average cycle time Presses under PZS group Capacity / month PZS 1 52897 PZS 2 48000 WEDGE PRESS 66461 12500 TMP 68210 8000 TMP 64800 TOTAL = 52897+48000+66461+64800 = 300368 / month =3604416 / year Effective capacity = 1680000/ year 4. the difference between the required production and actual production is calculated which gives excess/short fall.

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MAR. Capacity planning should be done in such a way that the maximum forging capacity of the presses should be utilized. 4. MAY . FEB.5 PZS 2 has a negative variance in the month of april and march. a. FEB. From the month of april we are not able to meet the expected plan.1 APR. 4. PZS 2Expected vs achieved production: PZS 2 JAN. 30000 25000 20000 EXPECT Qt ED 15000 y ACHIEVED 10000 5000 0 JAN. MAY EXPECTED 23775 24405 20985 26270 26245 ACHIEVED 26239 24585 23208 24786 24812 VARIANCE 2464 180 2223 -1484 -1433 Table no. APR. as the down time has suddenly increases in april and may. Graph No. MAR.

57 .

6 b. FEB. 4. MAR. FEB. MAY EXPECTED 13425 21500 18360 21865 22410 ACHIEVED 15753 17683 16736 14650 19371 VARIANCE 2328 -3817 -1624 -7215 -3039 PRESS Table no. APR.7 58 . MAY SET-UP 23 29 23 28 28 CY. achieved production: WEDGE JAN. APR. Wedge pressExpected vs.JAN. 4. MAR. TIME 56 57 57 56 57 DOWN TIME 368 386 330 408 412 TRIALS 1 2 1 - - UTILISATION 52 % 63 % 49 % 61 % 63 % Table no.

8 The utilization of the equipment is also less in February. MAY SET-UP 13 20 23 23 21 CY. MAY Graph No.25000 20000 15000 Qt y ED 10000 EXPECT ACHIEVED 5000 0 JAN. APR. FEB. MAR. or the press may be shut down for . During these months there may be lots of holidays. The down time is increasing after January. JAN. 4.2 In January we have achieved the expected plan. APR. MAR. 3 trails in February. FEB. March. April which may have led to reduction in the production. TIME 38 37 39 38 41 DOWN TIME 141 220 201 232 254 TRIALS 1 2 3 2 1 UTILISATION 63 % 60 % 50 % 59 % 31 % Table no. after that there is a huge gap between expected and achieved production. April and May as compared to January. 4. it is also considered to have only one trial per month but we can see there are 2. march.

maintenance purpose. 59 .

and up time has increased in February leading to reduction in forging. PZS 1 Expected vs achieved production: PZS 1 JAN. of setups. MAY Graph No. 4.c. MAR.9 35000 30000 25000 Qt y 20000 EXPECTED 15000 ACHIEVED 10000 5000 0 JAN. APR. 4. FEB. PZS 1 press had a planned shutdown of 45 days leading to reduction in production.3 In the month of Feb. 60 . APR. the no. the press is not able to achieve expected plan. cycle time. MAY EXPECTED 25250 26150 29450 25320 16900 ACHIEVED 29150 18519 25239 24536 16961 VARIANCE 3900 -7631 -4211 -784 61 Table no. FEB. MAR.

APR. MAY EXPECTED 22920 27190 25445 26275 30490 ACHIEVED 29490 26608 23762 26312 20589 VARIANCE 6570 -582 -1683 37 -9901 Table no. TMP 12500:  Expected vs.11 61 .FEB. MAY SET-UP 26 31 25 15 CYCLE TIME 48 52 49 48 DOWN TIME 348.10 d. 4.76 223 TRIALS - - - - UTILISATION 58 % 63 % 52 % 64 % Table no. APR.2 428 345. achieved production: TMP 12500 JAN. FEB. MAR. 4. MAR.

FEB.5 % 58.81 % Table no.57 % 47. of setups in march is more as compared to other months. MAR. 4.06 DOWN TIME 87.4 In the month of march there is a huge variance in the expected and achieved production. FEB.12 62 . MAY Graph No.35000 30000 25000 20000 EXPECTED Qt y 15000 ACHIEVED 10000 5000 0 JAN. 4. APR.22 285 286 TRIALS - - - UTILISATION 60.83 42. MAR. the down time has also increased from February to march and also the machine utilization has reduced in the month of march leading to less production. this may be due to the no. APR. SET-UP 7 26 26 CYCLE TIME 41.32 38.

after February the variance is negative and we are not able to attain expected production. MAY Graph No. achieved production: 8000 TMP JAN.e. APR. 4. 4. During the month of February the utilization of press is high while in March and 63 . MAR. 8000 TMP  Expected vs. MAY EXPECTED 21920 21400 22660 25585 28915 ACHIEVED 20003 21858 23721 16521 21901 VARIANCE -1917 458 1061 9064 -7014 Table no. FEB. APR. MAR.13 35000 30000 25000 20000 EXPECTED Qt y 15000 ACHIEVED 10000 5000 0 JAN.5 In the graph we can see that achieved production is more than the expected plan in the month of February. FEB.

leading to reduction in production.April it has reduced. APR. FEB. SET-UP 7 19 20 CYCLE TIME 42 43 43 DOWN TIME 96. 4. The down time.47 TRIALS - - - UTILISATION 67 % 47 % 51 % Table no.94 270.2 Effective Capacity vs. cycle time and number of setups have also increased after Feb.14 4. MAR. demand for Quarter 4 for 2013-2014 PZS PRESSES CAPACITY DEMAND PZS 1 82008 105534 PZS 2 53162 63856 WEDGE PRESS 70069 76681 12500 TMP 69421 42139 8000 TMP 87996 58174 Table no.2.15 64 .14 292. 4.

4.120000 100000 80000 60000 CAPACITY DEMAN D 40000 20000 0 PZS 1 2 PZS WEDGE 12500 TMP 8000 TMP PRESS Graph No.3 Planning for future 1. 4. Balancing capacity and demand:  If there is an imbalance in the demand and the capacity in the short term then it can be tackled by temporary measures / adjustments such as increasing / decreasing the labour force or creating and carrying inventory in the lean period to be used up in the peak . PZS 2 and wedge press the demand is more than the effective capacity whereas at 12500 TMP and 8000 TMP the capacity is more than the demand.6  Here we can see that at PZS.  Future planning should be done in such a way that the increasing demand should be met and the presses having higher capacity should be utilized in best possible way.

65 .demand period.

Ways of increasing effective capacity:  Proper process quality control so that there are less defective items requiring rework. layout. Maintaining capacity cushion: It is the amount of the WIP that a firm maintains to handle sudden increase in demand or temporary losses of production capacity.  By making products and services as uniform as possible in design so that numbers of setups required are less. and uncertain supply.  Good coordination with suppliers for timely and defect-free supplies and proper scheduling of products on machines. lesser disruption of production activities. 3. uncertain demand. . which results in lesser inspections by government enforcement agencies and. It is usually needed when there is uneven demand.  Proper facility location.  Good training. Consolidation can be done by relocation rearrangement of equipment’s. 1) If capacity is short term then it can create a new facility or expand existing facility. thus. high motivation. changing product mix.  By properly following the environmental and pollution norms. 2. 2) If there is excess capacity then it can temporarily close / sell / consolidate facilities. less absenteeism and high turnover on part of workers. and internal working conditions. If there is an imbalance in the long term demand and the capacity then an organization can respond by changing / modifying the capacity.

66 .

4. one should see what the die run size is and what our requirement is.  While selecting a certain die.  If the requirement is less that the run size then we should completely utilize the die till it gets run out so that the excess forged parts can be kept in WIP and can be utilized in future. Diversion of load:  When there is heavy load on a certain press this load can be transferred to some other press which has the capacity to forge those products.  As changing the setups takes huge amount of time so we should try and keep the use of different number of dies limited but the production requirement should not be compromised. 5. While planning the monthly production the die run size should be taken into consideration. Reducing the number of setups:  Planning in such a way that the numbers of setups required are minimum. .

67 .

46 61.93 50.11 83.73 21. OEE = availability *performance*quality Calculation of OEE1.69 13.59 77.) 57. we have to either  Reduce the cycle time  Increase the OEE 1.34 12.84 OPER % 13.25 11.62 100.68 8.55 13. PZS 1- PARAMETER JAN FEB MAR APR RUN-HOURS 720 672 742. Availability = available time/scheduled time 2.65 186.73 DIES (Hrs.61 32.24 65.7 720 BREAKS / PLANNED SHUTDOWN 82.) 88.55 14.58 DIES % 13.72 44. Performance = ideal cycle time/(operating time/total pieces) 3.19 25.53 OPER (Hrs.08 619.74 EFFECTIVE RUN HOURS 637.09 GENERAL (Hrs.83 14.79 93.57 102.15 72.04 6.7 212.) 87.69 9.24 .13 248.) 6.5. Quality = good pieces/total pieces 4.26 DOWN-TIME 239.13 69.82 236.43 640.35 485.54 EQPT (Hrs.1 OEE Analysis We know that Capacity = (time available / cycle time)* OEE So in order to increase capacity. DATA ANALYSIS AND INTERPRETATION 5.07 EQPT % 9.

68 .

36 55.0 789 706 96.17 15 17.) GENERAL % UPTIME AT ACTUAL CYCLE EQUIPMENT AVAILABILITY TOTAL PRODUCTION OK PRODUCTION NOT OK PRODUCTION QUALITY RATE JAN 718.879.82 .17 269.36 67.27 58.51 88.92 51.62 64.05 2.29 100.87 12.77 349.49 85.05 9.360.39 56. 5.65 273.0 25.67 382.22 3.53 64.00 22.109.519.0 24.00 24.68 126.3 61.006.00 25.) OPER % EQPT (Hrs.67 FEB 655.879.99 106.13 61.08 UPTIME AT ACTUAL CYCLE TIME 397.GENERAL % 1.35 26.45 96.99 97.83 21.239.239.49 386.150.74 108.82 12.0 24.17 3.49 57.824.48 278.67 1.5 APR 686 MAY 696 40.29 61.19 8.54 8.31 3.812.04 228.022.47 85.00 2.9 60.48 ACTUAL CYCLE TIME 49.00 23.59 23.6 114.91 59.00 18.68 91.295.913.02 12.85 96.81 56.59 95.45 95.11 53.) EQPT % GENERAL (Hrs.59 11.0 24.3 391.31 4.52 221.99 61.48 678.1 58.23 109.41 15.21 132.13 69 570.326.00 1.786.13 55.687.37 19.427.01 362.49 11.77 TOTAL PRODUCTION 29.95 Table no.61 57.57 15.06 65.84 29.99 11.26 382.00 QUALITY RATE 95.) DIES % OPER (Hrs.66 8.81 248.63 400.208.00 23.0 20.21 PERFORMANCE EFFICIENCY 110.00 832 2.48 630.8 1.86 84.00 NOT OK PRODUCTION 1. PZS 2- PARAMETER RUN-HOURS BREAKS / PLANNED SHUTDOWN EFFECTIVE RUN HOURS DOWN-TIME DIES (Hrs.95 9.16 MAR 697.24 58.00 17.87 47.38 57.89 62.53 EQUIPMENT AVAILABILITY 62.54 8.66 10.32 OVER ALL EQPT EFFECTIVENESS 2.00 OK PRODUCTION 27.585.536.13 PLANNED CYCLE TIME 54.05 590.0 24.52 65.43 0.450.13 21.00 780 790 87.66 656.05 60.17 81.00 24.03 61.

ACTUAL CYCLE TIME

54.88

53.05

54.21

56.16

55.43

PLANNED CYCLE TIME
PERFORMANCE EFFICIENCY
OEE

55.34
53.8
100.84
101.41
57.7
60.43
Table no. 5.2

55.17
101.76
54.5

56.23
100.12
57.12

55.84
100.74
59.09

3. TMP 8000-

PARAMETER

JAN

FEB

MAR

APR

MAY

RUN-HOURS
BREAKS
PLANNEDSHUTDOWN
EFFECTIVE RUN HOURS

645

545

634

583

559

157.09

107.67

133.2

180.64

44.82

487.91

437.33

500.8

402.36

514.18

DOWN-TIME

260.64

186.73

227.15

219.59

262.91

DIES (Hrs.)

54.06

45.46

58.3

37.16

40.98

DIES %

11.08

10.4

11.64

9.24

7.97

OPER (Hrs.)

42.65

43.25

42.08

30.11

48.52

OPER %

8.74

9.89

8.4

7.48

9.44

EQPT (Hrs.)

123.37

62.71

89.06

117.1

121.05

EQPT %

25.29

14.34

17.78

29.1

23.54

GENERAL (Hrs.)

40.56

35.31

37.71

35.22

52.36

GENERAL %

8.31

8.07

7.53

8.75

10.18

UPTIME AT ACTUAL CYCLE

227.27

250.6

273.65

182.77

251.27

EQUIPMENT AVAILABILITY

46.58

57.3

54.64

45.42

48.87

TOTAL PRODUCTION

20,003

21,858

23,721

16,521

21,901

/

OK PRODUCTION

18,847.00 21,373.00 21,526.00 15,407.00

NOT OK PRODUCTION

1,156.00

485

2,195.00

1,114.00

560

QUALITY RATE

94.22

97.78

90.75

93.26

97.44

ACTUAL CYCLE TIME

40.9

41.27

41.53

39.83

41.3

PLANNED CYCLE TIME

40.9

41.3

41.51

39.82

41.26

PERFORMANCE EFFICIENCY

100

100.07

99.96

100

99.89

43.89
56.07
Table no. 5.3

49.57

42.36

47.57

OEE

70

21,341

4. TMP 12500-

PARAMETER

JAN

FEB

MAR

APR

MAY

RUN-HOURS

645

583

648

590

566

72.78

80.28

143.04

36.31

46.12

EFFECTIVE RUN HOURS

572.22

502.72

504.96

553.69

519.88

DOWN-TIME

258.51

208.23

246.19

255.25

289.44

DIES (Hrs.)

85.65

75.86

75.9

85.19

69.86

DIES %

14.97

15.09

15.03

15.39

13.44

OPER (Hrs.)

75.17

67.88

78.29

101.44

72.29

OPER %

13.14

13.5

15.5

18.32

13.91

EQPT (Hrs.)

61.38

28.9

79.08

47.65

98.15

EQPT %

10.73

5.75

15.66

8.61

18.88

GENERAL (Hrs.)

36.31

35.59

12.92

20.97

49.14

GENERAL %
UPTIME AT ACTUAL CYCLE
TIME

6.35

7.08

2.56

3.79

9.45

313.71

294.49

258.77

298.44

230.44

54.82

58.58

51.25

53.9

44.33

TOTAL PRODUCTION

29,490.00

26,608

23,762

26,312

20,589

OK PRODUCTION

28,686.00

25,958

22,742

25,625

19,899.00

804

650

1,020.00

687

690

QUALITY RATE

97.27

97.56

95.71

97.39

96.65

ACTUAL CYCLE TIME

38.3

39.84

39.2

40.83

40.29

PLANNED CYCLE TIME

38.52

39.84

39.2

40.82

40.2

PERFORMANCE EFFICIENCY

100.58

99.99

100

99.98

99.78

OEE

53.64
57.14
Table no. 5.4

49.05

52.48

42.75

BREAKS
/
SHUTDOWN

PLANNED

EQUIPMENT AVAILABILITY

NOT OK PRODUCTION

71

5. Wedge pressPARAMETER

JAN

FEB

MAR

APR

MAY

RUN-HOURS

529

387.5

435.5

407

496.5

BREAKS
/
PLANNED
SHUTDOWN
EFFECTIVE RUN HOURS

217.21

74.84

93.94

77.31

49.73

311.79

312.66

341.56

329.69

446.73

DOWN-TIME

151.47

153.19

169.62

178.86

233.07

DIES (Hrs.)

53.55

33.77

35.5

53.25

77.04

DIES %

17.18

10.8

10.39

16.15

17.24

OPER (Hrs.)

52.36

38

43.51

41.66

81.71

OPER %

16.79

12.15

12.71

12.64

18.29

EQPT (Hrs.)

32.77

26.58

26.3

24.21

31.17

EQPT %

10.51

8.5

7.7

7.34

6.98

GENERAL (Hrs.)

12.79

54.84

64.31

59.74

43.15

4.1

17.54

18.83

18.12

9.66

160.32

159.47

171.94

150.83

213.7

51.42

51

50.34

45.75

47.83

1,15,753.0
0
15,317.00

17,683.0
0
17,302

16,736.0
0
16,149

14,650.0
0
14,046

19,373.0
0
18,555

436

381

587.00

604

818

QUALITY RATE

97.23

97.85

96.49

95.88

95.78

ACTUAL CYCLE TIME

36.64

32.47

36.99

37.06

39.71

PLANNED CYCLE TIME

34.58

33.25

35.01

35.26

39.49

PERFORMANCE EFFICIENCY

94.39

102.41

94.65

95.13

99.11

OEE

47.19

51.11

45.98

41.73

46.07

GENERAL %
UPTIME AT ACTUAL CYCLE
TIME
EQUIPMENT AVAILABILITY
TOTAL PRODUCTION
OK PRODUCTION
NOT OK PRODUCTION

Table No. 5.5

At BFL among the three factors availability has a huge scope of improving.
Available time = scheduled time – down time
So, if we reduce the downtime the available time increases and hence the OEE.
72

III. Downtime due to operations include Setup Mismatch correction Heat symbol changes II. Mainly there are 4 types of downtime they are due to:  Operation  Dies  Equipment  General Few of the reasons for downtime on PZS 2 are- I.One of the main factors affecting OEE is availability. Insert change.  Backup dies not available. . Downtime due to dies include Die grinding  Adjustments  Insert not available. availability can be increased by reducing the downtime. Downtime due to equipment include PZS lower cassette not clamping  PZS ram not moving up/down  F/C waiting for soaking.  Padding dies grinding / welding  Butting block crack / budge / change  Die crack matching  Pad shift correction  PZS dies sent to die shop for correction  Die crack matching / land drop  Job sticking.

.

In PZS 2 the major downtime occurs due to dies and then operations.2 Pareto chart for major downtimes We can use pareto analysis to identify the top portion of causes that need to be addressed to resolve the majority of problems.  S/D . If we take PZS 2 press line and study all the reasons for downtime. Reasons Frequency Cumulative Percentage Frequency 1 Setup Actual 74 74 61 2 Heat Symbol Changes 22 96 79 3 Mismatch Correction 18 114 94 4 Double loading 2 116 95 5 Quality Checking 2 118 97 6 Dropout reprocessing 2 120 99 .  Reduce roll trials  Back up dies not available 5. Due to operation downtime- Sr.  S/D .73  PZS lubrication countdown. February.Furnace. 1. Downtime due to general  Planned shutdown.  Scale pit problem  Trial production. march. for the month of January. the idea that by doing 20% of the work you can generate 80% of the benefit of doing the entire job.  F/C 3rd zone temperature not increasing IV.Descaler Leakage. April and May. No.

74 .

7 PZS bottom cassette not 1 121 100 declamping Total 121 Table no.6 120 100 80 60 40 20 Series1 0 Series2 Graph No. Die no. so downtime cannot be reduced over there. 3768. we can forge parts on that die until the die run size is attained.1  Here we can see that setup actual and heat symbol changes are close to 80 % therefore these two reasons should be addressed first.plan is 600 parts but the run size is 1500 then we should forge 1500 parts at a time so that the rest could be used in the next month and be kept as WIP. 75 .  PZS 2 has automated setup change mechanism. 5.g. 5.  If the plan is short for this month for e.e. But we can utilize the die until it wears out i. This will reduce the time required for die change.

5. Due to dies – Sr. Reasons Frequency Cumulative Percentage Frequency 1 PZS die grinding 34 34 48 2 Correction 10 44 62 3 Die crack matching 7 51 72 4 Butting block crack/change/ 5 56 80 bulge 5 Insert not available 4 60 85 6 padding dies grinding 4 64 91 7 Insert change 3 67 95 8 Blow holes weld / repair 3 70 100 Total 70 Table no.7 120 100 80 60 40 20 Frequenc y Percenta ge 0 . No.2.

2 76 .Graph No. 5.

.  If the die is nitrided then it works without grinding for around 1000 pieces. Here we can see that PZS die grinding. die crack matching and butting block crack should be targeted first and planning should be done for these so that in future downtime due to these reasons reduce. corrections. whereas if the die is not nitride it has to be grinded after 150-200 pieces.  To reduce the downtime for die grinding the dies nitriding should be done on the dies before loading on the press.

77 .

Availability is the most important one in BFL. we have to reduce the downtime of machine.  Continuous implementation of 5S. As we know Preventive Maintenance is much better than Breakdown maintenance and is cost effective also. we should dedicate some time for the inspections every day before the start of each shift. Also to increase capacity. Die wear. Mismatch etc. So. we have to try and decrease our cycle time. Oil Leakage. Among the OEE factors. For increasing the current capacity utilization. .  Installation of more efficient supporting machines. This can be checked by  Using better quality die materials. We can decrease the cycle time by:  Continuous improvement of the way to do various operations. Downtime occurs mainly due to Die failure. we have to look into 2 things-Cycle time and OEE. To increase the Availability.  Better design of dies. SUGGESTIONS We have seen that the demand has been increasing and mostly the demand of parts which are generally forged in presses of PZS group is increasing.  Changes in the production line. we have to focus on how we can increase the Capacity of the group.  Regular preventive maintenance of the machines. We have prepared a checklist table for the preventive maintenance which can be done daily or at the start of every shift.6.

78 .

Increase capacity by: As the demand is increasing and we are not able to meet the needs of the customer due to less capacity. therefore we can increase the capacity by:  Adding extra shifts.1 Checklist of the Preventive maintenance Sl. 4 Check the oil temperature. 8 Check for wear and tear in the die.5. 11 Inspect all safety covers and connections. 12 Record press data. 10 Check all lights and alarms for proper functioning. 1 Check hydraulic lines and fitting for leaks. 6.2 Adjustment to capacity 1.  Scheduling overtime or weekends.1 5. 9 Check for cracks in the die. . 5 Check for loose bolts around the tooling area and fasten it. 7 Check the ram whether it is moist but not dripping oil. 6 Check lubrication on guided platens. Check list item Remarks No. 3 Ensure oil cleanliness. Table no. 2 Check the oil level and if necessary top it off.

79 .

Increase load by: The presses like TMP 8000 and TMP 12500 which are having more capacity but the load given is less. .  Holding work in production control. Adding equipment and/or personnel. there is a huge load on a certain press line but that press line may not be capable of handling that load so we can:  Reducing lot sizes.  Making items normally outsourced.  Eliminating shifts. 2.  Subcontracting work to outside suppliers. 4. Reduce capacity by: In few cases like TMP 8000 and 12500 where the capacity is more than demand here we can adjust capacity by:  Temporarily reassigning staff.  Reducing the number of shifts. Reduce load by: Sometimes. 3.  Increasing lot sizes. we can utilize the capacity by:  Releasing orders early.

80 .

It is also known as tracking strategy. here capacity is increased after demand has increased. Lag strategy is a conservative strategy. It decreases the risk of wastage but may result in loss of customer. 3.6.1 2. which is costly and often wasteful. Fig.I would suggest match strategy as it will not affect the company if a sector suffers global downturn. It is an aggressive strategy and used to lure customers away from competitors. Suggested strategy. The possible disadvantage is that it is often results in excess inventory. Lead strategy is adding capacity in anticipation of an increase in demand. Match strategy is adding capacity in small amounts in response to changing demand in the market. 81 .3 Capacity planning strategies There are mainly 3 capacity planning strategies: 1.5.

org/wiki/Capacity_planning 82 .com 2. www.forging. www.com 3.com 5.7. Third Edition 6.wikipedia.slideshare. REFERENCES 1.teamquest. www.bharatforge . Handbook of Industrial Engineering: Technology and Operations Management. www.oee. www.net/aarish9696/capacity-planning 7.org 4. www.