Model Project-Part 2

8/8/2019 Model Project-Part 2

1/32

o Per shift 30 rolls are made and kept in the bias-cutting room which

is air-conditioned

3.1.2 Building

o There are three machines available.

Activities done are:

o Fitting the mould in the building machine;

o Silicon application on mould;

o Putting next layer Jacket;

o Cord is rolled above this layer;

o Rubber sheet is rolled in required numbers as per the width

required for a specification.

o Mould of different diameter is used as per the requirement.

3.1.3 Vulcanizing (or Pot Curing)

o There are three machines available.

o It follows differential pressure curing method.

o Mould should be kept for 30 minutes inside the pot.

o Defect in this process may be that, the operator will take the mould

before 30 minutes itself.

3.1.4 Cooling

o Tank of water at a particular cool temperature is maintained.

o Mould is immersed inside this water for cooling for ten mins.

o Process starting from building stage up to the present stage must be

completed within a day so that the rubber quality is maintained.

o Defect in this process is that, the operator may take the mould

before the stipulated ten minutes period.

3.1.5 Stripping

o A single machine is available.

o Rubber and the mould are separated at this process using a machine.

3.1.6 Strip/Square Cutting



2/32

o Cuts the rubber which looks like hollow cylinder into belts of

different sizes as per the requirement.

3.1.7 Grinding

o There are six machines available.

o Two machines are imported from China. The belts are grinded a

single time in these machines, whereas in the rest four machines the

grinding is done in two machines for neat finish. i.e., once the grooves

are made in one machine as rough finish and final touch is done by

another machine.

o Grooves are created at this process.

o Specification of the belt varies as per the diameter and the no. of

grooves.

3.1.8 Single-belt cutting


o Same mechanism as Strip cutting is applied here.

o Difference is that, in strip cutting, for conveniences of grinding the

belt are cut in twos or threes.

o Here, the belts are cut into individual pieces. [E.g.: if 4 groove

belts are required, then it will be cut into 24 groove belts in the strip-

cutting process, which will be comfortable in grinding instead of 6*4

belts.]

o Final step is done by the single-belt cutting machine.

3.1.9 Dust-cleaning machine


o It cleans the dust in the belt completely.

3.1.10 Visual inspection

o Three staff does the inspection work manually.

o They will visually see for flaws in the belt and will reject if they

find any.

3.1.11 Coding


3/32


o It is similar to inspection, but performed with a machine.

o It checks the length of each belt with respect to the specification.

3.1.12 Taken to finished goods warehouse for dispatch to customers

oThe finished products after the production process will be transferred to

the finished goods department for dispatching to the customers.


4/32


5/32

4 Analysis & interpretation

The following section analyses the data collected through secondary sources in the form

of tables and provides interpretations for the same.

Table 4.1 Standards Vs Actuals for the month of October 2009

Machinery

Machine

hours

available

Rated

production

(in units)

Actual

hours

utilized

Actual

production

(in units)

Bias Cutting 504 2160 489.33 2086

Building 1 504 2880 469.50 2664

Building 2 504 2160 460.75 2030

Building 3 504 2160 452.60 2006Pot curing 504 7200 443.52 6700

Stripping 504 5040 501.40 5213

Strip cutting 504 5040 502.42 5616

Grinding 504 100800 425.83 88315

DRO cutting 504 115200 501.31 123651

Dust cleaning 504 96000 409.99 69975

Coding 504 120000 492.64 108000

Table 4.1 shows the comparison between the machine hours available and actual hours

utilized and the rated production from each machine Vs actual production for the period

of October 2009.

Available machine hours are computed as follows:

No. of working days in October 2009 = 24

Time available for production per day = 21 hours

Time available for production in Oct 2009 = 21 hours*24 days = 504 hours

Actual hours utilized in each machine is computed by deducting the breakdown time of

each machine.


6/32

Table 4.2 Productivity during October 2009

MachineryProductivity

%

Actual

Hours %

Bias cutting 96.57 97.09

Building 1 92.50 93.15

Building 2 93.98 91.42

Building 3 92.87 89.80

Pot curing 93.06 88.00

Stripping 103.43 99.48

Strip cutting 111.43 99.69Grinding 87.61 84.49

DRO cutting 107.34 99.47

Dust cleaning 72.89 81.35

Coding 90.00 97.75

Computation of productivity for Table 4.2

Productivity (in terms of output) = Actual Production * 100

Rated Production

Actual Hours % = Actual hours utilized * 100

Available time

From Table 4.2 it is evident that, Dust cleaning machine has the lowest productivity and

highest downtime.


7/32

Table 4.3 Standards Vs Actuals for the month of November 2009



of November 2009.

Machinery

Machine

hours

available

Rated

production

(in units)

Actual

hours

utilized

Actual

production

(in units)

Bias Cutting 546 2340 521.33 2184

Building 1 546 3120 499.32 2879

Building 2 546 2340 511.45 2128

Building 3 546 2340 479.81 1983

Pot curing 546 7800 500.74 6990

Stripping 546 5460 543.68 6084

Strip cutting 546 5460 545.67 6084

Grinding 546 109200 425.49 80286

DRO cutting 546 124800 545.33 140400

Dust cleaning 546 104000 501.62 92134

Coding 546 130000 482.9 117000


8/32


No. of working days in November 2009 = 26

Standard time available for production per day = 21 hours

Standard time available for production in Nov 2009 = 21 hours*26 days = 546 hours

Actual time taken in each machine is computed by deducting the breakdown time of each

machine.

Table 4.4 Productivity during November 2009

MachineryProductivit

y %

Actual

Hours %


Building 1 92.28 91.45Building 2 90.94 93.67

Building 3 84.74 87.88



Strip cutting 111.43 99.94

Grinding 73.52 77.93



Coding 90.00 88.44



Rated Production


Available time


9/32

From Table 4.4 it is evident that, Grinding machine has the lowest productivity and

highest downtime.

Table 4.5 Standards Vs Actuals for the month of December 2009

Machinery

Machine

hours

available

Rated

production

(in units)

Actual

hours

utilized

Actual

production

(in units)

Bias Cutting 546 2340 532.61 2300

Building 1 546 3120 512.33 2885

Building 2 546 2340 520.40 2220Building 3 546 2340 525.67 2283

Pot curing 546 7800 499.09 7388

Stripping 546 5460 543.08 5850

Strip cutting 546 5460 539.75 5850

Grinding 546 109200 470.51 95413

DRO cutting 546 124800 545.42 135000

Dust cleaning 546 104000 455.54 82976

Coding 546 130000 462.36 112500



of December 2009.


No. of working days in December 2009 = 26


10/32

Standard time available for production per day = 21 hours

Standard time available for production in Dec 2009 = 21 hours*26 days = 546 hours

Actual time taken in each machine is computed by deducting the breakdown time of each

machine.

Table 4.6 Productivity during December 2009

MachineryProductivity %

(output)

Actual

Hours %


Building 1 92.47 93.83Building 2 94.87 95.31

Building 3 97.56 96.28



Strip cutting 107.14 98.86

Grinding 87.37 86.17



Coding 86.54 84.68



Rated Production


Available time


11/32

From Table 4.6 it is evident that, Dust cleaning machine has the lowest productivity and

highest downtime.

Maintenance cost of each machinery along with percentage analysis

Table 4.7 October 2009 Maintenance cost

This table shows the maintenance cost incurred for each machine during October 2009.

Table 4.7 shows that 50% of the total maintenance cost has been incurred for Grinding

machine during October 2009.

Figure 4.1 Maintenance Cost incurred during October 2009:

Machinery Cost (Rs) %

Bias Cutting 405 1.34

Building 1 1841 6.10

Building 2 4386 14.53

Building 3 2829 9.37Pot curing 3020 10.00

Stripping 648 2.15

Strip cutting 703 2.33

Grinding 15093 50.00

DRO cutting 507 1.68

Dust cleaning 388 1.29

Coding 366 1.21

Total cost 30186 100


12/32

Figure 4.1 shows the total maintenance cost that has been incurred for machinery during

October 2009. It is evident from the above chart that, Grinding machine has incurred the

highest maintenance cost of 51% during October 2009.

Table 4.8 November 2009 Maintenance cost

This table shows the maintenance cost incurred for each machine during November 2009.

MachineryCost

(Rs)%

Bias Cutting 1624 1.92Building 1 8006 9.48



Pot curing 8232 9.75

Stripping 2367 2.80





Coding 1867 2.21

Total cost 84426 100

Table 4.8 shows that 49.88% of the total maintenance cost has been incurred for Grinding

machine during November 2009.

Figure 4.2 Maintenance Cost incurred during November 2009

Maintenance Cost

1% 6%15%

9%

10%

2%

2%

51%

2%

1%

1%

Bias cutting

Building 1

Building 2

Building 3

Pot curing

Stripping

Strip cutting

Grinding

DRO cutting

Dust cleaning

Coding


13/32

Maintenance cost

2% 9% 7%

8%

10%

3%

4%

51%

2%

2%

2%

Bias cutting

Building 1

Building 2

Building 3

Pot curing

Stripping

Strip cutting

Grinding

DRO cutting

Dust cleaning

Coding

Figure 4.2 shows the total maintenance cost that has been incurred for machinery duringNovember 2009. It is evident from the above chart that, Grinding machine has incurred

the highest maintenance cost of 51% during November 2009.

Table 4.9 December 2009 Maintenance cost

This table shows the maintenance cost incurred for each machine during December 2009.

Machinery

Cost

(Rs) %Bias Cutting 1798 1.41

Building 1 13210 10.36

Building 2 12065 9.46

Building 3 12977 10.18

Pot curing 12751 10.00

Stripping 3003 2.36





Coding 1436 1.13

TOTAL COST 127506 100

Table 4.9 shows that 49.95% of the total maintenance cost has been incurred for Grinding

machine in December 2009.

Figure 4.3 Maintenance Cost incurred during December 2009


14/32

Figure 4.3 shows the total maintenance cost that has been incurred for machinery during

December 2009. It is evident from the above chart that, Grinding machine has incurred

the highest maintenance cost of 51% during December 2009.

Table 4.10 Computation of downtime for October 2009

Machinery

Machine

hoursavailable

Actual

hoursutilized

Downtime

Bias Cutting 504 489.33 14.67

Building 1 504 469.50 34.50

Building 2 504 460.75 43.25

Building 3 504 452.60 51.40

Pot curing 504 443.52 60.48

Stripping 504 501.40 2.60

Strip cutting 504 502.42 1.58

Grinding 504 425.83 78.17DRO cutting 504 501.31 2.69

Dust cleaning 504 409.99 94.01

Coding 504 492.64 11.36

Maintenance cost

1% 10%9%

10%

10%

2%

2%

51%

3%

1%

1%

Bias cutting

Building 1

Building 2Building 3

Pot curing

Stripping

Strip cutting

Grinding

DRO cutting

Dust cleaning

Coding


15/32

Downtime of each machine is the difference between machine hours available and the

actual hours utilized. From Table 4.10, it is evident that Dust cleaning machine suffers

from the highest downtime and Grinding machine stands next.

Table 4.11 Computation of downtime for November 2009

MachineryMachine

hours

available

Actualhours

utilized

Downtime

Bias Cutting 546 521.33 24.67

Building 1 546 499.32 46.68

Building 2 546 511.45 34.55

Building 3 546 479.81 66.19

Pot curing 546 500.74 45.26

Stripping 546 543.68 2.32

Strip cutting 546 545.67 0.33Grinding 546 425.49 120.51

DRO cutting 546 545.33 0.67


Coding 546 482.90 63.10


16/32


actual hours utilized. From Table 4.11 it is evident that, Grinding machine suffers from

the highest downtime and Building machine 3 has the second highest downtime.

Table 4.12 Computation of downtime for December 2009

Machinery

Machine

hours

available

Actual

hours

utilized

Downtime

Bias Cutting 546 532.61 13.39

Building 1 546 512.33 33.67

Building 2 546 520.4 25.60

Building 3 546 525.67 20.33

Pot curing 546 499.09 46.91

Stripping 546 543.08 2.92Strip cutting 546 539.75 6.25

Grinding 546 470.51 75.49

DRO cutting 546 545.42 0.58


Coding 546 462.36 83.64


17/32


actual hours utilized. From Table 4.12 it is evident that, Dust cleaning machine suffers

from the highest downtime and Coding machine stands next.

Table 4.13 Loss of production (in units) due to under utilization for October 2009

Machinery DowntimeProductivit

y (%)

Loss of

production

Contributionto total loss

(%)

Bias cutting 14.67 96.57 1417 4.10

Building 1 34.50 92.50 3191 9.24

Building 2 43.25 93.98 4065 11.77

Building 3 51.40 92.87 4774 13.82

Pot curing 60.48 93.06 5628 16.30

Stripping 2.60 103.43 269 0.78

Strip cutting 1.58 111.43 176 0.51

Grinding 78.17 87.61 6848 19.83

DRO cutting 2.69 107.34 289 0.84

Dust cleaning 94.01 72.89 6852 19.84

Coding 11.36 90.00 1022 2.96

The loss of production is computed as follows:


18/32

Loss of production (in units) = Downtime * Productivity

The contribution to total loss refers to the contribution of loss of each machine in %.

From Table 4.13 it is evident that, Grinding machine and Dust cleaning machine

contributes the highest loss in production.

Figure 4.4 Loss of production from each machine during October 2009

Loss of Productio

0

2000

4000

6000

8000

loss of production

Machine

Units

lost

Bias cutting

Building 1

Building 2

Building 3

Pot curing

StrippingStrip cutting

Grinding

DRO cutting

Dust cleaning

Coding

From Figure 4.4 it is evident that, Grinding machine and Dust cleaning machine have the

highest loss of production during October 2009.

Figure 4.5 Contribution to Total Loss for October 2009


19/32

Contribution to Total Loss

4%9%

12%

14%

16%1%1%

19%

1%

20%

3%Bias cutting

Building 1

Building 2

Building 3

Pot curing

Stripping

Strip cutting

Grinding

DRO cutting

Dust cleaning

Coding

From Figure 4.5 it is evident that, Grinding machine and Dust cleaning machine

contribute maximum to the total loss during October 2009.

Table 4.14 Loss of production (in units) due to under utilization for November 2009


y (%)

Loss of

production

Contribution

to total loss

(%)

Bias cutting 24.67 93.33 2302 6.02

Building 1 46.68 92.28 4308 11.26

Building 2 34.55 90.94 3142 8.21

Building 3 66.19 84.74 5609 14.66

Pot curing 45.26 89.62 4056 10.60

Stripping 2.32 111.43 259 0.68

Strip cutting 0.33 111.43 37 0.10

Grinding 120.51 73.52 8860 23.16

DRO cutting 0.67 112.50 75 0.20


20/32

Dust cleaning 44.38 88.59 3932 10.28

Coding 63.10 90.00 5679 14.84




From Table 4.14 it is evident that, Grinding machine contributes the highest loss in

production.

Figure 4.6 Loss of production from each machine during November 2009

Loss of production

0

2000

4000

6000

8000

10000

loss of production

Machine

Units

lost

Bias cutting

Building 1

Building 2

Building 3

Pot curing

Stripping

Strip cutting

Grinding

DRO cutting

Dust cleaning

Coding

From Figure 4.6 it is evident that, Grinding machine has the highest loss of production

during November 2009.

Figure 4.7 Contribution to Total Loss for November 2009


21/32

Contribution to Total Loss

6%

11%

8%

15%

11%1%0%

23%

0%

10%

15%

Bias cutting

Building 1

Building 2

Building 3

Pot curing

Stripping

Strip cutting

Grinding

DRO cutting

Dust cleaning

Coding

From Figure 4.7 it is evident that, Grinding machine contributes maximum to the total

loss during November 2009.

Table 4.15 Loss of production (in units) due to under utilization for December 2009


y (%)

Loss of

production

Contribution

to total loss

(%)

Bias cutting 13.39 98.29 1316 3.72

Building 1 33.67 92.47 3113 8.80

Building 2 25.60 94.87 2429 6.86

Building 3 20.33 97.56 1983 5.61

Pot curing 46.91 94.72 4443 12.56

Stripping 2.92 107.14 313 0.88

Strip cutting 6.25 107.14 670 1.89

Grinding 75.49 87.37 6596 18.64

DRO cutting 0.58 108.17 63 0.18

Dust cleaning 90.46 79.78 7217 20.40


22/32

Coding 83.64 86.54 7238 20.46




From Table 4.15 it is evident that, Dust cleaning machine and Coding machine

contributes the highest loss in production.

Figure 4.8 Loss of production from each machine during December 2009

Loss of Production

0

2000

4000

6000

8000

loss of production

Machine

Units

lost

Bias cutting

Building 1

Building 2

Building 3

Pot curing

Stripping

Strip cutting

Grinding

DRO cutting

Dust cleaning

Coding

From Figure 4.8 it is evident that, Dust cleaning machine and Coding machine have the

highest loss of production during December 2009.

Figure 4.9 Contribution to Total Loss for December 2009


23/32

Contribution to Total Los

4%9%

7%

6%

13%

1%2%19%

0%

19%

20%

Bias cutting

Building 1

Building 2

Building 3

Pot curing

Stripping

Strip cutting

Grinding

DRO cutting

Dust cleaning

Coding

From Figure 4.9 it is evident that, Dust cleaning machine and Coding machine contribute

maximum to the total loss during December 2009.

Table 4.16 Correlation between Maintenance cost and Loss in production for

October 2009

Machinery Cost

Loss of

production

Bias cutting 405 1417

Building 1 1841 3191



Pot curing 3020 5628

Stripping 648 269

Strip cutting 703 176


24/32

Grinding

1509

3 6848

DRO cutting 507 289

Dust cleaning 388 6852

Coding 366 1022

The correlation coefficient between Maintenance cost incurred during October 2009 and

the Loss of Production is 0.58599. This denotes the strength of relationship between the

two variables is strong.


November 2009

Machinery Cost

Loss ofproduction

Bias cutting 1624 2302.45

Building 1 8006 4307.63

Building 2 5523 3141.98

Building 3 7105 5608.94

Pot curing 8232 4056.20


25/32

Stripping 2367 258.52


Grinding 42109 8859.90



Coding 1867 5679.00

The correlation coefficient between Maintenance cost incurred during November 2009

and the Loss of Production is 0.70799. This denotes the strength of relationship between

the two variables is strong.


December 2009

Machinery Cost

Loss ofproduction

Bias cutting 1798 1316.10

Building 1 13210 3113.46

Building 2 12065 2428.67

Building 3 12977 1983.39

Pot curing 12751 4443.32


26/32

Stripping 3003 312.85


Grinding 63692 6595.56



Coding 1436 7238.21

The correlation coefficient between Maintenance cost incurred during December 2009

and the Loss of Production is 0.87231. This denotes the strength of relationship between

the two variables is strong.


27/32

5.1 Findings

There is consistency in the levels of

productivity of each machine from October 2009 to December 2009.

There is consistency in downtime of each

machine during October 2009 till December 2009.

On an average 50% of the maintenance cost

is incurred for Grinding machine during these months.

Dust cleaning machine and Grinding

machine are prone to breakdown the highest number of times during these three

months.


28/32

Dust cleaning machine and Grinding

machine contribute to the highest loss of production during two of the three

months.

There exist high positive correlation

between Maintenance cost and Loss of Production consistently during the three

months. This implies, higher the maintenance cost, higher the loss in

production.

5.2 Reasons

Grinding machine and Dust cleaning machine suffer from the productivity

problems when compared to other machines. The reasons are:

Breakdown time for Grinding machine and Dust cleaning machine

are the highest than for other machinery. This makes the maintenance

expensive.

The number of trainees engaged in October 2009 was 36, in

November 2009 were 38 and in December 2009 it was 47. There is clear

evidence that absenteeism and attrition during this period has been high.

The trainees are not provided with formal training for machinery

operation, thus leading to reduced output from every machine, affecting

the productivity considerably.

5.3 Suggestions

The increased expenditure on maintenance will have an impact on the profitability

of Poly-V department. In order to reduce such increased expenditure on

maintenance, the organization can even consider capital budgeting decisions by

investing in new machinery for Grinding and Dust cleaning, as 50% of the total

expenditure is spent for Grinding machine.


29/32

Standardized Training shall be provided to the trainees to help them acquire

knowledge in operating the machinery in the right manner.

The production in Poly-V department is based on orders. It has only 16 permanent

employees. The production department must take due care that at least one person

operating each machine is a permanent employee and is an experienced person.

This increases the morale of permanent employee as well as helps in increasing

the productivity.

A well trained employee with at least 1 year of operating experience can be

placed in the machinery which faces repeated breakdowns, and on bottleneck

equipments.

Automation of processes for important tasks like Curing (by setting the time for

curing), Grinding (the duration to be grinded), etc., will reduce the possibility of

mishandling of machinery by the trainees, thereby reducing the chances of

breakdown to an extent.

By utilizing the excess labor to replace absentee workers and training them by

adding a production shift during weekends for the purpose of on the job training

can be done.


30/32

6.1 Conclusion

From the study undertaken at Fenner India Limited, it is evident that:

Excepting Stripping, Strip cutting and DRO cutting machinery, the

productivity levels of machinery are not up to the standard.


31/32

As Dust cleaning and Grinding machine are contributing the most to loss in

production, capital budgeting decisions regarding the same is recommended

to the organization in order to improve productivity and reducing loss in

production to an extent.

Bibliography:


32/32

1. Raj. K. Wadhwa, Jimmy Davar and P. Bhaskara Rao, Production management and

inventory control.

2. The ICFAI University Journal of Operations Management, Vol. VII, No.4, 2008.

3. Analyzing machine efficiency, National Public Accountant, The, Dec, 1994 by Cindy

D. Edmonds, Bor Yl Tsay, Wen-Wei Lin

4. www.measureproductivty.com
http://findarticles.com/p/articles/mi_m4325/http://findarticles.com/p/articles/mi_m4325/is_n12_v39/http://findarticles.com/p/search/?qa=Cindy%20D.%20Edmondshttp://findarticles.com/p/search/?qa=Cindy%20D.%20Edmondshttp://findarticles.com/p/search/?qa=Bor%20Yl%20Tsayhttp://findarticles.com/p/search/?qa=Wen-Wei%20Linhttp://findarticles.com/p/articles/mi_m4325/http://findarticles.com/p/articles/mi_m4325/is_n12_v39/http://findarticles.com/p/search/?qa=Cindy%20D.%20Edmondshttp://findarticles.com/p/search/?qa=Cindy%20D.%20Edmondshttp://findarticles.com/p/search/?qa=Bor%20Yl%20Tsayhttp://findarticles.com/p/search/?qa=Wen-Wei%20Lin

Model Project-Part 2

Documents

Transcript of Model Project-Part 2