Canara Springs

CONTENTS

CHAPTER NO CHAPTER NAME

1 INTRODUCTION

2 COMPANY PROFILE

3 AN OVER VIEW OF COMPANY

DEPARTMENT

4 PRODUCTION PROCESS

5 CONCLUSIONS

BIBLIOGRAPHY

ANNEXURE

ACKNOWLEDGEMENT

We are elated to present our project on “A study on PRODUCTION

PROCESS IN CANARA WORKSHOPS LTD”. We deem it a privilege to

acknowledge to all those who have directly and indirectly helped me in the

preparation of this project report.

We would like to thank our Chairperson Dr.Mustiary Begum for giving me

an opportunity to carry out this study.

My sincere thanks to Mr. J.A.Saleem H.R Manager of CANARA SPRINGS

LTD who has given permission to carry on this project. And also I thank to

Mr.Suvarna and Vishwanath and all the staff members who have assisted me,

provided information and supported throughout my project.

We would like to thank our parents who encouraged us throughout the

making of this project report and also our, classmates, friends and well wishers for

their moral support, appreciation and sincere wishes.

1.NITHINRAJ

2.SUMITH PAWAR

3.ROSHAN.

4.SHIVARAJ.

Introduction To

Production And Operations Management

Definition Production and Operations Management ("POM") is about the transformation of production and operational inputs into "outputs" that, when distributed, meet the needs of customers.The process in the above diagram are often referred to as the "Conversion Process". There are several different methods of handling the conversion or production process - Job, Batch, Flow and Group POM incorporates many tasks that are interdependent, but which can be grouped under five main headings:

1. PRODUCT: Marketers in a business must ensure that a business sells products that meet customer needs and wants. The role of Production and Operations is to ensure that the business actually makes the required products in accordance with the plan. The role of PRODUCT in POM therefore concerns areas such as:

-Performance-Aesthetics-Quality-Reliability-Quantity-Production cost-Delivery dates

2. PLANT: To make PRODUCT, PLANT of some kind is needed. This will comprise the bulk of the fixed assets of the business. In determining which PLANT to use, management must consider areas such as:- Future demand (volume, timing)- Design and layout of factory, equipment, offices- Productivity and reliability of equipment- Need for (and costs of) maintenance

- Heath and safety (particularly the operation of equipment)- Environmental issues (e.g. creation of waste products)

3. PROCESSES: There are many different ways of producing a product. Management must choose the best process, or series of processes. They will consider:- Available capacity- Available skills- Type of production- Layout of plant and equipment- Safety- Production costs- Maintenance requirements

4. PROGRAMMES: The production PROGRAMME concerns the dates and times of the products that are to be produced and supplied to customers. The decisions made about programme will be influenced by factors such as:- Purchasing patterns (e.g. lead time)- Cash flow- Need for / availability of storage- Transportation

5. PEOPLE: Production depends on PEOPLE, whose skills, experience and motivation vary. Key people-related decisions will consider the following areas:- Wages and salaries- Safety and training- Work conditions- Leadership and motivation- Unionisation- Communication.

Types of Production Method

Definition: In our introduction to production and operations management ("POM") we suggested that there are several different methods of handling the conversion or production process - Job, Batch, Flow and Group. This revision note explains these methods in more detail.IntroductionThe various methods of production are not associated with a particular volume of production. Similarly, several methods may be used at different stages of the overall production process.

1. Job Method: With Job production, the complete task is handled by a single worker or group of workers. Jobs can be small-scale/low technology as well as complex/high technology.

Low technology jobs : here the organisation of production is extremely simply, with the required skills and equipment easily obtainable. This method enables customer's specific requirements to be included, often as the job progresses. Examples include: hairdressers; tailoring

High technology jobs: high technology jobs involve much greater complexity - and therefore present greater management challenge. The important ingredient in high-technology job production is project management, or project control. The essential features of good project control for a job are:

- Clear definitions of objectives - how should the job progress (milestones, dates, stages) - Decision-making process - how are decisions taking about the needs of each process in the job, labour and other resources

Examples of high technology / complex jobs: film production; large construction projects (e.g. the Millennium Dome)

2. Batch Method: As businesses grow and production volumes increase, it is not unusual to see the production process organised so that "Batch methods" can be used. Batch methods require that the work for any task is divided into parts or operations. Each operation is completed through the whole batch before the next operation is performed. By using the batch method, it is possible to achieve specialisation of labour. Capital expenditure can also be kept lower although careful planning is required to ensure that production equipment is not idle. The main aims of the batch method are, therefore, to:- Concentrate skills (specialisation)- Achieve high equipment utilisation This technique is probably the most commonly used method for organising manufacture. A good example is the production of electronic instruments. Batch methods are not without their problems. There is a high probability of poor work flow, particularly if the batches are not of the optimal size or if there is a significant difference in productivity by each operation in the process. Batch methods often result in the build up of significant "work in progress" or stocks (i.e. completed batches waiting for their turn to be worked on in the next operation).

3. Flow Methods: Flow methods are similar to batch methods - except that the problem of rest/idle production/batch queuing is eliminated.Flow has been defined as a "method of production organisation where the task is worked on continuously or where the processing of material is continuous and progressive,"The aims of flow methods are:

Improved work & material flow Reduced need for labour skills Added value / completed work faster

Flow methods mean that as work on a task at a particular stage is complete, it must be passed directly to the next stage for processing without waiting for the remaining tasks in the "batch". When it arrives at the next stage, work must start immediately on the next process. In order for the flow to be smooth, the times that each task requires on each stage must be of equal length and there should be no movement off the flow production line. In theory, therefore, any fault or error at a particular stageIn order that flow methods can work well, several requirements must be met:

(1) There must be substantially constant demand:

If demand is unpredictable or irregular, then the flow production

line can lead to a substantial build up of stocks and possibility storage

difficulties. Many businesses using flow methods get round this problem by

"building for stock" - i.e. keeping the flow line working during quiet periods of

demand so that output can be produced efficiently.

(2) The product and/or production tasks must be standardized:

Flow methods are inflexible - they cannot deal effectively with

variations in the product (although some "variety" can be accomplished

through applying different finishes, decorations etc at the end of the

production line).

(3) Materials used in production must be to specification and delivered on time:

Since the flow production line is working continuously, it is not a good idea to use materials that vary in style, form or quality. Similarly, if the required materials are not available, then the whole production line will come to a close - with potentially serious cost consequences.(4) Each operation in the production flow must be carefully defined - and

recorded in detail:

(5) The output from each stage of the flow must conform to quality standards:

Since the output from each stage moves forward continuously, there is no room for sub-standard output to be "re-worked" (compare this with job

or batch production where it is possible to compensate for a lack of quality by doing some extra work on the job or the batch before it is completed).The achievement of a successful production flow line requires considerable planning, particularly in ensuring that the correct production materials are delivered on time and that operations in the flow are of equal duration.Common examples where flow methods are used are the manufacture of motor cars, chocolates and television

BRIEF PROFILE OF THE COMPANY

HISTORY OF THE COMPANY

To trace the history of the Canara Workshops Ltd, we have to go back to the year 1914, when a small transport company by name, The Canara Public Conveyance Co was started in South canara with single bus operating between Mangalore and Bantwal.

The Problem of keeping the vehicles in good condition, repairs become an urgent one and this necessitated the establishment of a workshop to service and maintain own vehicles. Experience taught the company that the part, which frequently got broken owning to the bad conditions of the road, was the spring. Though in the earlier stages the broken springs were replaced with the new onces, experiments were conducted to repair the broken springs in the workshops itself.

1926 was the eventful year in the history of the company. It was in that year Mr.V.S.Kudva joined the company as engineer in-charge and took over the management of the workshops. His brilliant engineering and technical knowledge made the CPC workers one of the best in the south.

The outbreak of the second world war brought in its train a fall in the imports of spare parts and other necessaries for the automobile industry and the dream of Late Mr.V.S.Kudva an engineer, who profited in business and later drifted into industry. The Canara Workshop Ltd was established in 1943 in Maroli, a place about 6 kms east of Mangalore city. The company was set up with the objective of manufacturing laminated leaf springs to meet the demands of the domestic markets.

The necessary equipments was imported, specially trained personnel was employed, and the manufacture of auto springs fait accompli. The springs manufactured by the Canara Workshop were subjected to rigorous tests and quality control. They were accepted at first under the trade name of “Superior” auto springs. The springs become so popular that they were unable to meet the demand for such quality springs. This resulted in an expansion of the factory and doubling the output.

To meet the in house requirement of steel, Mr. Kudva established the alloy steel division in 1963. The division, which comprises of an eluric are furnace, a continuous casting plant (The first in India) and hot rolling mill, manufactures high quality springs steel bars. As a part of mordernization programme the company has built a new heat treatment section in 1994 to exclusively process the spring leaf requirement of light commercial vehicles.

CURRENT WORK FORCE

The company now has its Managing Director Mr.S.V.Kudva, a metallurgical engineer, and son of the founder. He joined the company in 1957, and was instrumental in designing and installing a full-fledged metallurgical laboratory. His son Mr.Premnath.S.Kudva, who is the executive director and Mr.Vasanth.S.Kudva, the managing director of the parent company, ably assists him. The management of the company works in close co-operation with its employees.

The total manpower of the company is 404. In which 13 are under contract, 9 managers, 55clerical and technical staff working in the company premises and 45 are staff recruited at various branches in the country, 6 are probationary workmen, while the rest i.e, 276 are permanent workmen.

COMPANY PRODUCTION CAPACITY

Table showing the production capacity of the company

YEAR ITEM INSTALLED CAPACITY (IN

METRIC TONNES)

PROCDUCTION

2006-07 Lamination Leaf Springs

10,300 8,021

Spring Steel 12,300 7,2002007-08 Lamination Leaf

Spring9,200 8,200

Spring Steel 13,200 5,6002008-09 Lamination Leaf

Spring15,200 6,200

Spring Steel 17,200 8,300

The Canara Workshops Ltd, has been producing laminated springs, assemblies and spare loose leaves for application ranging from small passenger cars and recreation vehicles to buses and heavy transport vehicles. For the industries the company has provided springs for crushers and power hammers. The company has also designed and manufactured leaf springs for ordance applications and certain aero applications where safety and long life are vital.

The annual capacity of the company production for the three previous financial year are given below.

CAPITAL STRUCTURE

The company is a public limited company. The authorized share capital of the company is up to 60,000, 10% cumulative preference share of Rs. 10 each and 49,40,000 equity shares of Rs.10 each.

The issue and paid up capital is 14,69,909 equity shares of Rs.10 each fully paid up. Of the 14,69,909 equity shares, 11,89,909 shares were allotted as fully paid up bonus shares by capitalization of reserves.

The reserves and surplus consists of Capital reserves, Capital redemption reserves, General reserves and Investment Allowance (utilized) Reserve.

The company also requires the secured loans from banks in the form of cash credit and term loans, which are secured by hypothecation of stocks, stores and book debts. The term loans are secured by hypothecation of assets.

The unsecured loans acquired by the company are in Fixed Deposits.

ALLOY STEEL DEPT MAINTENANCESPRINGS

WORK MANAGER

DEPUTY MANAGER

SINGLE MACHINE

SCHEDULING

ROLLING MILL

LEAF FINISHING

SHIFT ASST.

SUPERVISOR

LEAF PRODUCTION

SHIFT ASST.

ENGINEER

MECHANICAL ELECTRICAL

ENGINEER ASST.ENGINEER

REFACTORYSTEEL

MELTING

ASST.ENGINEER

ENGINEER SHIFT SUPERVISOR

ORGANIZATIONAL STRUCTURE OF PRODUCTION DEPARTMENT

AN OVERVIEW OF THE COMPANY’S DEPARTMENTS

The company has seven departments headed by managers at each of the department.

Production Department:

The company has two plants i.e. the Alloy Steel Plant and the Springs & General Engineering Plant. The Alloy Steel consists of 2 sections, i.e. Mini Steel Plant and Rolling Mill. The Springs & the General Engineering division also consists of 2 sections, the leaf processing and the leaf finishing section.

The production department functions are supported by the Planning Department in its day-to-day activities.

ORGANIZATIONAL STRUCTURE OF COMMERCIAL DEPARTMENT

COMMERCIAL MANAGER

STORES PURCHASE

ASST.MANAGER SENIOR ASST.MANAGER

SENIOR STORES OFFICER

SENIOR ASSISTANT

OFFICE ASSISTANT

ATTENDER

DRIVER CLEANER

Commercial Department:

This department is in charge of all purchases connected to the company right from stationery falls under general stores. The overall stores department is under the management of the commercial department.

The department is responsible for the procurement of the required materials as well as issuing the items to different departments accordingly through its stores department.

ORGANIZATIONAL STRUCTURE OF PLANNING & CONTROL DEPARTMENT

Page1

(QUALITY CONTROL DEPT)ASST. MANAGER

SENIOR LAB ASSISTANT

QUALITY CONTROL FOREMAN

QUALITY CONTROL INSPECTOR

LAB ATTENDER

Planning and Control Department:

This department is involved in drawing out schedules which production depends on and liasoning with other departments in matters concerning quality, manpower planning and production.

Quality Control Department:

This is headed by an assistant manager as an independent department directly responsible to the Executive Director.

Finance and Accounts department:

This department looks into all receipts and payments of the company. It keeps accounts of various branches as well as payments made to different suppliers.

This department arranges finance from the banks and looks into company affairs, like shareholders, dividend declaration and investment policies.

ORGANIZATIONAL STRUCTURE OF FINANCE AND ACCOUNT DEPARTMENT

FINANCE/ ACCOUNTS DEPARTMENT

COMPANY SECRETARYFINANCIAL CONTROLLER

ACCOUNTS MANAGER

OFFICER(CR) OFFICER(EDP)OFFICER(DR)

CASHIER

ATTENDER

ACCOUNTS ASSISTANT

Marketing Department:

The marketing department has been considered the most important department because of the external challenges it is facing. Canara Workshops Ltd has given profit being the prime motive of any trading company’s objective, this department.

There are 9 sales branches falling under company’s marketing department. The branches are as follows-

1. In Karnataka three branches, Bangalore, Hubli and Mangalore (other than head office).

2. In Kerala one branch at Calicut.

3. Coimbatore and Chennai are two branches in Tamilnadu.

4. In Andhra Pradesh there are two branches, Hyderabad and Vijayawad.

5. Maharastra has only one branch at Solapur.

ORGANIZATIONAL STRUCTURE OF PERSONNEL DEPARTMENT

GENERAL MANAGER

DEPUTY MANAGER PERSONNEL & ADMINISTRATION

SECURITY OFFICER PERSONNEL OFFICER

SHIFT SUPERVISOR

GUARDS

SENIOR ASST. (TRAINING OFFICER)

SENIOR ASST.(PAY-ROLL)

DRIVERS

ATTENDER

SWEEPERS

Personnel Department:

The department is headed by General Manager, which is at present vacant and assisted by Deputy Manager. The company’s personnel policy mainly covers the following subjects, which guide its activities:

1. Recruitment and Selection

2. Training

3. Promotion, demotion and transfers

4. Employee services

5. Rules and regulations

6. Wages and salaries

7. Welfare, etc.

PRODUCTION PROCESS

The production process begins at the roughing mill. The raw material required for the company are bought from Vishakapatanam. Aroud 250 tonnes of ballets and 75 to 100 tonnes plates are purchased from the supplier. Before raw materials were manufactured in the company itself by using casting machine, because of high production cost and low ton capacity of the machine the working have been stopped.

Now the materials purchased are first sent to the lab for testing. They undertake the following process

TEST REPORT

Chemical composition

Grades

Carbon Manganese

Silicon Sulphur

Promium

Chromium

Benzeum

EN45 0.50/0.60

0.70/1.00 1.50/2.00

0.045 0.045

EN45-A

O.55/0.65

0.70/1.00 1.70/2.00

0.045 0.045

60Si 7

0.58/0.65

0.80/1.00 1.50/2.00

0.045 0.045

65Si 7

0.60/0.70

0.80/1.00 1.50/2.00

0.045 0.045

SUP G

0.50/0.60

0.65/0.95 0.15/0.35

0.035 0.035 0.65/0.95

SUP IIA

O.55/0.65

0.70/1.00 0.15/0.35

0.035 0.035 0.70/1.00

0.0005

SUP 9A

0.55/0.65

0.70/1.00 0.15/0.35

0.035 0.035 0.70/1.00

EN45 and EN45-A are European standards.

Remaining 60Si 7, 65Si 7, SUP G, SUP IIA and SUP 9A these are of Japan standards.

2) Inclusion Rating (IS 4163-1982)

Sulphide Alumina Silicate Globular Oxide

Maximum 2.5H/T 2.5H/T 2.5H/T 2.5H/T

3) Grain size

(ASIM) 6 to 8.

4) Decarbonisation limits (IS 6396-1983)

(i) 0.5mm max- Full Decarbonisation

(ii) 0.25mm max- Partial Decarbonisation

5) Hardness Range B.H.N

388 to 444

6) Shot Peening Intensity

Alumin Arc Height ‘A’ min 0.60 (is 7001-1989)

7) Micro Structure.

Tempered Martensite

These are the minimum requirement that the raw material should contain for the best quality. If these standards are not met they are sent back to the suppliers. This is to avoid cracks in the ballet during the process.

The ballets which are approved after lab testing goes for the production process. At first, these ballets cut into various size such as 75mmsq, 100mmsq, 60mmsq and 90mmsq. Then these ballets are pushed into furnace for heating at a temperature of 1150°c. Around 140 ballets are pushed into furnace for soaking which requires one and half hour then it is ejected from the furnace and then it is passed though roughing mill in order to get the ballets in the required size. Here the extra size of the ballets are also reduced to the size required. After the ballets are pulled these are transferred to next mill known as Leaf processing.

Leaf processing mill;

The following chart explains the process taking place in this mill.

BALLET

MAIN PLATE MAIN PLATE GAURD

CLAMPSHARING

FURNISHING

EYE ROLLING

SHARING

SHARING

FURNISHING

160TON POWER PRESS

WRAPERDRILLING

LEAF PROCESSING MILL(PROCESS II)

The ballets brought from roughing mill are then cut according to the required size and this process is done through shearing machine. After shearing the process are divided into three parts;

1) Main plate2) Main plate guard3) Clamp

Main plate:

After the required size is cut for main plate for sharing machine the ballets are passed to furnace machine for heating. After heating, both the edges of the ballets are bended using Eye-rolling machine. If there is any emergency manual Eye rolling machine is also used.

Main plate guard:

Ballets passes through furnace after sharing and it passes through 160 ton power press machine where both the edges of the ballets are half bended. This plate act as a guard for the main plate in order to avoid ware out of the main plate at the time of heavy weight carriage.

Clamp:

Here after shearing the ballets are bend ‘U’-shape using 50 ton power press machine, in order to get clamp. The clamp is used as covers for the plates.

Finally main plate guard, main plate and clamps are made holes of different size using drilling machine. This has been done in order to set all the plates to form a spring.

Other than drilling machine there is another machine called buttoning machine, where instead of drilling the hole buttoning is done in the plates. But this machine is rarely used now a days.

Oil pumping machine: this machine helps to pump the oil for the furnace.

Leaf finishing Mill

This mill consist of 2 machines such as walking beam and conveyance machine, out of which walking beam is not in process. After drilling, the plates are then passed through conveyance furnace for heat treatment. After heat treatment the plates are passed through cambering machine to bend the plates into boat shaped curve. After that plates which have been bended are hardened, which takes 45 minutes. Then it is passed through tempering to cool the plates which takes one and half hour.

After the plates have been tempered it is sent through shot peen machine for surface cleaning and educe pension. After this the plates are painted, the name of the company, serial number etc are punched on it using steansealing machine.

Finally finished plates goes to dispatch section.

Here the production process ends.

Conclusion

The study reveals that the workers are aware of the company’s limitation. Moreover they are satisfied with the personal management and practice of the company. However there are certain areas where the management have to make improvement viz., induction and training, welfare, disciplinary action, industrial relation aspects and production machinery etc.

BIBLIOGRAPHY

1.Production and Operations Management

Adam and Erbert

2.Material Management. Gopalakrishanan and Sundareshan

3. Modern Production Management. John Wiley

4.INTERNET WWW.GOOGLE.COM

Journals

Personnel Today : Volume X. No.3.

1989 (OCT- DEC)

: Volume XVI NO.3

1995