ENSURE AVAILABILITY MATERIAL HANDLING EQUIPMENTS A SUMMER INTERNSHIP PROJECT Submitted by PARESH VENGULKAR In partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Under the guidance of Mr. Chandrajit Bagal Group Leader SCM Department KIRLOSKAR OIL ENGINES LIMITED SCHOOL OF MANAGEMENT STUDIES NATIONAL INSTITUTE OF TECHNOLOGY CALICUT NIT CAMPUS PO, CALICUT KERALA, INDIA 673601 (JUNE-JULY, 2013)
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College Internship Report Kirloskar Oil Engines Limited
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ENSURE AVAILABILITY MATERIAL HANDLING EQUIPMENTS
A SUMMER INTERNSHIP PROJECT
Submitted by
PARESH VENGULKAR
In partial fulfillment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
Mr. Chandrajit Bagal
Group Leader SCM Department
KIRLOSKAR OIL ENGINES LIMITED
SCHOOL OF MANAGEMENT STUDIES
NATIONAL INSTITUTE OF TECHNOLOGY CALICUT
NIT CAMPUS PO, CALICUT
KERALA, INDIA 673601
(JUNE-JULY, 2013)
ENSURE AVAILABILITY MATERIAL HANDLING EQUIPMENTS
A SUMMER INTERNSHIP PROJECT
Submitted by
PARESH VENGULKAR
In partial fulfilment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
Mr. Chandrajit Bagal
Group Leader SCM Department
KIRLOSKAR OIL ENGINES LIMITED
SCHOOL OF MANAGEMENT STUDIES
NATIONAL INSTITUTE OF TECHNOLOGY CALICUT
NIT CAMPUS PO, CALICUT
KERALA, INDIA 673601
(JUNE-JULY, 2013)
DECLARATION
I hereby declare that this submission is my own work and that, to the best of my
knowledge and belief, it contains no material previously published or written by
another person nor material which has been accepted for the award of any other
degree or diploma of the university or other institute of higher learning, except where
due acknowledgment has been made in the text.
Place: Kolhapur Signature
Date: 20-07-2013 Name: Paresh Vengulkar
Reg. ID: M120008MS
CERTIFICATE
This is to certify that the summer internship project report submitted by Paresh
Vengulkar to School of Management Studies, NIT, Calicut and Kirloskar Oil Engines
Limited, Kagal in partial fulfilment of the requirements for the award of the degree
of Master in Administration is a bona fide record of the research work carried out by
him under my (our) supervision and guidance. The content of the thesis, in full or
parts have not been submitted to any other Institute or University for the award of
any other degree or diploma.
Place Kolhapur
Mr. Chandrajit Bagal
Date 20-07-2013 (Group Leader SCM Departent)
ACKNOWLEDGEMENT
It is matter of honor for me to express my gratitude towards all those who guided
directly and indirectly in completing this project report. I would like to specially thank,
Mr. Chandrajit Bagal (Group Leader SCM Department), for all his valuable guidance
and resources provided; Mr. Digvijay Ingale for his support and information
throughout this project and Mr. Rahul Pawar (Human Resource Department) for
giving me an opportunity to do the Internship at Supply chain management
Department, Kirloskar Oil Engines Limited, Kagal.
Date: 20-07-13
Place: Kolhapur Paresh Vengulkar
SOMS, NITC
Reg. ID M120014MS
INDEX
ITEM
Executive Summary
Company Overview
Problem Statement
Objective
Literature Review
Research Methodology
Analysis of Data
Conclusion
Appendix
EXECUTIVE SUMMARY
KIRLOSKAR OIL ENGINE LIMITED KAGAL, Engine plant one is big size plant in which has fast
moving items is consumed in daily production plan. There is more than 200 engines are
made in daily production.
And continuous supply of raw material makes it very complex process. Most of raw material
is heavy in nature, so carry them to the different parts of the plant is very difficult task.
So in order to speed up in-house supply chain, KOEL has been using advance material
handling equipments.
Productivity of the plant depends on supply of raw material and movement of finished
goods, this project aims at studying the use of material handling equipments and ensures its
availability.
COMPANY OVERVIEW
It has now been more than a century since the Kirloskar story started. They started
with an aim of becoming the pioneers in fields in which our country needed
innovation.
In the 100 years and more that they have been in existence as a family and as an
organization, they've been seminal to Indian agricultural and industrial development.
They gave India its first iron plough, pump and engine; inventions that were derived
from the need of the hour and went on to become signs of the time. Which is why
their group history can in many ways can be considered a history of the economic and
industrial revolution in India
Kirloskar Oil Engine Limited (KOEL) will set up a greenfield export-oriented unit at
Kagal in Kolhapur district for an investment of Rs. 550 crores which will manufacture
100,000 engines.
The Memorandum of Understanding to this effect was signed by KOEL Chairman and
Managing Director Mr. Atul Kirloskar and Industry Secretary Mr. V K Jairath. Industry
minister Mr. Ashok Chavan, Chief Secretary Mr. D K Sankaran and other senior
officials from the state government and KOEL were present.
VISION AND VALUES:
GUIDING PRINCIPLES:
Innovation, speed and transparency are the organizational personality traits that we nurture
and develop.
Building on these values and guiding principles we aim to maintain our position as the
world's leading player in the diesel engine segment and to offer the best in its class products
and services to all our customers around the world.
PRODUCTS OF KIRLOSKAR OIL ENGINES ( KAGAL )
GENSETS:
KOEL specialises in the manufacture of both air
generating sets across a wide range of power output from 5 kVA to 625 kVA and 1800 kVA
to 6300 kVA. We also offer engines operating on alternative fuels such as bio
gas, biogas and straight vegetable oil (SVO). The “Kirloskar Green Genset” is the market
leader and most preferred brand among customers in the power generation and telecom
industry in India.
Our customised power solutions suits a wide range of application
and prime power requirements. Our generating sets are available in both open and sound
proof, environmentally friendly canopies.
The major markets served are:
Service industries such as telecom, IT/ITES, BPO, shopping malls, hotels
banks; educational and financial institutions.
Infrastructure projects such as airports, roads, bridges, residential and commercial
complexes, townships, high-rise buildings and many more
Other significant industries include engineering,
ancillaries, textile, pharmaceuticals, dairy, and food processing.
Defence agencies, such as the air force, army and navy, as well as the coast guard
PRODUCTS OF KIRLOSKAR OIL ENGINES ( KAGAL )
in the manufacture of both air-cooled and liquid-cooled diesel engines and
generating sets across a wide range of power output from 5 kVA to 625 kVA and 1800 kVA
to 6300 kVA. We also offer engines operating on alternative fuels such as bio-diesel, natural
gas, biogas and straight vegetable oil (SVO). The “Kirloskar Green Genset” is the market
leader and most preferred brand among customers in the power generation and telecom
Our customised power solutions suits a wide range of applications including both standby
and prime power requirements. Our generating sets are available in both open and sound
proof, environmentally friendly canopies.
Service industries such as telecom, IT/ITES, BPO, shopping malls, hotels, hospitals, and
banks; educational and financial institutions.
Infrastructure projects such as airports, roads, bridges, residential and commercial
rise buildings and many more
Other significant industries include engineering, manufacturing, FMCG, automobile and auto
ancillaries, textile, pharmaceuticals, dairy, and food processing.
Defence agencies, such as the air force, army and navy, as well as the coast guard
cooled diesel engines and
generating sets across a wide range of power output from 5 kVA to 625 kVA and 1800 kVA
diesel, natural
gas, biogas and straight vegetable oil (SVO). The “Kirloskar Green Genset” is the market
leader and most preferred brand among customers in the power generation and telecom
s including both standby
and prime power requirements. Our generating sets are available in both open and sound
, hospitals, and
Infrastructure projects such as airports, roads, bridges, residential and commercial
manufacturing, FMCG, automobile and auto
Defence agencies, such as the air force, army and navy, as well as the coast guard
OFF HIGHWAYS:
The Off Highway business group's activities are molded according to the motive power
needs of customers who require products from 20 hp to 800 hp in the Off Highway space
globally. We manufacture a variety of quality diesel engines powering more than 85 Off
Highway applications across seven sectors.
KOEL engines are the preferred choice when it comes to powering earth moving,
construction, mining, fluid handling, material handling equipments and marine applications.
AGRI ENGINES:
In the agriculture market, we fulfil the motive power needs of customers; essentially
farmers, who require products in 3 hp to 130 hp in the global agri space. We manufacture a
variety of quality diesel pumpsets and agri engines powering more than 25 applications
across five sectors.
Our pumpsets have been greening the soils of India, Egypt, Africa, and Latin and Central
America. We are the most preferred brand amongst farmers because of our reliable
performance and fuel efficiency.
DEPARTMENTS IN KOEL:
1. HUMAN RESOURCE DEPT. :
This dept. consist of security , training , human resource management and safety.
2. ATPP:
In ATPP dept. Assembly, testing, painting, packing is done. It consist of three dept.
namely
1. Genset
2. Medium engine
3. Small engine.
3. QUALITY CONTROL:
Here following factors control the quality.
1. RQI(Receipt quality insurance)
2. Process Quality.
3. Mr. Customer.
4. SCM(Supply Chain Management):
In SCM following activities are done:
1. Development of component (New/ Existing/ Modified Component)
2. Supplier finalization.
3. Price negotiation.
4 .Supplier part sample (Approved from CRE)
5. Part Delivery.
6. Logistics.
5. STORE:
1. In this dept. storage and planning of material is done.
2. Main work of this dept. is to keep the part in proper location in proper manner.
3. There are various equipments are used for transportation of material.
6. PPC:
1. PPC dept. done co-ordination with all top and bottom management.
2. Main work of PPC dept. is Planning, Production and control.
3. Material availability is checked according to BOM.
7. MACHINE SHOP:
In this dept. machining of critical components is done. 5C components are critical
components.5C components are as follows
1. Connecting Rod.
2. Crank shaft.
3. Cam shaft.
4. Cylinder head.
5. Crankcase.
8. UTILITY
9. MAINTAINANCE AND TOOL ROOM
10. SAFETY
SUPPLY CHAIN MANAGEMENT DEPARTMENT:
On my first day of internship Mr. Digvijay Ingale explained me about supply chain
department of Kirloskar. Department, structure, Buffer penetration report and overall
working
Kirloskar Supply chain management works in following way:
Supply chain Management:
Company’s SCM activities are operated from two places and it is consist of two main parts
1. Sourcing and Vendor development
2. Procurement
1. SOURCING:
� The first step in sourcing is to check the design for manufacturing. This department
takes designs from manufacturer and checks it for feasibility and costs.
� The next step is supplier or vendor selection. According to the requirement of the
design of products the material required are determined and the supplies for these
materials are selected. This is decided by the Supplier Quality Inspection (SQI)
department. It studies the design and decides the supplier on the basis of costs,
quality and accuracy required for the particular design of product.
� The third step is to pilot the design for regular production. The design is forwarded
to PPC department for planning the assembly of product according to the demand
and estimated time required for production.
After sourcing and vendor development the next job of this department is procurement
of the product.
2. PROCUREMENT:
� The first step in procurement is receiving the assembly plan from PPC (Planning
production and control) department. PPC department plans the assembly of the
product according to the design requirement and the cost reduction and forward
production plan to purchase department.
� The second step is to run the MRP (Material Resource Planning).
According the assembly plan received from PPC, the requirement of raw material is
decided. Also some specific parts that cannot be manufactured in the plant are
identified and suppliers are shortlisted according to quality requirement of the
product.
� The R&D (Research and development) department of the company is not much
stressed. But the critical tests for specific parts are carried out by this department.
� The third step is to obtain and analyze the output of MRP.
� According to the output of MRP, the requirement of material and the schedules of
the production are generated by this department. This is done by considering many
factors such as product takt-time, time for completion of assembly for one sample,
demand in market, availability of materials etc.
This department is also responsible for the communication of quality problem to the
suppliers. If there is any problem with the material casted or the precision of finished
product bought, this department communicates the problems to the suppliers the necessary
measures are taken by suppliers to improve the quality.
STORES:
It is one of the important links in supply chain management. The basic function of
this department is handling the material from the time is received up to it is sold.
The working of this department is broadly classified into five major functions:
1. RECEIPT: In this function a symmetric and standard approach is used to check and record
all the instructions. This includes making of GRR (Good receiving receipt), checking invoice at
the gate and also producing documents like OFB (Original for buyer), DFT (Duplicate for
transfer). Sometimes acknowledgement copy and extra copy is required for different
purpose like cashing and excise duty etc.
2. UNLOADING: During invoice verification, every vehicle is given a tracker which tracks the
position of the vehicle throughout the plant. This helps in determining the time taken for
unloading. There are three gates where material is unloaded.
3. STORAGE: After material is unloaded it is taken to different places through trolleys,
Forklifts, caskets, bins etc. Different storage methods are used to store different materials.
For e.g. low value and low volumes items are stored according to ‘Two Bin System’. Each bin
contains the material for 3 days. When a bin pets emptied it is taken for replenishment.
Meanwhile the other bin is used for production.
4. ACCOUNTABILITY: After the storage, the materials are issued for different lines according
to the plan issued by PPC. Accountability section verifies the product physically and also
checks for daily consumption of the materials.
5. DISPATCH: The main aim of this process is to inspect or check the final product. Scrap
disposal is also managed by this process.
Overall flowchart of this department is:
Fig: Store department flowchart
The department also maintains a buffer stock for each line. The various factors influencing
this process are
1. Lead time
2. Lack time
3. Total replenishment time
4. Production volume per line
RECEIPT UNLOADING INSPECTION
STORAGE OR LINE
SET BACK TO SUPPLIER
REJECTION
PROBLEM STATEMENT:
To study and ensure the availability of material handling equipments in engine plant one.
OBJECTIVES:
Keep record of material handling system in engine plant one that will help in setting up new
material handling system in engine plant two.
To reduce the number of handlings as well as the overall cost of material handling
equipment and reducing the distances through which the materials are handled.
Improved working conditions and greater safety in movement of materials
Contribute to better quality by avoiding damage to products by inefficient handling.
LITERATURE REVIEW:
Efficient material handling is important to manufacturing operations. Materials sent
by vendors must be unloaded, moved through inspections and production
operations to stores and finally to the shipping department
Material handling principles:
Eliminate handling
If not, make handling distance as short as possible
Keep moving
If not, reduce the time spent at terminal points of a route as short as possible
Use simple patterns of material flow
The simplest path is a straight line, if not, avoid back tracking, crossovers
Carry pay loads both ways
If not, minimize time spent on transport empty by changing speed in return route
Carry full loads
If not, decrease carrying capacity by lowering the speed
Use gravity
If not use, use a cheaper power source.
Equipment selection principle:
� Why? What? Where? When? How? Who?
� If we answer these questions about each move, the solution will become
evident.
The maintenance principle:
� Plan for preventive maintenance and scheduled repairs of all handling
equipment.
� Pallets and storage facilities need repair too.
The dead weight principle
� Try to reduce the ratio of equipment weight to product weight. Don’t buy
equipment that is bigger than necessary.
� Reduce tare weight and save money.
The capacity principle
� Use handling equipment to help achieve desired production capacity that is
material handling equipment can help to maximize production equipment
utilization.
These movements do not add value to the product but they do add value to the
cost
• Material handling analysis is a subset of plant layout. Method study, plant
layout and material handling are all part of the design of a production facility
• Material handling system and plant layout enhance effectiveness of each
other.
• Efficient operation of appropriate material handling methods reduces costs
and enables maximum capabilities to be derived from a given production
facility.
RESEARCH METHODOLOGY:
For data collection I had to visit all the areas of the plant where material handling system is
being used. My Project guide gave me list of parameters to be recorded about various
material handling equipments.
To understand the material handling system I had visited following places in the plant:
Store
Machine shop line
HA and R1040 assembly line
Small engine store
Varsha engine store
Loading and Unloading area
For every material handling equipment, I have gathered following information:
Asset Number:
Department:
Capacity:
Operator:
Work and its route:
For collecting this information I have visited all above mentioned areas in the plant,
collected all the necessary data by interviewing operator, store manager and every
employee who is related to material handling system.
MATERIAL HANDLING EQUIPMENTS IN ENGINE PLANT 1:
Offline material handling equipment
Online material handling equipment
OFFLINE MATERIAL HANDLING EQUIPMENTS:
These equipments are used for unloading and dispatch purpose, for keeping material at its
right position in stores and for providing raw casting to the machine shop line and assembly
line.
List of offline material handling equipments:
Pallet trucks (Mainy)
Stacker (Mainy)
Reach truck (Toyota)
Forklift (Toyota)
Tow Truck (Toyota)
ONLINE MATERIAL HANDLING EQUIPMENTS:
These equipments are used to provide raw material to the assembly line. For HA assembly
line and R1040 assembly line they provide raw material other that 5C component. And for
Varsha and E-series assembly line they provide every component including 5C component.
In following departments they use kit trolleys:
HA assembly line
R1040 assembly line
Varsha assembly line
E-series assembly line
OFFLINE MATERIAL HANDLING EQUIPMENTS:
PALLET TRUCKS (Company : Mainy)
CAPACITY: 2500kg
For use in damp and corrosive environments. Ideal for chemical, paper, leather, food
processing industries and cold storage.
Engineering Excellence
• Enhanced productivity: Manual high lift offers efficiency and versatility
• Higher Safety: Automatic activation of self adjusting stabilizers at loads higher than
400mm, for greater stability
• Easy loading: Loads can be easily placed at required ergonomic work height
• Responsive Hydraulic System
The hydraulic pump easy to operate and has an in-built automatic neutral position
HA AND R1040 ASSEMBLY STORE:
Capacity: 1500 kg
Work and its route: To place material from under inspection area to its respective position.
Position of material is assigned by the store. And tag attached to the material under
inspection area guides operator to place that particular material.
TAG :
5C STORE:
Capacity: 1500 kg
Work and its route:
Place 5C material in its position. (fixed Crane in 5C store helps to place 5C material)
Take gears to the washing area.
5C CONSUMABLE STORE:
Work and its route:
It provides oil and paints to the following departments:
- R1040 assembly line
- Varsha line
- E-series
- Cylinder head line
They get this oil and paint from oil store area.
Date: Shift:
Supplier:
GRR No/ Sticker No.:
Bin No.
Quantity:
Position:
REJECTION AREA:
Work and its route:
Brings rejected material from following areas
- Machine shop line
- Kit trolly store
- SE and varsha assembly line
- Packing
Take rejected material to the loading area
PACKING AREA (Qty: 2)
Work and its route:
Packing purpose, carries material from racks to the packing area.
Provides material on line (HA and R1040 assembly line)
SE STORE:
Work and its route:
Place material to its right position.
Bring material from unloading area to SE store.
ENGINE PACKING:
Work and its route:
Help in engine packing and dispatch.
PALLET TRUCKS IN EP1
STACKER (COMPANY: MAINY)
Capacity 1500KG
Lift height: 6000mm
• Versatile stacker, useful in almost all industrial work environment
• Ergonomically designed for enhanced productivity and safety
• Ideal for operation in narrow aisles and busy gangways due to compact design and
small turning radius.
• Ability to undergo highly intensive stacking and transportation in minimum time.