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A STUDY OF PROCESS DESIGN AT Submitted in partial fulfillment of the requirements For the award of the degree of MASTER OF BUSINESS ADMINISTRATION OF KERALA UNIVERSITY Submitted by Antony Joseph(Roll no:MGT 0707207) Rajeesh. M. N(Roll no:MGT 0707233) Rino Varghese(MGT 0707238) Under the guidance of MR.AMBEESH MON
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A STUDY OF PROCESS DESIGN

AT

Submitted in partial fulfillment of the requirements

For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

OF KERALA UNIVERSITY

Submitted by

Antony Joseph(Roll no:MGT 0707207)

Rajeesh. M. N(Roll no:MGT 0707233)

Rino Varghese(MGT 0707238)

Under the guidance of

MR.AMBEESH MON

INSTITUTE OF MANAGEMENT IN KERALA

UNIVERSITY BUILDING, VADAKKAL (P.O),

ALAPPUZHA

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DECLARATION

We declare that the mini project entitled “A Study of Process Design at Apollo Tyres” submitted

by us for the award of the degree of Master of Business Administration of the University of Kerala is

our own work. The report has not been submitted for the award of any other degree of this University or

any other University.

Place: Alappuzha Antony Joseph

Rajeesh.M.N

Date: 18-11-2007 Rino Varghese

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CERTIFICATE

This is to certify that the mini project report entitled “A Study of Process Design at Apollo

Tyres” submitted here is a bonafide record of the work done by Mr. Antony Joseph,

Mr. Rajeesh.M.N, and Ms. Rino Varghese under my guidance in partial fulfillment of the requirement for

the award of Degree in Master of business Administration of the University of Kerala and this work

has not been submitted by them for the award of any other degree, diploma or title of recognition earlier.

Director: Faculty Guide:

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Acknowledgment

Opportunity, guidance, encouragement and motivation are the key factor that leads to accomplishment of a Project.

We express our gratitude to Prof. M.Sukumara Menon (coordinator, IMK, Alappuzha) for permitting us to undergo the organizational study and providing us all the formal facilities to carry out the study.

We thank Mr. Ambeesh Mon (Faculty, IMK, Alappuzha) for motivating and inspiring us to complete the organizational study successfully.

We are also highly thankful to Mr.N.Sreekumar, kerala head, Apollo Tyres Ltd for allowing us to do this organizational study at Apollo Tyres Ltd, Thrissur. He gave valuable advice and cooperation in accomplishment of our study.

We are thankful to Mr.Venugopal, Production Manager, Apollo Tyres Ltd. for giving us all details about the production work in Apollo tyres

We are grateful to staff and Trainees of Apollo Tyres Ltd for their strong support and motivation.

Last, but not least we thank our parents and God Almighty for standing by us and helping us in all our moves.

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CONTENTS

CHAPTER

1

2

3

4

5

6

TITLE

Introduction Objectives Methodology Limitation Scope, Chapterisation

Literature review

Industry Profile

Company Profile

Data analysis & Interpretation Findings Conclusion Recommendation Bibliography

PAGE

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.CHAPTERISATION

Chapter I deals with the introduction objectives, methodology, limitations and scope of our study.

Chapter II deals with the literature review, that is, theory part of our report.

Chapter III includes the industry profile, that is, profile on the tyre industry in India.

Chapter IV says about the company profile which is a brief history of Apollo tyres

Chapter V entitled data analysis and interpretation shows our practical work report.

Chapter VI includes our findings, conclusion and recommendations

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CHAPTER-1

INTRODUCTION

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Introduction

The study of process design was conducted at Apollo tyre Perambra the leading tire

manufactures in India. Apollo tire was established in 1977 and now become the number one tire

manufactures in India the factory was spread in an area of 72 acres. Our aim was to study the

process design at Apollo tires and we could do it very successfully.

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OBJECTIVES

1 To practical exposure to the organization

2 To understand the characteristic of the product or services being supplied or offered to customers

3 To know the expected volume of out put

4 To understand the kinds of equipment/machinery available

5 To understand whether the process is capital intensive or labour intensive.

6 To know the materials used

7 To classify our doubt regarding process design

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METHODOLOGY

Primary data :

> From interactions with managers

> From interactions with employees

Secondary data:

From company’s official website

LIMITATIONS

Time was limited. Employees’ hesitate to tell the ratio of contents in the rubber mixture for tyre

manufacturing

SCOPE

A good opportunity to go to search a large company, not only process design, to understand different

process in an organization. It will make easy further projects.

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CHAPTER -2

LITERATURE REVIEW

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LITERATURE REVIEW

PROCESS DESIGN

The process design necessary to manufacture new product. Process design means the complete delineation

and description of specific steps in production process and linkage among steps that will enable the

production system to produce products of as desire quality, in required quality, at the time; customer want

them and at the budgeted lost

It is concerned with over all sequence of operation required to achieve the product specification.

The sequence of operation in manufacturing is product is determined by:

-the nature of product

-the material used

-the quantities being produced

It specification the type of workstation that are to be used, the machines and equipment necessary and

quantities inn which each is required

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TYPE OF PROCESS DESIGN

PRDUCT FOCUS PATTERN SYSTEM

Here production department are organized according to the type of product or service being produced: all

production operations required for a product/service are grouped under a single department. It is also

known as line flow production or continuous production

PROCESS FOCUSED PATTERN SYSTEM

Here the production operations are grouped according to the type of process. It is also known as

intermittent production systems/job shops/batch production systems.

GROUP TECHNOLOGY OR CELLULAR SYSTEMS

It is used to develop hybrid between product focused and process focused production system.

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CHAPTER-3

INDUSTRY PROFILE

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INDUSTRY PROFILE

The Indian Tyre industry dates back to1930 when multinationals like Fire Stone, Good Year and Dunlop

entered in the market. MRF, Premier, CEAT at various locations in the country carried out the domestic

production of the tyre.

The tyre industry in India are classified under

Three heads:-

1. First Generation companies : - Dunlop and Fire Stone

(New Bombay tyres international Ltd)

2. Second Generation companies : - MRF, CEAT, Good year, Premier

3. Third Generation companies : - J K Tyres, Vibrant, Apollo and Modi rubber

The first Indian Company Dunlop Rubber Company was incorporated in 1926. Today the tyre industry is

growing rapidly and today its turn over is 1, 00,000 million and earning an income of Rs.1, 000 crore per

annum for export.

Market for tyre can be broadly classified or segmented into three categories:-

: - Original Equipment Manufactures. (O E M).

: - Replacement Market.

: - Export Market.

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MARKET SHARE

Indian Tyre Industry comprises 12 major Companies, 13minor companies and 34 minor plants

manufacturing low technology Products such as small tubes and flaps. There are top players in this field

having 81% Of Market Share.

SL NO: Company Name % of Share

1. Apollo 23.2

2. MRF 21.1

3. JK 16.8

4. CEAT 14.8

5. Birla 8.2

6. Good Year 6.9

7. Others 9.00

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CHAPTER-4

COMPANY PROFILE

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COMPANY PROFILE

Apollo Tyres Ltd. is one of the leading manufactures of automotive tyres and tubes in the

Country. Apollo Tyres Ltd. is the part of the Raunaq group. The other groups of concerns include:

1. Bharat Steels and Tubes Ltd.

2. Universal steel and alloys Ltd

3. BST Engineering Services

4. Raunaq international Ltd.

5. Universal Garments Ltd

The company was incorporated in the year of 1972 and Commercial production started in the year 1977.

The company was started with technical collaboration with General Tyres International Corporation USA

that was owned by M/s continental Germany and now joined with Michelin France. Apollo had set up its

very first manufacturing unit at Perembra in Kerala with a production capacity of 54tons/day in the year

1977. The Limda plant was instituted in1991. Currently the plant has a total capacity of 240 tons. The

existing plant is being modernized with an investment of Rs.110 crore. In 1995 Apollo also took over

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factory of Premiere Tyres Ltd. In Kalamassery, Kerala. In addition, Apollo also builds a plant at

Ranjangaon at Pune in 1997 to manufacture tyre tubes. The plant has a production capacity of 34tons.

Apollo International Ltd., a wholly owned subsidiary of the company Apollo Tyres Ltd. was the first tyre

company in India to receive ISO 9000 certificate and now having QS 9000. Marketing and sales

management, planning, raw materials purchases including payment, production planning and dispatches re

centralized at New Delhi and the registered office at Cochin. The company has got a large distribution

network in India. There are many factors that make Apollo different from others. The main factors that

make the difference are superior product quality, strong brand equity, a committed marketing team which

ensures a quick response to the market needs, high consumer loyalty and product segmentation in truck

tyres. Some of the famous brands like Cargo Miler, Amar, XT-7, Haulug, Load Star Super etc in truck tyre

segment, Farm King and Krishak in tractor segment and Milestar, XT-7, XT-9 etc in the passenger

segment all belong to the Apollo’s stable.

Today Apollo Tyres limited are the fastest growing profitable tyre company in India. The company

manufactures and sells wide range of tyres, tubes and flaps (both bias and radials). Apollo Tyres Ltd. is

currently the number one truck and passenger tyre manufacturer in India. 5YHK is the ultimate goal of

Apollo Tyres Ltd. The company aims to achieve a gross profit of Rs 500 Crores and a turn over of Rs

5000 Crores by the year 2005.

Organizational Chart of Apollo Tyres

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Key Milestones of the company an overview

1972 – The company's license was obtained by Mr. Mathew T Marattukalam, Jacob Thomas and his

associates

1974 – The company was taken over by Dr. Raunaq Singh and his associates

1975 – April 13, Perambra Plant Foundation stone was laid down.

1976 – Apollo Tyres Ltd. was registered.

1977 – Plant commissioned in Kerala with 49 TPD capacities.

Board of Directors

Manufacturing Marketing

A T LPerambra

A T LKalamassery

A T L Pune

A T LBaroda

Chairman

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1982 – Manufacturing of Passenger Car Radial Tyres in Kerala.

1991 – The second plant commissioned in Baroda.

1995 – Acquired Premier Tyres Ltd. in Kerala.

2000 – Exclusive Radial capacity established at Baroda.

2003 – Radial Capacity expanded to 6600 tyres per day.

2003 – November 17, Joint Venture with Michelin

2004 – Launch of Apollo Acelere- ‘H’ Speed Rated Car Radials.

2005 – April 13, Perambra Plant completes 30 Years.

2006 – January 30, Dunlop South Africa is acquired

Bias Tyres Radial Tyres

Truck & Bus Tyres

(Apollo) Passenger Car

Truck & Bus Tyres

(Kaizen) Van

Off the road Tyre (Apollo) 4 X 4

Light Truck Tyres (Apollo) Light Truck

Jeep Tyres (Apollo)

Passenger Car Tyres

(Apollo)

Farm Tyres (Apollo)

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Certifications

QS - 9000: 1998, 2004 certification for Quality Management Systems

Registered with DGS&D and Defense (CQAV)

Registered with DOT (Department of Transportation, USA)

ECE Certification

In-Metro (Brazil) Certification

SASO (Saudi Arabia) Certifications

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PERAMBRA UNIT

The Peramba unit is one of the two units that Apollo has In Kerala. The company had raised the unit’s

production capacity to 240 tons/day last year with an investment of Rs. 110crore. The unit

has got a capacity of producing around 3000 tyres per day. The main focus is on trunk, Passenger vehicle

and tractor tyres. Mr. N Sreekumar heads the unit. The Perambra unit of Apollo Tyres employs 2013

employees including contract workers.

VISION

The vision of Apollo Tyre is to become a leader in the Indian Tyre industry and a significant global

player, providing customer delight and enhancing share holders value.

GOAL

The goal of the company in 2006 is to achieve a Gross Profit of Rs.500 crores and a turn over of Rs.5000

crores at 1999 prices.

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Objectives

1. Strong brand equity.

2. High volume, high market share, cost effectiveness in all segments.

3. High quality, technologically superior product.

4. Competitive advantages.

5. Consist product through harmonious industry relation.

6. Quick responds for markets needs.

7. Become market or business focus through forward-looking agents

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CHAPTER-5

DATA ANALYSIS AND INTERPRETATIONS

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TYRE MANUFACTURING PROCESS

Pneumatic tyre is a high performance composite product. The raw materials used for its manufacture can

be divided into three groups.

· Rubber and Rubber additives

· Fabric reinforcements (Tyre cords.)

· Wire Reinforcements (Bead Wire).

The process of Tyre manufacturing is the art of processing the above materials and assembling the various

into the final product. The process of tyre manufacturing is complicated by the numerous raw materials,

equipment and the processes performed. The processes involved in the manufacture of the Bias Truck

Tyre are as follows:

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1. Compounding - Ban bury Mixer

The principle task of compounding is concerned with securing an acceptable balance between the

demands arising from the three considerations namely, final vulcanization properties, price and

processability. All the raw materials like rubber, carbon black, chemicals and aromatic oils etc. are mixed

in the ban bury mixer. The mixed batch is then sent to a mill for further mixing to form the rubber

compound and then into sheets. These sheets then pass through conveyors and are staked on skids.

According to the tyre requirements the rubber compound mixing is varied. There are four ban bury mixer

of which is two are for master batch, i.e. initial mixing and two for final batch.

2. Fabric Dipping Unit

Fabric dipping is the most critical stage in preparing cord or fabric for use in tyre. This consists of

applying the adhesive under controlled condition of time, temperature and tension. By this process good

fabric adhesion to the rubber is obtained and physical properties like strength, durability, growth and

elongation are optimized to meet tyre requirements

The nylon fabric is passed through a rubber solution of latex mixed with resorcinol formaldehyde is sent

through special ovens to increase the tenacity and to provide dimensional stability. The conditions of time,

temperature and tension are used, thus the name 3T unit.

3. Calendaring – 4 and 3 Roll calendar

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In simple terms a calendar can be said as sheeting machine. A calendar consists of a number of rolls held

in frame work. The fabric passes through a calendaring unit after dipping. In this process rubber

compound in coated on both the sides of the fabric. For this 3-roll and 4-roll calendars are used. Apollo

Tyres at Perambra employs 4-roll calendaring. In the 3-roll calendar the compound is coated one side at a

time where as in 4-roll calendaring the compound is coated at a time where as in 4-roll calendaring the

compound is coated on both the sides simultaneously.

4. Extruding

Extrusion is a technique of performing unvulcanised rubber compounds by forcing material through fixed

apertures or dies, to obtain definite size and shape. Extruders are machines which force rubber through a

die under controlled conditions of temperature and pressure, rate and homogeneity to give a continuous

length of material having the shape of fitted die. Extrusion is the process by which rubber gives compound

a definite continuous shape in order to produce parts like the tread and the sidewall.

a. Single extruder

The rubber compound after being broken down and warmed with the help of mills is fed into extruder.

With the help of the screw and die placed inside produces the tread or sidewalls of specified dimensions

contour and weight. These strips are then cooled by spraying water. It is then cut into specified length with

a skiver, a rotary cutting knife, and are then booked in metal trays or wrapped in liners.

b. Dual extruder

In the dual extruder the two screws of the extruder are fed with compounds of different characteristics,

broken down and warmed in two sets of mills, simultaneously. The two compounds after extrusion are

mixed in a common die and emerge as per the predetermined shape. The advantage of the dual extruder is

that the tread made of two rubber compound completely of different compositions are extruded with the

top layer having harder characteristics and bottom layer compound having softer and flexible properties.

5 Bead Preparations

Bead Preparation is the process of making beads, which gives the strength to the tyres.

a. Bead winding

In this process the bead- winding machine is used to make beads for various types of tyres .The bead

consists of a number of strands of copper-coated steel wire, which is coated with a layer of rubber

compound and then wound in specified diameter. The rubber compound is coated with the help of an

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extruder through which the rubber compound emerges. It is then wound on a chuck to the diameter

specified

b. Bead fillering

Here a triangular shaped continuous rubber profile, called bead filler, is extruded using cold feed extruder

and applied to the bead bundle using a fillering machine.

c. Bead flipping

The flipper fabric prepared at the bias cutter is applied around the fillered bead bundles by employing a

bead flipping machine.

6. Bias cutters

The calendared fabric is then cut at various angles and width, based on tyre specification, to produce plies.

The bias cutters employed at Apollo tyres are of two types based on the position in which the plies are cut,

vertical and horizontal. For heavy-duty tyres the fabric having cut with an additional layer of compound

called squeegee.

7. Tyre building machine.

This where the basic assembly of various parts like beads, plies, treads sidewalls etc takes place to form

the uncured tyre. The tyre thus formed is called green tyre. It is called green because it is non- vulcanized.

The tyre building machine basically consists of a shaft to which a collapsible drum is placed on which the

assembling takes place .The shaft also has stitching wheels on both sides of the drum for assembling the

beads. The unit is capable of rotating at varying speed in two directions. The fabric layers applied to the

drums along with the bead unit, which are compressed together with the help of stitcher wheels. After

building carcass on the drums the final stage the green tread, sidewall chaffers etc are applied. The

assembly is then removed by collapsing the drum.

8. Tyre curing

Lubricants are applied on the inner and outer surfaces for better molding. The bagomatic curing press

consists of a thin synthetic cured bladder positioned in the center bottom half of the mould over which the

green tyre is placed. The top half if then fixed to the other half. As the press starts to close, steam pressure

is applied to the bladder, which gives the tyre the free shape. When the press is closed completely high

internal pressure and temperature is given. The curing media like steam and hot water are passed through

the bladder while the outer surface of the mould is heated by steam. The internal pressure of the bladder is

critical for obtaining good molding effect. The temperature applied is also critical for proper curing, less

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temperature will result in under curing or excess temperature will result in deterioration of the rubber or

fabric. After the curing the tyre is removed from the press the tyre is subjected to post curing inflation.

This process consists of mounting tyre on specifically designed rim and pressure is applied while still hot

for a period to maintain proper shape.

9. Tyre inspection

All the cured tyres are then physically inspected for visual defects and excess rubber flashes removed.

After the tyre inspection and classification the tyre is send to the warehouse.

10. Testing

Quality of all raw materials received are tested in the laboratory consists of three different sections.

a. Fabric laboratory

The laboratory tests all the fabric and steel wires received at all stages of the process.

b. Chemical Laboratory

This Laboratory carries tests for all polymers, filler and other chemicals used in the tyre building

c. Physical Laboratory

All the rubber compounds in the process are tested here at various stages to test the various dimensional

and other characteristics.

11.Tyre testing.

Samples of cured tyres are tested indoors in a tested wheel called pulley wheel. Here the wheel simulates

the running conditions of tyre. This primarily used to test the carcass strength, and heat generation.

Plunger test is employed on samples to test the strength of the tyre. Tyre is also fitted on different vehicles

to study the effect of different types of roads, loads and climatic conditions.

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CHAPTER-6

CONCLUSION

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FINDINGS

1. Lack of dedicated workers

2. Congested working situation

3. There exist increased cost of raw material

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CONCLUSION

Apollo Tyres Ltd.is an emerged player in the industry which is now its booming stages their

producing high quality tyres with dedicated service to the society achieving employee’s satisfaction and

eminent position in the similar industry horizon. The company is on the mode of redefining its process and

shaping its strategies with professional insight.

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\]

SUGGESTIONS

1. Implement suitable motivation strategies

2. Increase working place

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BIBILOGRAPHY

K.Aswathappa and K .Shridara Bhat,

Production and Operation Management, Himalaya publishing house, 2007.

S.N.Chary, Production and Operation Management,

Tata Mc Graw – Hill Publishing Company Ltd, 2005.

WWW.Apollotyres .com