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ACKNOWLEDGEMENT
I thank the Almighty for giving such excellent facilities and support through VELTECH
Dr. RR & Dr. SR Technical University and its Chief Administrator, our beloved Founder &
Chancellor Col. Prof Dr. R. Rangarajan B.E(Elec)., B.E(Mech)., M.S(Auto)., D.Sc., Pro-
Chancellor Dr.Sakunthala Rangarajan M.B.B.S., Chairperson and Management Trustee
Ms.Mahalakshmi Kishore, B.E, MBA, and Director Mr.K.V.D. Kishore Kumar, B.E, MBA
I thank our Vice Chancellor Dr. R.P Bajpai Ph.D (IIT)., DSc (Hokkaido University,
Japan), FIETE, Registrar Dr. E. Kannan Ph.D and our Vice Principal Mr. E.Kamalanaban
M.E., (Ph.D) as they have always served as an inspiration for me to perform. I would like to
express my faithful thanks to our Dean, School of Management Dr.P.S. Valarmathy M.Com,
M.Phil Ph.D and our respected Project Coordinator Mr.JUDIN MICHEAL BSC, MBA for
having motivated and extended full support for effective completion of the project.
A Special thanks to Mr.J.PANNEERSELVAM senior executive-sub contract cell for
their extremely valuable guidance and support for the completion of this project work
successfully.
I also extend my sincere thanks to my Parents, Friends and Supporting Staffs of the
MBA Department and Placement Cell for the help they extended to us for completion of this
project.
TABLE OF CONTENTSCHAPTERS PARTICULARS PAGE NO
ACKNOWLEDGEMENT 1
1
TABLE OF CONTENTS 2LIST OF TABLES 3LIST OF CHARTS 4ABSTRACT 5
I 1.1INTRODUCTION TO THE STUDY 61.2 INDUSTRY PROFILE 71.3 COMPANY PROFILE 81.4 PRODUCT PROFILE 131.5 STATEMENT OF THE PROBLEM 151.6 OBJECTIVES OF THE STUDY 161.7 SCOPE OF THE STUDY 171.8 LIMITATIONS OF THE STUDY 45
II 2. REVIEW OF LITERATURE 45III 3. DESCRIPTIVE RESEARCH 46IV 4. DATA ANALYSIS AND
INTERPRETATION47
V 5.1 SUMMARY OF FINDINGS 535.2 SUGGESTIONS AND RECOMMENDATIONS
54
5.3 CONCLUSION 54BIBLIOGRAPHY 55
LIST OF TABLES
2
TABLE NO
PARTICULARS PAGE NO
3
1 Monthly purchase of raw material (2011) 23
2 Monthly production (2011) 30
3 Quarterly moving average for raw material (2011) 47
4 Quarterly moving average for production (2011) 49
5 Quarterly weighted moving average for raw material (2011)
51
LIST OF CHARTS
CHART NO
PARTICULARS PAGE NO
4
1 Purchase of raw material from April-December (2011) 23
2 Purchase of raw material for the first quarter 24
3 Purchase of raw material for the second quarter 24
4 Purchase of raw material for the third quarter 25
5 Production from April-December (2011) 30
6 Production for the first quarter 31
7 Production for the second quarter 31
8 Production for the third quarter 32
9 Quarterly moving average for raw material 48
10 Quarterly moving average for production 50
11 Quarterly weighted moving average for raw material 53
ABSTRACT
Supply Chain Management is a network of facilities that produce raw materials, transform them
into intermediate goods and then final products, and deliver the products to customers through a
distribution system.
5
The management of the supply chain and the roles of various acts involved differ from industry
to industry and company to company. As a result Supply Chain Management (SCM) has become
a vital issue for manufacturers, professionals and researchers. It is felt that to manage the supply
chain effectively entire structure of supply chain must be understood properly.
This paper attempts to provide the reader a complete picture of supply chain management in
sundram fasteners (padi). It presents main activities of supply chain and the step-by-step
approach for understanding a complete picture of supply chain. It also explains the purchase
process as well as the production process of the company completely.
1.1 INTRODUCTION TO THE STUDY :-
A supply chain is a network of facilities and distribution options that performs the functions of
procurement of materials, transformation of these materials into intermediate and finished
products, and the distribution of these finished products to customers. Supply chains exist in both
service and manufacturing organizations, although the complexity of the chain may vary greatly
from industry to industry and firm to firm.
6
Below is an example of a very simple supply chain for a single product, where raw material is
procured from vendors, transformed into finished goods in a single step, and then transported to
distribution centers, and ultimately, customers. Realistic supply chains have multiple end
products with shared components, facilities and capacities. The flow of materials is not always
along an arborescent network, various modes of transportation may be considered, and the bill of
materials for the end items may be both deep and large.
Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations
along the supply chain operated independently. These organizations have their own objectives
and these are often conflicting Many manufacturing operations are designed to maximize
throughput and lower costs with little consideration for the impact on inventory levels and
distribution capabilities. Purchasing contracts are often negotiated with very littl information
beyond historical buying patterns.
The result of these factors is that there is not a single, integrated plan for the organization---there
were as many plans as businesses. Clearly, there is a need for a mechanism through which these
different functions can be integrated together. Supply chain management is a strategy through
which such an integration can be achieved.
Supply chain management is typically viewed to lie between fully vertically integrated firms,
where the entire material flow is owned by a single firm, and those where each channel member
operates independently.Therefore coordination between the various players in the chain is key in
its effective management. Cooper and Ellram [1993] compare supply chain management to a
well-balanced and well-practiced relay team.
1.2 INDUSTRY PROFILE :-
Sundaram fasteners limited ( padi )
TypePrivate
7
IndustryFasteners
Founded1962
Headquarters padi
Area servedWorldwide
ProductsHigh tensile fasteners
Revenue 436.155 ( USD in millions )
ParentTVS group
Website
Sundram fasteners limited,
padi .com
1.3 COMPANY PROFILE :-
1962
The Company was incorporated on 10th December, in Chennai as
a private limited company under the name Kasjax Engineering
Ancillaries Pvt. Ltd. The Company is a member of the `TVS' Group.
The main objective of the company is to manufacture high tensile fasteners, cold
8
formed / extruded parts for auto and non-auto applications and automotive powder metal parts.
1965
The name was changed to Sundram Fasteners (P) Ltd., on 13th July.
1978
280,000 bonus shares issued in proportion 2:5.
1981
6,53,333 bonus equity shares issued in prop. 2:3. 15,55,555 No. of equity shares offered through
prospectus (prem. Rs 4 per share) in Feb.
1982
Out of these, 71,125 shares reserved for employees, 31,250
shares reserved for directors, etc. and the balance 14,53,180 shares offered for public
subscription.
1982
The objects of the public issue of capital in 1982 were to offer atleast 49% of the equity capital
of the Company to the public.
1986
The Company issued 15% non-convertible redeemable debentures of Rs600 lakhs on private
placement basis to financial institutions and allotted them in April as follows:
(i) Rs 100 lakhs to ICICI, (ii)Rs200 lakhs to LIC, (iii) Rs 200 lakhs to UTI and
(iv) Rs 100 lakhs to GIC and four of its subsidiaries.
1988
19,13,332 bonus shares issued in prop. 3:5.
9
1989
The Company issued 10,00,000 - 14% secured redeemable
non-convertible debentures of Rs 100 each on private placement basis to LIC, UTI,ICICI, GIC
and its subsidiaries and Army Group Insurance Fund.
1992
The Company had set up an export oriented unit for manufacture of radiator caps, oil filler caps
and petrol filler caps for supplying them to General Motors, U.S.A. Pursuant to the order of the
BIFR, Odin Metal Powders Ltd. (ODIN)amalgamated with the Company. As per the Scheme of
Amalgamation,5,611 No. of equity shares of Rs 10 each of the Company were allotted to the
erstwhile shareholders of ODIN. Sundaram fasteners Investments Ltd., Sundaram Telematics
Ltd, Sundaram Numeric Ltd., Aplomb Investments Ltd. are subsidiaries of the company .
1993
A project for manufacture of socket head cap screws was set up at Pondicherry.
1994
The Company has made an entry into the area of power generation by installing a 2 MW Wind
Farm at Muppandal (T.N.).
1995
51,07,831 No. of equity shares of Rs 10 each allotted as fully paid bonus shares to the
shareholders in ratio of 1:1.
1997
1,000 No. of equity shares of Rs 10 each allotted subsequent to RBI approval.
SFL signed an agreement with the US auto giant General Motors (GM)to supply its entire
requirement of radiator caps. Sundram Fasteners has two subsidiaries too, Sundram Telematics
10
Ltd,A100 per cent export-oriented unit (EOU) for development of GSM software for use in
mobile communications, and Sundram Numeric Pvt. Ltd, alsoa100 per cent EOU for export of
software used in CNC machines. Sundram Fasteners has set up a warehouse in Tory (Michigan)
which being on-line with all GM plants, dispatches supplies the moment an order is placed.
Sundram Fasteners Ltd. (SFL) has bagged the automotive component manufacturer's (ACMA)
award for the year ended March, SFL is receiving the award for the second time.
1998
The company entered into a technical collaboration agreement with Dura Automotive Group,
USA for the manufacture of Gear shifters and parking brake assemblies for automobiles.
Goodwill earned by, Sundram Fasteners Ltd (SFL) by bagging the supplier of the year award for
the second consecutive year is all set to help other TVS group companies.
1999
Sundram Fasteners Ltd. (SFL) has won the `Supplier of the Year award from General Motors
Corporation of the US for the third successive year for its supply of radiator caps to the auto
major.General Motors India Ltd. (GMIL) is exploring the possibility of sourcing more
components for the `Astra' and the new `Corsa' models from TVS group company Sundram
Fasteners (SFL).
2000
The Company has won General Motors Best of the Best' suppliers of the year award for the
fourth consecutive year.The ACMA Export Trophy for '99-00 has been awarded to Sundram
Fasteners for excellence in export performance.The name of Sundram Numeric Ltd, a
subsidiary, has been changed to TVS Infotech Ltd with effect from 13th October.
2001
11
Crisil has reaffirmed the P1+ rating assigned to the Rs 85-croreshort-term debt issue of Sundram
Fasteners Ltd.. Sundram Fasteners Ltd., the Chennai-based automotive components
manufacturer, has won the General Motors Corporation's `Supplier of the year' award for the
fifth consecutive year for calender 2000.
2003
The Director of Sundram Fasteners Ltd, Shri. S.L Narayana passed away on Feb 15th.
SFL records 16% growth in the turnover in the first five months of the current financial year.
Approval to amalgamate the subsidiary company, TVS Autolec Limited with the Company.
The Equity shares of the company having a nominal face value of Rs10 per share be subdivided
into equity shares of having a nominal face value of Re 1 per share. The authorised share capital
of the company be increased from Rs 120 million to Rs 250 million. Cramlington Precision
Forge Ltd (CPFL), a 100% subsidiary of Sundram Fasteners Ltd (SFL), has acquired the
precision forgings business of Dana Spicer Europe Ltd (DSEL) on December 19, 2003. The
business is located at Cramlington, Northumberland, UK.
2004
The Scheme of Amalgamation proposed to be made between TVS Autolec Limited with
Sundaram Fasteners Limited. Sundram Fasteners - RBI Autoparts SDN BHD has become a
subsidiary of TVS Autolec Ltd. Sundram Fasteners Ltd (SFL), a TVS group company, opened its
first off shore facility in Haiyan county of China. Sundram Fasteners Ltd (SFL) gets
outsourcing quality achievement award for the year 2003, from Saturn Spring Hill
Manufacturing Company, a subsidiary of General Motors.
2007
The Company has issued Bonus Shares in the Ratio of 1:1.
2008
Sundram Fasteners Ltd has appointed Sri. M Raghupathy IAS (Retd.)as an additional director
(independent director) on the Board of Directors of the Company with effect from June 06, 2008.
12
2009
Krishnapuram unit won TPM club of India Award for best Kaizens.
1.4 PRODUCT PROFILE:- Sundram Fasteners Limited has a global manufacturing presence that spans India, China, United
Kingdom, Malaysia and Germany. Its product range includes high tensile fasteners, cold
extruded parts, powder metal parts, iron powder, radiator caps, gear shifters, hot forged parts,
precision forged differential gears, water pumps, oil pumps, fuel pumps, belt tensioners, rocker
arm assemblies, cam followers, bearing housings, hubs and shafts, tappets & other engine
13
components.
Sundram Fasteners is the first Indian company to get ISO 9000 certification. Today all divisions
of the company are ISO/TS 16949 and ISO 14001 certified. Sundram Fasteners Limited is also
the first Indian component manufacturing company to have won the prestigious TPM
Excellence and Consistency Award from the Japan Institute of Plant Maintenance.
A fastener is a hardware device that mechanically joins or affixes two or more objects together.
Fasteners can also be used to close a container such as a bag, a box, or an envelope; or they may
involve keeping together the sides of an opening of flexible material, attaching a lid to a
container, etc. There are also special-purpose closing devices, e.g. a bread clip. Fasteners used in
these manners are often temporary, in that they may be fastened and unfastened repeatedly.
Hot Forged Products include connecting rods, lug gears for motorcycles, CV joint parts, fan
hubs, bevel gears, fuel injection pump parts, etc . The Hot Forging unit is supported by state-of-
the-art presses, with press tonnages varying from 300T upto 1600T, each having inline induction
heating equipment. Besides this, facilities include Heat treatment furnaces to carry out
Normalizing, Hardening and Tempering, tool room equipment like Vertical Milling Centre,
Spark Erosion and Wire Cut CNC Machines.
14
Sundram Fasteners Limited’s Metal Forms Division is a technology leader in India,
manufacturing cold extruded and precision forged parts. Cold extrusion shapes steel into desired
geometries at room temperature which helps to increase the strength of components and saves
upto 80% on materials.
The Powder Metallurgy unit was set up in the year 1982 with technology from Sintermetallwerk
Krebsoege GmbH, Germany and is today one of the leading manufacturers of powder metallurgy
parts in India.
1.5 STATEMENT OF THE PROBLEM:-
No consistency in level of production in sundram fasteners ltd. ( padi) increase and decrease of
production level during April 2011 to December 2011. So this study is done for identifying the
increase or decrease level in production.
15
1.5 OBJECTIVES OF THE STUDY :-
PRIMARY OBJECTIVES :
To know the over all performance of purchase department in sundram fasteners.
SECONDARY OBJECTIVE :
16
To find moving weighted average purchase in sundram fasteners ltd.
To identify the problems emerging in the production department.
1.6 SCOPE OF THE STUDY :-
To improve the purchasing power as well as,
To improve the production power of the sundram fasteners.
17
NEED OF THE STUDY :-
It helps sundram fasteners to overcome the difficulties faced in their purchase as well as
in their production departments.
18
1.7 SUPPLY CHAIN MANAGEMENT
RAW MATERIAL PURCHASE
RAW MATERIAL PROCESS
19
WIRE DRAWING PROCESS
FORGING
DIRECT INDIRECT
1.POINTING 1.HEAT TREATMENT
( in some cases goes for sub- contract )
2.ROLLING 2. ROLLING
3. HEAT TREATMENT 3. SUB CONTRAC
(drilling, milling, copyturning)
20
4.FINISHING
( plating, phosphating, trivalent, lock tight )
5. FQA 4. VQA
PACKING
WAREHOUSING
DISPATCH
RAW MATERIAL PURCHASE :
The purchase of the raw material will depend on the marketing
strategy and on its past performance. The purchase of the raw material includes
placing the order, acceptance from the supplier and finally letter of credit ( guarantee
from the bank ).The supply chain of raw material include :-
STEEL MILLS
21
WAREHOUSE
TRANSPORT
FACTORY
monthly 7,000 – 8,000 tones of raw material has been purchased by the
Sundram Fasteners. Normally Sundram Fasteners prefer 3,000 tones of raw
material from domestic and 3,000 tones from overseas supplier. And it may
increase or decrease according to the requirement of the factory . The lead time
for the domestic purchase is 1 month and for the overseas purchase is 3 months,
respectively .
CSI( Central Supplying Interface ) is located in padi plant which plans
for raw material’s supply to the Indian plants as well as overseas plants .
The Indian plants are located at :-
Krishnapuram
pondicherry
Uttrakhand
Mitta mandagapattu
Mahindra world city
The Overseas plants are located at :-
China
Germany
22
United kingdom
Cold heading quality is the quality of raw material prefered by the Sundram
Fasteners .( padi ) Test certificate is the quality assurance given by the supplier
ensuring quality of the raw material. Sundram Fastener have eighteen suppliers to the
six steel mills globally. Six suppliers are situated in domestic region namely
Maharastra , West Bengal , Chattisghad , Jamshedpur , Bombay and Salem. Other
twelve suppliers from overseas are China , Japan , Korea , Spain , Germany , United
kingdom and etc.Once the raw material reaches port the dispatch information is
passed to the Central Supplying interface department through ASN ( Advanced
Shipping Note ) portal system .
MONTHLY PURCHASE OF RAW MATERIAL FOR THE YEAR 2011
MONTHLY PURCHASE OF RAW
MATERIAL
IN TERMS
OF TONES
APRIL 2633
MAY 2264
JUNE 2770
JULY 2390
AUGUST 1795
SEPTEMBER 2528
23
OCTOBER 2283
NOVEMBER 1196
DECEMBER 3070
CHART SHOWING MONTHLY PURCHASE OF RAW MATERIAL
april may june
julyau
gust
septem
ber
october
november
december
0
500
1000
1500
2000
2500
3000
3500
PURCHASE OF RAW MATERIAL FOR FIRST QUARTER
24
april may june0
500
1000
1500
2000
2500
3000
purchase
purchase
PURCHASE OF RAW MATERIAL FOR SECOND QUARTER
july august september0
500
1000
1500
2000
2500
3000
purchase
purchase
PURCHASE OF RAW MATERIAL FOR THIRD QUARTER
25
october november december0
500
1000
1500
2000
2500
3000
3500
purchase
purchase
RAW MATERIAL STORAGE :
Raw material is stored in a large area called raw material storage yard.
The raw material should be taken into production zone as required . Since the raw
material is kept in an open area , it gets directly exposed to the atmosphere . As the
raw material contains huge amount of carbon it easily combines with oxygen and
forms rust.
RAW MATERIAL PROCESS :
The process of taking the raw material from the yard to the wire
drawing process is called as raw material process .
WIRE DRAWING PROCESS :
26
Wire drawing is a process of converting the raw material into
an exact size or diameter as required by the customer. It involves a short process. In
padi HEXUTION plant the raw material is brought to the wire drawing process in
the form of coils for cold forging and to the HNF plant, it is brought in the form of
long bars for hot forging .
For example :-
If a client is in need of a product with 11.5 diameter, a 12
diameter of raw material is brought in wire drawing process and it is drawn out as
the preferred size .
Bull Block Copper Wire Drawing Machine
Wire drawing is a metalworking process that reduces the diameter of a wire by pulling it through
a die designed for that purpose. Usually performed at room temperature, wiredrawing is different
from extrusion in that the wire is pulled through the die, rather than pushed. While the most
commonly known application for drawn wire is the cabling used for electrical and
communication networks, there are countless other uses as well: paper clips, springs, tire spokes,
and musical wire (the wires used in violins, cellos, and other stringed instruments) are all made
using drawn wire.
27
Wire was originally made by hammering metal, such as gold and silver, into very thin sheets and
then cutting very thin slices from the sheets. These thin slices would again be hammered into
shape until they were fine enough to be used for jewelry or to be woven into clothing.
Archaeological evidence suggests that around 400 BC, metal workers were experimenting
with wire drawing, fashioning crude dies, and drawing wire through them by hand.
Until the middle of the 19th century, the process of wire drawing became more sophisticated, as
craftsmen developed different techniques, including the use of the steam engine to power the
actual drawing process. They learned to lubricate the wire being drawn, which decreased the
amount of energy necessary to draw wire and marginally improved the quality.
However, the quality of drawn wire was always limited by the quality of the metal from which it
was made. Metals of inconsistent purity and malleability would routinely break when drawn
into wire. Broken wire would need to be spliced, a time-consuming process that resulted in a loss
of quality, which was a critical problem for such applications as telegraph communication. The
poor quality of the wire drawn increased the time necessary for production and made wire very
costly.
It wasn't until the invention of the Bessemer process in the late 1850s, which produced
consistently workable metal, that wire drawing was able to produce wire of a consistently high
quality. Metal poured from the converters into molds called billets is cooled only slightly and
then the process of forming it into wire in a hot roll mill begins, taking advantage of the residual
heat from the Bessemer process. Large coils of thick wire, called wire rod, weighing from 150 to
300 pounds (68 to 136 kilograms), are made in this process.
Once the wire rod has been cleaned of surface impurities, the end is tapered enough that it will fit
through the die, which itself is tapered with the opening on one side wide enough to
accommodate the wire rod, narrowing up to 40 percent over its length. The tip of the
taperedwire rod is grasped firmly and drawn through, reducing its diameter. The narrow wire is
usually coiled around a core, although it may sometimes be passed through a smaller die to
28
continue the narrowing process. A thick wire can be reduced in diameter up to 40 percent in a
single pass; thinner wire can be reduced by 15 to 25 percent.
To produce the very fine wires used in telephone cables and stranded electrical cable, wire is
drawn through successively narrower dies. Once drawn, wire is sometimes subjected to
additional processing, depending on its intended use. For example, a process called annealing, or
heating the finished product to a certain temperature for a set period of time, is performed if
the wire must be flexible and supple. Thicker wire that will be cut into nails isn't annealed, but
will often be galvanized, or coated with zinc, to prevent rust. Wire used in fencing, such as
barbed wire, is usually both annealed and galvanized.
FORGING PROCESS :
In forging, an initially simple part a billet, for example is plastically deformed
between two tools (or dies) to obtain the desired final configuration. Thus, a simple
part geometry is transformed into a complex one, whereby the tools “store” the
desired geometry and impart pressure on the deforming material through the
tool/material interface.
Forging processes usually produce little or no scrap and generate the final part
geometry in a very short time, usually in one or a few strokes of a press or hammer.
As a result, forging offers potential savings in energy and material, especially in
medium and large production quantities, where tool costs can be easily amortized. In
addition, for a given weight, parts produced by forging exhibit better mechanical and
metallurgical properties and reliability than do those manufactured by castingor
machining.
Forging is an experience-oriented technology. Throughout the years, a great deal of know-
howand experience has been accumulated in this field, largely by trial-and-error methods.
Nevertheless, the forging industry has been capable of supplying products that are sophisticated
and manufactured to very rigid standards from newly developed, difficult-to-form alloys.
29
The physical phenomena describing a forging operation are difficult to express with quantitative
relationships. The metal flow, the friction at the tool/material interface, the heat generation and
transfer during plastic flow, and the relationships between microstructure/properties and process
conditions are difficult to predict and analyze.
Often in producing discrete parts, several forging operations (performing) are required to
transform the initial “simple” geometry into a “complex” geometry, without causing material
failure or degrading material properties. Consequently, the most significant objective of any
method of analysis is to assist the forging engineering the design of forging and/or performing
sequences.
30
PRODUCTION ( FORGING ) FOR THE YEAR 2011
CHART SHOWING MONTHLY PRODUCTION
april may june
julyau
gust
septem
ber
october
november
december
0
5000000
10000000
15000000
20000000
25000000
30000000
production in quantity
production in quantity
31
MONTHS IN TERMS OF
QUANTITY
APRIL 2,37,01,219
MAY 2,63,34,499
JUNE 2,29,80,921
JULY 1,90,39,778
AUGUST 2,57,42,809
SEPTEMBER 2,24,71,164
OCTOBER 1,98,51,454
NOVEMBER 2,18,60,122
DECEMBER 2,43,13,072
PRODUCTION FOR FIRST QUARTER 2011
april may june21000000
22000000
23000000
24000000
25000000
26000000
27000000
production in quantity
production in quantity
PRODUCTION FOR SECOND QUARTER 2011
july august september0
5000000
10000000
15000000
20000000
25000000
30000000
production in quantity
production in quantity
32
PRODUCTION FOR THIRD QUARTER 2011
october november december0
5000000
10000000
15000000
20000000
25000000
30000000
production in quantity
production in quantity
FORGING OPERATION AS A SYSTEM :
A forging system comprises all the input variables such as the billet or blank (geometry and
material), the tooling (geometry and material), the conditions at the tool/material interface, the
mechanics of plastic deformation, the equipment used, the characteristics of the final product,
and the finally the plant environment where the process is being conducted.
The “systems approach” in forging allows study of the input/output relationships and the effect
of the process variables on product quality and process economics. The key to a successful
forging operation, i.e., to obtaining the desired shape and properties, is the understanding and
33
control of the metal flow. The direction of metal flow, the magnitude of deformation, and the
temperatures involved greatly influence the properties of the formed components. Metal flow
determines both the mechanical properties related to local deformation and the formation of
defects such as cracks and folds at or below the surface. The local metal flow is in turn
influenced by the process variables summarized below.
Billet
Flow stress as a function of chemical composition, metallurgical structure, grain size,
segregation, prior strain history, temperature of deformation, degree of deformation or
strain, and rate of deformation or strain rate, and microstructure.
Forgeability as a function of strain rate, temperature, deformation rate
Surface texture
Thermal/physical properties (density, meltingpoint, specific heat, thermal
conductivityand expansion, resistance to corrosion and oxidation)
Initial conditions (composition, temperature, history/prestrain)
Plastic anisotropy
Billet size and thicknes
Tooling/Dies
Tool geometry
Surface conditions, lubrication
Material/heat treatment/hardness
Temperature
Conditions at the Die/Billet Interface
Lubricant type and temperature
Insulation and cooling characteristics of the
Interface layer
34
Lubricity and frictional shear stress
Characteristics related to lubricant application
and removal
Deformation Zone
The mechanics of deformation, model used
for analysis
Metal flow, velocities, strain, strain rate (kinematics)
Stresses (variation during deformation)
Temperatures (heat generation and transfer)
Equipment
Speed/production rate
Binder and design and capabilities
Force/energy capabilities
Rigidity and accuracy
Product
Geometry
Dimensional accuracy/tolerances
Surface finish
Microstructure and mechanical properties
Environment
Available manpower
Air, noise, and wastewater pollution
Plant and production facilities and control
35
MATERIAL CHARACTERIZATION :
For a given material composition and deformation/heat treatment history (microstructure),the
flow stress and the workability (or forgeability )in various directions (anisotropy) are the most
important material variables in the analysis of a metal forging process. For a given
microstructure, the flow stress,
r¯,is expressed as a function of strain, e¯, strain rate, and temperature, T:
r¯ _ f(e¯, e˙¯, T)
To formulate the constitutive equation (Eg 2.1),it is necessary to conduct torsion, plane-strain
compression, and uniform axisymmetric compression
tests. During any of these tests, plasticwork creates a certain increase in temperature, which must
be considered in evaluating and using
the test results .
Workability, forgeability, or formability is the capability of the material to deform without
failure; it depends on (a) conditions existing during deformation processing (such as temperature,
rate of deformation, stresses, and strain history)and (b) material variables (such as composition,
voids, inclusions, and initial microstructure). In hot forging processes, temperature gradients in
the deforming material (for example, due to local die chilling) also influence metal flow and
failure phenomena.
2.2.2 TOOLING AND EQUIPMENT :
The selection of a machine for a given process is influenced by the time, accuracy, and load/energy characteristics of that machine. Optimal equipment selection requires consideration of the entire forging system, including lot size, conditions at the plant, environmental effects, and maintenance requirements, as well as the requirements of the specific part and process under consideration. The tooling variables include (a) design
36
and geometry, (b) surface finish, (c) stiffness, and (d) mechanical and thermal properties under conditions of use.
2.2.3 FRICTION AND LUBRICATION AT THE DIE / WORKPIECE
INTERFACE :
The mechanics of interface friction are very complex. One way of expressing
friction quantitatively is through a friction coefficient, l, or
a friction shear factor, m. Thus, the frictional shear stress, s, where rn is the normal stress at the
interface, r¯ is the flow stress of the deforming material and f is the friction factor (f _ m/_3).
There are various methods of evaluating friction, ie, estimating the value of l or m. In forging,
the most commonly used tests are the ring compression test, spike test, and cold extrusion test.
2.2.4 DEFORMATION ZONE / MECHANICS OF DEFORMATION :
In forging, material is deformed plastically to generate the shape of the desired product. Metal
flow is influenced mainly by (a) tool geometry, (b) friction conditions, (c) characteristics of the
stock material, and (d) thermal conditions existing in the deformation zone. The details of metal
flow influence the quality and the properties of the formed product and the force and energy
requirements of the process. The mechanics of deformation, i.e., the metal flow, strains, strain
rates, and stresses, can be investigated by using one of the approximate methods of analysis(e.g.,
finite-element analysis, finite difference, slab, upper bound, etc.).
2.2.5 PRODUCT GEOMETRY AND PROPERTIES :
The macro- and micro geometry of the product, i.e., its dimensions and surface finish, are
influenced by the process variables. The processing conditions (temperature, strain, strain rate)
determine the micro structural variation staking place during deformation and often influence the
final product properties. Consequently, a realistic systems approach must include consideration
of (a) the relationships between properties and microstructure of the formed material and (b) the
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quantitative influences of process conditions and heat treatment schedules on micro structural
variations.
2.3 TYPES OF FORGING :There are a large number of forging processes that can be summarized as follows:
Closed/impression die forging with flash Closed/impression die forging without flash Electro-upsetting Forward extrusion Backward extrusion Radial forging Hobbing Isothermal forging Open-die forging Orbital forging Powder metal (P/M) forging Upsetting Nosing Coining
2.3.1 CLOSED-DIE FORGING WITH FLASH :.Definition.In this process, a billet is formed(hot) in dies (usually with two halves) such that the flow of
metal from the die cavity is restricted. The excess material is extruded through a restrictive
narrow gap and appears as flash around the forging at the die parting line.
Equipment.Anvil and counterblow hammers, hydraulic, mechanical, and screw presses.
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Materials.Carbon and alloy steels, aluminum alloys, copper alloys, magnesium alloys, beryllium, stainless
steels, nickel alloys, titanium and
titanium alloys, iron and nickel and cobalt super alloys, niobium and niobium alloys, tantalum
and tantalum alloys, molybdenum and molybdenum alloys, tungsten alloys.
Process Variations.Closed-die forging with lateral flash, closed-die forging with longitudinal flash, closed-die
forging without flash.
Application.Production of forgings for automobiles, trucks, tractors, off-highway equipment, aircraft, railroad
and mining equipment, general mechanical industry, and energy-related engineering production.
2.3.2 CLOSED-DIE FORGING WITHOUT FLASH :
Definition. In this process, a billet with carefully controlled volume is deformed (hot orcold) by a punch in
order to fill a die cavity without any loss of material. The punch and the die may be made of one
or several pieces.
Equipment.Hydraulic presses, multiram, mechanical presses.
Materials.Carbon and alloy steels, aluminum alloys, copper alloys.
Process Variations. Core forging, precision forging, cold and warm forging, P/M forging.
Application.
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Precision forgings, hollow forgings, fittings, elbows, tees, etc.
2.3.3 ELECTRO – UPSETTING :
Definition.Electro-upsetting is the hot forging process of gathering a large amount of material at one end of
a round bar by heating the bar end electrically and pushing it against a flat anvil or shaped die
cavity.
Equipment.Electric up setters.
Materials.Carbon and alloy steels, titanium.
Application.Performs for finished forgings.
2.3.4 FORWARD EXTRUSION
Definition. In this process, a punch compresses a billet (hot or cold) confined in a container so that the billet
material flows through adie in the same direction as the punch.
Equipment.Hydraulic and mechanical presses.
Materials.Carbon and alloy steels, aluminum alloys, copper alloys, magnesium alloys, titanium alloys.
Process Variations.
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Closed-die forging without flash, P/M forging.
Application.Stepped or tapered-diameter solid shafts, tubular parts with multiple diameter .
ROLLING :-
In metalworking, rolling is a metal forming process in which metal stock is passed through a
pair of rolls. Rolling is classified according to the temperature of the metal rolled. . The thread
rolling process is now widely acknowledged as the fastest and most efficient method of
producing accurate external threads, with surface finish and mechanical properties unobtainable
by any other method. This simple cold-forming operation enables engineers to produce threaded
fasteners and components to the most exacting standards with ease and repeatability on a wide
range of materials.
HOT ROLLING :
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Hot rolling is a metalworking process that occurs above the re crystallization temperature of the
material. After the grains deform during processing, they recrystallize, which maintains
an equiaxed microstructure and prevents the metal from work hardening. The starting material is
usually large pieces of metal, like semi-finished casting products, such as slabs, blooms, and
billets. If these products came from a continuous casting continuous casting operation the
products are usually fed directly into the rolling mills at the proper temperature.
COLD ROLLING :
Cold rolling occurs with the metal below its recrystallization temperature (usually at room
temperature), which increases the strength via strain hardening up to 20%. It also improves
the surface finish and holds tighter tolerances. Commonly cold-rolled products include sheets,
strips, bars, and rods; these products are usually smaller than the same products that are hot
rolled. Because of the smaller size of the work pieces and their greater strength, as compared to
hot rolled stock, four-high or cluster mills are used. Cold rolling cannot reduce the thickness of a
work piece as much as hot rolling in a single pass.
Cold-rolled sheets and strips come in various conditions: full-hard, half-hard, quarter-hard,
and skin-rolled. Full-hard rolling reduces the thickness by 50%, while the others involve less of a
reduction. Skin-rolling, also known as a skin-pass, involves the least amount of reduction: 0.5-
1%. It is used to produce a smooth surface, a uniform thickness, and reduce the yield
point phenomenon (by preventing Lüders bands from forming in later processing).
It locks dislocations at the surface and thereby reduces the possibility of formation of Lüders
bands. To avoid the formation of Lüders bands it is necessary to create substantial density of
unpinned dislocations in ferrite matrix. It is also used to breakup the spangles in galvanized steel.
Skin-rolled stock is usually used in subsequent cold-working processes where good ductility is
required.
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Other shapes can be cold-rolled if the cross-section is relatively uniform and the transverse
dimension is relatively small. Cold rolling shapes requires a series of shaping operations, usually
along the lines of sizing, breakdown, roughing, semi-roughing, semi-finishing, and finishing.
If processed by a blacksmith, the smoother, more consistent, and lower levels of carbon
encapsulated in the steel makes it easier to process, but at the cost of being more expensive.
HEAT TREATMENT :
Heat treatment of steel in a workshop is normally of two stage process. For example, if a high
carbon steel or silver steel screw driver blade has been manufactured, at some point it will have
to be ‘’hardened’ to prevent it wearing down when used. On the other hand it will have to be
‘tempered’. This second heating process reduces the hardness a little but toughens the steel. It
also significantly reduces the brittleness of the steel so that it does not break easily. The whole
process is called ‘hardening and tempering’
Heat Treatment is the controlled heating and cooling of metals to alter their physical and
mechanical properties without changing the product shape. Heat treatment is sometimes done
inadvertently due to manufacturing processes that either heat or cool the metal such as welding
or forming.
Heat Treatment is often associated with increasing the strength of material, but it can also be
used to alter certain manufacturability objectives such as improve machining, improve
formability, restore ductility after a cold working operation. Thus it is a very enabling
manufacturing process that can not only help other manufacturing process, but can also improve
product performance by increasing strength or other desirable characteristics.
Steels are particularly suitable for heat treatment, since they respond well to heat treatment and
the commercial use of steels exceeds that of any other material. Steels are heat treated for one of
the following reasons:
Softening
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Hardening
Material modification
PLATING :
Plating is a surface covering in which a metal is deposited on a conductive surface. Plating has
been done for hundreds of years, but it is also critical for modern technology. Plating is used to
decorate objects, for corrosion inhibition, to improve solderability, to harden, to improve
wearability, to reduce friction, to improve paint adhesion, to alter conductivity, for radiation
shielding, and for other purposes. Jewellery typically uses plating to give
a silver or gold finish. Thin-film deposition has plated objects as small as an atom, therefore
plating finds uses in nanotechnology.
There are several plating methods, and many variations. In one method, a solid surface is
covered with a metal sheet, and then heat and pressure are applied to fuse them (a version of this
is Sheffield plate). Other plating techniques include vapor deposition under vacuum and sputter
deposition. Recently, plating often refers to using liquids. Metalizing refers to coating metal on
non-metallic objects.
PHOSPHATE COATING :
Phosphating are used on steel parts for corrosion resistance, lubricity, or as a foundation for
subsequent coatings or painting. It serves as a conversion coating in which a dilute solution of
phosphoric acid and phosphate salts is applied via spraying or immersion and chemically reacts
with the surface of the part being coated to form a layer of insoluble, crystalline phosphates.
Phosphate conversion coatings can also be used on aluminium, zinc, cadmium, silver and tin.
The main types of phosphate coatings are manganese, iron and zinc .Manganese phosphates are
used both for corrosion resistance and lubricity and are applied only by immersion. Iron
phosphates are typically used as a base for further coatings or painting and are applied by
immersion or by spraying. Zinc phosphates are used for rust proofing (P&O), a lubricant base
layer, and as a paint/coating base and can also be applied by immersion or spraying.
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TRIVALENT CHROMIUM PLATING :
Trivalent chromium plating, also known as tri-chrome, Cr+3, and chrome (III) plating,
uses chromium sulfate or chromium chloride as the main ingredient. Trivalent chromium plating
is an alternative to hexavalent chromium in certain applications and thicknesses (e.g. decorative
plating).
A trivalent chromium plating process is similar to the hexavalent chromium plating process
except for the bath chemistry and anode composition.
WAREHOUSING :
A warehouse is a commercial building for storage of goods.
Manufacturers, importers, exporters, wholesalers, transport businesses, customs use this facility.
They are usually large plain buildings in industrial areas of cities and towns and villages. They
usually have loading docks to load and unload goods from trucks. Sometimes warehouses are
designed for the loading and unloading of goods directly from railways, airports, or seaports.
They often have cranes and forklifts for moving goods, which are usually placed on
ISO standard pallets loaded into pallet racks.
DISPATCH :
Dispatch in the sense the finished products will be sent to the customers in
the respective mode of transport .
Some of their customers are mentioned below :
Tata motors
Mahindra and Mahindra
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ESCOTCH
Maruthi Suzuki
DAFE
TELCO
DLW waranasi
BEML
Cummins india ltd
1.8 LIMITATIONS OF THE STUDY:- Hesitation in giving data of production department
Time constraint
2. REVIEW OF LITERATURE :-
Supply Chain Management has been interpreted by various researchers. Based on the relatively
recent development of the supply chain literature, it is not surprising that there has been much
debate as to a specific SCM definition.
Ganeshan and Harrison (1995) has defined SCM as a network of facilities and distribution
options that performs the functions of procurement of materials, transformation of these
materials into intermediate and finished products, and the distribution of these finished
products to customers.
Lee & Corey (1995) stated that SCM consists of the integration activities taking place among a
network of facilities that procure raw material, transform them into intermediate goods and
then final products, & deliver products to customers through a distribution system.
Christopher (1998) defined the supply chain as the network of organizations that are involved,
through upstream and downstream linkages, in the different processes and activities that
produce value in the form of products and services in the hands of the ultimate customer.
Supply Chain Management is the " strategic and systematic coordination of the traditional
business functions and the tactics across these business functions within a particular firm and
46
across businesses within a supply chain, for the purposes of improving the long-term
performance of the individual companies and the supply chain as a whole .
Supply Chain Management is a network of facilities that produce raw materials, transform them
into intermediate goods and then final products, and deliver the products to customers through
a distribution system.
It spans procurement, manufacturing and distribution (Lee & Billington 1995) the basic objective
of supply chain management is to “optimize performance of the chain to add as much value as
possible for the least cost possible”.
In other words, it aims to link all the supply chain agents to jointly cooperate within the firm as a
way to maximize productivity in the supply chain and deliver the most benefits to all related
parties (Finch 2006).
Adoption of Supply chain management practices in industries has steadily increased since the
1980s. A number of definitions are proposed and the concept is discussed from many
perspectives. However Cousins et al. (2006); Sachan and Datta (2005); Storey et al. (2006)
provided excellent review on supply chain management literature.
These papers define the concept, principals, nature, and development of SCM and indicate that
there is an intense research being conducted around the world in this field they critically
assessed developments in the theory and practice of supply management.
3.DESCRIPTIVE RESEARCH:- Used to obtain information concerning the current status of a phenomena.
Purpose of these methods is to describe “what exists” with respect to situational
variables.
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4. DATA ANALYSIS AND INTERPRETATION:-
CALCULATION OF QUARTERLY MOVING AVERAGE FOR RAW
MATERIAL :
MONTHLY RAW MATERIAL
PURCHASE
IN TONES QUARTRLY MOVING
AVERAGE
APRIL 2633
MAY 2264
JUNE 2770 2555
JULY 2390 2474
AUGUST 1795 2381
SEPTEMBER 2528 2237
OCTOBER 2283 2202
NOVEMBER 1196 2002
DECEMBER 3070 2183
INTERPRETATION :
The quarterly moving average for June is arrived by adding the first three months purchase and
dividing it by three in order to find out the average.
April- 2633+ may-2264+ june-2770 = 7667/3 = 2555
For the next proceeding month the first month should be eliminated as the next month is taken in
to account. This process should be repeated until quarterly moving average is calculated for all
the months.
For the 2012 January, the expected moving average will be 2183 ( as per the 2011 December ).
Hence January 2012 = December 2011= 2183.
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CHART SHOWING QUARTERLY MOVING AVERAGE FOR RAW MATERIAL:
APRILMAY
JUNEJULY
AUGUST
SEPTEM
BER
OCTOBER
NOVEMBER
DECEM
BER0
500
1000
1500
2000
2500
3000
QUARTRLY MOVING AVERAGE
CONCLUSIONIn the month of April, May and June the purchase of raw material is high in average. So the flow
of raw materials are high. Therefore the requirements of the SFL is also high during April, May
and June.
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CALCULATION OF QUARTERLY MOVING AVERAGE FOR
PRODUCTION:
MONTHLY PRODUCTION IN TONES QUARTRLY MOVING
AVERAGE
APRIL 23701219
MAY 26334499
JUNE 22980921 24338879.67
JULY 19039778 22785066
AUGUST 25742809 22587863
SEPTEMBER 22471164 22417917
OCTOBER 19851454 22688475.67
NOVEMBER 21860122 21394246067
DECEMBER 24313072 22008216
INTERPRETATION:
The quarterly moving average for June is arrived by adding the first three months purchase and
dividing it by three in order to find out the average.
April- 23701219+ may-26334499+ june-22980921 = 73016639/3 = 24338879.67
For the next proceeding month the first month should be eliminated as the next month is taken in
to account. This process should be repeated until quarterly moving average is calculated for all
the months.
For the 2012 January, the expected moving average will be 22008216 ( as per the 2011
December ).
Hence January 2012 = December 2011= 2183.
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CHART SHOWING QUARTERLY MOVING AVERAGE FOR PRODUCTION:
APRILMAY
JUNEJULY
AUGUST
SEPTEM
BER
OCTOBER
NOVEMBER
DECEM
BER19000000
20000000
21000000
22000000
23000000
24000000
25000000
QUARTRLY MOVING AVERAGE
CONCLUSIONIn the month of April, May and June the production is high in average. So the production are
high. Therefore the requirement of the SFL is also high during April, May and June.
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CALCULATION OF WEIGHTED MOVING AVERAGE METHOD :
MONTHLY RAW MATERIAL
PURCHASE
IN TONES WEIGHTED
AVERAGE
APRIL 2633
MAY 2264
JUNE 2770 2590.8
JULY 2390 2478.8
AUGUST 1795 2168.5
SEPTEMBER 2528 2280.5
OCTOBER 2283 2258.9
NOVEMBER 1196 1788.5
DECEMBER 3070 2350.4
For weighted moving averages let’s assume the weights W1= 0.2, W2= 0.3 and W3= 0.5
INTERPRETATION:
For the month of June =
0.2*2633 + 0.3*2264 + 0.5*2770
0.2 + 0.3 + 0.5
526.6 + 679.2 + 1385
1
= 2590.8
For the month of July =
0.2*2264 + 0.3*2770 + 0.5*2390
0.2 + 0.3 + 0.5
452.8 + 831 + 1195
1
= 2478.8
For the month of August =
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0.2*2770 + 0.3*2390 + 0.5*1795
0.2 + 0.3 + 0.5
554 + 717 + 897.5
1
= 2168.5
For the month of September =
0.2*2390 + 0.3*1795 + 0.5*2528
0.2 + 0.3 + 0.5
478 + 538.5 + 1264
1
= 2280.5
For the month of October =
0.2*1795 + 0.3*2528 + 0.5*2283
0.2 + 0.3 + 0.5
359 + 758.4 + 1141.5
1
= 2258.9
For the month of November =
0.2*2528 + 0.3*2283 + 0.5*1196
0.2 + 0.3 + 0.5
505.6 + 684.9 + 598
1
= 1788.5
For the month of December =
0.2*2283 + 0.3*1196 + 0.5*3070
0.2 + 0.3 + 0.5
456.6 + 358.8 + 1535
1
= 2350.4
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CHART SHOWING QUARTERLY WEIGHTED MOVING AVERAGE FOR RAW
MATERIAL:
APRILMAY
JUNEJULY
AUGUST
SEPTEM
BER
OCTOBER
NOVEMBER
DECEM
BER0
500
1000
1500
2000
2500
3000
WEIGHTED AVERAGE
CONCLUSIONTherefore the weighted average for the months April, May and June is high because the purchase
of raw material is high during the above respective months.
5.1 SUMMARY OF FINDINGS :-
Findings in the purchase department can be listed below :
Inventory and cost are the two major problems faced by the purchase department.
Lack in the availability of raw material.
And no input from the marketing team.
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Findings in the production department can be listed below :
The ultimate problem faced by the production department is the manufacturing
defect ( in terms of measurement ) in producing the product.
But from the side of management there is no problem has been tracked.
5.2 SUGGESTIONS AND RECOMMENDATIONS :-
Establish, monitor and follow departure of goods.
Introduce CRM and VRM IN SFL.
Networking and continued education in production so that we can improve the production
quantity.
Monitor and report product process monthly.
Timely delivery of the produced goods to the vendors
Introduce software business system which will provide tools, techniques and capabilities
to perform production function.
5.3 CONCLUSION:-
The study on measuring the effectiveness of supply chain management mechanism in the
organization resulted in effective performance of the company. The goods are dispatched on time
for production activity. There is no delay in transits reported serving as an obstacle for
production process. The transits and the movement of goods are accounted in timely and need
based manner. It is also observed that this mechanism is helping the organization in showing the
optimized results. This mechanism is serving the customers and suppliers timely thereby
maintaining better client tale base for its reputation.
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BIBLIOGRAPHY:-
WWW. SUNDRAM FASTNERS LTD .COM
WWW. LITERATURE REVIEW.COM
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