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UNIVERSITY OF GAZIANTEP DEPARTMENT OF MECHANICAL

ENGINEERING

ME 477

(_FACTORY DESIGN_)

SUBJECT : Feasibility Studies of Spiral Pipe Factory

SUBMITTED TO : PROF. DR. Ömer EYERCİOĞLU

SUBMITTED BY : ERDİ KARAÇAL

OKAN UTANGAÇ

EMRE KARACA

JULY 2013

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CONTENTS CHAPTER 1

1.INTRODUCTION 4

1.1 WHAT IS SPIRAL PIPE AND WHERE IT IS MOSTLY USED? 4

CHAPTER 2

2.MARKET ANALYSIS 5

2.1 WHERE CAN WE SELL OUR PRODUCT? 5

2.2 FACTORY LOCATION 6

CHAPTER 3

3.PIPE MANUFACTURING PROCESSES 9

3.1 PIPE MANUFACTURING FLOWCHART 10

3.2 EDGE MILLING 11

3.3 HOW TO FORM COIL AS SPIRAL? 12

3.4 WELDING OF PIPE 13

3.5 CUTTING PIPE 14

3.6 TESTING OF THE PIPE 14

3.6.1 ONLINE ULTRASONIC WELDING CONTROL 14

3.6.2 HYDROSTATIC TEST 15

3.7 COATING OF PIPE 16

3.7.1 EXTERNAL COATING 16

3.7.2 INTERNAL COATING 17

3.8 ACTIVITY RELATION CHART 18

3.9 FACTORY PLAN 19

3.10 TOTAL FACTORY AREA 19

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CHAPTER 4

4.COST ANALYSIS OF FACTORY 20

4.1 FACTORY MACHINERY REQUIREMENT 21

4.2 FIXED COST 23

4.3 INDIRECT COST 24

4.4 DIRECT LABOUR COST 25

4.5 DIRECT MATERIAL COST 26

4.6 FINANCIAL ANALYSIS 27

REFERENCES 29

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CHAPTER 1 INTRODUCTION

1.1 WHAT IS SPIRAL PIPE AND WHERE IT IS MOSTLY USED?

Steel pipes through their protection methods against corrosion and their resistance in corrosive areas they are preferring initially.

In the production of spiral pipe (also known as helical seam pipe) sheet metal coil (coil=saç rulo bobin) is continuously shaped into a tube by spiral forming facility applying a constant bending radius, with also being continuosuly welded inline and outline.

Each pipe diameter requires a certain plate width of sheet metal.

A lot of types of pipes are producing in industry.Spiral pipe is the only one type which we will produce.

İn the daily life spiral pipe is used for water distribution lines(figure 1), petroleum pipelines (figure 2), industrial pipe network, compress air line, hydroelectric power plants projects etc.

Figure (1) Figure(2)

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CHAPTER 2

MARKET ANALYSIS

2.1 WHERE CAN WE SELL OUR PRODUCT? When we investigating the market store we focused on the developing countries.

We have seen that Africa and Middle East is the best area where we can sell our product.

There is a big potential at Middle East and Africa about developing on all hands.

Our export destinations are;

Figure (3):Export destinations

ALGERIA TURKMENISTAN PORTUGAL FRANCE CAMEROON USA ISRAEL SWEDEN ITALY ANGOLA EGYPT ROMANIA PHILLIPINES IRAQ CROTIA QATAR SPAIN

SAUDI ARABIA BRAZIL MOROCCO JORDAN GREECE SYRİA AUSTRİA LİBYA TUNUSIA U.A.E.NIGERIA

As it seen that in the figure (3) We will export our product mostly Middle East and Africa.

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2.2 FACTORY LOCATION Therefore after making this analyzes our factory location is slowly appeared..

And we asked ourself this question.Our raw material is coil (bobin=rulo) to produce spiral pipe.

We will buy coil and transfer to our factory and we will produce spiral pipe…and so on..

Where is this coil mostly produced in our country?

On the other hand this location must have been nearer to sea for having minimum cost of transportation..There must be railways,seaports etc..

Finally we find the best location to build our factory.

As a location of our factory We select Osmaniye Industrial Zone.From İskenderun to Osmaniye a lot of steel factories are exist.for exaple İsdemir,Atakaş,Yolbulanbaştuğ,Rozak which means that we can buy our raw material of coil easily. Also we can export our product easily.

Red circle at the map in the Figure (4) refers to Osmaniye Industrial Zone.

Figure (4):Factory Location Map

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We can transfer and export our products by ship.

Figure (5):Loading of pipes to ship

Also We can transfer our product by train (doğu ekspresi inland)

Figure (6):Loading of pipes to train

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Red rectangular shape at the figure (7) is our factory location.And also red circles are the factories where we can buy our important raw material.(TOSÇELİK,YOLBULANBAŞTUĞ,ROZAK,KOÇ ÇELİK).

Figure (7):Osmaniye Industrial Zone Factory Locations

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CHAPTER 3

3.PIPE MANUFACTURING PROCESSES

Figure (8):Finished product

HOT ROLLED COIL

Figure (9):Main Raw Material of spiral pipe manufacturing

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3.1 PIPE MANUFACTURING FLOWCHART

Figure(10):Flowchart

Figure (11):Uncoiling Figure(12):Leveling

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3.2 EDGE MILLING

In the manufacturing of spiral pipe double Vee type of joints are used.

Figure(13): Basic Types of Weld and Joints

In the figure (14) edge millers are shown

Figure (14) Edge Miller

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3.3 HOW TO FORM COIL AS SPIRAL?

Forming, or metal forming, is the metal working process of fashioning metal parts and objects through mechanical deformation; the workpiece is reshaped without adding or removing material, and its mass remains unchanged Forming operates on the materials science principle of plastic deformation, where the physical shape of a material is permanently deformed.

Forming angle is another important parameter for manufacturing spiral pipes as shown in figure (15).

Figure(15):Forming Angle

Forming angle can easily calculated from this Formula(.As it seen that in the figure16) formula is function of width of plate and pipe diameter.

Figure(16):Calculation of forming angle

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3.4 WELDING OF PIPE

Submerged arc welding (SAW) is an arc welding process that uses a continuous,consumable bare wire electrode. The molten weld and the arc zone are protected from atmospheric contamination by being "submerged" under a blanket of granular fusible flux consisting of lime, silica, manganese oxide, calcium fluoride, and other compounds. Figure(15)When molten, the flux becomes conductive, and provides a current path between the electrode and the work. This thick layer of flux completely covers the molten metal thus preventing spatter and sparks as well as suppressing the intense ultraviolet radiation and fumes that are a part of the shielded metal arc welding (SMAW) process.The arc shielding is provided by a cover of granular flux.

The electrode wire is fed automatically from a coil into the arc. The flux is introduced into the joint slightly ahead of the weld arc by gravity from a hopper, as shown in the figure(17).

Figure (17):Submerged Arc Welding

Figure(18):Piece of Slag

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3.5 CUTTING PIPE

We use plasma cutting for our product which is spiral pipe. Plasma cutting is a process that is used to cut steel and other metals of different thicknesses (or sometimes other materials) using a plasm torch. In this process, an inert gas (in some units, compressed air) is blown at high speed out of a nozzle; at the same time an electrical arc is formed through that gas from the nozzle to the surface being cut, turning some of that gas to plasma.The plasma is sufficiently hot to melt the metal being cut and moves sufficiently fast to blow molten metal away from the cut

Figure(19):Pipe cuting

3.6 TESTING OF THE PIPE

Online ultrasonic welding control

First eyes control

Hydrostatic test machine

Last eyes control

Bending test

Tensile test

3.6.1 Online Ultrasonic Welding Control

A system and method for providing multi-mode control of an ultrasonic welding system. In one embodiment, the control modes include the energy of the weld, the time of the welding process and the compression displacement of the parts being welded during the welding process.

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3.6.2 HYDROSTATIC TEST

Hydrostatic testing has long been used to determine and verify pipeline integrity. Several types of information can be obtained through this verification process.

However, it is essential to identify the limits of the test process and obtainable results. There are several types of flaws that can be detected by hydrostatic testing, such as:

Existing flaws in the material, Stress Corrosion Cracking (SCC) and actual mechanical properties of the pipe, Active corrosion cells, and Localized hard spots that may cause failure in the presence of hydrogen.

There are some other flaws that cannot be detected by hydrostatic testing. For example, the sub-critical material flaws cannot be detected by hydro testing, but the test has profound impact on the post test behavior of these flaws.

Given that the test will play a significant role in the nondestructive evaluation of pipeline, it is important to determine the correct test pressure and then utilize that test pressure judiciously, to get the desired results.

You see applied to check for leakage from welding area of pipes in fıgure (20)

Figure(20): Hydrostatic Test Machine

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3.7 COATING OF PIPE

We can clasified the coating of pipe external and internal coating.

3.7.1 EXTERNAL COATING

The Fusion Bonded Epoxy (FBE) coating system is an externally-applied thermosetting resin for pipe. It is applied in the form of a dry powder at thicknesses of 400-600 microns onto the heated surface of the steel pipe. Once applied and cured, the epoxy film exhibits an extremely hard surface with excellent adhesion to the steel surface. The FBE protective surface is homogeneous and offers an excellent resistance to chemical reaction.

You can see how we can coating external of pipe figure (21) .

Figure(21): External Coating

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3.7.2 INTERNAL COATING

The epoxy coating lining is made up from two parts, a base and a hardener. The pot life is determined by the manufacturer to allow a reasonable time to perform the coating application.

The internal pipeline coating desired film thickness is achieved through a predetermined constant drive pressure and velocity throughout the pipeline.You can see in figure (22) how we can sprey inside the pipe.

Figure(22): Internal Coating

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3.8 ACTIVITY RELATION CHART

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3.9 FACTORY PLAN

3.10 TOTAL FACTORY AREA

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CHAPTER 4

4.COST ANALYSIS OF FACTORY

First of all we started to calculate cost analysis with searching our necessary machines and planing our working time then we tabulated our working plan at first.

Factory Hours

Hours Operational per day 8

DaysOperationalpermonth 25

DaysOperationalperyear 300

With this table we have eight hour working time per day . We have five day holiday and have twenty five day working time per month. Totaly we have three hundred working day per year.

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4.1 FACTORY MACHINERY REQUIREMENTS

After planned our working time then we searched the internet for our machines and took some prices.When calculated our machine cost we tried select our machines cheapest and strongest as possible as.And we made logical assumptions some of them for their prices.

MachineryDescription Unit UnitPrice(TL) Total Cost(TL)

Decoiler Machine 1 2200 2200

Leveling Machine 1 10000 10000

Skalp End Cutting Machine 1 20000 20000

Spiral Pipe Welding Machine 1 1000000 1000000

Hydro Test Machine 1 250000 250000

End Milling Machine 1 80000 80000

Poliythene Coating Facilty 1 500000 500000

Pipe End Cleaning Machine 2 10000 20000

Ultrasonic Test Machine 2 5000 10000

Total Machinery Cost 1.892.200

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Then we calculated our machine’s working time for one meter product. We tabulated them and we chosed the biggest value for calculating our capacity.

Machinery Description Working Time(min pe rmeter)

Leveling Machine 1.22

Skalp End Cutting Machine 1.2

Spiral Pipe Welding Machine 1.4

Hydro Test Machine 1.1

End Beveling Machine 2

Poliythene CoveringFacilty 1.96(m^2)

Pipe End Cleaning Machine 1.1

Decoiler Machine 1.2

Total 2

Total Product Per Day at Full Capacity 8*60/2=240 meter (80 ton for 60 inch outer diameter and 10 mm thickness)

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While calculating the total product per day at full capacity we got based our working time per day which is eighth our and we converted it into minute then we divided in two minute to calculate the total product for one day which is two hundered and forty meter. Then we converted this value to ton under our standart. Our standarts are sixty inch outer diameter and ten millimeter thickness.

4.2 FIXED COST

After our details became clear we calculated the our Project cost which means fixed cost and we tabulated it.

Description Amount (TL)

Land for Factory 2.000.000

Building/Infastructure for Factory 500.000

Machinery Cost 1.892.220

Office Equipment and

Mechanical Testing Equipment

400.000

Pre-Operating Costs 10.000

Tooling 20.000

Total Project Cost 4.822.220

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4.3 INDIRECT COST

We calculated indirect costs which are work overheads , Office overheads and sales overheads. We added calculated electricity cost to work overheads. Then we tabulated the man calculated total indirect cost at final stage of indirect cost analysis.

Overheads Amount(TL)

Work Overheads 3.000.000

Office Overheads 100.000

Sales Overheads 50.000

Total 3.150.000

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4.4 DIRECT LABOUR COST

We made assumptions for our requirement workers then we tabulated the man calculated total salary for one month and one year.

Workers Description No . MonthSalary(TL) Total AnnualSalary(TL)

Submerged arc Welding Operator

2(inner , outer)

4000 48000

Testing Department 2 2500 30000

Manager 1 4000 48000

Engineer 6 18000 216000

Storage 3 3000 36000

Maintenance 8 10000 120000

Welding Department 7 14000 168000

Hydrostatic Testing 2 4000 48000

End Bevelling 2 2500 30000

Quality Control 2 4000 48000

Coating unit 8 8000 96000

Outer storge 2 2000 24000

Sales department and others(secratary)

6 9000 108000

Total 49 85000 1,020,000

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4.5 DIRECT MATERIAL COST

Then we calculated direct material cost for our raw material , welding material and coating material which is a hundred TL for one ton product for three hundered micron polythenecoating thickness.

Material Amounth(TL per ton)

RawMaterial 1300

WeldingMaterial 100

CoatingMaterial 100

Total Materialcost 1500

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4.6 FINANCIAL ANALYSIS

Finally we calculate the our whole costand our profit at full capacity then we decided reduce our capaticy because it is impossible to sell all our product .

Full Capacity %70 Capacity

Total Direct cost

(1500*80*300)+1020000=37,020,000 (1500*56*300)+1020000=26,220,000

Total indirect cost

3,150,000 3150000

Fixed cost 4,822,000 4,822,000

Total cost of factory

44,992,000 34,192,000

income 80*2150*300=51,600,000 36,120,000

Profit 6,628,000 1,940,000

After this calculation our amortizing time has occurred as approximately two year at %70 capacity at final stage of cost analysis.

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REFERENCES

Tosçelik Sheet Metal and Profile Industry

Yolbulan Baştuğ Metallurgy

Rozak Metallurgy

İSDEMİR Steel Factory

Erciyas Steel Manufacturing

Hall Longmore Steel Industry

İlhanlar Boru

Tosçelik Boru