A PROJECT REPORT

ON
CAPACITY PLANNING OF PZS GROUP IN BFL

BY

CHETAN SHITOLE
REG.NO.-201200480
(2012 2014)

IN PARTIAL FULFILLMENT OF
PGDBA-OPERATIONS MANAGEMENT
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
PUNE: 411016

ACKNOWLEDGEMENT
A project of this nature calls for intellectual nourishment, professional help and
encouragement from many quarters. I would like to express my gratitude to my project
mentor, Mr. Santosh Dhage for his invaluable guidance, directions and intent
supervision at every step of this project work.
I would like thank Mr. B.N Kalyani, Chairman and MD of Bharat Forge Ltd who
provided me the opportunity of doing project in Bharat forge. I would also like to
offer my acknowledgement to Mr. S.J Gangawane (AVP, PPC dept.) and Mr.
Manish Rashinkar (Sr. Manager, PPC dept.) and the complete staff of PPC
department for their support and guidance throughout the project.
I would also like to show my gratitude towards SCDL for giving me the opportunity to
work on this project.

Mr. Chetan Shitole

ABSTRACT

The objective of the project is to do capacity planning of PZS group and to study the
Working and functioning of the PPC department. Capacity verses demand is studied for
different presses under PZS group, for few presses where the demand does not matches
the effective capacity the factors of OEE and cycle time are studied. Demand forecasting
is done using the least square method

to know the future requirement and plan

accordingly for future. According to the forecast the demand will be exceeding the
capacity; therefore the company should start working on how to increase the
capacity. Steps in capacity planning are studied to understand the planning process,
and also suggest a particular strategy to use for future planning.

INDEX
Sr. No.
1

1.1
1.2
1.3
1.4
1.4.1
1.4.2
1.5
1.6
1.7
1.8
1.9
1.9.1
1.9.2

2
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.1.5
2.1.6
2.1.8
2.2
2.2.1
2.2.2
2.2.4
2.2.5
2.3
2.3.1

3
3.1

3.1.1
3.2
3.2.1
3.2.2
3.2.3
4

3.3
4.1
4.1.1
4.1.2
4.2

4.2.1

Contents
Introduction
Company Profile
Bharat Forge history
Major milestones
Forging facilities
Closed die forging facilities
Open die forging facilities
Clients of BFL
Brief overview of BFL
Material flow in BFL
Steps in forging process
Products of Bharat Forge
Closed die forging products
Open die forging products
Literature review
Production planning and control
Principle of planning and control
Function of PPC
Planning in BFL
Controlling in BFL
Objectives of PPC
Process carried out by PPC in BFL
Co-ordination of PPC with other department
Capacity planning
Introduction to capacity planning
Need of the project
Capacity decision
Factors affecting capacity planning
Prime area : PZS group
Important parameters of presses and hammers
Demand evaluation
Forecasting
Forecasting methods
Demand pattern
Customer wise
Part wise
Group wise
Forecasting for PZS group
Capacity planning
Estimate future capacity
Quarterly business plan
Four monthly production plan
Evaluate existing capacity and identify gaps
Monthly capacity planning of PZS group

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4.2.2
4.3
5
5.1
5.2
6
6.1
6.2
6.4
7

Effective capacity vs demand

Planning for future
Data analysis and interpretation
OEE analysis
Pareto chart for major downtime
Suggestions
Checklist of the preventive maintenance
Adjustments to capacity
Capacity planning strategies
References

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LIST OF FIGURES
Sr. No.
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Figure No.
Fig. No. 1.1
Fig. No. 1.2
Fig. No. 1.3
Fig. No. 1.4
Fig. No. 1.5
Fig. No. 1.6
Fig. No. 1.7
Fig. No. 1.8
Fig. No. 1.9
Fig. No. 2.1
Fig. No. 2.2
Fig. No. 2.3
Fig. No. 2.4
Fig. No. 2.5
Fig. No. 3.1
Fig. No. 6.1

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LIST OF GRAPHS
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Graph No.
Graph No.3.1
Graph No 3.2
Graph No 3.3
Graph No 3.4
Graph No 4.1
Graph No 4.2
Graph No 4.3
Graph No 4.4
Graph No 4.5
Graph No 4.6
Graph No 5.1
Graph No 5.2

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LIST OF TABLES
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Tables
Table No 1.1.
Table No 1.2
Table No 1.3
Table No 2.1
Table No 2.2
Table No 3.1
Table No 3.2
Table No 3.3
Table No 3.4
Table No 3.5
Table No 3.6
Table No 4.1
Table No 4.2
Table No 4.3
Table No 4.4
Table No 4.5
Table No 4.6
Table No 4.7
Table No 4.8
Table No 4.9
Table No 4.10
Table No 4.11
Table No 4.12
Table No 4.13
Table No 4.14
Table No 4.15
Table No 5.1
Table No 5.2
Table No 5.3
Table No 5.4
Table No 5.5
Table No 5.6
Table No 5.7
Table No 6.1

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1. INTRODUCTION

1.1 Company Profile

Bharat forge limited (BFL), the Pune based multinational is a technology-driven global leader in
metal forming having trans-continental presence across a dozen manufacturing locations, serving
several sectors including automobile, power, oil and gas, rail and marine, aerospace, construction
and mining.
Part of Kalyani group- a U.S $ 2.5 billion conglomerate with 10,000 global work forces. BFL
today has the largest repository of metallurgical knowledge in the region and offers complete
service supply capabilities to its geographically dispersed marquee customers from concept to
product design, engineering, manufacturing, testing and validation.
Bharat Forge is the largest forging company in the world and one of the most technologically

advanced commercial forge shops in the world. They specialize in manufacturing over 2000
different range of forgings and machined components for the automotive, engine, railway,
earthmoving, cement, sugar, steel, coal, shipbuilding and oil field industries. They are
specialized in closed die as well as open die forgings.
BFLs customer base includes virtually every global automotive OEM and tier 1 supplier. It
holds the distinction of being the first Indian automotive component manufacturing company that

made a major breakthrough in china in 2003 by securing large business from first and second
automotive works, the two leading automobile manufacturers in that country.
It is the largest manufacturer of the axle components for heavy trucks with a 35% global market
share and a 10% global share in engine components. The organization aspires to become $3
Billion Company in the near future by having various organic and non-organic business
expansions. The business is so well maintained and spread that a single customer constitutes not
more than 8% of the total turnover of Bharat Forge. An ISO 9001-2000, ISO/TS 16949: 2002
accredited company, Bharat Forge is internationally reputed for its cutting edge technology,
quality processes, and capabilities developed over the years to meet the exact standards of the
most demanding customers in the world.
BFL completed capacity expansion to set up dedicated state of art facility for manufacture of
critical and value added components for non-automotive applications including rail and marine,
Oil and Gas, power and construction and mining.
Over the year BFL has built a strong base of intellectual capacity. Highly skilled and motivated
manpower, with over 1200 engineers engaged in various manufacturing disciplines are driving
the companys global thrust.
Bharat Forge limited today is a global corporation with world class engineering capabilities, state
of the art manufacturing facilities and a global customer base that includes General Motors,
Toyota, Ford, Daimler-Chrysler, Honda, Renault, Volvo, Caterpillar-Perkins, Cummins, Arvin
Meritor, Mitsubishi Motor Corporation, Dana Corporation and several others.

Fig. 1.1

1.2 Bharat Forge history

Bharat Forge Ltd. is one of the most innovative & exciting companies to emerge in the history of
the forging industry.
The Indian Automotive Industry in 50s was more like the story of imported kits. Ancillaries were
nominal & infrastructure was scarce and inadequate. It was then, that Bharat Forge came into
existence in 1961 to meet the forging needs of Indian Automotive Industry. The 70s witnessed a
spurt in the Indian forging industry with more & more units coming up. For Bharat Forge, it was
a period of consolidation & growth. With the largest integration facilities in Asia & an
unbeatable track record, Bharat Forge emerged as the undisputed leader the first name in
forgings industry in India.
With an emphasis on diversification, the 80s saw, Bharat Forge grew from a primarily
automotive ancillary to an engineering enterprise focusing on technological supremacy,

resilience & total customer orientation. Today, the art of forging metal is tradition at Bharat
Forge, & all of our products are built with the expertise necessary to accommodate various
industries. Each customer specification is carefully transformed into a cost efficient reality.
Every part we create is a representation of our overall dedication to craftsmanship.
An outstanding reputation for customer service coupled with the management commitment to
quality has made Bharat Forge the preferred domestic & global supplier for major OEMs. Under
the intense & caring supervision of the chairman & managing director, Mr. B. N. Kalyani, the
company continues to expand & its markets continue to grow, while the goal remains the same :
to deliver competitive, quality products & services time after time.
1.3 Major Milestones
1961

Incorporation

1962

Technical agreement with SIFCO, USA for hammer forging technology

1966

Start of hammer shop commercial production

1972

Execution of maiden export order to Greece

1984

Technical agreement with Tokyo Drop Forge, Japan for technology up

gradation & quality improvement for hammer forgings

1985

Entry in erstwhile USSR market by winning a large contract for under carriage
components-for track line and big crank shafts

1986

Technical agreement with Jidosha Buhin Kogyo, Japan for machining of front
axle beams

1990-91

Major breakthrough in the developed markets of Japan, USA & UK for the
critical suspension & engine components like front axle beams & machined
crankshafts.

1991

Implementation of large US $ 50 million forging facility up-gradation program

by commissioning of 16000 MTs & 6000 MTs Weingarten (Germany) make
of screw press lines.

1993

ISO 9002 accreditation

1996

Technical agreement with Metalart Corporation, Japan for small forgings &

commissioning of 4000 MTs & 2500 MTs mechanical press lines for small
forgings.
1997-98

Establishment of new machining facilities for crankshafts, front axle beams &
heavy steering knuckles.

1999

QS 9000 accreditation

2000

Implementation of a US $ 30 million facility expansion program by

commissioning of second 16000 MTs Weingarten (Germany) make screw &
2500 MTs mechanical press lines.

2003

Bharat Forge has acquired one of the largest forging companies in Germany
named Carl Dan Pedinghaus emerging as the second largest Forging Company
in the world.

2004

Acquisition of Aluminum Forging Company in Germany in December 2004.

Major expansion program FMD III & MCD II. Once again a part of the Forbes
list of 200 successful companies out of US, With revenue less than $ 1 billion.
CEO of the year to Babasaheb Kalyani by business standard.

2005

Acquired Imatra Kilsta, AB, Sweden along with its whole Scottish Stampings,
Scotland (together called as Imatra).
Signed a JV with FAW Corporation, the largest automobile named FAW Bharat
Forge.

2006

kurimoto line installed - completely automatic transfer line

2007

Introduction of 12500 TMP to increase business- mainly for big components

2008

Baramati plant was started- as a measure of expansion of capacity facility

2013

Wedge press installed to serve the demand for international customers

Table no. 1.1

1.4 Forging Facilities

1.4.1

Closed die forging

PRESS SIZE

WEIGHT RANGE

TYPICAL COMPONENTS

(KG)
16,000 MT

60-250

I-Beams & Crankshafts &

Connecting Rods

12,500 MT

60-250

I-Beams & Crankshafts

10,000 MT

80-120

Crankshafts & I-Beams

8,000 MT

20-90

Crankshafts & I-Beams

6,000 MT

20-50

Steering Knuckles,
Crankshafts, Connecting Rods
& Lower Control Arms

5,550 MT

20-50

Crankshafts for Passenger

Cars

5,000 MT

10-50

Control Arms, Steering

Knuckles, Lower Control
Shoes & Truck Shoes

4,000 MT

5-20

Steering Knuckles,
Crankshafts, Connecting
Rods, Swivel Hubs, Knuckles,
Control Arms, Heavy Duty
Pistons, Wheel Carriers,

Upper Control Arms, Track

Shoes & Brackets
2,500 MT

2-5

Connecting Rods,
Transmission Components,
GET Tips, Camshafts,
Knuckles, Upper Rear Control
Arms & Pistons

2,000 MT

2-5

Tips, Camshafts, Knuckles &

Pistons

Hammer

2.5T & 4.5 m long

Large components for Energy

Sector, Hydro Carbon

80 Mtr Ton

Exploration
Sector including Fracing.
Transportation including
Aerospace, Locomotive &
Marine.
Ring Rolling

Up to 4000 mm in diameter

Large Rings & Gear blanks

for various sectors

Table no. 1.2

1.4.2

Open die forging

PRESS SIZE

WEIGHT RANGE

SECTORS

(KG)
4,000 MT

70 T

Products for sectors such as

Wind Energy, Oil & Gas,
Steel, Power, Gear, Cement,
Ship Building, Press Vessel,
Petrochemical & Sugar
Industry. Shafts for the Wind
Energy & Power Generation
sector, Well Heads & X-mas
Tree parts for the Oil & Gas
Industry and Pinion
Shafts, Gear blanks etc. for the
Capital Goods sector.

1,600 MT

17 T

Products for sectors such as

Sugar Industry, Cement
Industry & Material Handling,
Mining, Shipbuilding, Fan &
Pump, Oil & Gas

Table no. 1.3

1.5 Clients
BFL has various kinds of customers both from Automotive and Non-Automotive field.
Following are some of the customers of BFL

Automotive

Fig. 1.2

Non-Automotive

Fig. 1.3

10

1.6 Brief Overview of BFL

Fig. 1.4
CDFD:

MCD:

MCD:

Services:

FMD 1

MCD 1

HFD 1

ITD

FMD 2

MCD 2

HFD 2

Sales

FMD 3

MCD NC
Die Shop

Forge Shop

MCD Chakan

 Material
MCD Baram
ati

HR

CDFD Engg

Legal

Processing

PPC

Heat Treatment

Finance

1. FMD I (Forge Modernization Division I)FMD I stands for Forge Modernization Division 1. The unit was started at BFL
Mundhwa plant in 1991 and has been in operation ever since. Today it has a total of 5
press lines. The lines available are PZS-1 line (16000T), PSH line (6300T), LKM-4000
line (4000T), LKM- 2500 line (2500T) and LMZ 2500 line (2500T). The jobs forge here
includes Crank Shafts, Front Axle Beams, and Connecting Rods etc. The types of
furnaces used here are Rotary Hearth Furnace and Induction Furnace.
2. FMD II (Forge Modernization Division II)FMD II stands for Forge Modernization Division 2. It has a total of 4 press lines. The
lines are PZS-2 line (16000T), AZAX line (6000T), EUMUCO line (5000T), MAXI line
(2500T). Here the PZS press is mainly used for forging Axle Beams.
3. FMD III (Forge Modernization Division III)FMD III stands for Forge Modernization Division 3. The unit was installed in 2005 and
being the latest one it has the highest level of automation. It has a total of 3 press lines.
The lines are TMP 12500 line (12500T), TMP 8000 line (8000T) and Kurimoto line
(5500 T).
4. Forge ShopForge Shop is the oldest division of Bharat Forge Ltd. and still is using the old
machinery. The division has Hammers instead of Presses unlike FMDs. It forges various
products with weight range of up to 350 kg. It has pneumatic hammers which are
manually controlled. The lines available here are 25001, 25002 and 10T. The jobs are
handled mechanically using forklifts and No Automation is done. All the above
hammers are Vertical Movement Machines and the Horizontal Movement machines are
12

called Upsetters. Mostly larger jobs are forged here and it deals with forging of various
metals like Stainless Steel, alloy steels, aluminum and titanium. Heating is done by oil
fire furnace using low density oil.
5. Die ShopDies are very important tools in manufacturing of many components which are required
to be produced in large quantities. A Die is basically a shape engraved on a large metal
piece which can be used as a model for production of products of that particular shape.
The dies used for forgings are made here. Automatic cutting machine tools like CNC
Lathe, HSM (High Speed Machine), EDM (Electron Discharge Machining) etc. are used
for production of the required die. The dies are made in 2 types of machines, traditional
and imported which are both computerized. A traditional machine operates at 3000 rpm
so it is kept open. Imported machines operates in a chamber as the operating speed is
8000- 18000 rpm. One more advantage of imported machines is that they got tool
changer and all the tools required for the complete process can be loaded in one go. The
design specifications are given by the engineering division. After the final craving of the
shape on the metal block is done the process of Nitriding is performed in the Heat
Treatment Department. Afterwards it is sent for inspection. Once the validity of the
product is confirmed the Die is sent to the Die Storage yard.
6. CDFD Engineering DesigningIs the backbone of any manufacturing unit. It is a very important step in production of
any product especially for engineering purpose. The CDFD department is responsible
for the designing of any product as per the requirement of the customers. It uses various
modern software like Pro-E, CATIA, ANSYS etc. Customers provide the drawings of
the job and according to that the dies are design.

13

7. Processing linesAfter the forging is done, processing of the products is required so as to increase the
value of the job as well as the property. The Processes involved are given below:
a. Shot Blasting: A process of rapidly impacting the surface of an object with
a controlled stream of abrasive, shot material to prepare the surface to
meet specifications.
b. Cold Straightening (Padding): To remove bends and to straighten the job.
Magnetic Particle Inspection: To remove surface cracks Coining: It is a form of
precision stamping in which the job is subjected to a sufficiently high stress to
induce plastic flow on the surface of the material but retains toughness and
ductility.
c. Finishing Shot Peening: to increase fatigue life by bombarding the surface of the
part with small spheres of uniform media that induce compressive stresses.
d. Visual Inspections: Visual Inspection is done to check the final specification.
e. Painting: Dip or Spray
There are 3 processing lines at Bharat Forge, namely:a. IQC (Old line): Valve Body (Oil field), Big Connecting Rods, Tubes, CSO
(Crank Shaft old) are processed here. Axle Beams are processed here also but the
capacity/output comes under that of A2 line.
b. A2 Line: The lines here are Axle Beam, Ford line, A2 line small, HHP A2 line,
Crank Shaft new, LCV Beam
c. FMD3 line: All the jobs forged in FMD3 are processed here.

14

8. Heat TreatmentHeat Treatment is a group of industrial and metal working processes used to alter the
physical and chemical properties of the material. It changes the properties of the forged
part being treated by affecting the size and alignment of the crystalline structure of the
elements in the steel or carbon alloy. It involves the following factors: Heating,
temperature control, atmosphere control and controlled cooling. Tray time is the time
taken of one tray with job to feed from one end and to come out of the furnace at the
other end as heat treated. The furnaces used are Bogie Hearth furnaces as well as batch
and various continuous furnace lines.
Processes employed in Heat Treatment area. Preheating and soaking: Preheating is done in Induction Billet Furnace, Oil-Fire
Furnace and LPG furnace. It involves heating the jobs up to a temperature of 727oC
to create a solid solution of Iron and carbon which is easily workable. The heating is
done until the entire job is at the same temperature. This is known as soaking and the
timing depends upon the chemical analysis of the metal and mass of the part. When
the parts are non-uniform, the soaking period is determined by the heaviest section.
b.

Annealing: Annealing is done to induce ductility, soften material, relieve internal

stresses and refine the structure by making it homogeneous by heating till Eutectoid
region and maintaining the temperature before cooling.

c. Normalizing: It is done to improve the crystalline structure of the steel. Control

Cooling: Hold at a temperature and then cool Quenching: It is done by rapid cooling
of the job for increasing the toughness. Various liquid mixtures are used for
quenching which include polymer quench ant, polymer & water quench ant and
polymer & oil quench ant.
d.

Tempering: The quenched job is tempered at 560oC to obtain the requisite

mechanical properties. It is accomplished by a controlled reheating of the work piece
to a temperature below its lower critical temperature. It is done in LPG furnace.
15

9. MQC (Metallurgical Quality Control)It is involved in raw material injection and clearance. Service failure analysis is done to
find out and eradicate the failure and its cause permanently. Metallurgical testing of a
job for parameters like hardness, brittleness, ultimate tensile strength etc. is done here.
Only if the material is tested successfully for all parameters as per the requirements of
the customers, it is given to the customer.
10. MCD I (Machine Component Division I)Machining of the forged jobs is done here to the requisite dimensions and tolerances. It
has 11 crankshaft lines. Products are finished using machining processes like rounding,
flangside drilling, oil hole drilling, deburring, grinding, turning, facing, centering,
chamfering etc. by using CNCs.
11. MCD II (Machine Component Division II)This division is more modern than MCD I and hence has higher automation. Higher
automation results in enhanced fatigue resistance of the product being forged along with
improved balancing which is taken care by magnetic particle inspection. MCD 2
compared to MCD 1 handles products of greater dimensions and capacity. There are 6
lines in it of which, 4 are crank shafts line, 1 for Front Axle line and 1 for knuckle line.
Machined parts are for 100 % export.
12. HFD I (Heavy Forge Division I)The press was installed in 1985 and the maximum capacity press here is of 1600 T
capacity. It has an Open die forging process. The process here is semi-automatic and in
this division the heat treatment section is also within it. The jobs mainly forged here are

16

valve bodies, front axle for Volvos etc. Major clients are Sugar Mills, Cement industry,
Aeronautics and other heavy machinery industries like BHEL.
13. HFD II (Heavy Forge Division II)HFD 2 deals with the forging of heavy components. The hydraulic press of 4000 T and
manipulator of 35 T is installed in this division. The main purpose of manipulator is to
help in holding the work piece and feeding it to the hydraulic press. The orientation and
feed movement is controlled by the manipulator. V die is used for forging ingot into
cylindrical shape and flat die for forging into rectangular shape.
14. SalesSales division is an important department of the company which deals with the domestic
sales. Another department International trade division (ITD) deals with the sales with
the overseas companies. Sales department is the starting point for any company as it
helps in determining the production and profits for the company. Sales department takes
the order from the companies, processes them, decides upon the costing and sets the deal
with these companies. Then it sends the details of the order to PPC division for the
further processing of the order.
15. SafetyBharat Forge always keeps its employees safety as the first priority. The department
owns many amenities that are needed for ensuring hazard free working conditions as
listed under:

A 24 hour ready ambulance.

Facility of first aid kits, fire extinguisher in all shops.

A rapid action van.

A rapid action motor bike for inaccessible areas.

17

Well-equipped dispensary with necessary facilities.

A 24 hour ready fire extinguisher van.

16. MaterialsThe Material department takes care of all the international and domestic purchases. It
has broadly six departments, namely

General Purchase This department deals with transactions within India and is further
subdivided into two categories i.e. stock and non- stock.

Imports This department deals with transactions outside of India.

Steel Purchasing This department deals with the purchase of steel for the plant from
companies such as TATA steel, Kalyani steel etc.

Stores There are 3 stores - GS 01, GS 02 and GS 04. GS 01 caters to the needs of A2
line, MCD1 and MCD2. GS 02 caters to FMD1and FMD2 and similarly GS04 caters to
FMD3.

Excise department This department deals with excise documentation and duty.

Shipping department- Physical dispatch of goods.

17. FinanceThe department is divided further into sub departments. Those are

Cash & Bank: It deals with bank and allocation of funds.

Expense: It maintains accounts of miscellaneous expenses travel allowances of

employees etc.

Salaries: It calculates the number of days an employee has worked, appropriate payrolls
and related activities.

Payables: It maintains accounts of purchases of goods and payments to suppliers.

18

Receivables: It does the accounting of sales and maintains account for all customers.

Costing: It deals in inventory valuation, job costing and budget control.

Treasury: It deals with arrangement of finances, working capital and long term
investment.

Fixed Assets: It deals in controlling and monitoring various projects and maintains
accounts of depreciation.

General Ledger: Coordinate between all sections and maintains Profit Loss accounts,
balance sheets and prepares quarterly, half yearly and annual financial reports.

18. MTB (Machine tool building)It focuses on reconditioning of old machines so that we can rebuild a machine at a lower
cost. Here old machines are bought and the parts are replaced by world class parts such
that we can achieve a machine at a lower cost. The new machines generally cost around
12 crore but the old machines with new parts will come to maximum of 4 to 5 crore
thereby cost saving the expenses of the company. Major objectives are cost saving and
faster machine availability. Tools commonly used are CNC, PLC, E-plan.
1.7 Material flow in BFL
1. BFL recieves raw material from kalyani steels, hospet, JSW and other sister companies.
2. When the material arrives in BFL it is stored in steel yard, it goes to the metallurgical
quality control (MQC) department where the material is tested, hardness testing,
microstructure analysis is also done. Investigation and analysis is needed as the properties
of the materials must be according to the customers requirement. The materials not up to
the mark are sent back to the source from where it came.
3. Once approved by MQC the raw material is sent tfor billet cutting where material is cut
into circular or square billets.

19

4. Then the material is sent for forging to different shop floors, after forging once again
properties are checked by MQC . the materials which are not accepted by the MQC are
sent back.
5. Few parts require heat treatment and few are sent directly for processing, as few parts are
micro alloyed steel they wont require heat treatment.
6. After processing parts are send to MCD if machining is required while others are directly
send for shipment and finally to the customers.
7. All the material which is collected as scrap is send to Kalyani Carpentry.

Fig. 1.5

20

1.8 Steps in Forging

1. Cut Billet: A semi-finished cogged hotrolled or continuouscast metal product of
uniform section usually rectangular with rounded corners.
2. Heating: Heating of the billets in the furnaces up to the forging temperatures.
3. Reducer Roll: A machine situated alongside the forging machine for preforming.
The operation is carried out by passing the workpiece between contrarotating shafts
which carry appropriately shaped dies.
4. Flattening/Bending if required: A preliminary forging operation to give the
piece approximately the correct shape for subsequent forming.
5. Buster (rougher): An impression employed in a die when considerable metal movement
is required and which precedes a blocker cavity and a finisher cavity.
6.

Blocker: The forging die impression which gives the forging its general shape but
omits any details that might restrict the metal flow; corners are well rounded. The
primary purpose of the blocker is to enable the forming of shapes too complex to be
finished after the preliminary operations; it also reduces die wear in the finishing
impression.

7. Finisher: The die impression that imparts the final shape to a forged part.
8. Trimming: The removal of flash or excess metal from a hot part (such as a forging) in a
trimming press.
9. Padding: In case small misalignment may be there in the job, correction or
straightening is done here in padding.
10. Controlled Cooling / Heat treatment: A sequence of controlled heating and
cooling operations applied to the solid metal to impart desired properties

21

Fig. 1.6

1.9 Products of Bharat Forge

The products of Bharat Forge can be classified into two types:
1.9.1

Closed die forgings

Crankshaft
Axle beam

Steering Knuckle

Connecting Rod

Rocker Arm

Transmission Parts

Hubs

Oil & Gas segment

22

Fig. 1.7

Fig. 1.8
23

1.9.2

Open Die Forging

The open die forging division of Bharat Forge manufactures products for the following sectors:

Sugar Industry

Cement Industry

Steel Plants

Gear manufacturing and Material Handling

Mining

Shipbuilding

Fan and Pump

Petroleum and Petrochemical

Tools and Plastic Injection Moulding

Forging Industry

Seamless tube Industry

24

Fig. 1.9

25

2. LITERATURE REVIEW
2.1 Production planning and control
PPC department is a very crucial and critical department in every industry since this department
decides upon how the production would be carried out. It takes the demand plan from the Sales
department and based upon the requirement, it decides upon the production plan. It coordinates
with the materials department for the inventory availability. PPC after designing the production
plan also keeps check or monitors whether the whole plan is followed properly or not.
2.1.1

Principle of production planning and control

The highest efficiency in production is obtained by manufacturing the required quantity of

product, of the required quality, at the required time by the best and cheapest method- PPC is a
tool to coordinate all manufacturing activities in a production system.
Production planning and control essentially consists of planning production in a manufacturing
organization before actual production activities start and exercising control activities to ensure
that the planned production is realized in terms of quality, quantity, delivery schedule and cost of
production.
Objective of a production planning is to provide a physical system together with a set of
operating guidelines for efficient conversion of raw materials, human skills and other inputs into
finished products.

26

2.1.2

Functions of PPC

Fig. 2.1
2.1.3

Planning in BFL
Analysis of Strategic Business Plans and setting of goals and objectives in consultation

with the management.

Analysis of customer demand, both internal and external.

Analysis of forging WIP with respect to customer demand.

Preparation of four monthly production plan, and conversion into monthly, weekly and
daily shift-wise schedules.

Coordination of new product development.

Preparation Shipment plans.

27

Synchronization of MCD production requirements with forge divisions plans.

Preparation of daily dispatch and receipt plan in coordination with processing shops.

2.1.4

Controlling in BFL

Coordination of inputs like dies and raw material to achieve production plans.

Work order processing.

Control over the issue of cut material to OFD.

Coordination with shipping department for delivery of forgings to customer

Coordination of feeding forgings to MCD

Disposition and accounting of scrap

Sub-contracting activities like selection and assessment of sub-contractors.

Review quarterly / monthly performance against goals and objectives.

2.1.5

Objectives of PPC

Optimum utilization of capacity

Inventory control

Economy in production time

Ensure quality

Effective utilization of resources

28

Co-ordinates activities of departments

2.1.6

Process carried out by PPC in BFL

Following is the various processes followed by PPC department:1. Received the Sales Demand
After receiving the Sales demand from Sales Department, 4 month Production Plan is prepared
by 2nd or 3rd of month say (Jan, Feb, Mar, April). First 2 months plan is fixed and last 2 are
tentative. Then Monthly Production & Shipment are scheduled after that and then the Week wise
breakup is done every week.
To calculate how much to produced, they take into account the WIP available from previous
schedules and added up 3- 3.5% of the amount to be produced as the scrap allowance and
consider the opening stock of the previous month. Jobs are identified by the Die No.
2. Identify where to produce
They identify the presses which are underutilized and give the new work to them and also take
into account the blow force that will be required and the productivity of the press.
3. When to produce
PPC department considers the following parameters while deciding when to produce
i)

When the customers want the product.

ii)

Lead time

iii)

Batch Size

iv)

Processing Lines requirement.

29

Fig. 2.2
2.1.7

Co- ordination of PPC with other Department

PPC department is a department which require to co-ordinate closely with all the other
departments. It works on various data given by other departments and it needs other departments
to perform their work properly in order to fulfill the production plan timely and correctly. It is
indeed the backbone of the company. PPC co-ordinates with-

30

1. QualityQuality department informs PPC department about the number of accepted and rejected
materials.

Inspection department provides immediate feedback on rejected quantity and

quality of items that is reworkable.

Quality control department must give feedback about quality of incoming raw
material immediately. If incoming raw material is poor, immediate feedback
avoids further processing on defective raw materials.

Errors in dimension observed by shop inspection must be communicated to PPC

immediately.

Fig. 2.3

31

2. ITD

ITD consults PPC regarding the deliveries, when is it possible so that they can
convey it to the customers.

ITD department gives the demand to the PPC department given by the
international customers.

If the delivery cannot be made within time then PPC informs ITD department.

3. SalesPPC department acts as important link between sales department and production
department.

Sales department consults PPC department regarding quotation prices and

deliveries.

Information regarding customer orders must be passes to PPC department for

further action.

PPC provides status of production to sales department.

PPC reports sales department when delivery promises can not be met within
schedules.

4. Materials

PPC department informs the materials department about how much material will
be required in the future.

PPC plans and controls the flow of material.

PPC has to coordinate with the material department to know how much the
inventory is.

32

5. Die shop

PPC informs the die shop that how many dies are required per month and their
specification.

PPC requires the information about dies like die run size, die life etc during
planning.

New die development information is given to the die shop by the PPC according
to customers requirement.

6. MCDIn machine component division machining of different components is done.

PPC department sends parts for machining to MCD 1 and MCD 2.

Machining of auto components is done in MCD 1, and machining of crankshaft is

done only in MCD 2.

MCD department coveys to PPC about how many parts are machined and ready
for shipping and how many parts are needed to be processed again or what is the
rejection rate.

2.2 Capacity planning

Capacity in general is the maximum production rate of a facility or a firm. It is usually expressed
in volume of output per period of time. Capacity indicates ability of a firm to meet customers
demand. Operations manager are concerned with capacity because:

They want sufficient capacity to meet the customers demand in time.

Capacity affects cost efficiency of operations, the ease or difficulty of scheduling output
and the cost of maintaining the capacity.

Capacity requires an investment of capital.

.

33

2.2.1

Introduction to capacity planning

Capacity planning is the process of projecting future capacity needs based on current company
use and industry trends. It is the process of determining the production capacity needed by an
organization to meet changing demands for its products. A discrepancy between the capacity of
an organization and the demands of its customers results in inefficiency, either in under-utilized
resources or unfulfilled customers. The goal of capacity planning is to minimize this
discrepancy. Capacity can be increased through introducing new techniques, equipment and
materials, increasing the number of workers or machines, increasing the number of shifts, or
acquiring additional production facilities.
2.2.2

Need of the project

Capacity planning is the first step when an organisation decided to produce more or a new
product. Once capacity is evaluated and a need for a new epanded facility is determined, facility
locations and process technology activities occur. Too much capacity would require exploring
ways to reduce capacity, such as temporarily closing, selling or consolidating facilities.
Consolidation might involve relocation, a combination of technologies, or a rearrangement of
equipment and processes

Capacity planning is done to estimate whether the demand is higher than capacity or
lower than capacity. That is compare demand verses capacity.

It helps an organisation to identify and plan the actions necessary to meet customers
present and future demand.

34

Fig. 2.4
When we observe the trend of previous years, the demand of different groups is exceeding the
available capacity. There is a need to continuously manage the capacity so that the demand
matches the capacity
Based on the demand fluctuations, we have to keep revising our capacities and try to make it
leveled. If we have excess capacity, the underutilization of the resource is wastage and if the
demand exceeds the capacity, we may lose our valuable customers as we will not be able to
supply the required demands in time. Either way, it is a loss to us.
So, it is very important on how to manage our capacity level and if we have to increase it, in
what way we have to do it. Capacity requirement can be evaluated from two extreme
perspectives-short term and long term.

35

a. Short term requirementsManagers often use forecast of product demand to estimate the short term work load the facility
must handle. By looking ahead up to 12 months, mangers anticipate output requirements for
different products or services. Then they compare requirements with existing capacity and detect
when capacity adjustments are needed.
b. Long term requirementLong term capacity requirement are more difficult to determine because future demand and
technologies are uncertain. Forecasting 5 or ten years into the future is a risky and difficult task.
What products or services will the firm are producing then? todays product may not even exist
in the future. Obviously long term capacity requirements are dependent on marketing plans,
product development and the life cycles of the products.
Changing in process technology must also be anticipated. Even if producers remain unchanged,
the method for generating them may change dramatically. Capacity planning must involve
forecast of technology as well as product.
2.2.3

Capacity decisions

Major considerations in capacity decisions are:

1. What size of plant? How much capacity to install?
2. When capacity is needed? When to phase-in capacity or phase-out capacity?
3. At what cost? How to budget for cost?
Capacity decisions are important to all departments of the organization; an accountant would be
interested in collecting cost accounting information in order to ensure that correct capacity
expansion decision is reached.
Similarly a financial manager would be interested in performing the financial analysis of whether
the investment decision is justified for a plant or capacity increase. An Information Technology
Manager would end up preparing data bases that would aid the organization to decide about the
capacity and last but not the least an operations manager would select strategies that would help
36

the organization achieve the optimum capacity levels to meet the customer demand. Capacity
decisions are important because they impact

Ability to meet future demands

Affects operating costs

Major determinant of initial costs

Involves long-term commitment

Affects competitiveness

Affects ease of management

Globalization adds complexity

Impacts long range planning

The figure below depicts the hierarchy of capacity planning decisions that can be made within a
planning and control environment. These range from long-term capacity decisions down to shortterm shop floor monitoring and control tasks:

Planning resource capacities over long time horizons.

The rough-cut evaluation of capacity required by the master production schedule.

Detailed capacity requirements of a particular production schedule.

The use of finite loading procedures.

The simulation of the use of alternate capacity plans.

Monitoring actual outputs versus plan

37

Fig. 2.5
The source of the loading data changes as you move down this hierarchy. While resource
planning takes its capacity requirements from the business plan, rough-cut capacity planning
uses the master production schedule as the source of its information. Capacity requirements
planning and the remainder of these shorter-term planning modules take their loading data from
the Material Requirements Planning output.

38

2.2.4

Factors affecting capacity planning

Product & Services factors: Type of product/services to be provided

Process: The manufacturing process Availability of Facilities: State of technology &

communications

Human factors: Skill & quality of workers

Supply factor: Timely & assured supply of inputs

External factors: Investors & government policies

2.3 Prime area: PZS group

PZS group is the group of presses where forging of high tonnage jobs are done. Few examples
are crankshaft, axle beam, connecting rods of heavy commercial vehicles etc. currently we have
5 presses in this group, they are PZS 1, PZS 2 each having blow capacities of 16000 Tf and two
TMPs with 12500 Tf and 8000Tf, and one wedge press with 10000 Tf. If we consider the
quantity, Mts, and Rml of 2014-2015-

QTY
PZS Group

1278491

Total

8609332

Mts

Rml

100354.48
14.8 %

170891.70

4556.46
58.7 %

8304.89

54.86 %

Table no. 2.1

Quantity wise PZS group constitute about 14.8 % of the total quantity, metric ton wise it
constitutes about 58.7 % and Rml wise it constitute about 54.86 % of the total.

39

2.3.1

Important parameters of presses and hammers

i) Weight rangeii) Available capacity (No./month)
iii) Average cycle time of jobs (sec)
iv) Set up time required (hrs.)

PZS presses

Weight

Available

Avg.

cycle Setup

range (kg)

capacity

time

(nos/month)

different

time OEE

of required
(hrs.)

jobs(sec)
PZS 1

53-310

25000-26000

50

1.5

65%

PZS 2

60-160

30000

53

1.25

66%

TMP 8000

36-90

30000

38

58%

TMP 12500

50-100

30000-32000

38

65%

TWP 10000

35-89

22000

40

55%

Table no. 2.2

From the table, we can conclude that the year wise capacities of the PZS group presses are
PZS I capacity: 312000/ year
PZS II capacity: 360000 / year
TMP 12500 capacity: 360000/ year
TMP 8000 capacity: 384000/ year
TWP 10000 capacity: 264000 / year
So Total Capacity of PZS group: 1680000/ year

40

3. DEMAND EVALUATION
3.1 Forecasting
Forecasting is the process of making statements about events whose actual outcomes
(typically) have not yet been observed. It is the use of historic data to determine the direction
of future trends. Forecasting is used by companies to determine how to allocate their budgets
for an upcoming period of time.
The firm must plan for the future. Planning for the future involves forecasting. No
businessman can afford to ignore forecasting if he wants to thrive and prosper in his business.
The firm has to forecast the future level of demand for its product under different possible
circumstances; such as prices, competition, promotional activities and general economic
activity. Similarly forecasting will be necessary with reference to costs under changing
conditions of availability of raw materials and their respective prices, changing technology,
wage rates, labour training and capital acquisition programs. Forecasting does play a key role
in managerial decisions and hence forecasting is emphasized in the study of managerial
economics. The objective of business forecasting is to minimize risk and the margin of
uncertainty in business
3.1.1

Forecasting methods

There are, as such, two approaches to demand forecasting. First is to obtain information
about the intentions of the spenders through collecting experts' opinion or by conducting
interviews with the consumers. Second is to use past experience as the guide and using or
projecting the past statistical relationships to obtain the expected level of future demand. The
first method is also considered to be qualitative and is mostly used for short-term forecasting;
whereas the second method is quantitative and is used for long-term forecasting. We can
forecast the demand for existing product by using any one or even mix of the above methods,
but to forecast demand for new product we have to use survey method only because the new
product has no past or historical data to offer.

41

Fig. 3.1
a.

Qualitative

Qualitative forecasting techniques are subjective, based on the opinion and judgment of
consumers, experts; appropriate when past data is not available. It is usually applied to

intermediate-long range decisions. Examples of qualitative forecasting methods are: informed

opinion and judgment, the Delphi method etc.
b. Quantitative
Quantitative forecasting models are used to estimate future demands as a function of past data;
appropriate when past data are available. The method is usually applied to short-intermediate
range decisions. Examples of quantitative forecasting methods are: simple and weighted moving
averages, simple exponential smoothing, smoothing with seasonal index, least square method
(Trend).

Forecasting the demand

We have currently the demand of 3 years i.e. 2012-13, 2013-14 and 2014-15. By using the data,
we can forecast the demand of year 2015-16. If we get the forecast of the demand, then we will
have some knowledge on what pattern it is increasing and demand of which part or dies will
42

increase more. According to that we can work on our strategy on how to increase our capacity
facility. We are using the Least Square method of forecasting.

Reason for using Trend or Least square method of forecasting

Forecasting methods are divided into quantitative and qualitative methods. In qualitative method,
experience in the field is required and is done by experts only. Among the quantitative methods,
least square method suited us the best as it requires a historical data which we have. And we can
use it to forecast future trends for up to 4-5 periods when we have data of 12 periods while other
method forecast for just 1 period only.

Working Procedure of Least Square Method

It is the best method to determine trend. Here we try to draw a straight line through the given
data satisfying maximum points on the graph. But slope of he line is sure to vary from analyst to
analyst because of judgment. Regression analysis is the mathematical method of obtaining the
best fit of line relationship between a dependent variable and a single independent variable.

Let y be demand (dependent variable) and x period for certain commodity (independent
variable). Then the linear relationship between y and x is given by :
Y=a+bx----- (1)
The value of constants a and b are obtained from following two equations:
y=na+bx----- (2)
xy=ax+bx.x------ (3)
Where,
A=constant whose value equals y intercept (i.e. height of the line from original) or y=a
where x=0.
B=slope of trend line. Positive value of b indicates upward slope i.e. growth of business
and negative value indicates negative slope.
n=number of observations.

43

Use following steps to determine a and b

i) Find time deviation (x) from certain period for each period and then find out sum of time
deviation (x).
ii) Square each time deviation and ad all squared values to get x.x.
iii) Multiply time deviation of each period (x) with corresponding actual sales for the period
(y) and then add all figures to get xy.
iv) Calculate values of a and b from following method.
At x=0, equation (2) and (3) will become
y=na--- (4)
xy=bx.x---- (5)
The above two equations can be arranged as:
a=y / n, b=xy /x.x
For example we have the following data,

Month

Product of x and y

Deviation of period

Square of

from (x) April

deviation x*x

Jan.

-3

-1,32,977

Feb.

-2

-89,340

Mar.

-1

-48,670

Apr.

May.

47,670

44

i.e. x*y

Jun.

1,11.460

Jul.

1,64,904

=7

x=0

x.x=28

xy=53043

Table no. 3.1

a=y / n
= 3, 41,827 / 7
=48,832
b=xy / x.x
=53,043 / 28
=1894
y=48,832+1894x. (A)
Trend values:
Month

Trend of y

Jan.

-3

43,150

Feb.

-2

45,044

Mar.

-1

46,938

Apr.

48,832

May.

50,726

Jun.

52,620

Jul.

54,514

Table no. 3.2

45

3.2 Demand pattern

3.2.1

Customer wise

There are around 110 different customers in total from all the groups. Below are few of the
customers with their demand pattern who come under PZS group. Here we have studied the
demand of different customers, by doing this we will know who our regular customer is and who
is ordering from us on regular bases, and whose demand is increasing.

Table no. 3.3

46

CUSTOMER WISE
7000
0
6000
0
AL(ENNOR

5000
0

E) KOEL

Qt
y 4000

ESSEN
SPARES

3000
0
2000
0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012-2013

2013-2014

2014-2015

1000
0
0

Graph No. 3.1

By this graph we can see that AL(ENCORE) has the highest demand in comparison to others, so
we can provide better customer satisfaction to them so that they continue using BFL products.
3.2.2

Part wise

There are around 36 different parts in total, we have listed few parts that are forged under PZS
group of presses. By studying this demand pattern we can understand which part has the highest
demand and higher increasing trend.

Table no. 3.4

47

PART WISE
2500
00

2000
00

F. A BEAM HCV
CRANKSHAFT 6

1500
00

THROW CON ROD

NORMAL

Qt
y 1000

F. A BEAM MCV
CRANKSHAFT 4 THROW

00

5000
0

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
2012-2013

2013-2014

2014-2015

Graph No. 3.2

By the graph we can conclude that F.A beam has the highest demand of all with variation in
demand pattern, and crankshaft 4 throw has a continuously increasing demand pattern.
3.2.3

Group wise

Here we have considered 5 groups of presses, to study their demand pattern.

Table no. 3.5

48

7000
00
6000
00
PZS

5000
00

Group

de
m
an 4000
00
d

LKM
2500
PSH Gr
Kurimot

3000
00

o
LKM 4000

2000
00

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012-2013

1000
00

2013-2014

2014-2015

Graph No. 3.3

From the graph we can see that PZS group has the highest demand compared to others.
Therefore we should focus more on PZS group and try to meet the customers requirement.
3.3 Forecasting for PZS group
As seen in the earlier graph PZS group has the highest demand, we have forecasted demand for
PZS using trend line forecasting.

Table no. 3.6

49

PZS GROUP
4000
00

y = 8383.3x +
273897

3500
00
3000
00

PZS GROUP

Qt
y 2500
00

Linear (PZS GROUP)

2000
00
1500
00

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1000
00

2013-2014

2014-2015

2015-2016

5000
0
0

Graph No. 3.4

This method gives us the equation of the linear forecast trend line, by which we can calculate the
succeeding years demand.
In the above graph the best fit line shows that the demand is continuously increasing.

50

4. CAPACITY PLANNING IN BFL

4.1 Estimate future capacity requirement
In BFL the sales department gives customer requirement for the next year through the business
plan, according to which the strategic plan is made by the PPC department.
4.1.1

Quarterly business plan

The PPC department receives the demand for the next year from the sales department.

They then compile all the data, then they prepare quarterly business plan according to
the demand.

They study the capacity of presses and designate different jobs to different presses.

The plan tells about how much quantity to be forged in which quarter, on which
press, and on which die number.

This is a forecasting method by which the PPC department can estimate the demand
and decides about the capacity planning.

51

Table No. 4.1

The above figure shows the unit sap codes which are used while preparing business plan.

In BFL the presses are divided into different groups, each group has presses with
different capacities.

Business plan for the year of 2014-2015 is given below.

52

53

This sheet shows the requirement given by the sales department for the year of 20152016, 2016-2017, on the basis of which business plan will be prepared by the PPC
department.

Table No. 4.3

4.1.2

Four monthly production plan

PPC prepares a four monthly plan on the basis of schedule provided by the sales
department.

This four monthly plan is prepared every month as the demand may vary or there may be
an excess or limited production.

First 2 months plan is fixed and last 2 month is tentative.

54

55

4.2 Evaluate existing capacity and identify gaps

Design capacity = 3600*24*30 / average cycle time
Presses under PZS group

Capacity / month

PZS 1

52897

PZS 2

48000

WEDGE PRESS

66461

12500 TMP

68210

8000 TMP

64800

TOTAL = 52897+48000+66461+64800
= 300368 / month
=3604416 / year
Effective capacity = 1680000/ year
4.2.1

Monthly capacity planning of PZS group to study gap

On the basis of demand details monthly capacity planning is done.

PPC decides how much quantity to be forged on which die number.

Then this information is given to the shop floor where cycle time, up time, number of
setups is calculated.

After actual production, the difference between the required production and actual
production is calculated which gives excess/short fall.

Utilization of the press is calculated and measures are taken to improve the utilization.

56

Capacity planning should be done in such a way that the maximum forging capacity of
the presses should be utilized.

a. PZS 2Expected vs achieved production:

PZS 2

JAN.

FEB.

MAR.

APR.

MAY

EXPECTED

23775

24405

20985

26270

26245

ACHIEVED

26239

24585

23208

24786

24812

VARIANCE

2464

180

2223

-1484

-1433

Table no. 4.5

PZS 2 has a negative variance in the month of april and march, From the month of april
we are not able to meet the expected plan, as the down time has suddenly increases in
april and may.

30000
25000
20000
EXPECT

Qt ED 15000
y
ACHIEVED
10000
5000
0
JAN.

FEB.

MAR.

Graph No. 4.1

APR.

MAY

57

JAN.

FEB.

MAR.

APR.

MAY

SET-UP

23

29

23

28

28

CY. TIME

56

57

57

56

57

DOWN TIME

368

386

330

408

412

TRIALS

UTILISATION

52 %

63 %

49 %

61 %

63 %

Table no. 4.6

b. Wedge pressExpected vs. achieved production:

WEDGE

JAN.

FEB.

MAR.

APR.

MAY

EXPECTED

13425

21500

18360

21865

22410

ACHIEVED

15753

17683

16736

14650

19371

VARIANCE

2328

-3817

-1624

-7215

-3039

PRESS

Table no. 4.7

58

25000

20000

15000

Qt
y ED 10000

EXPECT

ACHIEVED

5000

0
JAN.

FEB.

MAR.

APR.

MAY

Graph No. 4.2

In January we have achieved the expected plan, after that there is a huge gap between expected
and achieved production. The down time is increasing after January, it is also considered to have
only one trial per month but we can see there are 2, 3 trails in February, March, April which may
have led to reduction in the production.
JAN.

FEB.

MAR.

APR.

MAY

SET-UP

13

20

23

23

21

CY. TIME

38

37

39

38

41

DOWN TIME

141

220

201

232

254

TRIALS

UTILISATION

63 %

60 %

50 %

59 %

31 %

Table no. 4.8

The utilization of the equipment is also less in February; march, April and May as compared to
January. During these months there may be lots of holidays, or the press may be shut down for

maintenance purpose.
59

c.

PZS 1

Expected vs achieved production:

PZS 1

JAN.

FEB.

MAR.

APR.

MAY

EXPECTED

25250

26150

29450

25320

16900

ACHIEVED

29150

18519

25239

24536

16961

VARIANCE

3900

-7631

-4211

-784

61

Table no. 4.9

35000
30000
25000

Qt
y

20000
EXPECTED
15000

ACHIEVED

10000
5000
0
JAN.

FEB.

MAR.

APR.

MAY

Graph No. 4.3

In the month of Feb. the press is not able to achieve expected plan, the no. of setups, cycle time,
and up time has increased in February leading to reduction in forging. PZS 1 press had a planned
shutdown of 45 days leading to reduction in production.

60

FEB.

MAR.

APR.

MAY

SET-UP

26

31

25

15

CYCLE TIME

48

52

49

48

DOWN TIME

348.2

428

345.76

223

TRIALS

UTILISATION

58 %

63 %

52 %

64 %

Table no. 4.10

d. TMP 12500:

Expected vs. achieved production:

TMP 12500

JAN.

FEB.

MAR.

APR.

MAY

EXPECTED

22920

27190

25445

26275

30490

ACHIEVED

29490

26608

23762

26312

20589

VARIANCE

6570

-582

-1683

37

-9901

Table no. 4.11

61

35000
30000
25000
20000
EXPECTED

Qt
y 15000

ACHIEVED

10000
5000
0
JAN.

FEB.

MAR.

APR.

MAY

Graph No. 4.4

In the month of march there is a huge variance in the expected and achieved production, this may
be due to the no. of setups in march is more as compared to other months, the down time has also
increased from February to march and also the machine utilization has reduced in the month of
march leading to less production.

FEB.

MAR.

APR.

SET-UP

26

26

CYCLE TIME

41.32

38.83

42.06

DOWN TIME

87.22

285

286

TRIALS

UTILISATION

60.57 %

47.5 %

58.81 %

Table no. 4.12

62

e. 8000 TMP

Expected vs. achieved production:

8000 TMP

JAN.

FEB.

MAR.

APR.

MAY

EXPECTED

21920

21400

22660

25585

28915

ACHIEVED

20003

21858

23721

16521

21901

VARIANCE

-1917

458

1061

9064

-7014

Table no. 4.13

35000
30000
25000
20000
EXPECTED

Qt
y 15000

ACHIEVED

10000
5000
0
JAN.

FEB.

MAR.

APR.

MAY

Graph No. 4.5

In the graph we can see that achieved production is more than the expected plan in the month of
February, after February the variance is negative and we are not able to attain expected
production. During the month of February the utilization of press is high while in March and
63

April it has reduced. The down time, cycle time and number of setups have also increased after
Feb. leading to reduction in production.

FEB.

MAR.

APR.

SET-UP

19

20

CYCLE TIME

42

43

43

DOWN TIME

96.94

270.14

292.47

TRIALS

UTILISATION

67 %

47 %

51 %

Table no. 4.14

4.2.2

Effective Capacity vs. demand for Quarter 4 for 2013-2014

PZS PRESSES

CAPACITY

DEMAND

PZS 1

82008

105534

PZS 2

53162

63856

WEDGE PRESS

70069

76681

12500 TMP

69421

42139

8000 TMP

87996

58174

Table no. 4.15

64

120000
100000
80000
60000

CAPACITY

DEMAN

D 40000
20000
0
PZS 1
2

PZS

WEDGE 12500 TMP 8000

TMP PRESS

Graph No. 4.6

Here we can see that at PZS, PZS 2 and wedge press the demand is more than the effective
capacity whereas at 12500 TMP and 8000 TMP the capacity is more than the demand.

Future planning should be done in such a way that the increasing demand should be met
and the presses having higher capacity should be utilized in best possible way.

4.3 Planning for future

1. Balancing capacity and demand:

If there is an imbalance in the demand and the capacity in the short term then it can be
tackled by temporary measures / adjustments such as increasing / decreasing the labour
force or creating and carrying inventory in the lean period to be used up in the peak

demand period.

65

If there is an imbalance in the long term demand and the capacity then an organization
can respond by changing / modifying the capacity.
1) If capacity is short term then it can create a new facility or expand existing
facility.
2) If there is excess capacity then it can temporarily close / sell / consolidate
facilities. Consolidation can be done by relocation rearrangement of
equipments.

2. Maintaining capacity cushion:

It is the amount of the WIP that a firm maintains to handle sudden increase in demand or
temporary losses of production capacity. It is usually needed when there is uneven
demand, changing product mix, uncertain demand, and uncertain supply.
3. Ways of increasing effective capacity:

Proper process quality control so that there are less defective items requiring rework.

Proper facility location, layout, and internal working conditions.

Good training, high motivation, less absenteeism and high turnover on part of workers.

By making products and services as uniform as possible in design so that numbers of setups required are less.

Good coordination with suppliers for timely and defect-free supplies and proper
scheduling of products on machines.

By properly following the environmental and pollution norms, which results in lesser
inspections by government enforcement agencies and, thus, lesser disruption of
production activities.

66

4. Reducing the number of setups:

Planning in such a way that the numbers of setups required are minimum. While planning
the monthly production the die run size should be taken into consideration.

While selecting a certain die, one should see what the die run size is and what our
requirement is.

If the requirement is less that the run size then we should completely utilize the die till it
gets run out so that the excess forged parts can be kept in WIP and can be utilized in
future.

As changing the setups takes huge amount of time so we should try and keep the use of
different number of dies limited but the production requirement should not be
compromised.

5. Diversion of load:

When there is heavy load on a certain press this load can be transferred to some other
press which has the capacity to forge those products.

67

5. DATA ANALYSIS AND INTERPRETATION

5.1 OEE Analysis
We know that
Capacity = (time available / cycle time)* OEE
So in order to increase capacity, we have to either

Reduce the cycle time

Increase the OEE

1. Availability = available time/scheduled time

2. Performance = ideal cycle time/(operating time/total pieces)
3. Quality = good pieces/total pieces
4. OEE = availability *performance*quality

Calculation of OEE1. PZS 1-

PARAMETER

JAN

FEB

MAR

APR

RUN-HOURS

720

672

742.7

720

BREAKS / PLANNED SHUTDOWN

82.65

186.57

102.62

100.74

EFFECTIVE RUN HOURS

637.35

485.43

640.08

619.26

DOWN-TIME

239.7

212.13

248.82

236.73

DIES (Hrs.)

88.13

69.15

72.59

77.58

DIES %

13.83

14.25

11.34

12.53

OPER (Hrs.)

87.24

65.79

93.11

83.84

OPER %

13.69

13.55

14.55

13.54

EQPT (Hrs.)

57.61

32.46

61.93

50.07

EQPT %

9.04

6.69

9.68

8.09

GENERAL (Hrs.)

6.72

44.73

21.19

25.24

68

GENERAL %

1.05

9.22

3.31

4.08

UPTIME AT ACTUAL CYCLE TIME

397.65

273.3

391.26

382.53

EQUIPMENT AVAILABILITY

62.39

56.3

61.13

61.77

TOTAL PRODUCTION

29,150.00

18,519.00

25,239.00

24,536.00

OK PRODUCTION

27,824.00

17,687.00

22,360.00

23,427.00

NOT OK PRODUCTION

1,326.00

832

2,879.00

1,109.00

QUALITY RATE

95.45

95.51

88.59

95.48

ACTUAL CYCLE TIME

49.11

53.13

55.81

56.13

PLANNED CYCLE TIME

54.38

57.91

59.29

61.21

PERFORMANCE EFFICIENCY

110.74

108.99

106.23

109.06

65.95
Table no. 5.1

58.61

57.53

64.32

OVER ALL EQPT EFFECTIVENESS

2. PZS 2-

PARAMETER
RUN-HOURS
BREAKS
/
PLANNED
SHUTDOWN
EFFECTIVE RUN HOURS
DOWN-TIME
DIES (Hrs.)
DIES %
OPER (Hrs.)
OPER %
EQPT (Hrs.)
EQPT %
GENERAL (Hrs.)
GENERAL %
UPTIME AT ACTUAL CYCLE
EQUIPMENT AVAILABILITY
TOTAL PRODUCTION
OK PRODUCTION
NOT OK PRODUCTION
QUALITY RATE

JAN
718.67

FEB
655.16

MAR
697.5

APR
686

MAY
696

40.62

64.68

126.84

29.52

65.48

678.05
590.48
278.04
228.21
132.68
91.37
19.57
15.47
85.36
67.87
12.59
11.49
57.87
47.54
8.54
8.05
2.13
21.43
0.31
3.63
400.01
362.27
58.99
61.35
26,239.00 24,585.0
25,450.00 23,879.0
789
706
96.99
97.13
69

570.66
656.48
630.52
221.17
269.81
248.49
85.6
114.29
100.17
15
17.41
15.89
62.86
84.17
81.49
11.02
12.82
12.92
51.05
60.36
55.66
8.95
9.19
8.83
21.66
10.99
11.17
3.8
1.67
1.77
349.49
386.67
382.03
61.24
58.9
60.59
23,208.0 24,786.0 24,812.0
20,295.0 24,006.0 24,022.00
2,913.00
780
790
87.45
96.85
96.82

ACTUAL CYCLE TIME

54.88

53.05

54.21

56.16

55.43

PLANNED CYCLE TIME

PERFORMANCE EFFICIENCY
OEE

55.34
53.8
100.84
101.41
57.7
60.43
Table no. 5.2

55.17
101.76
54.5

56.23
100.12
57.12

55.84
100.74
59.09

3. TMP 8000-

PARAMETER

JAN

FEB

MAR

APR

MAY

RUN-HOURS
BREAKS
PLANNEDSHUTDOWN
EFFECTIVE RUN HOURS

645

545

634

583

559

157.09

107.67

133.2

180.64

44.82

487.91

437.33

500.8

402.36

514.18

DOWN-TIME

260.64

186.73

227.15

219.59

262.91

DIES (Hrs.)

54.06

45.46

58.3

37.16

40.98

DIES %

11.08

10.4

11.64

9.24

7.97

OPER (Hrs.)

42.65

43.25

42.08

30.11

48.52

OPER %

8.74

9.89

8.4

7.48

9.44

EQPT (Hrs.)

123.37

62.71

89.06

117.1

121.05

EQPT %

25.29

14.34

17.78

29.1

23.54

GENERAL (Hrs.)

40.56

35.31

37.71

35.22

52.36

GENERAL %

8.31

8.07

7.53

8.75

10.18

UPTIME AT ACTUAL CYCLE

227.27

250.6

273.65

182.77

251.27

EQUIPMENT AVAILABILITY

46.58

57.3

54.64

45.42

48.87

TOTAL PRODUCTION

20,003

21,858

23,721

16,521

21,901

OK PRODUCTION

18,847.00 21,373.00 21,526.00 15,407.00

NOT OK PRODUCTION

1,156.00

485

2,195.00

1,114.00

560

QUALITY RATE

94.22

97.78

90.75

93.26

97.44

ACTUAL CYCLE TIME

40.9

41.27

41.53

39.83

41.3

PLANNED CYCLE TIME

40.9

41.3

41.51

39.82

41.26

PERFORMANCE EFFICIENCY

100

100.07

99.96

100

99.89

43.89
56.07
Table no. 5.3

49.57

42.36

47.57

OEE

70

21,341

4. TMP 12500-

PARAMETER

JAN

FEB

MAR

APR

MAY

RUN-HOURS

645

583

648

590

566

72.78

80.28

143.04

36.31

46.12

EFFECTIVE RUN HOURS

572.22

502.72

504.96

553.69

519.88

DOWN-TIME

258.51

208.23

246.19

255.25

289.44

DIES (Hrs.)

85.65

75.86

75.9

85.19

69.86

DIES %

14.97

15.09

15.03

15.39

13.44

OPER (Hrs.)

75.17

67.88

78.29

101.44

72.29

OPER %

13.14

13.5

15.5

18.32

13.91

EQPT (Hrs.)

61.38

28.9

79.08

47.65

98.15

EQPT %

10.73

5.75

15.66

8.61

18.88

GENERAL (Hrs.)

36.31

35.59

12.92

20.97

49.14

GENERAL %
UPTIME AT ACTUAL CYCLE
TIME

6.35

7.08

2.56

3.79

9.45

313.71

294.49

258.77

298.44

230.44

54.82

58.58

51.25

53.9

44.33

TOTAL PRODUCTION

29,490.00

26,608

23,762

26,312

20,589

OK PRODUCTION

28,686.00

25,958

22,742

25,625

19,899.00

804

650

1,020.00

687

690

QUALITY RATE

97.27

97.56

95.71

97.39

96.65

ACTUAL CYCLE TIME

38.3

39.84

39.2

40.83

40.29

PLANNED CYCLE TIME

38.52

39.84

39.2

40.82

40.2

PERFORMANCE EFFICIENCY

100.58

99.99

100

99.98

99.78

OEE

53.64
57.14
Table no. 5.4

49.05

52.48

42.75

BREAKS
/
SHUTDOWN

PLANNED

EQUIPMENT AVAILABILITY

NOT OK PRODUCTION

71

5. Wedge pressPARAMETER

JAN

FEB

MAR

APR

MAY

RUN-HOURS

529

387.5

435.5

407

496.5

BREAKS
/
PLANNED
SHUTDOWN
EFFECTIVE RUN HOURS

217.21

74.84

93.94

77.31

49.73

311.79

312.66

341.56

329.69

446.73

DOWN-TIME

151.47

153.19

169.62

178.86

233.07

DIES (Hrs.)

53.55

33.77

35.5

53.25

77.04

DIES %

17.18

10.8

10.39

16.15

17.24

OPER (Hrs.)

52.36

38

43.51

41.66

81.71

OPER %

16.79

12.15

12.71

12.64

18.29

EQPT (Hrs.)

32.77

26.58

26.3

24.21

31.17

EQPT %

10.51

8.5

7.7

7.34

6.98

GENERAL (Hrs.)

12.79

54.84

64.31

59.74

43.15

4.1

17.54

18.83

18.12

9.66

160.32

159.47

171.94

150.83

213.7

51.42

51

50.34

45.75

47.83

1,15,753.0
0
15,317.00

17,683.0
0
17,302

16,736.0
0
16,149

14,650.0
0
14,046

19,373.0
0
18,555

436

381

587.00

604

818

QUALITY RATE

97.23

97.85

96.49

95.88

95.78

ACTUAL CYCLE TIME

36.64

32.47

36.99

37.06

39.71

PLANNED CYCLE TIME

34.58

33.25

35.01

35.26

39.49

PERFORMANCE EFFICIENCY

94.39

102.41

94.65

95.13

99.11

OEE

47.19

51.11

45.98

41.73

46.07

GENERAL %
UPTIME AT ACTUAL CYCLE
TIME
EQUIPMENT AVAILABILITY
TOTAL PRODUCTION
OK PRODUCTION
NOT OK PRODUCTION

Table No. 5.5

At BFL among the three factors availability has a huge scope of improving.
Available time = scheduled time down time
So, if we reduce the downtime the available time increases and hence the OEE.
72

One of the main factors affecting OEE is availability; availability can be increased by reducing
the downtime. Mainly there are 4 types of downtime they are due to:

Operation

Dies

Equipment

General
Few of the reasons for downtime on PZS 2 are-

I.

Downtime due to operations include

Setup

Mismatch correction
Heat symbol changes
II.

Downtime due to dies include

Die grinding

Adjustments

Insert not available, Insert change.

Padding dies grinding / welding

Butting block crack / budge / change

Die crack matching

Pad shift correction

PZS dies sent to die shop for correction

Die crack matching / land drop

Job sticking.

Backup dies not available.

III.

Downtime due to equipment include

PZS lower cassette not clamping

PZS ram not moving up/down

F/C waiting for soaking.

73

PZS lubrication countdown.

F/C 3rd zone temperature not increasing

IV.

Downtime due to general

Planned shutdown.

Scale pit problem

Trial production.

S/D - Descaler Leakage.

S/D - Furnace.

Reduce roll trials

Back up dies not available

5.2 Pareto chart for major downtimes

We can use pareto analysis to identify the top portion of causes that need to be addressed to
resolve the majority of problems, the idea that by doing 20% of the work you can generate
80% of the benefit of doing the entire job. If we take PZS 2 press line and study all the
reasons for downtime, for the month of January, February, march, April and May. In PZS 2
the major downtime occurs due to dies and then operations.
1. Due to operation downtime-

Sr. No.

Reasons

Frequency Cumulative Percentage

Frequency

Setup Actual

74

74

61

Heat Symbol Changes

22

96

79

Mismatch Correction

18

114

94

Double loading

116

95

Quality Checking

118

97

Dropout reprocessing

120

99

74

PZS bottom cassette not

121

100

declamping
Total

121
Table no. 5.6

120
100
80
60
40
20

Series1

Series2

Graph No. 5.1

Here we can see that setup actual and heat symbol changes are close to 80 % therefore
these two reasons should be addressed first.

PZS 2 has automated setup change mechanism, so downtime cannot be reduced over
there. But we can utilize the die until it wears out i.e. we can forge parts on that die until
the die run size is attained.

If the plan is short for this month for e.g. Die no. 3768- plan is 600 parts but the run size
is 1500 then we should forge 1500 parts at a time so that the rest could be used in the next
month and be kept as WIP. This will reduce the time required for die change.

75

2. Due to dies

Sr. No.

Reasons

Frequency Cumulative

Percentage

Frequency
1

PZS die grinding

34

34

48

Correction

10

44

62

Die crack matching

51

72

Butting block crack/change/

56

80

bulge
5

Insert not available

60

85

padding dies grinding

64

91

Insert change

67

95

Blow holes weld / repair

70

100

Total

70
Table no. 5.7

120
100
80
60
40
20
Frequenc
y
Percenta
ge
0

Graph No. 5.2

76

Here we can see that PZS die grinding, corrections, die crack matching and butting block
crack should be targeted first and planning should be done for these so that in future
downtime due to these reasons reduce.

To reduce the downtime for die grinding the dies nitriding should be done on the dies
before loading on the press.

If the die is nitrided then it works without grinding for around 1000 pieces, whereas if the
die is not nitride it has to be grinded after 150-200 pieces.

77

6. SUGGESTIONS
We have seen that the demand has been increasing and mostly the demand of parts which are
generally forged in presses of PZS group is increasing. So, we have to focus on how we can
increase the Capacity of the group.
For increasing the current capacity utilization, we have to look into 2 things-Cycle time and
OEE. Among the OEE factors, Availability is the most important one in BFL. To increase the
Availability, we have to reduce the downtime of machine. Also to increase capacity, we have to
try and decrease our cycle time.
We can decrease the cycle time by:

Continuous improvement of the way to do various operations.

Continuous implementation of 5S.

Changes in the production line.

Installation of more efficient supporting machines.

Downtime occurs mainly due to Die failure, Die wear, Oil Leakage, Mismatch etc.
This can be checked by

Using better quality die materials.

Better design of dies.

Regular preventive maintenance of the machines.

We have prepared a checklist table for the preventive maintenance which can be done daily or at
the start of every shift. As we know Preventive Maintenance is much better than Breakdown
maintenance and is cost effective also, we should dedicate some time for the inspections every
day before the start of each shift.

78

5.1 Checklist of the Preventive maintenance

Sl.

Check list item

Remarks

No.
1

Check hydraulic lines and fitting for leaks.

Check the oil level and if necessary top it off.

Ensure oil cleanliness.

Check the oil temperature.

Check for loose bolts around the tooling area and

fasten it.

Check lubrication on guided platens.

Check the ram whether it is moist but not dripping oil.

Check for wear and tear in the die.

Check for cracks in the die.

10

Check all lights and alarms for proper functioning.

11

Inspect all safety covers and connections.

12

Record press data.

Table no. 6.1
5.2 Adjustment to capacity
1. Increase capacity by:
As the demand is increasing and we are not able to meet the needs of the customer due to
less capacity, therefore we can increase the capacity by:

Adding extra shifts.

Scheduling overtime or weekends.

79

Adding equipment and/or personnel.

2. Reduce load by:

Sometimes, there is a huge load on a certain press line but that press line may not be
capable of handling that load so we can:

Reducing lot sizes.

Holding work in production control.

Subcontracting work to outside suppliers.

3. Reduce capacity by:

In few cases like TMP 8000 and 12500 where the capacity is more than demand here we
can adjust capacity by:

Temporarily reassigning staff.

Reducing the number of shifts.

Eliminating shifts.

4. Increase load by:

The presses like TMP 8000 and TMP 12500 which are having more capacity but the load
given is less, we can utilize the capacity by:

Releasing orders early.

Increasing lot sizes.

Making items normally outsourced.

80

5.3 Capacity planning strategies

There are mainly 3 capacity planning strategies:
1. Lead strategy is adding capacity in anticipation of an increase in demand. It is an
aggressive strategy and used to lure customers away from competitors. The possible
disadvantage is that it is often results in excess inventory, which is costly and often
wasteful.

Fig.6.1
2. Lag strategy is a conservative strategy; here capacity is increased after demand has
increased. It decreases the risk of wastage but may result in loss of customer.
3. Match strategy is adding capacity in small amounts in response to changing demand in
the market. It is also known as tracking strategy.
Suggested strategy- I would suggest match strategy as it will not affect the company if a
sector suffers global downturn.

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7. REFERENCES
1. www.bharatforge .com
2. www.oee.com
3. www.forging.org
4. www.teamquest.com
5. Handbook of Industrial Engineering: Technology and Operations Management, Third
Edition
6. www.slideshare.net/aarish9696/capacity-planning
7. www.wikipedia.org/wiki/Capacity_planning

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