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Name of the Company visited: Year of starting the plant: Employee Strength:

Larsen & Toubro Limited (L&T), Coimbatore October 2007 300(including insourcing and outsourcing) 26

Employee Strength in the unit under study: Units included in the plant: Precision machining centre Petroleum dispensing pumps facility

Objective of the plant: The objective of setting up this precision machining centre is to create additional capacity to cater to the growing needs of high precision and high quality tooling for L&Ts electrical and electronics business and precision machined components for heavy engineering business. The precision machining centre is intended to be developed as a business unit and expanded into high precision specialty product lines to become a preferred supplier to a select companies with global presence. Products manufactured: L&T offers design, manufacture and supply of components, subsystems and systems for aerospace applications. L&Ts precision manufacturing facilities are geared to meet the exacting demands of aerospace manufacture. State-of-the-art facilities give L&T the capability to achieve high accuracy levels in the manufacture of systems and subsystems of satellites and launch vehicles in metals and in advanced composites. L&T carries out in-house development of welding procedures for exotic materials and special machining processes for space application. L&Ts range includes rocket motor casings, convergent and divergent nozzles, titanium gas bottles for liquid stages, titanium tanks for liquid upper stages for launch vehicles; solar array deployment mechanisms for satellites; and jigs and fixtures for critical applications. L&T is gearing up for larger participation in space programs and for manufacture of sub-assemblies, systems and sub-systems for aircraft. L&Ts Coimbatore Campus specializes in precision-engineered systems and components nuclear, for the aerospace and defence sectors. The workshops are designed to manufacture Nuclear control rod drive mechanisms, Fuel handling systems and Coolant channels apart from aerospace components.

Layout of the Aerospace components manufacturing unit: L&T, Coimbatore takes no part in designing the product or in the selection of raw material. It receives the complete product design along with raw material from its customer and works in mass production manufacturing environment. The unit under study employees cellular manufacturing with product design module.

Cellular Manufacturing is based upon the principals of Group Technology and Lean manufacturing, which seeks to take full advantage of the similarity between parts, through standardization and common processing. In Functional Manufacturing similar machines are placed close together (e.g. lathes, millers, drills etc.). Functional layouts are more robust to machine breakdowns, have common jigs and fixtures in the same area and supports high levels of demarcation. In Cellular Manufacturing systems machines are grouped together according to the families of parts produced. The major advantage is that material flow is significantly improved, which reduces the distance travelled by materials, inventory and cumulative lead times. This layout consists of two phases. Phase 1: Welding/Heat treatment/Thermoforming: Tungsten Inert Gas Automated welding machines are grouped together and is used for welding Titanium & Titanium alloys and Maraging steel. The welded components are then subjected to heat treatment processes to improve its properties. Six electric furnaces are employed for heat treatment. Phase 2: Assembly line: In this phase, Full kitting strategy is employed. Kitting involves the gathering of all the parts needed for a particular assembly from the stockroom and issuing the kit to the manufacturing line at the right time and in the right quantity. Component kitting allows for manufacturing companies to reduce the supplier base and the total cost of purchase yet still maintain full control of the manufacturing process. Kitting outsources the supply process and ensures that a complete kit of assembly ready components are delivered on time and ready for manufacture. 100% Inspection takes place at each and every stage of the production.

The CNC zone in Precision Machining Centre (PMC): L&T has in place extensive manufacturing infrastructure to ensure that world-class designs are transformed into high-performance products. 5-axis machining centres CNC VTLs with table dia up to 4m CNC rotary surface grinding machines

Description of 5 axis CNC machining centre in Precision Machining Centre (PMC): The ability of a CNC machine to move a part or a tool on five different axes at the same time is permissible in 5 axis CNC machining centre. 3-axis machining centers move a part in two directions (X and Y), and the tool moves up and down (Z). 5-Axis machining centers access two additional rotary axes. Here, Makino MCD-Series of 5-axis machines (x,y,z,a,b) are designed for machining hard metals such as stainless steels and titanium for aerospace industry and other complex applications. These trunnion-style machines are supported by box ways, high-torque spindles and dual-driven rotary

axes. It has wheel type tool magazine attached to its periphery and employs fork- shaped arm for automatic tool changing. This automated arm plugs the desired tool from magazine moves towards spindle, unplugs the current tool from spindle, and performs a 180 rotation and plug in the desired tool into the spindle. Here, turning, milling, and drilling operations are performed. New technologies and innovation adopted: Automatic TIG Welding Machine: L&T is the first company in India to employee Automatic TIG Welding Machine. Automatic TIG welding is a controlled, repeatable process that provides consistent, high quality TIG welds. It simplifies welding, boosts productivity and provides you with the ability to have operator perform other tasks while monitoring the welding process. Except loading and unloading, the entire process is automated. Here, CAM- VWT Vertical TIG Welder is employed. Single Point Sourcing: With almost all major EPC players and process licensors qualifying L&T for critical equipment to the hydrocarbon industry, L&T has become a single point source for hi-tech products. L&T's Heavy Engineering is a preferred supplier of equipment, globally. Operating at the upper end of the technology spectrum, L&T Heavy Engineering has, for over six decades, been at the forefront of introducing new processes, products and materials into the manufacturing sector. Its state-of-the art manufacturing facilities are capable of meeting the challenges of technology, quality conformance and delivery, while ensuring cost competitiveness. The state-of-the-art manufacturing facilities has established a reputation in global markets for manufacture and supply of custom designed and engineered critical equipment and systems to the needs of hydrocarbon industry be it Oil & Gas, Refinery, Petrochemical, Fertilizers, etc. Each workshop has in-house engineering, global procurement and supply chain management, project management and logistics cell to supply equipment and systems meeting customer requirements. Vendor Based Inventory: L&T is the first company in India to employee VMI With VMI, the vendor specifies delivery quantities sent to L&T through the distribution channel using data obtained from Electronic Data Interchange (EDI), thereby making the entire transaction transparent. Vendor Managed Inventory or VMI is a process where the vendor creates orders for their customers based on demand information that they receive from the customer. The vendor and customer are bound by an agreement which determines inventory levels, fill rates and costs. This arrangement can improve supply chain performance but reducing inventories and eliminating stock-out situations. In-sourcing: L&T employees Insourcing strategy by which their partners are delegated to bring in their people and machines and work in the space provided by L&T. The entire investment is made by the partners except for the space provided by L&T.

Conclusion: L&T, Coimbatore thus proved to be worthy of its trademark- Larsen & Toubro valves manufacturing unit in Coimbatore, India, is a state-of-the-art facility that focuses on high-end valves for nuclear, power and offshore segments. The unit is part of L&Ts 300-acre high-tech manufacturing hub that houses technology and product development centres as well as manufacturing facilities. Signature Of Student:

Name of the Company visited: Year of starting the plant: Employee Strength:

Larsen & Toubro Limited (L&T), Coimbatore October 2007 300(including insourcing and outsourcing) 26

Employee Strength in the unit under study: Units included in the plant: Precision machining centre Petroleum dispensing pumps facility

Objective of the plant: The objective of setting up this precision machining centre is to create additional capacity to cater to the growing needs of high precision and high quality tooling for L&Ts electrical and electronics business and precision machined components for heavy engineering business. The precision machining centre is intended to be developed as a business unit and expanded into high precision specialty product lines to become a preferred supplier to a select companies with global presence. Products manufactured: L&T offers design, manufacture and supply of components, subsystems and systems for aerospace applications. L&Ts precision manufacturing facilities are geared to meet the exacting demands of aerospace manufacture. State-of-the-art facilities give L&T the capability to achieve high accuracy levels in the manufacture of systems and subsystems of satellites and launch vehicles in metals and in advanced composites. L&T carries out in-house development of welding procedures for exotic materials and special machining processes for space application. L&Ts range includes rocket motor casings, convergent and divergent nozzles, titanium gas bottles for liquid stages, titanium tanks for liquid upper stages for launch vehicles; solar array deployment mechanisms for satellites; and jigs and fixtures for critical applications. L&T is gearing up for larger participation in space programs and for manufacture of sub-assemblies, systems and sub-systems for aircraft. L&Ts Coimbatore Campus specializes in precision-engineered systems and components nuclear, for the aerospace and defence sectors. The workshops are designed to manufacture Nuclear control rod drive mechanisms, Fuel handling systems and

Coolant channels apart from aerospace components.

Layout of the Aerospace components manufacturing unit: L&T, Coimbatore takes no part in designing the product or in the selection of raw material. It receives the complete product design along with raw material from its customer and works in mass production manufacturing environment. The unit under study employees cellular manufacturing with product design module. Cellular Manufacturing is based upon the principals of Group Technology and Lean manufacturing, which seeks to take full advantage of the similarity between parts, through standardization and common processing. In Functional Manufacturing similar machines are placed close together (e.g. lathes, millers, drills etc.). Functional layouts are more robust to machine breakdowns, have common jigs and fixtures in the same area and supports high levels of demarcation. In Cellular Manufacturing systems machines are grouped together according to the families of parts produced. The major advantage is that material flow is significantly improved, which reduces the distance travelled by materials, inventory and cumulative lead times. This layout consists of two phases. Phase 1: Welding/Heat treatment/Thermoforming: Tungsten Inert Gas Automated welding machines are grouped together and is used for welding Titanium & Titanium alloys and Maraging steel. The welded components are then subjected to heat treatment processes to improve its properties. Six electric furnaces are employed for heat treatment. Phase 2: Assembly line: In this phase, Full kitting strategy is employed. Kitting involves the gathering of all the parts needed for a particular assembly from the stockroom and issuing the kit to the manufacturing line at the right time and in the right quantity. Component kitting allows for manufacturing companies to reduce the supplier base and the total cost of purchase yet still maintain full control of the manufacturing process. Kitting outsources the supply process and ensures that a complete kit of assembly ready components are delivered on time and ready for manufacture. 100% Inspection takes place at each and every stage of the production.

The CNC zone in Precision Machining Centre (PMC): L&T has in place extensive manufacturing infrastructure to ensure that world-class designs are transformed into high-performance products. 5-axis machining centres CNC VTLs with table dia up to 4m CNC rotary surface grinding machines

Description of 5 axis CNC machining centre in Precision Machining Centre (PMC): The ability of a CNC machine to move a part or a tool on five different axes at the same time is permissible in 5 axis CNC machining centre. 3-axis machining centers move a part in two directions (X and Y), and the tool moves up and down (Z). 5-Axis machining centers access two additional rotary axes. Here, Makino MCD-Series of 5-axis machines (x,y,z,a,b) are designed for machining hard metals such as stainless steels and titanium for aerospace industry and other complex applications. These trunnion-style machines are supported by box ways, high-torque spindles and dual-driven rotary axes. It has wheel type tool magazine attached to its periphery and employs fork- shaped arm for automatic tool changing. This automated arm plugs the desired tool from magazine moves towards spindle, unplugs the current tool from spindle, and performs a 180 rotation and plug in the desired tool into the spindle. Here, turning, milling, and drilling operations are performed. New technologies and innovation adopted: Automatic TIG Welding Machine: L&T is the first company in India to employee Automatic TIG Welding Machine. Automatic TIG welding is a controlled, repeatable process that provides consistent, high quality TIG welds. It simplifies welding, boosts productivity and provides you with the ability to have operator perform other tasks while monitoring the welding process. Except loading and unloading, the entire process is automated. Here, CAM- VWT Vertical TIG Welder is employed. Single Point Sourcing: With almost all major EPC players and process licensors qualifying L&T for critical equipment to the hydrocarbon industry, L&T has become a single point source for hi-tech products. L&T's Heavy Engineering is a preferred supplier of equipment, globally. Operating at the upper end of the technology spectrum, L&T Heavy Engineering has, for over six decades, been at the forefront of introducing new processes, products and materials into the manufacturing sector. Its state-of-the art manufacturing facilities are capable of meeting the challenges of technology, quality conformance and delivery, while ensuring cost competitiveness. The state-of-the-art manufacturing facilities has established a reputation in global markets for manufacture and supply of custom designed and engineered critical equipment and systems to the needs of hydrocarbon industry be it Oil & Gas, Refinery, Petrochemical, Fertilizers, etc. Each workshop has in-house engineering, global procurement and supply chain management, project management and logistics cell to supply equipment and systems meeting customer requirements. Vendor Based Inventory: L&T is the first company in India to employee VMI With VMI, the vendor specifies delivery quantities sent to L&T through the distribution channel using data obtained from Electronic Data Interchange (EDI), thereby making the entire transaction transparent.

Vendor Managed Inventory or VMI is a process where the vendor creates orders for their customers based on demand information that they receive from the customer. The vendor and customer are bound by an agreement which determines inventory levels, fill rates and costs. This arrangement can improve supply chain performance but reducing inventories and eliminating stock-out situations. In-sourcing: L&T employees Insourcing strategy by which their partners are delegated to bring in their people and machines and work in the space provided by L&T. The entire investment is made by the partners except for the space provided by L&T. Conclusion: L&T, Coimbatore thus proved to be worthy of its trademark- Larsen & Toubro valves manufacturing unit in Coimbatore, India, is a state-of-the-art facility that focuses on high-end valves for nuclear, power and offshore segments. The unit is part of L&Ts 300-acre high-tech manufacturing hub that houses technology and product development centres as well as manufacturing facilities. Signature Of Student: