2008

HITEC University Taxila

Department of Electrical Engineering

APC Factory, HIT Taxila Cantt.

Performance Measurement of
Security Vehicle MUHAFIZ

1/8/2008

Written By:
Nisar Ahmed Rana
Supervised By:
nisarahmedrana@yahoo.com Col. (Retd) Syed Irshad
Sheikh Muhammad Arshad Ali
Introduction and Background

APC FACTORY is one of the most important Public Sector Manufacturing Organization of
Pakistan. It manufactures Security Vehicles (MUHAFIZ) which is used for security purposes.
It is also exported. The main customers of the security vehicle are law enforcement
agencies.

This case study was conducted at Security Vehicle (MUHAFIZ) in the year 2008. MUHAFIZ is
one the most important products of the factory. The purpose of this report was the
performance measurement of the Security Vehicle (MUHAFIZ) as well as enhancing the
productivity. At the time of the study factory employed 396 employees and had turnover
around 90 million rupees per year. In the case study different drawbacks were also
discussed which are the hurdles in the product improvement. During a survey a structured
interview of the supervisor and some workers is carried out. Direct observation of
manufacturing plant is also carried out in a visit of two days.

Objective and Methods

This case study was initiated in order to further develop and validate the performance
measurement methods. In this case study the APC has specified five major objectives to be
reached within the following years.
 Productivity: Increase the output from production process.
 Reliability: Make the product more reliable for customer.
 Efficiency: Increase the effectiveness of the product.
 Quality: Deliver product to the right quality and high degree of excellence.
 Flexibility: Ability to handle a large number of variations.

In this case study we have used balanced scorecard as well as overall equipment
effectiveness. Since OEE stresses on internal business process, but balanced scorecard deals
internal as well as external business perspectives. Balanced scorecard is used to handle four
perspectives i.e. (Financial, Customer, Inter business process and learning and growth). OEE
is used as a key performance indicator in internal business process perspective. One of the
decisions was to study the whole manufacturing process of security vehicle.
Security Vehicle (MUHAFIZ)

The leading product of APC FACTORY is Security Vehicle (MUHAFIZ) which was developed on
to the chassis of the Toyota Land Cruiser as well as on Land Rover. MUHAFIZ is Bullet proof
vehicle used for security purpose. A prototype Security Vehicle (MUHAFIZ) was successfully
developed indigenously by APC FACTORY and displayed in IDEAS-2000 International
Exhibition at Karachi between 14 to17 Nov 2000.The report of which is also published in
JANES. Then it was handed over to the Pakistan Rangers for trials in the year 2000.

The Production processes of Cutting Routing and Drilling in CRD Shop started in month of
Sep 2003 for the first 10 x vehicles batch production with the help of basic cutting machine
Sewage Saw, after cutting the aluminum plates rather cutting them into different size
according to the drawings specifications. In fact job of these machines is to cut the
aluminum plates into sizes and prepare these sheets to be used for next process of
computer numeric control machines. In CRD Shop certain parts are manufactured on
machine called Router which is dedicated for profile cutting.

The manufacturing of hull or upper body mounted on chassis is responsibility of Fabrication

Shop. The first step is fixing of bottom plate on chassis of any vehicle. The 2 nd step pertains
to engine compartment as shown in the diagram. Different parts of engine compartment
are welded to make a single module or frame. Since Security Vehicle (MUHAFIZ) hull or main
body consist of lower and upper hull plates, these plates are welded in two steps.

In first step lower portion of hull (two plates) is welded with lower frame of body and in 2 nd
step upper portion of hull (Again two plates) is welded fitted with lower hull. After fitment
welding of lower hull (Set plates) with upper hull the preparation of final hull is completed
and complete body or hull is ready to go through a chemical treatment of surface treatment
shop, here 2nd production processes Phase II finishes before it is handed over to Assembly
line.

The main body or hull is now ready for fitment of all minor major assemblies in the following
sequence in assembly shop.
a. Fitment of dash board
b. Fixing of Minor Assemblies e.g. Brakes, Clutch, Air Condition.
c. Fixing of Interior e.g. Upholstery, Lights.
d. Fixing of Turrets.
e. Fixing of Bullet Proof Glasses.
f. Fixing of Bullet Proof Tires.
The Vehicle after Paint Shop is sent for mobility test for, which they further carryout 50 Km
run called mobility test.
The product Security Vehicle (MUHAFIZ) till now has been manufactured on two versions i.e.
Chassis of Land Rover and Land Cruiser indigenously and proven very cost effective since the
import price was very high.
The specifications of the MUHAFIZ vehicle are given below.

The length of the MUHAFIZ vehicle is 4.32 m (170"). The width and height of this vehicle is
1.63 meter (64") and 2.03 meter (80") respectively. The minimum turning radius of
PRODUCT - II is 6.6 M and ground clearance is 200 MM.

The Engine used is MUHAFIZ has four cylinders inline 83 KW (111 HP at 4000 RPM). The
vehicle has 5F, 1R (manual) (4WD). It has heavy duty suspension. The tires used in MUHAFIZ
are run flat. These tires are bullet proof.

MUHAFIZ has power steering. It has 12 volt DC battery which produces 65 ampere current.
The body of the vehicle made from Aluminum Armor. Its aluminum alloys structures can be
used again or can be modified. Inside the vehicle seat belts are available for driver and
commander. All the glasses used in MUHAFIZ are bullet proof.

It gives protection against 7.62 MM all around. In short Security Vehicle MUHAFIZ is a
armored Car with both Bullet Proof Screen and tires It has six firing ports. Siren and Search
light also available in MUHAFIZ vehicle. It has rotating gunner shield. Spring actuated bonnet
used in this vehicle. It has lifting and towing hooks. First aid box and PA equipment are also
standard facilities of MUHAFIZ vehicle. Some optional facilities are also available in
MUHAFIZ vehicle such as communication system, weapon system and Air condition etc.

Application of Balanced Score Card in Special Vehicle

The Balanced Scorecard (BSC) began as a concept for measuring whether the smaller-scale
operational activities of a company are aligned with its larger-scale objectives in terms of
vision and strategy. The balanced scorecard has evolved from its early use as a simple
performance measurement framework to a full strategic planning and management system.

The balanced scorecard suggests that we view the organization from four perspectives and
analyze them.

The Learning & Growth Perspective

This perspective includes employee training and corporate cultural attitudes related to both
individual and corporate self-improvement. In a knowledge-worker organization, like a
factory of Armored Vehicles (Security Vehicle MUHAFIZ) were people the only repository of
knowledge are the main resource. In the current climate of rapid technological change, it is
becoming necessary for knowledge workers to be in a continuous learning mode.
Government agencies such as APC FACTORY often find themselves unable to hire new
technical workers, and at the same time there is a decline in training of existing employees.
This is a leading indicator of 'brain drain' that must be reversed. In any case, learning and
growth constitute the essential foundation for success of any knowledge-worker
organization.

Improvement of quality is the most successful factor of any production unit, but in case of
security vehicle MUHAFIZ certain quality points require improvement. Initially the gross
vehicle weight of the security vehicle was heavy and its height was also high. Since
maximum allowed gross vehicle weight is 3.5 tons so light armored steel was used to reduce
its gross vehicle weight. Also its height was reduced to improve its balance and speed after
getting feedback from the user.

Turret was also improved. In turret bullet proof glasses has been fitted. Exhaust fan has
been also fitted In case any dust from out side. Air conditioned of the vehicles has been also
improved. Lock of doors also has been improved. Grills are used in front of bullet proof
glasses to save from stones.

Since APC FACTORY claim that they are customized but from quality point of view following
need attention. The best way is to achieve this by lowering the price without compromising
on quality. The specifications provided by the customer have been catered for but following
things from quality point of view can be improved.

 Upholstery of inside vehicle.

 Air condition system and exhaust should be improved.
 The size and weight of gunner shield.
 Dash board.
Learning and growth process is successfully going on in the factory. There is some need of
training of existing employee. After getting feedback from user continuous improvements
are being made in manufacturing process. Special attention is need for existing employees.

The Customer Perspective

Recent management philosophy has shown an increasing realization of the importance of

customer focus and customer satisfaction in any business. These are leading indicators: if
customers are not satisfied, they will eventually find other suppliers that will meet their
needs. Poor performance from this perspective is thus a leading indicator of future decline,
even though the current financial picture may look good.

The main customer of security vehicles are law enforcement agencies. They demanded for
security vehicles. At the same time the vehicle has been internationally accepted and has
been appeared in JANES Magazine. The main consideration while it's manufacturing is that it
should be user friendly. This factor was achieved when first vehicle was manufactured; it
was handed over to user. The ruthless trials were carried out by the user and then vehicle
was approved to be inducted as recognized vehicles of government of Pakistan.

From year 2000 after completion of first vehicle till 2008 series of modifications and
improvement were carried out after getting feedback from the user. The height and weight
of the vehicle was reduced to improve its balance and increase its speed.
The Financial Perspective

MUHAFIZ vehicle is almost one third of the price of imported security vehicles. Initially the
vehicle was totally manufactured by Aluminum alloy. Since Aluminum alloy's cost was
expensive and it has been imported. With a new hybrid combination and induction of steel
for manufacturing turret, top plate right, left and rare doors the gross vehicle weight is
reasonably reduced. Also height of the vehicle is also reduced to make it more stable. This
whole process has decreased the cost. At the same time the model has been improved.

With the replacement of Aluminum alloy of doors and top plate with steel the cost of per
vehicle is also reduced. Original cost of the vehicle was 10 million. New cost of the vehicle is
9.97 million. The reduction of the cost is due to low price of steel plates. Also over head
charges (i.e. wages, electricity, CRD shop charges) are also reduced so cost effectiveness is:-

The overhead charges has been lowered because all machine work of CRD shop for
manufacturing doors, turret and top plate and manpower working has been saved. With the
reduction in electricity charges, payment of workers and material cost the input cost for
security vehicle is reduced with the improvement of model.

The Internal Business Process Perspective

This perspective refers to internal business processes. Metrics based on this perspective
allow the managers to know how well their business is running, and whether its products
and services conform to customer requirements (the mission). These metrics have to be
carefully designed by those who know these processes most intimately; with our unique
missions these are not something that can be developed by outside consultants.
Manufacturing Process

The manufacturing of vehicles is completed in five different shops name of the shops and
detail of manufacturing process is provided below.

 Cutting routing & drilling (CRD) shop

 Fabrication (FAB) shop
 Surface Treatment shop
 Plasma Cutting Shop
 Assembly shop

Now we shall explain the whole process of each shop respectively.

The shift length in APC FACTORY is 8 hours. There is one meal break of 30 minutes. No short
break is allowed to workers. First of all material received from ware house and the process
started. Sheets of Aluminum Alloy are supplied by Pakistan Steel Mill Karachi. Ballistic Steel
used in security vehicles came from abroad. MUHAFIZ is built mainly on the chassis of local
vehicle, already in use by agencies. Chassis for security vehicles is supplied by Sigma Motors
with the price of 24,000$ per piece.
Flow Chart Diagram of manufacturing process of Security Vehicle MUHAFIZ is given below.
Raw Material
Aluminum Sheets and Ballistic Steel

CRD Shop Plasma Cutting Shop

Cutting of Plates for Hull and Base Cutting of plates by Plasma cutting
process

FAB shop FAB Shop

Fabrication of parts to make hull Finishing and Grinding
and base

Surface Treatment Shop FAB Shop

ALODINE process for Hull and Welding and fitting of accessories
Base

Assembly Shop
Assembling of hull and major
accessories

FAB Shop
Fitting doors, turret and roof

Assembly Shop
Assembling of minor accessories

Paint Shop
Painting of PRODUCT - II
The manufacturing process starts from CRD shop. CRD stands for “CUTTING ROUTING AND
DRILLING”. In this shop the smooth plates are cut into different size of plates according to
drawings and templates. Firstly these plates cut on the sewage saw and then some plates
are sent to the CNC machine for further cutting.

Two CNC (computer numerical control) machines are used for cutting purpose. The
utilization of these two machines is so extensive that 90% of cutting, profiling and drilling
are carried out in these two machines. These machines understand the machine language
and software like Computer Aided Design (CAD), Computer Aided Machine (CAM) and
Proficient Engineer (PRO E). The maximum design activities are carried out with the help of
these CNC machines. This whole process of cutting the plates takes several hours.
Cutting of Parts
in CRD shop

Cutting Routing Drilling

Cutting at Sewage Cutting at CNC Routing Machine Drill Machine

Saw Machine (Router)

After the completion of cutting process these plates are sent to next shop which is known as
“FABRICATION SHOP” (FAB shop). First of all base of the security vehicle is welded and
assembled on the chassis. After that other plates are fitted in a fixture. This fixture is
actually a master gauge of the Hull. After fitting the welding process starts. Firstly inside
welding carried out Hull of the security vehicle is drawn out from the fixture. Then the
outside welding is performed by two skilled workers. This out side welding performed on
the TRUNNION welding machine. After complete welding, finishing and grinding take place.
After that it is sent to next shop.

FAB Shop
Welding and Fabrication of Parts

Welding of Base Welding of Hull

Fixing in fixture Fixing in Fixture

Welding of base Inside welding

Outside welding

Fitting of accessories
Doors, roof and turret of the security vehicles are made up of Ballistic Steel. Ballistic Steel is
special kind of bullet proof steel. It has 6.4mm sheets. These plates first came to Plasma
Cutting Shop. Cutting of plates take place with the help of templates in plasma cutting shop.
In this shop 3 phase AC supply and high air pressure is used for cutting purpose. Then
finishing and grinding of these plates take place. After that accessories at different sectioned
is welded. Welding of turret also take place in this shop. After completion of turret, doors,
bonnet and roof they are again sent for finishing. After that they are fitted on the vehicle.

Plasma Cutting Shop

Cutting of Plates

Finishing and Grinding

Welding and Fitting Of Accessories

Welding and Assembling on the Vehicle

In this shop which is “SURFACE TREATMENT SHOP”. Actually the surface treatment takes
place twice. First after cutting the plates they are sent to surface treatment shop. Second
after fabrication the complete hull is sent to surface treatment shop. The processes of
surface treatment shop consist on the following steps:-

 Hull is dipped in RIDOLINE-53 tank-1 for 1-15 minutes at 140o-160o F to remove

grease and oils from its surface.
 Then it is dipped into cold water tank-2 at room temperature for 2 minutes for cool
down.
 Then it is sent to tank-3 DEOXIDINE for 1-10 minutes at 140o-160o F to remove
layers of paper or dust from cell’s surface.
 Then it is again sent to cold water tank and dipped for 2 minutes.
 Then it is sent to tank-4 DEOXIDIZER for 1-10 minutes at room temperature for more
smoothening and cleaning purpose.
 Then it is again sent to cold water tank.
This whole process is done before welding on plates and after welding on Hull but Hull after
completion of these steps is again sent to two more surface treatments.
 After complete fabrication of fuel cell it is sent to tank-5 ALODINE for 30seconds to 3
minutes at 58o-86o F for paint and to remove the effects of gases.
 Then it is sent to hot water tank-6 for 30-60 seconds at 120o-130o F.

By completing these steps the process of surface treatment shop is completed and then it is
sent to Next shop.
 Surface Treatment Shop

Dip Tank-1 (RIDOLINE) Dip Tank-2 (cold water)

15 minutes 15 minutes

Dip Tank-3 (DEOXIDINE) Dip Tank-4 (DEOXIDIZER)

10 minutes 10 minutes

Dip Tank-5 (ALODINE) Dip Tank-6 (HOT Water)

3 minutes 1 minute

Cooling
30 minutes

After the complete surface treatment this completely prepared hull is sent to the
“ASSEMBLY SHOP”. In this shop main work is done by worker used of machinery is very
rare. Two cranes are used to lift and fix the hull on the chassis. There is a little deficiency of
man power. After fixing of hull dash board, gear break and other internal accessories are
assembled. Bullet Proof glasses are also fitted in this stage. Then it is sent back to FAB shop.
 Assembly Shop

Assembling of Base on Chassis

Assembling of Hull

Fitting of Accessories

Fitting of Turret and Doors

Fitting of Bullet proof Glasses

Paint Shop

Finishing

Base layer of paint

Final layer of paint

Quality Control and 50km Test

drive

After completion of security vehicle in FAB shop it is again sent to assembly shop. Several
internal accessories such as AC, Exhaust Fan and seats are fitted in this stage. Then this
vehicle is sent to paint shop.

In paint shop first of all finishing take place. Then first coating of base layer is done. After
drying of this coating Final coating of Security Vehicle MUHAFIZ is done according to the
required color of customer.
Overall Equipment Effectiveness for Security Vehicle

Item Data
Shift Length 8 hours = 480 min.
Short Breaks 0 @ 0 min. = 0 min.
Meal Break 1 @ 30 min. = 30 min.
Down Time * 10 minutes
Ideal Run Rate ** 0.001515 pieces per minute
10 Vehicles should be produced in 15 days so 0.6667 vehicles should
be produced in one shift ideal run rate per minute is 0.001515.
10 security vehicles are completed in 16 days.
Total Pieces 0.625pieces
Reject Pieces 0.125 pieces
* Delay due to any mal function.
** Vehicles produced per minutes

Planed Production Time

= [Shift Length – Breaks]
= [480 minutes – 30 minutes]
= 450 minutes

Operating Time
= [Planed Production Time – Down Time]
= [450 minutes – 10 minutes]
= 440 minutes

Good Pieces
= [Total Pieces – Rejected Pieces]
= [0.625 – 0.125]
= 0.5 pieces

Availability = Total Time / Operating Time

= Operating Time / Planed Production Time
= 440 minutes / 450 minutes
= 0.9778 (97.78 %)

Performance = (Total Pieces / Operating Time) / Ideal Run Rate

= (0.625 / 440) / 0.001515
= 0.9376 (93.76%)

Quality = Good Pieces / Total Pieces

= 0.5 / 0.625
= 0.8 (80.00%)

OEE = Availability x Performance x Quality

= 0.9778 x 0.9376 x 0.800
= 0.7334 (73.34%)
A comparison between world class OEE and its other factors are given below in the table.
We can monitor our performance and quality by relating it to world class OEE.

OEE Factors World Class OEE OEE of PRODUCT-II

Availability 90.00% 97.78%
Performance 95.00% 93.76%
Quality 99.90% 80.00%
OEE 85.00% 73.34%

Process Improvement

The manufacturing of the special vehicles starts in batches. Batch production starts in 10-25
vehicles batch. First the cutting process starts in CRD shop for a batch. Then they are sent to
Fabrication shop. The process is completed in batches. After fabrication they are fitted and
assembled. There is only a little need to improve process. Plates after cutting in CRD shop
reach in assembly shop. One vehicle should be totally fabricated and then sent to assembly
shop so that they start the assembling of the parts. If it is sent in batches then they should
have to wait for the completion of one batch in fabrication shop. After completing the
whole work then outsourcing should be used so that they will complete their work in two or
three days.
Results

From the above data and OEE calculation it is clear that main factor in OEE losses is quality.
No organization can afford such a big loss in quality. Availability is a good level. Performance
is also nearly equal to world class OEE. We need is to improve quality.

Following factors were identified during the study to have major drawbacks on quality
issues.

 Unskillful Workers: When a worker is not properly trained to do a specific job and he
is assigned to do it. He will pay his role in declined quality.
 Negligence of Workers: When a worker is assigned a task or a wrong job and forced
to do it in time. He will not care for quality. Only right job should be for right person.

Quality can only be improved by strict quality control at each stage. If quality is controlled
the performance can automatically increase. Financial losses also occur due to declined
quality. Also skilled worker should be incorporated to do job. If a worker is assigned a task
he should be monitored thoroughly. If he is not able to perform a jab better he should be
assigned another job. Only right person should do right job. One of the reasons in reduction
of quality is to increase availability. Availability is not a big factor as quality is. When a
worker is assigned a task and imposed to do it in time he will not care for quality.

Due to declined quality two types of losses occur. First are performance losses in which
workers have to spend extra time in repair of rejected pieces. Second are financial losses.
When rejected work pieces are irreparable then it causes a huge financial loss. Also if they
repair it then over head charges and worker time also cause financial loss.