my summer internship report

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Summer Internship Report 2010 1 IMPROVIG THE OPERATIOAL EFFICIECY AD PROFITABILITY OF EXPORT ORIETED UIT LIST OF COTETS DECLARATIO............................................................................................... 7 ACKOWLEDGEMET................................................................................ 8 ABSTRACT....................................................................................................... 9 LIST OF TABLES............................................................................................10 LIST OF FIGURES.......................................................................................13 CHAPTER-1 ITRODUCTIO.....................................................................14 1.1 ABOUT THE IDUSTRY......................................................................................14 1.2 SHORTAGE OF RAW MATERIAL....................................................................16 1.3 PORTER’S FIVE FORCE MODEL FOR COPPER IDUSTRY.....................18 CHAPTER-2 ABOUT THE COMPAY.......................................................19 2.1 VISIO 2015.............................................................................................................19 2.2 MISSIO...................................................................................................................19 2.3 STREGTHS...........................................................................................................20 2.4 HISTORY.................................................................................................................20 2.5 SWOT AALYSIS.....................................................................................................21 2.6 TQM- A WAY OF LIFE.........................................................................................22 2.7 TPM JOUREY AT SIIL.......................................................................................22 CHAPTER-3 OBJECTIVE, SCOPE AD METHODOLOGY..................23 3.1 OBJECTIVE............................................................................................................23 3.2 SCOPE OF THE PROJECTS................................................................................23 3.3 METHODOLOGY..................................................................................................23 3.4 LIMITATIOS OF THE PROJECT....................................................................23 CHAPTER-4 PROJECT I DETAIL............................................................24 4.1 DEFIITIO: TIME EFFICIECY...................................................................24 4.2 FACTORS IFLUECIG ACTUAL RUIG HOURS OF CELL .........24 HOUSE 4.2.1 CHAGE OVER....................................................................................................25

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this report decribes the delay details and motion study of forklifts used in the company and suggestions which can be implemented

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Page 1: my summer internship report

Summer Internship Report 2010

1 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

LIST OF CO�TE�TS

DECLARATIO�............................................................................................... 7

ACK�OWLEDGEME�T................................................................................ 8

ABSTRACT....................................................................................................... 9

LIST OF TABLES............................................................................................10

LIST OF FIGURES.......................................................................................13

CHAPTER-1 I�TRODUCTIO�.....................................................................14

1.1 ABOUT THE I�DUSTRY......................................................................................14

1.2 SHORTAGE OF RAW MATERIAL....................................................................16

1.3 PORTER’S FIVE FORCE MODEL FOR COPPER I�DUSTRY.....................18

CHAPTER-2 ABOUT THE COMPA�Y.......................................................19

2.1 VISIO� 2015.............................................................................................................19

2.2 MISSIO�...................................................................................................................19

2.3 STRE�GTHS...........................................................................................................20

2.4 HISTORY.................................................................................................................20

2.5 SWOT A�ALYSIS.....................................................................................................21

2.6 TQM- A WAY OF LIFE.........................................................................................22

2.7 TPM JOUR�EY AT SIIL.......................................................................................22

CHAPTER-3 OBJECTIVE, SCOPE A�D METHODOLOGY..................23

3.1 OBJECTIVE............................................................................................................23

3.2 SCOPE OF THE PROJECTS................................................................................23

3.3 METHODOLOGY..................................................................................................23

3.4 LIMITATIO�S OF THE PROJECT....................................................................23

CHAPTER-4 PROJECT I� DETAIL............................................................24

4.1 DEFI�ITIO�: TIME EFFICIE�CY...................................................................24

4.2 FACTORS I�FLUE�CI�G ACTUAL RU��I�G HOURS OF CELL .........24

HOUSE

4.2.1 CHA�GE OVER....................................................................................................25

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2 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

4.2.1.1 CELLHOUSE PREPARATIO�...........................................................................25

4.2.1.2 CATHODE STRIPPI�G MACHI�E (CSM)......................................................26

4.2.1.2.1 PURPOSE...............................................................................................................26

4.2.1.2.2 OPERATI�G PROCEDURE OF CSM..............................................................26

4.2.1.2.3 STA�DARD MACHI�E HOURS REQUIRED................................................27

4.2.1.2.4 PARETO A�ALYSIS OF DELAY AREAS I� CSM.......................................28

4.2.1.2.5 PARETO A�ALYSIS OF THE DEPARTME�TS I� CSM.............................30

4.2.1.3 A�ODE PREPARATIO� MACHI�E (APM)....................................................31

4.2.1.3.1 OPERATI�G PROCEDURE OF APM...............................................................31

4.2.1.3.2 STA�DARD MACHI�E HOURS REQUIRED.................................................32

4.2.1.3.3 PARETO A�ALYSIS OF DELAY AREAS I� APM........................................33

4.2.1.3.4 PARETO A�ALYSIS OF THE DEPARTME�TS I� APM.............................34

4.2.1.4 A�ODE SCRAP WASHI�G MACHI�E (ASWM)...........................................35

4.2.1.4.1 OPERATI�G PROCEDURE OF ASWM...........................................................35

4.2.1.4.2 STA�DARD MACHI�E HOURS REQUIRED.................................................36

4.2.1.4.3 PARETO A�ALYSIS OF DELAY AREAS I� ASWM....................................37

4.2.1.4.4 PARETO A�ALYSIS OF THE DEPARTME�TS I� ASWM........................38

4.2.1.5 CRA�ES.................................................................................................................39

4.2.1.5.1 E. O. T. CRA�ES...................................................................................................39

4.2.1.5.2 PARETO A�ALYSIS OF DELAY AREAS I� CRA�E-1...............................40

4.2.1.5.3 PARETO A�ALYSIS OF DEPARTME�TS I� CRA�E-1..............................41

4.2.1.5.4 PARETO A�ALYSIS OF DELAY AREAS I� CRA�E-2................................42

4.2.1.5.5 PARETO A�ALYSIS OF DEPARTME�TS I� CRA�E-2..............................43

4.2.1.6 OPERATOR SKILLS A�D EXPERIE�CE.......................................................44

4.2.1.7 FORKLIFT AVAILABILITY...............................................................................44

4.2.1.8 PREVE�TIVE MAI�TE�A�CE........................................................................44

4.2.1.9 LABOUR AVAILABILITY A�D SKILLS.........................................................44

4.2.2 STRIPPI�G.............................................................................................................45

4.2.3 RECTIFIERS..........................................................................................................45

4.2.4 MISCELLA�EOUS................................................................................................45

4.3 ABOUT THE FORKLIFTS...................................................................................46

4.4 FORKLIFTS I� EOU.............................................................................................47

4.4.1 REFI�ERY..............................................................................................................48

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3 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

4.4.1.1 TIME CALCULATIO�S.......................................................................................48

4.4.1.2 UTILIZATIO� OF FORKLIFTS.........................................................................51

4.4.2 LOGISTICS.............................................................................................................53

4.4.2.1 TIME CALCULATIO�S.......................................................................................53

4.4.2.2 UTILIZATIO� OF THE FORKLIFTS................................................................55

4.4.3 CCR..........................................................................................................................57

4.4.3.1 TIME CALCULATIO�S......................................................................................59

4.4.3.2 UTILIZATIO� OF THE FORKLIFTS...............................................................59

CHAPTER 5 RESULTS A�D SUGGESTIO�S...........................................61

5.1 TIME EFFICIE�CY CO�SOLIDATED STATEME�T..................................61

5.2 FOKKLIFT UTILIZATIO� CO�SOLIDATED STATEME�T.....................61

5.3 SUGGESTIO�S......................................................................................................62

5.3.1 SUGGESTIO� 1.....................................................................................................62

5.3.2 SUGGESTIO�-2.....................................................................................................64

5.3.3 SUGGESTIO� 3.....................................................................................................66

5.3.4 SUGGESTIO� 4.....................................................................................................70

CO�CLUSIO�.................................................................................................71

REFERE�CES.................................................................................................72

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4 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

CERTIFICATE - HEAD OF DEPARTME�T

This is to certify that JO�ES DAVIS MATHEW (Registration # 0921120 ) is a bona fide student of Christ University Institute of Management (MBA batch 2009-11) and has successfully completed his Summer Internship Project at STERLITE INDUSTRIES INDIA LIMITED, TUTICORIN in Lean Operation & System stream

……………………… Place: Prof. CKT Chandrashekara Head of Department Date: Christ University Institute of Management Bangalore

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5 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

CERTIFICATE –FACULTY GUIDE

This is to certify that this internship report on the title IMPROVI�G

THE OPERATIO�AL EFFICIE�CY A�D PROFITABILITY

OF EXPORT ORIE�TED U�IT is a bonafide work of Mr. Jones

Davis Mathew, REG �o 0921120 under my guidance and support .This report is a part of MBA course with specialization in Lean Operation & System stream and the content and the work done is genuine with respect to the information covered and thought expressed.

………………………

Place: MR SUNIL A.K

PROFESSOR Date:

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6 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

CERTIFICATE FROM THE COMPA�Y

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7 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

DECLARATIO�

I, Jones Davis Mathew, declare that the project entitled IMPROVING

THE OPERATIONAL EFFICIENCY AND PROFITABILITY OF EXPORT

ORIENTED UNIT (Sterlite Industries India Ltd.), done during the

period from 1stApril to 5thMay is my own effort and work.

This Project is done in partial fulfillment of the requirements for

the award of the degree of MASTER OF BUSINESS

ADMINISTRATION by CHRIST UNIVERSITY, BANGALORE.

Place: Bangaluru

Date: 18th june 2010 Signature

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8 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

ACKNOWLEDGEMENT My gratitude is due to Mr. S. SRIDHAR, H.O.D Refinery, who has

guided me and given his valuable time & knowledge during my stay

at the company.

I convey my gratitude to Capt. YOGESH KUMAR GAUR,

ASSOCIATE MA�AGER, HR, for his guidance and support

throughout the project work during my stay at the company.

I am deeply grateful to Sri. SU�IL A.K, my Faculty Guide, who

provided valuable insights and guidance at every stage of the project.

I also convey my sincere gratitude to my friends and my family for

their encouragement and support extended to me during the course of

my project. At the end I would not forget to thank other members of

SIIL, TUTICORIN who treated me with respect and helped me in the

best of their capacity.

Signature.

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9 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

ABSTRACT

This report deals with the improvement of Operational Efficiency and

Profitability of the Export Oriented Unit (EOU) of Sterlite Industries India

Limited, Tuticorin, Tamil Nadu.

Process of copper cathode production in the Refinery unit has

been studied and the time used for the production has been analyzed by

performing the time efficiency study and the various factors that influence time

efficiency. The various factors have been analyzed using Pareto analysis and the

vital few causes have been pointed out on this report.

Use of material handling equipments especially Forklifts have

been studied in this report. The various motions that the forklift takes and the

time taken for performing a particular activity has been observed. Utilization

level for each of the forklifts used in the EOU has been calculated and

accordingly suggestions have been provided to the company to improve the

utilization level and thus reduce the excess quantity of forklifts used and

contribute to the profitability of the company.

\

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10 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

LIST OF TABLES

2.1 CURRENT CAPACITY DETAILS OF STERLITE INDUSTRIES (I) LTD 7

4.1 MAJOR AREAS THAT CAUSE THE FUNCTIONING DELAY FOR CSM AND THE

CONSOLIDATED OCCURRENCE FOR THE PERIOD OF NOV’09-MARCH’10

4.2 CONSOLIDATED DELAY DISTRIBUTION OF THE DEPARTMENTS FOR CSM

FROM NOV’09-MARCH’10

4.3 MAJOR AREAS THAT CAUSE THE FUNCTIONING DELAY FOR APM AND THE

CONSOLIDATED OCCURRENCE FOR THE PERIOD OF NOV’09-MARCH’10

4.4 CONSOLIDATED DELAY DISTRIBUTION OF THE DEPARTMENTS FOR APM

FROM NOV’09-MARCH’10

4.5 MAJOR AREAS THAT CAUSE THE FUNCTIONING DELAY FOR ASWM AND

THE CONSOLIDATED OCCURRENCE FOR THE PERIOD OF NOV’09-MARCH’10

4.6 CONSOLIDATED DELAY DISTRIBUTION OF THE DEPARTMENTS FOR ASWM

FROM NOV’09-MARCH’10

4.7 MAJOR DELAYS OCCURRED IN CRANE-1 IN NOV-09 TO MARCH-10

4.8 CONSOLIDATED DELAY DISTRIBUTION OF THE DEPARTMENTS FOR CRANE-

1 FROM NOV’09-MARCH’10

4.9 MAJOR DELAYS OCCURRED IN CRANE-2 IN NOV-09 TO MARCH-10

4.10 CONSOLIDATED DELAY DISTRIBUTION OF THE DEPARTMENTS FROM

NOV’09-MARCH’10

4.11 FORKLIFT TIMING FOR SHIFTING FRESH ANODES FROM CHIPPING YARD

TO DESPATCH YARD

4.12 FORKLIFT TIMING FOR SHIFTING FRESH ANODES FROM DESPATCH YARD

TO ANODE YARD BY 5TON AND 3 TON FORKLIFTS

4.13 FORKLIFT TIMING FOR CARRYING THE SPENT ANODE FROM ANODE YARD

TO SMELTER YARD

4.14 FORKLIFT TIMING FOR CARRYING THE CATHODE FROM THE CSM

MACHINE TO WEIGH SCALE AND FROM THERE TO THE CSM YARD

4.15 UTILIZATION OF 3 TON FORKLIFT DEDICATED TO CSM YSRD

4.16 UTILIZATION OF 3 TON FORKLIFT DEDICATED TO CSM YSRD

CONSIDERING CHANGE OVER N STRIPPING TIME SEPERATELY

4.17 UTILIZATION OF 1-3TON AND 2-5TON FORKLIFT FOR APM YARD

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11 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

4.18 FORKLIFT TIMING FOR SHIFTING CATHODE BUNDLES FROM THE CSM

YARD TO THE WAREHOUSE

4.19 FORKLIFT TIMING FOR SHIFTING OF CATHODE BUNDLES FROM THE CSM

YARD TO THE FRONT YARD

4.20 FORKLIFT TIMING FOR LOADING THE TRUCK WITH COILS AND CATHODE

BUNDLES FROM THE WAREHOUSE TO THE TRUCK

4.21 FORKLIFT TIMING FOR SHIFTING THE CATHODE BUNDLES FROM FRONT

YARD TO THE CCR FURNACE

4.22 UTILIZATION OF THE FORKLIFTS 3TON FORKLIFT DEDICATED TO CSM

YARD

4.23 UTILIZATION OF THE FORKLIFTS FOR TRUCK LOADING (COIL, CATHODE)

AND CATHODE BUNDLES TO CCR

4.24 FORKLIFT TIMING FOR SHIFTING OF COIL FROM THE CCR TO THE

WAREHOUSE

4.25 FORKLIFT TIMING FOR FEEDING THE FURNACE WITH THE CATHODE

BUNDLES FROM THE CCR YARD TO THE FEEDER

4.26 FORKLIFT TIMING FOR ACTIVITIES INSIDE THE CCR

4.27 UTILIZATION OF THE 3TON FORKLIFT DEDICATED TO FURNACE

4.28 UTILIZATION FOR 5 TON FORKLIFT FOR SHIFTING COIL FROM CCR TO

WAREHOUSE

5.1 CONSOLIDATED TIME EFFICIENCY OF THE REFINERY

5.2 FOKKLIFT UTILIZATION CONSOLIDATED STATEMENT

5.3 RENEWD UTILIZATION WHEN 70% OF CATHODE IS SHIFTED BY 2 -5TON

FORKLIFT OF LOGISTICS

5.4 RENEWD UTILIZATION WHEN 30% OF CATHODE IS SHIFTED BY 3TON

FORKLIFT OF CSM

5.5 RENEWD UTILIZATION WHEN 100% OF CATHODE IS SHIFTED BY 2 -5TON

FORKLIFT OF LOGISTICS

5.6 RENEWD UTILIZATION FOR 3 TON FORKLIFT OF CCR

5.7 REUTILIZATION OF THE FORKLIFTS FOR TRUCK LOADING (COIL, CATHODE)

AND CATHODE BUNDLES TO CCR

5.8 RENEWD UTILIZATION FOR 5TON FORKLIFT OF CCR

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12 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

5.9 RENEWD UTILIZATION WHEN 100% OF CATHODE IS SHIFTED BY 2 -5TON

FORKLIFT OF LOGISTICS

5.10 RENEWD UTILIZATION WHEN 90% OF CATHODE IS SHIFTED BY 2 -5TON

FORKLIFT OF LOGISTICS

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13 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

LIST OF FIGURES

1.1 GROWTH OF PRODUCTION IN COPPER FROM THE YEAR 2004 TO 2008

1.2 COPPER INDUSTRY MARKET SHARE

1.3 GLOBAL DEMAND FOR COPPER BY REGION

2.1 PROCESS OF COPPER CATHODES AND RODS PRODUCTION AT SIIL

4.1 FLOW DIAGRAM OF CSM

4.2 PARETO ANALYSIS FOR CSM FOR THE PERIOD OF NOV’09-MARCH’10

4.3 PARETO ANALYSIS FOR CSM (DEPARTMENT VICE) FROM NOV’09-MARCH’10

4.4 FLOW DIAGRAM OF APM

4.5 PARETO ANALYSIS FOR APM FOR THE PERIOD OF NOV’09-MARCH’10

4.6 PARETO ANALYSIS FOR APM (DEPARTMENT VICE) FROM NOV’09-MARCH’10

4.7 PARETO ANALYSIS FOR ASWM FOR THE PERIOD OF NOV’09-MARCH’10

4.8 PARETO ANALYSIS FOR ASWM (DEPARTMENT VICE) FROM NOV’09-

MARCH’10

4.9 PARETO ANALYSIS FOR CRANE-1 FOR THE PERIOD OF NOV’09-MARCH’10

4.10 PARETO ANALYSIS FOR CRANE-1 (DEPARTMENT VICE) FROM NOV’09-

MARCH’10

4.11 PARETO ANALYSIS FOR CRANE-2 FOR THE PERIOD OF NOV’09-MARCH’10

4.12 PARETO ANALYSIS FOR CRANE-2 (DEPARTMENT VICE) FROM NOV’09-

MARCH’10

4.13 FORKLIFT

5.1 DIAGRAM OF AUTO FEEDER

5.2 DIAGRAM OF NEW RAILED CCR

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14 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

CHAPTER-1

I�TRODUCTIO�

1.1 ABOUT THE I�DUSTRY:

The history of Indian copper industry goes back to 1967 with the incorporation of Hindustan

Copper Ltd (HCL) and thereafter acquisition of mines from the public sector National

Minerals Development Corporation (NMDC). But, the real twist in copper story took with the

opening up this sector for private sector players in 1992 which saw the involvement of Indo

Gulf Corporation (now a part of Hindalco Industries) and Sterlite Industries into copper

smelting and refining through concentrate imports from various mining-rich countries.

Copper is a special metal for industrial applications owing to its properties such as electrical

conductivity, corrosion resistance, ductility, malleability and rigidity. Specific applications

of copper include power cables and wires, jelly filled cables, building wires, air conditioning

and refrigeration tubings. Telecom, power, construction, transportation, handicrafts,

engineering, consumer durable, defence. The Indian Copper Industry was opened for private

Sector investment in 1992. Earlier the industry was dominated by Hindustan Copper Limited

(HCL), a public sector undertaking. The Industry currently has just 3 major players (Sterlite,

Hindalco and Hindustan Copper Ltd.). Jhagaria Copper (erstwhile SWIL Ltd.), which

commissioned its 50,000 tonne plant in Gujarat is reportedly facing acute shortage of raw

material. The company approximately two years before initiated the commercial production

on its plant equipped with the technology to use copper concentrates and scrap as raw

materials. But, of late companied denied procuring scrap from domestic traders and imports

remained scary for various reasons. Other players include around 1000 of SSI units but a

majority of them closed down due to unviability. These units are primarily involved in

converting scrap into ingots. While HCL is the only integrated producer, which mines and

refines copper, Hindalco Industries and Sterlite Industries are secondary producers, who

process both indigenous and imported copper concentrate to produce end products like

copper bars, rods and wires. The fully de-mutualised copper producer is largely managed

mainly by bankers.

tonnes towards the end of the current fiscal year to go up to 947500 tonnes as against the

demand of roughly 5 lakhs tonnes. The demand supply imbalance is unlikely to deteriorate

further, as the ongoing boost in the country's infrastructure is expected to appreciate the

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15 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

demand in tonnes, thus; taking the total production of beyond one million

However, the surplus position in the domestic market is not major concern for the Indian

players because the Asian region has a deficit of around 2.6 million tonnes. But it can only

threatening call from rising prices which hit the unaffordable level during the last two years.

While Japan, India and Philippines a surplus position, deficit regions comprise China,

Taiwan, South Korea, Malaysia, Thailand and parts of Middle East. About 50 per cent of the

domestic copper production is routed through secondary market through scrap imports. The

domestic generation of copper is negligible as the system is not fully organized to recover

copper scrap which is presently either burnt or dumped underground without realizing the re-

sale

Production growing at a CAGR of 15%

Fig1.1

0

100

200

300

400

500

600

700

800

2004 2005 2006 2007 2008

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16 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

COPPER INDUSTRY MARKET SHARE

Fig1.2

Hindalco and Sterlite accounts for more than 90% of the production.

1.2 SHORTAGE OF RAW MATERIAL:

Indian primary and secondary copper industry has been facing tremendous raw material

shortage for which the smelters have been importing concentrates from the major mining

countries like Peru, Chile, Canada etc and secondary producers have been surviving on low

scrap imports. But, today, global industry is facing raw material supply deficit which is likely

to persist until 2009.

Increase in smelting capacity mainly in India and China and mines facing the problem of low

grade, shortages of equipment and manpower have kept the concentrate market in deficit and

have put further pressure on TcRc. During the first half of 2007, TcRc declined by almost

15%. The concentrate would continue to be short supply upto 2009; this may affect the TcRc,

adversely, in the Spot Market, Debu Bhattacharya, MD, Hindalco Industries believes.

Custom smelters are likely to remain under pressure for until new mines come on stream.

The TcRc charges have been declining during the past few months due to constraints in

concentrate availability. The TcRc charges have in fact declined from 5.64 c/ lb at the

beginning of the financial year FY2004 to 2.56 c/ lb in Q4 FY2004, a drop of about 55% due

to aggressive buying by Asian Smelters. Towards the end of the first quarter of the current

fiscal the TcRc rate further declined to 2.00 c/lb

Copper and copper products can be imported at zero duty from Sri Lanka under the Free

47%

46%

6%1

%

HINDALCO

STERLITE

HCL

SWIL

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17 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

Trade Agreement (FTA) with that country. Duties on copper and copper products have been

progressively reduced – for example, customs duty has been reduced from 35 per cent in

2001 to 10 per cent in 2006.

On the production front, the last few years have seen significant additions in capacities in

India and accordingly the production has increased at a CAGR of 14.8% during the last three

years. The domestic consumption, on the other earmarked for exports. Strong demand for

copper has resulted in steady rise in copper prices, which had earlier exhibited

World demand growth forecast is 4.9 % for 2007 and 4.2% 2008. Per capita during 2007-

08. India’s strong economic growth and key priority for the power sector which is major

consumer of copper will support high demand and price in the near term.

The Indian copper industry comprises 3% on the world copper map. Of late, India

turned into a net exporter of copper from the status of net importer on account of rise in

production by three companies for its applications in building, cabling for power and

telecommunications, automobiles etc. Two major states owned telecommunications service

providers – BSNL and MTNL consume 10% of the country’s copper production. Growth in

the building construction and automobile sector is

In India the users segment such as winding wire, power cables, transformers industry and

continued increased export of downstream products supporting higher demand. However, the

industry is greatly disadvantaged as non-value added imports from Sri Lanka under the free

trade agreement (FTA) continue to adversely impact the domestic sales. But, the efforts

initiated by the Sri Lankan government to curb imports, less value addition and re-exports to

India illegally brought positive results. Now, it’s a wakeup call for the government of India to

restrict unwanted imports and exports of raw material and finished products from the FTA

countries. Under, FTA the re-exports of any goods was permitted with minimum 35% of

value addition which was not practiced by the miscreants traders. But, today, the industry is

complete safe as all units have already come back to India with their plants. Only three

projects still remain in Sri Lanka with a minute production capacity of 200-250 tonnes per

annum.

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18 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

GLOBAL DEMAND FOR COPPER BY REGION

Fig 1.3

1.3 PORTER’S FIVE FORCE MODEL FOR COPPER I�DUSTRY

Threat of New Entrants

• Supportive policy regime• Growing domestic market as

well as exports across

segments Supplier Power • The country has rich reserves of minerals, ores • Growing, skilled manpower base

Competitive Rivalry • Number of domestic players • Highly competitive in secondary and downstream segments

Customer Power • User industries experiencing strong growth • Highly demanding customers • Wide range of products, specifications to meet different needs

Threat of Substitutes • Plastics and other substitutes being tried out in some user segments • No viable substitute in a majority of usage areas

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19 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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CHAPTER2

ABOUT THE COMPA�Y

Sterlite Industries India Ltd. (SLT) is a subsidiary of Vedanta Resources plc, a diversified

and integrated metals and mining group. The company engages primarily in the production

of copper in India. Its products include copper cathodes; and cast copper rods, including

11 mm and 12 mm rods used in the transformer industry, and 8 mm rods used by the wires

and cables industry with applications in housing wires, electrical cables, and telecom cables.

The company also engages in the mining of bauxite, and the production

of aluminium conductors and various aluminium products, as well as in the mining

of zinc ore, and in the manufacture of zinc ingots and lead ingots. In addition, Sterlite

Industries produces various chemical products, such as sulphuric acids, phosphoric acids,

phospho gypsum, hydro fluo silicic acids, and granulated slag. Further, the company involves

in trading gold, as well as in paper business. It markets its copper products directly to original

equipment manufacturers and traders. The company is based in Mumbai, India. The

company’s main operating subsidiaries are Hindustan Zinc Limited for its zinc and lead

operations; Copper Mines of Tasmania Pty Limited for its copper operations in Australia; and

Bharat Aluminium Company Limited for its aluminium operations. The company is entering

into the commercial power generation business by setting up a large scale 2,400 MW coal

based independent thermal power plant in Jharsuguda, Orissa and a wind energy project at

Karnataka, Gujarat and Maharashtra, totalling 110.4 MW. Post completion of these projects,

the company will have a total wind power capacity of 148.8 MW.

2.1 VISIO� 2015

To be the world’s leading copper producer delivering sustainable value to all stakeholders by

leveraging technology and best practices.

2.2 MISSIO�

• To build a knowledge and process driven organization through TPM

• To create sustainable value through safe, clean and green processes

• To sustain leadership position in domestic and global market through market

development and customer delight.

• To be the best and most respectable corporate citizen

• To leverage technology to its full potential across the business cycle

• To harness the profitable and growing CCR/value added product from 240KMT to

600 KMT per annum.

• To achieve Zero cost and beyond

• To secure raw material through long term contracts and captive mine

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20 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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2.3 STRE�GTHS: Today, our organization is growing by leaps and bounds thanks to our competitive strengths, which include:

• High quality assets and resources that make us a low-cost producer of copper and zinc.

• Substantial market shares across the copper, zinc and Aluminium metals markets in India.

• Extensive experience in operating and expanding our business in India that allows us to

capitalize on attractive growth opportunities and resource potential in the country.

• Numerous new projects in the pipeline that will enable us to expand our production.

• Experience for entry into commercial power generation business in India with our

operations of captive power plants since 1997.

• Experienced and focused management with strong project execution and acquisition

skills.

• Ability and capacity to finance world-class project

2.4 HISTORY • 1986- Sterlite Cables Limited, acquires the Shamsher Sterling Corporation, changes the

name to Sterlite Industries (India) Limited.

• 1988- Sterlite Industries makes an initial public offering of its shares on the Indian stock

exchange.

• 1991- Sterlite Industries establishes India’s first continuous copper rod plant.

• 1997- Commissions first privately developed copper smelter in India at Tuticorin in

Tamil Nadu.

• 1999- Acquires Copper Mines of Tasmania Pty Ltd.

o Acquires Thalanga Copper Mines Pty Ltd.

• 2005- Expansion of Tuticorin Smelter to 300,000 TPA and Successful ramp up of ISA

furnace in a record period of 45 days.

• 2006- Expansion on Tuticorin smelter to 400 KTPA through innovative debottlenecking.

• 2007- Sterlite Industries primary listing on NYSE in June 2007

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21 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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Current Capacity Details

Particulars Current Capacity

Copper Mines

- Tasmania – ore mined 2.5mn tonnes

(Grade - 1.2% Copper)

Copper Cathode – Refinery

- Tuticorin 205000 tonnes

- Silvassa 195000 tonnes

Copper Rod

- Tuticorin 90000 tonnes

- Silvassa 150000 tonnes Sulphuric Acid

- Tuticorin 1300000 tonnes

Phosphoric Acid Plant

- Tuticorin 180000 tonnes Captive Power plant

- Tuticorin 46.5 MW

Table2.1

2.5 SWOT Analysis

Cost of production stands at 1.8 cents/lb due to better by-product realizations and is in the lowest quartile i.e. 7th and 8th position in terms of global cost of production. Hence, the prices of copper company have a competitive edge despite declining TcRc as it continues to generate positive cash flows.

No significant backward linkages in terms of

copper mines, makes the company dependent

on global miners and it will not benefit from

any upturn in LME

STRE�GHTS WEAK�ESS

OPPORTU�ITIES THREATS

Increasing demand in the domestic market could provide benefits in terms of savings on freight cost since billing is based on the landed cost of metal prices. Exports currently account for 56% of its copper sales volume

Non- availability of copper concentrate would put pressure on TcRc rates and impact operating margins

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22 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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2.6 TQM- A Way of Life:

• First phase launched in 1997.

• Each phase consists 10 to 15 projects.

• 15TH phase in progress.

• 30% employee involvement

• Projects Completed: 100 + Nos.

• Sterlite is the only company with three TQM projects got selected in the ASQ 2007

• Total cost savings : $ 40 m (till date)

2.7 TPM journey at SIIL

• TPM journey started in 2007

• Manager Model Plant - CCR Plant

• Model Office TPM Area - Central Stores

• CII- TPM Club India supports the TPM implementation process.

• TPM – Kickoff held on 18Apr’08 at Tuticorin.

• 5S sustenance and Autonomous Production Rate Maintenance pillar activities are in

progress

Process of Copper Cathodes and Rods production at SIIL:

Fig 2.1

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CHAPTER-3

OBJECTIVE, SCOPE A�D METHODOLOGY

3.1 OBJECTIVE:

To increase the operational efficiency and profitability of the Export Oriented Unit (EOU) at

Sterlite Industries India Limited, Tuticorin (TN).

To accomplish this objective two major projects undertaken are:

1. Time efficiency and factors influencing time efficiency in refinery unit.

2. Forklift motion study and utilization in EOU.

3.2 SCOPE OF THE PROJECTS:

The scope of project regarding time efficiency is to analyse the time used for the copper

production in the refinery unit and to find the factors which contribute to the inefficiency of

the process.

Project regarding the motion study of the Forklifts in the EOU will help to understand the

utilization level of the forklifts used and ways to improve the utilization level.

3.3 METHODOLOGY:

For the first project related to Time Efficiency, the methodology adopted is to collect data

from the Distributed Control System and the employees on the shop floor. The data collected

is then analyzed using Pareto analysis and the vital few causes that lead to the 80% of the

delay in time utilization is listed out.

For the second project related to Forklifts, the methodology adopted is to collect the primary

data by observing the forklifts motion throughout the EOU premises and the time taken by

each forklift to perform a particular activity. Various combinations of activities for each

forklift are tried and then suggestions are provided to improve the utilization of each forklift.

3.4 LIMITATIO�S OF THE PROJECT:

Some of the information which comes under the confidentiality barriers are not included in

this report. Due to the limitation of the time available for the internship detailed research on

the technical aspects of the machinery has not been covered in this report.

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24 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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CHAPTER-4

PROJECT I� DETAIL

PROJECT 1: TIME EFFICIE�CY A�D FACTORS I�FLUE�CI�G TIME

EFFICIE�CY

4.1 DEFI�ITIO�: TIME EFFICIE�CY

It is the percentage of duration by which the CELLHOUSE are in locked in position so as to

deposit copper in cathode plate with respect to the total time available for deposition.

Time Efficiency= Time current is applied *100

Total time available

STANDARD TIME EFFICIENCY IS SUPPOSED TO BE 97.2%

4.2 FACTORS I�FLUE�CI�G ACTUAL RU��I�G HOURS OF CELL HOUSE

Note: * topics are commonly discussed for both changeover and stripping.

ACTUAL RUNNING HOURS

FACTORS DETERMINING CHANGE OVER

1. CELL HOUSE PREPARATION

2. CSM PERFORMANCE *

3. ASWM PERFORMANCE *

4. APM PERFORMANCE *

5. CRANE PERFORMANCE *

6. OPERATORS SKILL AND EXPERIENCE*

7. FORKLIFT AVAILABILITY*

8. PREVENTIVE MAINTENANCE*

9. LABOUR AVAILABILITY AND SKILLS*

CHANGE OVER

FACTORS DETERMINING STRIPPING

1. CSM PERFORMANCE *

2. CRANE PERFORMANCE *

3. OPERATORS SKILL AND EXPERIENCE*

4. FORKLIFT AVAILABILITY*

5. PREVENTIVE MAINTENANCE*

6. LABOUR AVAILABILITY AND SKILLS*

STRIPPING

RECTIFIERS

MISCELLANEOUS

1. ANODE

AVAILABILITY

2. DEMAND IN

THE COPPER MARKET

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25 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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4.2.1 CHA�GE OVER

Change over is referred to as the changing of the entire spent anode sets and cathode sets

washing of cells, cleaning of bus bars and insulators and changing of electrolyte for starting a

fresh chemical refinery process with the new set of copper anodes

Change over involves cutting the power supply off from the bank which stops

the electrolysis process and reduces the production period for copper cathodes. Thus this

leads to the reduction in time efficiency.

The major factors that influence the time required for change over are:

4.2.1.1 CELLHOUSE PREPARATIO�: In cellhouse preparation for the change over there

are many activities that are to be performed so as to complete the change over process:

1. Set up tools for alignment and water hose and necessary tools are brought near the

bank which is to go through the changeover process.

2. Bank is locked out of the power supply and initially two cells are decanted of

electrolyte.

3. Cathode plates of the cell are taken to CSM for stripping and then the scrap anodes

are taken to the ASWM for washing.

4. Cells are washed thoroughly with water to remove slime.

5. Bus bar is cleaned and the insulators are cleaned and fixed.

6. Electrolyte is filled in the cells.

7. Fresh anodes are placed in the cells and aligned.

8. Fresh SS plates are placed in the cells as cathodes and aligned.

9. This process is carried out for all the cells in the bank.

10. The power is logged on to start the electrolysis process.

In cell house preparation, the common delays that occur are the delay in slime washing. This

delay occurs because sometimes the scrap anode falls inside the cell and it is to be removed

manually. Even the draining away of the slime takes time. Also labourer’s inexperience plays

a major role in cellhouse preparation.

Cleaning and fixing of insulators with acid plays a part in the delay. Broken Insulators are

replaced and aligned and alignment of the cathode and anode also causes delay in the

changeover process.

Delay in the anode and cathode delivery to the cellhouse also causes delay n the changeover

process. This delay can occur due to many reasons related to the ASWM, CSM, APM and

cranes which will be discussed further in the report.

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4.2.1.2 CATHODE STRIPPI�G MACHI�E (CSM):

4.2.1.2.1 Purpose:

To strip copper from mother blanks and wash copper cathodes.

4.2.1.2.2 Operating Procedure of CSM:

Crane places the set cathode plates on the loading beam. Loading wagon picks up a set of

plates and transfers into the wash conveyor. The wash conveyor transports the plates through

the wash chamber, where acid solution and impurities are washed off the cathode surface.

The water temperature is kept high enough to ensure sufficient washing of cathodes. The

wash water returned to circulation tanks.

After completed washing deposited plates moves up to the end of the conveyor

Where transfer device-1 transfers the plate to transverse conveyor. Standing on the transverse

conveyor the plate moves sideways to the flexing device. The flexing device consists of two

hydraulic cylinders, located, one on each side of the transverse conveyor. These cylinders

will one at a time flex the plate sideways & thereby open up the top portion of the deposited

copper on the stainless steel plates.

After completed flexing operation, the plates continue into the chiselling station. The chisels

are moved in to the openings obtained in the flexing operations between the copper plate and

the mother blank. This force the copper plates to fall outward app 15 degrees where the plates

are gripped by grippers mounted in the cathode downender. The down ender tilts the cathode

further 75 degrees and bring into the horizontal position.

Meanwhile the empty mother blanks moves sideways on the transverse conveyor to the

empty station where it can be inspected for any defect init. After this station it reaches

transfer device-2 which transfers the mother blanks on to the discharge conveyor. There after

unloading wagon picks up the half load & transports to the unloading beams.

After down ender has tilted cathodes into the horizontal position the cathodes are dropped on

cathode conveyor. Again down ender returns to vertical position ready to down end new

cathodes.

The cathode conveyor transports the cathodes towards the cathode stacker, during this

transport the cathode plate passes through sampling station &corrugating press. The

corrugating press will press a pattern in the cathodes. The sampling press punches out button

shaped sample for testing.

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27 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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�OTE:

Usually the machine is operated in auto mode, but sometimes it can be operated in manual

mode by giving pulse for each operation. This operation is carried out for the purpose of

correcting faults, maintenance, or positioning the cathode plates prior to running in auto

mode. One more mode called local mode, which is used for operating traverse conveyor

the required distance. Also downender section can be operated with help of panel box besides

downender.

4.2.1.2.3 STA�DARD MACHI�E HOURS REQUIRED:

The machine speed for CSM is 500 plates/hr.

Total no of plates in one bank =55plate X 28 cells

Standard time for stripping one bank = 1540/500

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IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

Usually the machine is operated in auto mode, but sometimes it can be operated in manual

ving pulse for each operation. This operation is carried out for the purpose of

correcting faults, maintenance, or positioning the cathode plates prior to running in auto

mode. One more mode called local mode, which is used for operating traverse conveyor

the required distance. Also downender section can be operated with help of panel box besides

FLOW DIAGRAM OF CSM

Fig 4.1

4.2.1.2.3 STA�DARD MACHI�E HOURS REQUIRED:

The machine speed for CSM is 500 plates/hr.

bank =55plate X 28 cells = 1540 plates

Standard time for stripping one bank = 1540/500

= 3hrs 4mins 48sec

Summer Internship Report 2010

IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

Usually the machine is operated in auto mode, but sometimes it can be operated in manual

ving pulse for each operation. This operation is carried out for the purpose of

correcting faults, maintenance, or positioning the cathode plates prior to running in auto

mode. One more mode called local mode, which is used for operating traverse conveyor to

the required distance. Also downender section can be operated with help of panel box besides

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28 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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Major areas that cause the functioning delay for CSM and the consolidated occurrence for the

period of NOV’09-MARCH’10 is provided below:

AREAS TOTAL TIME PERCENTAGE

CUMULATIVE

PERCENTAGE

Wagon 2146 17.39341871 17.39341871

downender 2042 16.55049441 33.94391311

edge strip 1716 13.90825093 47.85216405

miscellaneous 1554 12.59523424 60.44739828

Chisel 1512 12.2548225 72.70222078

thin deposit 1147 9.296482412 81.99870319

Bottom envelope 1084 8.785864808 90.784568

transverse conveyor 292 2.36667207 93.15124007

transfer device 286 2.318041822 95.46928189

Cathode conveyor 266 2.155940995 97.62522289

stacker 211 1.710163722 99.33538661

discharge conveyor 42 0.340411736 99.67579835

weigh scale 27 0.218836116 99.89463446

hydraulic pump 13 0.105365537 100

wash conveyor 0 0 100

total delay 12338

Table 4.1

4.2.1.2.4 PARETO A�ALYSIS:

Fig 4.2

0

20

40

60

80

100

120

Series1

Series2

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29 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

Major delay factor for CSM is the wagon area. Problems faced in the wagon area are:

1. Unloading wagon station sensor not working.

2. Loading wagon down operation not working

3. Loading wagon hoist gear box shaft pin damaged

4. Loading wagon not working in auto-mode

5. plates were jammed at unloading wagon

6. Loading wagon was not placing the plates at wash conveyor.

Second major delay area is downender. The faults that usually occur in this area are:

1. L D/E 2 gripper hose punctured

2. R D/E2 gripper hose connector broken

3. R D/E2 tilt cylinder oil leakage

Third most significant delay area is edge strip. Major delay factors in edge strip are:

1. plate stucked at chisel

2. plate fallen at chisel

3. Nodule plate jammed in unloading wagon

4. Damaged edge strip plate fallen at chisel

5. more no. of rejects due to damaged edge strip

6. Damaged plates were stucked @ chisel unit

The delay problems are also divided among the departments as mechanical, electrical,

process, instrumentation and cranes. The consolidated delay distribution of the departments

from NOV’09-MARCH’10 is provided below:

DEPARTME�T

TOTAL

TIME PERCENTAGE

CUMULATIVE

PERCENTAGE

process 5641 45.72053817 45.72053817

Mechanical 4303 34.87599287 80.59653104

Instrumentation 1371 11.11201167 91.70854271

Electrical 1023 8.291457286 100

Table 4.2

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30 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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4.2.1.2.5 PARETO A�ALYSIS:

Fig 4.3

As we see in the Pareto chart, the major delay occurs in the process. Some of the process

delays are:

1. Thin Deposit- multi flexing and chiselling done

2. Edge strip- No of rejects were more

3. Wagon- plates were jammed @ unloading wagon

4. Chisel- plates were jammed

5. Bottom Envelope- fallen at chisel unit

6. Transfer Device- Damaged edge strip stucked at chisel and TD1

The second major cause of delays comes under mechanical. Some of these delays are:

1. Downender- L - D/E 1 gripper in/out cylinder hose got punctured

2. Misc- Strapping tool problem

3. transverse conveyor- L flexing unit hose got puncture

4. Cathode Conveyor- Tension got loose and adjusted

Under mechanical delays, downender is the critical area where most of the problem occurs.

0

20

40

60

80

100

pro

cess

Me

cha

nic

al

Inst

rum

en

tati

on

Ele

ctri

cal

Series1

Series2

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31 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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4.2.1.3 A�ODE PREPARATIO� MACHI�E (APM):

4.2.1.3.1 Operating Procedure of APM:

To attain verticality of the anode in the cell and smooth contact of the anodes with bus bar

The anodes to be prepared are transported by the forklift to the receiving station of APM. The

anodes are centred on the receiving station by the aligning press and they are moved to the

transfer device number (TD1) by the receiving conveyor. The TD1 lifts the anodes one by

one from the receiving conveyor to lug press. On the lug press, the lugs of the anodes are

pressed horizontally.

From the lug press, the TD1 lifts the anodes to the weighing unit. On the weighing unit the

anodes are weighed and sorted as rejected and accepted anodes. From the weighing unit, the

TD1 lifts the anodes to the beginning of the traverse conveyor. The traverse conveyor moves

the anode through the body press and accepted anode is pressed vertically.

From the end of the traverse conveyor rejected anodes are lifted to the reject conveyor by the

reject feeder. The reject feeder moves the rejected anodes to the reject removing station.

From the end of traverse conveyor the accepted anodes are lifted to the milling conveyor by

TD2. The milling conveyor moves the anodes through milling unit to the lifting conveyor. In

the milling conveyor the lugs of the anodes are milled. The lifting conveyor moves the

anodes from the milling conveyor to the spacing conveyor. The spacing conveyor and the

spacing devices space the anodes in the spacing conveyor, then the transferring wagon lifts

55 anodes at the time and moves them to the distribution beams. From the beam the anodes

are lifted by the over head cranes.

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32 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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FLOW DIAGRAM OF APM

Fig4.4

4.2.1.3.2 STA�DARD MACHI�E HOURS REQUIRED:

The machine speed for APM is 350 anodes /hr.

Total no of anodes in one bank =56anodes X 28 cells

= 1540 anodes

Standard time for producing anodes for one bank = 1540/350

= 4hrs 24mins

ANODES FROM TTK

LUG PRESS (FLATTEN THE LUG)

WEGHING UNIT

BODY PRESS UNIT (STRIGHTEN THE

BODY, MEASURE ANODE PHYSICAL

DIMENSION

REJECTION STATION (ANODES

REJECTED ON THE BASIS OF

WEIGHT, CONICAL SHAPES, LUG

THICKNESS

LUG SIDE MILLING FOR ACCEPTED

ANODES (MILLS THE UNDER SIDE OF

THE LUG)

SET OF 56 OR 54 ANODES FOR A

CELLHOUSE

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33 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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Major areas that cause the functioning delay for APM and the consolidated occurrence for the

period of NOV’09-MARCH’10 is provided below:

AREA TOTLA TIME PERCENTAGE

CUMULATIVE

PERCENTAGE

Milling conveyor 830 31.8251534 31.8251534

TD1 458 17.5613497 49.3865031

Lifting conveyor 295 11.3113497 60.6978528

Traverse conveyor 280 10.7361963 71.4340491

TD2 165 6.32668712 77.7607362

Unloading wagon 150 5.75153374 83.5122699

power pack 150 5.75153374 89.2638037

Spacing conveyor 145 5.55981595 94.8236196

reject .conveyor 60 2.3006135 97.1242331

Receiving. Conveyor 40 1.53374233 98.6579755

miscellaneous 35 1.34202454 100

total 2608

Table 4.3

4.2.1.3.3PARETOA�ALYSIS:

Fig 4.5

0102030405060708090

100

Mil

lin

g c

on

ve

yo

r

TD

1

Lift

ing

co

nve

yo

r

Tra

ve

rse

co

nve

yo

r

TD

2

Un

loa

din

g w

ag

on

po

we

r p

ack

Sp

aci

ng

co

nve

yo

r

reje

ct .

con

ve

yo

r

rece

ivin

g.c

on

ve

yo

r

mis

cell

an

eo

us

Series1

Series2

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34 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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The major factor for the delay in time is milling conveyor area. Some of the most commonly

occurring problems of this area are:

1. Milling conveyor alignment got disturbed

2. Improper milling

3. Anode side milling sensor non sensing

The second major problem area in the APM is transfer device. Some of the common

problems occurring in the TD1 are:

1. lug bend anode fallen @td1

2. Due to improper chipping anodes fallen in td 1

The third most important area which pools into the major delays in the APM is lifting

conveyor. The common problems occurring in this area is anode fallen in lifting conveyor.

The delay problems are also divided among the departments as mechanical, electrical,

process, instrumentation and cranes. The consolidated delay distribution of the departments

from NOV’09-MARCH’10 is provided below:

DEPARTME�T

TOTAL

TIME RECENTAGE

CUMULATIVE

PERCENTAGE

PROCESS 1545 59.2407975 59.2407975

I�STRUME�TATIO� 733 28.1058282 87.3466258

MECHA�ICAL 330 12.6533742 100

ELECTRICAL 0 0 100

Table 4.4

4.2.1.3.4 PARETO A�ALYSIS:

Fig 4.6

0

20

40

60

80

100

PR

OC

ES

S

INS

TR

UM

EN

TA

TIO

N

ME

CH

AN

ICA

L

ELE

CT

RIC

AL

Series1

Series2

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35 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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As we observe the Pareto chart we find that In APM the major delay occurs under process.

Some of the most commonly occurring delays are:

1. TD1- Anode fallen at TD1 (Frequently)

2. Milling conveyor- Anode stucked at milling conveyor.

3. Receiving Conveyor- Anode lug got broken in receiving conveyor.

4. Powerpack- Cooling water outlet pipe line choke up.

5. Lifting conveyor- Anode fallen in lifting conveyor.

The second most common delay is occurring under the instrumentation department. Some of

them are as follows:

1. Milling conveyor- home position adjustment.

2. TD1- permissive sensor not sensing.

3. Unloading wagon- unloading wagon home position sensor adjusted.

4.2.1.4 A�ODE SCRAP WASHI�G MACHI�E (ASWM):

4.2.1.4.1 Operating Procedure of ASWM:

Before starting the machine, oil in power packs is to be checked. Check wash water

temperature, whether wash pump valves are opened or not. Anode scraps are placed on the

loading beam by crane. Wagon lifts the set and places it on the receiving conveyor. From the

receiving conveyor scrap is transferred to the wash conveyor by a transfer device. Wash

conveyor moves through wash chamber that consist two pipelines for washing, one on the

topside and one at the bottom side. Each line is having seven nozzles through which water is

sprayed on the scrap so that slime adhering to the scrap gets washed and goes to the tank. In

the wash conveyor scrap moves horizontally and after washing it passes through dryer so as

to wipe water from the scrap. From the wash chamber scrap is moved by stacker and stacks it

on the stacking table. The stacking table rotates 900 anti clock wise after every two stack so as

to make uniform bundle. Each stack consists of two scraps.

After completing the number of stack set in stack selector switch the table goes down. A set

of fork comes in and takes away the bundle of scraps from the table to the stack conveyor.

From the stack conveyor forklift unload the bundle and keep it scrap yard. The scraps are

weighed for individual banks to find out scrap % for the particular bank. Wash water

temperature is maintained at 800C for effective washing. Temperature is maintained with help

of steam. After one bank washing is over wash water with slime sent to storage tank and tank

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36 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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is cleaned. Fresh water is filled for next washing. Machine is usually operated in auto mode.

It can be operated in manual and local mode when ever required.

FLOW DIAGRAM OF ASWM

Scrap anode from cellhouse by crane

Washing

Stacking & bundling

To SMELTER for recasting as anodes

4.2.1.4.2 STA�DARD MACHI�E HOURS REQUIRED:

The machine speed for ASWM is 350 anodes /hr.

Total no of SPENT ANODES in one bank =56anodes X 28 cells

= 1540 anodes

Standard time for washing spent anodes for one bank = 1540/350

= 4hrs 24mins

Major areas that cause the functioning delay for APM and the consolidated occurrence for the

period of NOV’09-MARCH’10 is provided below:

AREAS TOTAL TIME PERCENTAGE

CUMULATIVE

PERCENTAGE

WAGO� 880 29.38230384 29.38230384

WASH CO�VEYOR 580 19.36560935 48.74791319

DISCHARGE CO�VEYOR 318 10.61769616 59.36560935

TD 305 10.1836394 69.54924875

STACKER 290 9.682804674 79.23205342

STACK TABLE 190 6.343906511 85.57595993

CO�TROL PA�EL 125 4.173622705 89.74958264

MISCELLA�EOUS 100 3.338898164 93.0884808

RECEIVI�G CO�VEYOR 97 3.238731219 96.32721202

FLAPPER 75 2.504173623 98.83138564

WASH CHAMBER 35 1.168614357 100

TOTAL 2995

Table 4.5

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37 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

4.2.1.4.3 PARETO A�ALYSIS:

Fig 4.7

In ASWM the most common area where the majority of the problems occur is wagon. Of the

total delay time wagon has the largest share. Some of the common and frequently occurring

problem in wagon area is:

1. Loading wagon hoist not working.

2. Loading wagon trolley damaged.

3. Anode stucked at unloading wagon.

4. Unloading wagon home position sensor malfunctioning.

Secondly, the wash conveyor area is more prone to malfunction and cause the delays. Some

of the commonly occurring delays in wash conveyor are:

1. Wash conveyor stuck up.

2. Wash conveyor link got broken.

3. Weak scrap stucked @ wash .conveyor.

0102030405060708090

100

WA

GO

N

WA

SH

CO

NV

EY

OR

DIS

CH

AR

GE

CO

NV

EY

OR

TD

ST

AC

KE

R

ST

AC

K T

AB

LE

CO

NT

RO

L P

AN

EL

MIS

CE

LLA

NE

OU

S

RE

CE

IVIN

G C

ON

VE

YO

R

FLA

PP

ER

WA

SH

CH

AM

BE

R

Series1

Series2

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38 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

The delay problems are also divided among the departments as mechanical, electrical,

process, instrumentation and cranes. The consolidated delay distribution of the departments

from NOV’09-MARCH’10 is pro

DEPARTME�T

PROCESS

MECHA�ICAL

ELECTRICAL

I�STRUME�TATIO�

4.2.1.4.4 PARETO

As we see in the Pareto chart, the major delay occurs in the process. Some of the process

1. Stacker- Week scraps stucked at stack table.

2. Wash conveyor- Week scrap stucked at wash conveyor.

3. Receiving conveyor- Bridge broken

4. Stack Table- Week scrap stucked at stack table.

5. TD- scraps continuous fallen in TD.

The second major cause of delays comes under mechanical. Some of these delays are:

1. Wash conveyor- Wash conveyor link got cut.

2. Stacker- Flapper topside guider got bent.

3. Wash conveyor- wash conveyor guider bent.

0

20

40

60

80

100

PROCESS MECHANICAL

Summer Internship Report

IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

The delay problems are also divided among the departments as mechanical, electrical,

process, instrumentation and cranes. The consolidated delay distribution of the departments

MARCH’10 is provided below:

TOTAL TIME PERCENTAGE

1108 36.99499165

977 32.62103506

750 25.04173623

160 5.342237062

Table 4.6

4.2.1.4.4 PARETO A�ALYSIS:

Fig 4.8

As we see in the Pareto chart, the major delay occurs in the process. Some of the process

delays are:

Week scraps stucked at stack table.

Week scrap stucked at wash conveyor.

Bridge broken scrap stucked at receiving conveyor.

Week scrap stucked at stack table.

scraps continuous fallen in TD.

The second major cause of delays comes under mechanical. Some of these delays are:

Wash conveyor link got cut.

Flapper topside guider got bent.

wash conveyor guider bent.

MECHANICAL ELECTRICAL INSTRUMENTATION

Summer Internship Report 2010

IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

The delay problems are also divided among the departments as mechanical, electrical,

process, instrumentation and cranes. The consolidated delay distribution of the departments

CUMULATIVE

PERCENTAGE

36.99499165

69.61602671

94.65776294

100

As we see in the Pareto chart, the major delay occurs in the process. Some of the process

scrap stucked at receiving conveyor.

The second major cause of delays comes under mechanical. Some of these delays are:

INSTRUMENTATION

Series1

Series2

Page 39: my summer internship report

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39 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

4.2.1.5 CRA�ES

WMI CRA�ES LTD., one of the leading manufacturers of Cranes in India, has been

pioneers in the manufacture of Material Handling Equipment in the Country. Today WMI`s

name is synonymous with heavy lifting. WMI’s equipment can be found in all parts of the

Country, helping others get their jobs done faster and easier. An array of WMI cranes have

been developed, each crane a creative solution to special handling problem. These cranes are

extensively used for handling materials in machine shops, structural shops, chemical plants,

fertilizer plants, cement factories, paper plants, stock yards, Dams, and construction sites. All

WMI cranes are engineered and built to meet the requirements of all the users. Thus tailor-

made for the job, these units handle the loads with utmost ease of maintenance efficiency and

economy.

4.2.1.5.1 E. O. T. CRA�ES

These cranes move on the gantry rail fixed to gantry girder. In this crane 3 common motions

are incorporated - hoist, cross travel and long travel. In addition to these common motions

some time depending on duty, Aux. Hoist is incorporated. Hoist and C. T. Machineries are

fitted on common frame called crab which moves on crane girders.

In refinery, there are two EOT cranes. These cranes play major role in the overall functioning

of the refinery whether it be cellhouse, CSM, APM, or ASWM. Even in regular activities

other than processes the crane plays a significant role in the refinery. Any delay caused by the

crane causes a major delay in all the machineries and the processes.

Some of the major delays occurred in CRANE-1 in NOV-09 TO MARCH-10 are given

below:

DELAY AREAS TOTAL

LT 1292

MH 1105

DSL 730

DRIP TRAY 311

HOOK 145

COMPRESSOR 113

REMOTE PA�EL 60

CT 40

AH 0

LI�K 0

SPREADER BEAM 0

Table 4.7

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40 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

4.2.1.5.2 PARETO A�ALYSIS:

In crane-1 the area which has frequent problem delay is the long travel. Some of the common

delays in long travel are as follows:

1. LT got tripped.

2. LT PLC problem.

3. LT slow movement.

4. LT brake problem.

5. LT 2 drives taking delay.

The second area which causes the major delay in crane

problems are as follows:

1. MH got tripped.

2. MH not getting down (Due to drip tray

3. MH brake not good.

Third most delay prone area is the DSL. Some common problems occurring in DSL are:

1. Remote signal cut off problem.

2. Whole crane got tripped.

0102030405060708090

100

LT

MH

DS

L

DR

IP T

RA

Y

Summer Internship Report

IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

4.2.1.5.2 PARETO A�ALYSIS:

Fig 4.9

1 the area which has frequent problem delay is the long travel. Some of the common

delays in long travel are as follows:

LT 2 drives taking delay.

The second area which causes the major delay in crane-1 is main hoist. Some of the common

MH not getting down (Due to drip tray L/S activated).

Third most delay prone area is the DSL. Some common problems occurring in DSL are:

Remote signal cut off problem.

Whole crane got tripped.

DR

IP T

RA

Y

HO

OK

CO

MP

RE

SS

OR

RE

MO

TE

PA

NE

L

CT

AH

LIN

K

SP

RE

AD

ER

BE

AM

Summer Internship Report 2010

IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

1 the area which has frequent problem delay is the long travel. Some of the common

1 is main hoist. Some of the common

Third most delay prone area is the DSL. Some common problems occurring in DSL are:

SP

RE

AD

ER

BE

AM

Series1

Series2

Page 41: my summer internship report

Summer Internship Report 2010

41 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

The delay problems are also divided among the departments as mechanical, electrical,

process, instrumentation and cranes. The consolidated delay distribution of the departments

from NOV’09-MARCH’10 is provided below:

DELAY AREAS TOTAL

MECHA�ICAL 1368

ELECTRICAL 3196

I�STRUME�TATIO� 12

PROCESS 178

CRA�ES 0

Table 4.8

4.2.1.5.3 PARETO A�ALYSIS:

Fig 4.10

Electrical problems are the major delay causes in the crane-1. Some of the common

mechanical problems faced by the crane-1 are as follows:

1. MH- M.H got tripped.

2. DSL- Remote signal cut off problem.

3. Drip tray- Drip tray got tripped.

4. CT- CT got tripped

Secondly, mechanical problems cause delay in large number for crane-1. Some of these

problems are:

1. LT- abnormal sound in rails.

2. Link- Cathode hook link got broken.

3. Hook- Anode hook struck up problem.

0

20

40

60

80

100

ELE

CT

RIC

AL

ME

CH

AN

ICA

L

PR

OC

ES

S

INS

TR

UM

EN

TA

TI

ON C

RA

NE

S

Series1

Series2

Page 42: my summer internship report

42 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

Some of the major delays oc

below:

DELAY AREAS

COMPRESSOR

SPREADER BEAM

DRIP TRAY

REMOTE PA�EL

4.2.1.5.4 PARETO A�ALYSIS:

As we see the Pareto chart, it is clear that in crane

main hoist. Some of the problems frequently occurring in the main hoist are as follows:

1. MH brake not good.

2. M.H got tripped.

0

10

20

30

40

50

60

70

80

90

100

MH

CO

MP

RE

SS

OR

AH

DS

L

Summer Internship Report

IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

Some of the major delays occurred in CRANE-2 in NOV-09 TO MARCH

DELAY AREAS TOTAL

MH

COMPRESSOR

AH

DSL

CT

LT

HOOK

LI�K

SPREADER BEAM

DRIP TRAY

REMOTE PA�EL

Table 4.9

4.2.1.5.4 PARETO A�ALYSIS:

Fig 4.11

the Pareto chart, it is clear that in crane -2 the major problem causing area is the

main hoist. Some of the problems frequently occurring in the main hoist are as follows:

DS

L

CT LT

HO

OK

LIN

K

SP

RE

AD

ER

BE

AM

DR

IP T

RA

Y

RE

MO

TE

PA

NE

L

Summer Internship Report 2010

IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

09 TO MARCH-10 are given

TOTAL

582

160

145

135

97

80

47

45

20

0

0

2 the major problem causing area is the

main hoist. Some of the problems frequently occurring in the main hoist are as follows:

RE

MO

TE

PA

NE

L

Series1

Series2

Page 43: my summer internship report

Summer Internship Report 2010

43 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

The delay problems are also divided among the departments as mechanical, electrical,

process, instrumentation and cranes. The consolidated delay distribution of the departments

from NOV’09-MARCH’10 is provided below:

DELAY AREAS TOTAL

ELECTRICAL 1268

PROCESS 94

MECHA�ICAL 77

I�STRUME�TATIO� 0

CRA�ES 0

Table 4.10

4.2.1.5.5 PARETO A�ALYSIS:

Fig 4.12

Electrical problems are the major delay causes in the crane-1. Some of the common

mechanical problems faced by the crane-1 are as follows:

1. MH- M.H got tripped.

2. DSL- Remote signal cut off problem.

3. Drip tray- Drip tray got tripped.

4. CT- CT got tripped

In crane-2 the second delay causing problem is process delays. Some of the common process

delays is Hook- Cathode hook link got broken/bend.

0102030405060708090

100

ELE

CT

RIC

AL

PR

OC

ES

S

ME

CH

AN

ICA

L

INS

TR

UM

EN

TA

TIO

N

CR

AN

ES

Series1

Series2

Page 44: my summer internship report

Summer Internship Report 2010

44 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

4.2.1.6 OPERATOR SKILLS A�D EXPERIE�CE: operators handling the various

machines mentioned above are also reponsible for the time efficiency. The higher the skill

and experience of the operator the smoother the various activities required to carry out the

process takes place. Crane operators and ASWM and CSM operators should be highly

efficient and with enough knowledge to understand the critical areas where the usual delay

occurs and try to work out ways to tackle them. Regular training and knowledge sharing

sessions are essential for them.

4.2.1.7 FORKLIFT AVAILABILITY: Forlifts availability to load the APM machine, to

remove the rejected anodes, to shift the spent anodes from ASWM, to bring the fresh anode

from the despatch yard, to carry the cathode plates from CSM to the Warehouse/front yard is

important for the time efficiency. Due to the non availability of the forklifts the processes

linked with it are also affected and this later affects the time efficiency. Proper planning is

required for the proper utilization of the forklifts and scheduling the work. This will help in

availability of the forklifts for the major activities essential and important to time effieciency.

4.2.1.8 PREVE�TIVE MAI�TE�A�CE: For the effective functioning of all the

machinary, maintenanace is a very essential aspect. Scheduled and preventive maintenance is

necessary. Time efficiency reduces when the machines are not properly maintained and

breakdown occurs. Because of lack of preventive maintenance the machines may malfunction

during the process and this will lead to delay.

4.2.1.9 LABOUR AVAILABILITY A�D SKILLS: labours are required to perform various

activities in the cellhouse preparation and machine functioning. Unavailability of labours

during the process of changeover and machine operations leads to delay and affects the time

efficiency. Also the skill set possessed by the labour to do the particular job plays a critical

role in the time delay. If the labour is new and inexperienced then the cleaning process of the

cell house and machinery gets delayed. Willingness of the labour to work also plays a very

essential role in the performance of his duties.

Page 45: my summer internship report

Summer Internship Report 2010

45 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

4.2.2 STRIPPI�G

Stripping is the process of removing the cathode copper plates from the SS plates which were

deposited during the electrolysis process. For each bank stripping process is carried out thrice

(three crop cycle). For the stripping process the machine used is CSM. For the purpose of

stripping each bank in its completion of one crop cycle is logged out and plates carried to

CSM. Stripping process on an average takes 4.3hrs which higher than the standard i.e. 3hrs

4mins. This delay in the stripping time iss due to the various factors influencing the process.

They are:

1. CSM PERFORMANCE *

2. CRANE PERFORMANCE *

3. OPERATORS SKILL AND EXPERIENCE*

4. FORKLIFT AVAILABILITY*

5. PREVENTIVE MAINTENANCE*

6. LABOUR AVAILABILITY AND SKILLS* All of these factors have been discussed under the changeover. By improving the

performance of each of these factors the time delay can be reduced and the stripping time can

be brought close to its standard time and thus increase the time efficiency by logging the bank

in the circuit and starting the copper deposition by electrolysis process.

4.2.3 RECTIFIERS

In the refinery, there are four rectifiers used for the conversion of A.C to D.C for the entire

cellhouse system.rectifiers used here are: One 15KA Rectifier and other 35 KA rectifier.

Due to tripping of the rectifier the entire bank gets logged out and this tends to the stoppage

in the production of the copper and reduces the time efficiency of the refinery unit.

4.2.4 MISCELLA�EOUS

There are some factors which are not in control of the refinery unit but affect the output of the

unit. Some of these factors are:

1. Anode availability: as per the availability of the anodes the cells can be utilized for

the production of copper. Due various reasons in the smelter, the production of anodes

fluctuates and thus the availability for the refinery unit also changes. This in turn

reduces the number of banks under production and the time efficiency reduces.

2. Demand for copper in the market: according to the market demand the planning for

production is done by the higher management. If the requirement fo r the copper is

reduced then the production of the copper is also reduced. Thus some of the banks are

logged off and no production takes place thus the time efficiency of the unit reduces.

Page 46: my summer internship report

Summer Internship Report 2010

46 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

PROJECT 2: FORKLIFT MOTIO� STUDY A�D UTILIZATIO�

4.3 ABOUT THE FORKLIFTS

A forklift (also called a lift truck, a high/low, a stacker-truck, trailer loader, sideloader, fork

truck, tow-motor or a fork hoist) is a powered industrial truck used to lift

and transport materials. The modern forklift was developed in the 1920s by various

companies including the transmission manufacturing company Clark and the hoist

company Yale & Towne Manufacturing. The forklift has since become an indispensable

piece of equipment in manufacturing and warehousing operations.

The middle 19th century through the early 20th century saw the developments that led to

today's modern forklifts. The Pennsylvania Railroad in 1906 introduced battery powered

platform trucks for moving luggage at their Altoona, Pennsylvania train station. World War

I saw the development of different types of material handling equipment in the United

Kingdom by Ransoms, Sims and Jeffries of Ipswich. This was in part due to the labour

shortages caused by the war. In 1917Clark in the United States began developing and using

powered tractor and powered lift tractors in their factories. In 1919 the Towmotor Company

and Yale & Towne Manufacturing in 1920 entered the lift truck market in the United States.

Continuing development and expanded use of the forklift continued through the 1920s and

1930s. World War II, like World War I before, spurred the use of forklift trucks in the war

effort. Following the war, more efficient methods for storing products in warehouses were

being implemented. Warehouses needed more manoeuvrable forklift trucks that could reach

greater heights. New forklift models were made that filled this need. In

1956 Toyota introduced its first lift truck model, the Model LA, in Japan and sold its first

forklift in the United States in 1967.

Forklifts are rated for loads at a specified maximum weight and a specified forward centre of

gravity. This information is located on a nameplate provided by the manufacturer, and loads

must not exceed these specifications. In many jurisdictions it is illegal to remove or tamper

with the nameplate without the permission of the forklift manufacturer.

An important aspect of forklift operation is that most have rear-wheel steering. While this

increases manoeuvrability in tight cornering situations, it differs from a driver’s traditional

experience with other wheeled vehicles. While steering, as there is no caster action, it is

unnecessary to apply steering force to maintain a constant rate of turn.

Another critical characteristic of the forklift is its instability. The forklift and load must be

considered a unit with a continually varying centre of gravity with every movement of the

load. A forklift must never negotiate a turn at speed with a raised load,

Page 47: my summer internship report

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47 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

where centrifugal and gravitational forces may combine to cause a disastrous tip-over

accident. The forklift are designed with a load limit for the forks which is decreased with fork

elevation and undercutting of the load (i.e. load does not butt against the fork "L"). A loading

plate for loading reference is usually located on the forklift. A forklift should not be used as a

personnel lift without the fitting of specific safety equipment, such as a "cherry picker" or

"cage".

FIG 4.13

4.4 FORKLIFTS I� EOU:

Export Oriented Unit (EOU) of Sterlite Industries India Limited has ten Forklifts on contract

for its varied usage inside the premises. The allocation of the forklifts is done in the following

manner:

1. Refinery -3ton forklifts (2 nos.)

5ton forklifts (2 nos.)

2. Logistics -3ton forklifts (1 nos.)

5ton forklifts (2 nos.)

3. CCR -3ton forklifts (1 nos.)

5ton forklifts (1 nos.)

4. Dore -3ton forklifts (1 nos.) (*not considered in this study)

Page 48: my summer internship report

Summer Internship Report 2010

48 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

4.4.1 REFI�ERY

In refinery division of EOU, the forklifts core activities are:

1. Brining the fresh anodes from despatch yard to the anode yard.

2. Taking the spent anode from anode yard to the smelter.

3. Taking the cathode from CSM to CSM yard after weighment.

Various miscellaneous activities are also performed by these forklifts. They are:

1. Handling and shifting DO Briquette from DO plant to smelter.

2. Spent anode arrangement in the yard.

3. Handling and shifting of DO powder, copper nodules, milling chips.

4. Miscellaneous scarp handling

4.4.1.1 TIME CALCULATIO�S

Shifting Fresh Anodes from despatch yard to anode yard include one more activity of

weighing the anodes this activity starts from chipping yard to weigh scale and weigh scale to

despatch yard storing area and from despatch yard to anode yard.

(FRESH A�ODE)

TOTAL

TIME

S.�O

LIFTI�G

TIME

CHIPPI�G

YARD TO

WEIGH

SCALE

WEIGH

SCALE

WAITI�G

TIME

WEIGH

SCALE TO

DESPATCH

ZO�E

LAYI�G

TIME

DESPATCH

ZO�E TO

CHIPPI�G

YARD MI� SEC

1 12 40 15 25 8 35 2 15

2 10 45 10 35 7 30 2 17

3 10 50 10 15 15 40 2 20

4 15 40 15 20 15 35 2 20

5 20 47 12 25 10 40 3 34

AVERAGE 2 21.2

Table 4.11

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49 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

5-TO� FORKLIFT

TOTAL

TIME

S.�O

LIFTI�G

TIME

DESPATCH

ZO�E TO

A�ODE

YARD

LAYI�G

TIME

A�ODE

YARD TO

DESPATCH

ZO�E MI� SEC

1 15 70 30 50 3 45

2 10 80 15 45 2.5 30

3 5 55 20 40 2 0

4 10 50 15 45 2 0

5 15 60 17 50 2 22

TOTAL 2 19

3-TO� FORKLIFT

TOTAL

TIME

S.�O

LIFTI�G

TIME

DESPATCH

ZO�E TO

A�ODE

YARD

LAYI�G

TIME

A�ODE

YARD TO

DESPATCH

ZO�E MI� SEC

1 20 60 20 40 2 20

2 10 65 45 45 2.8 45

3 15 50 45 40 2.5 30

4 10 70 20 50 2.5 30

5 20 75 20 45 3 40

TOTAL 2 33

Table 4.12

Presently no weighment is done in the anode yard due to some problem in weigh scale.

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50 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

Shifting Spent Anode includes carrying the spent anode from anode yard to smelter yard

passing three check posts.

Table 4.13

Shifting Cathode includes carrying the cathode from the CSM machine to weigh scale and

from there to the CSM yard

3-TON FORKLIFT of CSM TOTAL TIME

S.NO

LIFTING

TIME

CSM TO

WEIGH

SCALE

WAITING

TIME AT

WEIGH

SCALE

WEIGH

SCALE TO

CSM YARD MIN SEC

1 15 10 80 50 2.6 35

2 10 15 90 45 2.7 40

3 10 17 80 40 2.45 27

4 10 20 70 45 2.42 25

5 15 15 65 50 2 25

TOTAL 2.51 30.4

Table 4.14

TOTAL

TIME AVERAGE

S.N

O

FO

RK

LIF

T T

YP

E

AN

OD

E Y

AR

D T

O

CH

EC

K P

OS

T-1

WA

ITIN

G T

IME

IN

CH

EC

KP

OS

T-1

CH

EC

KP

OS

T-1

TO

WE

IGH

SC

ALE

WA

ITIN

G T

IME

IN

WE

IGH

SC

ALE

WE

IGH

SC

ALE

TO

CH

EC

KP

OS

T-2

WA

ITIN

G T

IME

IN

CH

EC

KP

OS

T-2

CH

EC

KP

OS

T-2

TO

CH

EC

KP

OS

T-3

WA

ITIN

G T

IME

IN

CH

EC

KP

OS

T-3

CH

EC

KP

OS

T-3

TO

SM

ELT

ER

YA

RD

SM

ELT

ER

YA

RD

TO

AN

OD

E Y

AR

D

MIN

SE

C

MIN

SE

C

1

3-TON

25 5 30 50 8 25 50 1 30 120 5.7 44

5.8 35

.5

2 22 8 30 55 7 23 47 3 24 106 5.4 25

3 28 7 28 45 10 35 60 1 30 115 6.0 59

4 30 10 32 60 11 25 50 3 28 125 6.2 14

5

5-TON

20 8 20 45 8 30 40 1 25 105 5.0 2

5 17 6 15 10 25 60 10 35 45 2 20 110 5.5 32

7 20 7 27 50 10 30 60 3 20 105 5.5 32

8 20 10 25 40 5 30 45 2 20 105 5.0 2

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51 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

4.4.1.2 UTILIZATIO� OF FORKLIFTS

3-TON FORKLIFT DEDICATED TO CSM YARD HR MIN SEC

MAXIMUM OUTPUT IN ONE STRIPPING(BUNDLES) 84

TIME FOR SHIFTING 1 BUNDLE FROM MACHINE TO CSM YARD 150

NO OF STRIPPING IN A DAY 3

TIME FOR SHIFTING 84 BUNDLES IN EACH STRIP(3) 37800 10.5 30 0

20% OF TOTAL AVAILABLE HOUR FOR MISCELLANEOUS 17280 4.8 48

-8.5E-

13

30 MIN PER SHIFT REFRESHMENT TIME 5400 1.5 30 0

30 MIN PER SHIFT BREAKDOWN TIME 5400 1.5 30 0

TOTAL TIME 65880 18.3 18

2.56E-

12

UTILIZATION OF FORKLIFT (%) 76.25

Table 4.15

CONSIDERING CHANGE OVER N

STRIPPING TIME SEPERATELY

MAXIMUM OUTPUT IN ONE STRIPPING(BUNDLES) 84 HR MIN SEC

AVERAGE SECONDSS USED FOR 2 STRIPPING 31680 8.8 48

2.56E-

12

AVERAGE STRIPPING TIME FOR A CHANGEOVER 30600 8.5 30 0

10% OF TOTAL AVAILABLE HOUR FOR MISCELLANEOUS 8640 2.4 24

-4.3E-

13

30 MIN PER SHIFT REFRESHMENT TIME 5400 1.5 30 0

30 MIN PER SHIFT BREAKDOWN TIME 5400 1.5 30 0

TOTAL TIME 81804 22.72333 43.4 24

UTILIZATION OF FORKLIFT (%) 94.68056

TOTAL TIME FOR 84 BUNDLES OF CHANGE OVER 12600 3.5 30 0

IDLE TIME FOR FORKLIFT DURING CHANGE OVER 18000 5 0 0

Table 4.16

During the stripping time the forklift may have to take small delays of one minute or more in

multiple chances and these times cannot be utilized for any other purpose and so stripping

time has to be taken as complete for the forklift usage even if it is not utilized. In the same

way during changeover there are some delays which cannot be utilized but some big delays

can be used for shifting cathode from the CSM yard to the front yard or warehouse.

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Summer Internship Report 2010

52 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

1-3TON AND 2-5TON FORKLIFT FOR APM YARD

SPENT ANODE

HR MIN SEC

NO OF BUNDLES TO BE SHIFTED IN A DAY 50

YTIME FOR SHIFTING 1 BUNDLE 334

TIME FOR SHIFTING 50 BUNDLES 16700 4.6 38.3 20.0

FRESH ANODE

NO OF BUNDLES TO BE SHIFTED FROM DESPATCH TO ANODE

YARD IN A DAY 268

TIME TAKEN FOR SHIFTING 1 BUNDLE 141

TIME TAKEN FOR SHIFTING 268 BUNDLE 37788 10.5 29.8 48.0

FRESH ANODE WEIGHMENT

TIME TAKEN TO WEIGH ONE BUNDLE 140

NO OF BUNDLES TO BE WEIGHED 268

TIME TAKEN FOR WEIGHING 268 BUNDLE 37520 10.4 25.3 20.0

20% OF TOTAL AVAILABLE HOUR FOR MISCELLANEOUS 17280 4.8 48.0 0.0

30 MIN PER SHIFT REFRESHMENT TIME 5400 1.5 30.0 0.0

30 MIN PER SHIFT BREAKDOWN TIME 5400 1.5 30.0 0.0

AVERAGE APM RUNNING HRS IN A MONTH 900000 250

AVERAGE APM RUNNING HRS IN A DAY 30000 8.333333

AVERAGE RUNNING HRS FOR ASWM IN A MONTH 900000 250

AVERAGE RUNNING HRS FOR ASWM IN A DAY 30000 8.333333

TOTAL TIME FOR 3 FORKLIFTS 180088 50.0 1.5 28.0

UTILIZATION (%) 69.4784

Table 4.17

In APM yard the utilization of forklifts keep on shifting as per the running of the APM

machine and ASWM machine. Placing the spent anode from the machine to the yard is

included in the miscellaneous activities other than this shifting of heavy materials and

products from D/O plant. In this the average running hours of the two machines are also

included because when the machines are running then the forklifts are engaged in feeding the

APM emptying the ASWM and weighment of spent anodes.

Page 53: my summer internship report

Summer Internship Report 2010

53 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

4.4.2 LOGISTICS

In logistics the core activities that the forklifts perform are:

1. Shifting of cathode bundles from CSM yard to front yard or warehouse.

2. Shifting the cathode bundles from front yard to CCR furnace.

3. Loading the truck with cathode plate bundles.

4. Loading the trucks with coils.

Various miscellaneous activities of the forklifts at logistics are:

1. Shifting of coils as per the truck loading requirements.

2. Arrangement of the warehouse according to the sections.

4.4.2.1 TIME CALCULATIO�S

Shifting Cathode Bundles from the CSM yard to the warehouse by going through one check

post.

CSM YARD TO WAREHOUSE

3-ton TOTAL TIME

S.�O

WAREHOUSE

TO CSM

YARD

LIFTI�G

TIME

CSM YARD

TO

WAREHOUSE

WAITI�G

TIME AT

CHECKPOST

LAYI�G

THE

PLATE MI� SEC

1 45 15 70 1 5 2 16

2 55 10 75 1 3 2 24

3 65 10 70 2 5 2.5 32

4 70 13 65 3 5 2.6 36

5 60 12 75 1 7 2.6 35

6 58 10 72 2 4 2 26

7 50 15 70 1 5 2 21

8 56 15 70 1 6 2 28

9 59 10 75 3 4 2.5 31

10 70 12 73 3 5 2.7 43

AVERAGE 2.5 29.2

Table 4.18

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54 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

Shifting of Cathode Bundles from the CSM yard to the front yard. The security check occurs

only after keeping the cathode bundles in the yard as these bundles are meant to be fed in the

CCR furnace for making coils

CSM YARD TO FRO�T YARD

3-ton

TOTAL

TIME

S.�O

FRO�T

YARD TO

CSM YARD

LIFTI�G

TIME

CSM

YARD TO

FRO�T

YARD

WAITI�G

TIME AT

CHECKPOST

LAYI�G

THE

PLATE MI� SEC

1 60 15 75 1 3 3 34

2 60 10 70 1 2 2 23

3 70 15 70 1 5 2.7 41

4 65 13 80 2 8 2.8 48

5 67 11 78 3 3 2.7 42

6 70 16 75 1 7 3 49

7 63 10 65 1 5 2 24

8 65 15 70 2 5 3 37

9 59 13 80 3 8 2.7 43

10 70 10 75 3 10 2.8 48

AVERAGE 2.6 38.9

Table 4.19

Loading The Truck With Coils And Cathode Bundles from the warehouse to the truck by

passing though the weigh scale and the check post. These coils are meant to for the export

and trucks come to the front yard for loading.

WAREHOUSE TO TRUCK

5-ton

TOTAL

TIME

S.

�O

LIFTI�G

THE

BU�DLE

STORAGE

AREA TO

WEIGH

SCALE

WAITI�G

TIME AT

WEIGH

SCALE

WEIGH

SCALE

TO

TRUCK

TRUCK

LOADI�G

TRUCK

TO

STORI�G

SPACE

MI�

SE

C

1 3 10 20 20 3 20 1 16

2 4 10 5 25 3 25 1 12

3 3 14 8 20 2 25 1 12

4 2 15 7 25 5 20 1 14

5 4 12 10 25 8 20 1 19

Table 4.20 AVERAGE 1 15

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55 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

Shifting The Cathode Bundles from front yard to the CCR furnace for feeding the cathodes

into the furnace to make coils. The bundles have to go through one check post.

FRO�T YARD TO CCR

5-ton

TOTAL

TIME

S.�O

LIFTI�G

THE

BU�DLE

FRO�T YARD

TO

CHECKPOST-

1

WAITI�G

TIME AT

CHECKPOST-

1

CHECKPOST

TO PLATE

STACKKI�G

AREA

LAYI�G

THE

PLATE

PLATE

STACKI�G

AREA TO

FRO�T YARD MI� SEC

1 5 45 1 60 3 90 3 24

2 5 50 3 65 5 105 3.9 53

3 4 47 2 55 4 96 3 28

4 6 55 3 70 5 95 3.9 54

5 8 50 1 65 3 100 3.8 47

6 5 45 2 70 4 90 3.6 36

Table 4.21 AVERAGE 3.7 44

4.4.2.2UTILIZATIO� OF THE FORKLIFTS

3TO� FORKLIFT DEDICATED TO CSM YARD

HR MI� SEC

TIME FOR SHIFTI�G O�E BU�DLE CATHODE

FROM CSM YARD 159

�O OF BU�DLES TO BE SHIFTED FROM 1

STRIPPI�G 84

�O OF BU�DLES TO BE SHIFTED FROM 3

STRIPPI�GS I� A DAY 252

TIME FOR SHIFTI�G TOTAL BU�DLES I� A

DAY 40068 11.1 7.8 48.0

20% OF TOTAL AVAILABLE HOUR FOR

MISCELLA�EOUS 17280 4.8 48.0 0.0

30 MI� PER SHIFT REFRESHME�T TIME 5400 1.5 30.0 0.0

30 MI� PER SHIFT BREAKDOW� TIME 5400 1.5 30.0 0.0

TOTAL TIME 68148 18.9 55.8 48.0

UTILIZATIO� (%) 78.875

Table 4.22

The 3-ton forklift is dedicated to the shifting of cathode bundles from the CSM yard to the

Warehouse or the front yard. Other miscellaneous works that this forklift performs is to take

the bundles for repacking if required. The forklift is utilized for 78.87% throughout a day.

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56 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

TRUCK LOADI�G (COIL) HR MI� SEC

TIME TAKE� FOR LOADI�G O�E COIL 90

�O OF COILS I� O�E TRUCK 8

�O OF TRUCKS I� A DAY 15

TIME FOR LOADI�G ALL TRUCKS 10800 3.0 0.0 0.0

TIME FOR COIL ADJUSTME�T PER TRUCK 1200

TIME FOR COIL ADJUSTME�T FOR ALL TRUCKS 18000 5.0 0.0 0.0

TOTAL TIME FOR COIL LOADI�G 28800 8.0 0.0 0.0

SET UP TIME(FORKLIFT ARM CHA�GE)10 TIMES FOR 10 MI� 6000

TRUCK LOADI�G (CATHODE)

TIME FOR LOADI�G O�E BU�DLE CATHODE 90

�O OF CATHODE BU�DLES I� O�E TRUCK 10

�O OF TRUCKS I� A DAY 15

TIME FOR LOADI�G ALL TRUCKS 13500 3.8 45.0 0.0

CATHODE BU�DLES TO CCR

TIME FOR SHIFTI�G O�E BU�DLE CATHODE TO CCR

FUR�ACE 222

�O OF CATHODE BU�DLES SHIFTED I� A DAY 144

TIME FOR SHIFTI�G ALL BU�DLES I� A DAY 31968 8.9 52.8 48.0

20% OF TOTAL AVAILABLE HOUR FOR MISCELLA�EOUS 17280 4.8 48.0 0.0

30 MI� PER SHIFT REFRESHME�T TIME 5400 1.5 30.0 0.0

30 MI� PER SHIFT BREAKDOW� TIME 5400 1.5 30.0 0.0

TOTAL TIME 108348 30.1 5.8 48.0

TOTAL AVAILABLE HRS OF TWO FORKLIFTS 172800 48.0 0.0 0.0

UTILIZATIO� (%) 62.70139

Table 4.23

Shifting the Cathode Bundles and Coil from the warehouse to the trucks is done by 5-ton

forklifts. For loading the coils a prior shifting of coils inside the warehouse is required

according to the requirement of the exports as per weight and batch no. The utilization of the

two 5ton forklifts is low as 62.701%.

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57 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

4.4.3 CCR

In CCR the core activities for the forklifts are:

1. Shifting the coils from the CCR to the warehouse.

2. Loading the feeder of the furnace with cathode bundles.

3. Shifting the coils inside the CCR for various processing activities.

Apart from this the other miscellaneous activities that the forklifts perform are:

1. Shifting of the wooden pallets from the CCR front yard to inside.

2. Shifting the necessary cylinders from the stores to the plant.

3. Carrying the copper bars from the cutting area to the feeder yard.

4. Shifting of heavy materials in the plants.

4.4.3.1 TIME CALCULATIO�S

Shifting Of Coil from the CCR to the warehouse by passing through two check posts, one at

CCR and the other at Warehouse.

CCR TO WAREHOUSE( COIL)

TOTAL TIME

S.�O

LIFTI�G

THE

COIL

FROM

WEIGH

SCALE

WEIGH

SCALE TO

WAREHOUSE

WAITI�G

TIME AT

CHECKPOST

LAYI�G

THE

COIL

WAREHOUSE

TO CCR MI� SEC

1 5 90 5 5 75 3 0

2 8 80 10 3 65 2.8 46

3 7 85 3 4 45 2.4 24

4 5 82 4 4 60 2.6 35

5 7 85 4 5 70 2.9 51

6 7 80 8 5 80 3 0

7 5 90 10 4 65 2.9 54

8 8 75 5 3 70 2.7 41

9 5 85 7 4 50 2.5 31

10 6 83 4 7 75 2.9 55

Table 4.24 AVERAGE 2.8 33.7

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58 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

Feeding The Furnace with the cathode bundles from the CCR yard to the feeder. Activities

like cutting of strap and washing of cathode is done prior to feeding the cathode to the

furnace.

FEEDI�G THE FUR�ACE

TOTAL

TIME

S.�O

LIFTI�G

THE

CATHODE

BU�DLE

CCR YARD

TO

WASHI�G

AREA

WAITI�G

TIME AT

WASHI�G

AREA

WASHI�G

AREA TO

FEEDER

WAITI�G

TIME AT

FEEDER

FEEDER

TO CCR

YARD MI� SEC

1 5 10 10 8 75 13 2 1

2 8 12 10 7 65 14 2 56

3 7 15 10 9 45 15 2 41

4 5 11 15 8 60 10 2 49

5 7 10 15 7 70 15 2 4

6 7 13 14 7 80 13 2 14

7 5 15 13 9 65 12 2 59

8 8 13 16 8 70 14 2 9

9 5 12 15 9 50 15 2 46

10 6 12 10 7 75 15 2 5

AVERAGE 2.0 28.4

Table 4.25

Activities inside the CCR

S.�O

LIFTI�

G THE

COIL

COILER

TO

COOLI�

G AREA

LAYI�G

THE

COIL

LIFTI�

G THE

COIL

COOLI�G

AREA TO

COMPACTO

R

LAYI�G

THE

COIL

LIFTI�

G THE

COIL

1 4 10 5 4 8 10 5

2 5 11 5 4 10 7 6

3 6 15 3 6 13 10 4

4 4 13 6 4 9 9 5

5 5 12 7 5 11 8 5

COMPACT

OR TO

STRECH

PACKI�G

LAY�G

THE

COIL

LIFTI�G

THE

COIL

STRECH

PACKI�

G TO

PACKI�

G

LAYI�

G THE

COIL

LIFTI�G

THE COIL

PACKI�

G TO

WEIGH

SCALE

LAYI�

G THE

COIL

10 4 5 10 5 4 12 4

10 3 4 14 6 7 15 5

13 6 6 11 5 6 14 5

15 5 4 15 5 3 16 4

14 5 5 12 4 5 15 6

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59 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

WEIGH

SCALE

TO �EW

PALLET

STORAGE

LIFTI�G

THE

PALLET

PALLET

AREA

TO

WEIGH

SCALE

WAITI�G

TIME AT

WEIGH

SCALE

WEGH

SCALE TO

PALLET

STORAGE

AREA

LIFTI�G

THE

PALLET

PALLET

STORAGE

AREA TO

COILER

LAYI�G

THE

PALLET MI� SEC

15 3 15 10 14 5 13 5 3 0

13 5 15 9 14 4 14 5 3.2 11

14 4 14 14 15 4 13 5 3.4 26

20 5 17 15 17 5 16 4 3.6 36

17 5 15 10 15 6 15 6 3.5 28

Table 4.26 AVERAGE 3.336667 20.2

Inside the CCR plant the forklift has to take the coil bundle to the cooler for cooling and then

to the compactor for compacting the coil bundle and then to the stretch packing section so as

to pack the coil with this plastic film and then to the final packing section where it is strapped

and then packed. After the final packing the coil taken to the weigh scale where it is weighed

and then send to warehouse.

4.4.3.2 UTILIZATIO� OF THE FORKLIFTS

3TO� FORKLIFT DEDICATED TO FUR�ACE HR MI� SEC

TIME TAKE� TO FEED I� THE FEEDER 148

�O OF FEEDS I� A DAY 120

TOTAL TIMEE FOR FEEDI�G 17760 4.9 56.0 0.0

50% OF TOTAL TIME FOR MISCELLA�EOUS

ACTIVITIES 43200 12.0 0.0 0.0

30 MI� PER SHIFT REFRESHME�T TIME 5400 1.5 30.0 0.0

30 MI� PER SHIFT BREAKDOW� TIME 5400 1.5 30.0 0.0

TOTAL TIME 71760 19.9 56.0 0.0

UTILIZATIO� (%) 83.05556

Table 4.27

3 TON forklift dedicated to the feeder to feed cathode bundles to the furnace as the utilization

of 83.1%. Other than feeding the furnace, other activities make the major share of the

activities in a day. These activities include carrying materials from store and carrying copper

bars from the cutting area to the feeder yard.

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60 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

5TO� FORKLIFT HR MI� SEC

TIME FOR SHIFTI�G COIL A�D PALLET I�SIDE

CCR 200

�O OF COILS PRODUCED I� A DAY 96

TOTAL TIME FOR COIL 19200 5.3 20.0 0.0

COIL TO WAREHOUSE

TIME TAKE� TO SHIFT O�E COIL 158

�O OF COILS PRODUCED I� A DAY 96

TIME TO SHIFT ALL COILS TO WAREHOUSE 15168 4.2 12.8 48.0

20% OF TOTAL AVAILABLE HOUR FOR

MISCELLA�EOUS 17280 4.8 48.0 0.0

30 MI� PER SHIFT REFRESHME�T TIME 5400 1.5 30.0 0.0

30 MI� PER SHIFT BREAKDOW� TIME 5400 1.5 30.0 0.0

TOTAL TIME 62448 17.3 20.8 48.0

UTILIZATIO� (%) 72.27778

Table 4.28

5-TON forklift is used majorly for shifting the coils from CCR to warehouse. Shifting of coils

inside CCR for other processes is also performed by it. Bring the wooden pallet from the

CCR front yard to inside and weighment are some other activities included in the

miscellaneous activities of this forklift.

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61 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

CHAPTER 5

RESULTS A�D SUGGESTIO�S

5.1 TIME EFFICIE�CY:

CO�SOLIDATED TIME EFFICIE�CY

�OV’09-MARCH’10

MO�TH

TOTAL �O OF

BA�KS

TOTAL

RU��I�G

HRS

EXPECTED

TOTAL

RU��I�G HRS

TIME

EFFICIE�CY

�OVEMBER 677.14 12073.45 12490.97 96.65742532

DECEMBER 699.71 14417.36 14965.4 96.33795288

JA�UARY 699.71 10346.94 10746.3 96.28374417

FEBRUARY 632 9283.44 9614.95 96.55214016

MARCH 699.71 11645.09 12053.09 96.61497591

57766.28 59870.71 96.48504252

Table 5.1

5.2 FOKKLIFT UTILIZATIO�

CO�SOLIDATED STATEME�T

FORKLIFT/AREA

RU��I�G

HOURS

AVAILABL

E RU��I�G

HOURS PRESE�T

UTILIZATIO

PROPOSED UTILIZATIO� (%)

HR

S

MI

HR

S MI�

SUGGESTIO�

-1

SUGGESTIO�

-2

SUGGESTIO�

-3

3TO�/CSM YARD 18 18 24 0 76.25 90.1625 �.A �.A

3TO�/LOGISTIC-

CSM 18 55 24 0 78.88 ELIMI�ATED ELIMI�ATED ELIMI�ATED

(1)3TO�+(2)5TO�/A

PM YARD 50 01 72 0 69.48 �.A �.A �.A

(2)5TO�/LOGISTIC

S 38 5 48 0 62.7

(70%) 78.93 67.38

(100%) 85.88

(100%) 85.88 (90%) 84.04

5TO�/CCR 17 21 24 0 72.27 �.A �.A (0%) 90.05

(10%) 93.75

3TO�/CCR

FUR�ACE 19 56 24 0 83.05 �.A 99.5 ELIMI�ATED

Table 5.2

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62 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

5.3 SUGGESTIO�S 5.3.1 SUGGESTIO� 1

PERFORMI�G THE TASK OF CATHODE SHIFTI�G FROM CSM (70%)

TO WAREHOUSE/YARD TO CCR (100%) A�D TRUCK LOADI�G (100%) BY 2

FORKLIFTS OF LOGISTICS (5TO�)

1. Proper coordination to be established between csm ccr and logistics such that

requirement of forklifts could be planned.

2. Timing of stripping to be well communicated to logistics prior so that it can make

forklifts to do rest of the work in a planned manner

3. 70% of the cathode bundles can be shifted by logistic forklift and 30% can be stored

in the csm yard and later can be shifted by csm forklift during the changeover.

RENEWD UTILIZATION WHEN 70% OF CATHODE IS SHIFTED BY 2-5TON FORKLIFT OF LOGISTICS

TIME FOR SHIFTI�G 70% FROM CSM BU�DLES I� A DAY 28047.6 7.8 47.5 27.6

TOTAL TIME FOR COIL LOADI�G 28800 8.0 0.0 0.0

TIME FOR LOADI�G CATHODE BIU�DLES I� TRUCK 13500 3.8 45.0 0.0

SET UP TIME(FORKLIFT ARM CHA�GE)10 TIMES FOR 10

MI� 6000 1.7 40.0 0.0

TIME FOR SHIFTI�G ALL BU�DLES I� A DAY TO CCR 31968 8.9 52.8 48.0

20% OF TOTAL AVAILABLE HOUR FOR

MISCELLA�EOUS 17280 4.8 48.0 0.0

30 MI� PER SHIFT REFRESHME�T TIME 5400 1.5 30.0 0.0

30 MI� PER SHIFT BREAKDOW� TIME 5400 1.5 30.0 0.0

TOTAL TIME 136395.6 37.9 53.3 15.6

TOTAL AVAILABLE HRS OF TWO FORKLIFTS 172800 48.0 0.0 0.0

UTILIZATIO� (%) 78.93264

Table 5.3

Table 5.4

RENEWD UTILIZATION WHEN 30% OF CATHODE IS SHIFTED BY 3TON FORKLIFT OF CSM

TIME FOR SHIFTI�G 30% FROM CSM BU�DLES I� A

DAY 12020.4 3.3 20.3 20.4

MAXIMUM OUTPUT I� O�E STRIPPI�G(BU�DLES) 84

TIME FOR SHIFTI�G 1 BU�DLE FROM MACHI�E TO

CSM YARD 150

�O OF STRIPPI�G I� A DAY 3

TIME FOR SHIFTI�G 84 BU�DLES I� EACH STRIP(3) 37800 10.5 30 0

20% OF TOTAL AVAILABLE HOUR FOR

MISCELLA�EOUS 17280 4.8 48

-8.5E-

13

30 MI� PER SHIFT REFRESHME�T TIME 5400 1.5 30 0

30 MI� PER SHIFT BREAKDOW� TIME 5400 1.5 30 0

TOTAL TIME 77900.4 21.639 38.34 20.4

UTILIZATIO� OF FORKLIFT (%) 90.1625

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63 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

RENEWD UTILIZATION WHEN 100% OF CATHODE IS SHIFTED BY 2 -5TON FORKLIFT OF LOGISTICS

TIME FOR SHIFTI�G 100% FROM CSM BU�DLES I� A DAY 40068 11.1 7.8 48.0

TOTAL TIME FOR COIL LOADI�G 28800 8.0 0.0 0.0

TIME FOR LOADI�G CATHODE BIU�DLES I� TRUCK 13500 3.8 45.0 0.0

SET UP TIME(FORKLIFT ARM CHA�GE)10 TIMES FOR 10 MI� 6000 1.7 40.0 0.0

TIME FOR SHIFTI�G ALL BU�DLES I� A DAY TO CCR 31968 8.9 52.8 48.0

20% OF TOTAL AVAILABLE HOUR FOR MISCELLA�EOUS 17280 4.8 48.0 0.0

30 MI� PER SHIFT REFRESHME�T TIME 5400 1.5 30.0 0.0

30 MI� PER SHIFT BREAKDOW� TIME 5400 1.5 30.0 0.0

TOTAL TIME 148416 41.2 13.6 36.0

TOTAL AVAILABLE HRS OF TWO FORKLIFTS 172800 48.0 0.0 0.0

UTILIZATIO� (%) 85.88889

Table 5.5

4. Before loading one truck if we can supply 6 bundles of cathode to ccr then we can

easily manage with the two 5ton forklifts.

5. One forklift will be used to bring the cathode from csm to yard and other will be used

to supply cathode to ccr, and after supplying 6 bundles the forklift will be used to load

one truck.

6. During break down of csm the csm forklift can also be used to transfer cathodes to

yard/warehouse.

7. Ccr 3-ton forklift can also take some of the cathode supply to the furnace while not on

other works.

8. Before the starting of the csm coils to be loaded in the truck must be sorted out in

advance so as to gain time during the machine running and shifting of cathodes.

9. If two to three trucks is to be loaded one after the other then initial supply of cathode

is to be provided to the ccr and then one truck is to be loaded and then the ccr forklift

can be utilized to supply the cathode at regular intervals until all the trucks are loaded

and also if 70-30 system is used then the 5ton forklift used in csm can be used to load

the truck at a later stage.

RESULT: 3 TO� FORKLIFTS OF LOGISTICS CA� BE ELIMI�ATED

UTILIZATIO� OF 5TO� FORKLIFTS CA� BE I�CREASED

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64 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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5.3.2 SUGGESTIO�-2

I�STALLI�G THE AUTO FEEDER I� THE CCR FUR�ACE AREA

1. Install an auto feeder as shown in the diagram of auto feeder

furnace at ccr

2. Time which was earlier used for feeding the fu

cathode from yard to ccr.

3-TO� FORKLIFT OF CCR

TIME FOR SHIFTI�G O�E BU�DLE CATHODE TO CCR

�O OF CATHODE BU�DLES SHIFTED I� A DAY

TIME FOR SHIFTI�G ALL BU�DLES I� A DAY

50% OF TOTAL AVAILABLE HOUR FOR MISCELLA�EOUS

30 MI� PER SHIFT REFRESHME�T TIME

30 MI� PER SHIFT BREAKDOW� TIME

TOTAL TIME

TOTAL AVAILABLE HRS

UTILIZATIO� (%)

4. Time used for shifting the cathode to ccr can be used to shift the cathode from csm yard

to yard/warehouse.

Cathode lifting arm

Summer Internship Report

IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

I�STALLI�G THE AUTO FEEDER I� THE CCR FUR�ACE AREA

eder as shown in the diagram of auto feeder for feeding the cat

Fig 5.1

2. Time which was earlier used for feeding the furnace can be utilized for bring

TO� FORKLIFT OF CCR

TIME FOR SHIFTI�G O�E BU�DLE CATHODE TO CCR FUR�ACE 222

�O OF CATHODE BU�DLES SHIFTED I� A DAY 144

TIME FOR SHIFTI�G ALL BU�DLES I� A DAY 31968

50% OF TOTAL AVAILABLE HOUR FOR MISCELLA�EOUS 43200

30 MI� PER SHIFT REFRESHME�T TIME 5400

SHIFT BREAKDOW� TIME 5400

TOTAL TIME 85968

TOTAL AVAILABLE HRS 86400

UTILIZATIO� (%) 99.5

Table 5.6

Time used for shifting the cathode to ccr can be used to shift the cathode from csm yard

Cathode lifting arm

Summer Internship Report 2010

IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

I�STALLI�G THE AUTO FEEDER I� THE CCR FUR�ACE AREA

for feeding the cathodes to the

rnace can be utilized for bringing the

HR MI� SEC

8.9 52.8 48.0

12.0 0.0 0.0

1.5 30.0 0.0

1.5 30.0 0.0

23.9 52.8 48.0

24.0 0.0 0.0

Time used for shifting the cathode to ccr can be used to shift the cathode from csm yard

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65 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

TRUCK LOADI�G (COIL) HR MI� SEC

TIME TAKE� FOR LOADI�G O�E COIL 90

�O OF COILS I� O�E TRUCK 8

�O OF TRUCKS I� A DAY 15

TIME FOR LOADI�G ALL TRUCKS 10800 3.0 0.0 0.0

TIME FOR COIL ADJUSTME�T PER TRUCK 1200

TIME FOR COIL ADJUSTME�T FOR ALL TRUCKS 18000 5.0 0.0 0.0

TOTAL TIME FOR COIL LOADI�G 28800 8.0 0.0 0.0

SET UP TIME(FORKLIFT ARM CHA�GE)10 TIMES FOR 10 MI� 6000

TRUCK LOADI�G (CATHODE)

TIME FOR LOADI�G O�E BU�DLE CATHODE 90

�O OF CATHODE BU�DLES I� O�E TRUCK 10

�O OF TRUCKS I� A DAY 15

TIME FOR LOADI�G CATHODE BU�DLES 13500 3.8 45.0 0.0

CATHODE BU�DLES TO YARD

TIME FOR SHIFTI�G TOTAL BU�DLES I� A DAY FROM CSM TO YARD 40068 11.1 7.8 48.0

20% OF TOTAL AVAILABLE HOUR FOR MISCELLA�EOUS 17280 4.8 48.0 0.0

30 MI� PER SHIFT REFRESHME�T TIME 5400 1.5 30.0 0.0

30 MI� PER SHIFT BREAKDOW� TIME 5400 1.5 30.0 0.0

TOTAL TIME 116448 32.3 20.8 48.0

TOTAL AVAILABLE HRS OF TWO FORKLIFTS 172800 48.0 0.0 0.0

UTILIZATIO� (%) 67.38889

Table 5.7

5. Utilization of logistics forklift can further be improved by engaging it into miscellaneous

and supporting activities of other forklifts.

RESULT: 3 TO� FORKLIFTS OF LOGISTICS CA� BE ELIMI�ATED

UTILIZATIO� OF 5TO� FORKLIFTS CA� BE I�CREASED

MO�EY MATTERS:

INVESTMENT FOR THE CONVEYOR=RS.20 LAKHS (APPROX)

(MACHINE AND INSTALLATION)

MONEY SAVED PER MONTH ON 1 FORKLIFT= RS.1 LAKH

ESTIMATED PAYBACK PERIOD= 20 MONTHS I.E. 1 YR 8 MO�THS

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66 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

5.3.3 SUGGESTIO� 3:

RESEQUE�CI�G THE CCR WORKFLOW A�D I�STALLATIO� OF AUTO

FEEDER

1. Present arrangement of ccr plant and forklift movements are shown as below:

COMPACTOR

COOLER

PACKER

STRECH

PACKER

WEIGH

SCALE

WEIGHED

PALLET

PALLET

STACKI�G

AREA

FORK

LIFT

COILER

COILER

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67 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

2. Workstations of the ccr is to be arranged in a sequential

railed ccr and rail system to be implemented to shift the

2. Installing an auto feeder system as shown in the diagram (auto feeder) will feed the ccr

furnace with the cathodes.

3. Time gained by 5ton forklift can be utilized to do the miscellaneous

shift the coils to warehouse.

Pallet

Summer Internship Report

IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

Workstations of the ccr is to be arranged in a sequential manner as shown in the diagram of

and rail system to be implemented to shift the coil.

Fig 5.2

Installing an auto feeder system as shown in the diagram (auto feeder) will feed the ccr

3. Time gained by 5ton forklift can be utilized to do the miscellaneous work at ccr and to

Coiler

Delivery for forklift

Summer Internship Report 2010

IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

manner as shown in the diagram of new

Installing an auto feeder system as shown in the diagram (auto feeder) will feed the ccr

work at ccr and to

Cooler

Compactor

Stretch packer

Packer

Weigh scale

Rails

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68 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

5TO� FORKLIFT OF CCR HR MI� SEC

TIME TAKE� TO SHIFT O�E COIL 158

�O OF COILS PRODUCED I� A DAY 96

TIME TO SHIFT ALL COILS TO WAREHOUSE 15168 4.2 12.8 48.0

60% OF TOTAL AVAILABLE HOUR FOR

MISCELLA�EOUS 51840 14.4 24.0 0.0

30 MI� PER SHIFT REFRESHME�T TIME 5400 1.5 30.0 0.0

30 MI� PER SHIFT BREAKDOW� TIME 5400 1.5 30.0 0.0

TOTAL TIME 77808 21.6 36.8 48.0

UTILIZATIO� (%) 90.05556

Table 5.8

5TO� FORKLIFT OF CCR HR MI� SEC

TIME TAKE� TO SHIFT O�E COIL 158

�O OF COILS PRODUCED I� A DAY 96

TIME FOR SHIFTI�G 10% CATHODE TO THE CCR 3196.8 0.9 53.3 16.8

TIME TO SHIFT ALL COILS TO WAREHOUSE 15168 4.2 12.8 48.0

60% OF TOTAL AVAILABLE HOUR FOR

MISCELLA�EOUS 51840 14.4 24.0 0.0

30 MI� PER SHIFT REFRESHME�T TIME 5400 1.5 30.0 0.0

30 MI� PER SHIFT BREAKDOW� TIME 5400 1.5 30.0 0.0

TOTAL TIME 81004.8 22.5 30.1 4.8

UTILIZATIO� (%) 93.75556

RENEWD UTILIZATION WHEN 100% OF CATHODE IS SHIFTED BY 2 -5TON FORKLIFT OF LOGISTICS

TIME FOR SHIFTI�G 100% FROM CSM BU�DLES I� A DAY 40068 11.1 7.8 48.0

TOTAL TIME FOR COIL LOADI�G 28800 8.0 0.0 0.0

TIME FOR LOADI�G ALL TRUCKS 13500 3.8 45.0 0.0

TIME FOR SHIFTI�G ALL BU�DLES I� A DAY TO CCR 31968 8.9 52.8 48.0

SET UP TIME(FORKLIFT ARM CHA�GE)10 TIMES FOR 10 MI� 6000 1.7 40.0 0.0

20% OF TOTAL AVAILABLE HOUR FOR MISCELLA�EOUS 17280 4.8 48.0 0.0

30 MI� PER SHIFT REFRESHME�T TIME 5400 1.5 30.0 0.0

30 MI� PER SHIFT BREAKDOW� TIME 5400 1.5 30.0 0.0

TOTAL TIME 148416 41.2 13.6 36.0

TOTAL AVAILABLE HRS OF TWO FORKLIFTS 172800 48.0 0.0 0.0

UTILIZATIO� (%) 85.88889

Table 5.9

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69 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

RENEWD UTILIZATION WHEN 90% OF CATHODE IS SHIFTED BY 2 -5TON FORKLIFT OF LOGISTICS

TIME FOR SHIFTI�G 100% FROM CSM BU�DLES I� A DAY 40068 11.1 7.8 48.0

TOTAL TIME FOR COIL LOADI�G 28800 8.0 0.0 0.0

TIME FOR LOADI�G ALL TRUCKS 13500 3.8 45.0 0.0

TIME FOR SHIFTI�G ALL BU�DLES I� A DAY TO CCR 28771.2 8.0 59.5 31.2

SET UP TIME(FORKLIFT ARM CHA�GE)10 TIMES FOR 10

MI� 6000 1.7 40.0 0.0

20% OF TOTAL AVAILABLE HOUR FOR MISCELLA�EOUS 17280 4.8 48.0 0.0

30 MI� PER SHIFT REFRESHME�T TIME 5400 1.5 30.0 0.0

30 MI� PER SHIFT BREAKDOW� TIME 5400 1.5 30.0 0.0

TOTAL TIME 145219.2 40.3 20.3 19.2

TOTAL AVAILABLE HRS OF TWO FORKLIFTS 172800 48.0 0.0 0.0

UTILIZATIO� (%) 84.03889

Table 5.10

4. Time during the starting of the coiling process can be used to shift 10% of the cathodes to

the ccr furnace.

5. Time gained by 5ton forklifts of logistics can be used for other miscellaneous purpose.

RESULT: 3 TO� FORKLIFTS OF LOGISTICS CA� BE ELIMI�ATED

3TO� FORKLIFT OF CCR CA� BE ELIMI�ATED

UTILIZATIO� OF 5TO� FORKLIFTS CA� BE I�CREASED

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70 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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5.3.4 SUGGESTIO� 4

ESTABLISHI�G A CE�TRALIZED FORKLIFT CO�TROLI�G U�IT

1. Central controlling unit is to be established where in all the forklifts report.

2. Planning should be regarding each shift activities and the requirements of forklifts by

the controlling unit.

3. During reporting of the forklift, each forklift is to be checked for the status card issued

by the maintenance unit of forklifts which specifies the overall condition of the

forklift and fitness for its usage.

4. After the verification by the in-charge the forklifts are to be issued to the various jobs

in hand which are preplanned by all the plants and informed prior.

5. Job cards are to be issued by the controlling unit for each job to be done.

6. After the completion of the particular job the job handling officer should relieve the

forklift by signing on to the job card.

7. The forklifts must report to the controlling unit after completion of each job.

8. Breakdowns and refreshment breaks are also to be informed to the controlling unit

with starting and ending time.

9. Rules must be formulated to take actions against the improper performance of the

forklifts and intentional delay.

10. Progress of each job should be reported to the controlling unit by the job handling

officer and estimated job completion time also to be communicated.

RESULT: MORE SYSTEMATIC FORKLIFT MA�AGEME�T CA� BE DO�E

A�D UTILIZATIO� OF EACH FORKLIFT CA� BE IMPROVED.

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71 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

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CO�CLUSIO�:

The project regarding the time efficiency of the refinery plant has prominently highlighted

with the help of Pareto analysis that CSM, ASWM, APM and CRANES play a vital role in

the production of copper cathodes. And the delays which occur during their functioning are

majorly caused due to various technical reasons in the machine parts and operational

inefficiency. Steps should be taken to bring in control and efficient usage of machines by

regular checkups and maintenance and training and knowledge sharing activities for the

operators.

The project regarding the forklift motion study in the EOU has clearly identified the under

utilization of the forklifts and the unproductive motion that the forklifts take to perform an

activity. By the implementation of the provided suggestions the utilization of the forklifts can

be increased and the excess forklift can be removed and the profitability of the EOU can be

increased.

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72 IMPROVI�G THE OPERATIO�AL EFFICIE�CY A�D

PROFITABILITY OF EXPORT ORIE�TED U�IT

REFERE�CES:

1. Http://www.sterlite-industries.com

2. En.wikipedia.org/wiki/pareto_analysis

3. Documents from the company which are confidential.

4. Daily reports of the refinery plant

5. En.wikipedia.org/wiki/Time_and_motion_study