tharun peekay steels 02

Peekay Steel Castings Pvt Ltd

2.4 MANAGEMENT OF THE SPARE PARTS

Spare parts Management plays an important role in achieving the desired

plant availability at an optimum cost. Presently, the industries are going for

capital intensive, mass production oriented and sophisticated technology. The

downtime for such plant and machinery is prohibitively expensive. It has been

observed in many industries that the non-availability of spare parts, as and when

required for repairs, contributes to as much as 50% of the total down time. Also,

the cost of spare parts is more than 50% of the total maintenance cost in the

industry. It is a paradox to note that the maintenance department is complaining

of the non-availability of the spare parts to meet their requirement and finance

department is facing the problem of increasing locked up capital in spare parts

inventory. This amply signifies the vital importance of spare parts management in

any organisation.

The unique problems faced by the organisation in controlling/

managing the spare parts are as follows. Firstly, there is an element of

uncertainty as to when a part is required and also the quantity of its requirement.

This is due to the fact that the failure of a component, either due to wearing out or

due to other reasons, cannot be predicted accurately. Secondly, spare parts are not

that easily available in the market as they are not fast moving items. The original

equipment manufacturer has to supply the spares in most of the cases. New models

are introduced to incorporate the design improvements and old models are

phased out. Hence the spares for old models are not readily available.

Particularly, this is more so in case of imported equipment as the design changes

are taking place faster in the developed countries. Thirdly, the number and

variety of spare parts are too large making the close control more and more

tedious. For instance, the number of items of spares in a medium scale

engineering industry may be around 15,000 and that in a large scale chemical

CHRIST University 46


industry may be around 100,000. Fourthly, there is a tendency from the stage of

purchase of the equipment to the stage of the use of the spare parts, to

requisition spare parts more number than that are actually required and

accumulation of spares takes place. Finally, the rate of consumption of spare

parts for some are very high and for some are very low. These problems are to be

faced by systematic spare parts management.

There is a need for systematic actions while managing spare parts as given

below:

a. Identification of spare parts

b. Forecasting of spare parts requirement

c. Inventory analyses

d. Formulation of selective control policies for various categories

e. Development of inventory control systems

f. Stocking policies for capital & insurance spares

g. Stocking policies for rotable spares or sub-assemblies

h. Replacement policies for spare parts

i. Spare parts inspection

j. Indigenisation of spares

k. Reconditioning of spare parts

l. Establishment of spare parts bank

m. Computer applications for spare parts management.



IDENTIFICATION OF SPARE PARTS

When a spare part is required to put back in operation an equipment

which is under breakdown, it becomes necessary to identify the part for getting

the same issued from the store or for purchasing the same from the vendor.

While identifying it becomes essential to give the complete description

including the size and type of the spare to draw from the stores and it becomes

essential for all concerned ie., the maintenance personnel and stores personnel are

aware of such description. If it is the vendor, he may not be satisfied with the

description and he may also require the manufacturer's part number.

It is a cumbersome and time consuming task during every transaction to

identify a spare part by its description and manufacturer's part number

accompanied by the parent equipment's name, make and model designation.

Therefore, it is essential to give a numerical name or code to each spare part. This

process of giving code to each spare part is called codification. In addition to

codifying the spare part, it will be of immense benefit to codify the location of

spare parts. Stock location number helps the stores personnel to locate the part

and issue the same as and when the same is requisitioned. Also the stock

verification and upkeep programme becomes less and less cumbersome.

Advantages of a good Coding system:

The principal advantages of a good coding system are as given:

1. Avoids repeated use of long descriptive titles

2. Accurately identifies all items

3. Prevents duplication of items

4. Helps in standardization and reduction of varieties

5. Forms a convenient basis for the sorting and recording of documents

6. Simplifies mechanical recording



7. Simplifies pricing and costing

8. Useful in locating particular item in store house

Methods of Codification

The different types of codification systems are the following:

1. Alphabetical System:

In this system, letters are chosen to represent particular classes. Where

relatively few classifications are involved, this method can be used. In this

system code are so assigned as to permit easy memorization. For example:

Code Items

MSC Machine Screw Copper

MSB Machine Screw Brass

EFLS Electric Fan Large Switch

EFSB Electric Fan Small Bearings

2. Simple Numeric Sequence System:

In this system, the serial number is maintained in sequence. Each time a

new type of material is requires the next higher number in the sequence.

CHRIST University

Code Items

101 1/8” Machine Screw 1”

102 1/4" Machine Screw 1”

103 1/2" X 10’ Galvanized

49


3. The numeric system:

This system is also called group system. In this system the first or basic

numbers indicate specific classes while subsequent digits describe sub-

classification. For instance the basic digits for machine blot may be 36, the next

two digits may be used to designate the diameter. Additional numbers can

indicate the length.

Code Items

36181 Machine Bolt, 1/8” dia. 1” Long

363815 Machine Bolt, 3/8” dia. 1.1/2” Long

If the user of the code can remember that the basic digit 36 designate

machine bolts, the remainder of the code numbers can be easily remembered as

they are dimensions.

4. Decimal System:

In the decimal system, the numbers are so assigned that each digit

represents a sub-group or sub-account of the previous digit. For example,

an automobile manufacturer may assign the number 16 to an assembled wheel. I

in this case the following code numbers may be used to designate

component parts:

Code Item16.1 Tyres/Tubes

16.11 Valve Stem16.111 Valve16.112 Va lve Caps16.2 Brake Drum

16.3 Nuts16.4 Discs



5. The Block System:

The blocks of numbers are reserved for specify classification. For examples

block numbers 7500 – 7549 may be reserved for basic raw materials, 7600 – 7999

may be reserved for components, parts etc. the assigned numbers are provided to

accommodate subsequent expansion. Many times it happens that this system

lacks the logic behind assigning a particular block numbers of an item.

6. Combination system:

This system consists of various combinations of numerical or decimal

system. For instances, a manufacturer using various grades and thickness is of

plywood may use the following:

After codifying the spare parts and assigning stock location numbers,

all the users should be made aware of and should be supplied with the

relevant codes and stock location numbers in the form of a spare parts

catalogue. The spare parts catalogue should contain the following

information:

Spare parts codification plan

Spare part code

Spare part description

Drawing number

Manufacturer's code & part number

CHRIST University

Code Items

PW 181 Plywood 1/8” thick 1 st Grade

PW 142 Plywood 1/4” thick 2 nd Grade

PW 383 Plywood 3/8” thick 3 rd Grade

51


Stock location number

The spare parts catalogue may be produced in sufficient copies so as to

make available for all the users such as the maintenance personnel, stores

personnel and purchase personnel. This is a very important aspect often neglected

in the organisation. The next step in identification of spare parts is to put an

identification tag or mark with the code to enable the stores personnel identify

during the time of issue. If sufficient care is not taken to incorporate the code, a

lot of time is spent in locating the part and that time is actually added to the

down-time which is really very expensive in case of vital spare parts. There

are a variety of stickers which are scratch-proof, water-proof and temperature-

proof available in the market. Efforts should be made by the organisations to

make use of such identification tags and it will go a long way in reducing the

downtime.

INVENTORY ANALYSIS AND SELECTIVE CONTROL

For the successful spare parts management, it is essential to analyse the

spare parts inventory based on various characteristics such as the frequency

of issues, the annual consumption value, the criticality, the lead time and the

unit price. This is essential as it would not be possible to exercise the same type

of control for all items and it may not really be effective. Inventory analysis aids

selection of policies for selective control. Here at Machine Shop both FSN analysis

and VED analysis were done.

FSN Analysis:

Classification based on Frequency of Issues/Use:-

F, S & N stand for Fast moving, Slow moving and Non- moving items.

This form of classification identifies the items frequently issued, less

frequently issued for use and the items which are not issued for longer period,

say, 2 years. For instance, the items can be classified as follows:



Fast Moving (F) = Items that are frequently issued

say more than once a month.

Slow Moving (S) = Items that are issued less than once a month.

Non-Moving (N) = Items that are not issued\used for more than 2 years.

This classification helps spare parts management in establishing most

suitable stores layout by locating all the fast moving items near the dispensing

window to reduce the handling efforts. Also, attention of the management is

focused on the Non-Moving items to enable decision as to whether they are

required in the future or they can be salvaged. Experience shows that many

industries which are more than 15 years old have more than 50% of the stock as

non-moving spares.

Even if a few of them are disposed off and the locked up capital is made

available, it will make available additional working capital to the organisation.

Action for disposal should be taken based on the value of each item of spare.

VED Analysis-

Classification Based On Criticality:

Several factors contribute to the criticality of a sparepart. If a spare is

for a machine on which many other processes depend, it could be of very

vital importance. Also if a spare is, say, an imported component for which

procurement lead time could be very high its non-availability may mean a

heavy loss. Similarly spares required for fighter aircraft at the time of war

could be of great value in terms of fighting capability. In general, criticality of

a spare part can be determined from the production downtime loss, due to



spare being not available when required.

Based on criticality, spare parts are conventionally classified into three

classes, viz. vital, essential and desirable.

VITAL (V) : A spare part will be termed vital, if on account of its

non-availability there will be very high loss due to production downtime and/or a

very high cost will be involved if the part is procured on emergency basis. In a

process industry, most spare parts for the bottleneck machine or process will

be of vital nature. For example, bearings for a kiln in a cement plant will be

considered vital.

ESSENTIAL (E) : A spare part will be considered essential if, due to its

non-availability, moderate loss is incurred. For example, bearings for motors of

auxiliary pumps will be classified as essential.

DESIRABLE (D) : A spare part will be desirable if the production loss is

not very significant due to its non-availability. Most of the parts will fall under

this category. For example, gaskets for piping connection.

The VED analysis helps in focusing the attention of the management on

vital items and ensuring their availability by frequent review and reporting. Thus,

the downtime losses could be minimized to a considerable extent.



CHAPTER 3

ANALYSIS AND INTERPRETATION

3.1 SPARE PARTS CATALOGUE FOR MACHINE SHOP

The objective of this project was to understand the maintenance procedures

followed in the Machine Shop and to analyze the maintenance problems prevailing

here. As part of the project, a task was there to codify each spare parts used and to

prepare a spare parts catalogue for the machine shop.

The machine shop of Peekay Steel Castings Pvt. Ltd has seven machineries.

First one is TOS make Horizontal Boring Machine. Also there are four Vertical

Turret Lathes and two radial Drilling machines. As part of the spare parts catalogue

preparation, the different spare parts used in the machine shop were identified and

was able to differentiate almost 200 spare parts. These spares were then classified

based on their criticality and based on their frequency of use. For classifying the

spare parts based on their criticality, VED analysis was used and for classifying the

spare parts based on the frequency of use, FSN analysis was used. Using VED

analysis the spare parts were classified into Vital, Essential and Desirable and using

FSN analysis the spare parts were classified into Fast-moving, Slow-moving and

Non-moving. Using these two analysis it were able to classify the spare parts into

nine different groups.

CHRIST University

V E D

F VF EF DF

S VS ES DS

N VN EN DN

55


We have seen different types of codification system used in the industry. A

combination system of coding was done here which consists of both letters and

numbers. This was done to make the code so simple so that every personnel

working there can easily understand and detect them. Also FSN and VED analysis

is given in the code name so that a personnel on seeing the code tag tied on the

spare part can understand weather it is vital and fast moving, vital and slow

moving, desirable and fast moving etc.

The first three letters of the code is MNT which represents the maintenance

department. The fourth letter classifies the spare part into the following groups -

General, Mechanical, Electrical, Plumbing, Welding or those that are not part of

machine shop ( those that are part of the Katta company). Here the spare parts

belonging to plumbing, welding and that of Katta company were separately kept

because these were not use by the maintenance personnel. Now the spare parts

which are classified into Mechanical, Electrical and General are checked weather

they belong to any particular machinery or whether they are common to all. This is

represented by the fifth letter. The sixth space is given for VED analysis which

helps the concerned person understand that the spare part in his hand is vital,

essential or desirable. The seventh space is used for FSN analysis. These steps

group the spare parts into some common categories. The last two spaces are for

serial numbers which differentiate the spare parts that fall into the same categories

as discussed above. The spare parts catalogue prepared here consists of Spare parts

codification plan, spare parts code, spare parts description, stock location number

and the number of spare parts currently available.



SPARE PARTS CATALOGUE:

MNT

MNT - Maintenance

MEGWPK

M - MechanicalE - ElectricalG - GeneralW - WeldingP - PlumbingK - Katta Company

GV1V2V3V4H1R1R2L

G - GeneralV1 - Vertical Turning Lathe 1V2 - Vertical Turning Lathe 2V3 - Vertical Turning Lathe 3V4 - Vertical Turning Lathe 4H1 - Horizontal Boring MachineR1 - Radial Drilling Machine1R2 - Radial Drilling Machine2L - Lathe

VED

V - VitalE - Essential D - Desirable

FSN

F - Fast movingS - Slow moving N - Non moving

Serial Number



CODE DESCRIPTIONLOCATION NUMBER

QUANTITY AVAILABLE

MNTMLVN 01 Lathe Spare Motor 2.2/3.0 C6 1MNTMV1ES 01 Rubber Oil Seal (90, 120, 13) S5 4MNTMV1ES 02 Rubber Oil Seal (60, 130, 13) S5 2MNTMV2VN 01 VTL2 Gib X axis C5 2MNTMV2VN 02 VTL2 Gib Y axis C5 2MNTMV2VN 03 VTL2 Gib Z axis C5 2MNTMV2VN 04 Bearing 6313 C6 1MNTMV2VN 05 Bewel Gear for VTL2 C5 2MNTMV2VN 06 VTL2 Housing C5 1MNTMV2EN 01 Coupling Rubber Bush (Taper and Straight) C6 2MNTMV1/V4ED Rubber Rod (1200x52mm) C6 0MNTMV3VN VTL3 Turrent Locking Plate C5 1MNTMV4VN VTL4 Check Gearbox MainShaft C5 1MNTMV4VN VTL4 Housing C5 1

MNTMGVF 01 Grub Screw Sizes - 3/4"x 1/2", 3/4"x 1" S5MNTMGVF 02 Teflon Tape S2 2MNTMGVF 03 Thread Locker S2 2MNTMGVS 01 Bearing 6209 C6 2MNTMGVS 02 Bearing N313 ECP/C3 C6 1MNTMGVS 03 Bearing 51316 C6 2MNTMGVN 01 Bearing 6204 C6 1MNTMGVN 02 Bearing NJ317ECJ C6 1MNTMGVN 03 Bearing 6317 C6 1MNTMGVN 04 Bearing 6305 C6 2MNTMGVN 05 Bearing 3622 C5 1MNTMGVN 06 Bearing 6205 S5 1MNTMGVN 07 Brass Gib Lock C5 1MNTMGVN 08 Gib Pin C6 2

MNTMGES 01 Leg (Small) S1MNTMGES 02 Leg (Big) S2MNTMGEN 01 Brass Plate (260x16x22mm) C5 1MNTMGEN 02 Brass Plate (39x26x22mm) C5 1MNTMGEN 03 Copper Plate (180x150x6mm) C6 1MNTMGEN 04 Round Copper Plate C6 1



MNTMGEN 05 Tuflon Rod S6 1 SetMNTMGEN 06 1/2" Elbow Brass S6 1 SetMNTMGEN 07 1/4" Brass xniple S6 1 SetMNTMGEN 08 1" Ball Valve S6 1 SetMNTMGEN 09 Hose Nipple (brass) S6 1 SetMNTMGEN 10 1" Hex nipple S6 1 SetMNTMGEN 11 1/2" Hex Nipple (Brass) S6 1 Set

MNTMGDN 01 Lubrication Pipeline C6 1MNTMGDN 02 Coolant Pump 15HP C6 1MNTMGDN 03 Copper Tube 6x8mm C13 1MNTMGDN 04 Copper Tube 6x4mm C13 1MNTMGDN 05 Copper Tube 4x2mm C13 1MNTMGDN 06 Lubrication Pump (old) C6 1MNTMGDN 07 Stay Wire Clamp C6 2MNTMGDN 08 Limit Stopper S5 2MNTMGDN 09 Air Gun S5 9MNTMGDN 10 Neumatic Grinder handle (old-1, new-1)



CODE DESCRIPTIONLOCATION NUMBER QUANTITY

MNTEV1VF VTL1 DC Motor Carbon Brush S1 1MNTEV1VN Pressure Switch S1 1MNTEV1/H1VS Potentiometer VTL1/HB S1 3MNTER1/R2VS 01 Bottle Fuse (10 amps) - RD1/RD2 S2 2MNTER1/R2VS 02 Bottle Fuse (6 amps) - RD1/RD2 S2 1MNTER1/R2VS 03 Bulb 24V 60W S3 2

MNTEGVF 01 1.5 Square mm 1 Core C9 1MNTEGVF 02 1.5 Square mm 3 Core C9 1MNTEGVF 03 1.5 Square mm 6 Core C9 1MNTEGVF 04 Carbon Brush S1 10MNTEGVF 05 Insulation Tape (old-1, new-1) S2 2MNTEGVF 06 MN2 Relay (4.5-7.5 A) S4 1MNTEGVF 07 Glass Fuse (1, 2, 3, 5 amps) S2 1

MNTEGVS 01 1.5 Square mm 2 core C9 1MNTEGVS 02 1350VA Transformer C17 1MNTEGVS 03 150W Halogen Bulb and Case C14 1MNTEGVS 04 2.5 Square mm 2 core C9 1MNTEGVS 05 2.5 Square mm 3 core C9 1MNTEGVS 06 250W MH Lamp S3 3MNTEGVS 07 400W MH Lamp S3 2MNTEGVS 08 Add on Block (1 NO + 1 MC) S4 3MNTEGVS 09 Bridger Rectifier C17 1MNTEGVS 10 Halogen Bulb S3 1MNTEGVS 11 Halogen Bulb Case C14 2MNTEGVS 12 Halogen Lamp (150W) S3 2MNTEGVS 13 Josch Armature and Brush S1 1MNTEGVS 14 Lead S3 1MNTEGVS 15 Lead and Soldery Paste S3 1MNTEGVS 16 Limit Switch (new) S1 2MNTEGVS 17 Metal Halide Lamp Cup C14 1MNTEGVS 18 MN2 Relay (2-3.3A) S4 1MNTEGVS 19 MN2 Relay (4-6.5A) S4 1MNTEGVS 20 Relay (24V DC) S4 1MNTEGVS 21 Relay 48V S4 1



MNTEGVS 22 Sodium Fitting C14 2

MNTEGVN 01 0.063 KVA Transformer C17 1MNTEGVN 02 0.16 KVA Transformer C17 1MNTEGVN 03 1 KVA Transformer C17 1

MNTEGVN 04 260 VA Transformer C171(gone for

repair)MNTEGVN 05 500 VA Transformer C17 1MNTEGVN 06 Cable Tray C10 1MNTEGVN 07 Contactor (3TF50) S1 1MNTEGVN 08 Contactor 10A (MNX 18) S4 1MNTEGVN 09 Fuse 32A (FSA) S2 4MNTEGVN 10 Fuse 32A (HF) S2 4MNTEGVN 11 Fuse 63A (FSA) S2 3MNTEGVN 12 Fuse 63A (HF) S2 4MNTEGVN 13 Fuse 6A (EIT) S2 7MNTEGVN 14 Isolator ON/OFF Switch C10 1MNTEGVN 15 Old Limit Switch (ok) S1 1

MNTEGEF 01 4 Square mm 6 Core C9 1

MNTEGES 01 250W Choke S3 2MNTEGES 02 4 Pole Control Contactor 32A 220V S4 1MNTEGES 03 Bulb 60W S3 1MNTEGES 04 Capacitor 08MFD S3 1MNTEGES 05 Capacitor 42MFD S3 3MNTEGES 06 Contactor 32A 220V (telemechanique) S4 1MNTEGES 07 Flourescent tube choke and starter S3 1MNTEGES 08 Halogen Bulb Holder 16A S3 3MNTEGES 09 HRC Fuse 50A (Bussmann) S2 3MNTEGES 10 HRC Fuse 63A (HN00) S2 1MNTEGES 11 MCB 2 Pole 04A S2 2MNTEGES 12 MCB 2 Pole 10A S2 2MNTEGES 13 MCB 2 Pole 16A S2 4MNTEGES 14 MCB 3 Pole 06A S2 2MNTEGES 15 MCB 3 Pole 63A S2 3MNTEGES 16 MCB 4 pole 63A S2 1MNTEGES 17 MNX Contactor's Coil 110V S4 3MNTEGES 18 MNX Contactor's Coil 415V S4 1



MNTEGEN 01 16 amps Plug S4 5MNTEGEN 02 18 Bore Diameter Cooling Fan C13 1MNTEGEN 03 30 Bore Diameter Cooling Fan C13 1MNTEGEN 04 4 Square mm 1 Core C9 1MNTEGEN 05 6 Square mm 1 Core C9 1MNTEGEN 06 ALMON ARD Exhaust Fan C13 3MNTEGEN 07 Ammeter S1 1MNTEGEN 08 Connectors S4 1MNTEGEN 09 Contactor 10A S4 1MNTEGEN 10 Contactor 110V (MNX18) S4 1MNTEGEN 11 Contactor 110V (MNX9) S4 1MNTEGEN 12 Contactor 3 TF 47 C17 1MNTEGEN 13 Electronic Timer ETR500 S4 1MNTEGEN 14 Fuse 16A (FGN) S2 6MNTEGEN 15 Fuse 350A (Bussmann) S2 3MNTEGEN 16 Fuse and fuse carrier FGN Size 20A S2 3MNTEGEN 17 HRC Fuse 100A (HN Size1) S2 1MNTEGEN 18 HRC Fuse 125A (HN00) S2 1MNTEGEN 19 HRC Fuse 200A (HN Size1) S2 1MNTEGEN 20 HRC Fuse 250A (Size 1) S2 3MNTEGEN 21 HRC Fuse 80A (HN00) S2 2MNTEGEN 22 MCB 1 Pole 06A S2 3MNTEGEN 23 MCB 1 Pole 10A S2 1MNTEGEN 24 MCB 2 Pole 06A S2 1MNTEGEN 25 MCB 3 Pole 16A S2 1MNTEGEN 26 Micon Electronic ON Delay Timer S4 1MNTEGEN 27 NH2 Fuse 400A S2 6

MNTEGDN 01 Cable Glant 1 3/4 C10 31 1/8 C10 71 1/4 C10 141 3/8 C10 102 1/2 C10 3

2 3/4 C10 3 1” C10 4 2” C10 3

MNTEGDN 02 16 amps 4 Way Switch S1 4MNTEGDN 03 20 amps Plug C10 3



MNTEGDN 04 3 Pin Universal Socket C10 4MNTEGDN 05 30 amps Plug C10 3MNTEGDN 06 4 Way DB C10 1MNTEGDN 07 6 amp 1 Way Switch C10 15MNTEGDN 08 8x6" Switch Box C10 3MNTEGDN 09 Ceiling Rose C10 6MNTEGDN 10 DB Board With Plug C10 3MNTEGDN 11 DB Board without Plug C10 3MNTEGDN 12 DB Box C14 1MNTEGDN 13 Ignator (old) S3 2MNTEGDN 14 LT Control Switch C10 1MNTEGDN 15 MCB Metal Clad Plug and Socket 20A C10 1MNTEGDN 16 Single Phase DB C10 3MNTEGDN 17 Automatic Drain valve Installation S4 1



CODE DESCRIPTIONLOCATION NUMBER QUANTITY

MNTWVS 01 Pressure Regulator (tigmig) C1 1MNTWVS 02 Gas Preheater Assembly C1 1MNTWEN 01 Solenoid Valve C1 1MNTWDN 01 Pottmeter (pankaj) C1 1MNTWDN 02 Gas Preheater (old) C1 1

MNTPDN 01 20mm Ball Valve C1 1MNTPDN 02 40mm Ball Valve C1 1MNTPDN 03 Flot 40mm C1 1MNTPDN 04 Foot Valve C1 1

MNTKVS 01 CT Motor 5HP C6 1MNTKVN 01 Gear Coupling (3 ton crane hoist motor) C6 1MNTKVN 02 Filter Card for MRD model Welding S1 1MNTKVN 03 Wall Mounting Fan C2 1MNTKEN 01 Tie Rod S1 1MNTKEF 01 Cable Carrier Trolley C2 1MNTKDN 01 Almonard Exhaust Janback sideup C2 1

MNTGGVF 01 CRC (old-1, new-1) S2 1MNTGGVF 02 Rustlick 631 S2 1MNTGGVF 03 CTC S2 1MNTGGVF 04 M seal S2 1MNTGGVS 01 Anabond Bearing Retainer S2 1MNTGGVS 02 Anabond 666T Plus (25g, 100g) S2 1MNTGGVS 03 Shellac S2 1MNTGGVN 01 Key (1 set) S2 1MNTGGEF 01 Marker (White Board) S2 1MNTGGEF 02 Permanent Marker S2 1



3.2 SWOT ANALYSIS

STRENGTHS

Presence of experienced persons.

Large adaptive labour force.

Just in time production.

Better employee-employer relationship.

Better feedback system.

Excellent reputation

Efficient maintenance management team in the company.

Well-developed Quality control system in the company

Environmental and safety award winner.

WEAKNESSES

The safety measures must be strictly implemented inside the foundry

No medical centre in the company.

Scraps not stored properly.

Pattern storage need more space.

OPPORTUNITIES

Availability of raw materials in large quantity.

The steel consumption is found to grow in near future.

Maximum exploitation of export market.

THREATS

High competition.

Government regulations.

Environment is not as friendly; as in rainy season, premises full of water.



CHAPTER 4

FINDINGS AND SUGGESTIONS

4.1 Findings

1. During the last one year, the average percentage breakdown of machineries

in the machine shop follows a zigzag curve.

2. During August 2009 the machineries were not available for only 0.42% of

the available time. But September 2009 showed the highest breakdown and

during this month the machineries were not available for 8.15% of the available

time.

3. Due to heavy work load, when proper maintenance is neglected for a month,

the next month showed a huge non-avilability of that particular machine.

4. During the last one year, Vertical Turning Lathe – 2(VTL1)was under

breakdown for 13 times and it was not available for 246.4 hours of the total

availability time.

5. During the last one year, Vertical Turning Lathe – 1(VTL2) was under

breakdown for 10 times and it was not available for 63 hours of the total

availability time.

6. During the last one year, Horizontal Boring Machine(HB1) was under

breakdown for 6 times and it was not available for 137 hours of the total

availability time.

7. Radial Drilling Machine 1 & 2 had the least number of breakdowns.

8. The crane used inside the machine shop had a frequent number of

breakdowns during the last two months.

9. It was not able to identify all the spare parts of the machines as the machines

are very old.

10. Spare parts were not sored in an orderly manner.

11. Machine shop follows breakdown, preventive and routine maintenance now.



4.2 Suggestions

1. It is clear that VTL1, VTL2, and HB1 has been undergone frequent

breakdowns. So more focus on maintenance should be given to them.

2. In the machine shop, the Vertical Turning Lathes work for most of the time.

Therefore proper preventive and routine maintenance should be given to them.

3. The routine maintenances should not be avoided even though there is lot of

pending works.

4. For moving the castings in the machine shop crane has to be there. Breakdown

of the crane could delay the working of all machinery in the machine shop. So

try keeping the breakdown of crane to zero.

5. VTL1, VTL2, HB1 are the oldest machineries in the machine shop. Therefore

proper routine and preventive maintenance should be given to them.

6. Identify all the new spare parts, codify them and add them in the spare parts

catalogue.

7. Always update the spare parts catalogue periodically and give importance to

the vital and fast moving spare parts as their stock should always be there.

8. Put an identification tag or mark with the code to enable the stores

personnel identify during the time of issue. If sufficient care is not taken to

incorporate the code, a lot of time is spent in locating the part and that time

is actually added to the down-time which is really very expensive in case

of vital spare parts.

9. Try to achieve autonomous maintenance by making the breakdowns nil.



4.3 CONCLUSION

Maintenance is very important for proper and prolonged functioning

of the machineries. Therefore predictive, preventive and routine

maintenance should be given at proper time.

VTL1, VL2 and HB1 had the large number of breakdowns during the

last year. Proper caring has to be given to them.

Managing the spare parts is important as it prevent duplication of the

spare parts. To prevent duplication, it is essential to give a numerical

name or code to each spare part.

The spare parts catalogue may be produced in sufficient copies

so as to make available for all the users such as the maintenance

personnel, stores personnel and purchase personnel. This helps them

to easily locate the spare part.

For the successful spare parts management, it is essential to analyse

the spare parts inventory based on various characteristics such

as the frequency of issues, the criticality etc.

The VED analysis helps in focusing the attention of the

management on vital items and ensuring their availability by frequent

review and reporting. Thus, the downtime losses could be

minimized to a considerable extent.

FSN analysis helps in establishing most suitable stores layout by

locating all the fast moving items near the dispensing window to

reduce the handling efforts. Also, attention of the management is

focused on the Non-Moving items to enable decision as to whether

they are required in the future or they can be salvaged.



BIBLIOGRAPHY

Richard B Chase, “Operations Management for Competitive Advantage

Ninth Edition”, Tata McGraw-Hill

S N Chary, “Production and Operations Management”

Naresh K Malhotra, “Marketing Research Fifth Edition”, Pearson Education

Ministry of Steel, “Annual Report 2009-10”, Government of India

www.steel.nic.in

www.peekaysteel.com

www.productivity.in


http://www.steel.nic.in/

http://www.productivity.in/

http://www.peekaysteel.com/

tharun peekay steels 02

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