A STUDY OF ENQUIRY RESPONSE LEAD TIME AND CAPACITY UTILIZATION AT PEEKAY STEELS PVT. LTD

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1. INTRODUCTION
Steel casting is a growing industry that directly affects the development of other industries.
The overall development of a nation almost depends upon the steel industries. Nowadays,
India is included in the first tenth nation on total production in all over the world.
The efficiency is a measure of how economically the firm’s resources are utilized when
providing a given level of customer satisfaction. The efficiency of industrial line production
is very crucial as it results in an improved production and utilization of resources. In
business, knowing how well we are performing and where we can improve is vital to success.
Gains in productivity can lead to competitive advantages. To achieve these gains, we need to
know if we are making effective use of resources and getting the most out of what we have.
Efficiency and Utilization are two measures that business can use to track “how we are
doing.”
The project deals with study of the Enquiry response of marketing department and Capacity
Utilization of the Peekay Steel Castings (P) Ltd. The study mainly focuses on the current
Customer Enquiry System and difficulties in the current system. And also to intricacies of the
manual cost and delivery estimation of customer enquiry through detailed discussion with the
experts at PeeKay Steels. The study also focuses on the capacity utilization f the Machines in
the Machine Shop department. In order to understand the machine and worker utilization.
The study will come up with some solutions to the problems or difficulties that may find due
course of study.
1.1 Scope of the Study
The study being conducted at PeeKay Steels, and the outcomes of this project can improve the
Enquiry Lead time and to enhance the Worker and Machine Utilization. The project mainly deals
with the analyzing the problems with the current existing Enquiry system and its difficulties and also
interpret the worker utilization by taking Helper utilization and make suggestions. This study helps in
practical aspects of the theories which are learned in the class room. Also this study helps to know
about the real life problems of the present business scenario.

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1.2 Objectives of the study
 To Analyze the problems existing in the current enquiry system
 To find the reasons for taking too much time for responding
 To improve the Lead response time
 To Determine the Time Required for the for Process under study
 To Analyze the worker utilization
 Give suggestions for improvement based on the Study.
1.3 Research Methodology
The assumption made here are mainly from direct observation from the experience of the
Marketing and Planning Personnel and direct observation from Machine workshop. Also
both primary and secondary data are collected. The collection of primary data was through
direct interview methods from the officials and employees of the departments. They can
provide the exact data required data for this study. This process ensures the reliability and
accuracy of data used in the report. The secondary data collected was through the help of
online resources, quality manuals, brochures and reports of the company.
1.4 Limitations
The limitations of this study are following,
 The information provided by the company is assumed to be authentic.
 Limited time for Observation.
 Activities beyond allotted time is not Recorded
 The production varies according to the order.
 Time for interview with the managers is limited.

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2. LITERATURE REVIEW
Companies apply different tools to measure the performance in order to retain a competitive
edge in the market. According to Anvari and Edwards (2011) showed that most of the
companies need relevant performance measures for a systematic and an accurate
performance measurement.
According to shirose and nakajima (2011) Machine utilization measured the percentage of
scheduled time that machine is actually productive. Machines in an industry can be
underutilized, properly utilized and over- utilized as the case may be. Underutilization of
machine is mostly caused by either planned or unplanned downtime and sometimes as a
result of improper planning. Also planned down time is the time machine is not available to
produce based on scheduled events as set up time, adjustment time, employee breaks,
maintenance and shop-floor meetings. The unplanned downtime is the time machine is not
available to produce based on unscheduled events such as idling and minor stoppage
According to nakajima(1988) the total productive maintenance (TPM) concept, provided a
quantitive metric called Overall Equipment Effectiveness (OEE) for measuring productivity
of individual equipment in factory. It identifies and measures important aspects of
manufacturing namely availability, performance. This supports the improvement of
equipment effectiveness and thereby it’s productivity.
The evolution towards a global economy has expanded the base of competition virtually for
all business. As by Fleischer et al (2006) the competitiveness of manufacturing companies
depends on the availability and productivity of their production facilities. And also huang et
al (2003) said that due to intense global competition, companies are striving to improve and
optimize their productivity in order to remain competitive.
Machines are meant to work efficiently, but in some circumstances machines can be less
productive. According to konopka (1996) Industrial machine efficiency is one of the factors
that are frequently overlooked by management and this can lead towards losses which
reduces the yield. There is need for a company to know the level at which they can produce
in terms of machine throughput, whether they are theoretically producing to what the
machines can produce or not. Therefore, in other to ensure that machine in most industries

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are properly utilized, there is a need for mathematical model in the form of a tool to check
the utilization status of machines.
Commitment to product quality and customer satisfaction programs are essential for
companies to compete against their competitors. Thinking about post-sale customer
satisfaction or managing customer dissatisfaction programs as a way to reinforce customers’
buying preferences for companies products and services for their current and future
purchases.
Quality of product is also defined according to which customer’s expectations, needs and
demands are met. According to Raisinghani et al.(2005) the implementation of the ISO 9000
defined as a set of quality standards that are necessary for manufacturing organizations.
Quality Control is a set of procedures intended to ensure a manufactured product defines a
set of quality criteria or meet the requirements of a client. The aim of Quality Control is to
prevent the defects rather than detecting the defects. According to Besterfield (2004) the
areas responsible for quality control are design, procurement, process design, production,
inspection and test , packaging, storage and product service.

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3. INDUSTRY PROFILE
A foundry is a factory that produces metal castings. Metals are cast into shapes by melting them into a
liquid, pouring the metal in a mold, and removing the mold material or casting after the metal has
solidified as it cools. The most common metals processed are aluminum and cast iron. However, other
metals, such as bronze, brass, steel, magnesium, and zinc, are also used to produce castings in foundries.
In this process, parts of desired shapes and sizes can be formed.
3.1 Global Scenario:
As per 50th World casting Census published by Modern Castings USA in December 2016, Global
Casting Production Stagnant. Worldwide casting production grew by Half a percent in 2015-16.
In 2015, world casting production reached 104.1 million metric tons, a shade over the 103.7 million
metric tons produced in 2014 and 103.02 million metric tons in 2013 there is a marginal growth of
approx. 0.4 % from 2014 to 2015. It is the 6th year in a row the market has expanded after global
recession from 2008-09. The World’s two top producing Nations in 2014 both reported small decrease in
production. China’s total decreased by 1.3% from 46.2 million to 45.6 million tones. While the USA
dropped 0.8% to 10.39 million metric tons from 10.47 million tons. There is a 7.5% increase in
production in India to 10.77 million tons. China accounts for 44% of the total casting production in the
World and India & USA combined 20% of total Production.
3.2 Indian Foundry Industry:
The Indian foundry industry manufacturers metal cast components for applications in Auto, Tractor,
Railways, Machine tools, Sanitary, Pipe Fittings, Defense, Aerospace, Earth Moving, Textile, Cement,
Electrical, Power machinery, Pumps / Valves, Wind turbine generators etc. Foundry Industry has a
turnover of approx. USD 19 billion with export approx. USD 2.5 billion..
Approx. 1500 units are having International Quality Accreditation. Several large foundries are modern &
globally competitive. Many foundries use cupolas using LAM Coke. However, these are gradually
shifting to Induction Melting. There is growing awareness about environment & many foundries are
switching over to induction furnaces & some units in Agra are changing over to coke less cupolas.

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3.2.1 Major Foundry Clusters:-
Each cluster is known for its products. The major foundry clusters are located in Batala, Kozhikode,
Jalandhar, Ludhiana, Agra, Pune, Kolhapur, Sholapur, Rajkot, Mumbai, Ahmedabad, Belgaum,
Coimbatore, Chennai, Hyderabad, Howrah, Kolkata, Indore, Chennai, Ahmedabad, Faridabad, Gurgaon
etc.
Typically, each foundry cluster is known for catering to some specific end-use markets. For example, the
Coimbatore cluster is famous for pump-sets castings, the Kolhapur and the Belgaum clusters for
automotive castings and the Rajkot cluster for diesel engine castings, Howrah cluster for sanitary castings
etc.
3.3 Role in Manufacturing Sector:
The new manufacturing policy envisages the increase in the share of manufacturing in the GDP
to 25% from current 15% & to create 100 Million additional jobs in next 10 years. Since all
engineering & other sectors use metal castings in their manufacturing, the role of foundry
industry to support manufacturing is very vital. It is not possible to achieve the above goal
without the sustainable corresponding growth of the foundry sector
3.3.1 Production in Million Tons:
Fig 3.1 Production of Castings in Million

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3.3.2 Export / Import trends:
The Exports have been showing healthy trends approx. 25-30% YOY till 2011-12 after that there was
slow down in export. However, the current exports for FY 2015-16 are approx. USD 2.5 billion.
Fig.3.2 Export/Import Trends
3.3.3 Sector wise consumption of Casting:
Automobile Sector is major consumers of castings, Please see the Chart Below.
Fig. 3.3 Sector wise Major Consumers of Castings

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3.4 Company Profile
Peekay Steel Castings Pvt Ltd is a vibrant, tech-savvy company established in Calicut, Kerala, India in
1997. It has a unit situated in Coimbatore, Tamilnadu. Foundry manufactures and supplies steel castings
to industry majors like India’s Navaratna Companies and major global OEMs in the Oil, Gas, Power,
Transportation, Earth- moving and Engineering Sectors.
It is the flagship company of the reputed Peekay Group, which plays a vital role in the industrial
development of Kerala. It has an annual turnover of US $ 50 million with a growth rate of 50%. Peekay
Steel Castings are exported to various counties like USA, Europe, Germany, Far East (Korea,), the
Middle East (Iran), Netherlands, Spain, France, Belgium, Japan, Canada, UK, UAE and ASEAN
Countries (Singapore). Over the years, the company has gained international reputation as leading
manufacturers and suppliers of quality steel castings.
The foundry produces high integrity steel and alloy steel castings to international standards and
specifications. The product range also covers Nickel based alloys, Duplex and Super Duplex stainless
steel alloys. Peekay makes steel castings with piece weights ranging between half a kilo and 15 tons.
The manufacturing facility includes medium frequency induction melting furnaces and the moulding
process is carried out in no-bake process (Alkaline Phenolic No Bake Process- Alphabet Process)
equipped with high-speed continuous sand mixing and reclamation tower. Recently PK added AOD
(Argon Oxygen Decarburization) metal refining facility for production of high quality steel castings
including special grades like Martensitic Steel, Duplex and Super duplex stainless steel castings.
It has installed sophisticated and modern quality control laboratory for physical and chemical testing and
radiography enclosure room with Co-60 and Ir-192 for radiography testing of castings.
The layout of the foundry is linear and developed around streamlined casting process in flow technology.
Peekay is approved supplier of castings for nuclear power plants. The company produces castings
consistently conforming to customer specifications in terms of quality and delivery. The company is a
member of casting technology international and has the distinction of being the only foundry in India
holding all major global certification and accolades under one umbrella.
3.4.1 Organization Structure
This organization follows line or scalar structure with departmentation by function. The activities in
organization are been divided into primary functions to be performed. Each function is been allotted in a
separate department. These functions further subdivided into various sub sections as size. The line of

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authority flows from top to bottom and line of responsibility in reverse. The business activities are
divided into various sections as Production, Accounts, Distribution, etc. Production or works section
again subdivided into various departments as patterns & methods, moulding, melting, Quality control etc.
The responsibility of each department head is been clearly defined. The CEW is the overall in charge of
works. The line of authority flows from JMD to CEW to departmental heads from there it moves up to
labors through lesser and lesser bosses. However, responsibility flows in opposite direction i.e. labor is
responsible to supervisors, each supervisor is responsible to department manager.
3.4.2 Plant Location
PEEKAY STEEL situates in a dynamic point of location. It situates aside NH 17 near to 6 km from
Calicut city towards south, 200 km from Kochi, nearest major seaport, the other one is Mangalore, 240km
towards north. Calicut Railway station is at 5km distance.
Operations Branches: At the address, 4/242, Chinnamadampalayam, Billichi Post, Coimbatore, 641019,
Tamil Nadu, India.
3.4.3 Plant Layout
Functional or process layout has been followed for the plant at Nallalam, Kozhikkode. Since the material
is too heavy to handle cranes are used for material movement purpose. At some parts congestion of
materials, components, and Excessive amounts of work in process are visible. Some transportation line is
also long. Although every minor change in production programme, additions of new machines or sections
do not justify the redesign of the plant layout, but when these changes accumulates redesign of layout
structure become inevitable.
3.4.4 Production System
The type of production system in PEEKAY comes under the classification of Job Order Production. It is
the manufacturing of products strictly to meet specific customer requirements. The products are made
when orders are received from customers. Repeated order of same items usually does not require repeated
planning. Master plan is constructed in which production time is balanced against plant capacity.

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3.4.5 Management Information System
Management Information System (MIS) software has been installed in PEEKAY. It is a formal method of
making available to management accurate and timely information necessary to facilitate the decision-
making process and enable the organizations planning control and operational functions to be carried out
effectively. MIS helps management to take decisions in the following fields;
 To exercise the necessary control over day to day operations
 Forecasting 
 Inventory management
3.4.6 Vision of the Company
To be an engineering conglomerate and lead Peekay to new horizons, expanding and diversify to new
industries and cutting edge technologies. A one-stop supplier to all major OEM’s globally in terms of
ready to assemble machined castings, forging and fabrication requirements.
3.4.7 Mission of the Company
 Emerge as one of the top five casting manufacturers in the world.
 To serve the customers with wide range of requirements starting from 0.5 kg to 15 Ton single
piece casting from our different plants in different locations.
3.4.8 Quality Policy
PEEKAY STEEL CASTING (P) LTD shall consistently and diligently manufacture products exceeding
the expectation of our customers, to remain a leader in casting market by excellence in total quality
performance. The foundry is committed to its quality policy and objectives. To achieve this foundry has
formulated a quality system and assurance program to bring about improvements in all areas of operation
including:
 Continuous effort to improve product quality
 Training and motivation of employees
 Improve professionalism and competence
 Reduce rejections, rework & wastage and conserve energy

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3.4.9 Quality Objectives
Sl no. Objectives Process
1
To reduce enquiry response time, to improve enquiry
converted into orders, to improve On Time Delivery
performance on continual basis
Marketing and Planning
2 To reduce % rejection and % rework on continual basis Methoding and Moulding
3 To reduce Tap-to-Tap time on continual basis Melting
4
To improve heat treatment furnace utilization on continual
basis
Heat Treatment
5 To reduce inventory on continual basis Fettling
6
To improve Quality and delivery rating of suppliers on
continual basis and development of new suppliers
Purchase
7 To reduce customer complaint on continual basis QC
8 To improve effectiveness of QMS on continual basis MR
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Zero rejection and to reduce machining related rework on
continual basis
Machine Shop
10
To reduce break down maintenance on continual basis by
improved preventive maintenance
Maintenance
11
Training and motivation of employees to develop team of
professional with higher degree of competence
HR
Table 3.4 Quality Objectives

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3.4.10 Major Dealing Customers
ABROAD
 Flowserve sulphur springs, USA
 Cooper Cameron Valves, USA
 Mokveld Valve, Netherlands
 GE Transportation, USA
INDIA
 Audco india Ltd, Coimbatore 
 BHEL, Trichy 
 Alstom Projects India Ltd., Vadodara
 Fisher Sanmar Ltd., Chennai
3.4.11 Some of the Products
 Valve Bodies for power stations
 Wheel Hub (locomotive parts)
 Steam, Gas turbine parts 
 Support Flange
 Cylinder Head
 Coupler Body
 Shell Castings

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4. DATA COLLECTION & ANALYSIS
VERTICAL TURNING CENTER (VTC)
Machine Id: VTC-1 Height: 1100mm
Speed Range: 50-500 RPM Resolution: 1 Micron
Simultaneous Axis: X & Z Load Capacity: 12M
DAY 1
Heat No: FS212
Sl
No.
Activity Start Time Finish
Time
Total
Time
No of
Workers
Sr. Hr.
1 Turning 00:00:00 00:07:00 00:07:00 1
2 Measuring 00:07:00 00:11:00 00:04:00 1
3 Turning 00:11:00 00:29:00 00:18:00 1
4 Tool setting 00:29:00 00:35:00 00:06:00 1 1
5 Turning 00:35:00 01:00:00 00:25:00 1
6 Programming & setting tool 01:00:00 01:23:00 00:23:00 1 1
7 Turning 01:23:00 01:38:00 00:15:00 1
8 Cleaning 01:38:00 01:42:00 00:04:00 1
9 No work 01:42:00 01:51:00 00:09:00
10 Measuring 01:51:00 01:58:00 00:07:00 1
11 Turning 01:58:00 02:10:00 00:12:00 1
12 Cleaning 02:10:00 02:12:00 00:02:00 1
13 No work 02:12:00 02:18:00 00:06:00
14 Turning 02:18:00 02:28:00 00:10:00 1
15 Measuring 02:28:00 02:30:00 00:02:00 1
16 Turning 02:30:00 02:59:00 00:29:00 1
17 Cleaning 02:59:00 03:00:00 00:01:00 1
18 Measuring 03:00:00 03:02:00 00:02:00 1
Table 4.1 FS212 Time Chart

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Total Available Time = 3 Hr. 02 Mints = 182 Mints
Total Idle Time = 50 Mints
Total Operating Time = 182-50 = 132 Mints
Machine Efficiency = (Operation Time)/(Available Time) x 100%
Machine Efficiency = (132/182) x 100 = 72.5%
Worker Utilization = (Total Time Spent for Performing Activities)/ (Total Available Time) x 100%
Total Available Time = 2 x 182 = 364 Mints
Total Time spent for Performing Activities = 196 Mints
Total Worker Utilization = 196/364 = 0.5384 = 53.8%
Helper Utilization:
0 Helper = 8021 = 80.21%
1 Helper =0.1648 = 16.48%
2 Helper = 0.0329 = 3.2%

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Fig. 4.1 Helper Utilization FS212
Fig. 4.2 Machine Utilization FS212
80%
17%
3%
Helper Utilisation
0 Helper
1 Helper
2 Helper
27%
73%
Machine Utilization
Operational
Idle

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DAY 2
Heat No: FS211
Sl
No.
Time
Total
Time
No of
Workers
Sr. Hr.
1 Program loaded 00:00:00 00:03:00 00:03:00 1
2 Turning 00:03:00 00:15:00 00:12:00 1
3 Measuring 00:15:00 00:18:00 00:03:00 1
4 Turning 00:18:00 00:27:00 00:09:00 1
5 Tool changing and setting 00:27:00 00:45:00 00:18:00 1 1
6 Cleaning 00:45:00 00:47:00 00:02:00 1
7 Measuring 00:47:00 00:49:30 00:02:30 1
8 Turning 00:49:30 01:17:30 00:28:00 1
9 Measuring 01:17:30 01:20:55 00:03:25 1
10 Turning 01:20:55 01:26:59 00:06:04 1
11 Tool setting 01:26:59 01:36:00 00:10:00 1 1
12 Cleaning 01:36:00 01:42:00 00:06:00 1
13 Turning 01:42:00 01:54:00 00:12:00 1
14 Measuring 01:54:00 01:57:00 00:03:00 1
15 Turning 01:57:00 02:05:00 00:08:00 1
16 Measuring 02:05:00 02:08:00 00:03:00 1
Worker Utilization = (Total Time Spent for Performing Activities)/(Total Available Time) x 100%

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Worker Utilization:
0 Helper = 0.7265 = 72.65%
1 Helper = 0.2826 = 28.29%

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Fig. 4.3 Helper Utilization FS211
Fig. 4.4 Machine Utilization FS 211
72.60%
28.29%
Helper Utilisation
0 Helper
1 Helper
39%
61%
Machine Utilisation
Operational
2nd Qtr

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DAY 3
Heat No: FS211
Sl
No.
Time
Total
Time
No of
Workers
Sr. Hr.
1 Tool setting 00:00:00 00:12:00 00:12:00 1 1
2 Turning 00:12:00 00:15:00 00:03:00 1
3 Cleaning 00:15:00 00:16:00 00:01:00 1
4 Measuring 00:16:00 00:22:00 00:06:00 1
5 Tool setting 00:22:00 00:24:00 00:02:00 1 1
6 Turning 00:24:00 00:34:00 00:10:00 1
7 Cleaning 00:34:00 00:39:00 00:05:00 1
8 Turning 00:39:00 00:50:00 00:11:00 1
9 Measuring 00:50:00 00:52:00 00:02:00 1 1
10 Turning 00:52:00 00:56:00 00:04:00 1
11 Completed 00:56:00
12 No work 00:56:00 02:34:00 01:38:00
Total Idle Time = 158
Total Worker Utilization = 100/308 = 0.3246= 32.46%

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85.71%
14.28%
Helper Utilisation
0 Helper
1 Helper
Machine Utilisation
Operational
Idle
Helper Utilization:
0 Helper = 0.8571= 85.71%
1 Helper = 0.1428 = 14.28%
Fig. 4.5 FS211 Helper Utilization
Fig. 4.6 FS211 Machine utilization

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VERTICAL TURNING LATHE
Machine ID : VTL -5 Heights : 1800 MM
Speed Range : 1-200 RPM Resolution : 1 Microns
Simultaneous Axis : X & Z Load Capacity : 12 MT
DAY 4
Heat No: H17463
Sl
No.
Time
Total
Time
No of
Workers
Sr. Hr.
1 Removing the
Nut & bolt
00:00:00 00:10:00 00:10:00 1 1
2 Waiting for crane 00:11:00 00:19:00 00:08:00
3 Setting crane ropes 00:19:00 00:21:00 00:02:00 1 1
4 Unloading and Changing
side
00:21:00 00:26:30 00:05:30 1 1
5 Loading 00:26:30 00:29:44 00:03:14 1 1
6Screwing and bolting 00:29:44 00:42:57 00:13:13 1
7 Program loading 00:42:57 00:45:00 00:03:57 1
8 Phasing 00:45:00 00:59:35 00:14:35 1
9 Clean the scraps from
casting
00:59:40 01:00:55 00:01:15
1
10 Measuring and
checking
01:00:55 01:02:55 00:02:00 1
11 Phasing 01:02:55 01:20:55 00:18:00 1
12 Cleaning the scraps 01:21:00 01:22:00 00:01:00 1
13 Measuring and checking 01:22:00 01:24:00 00:02:00 1
14 Work Stopped 01:24:00 01:27:00 00:03:00
15 Program loading 01:27:00 01:29:00 00:02:00 1
16 Turning 01:29:00 02:10:00 00:41:00 1
17 Clean the scraps 02:10:00 02:12:00 00:02:00 1
18 Program loaded 02:12:00 02:13:00 00:01:00 1
19 Turning 02:13:00 02:36:00 00:23:00 1
20 Work Stopped 02:36:00 02:37:00 00:01:00

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21 Cleaning the scraps 02:27:00 02:38:00 00:01:00 1
22 Measuring 02:38:00 02:39:00 00:01:00 1
23 Turning 02:39:00 03:00:00 00:21:00 1
24 Cleaning 03:00:00 03:01:00 00:01:00 1
25 Measuring 03:01:00 03:02:00 00:01:00 1
26 Program loaded 03:02:00 03:03:00 00:01:00 1
27 Turning 03:03:00 03:18:00 00:15:00 1
Table 4.4 H17643 Time Chart
Total Idle Time = 59.20 Mints
Total Operating Time = 198-59.20 = 138.8 Mints
Machine Efficiency = (138.8/198) x 100 = 70.10%
Total Time spent for Performing Activities = 207.45 Mints
Total Worker Utilization = 207.45/396 = 0.5238 = 52.38%
Helper Utilization:
0 Helper = 0.7904= 79.04%
1 Helper =0.1262 = 12.62%
2 Helper = 0.07702=7.07%

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Fig. 4.7 H17463 Time Chart
Fig. 4.8 H17463 Machine Utilization
79.04%
12.62%
7.07%
Helper Utilisation
0 Helper
1 Helper
2 Helper
70.20%
29.80%
Machine Utilisation
Operational
Idle

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DAY 5
Heat No: H17334
Sl
No.
Time
Total
Time
No of
Workers
Sr. Hr.
1 Machine off 00:00:00 00:12:00 00:12:00
2 Program Loading 00:12:00 00:13:00 00:01:00 1
3 Phasing 00:13:00 00:30:00 00:17:00 1
4 Cleaning &Measuring 00:30:00 00:37:00 00:07:00 1
5 Program loading 00:37:00 00:38:00 00:01:00 1
6 Phasing 00:38:00 01:21:00 00:43:00 1
8 Phasing 01:23:00 02:09:00 00:46:00 1
10 Final Phasing 02:15:00 02:56:00 00:41:00 1
Table 4.5 H17334 Time Chart

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Helper Utilization:
0 Helper = .9147 = 91.47%
1 Helper =0.0795 = 7.95%
Fig. 4.9 H17334 Helper Utilization
91.47%
7.95%
Helper Utilisation
0 Helper
1 Helper
85.30%
14.70%
Machine Utilisation
Operational
Idle

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DAY 6
Heat No: H17335
Sl
No.
Time
Total
Time
No of
Workers
Sr. Hr.
1 Program loading 00:00:00 00:01:00 00:01:00 1
2 Chamfering 00:01:00 00:32:00 00:31:00 1
3 Cleaning 00:32:00 00:33:00 00:01:00 1
4 Checking the dimension 00:33:00 00:35:00 00:02:00 1
5 Chamfering 00:35:00 00:45:00 00:10:00 1
6 Cleaning 00:45:00 00:46:00 00:01:00 1
7 Removing nuts and bolts 00:46:00 00:58:00 00:12:00 1 1
8 Waiting for crane 00:58:00 01:23:00 00:25:00
9 Tying the rope 01:23:00 01:26:00 00:03:00 1
10 Unloading 01:26:00 01:35:00 00:09:00 1
11 Load the second phase 01:35:00 01:47:00 00:12:00 1 1
12 Screwing bolt and nuts 01:47:00 02:07:00 00:20:00 1 1
Table 4.6 H17335
Total Idle Time = 67.00 Mints
Machine Efficiency = (Operation Time)/ (Available Time) x 100%

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Helper Utilization:
0 Helper = 0.5433 = 54.3%
1 Helper =0.1102 = 11.02%
2 Helper = 0.3466= 34.6%
Fig. 4.11 H17335 Helper Utilization
54.30%
11.02%
34.60%
Helper Utilisation
0 Helper
1 Helper
2 Helper
47.30%
52.70%
Machine Utilisation
Operational
Idle

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5. FINDINGS & SUGGESTIONS
During the course of Internship, we have seen some Drawbacks in the Production as well as in
the Planning and Market Department.
Here we discuss about existing enquiry response system where in, the shortcomings of existing
enquiry system is brought into light that is the high duration taken in customer enquiry response
which is performed manually by each department one after another. To overcome this short
coming the plan is to implement IT enablement to customer enquiry response of Peekay steels
castings.
5.1 Categorization of Enquiry
While an enquiry received from customer, marketing personnel conduct a preliminary review of
customer enquiry. After the clarification of customer drawings and specification with them, then
marketing personnel will register the enquiry in enquiry register by putting inputs given by
customer such as item description, grade, quantity, weight, etc…thereafter marketing personnel
will send an acknowledgement to customer and they generate an estimation sheet. In this ES, the
enquiry has been classified into five categories on basis of customer requirement.
Initially, the order is sub categorized into two on basis of existing order or new order. This
existing order is then subcategorized into Category1 and Category 2 on basis of its specification.
Existing order with existing specification is been categorized as Category 1. Moreover, Existing
order with new specification is been categorized as Category 2.
For the new item enquiry, DGM and JMD conduct initial feasibility study of enquiry, if not
feasible, marketing personnel will send rejection letter to customer. If feasible, will be
categorized into Category 3 or Category 4 or Category 5 based on the complicacy and intricacy.
If the item is complicated or 3D model is required, it is categorized as Category 4. Category 4 is
named as complicated new item development. The non-complicated item is then classified into
Category3 or Category5 on basis of intricacy of grade. If intricate grade, estimation sheet is
categorized as Category 5 named as intricate grade. Another is been categorized as Category3
named as new item development. But, in the existing process all categories are following same
process. Instead of that, the process is been restructured in new process.

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Fig 5.1 Existing Enquiry System

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Planning and marketing has to send introductory letter to the customer, along with company brochure
attached. While the customer get the details about the company, they will start inquire through email,
courier or post. After receiving the inquiry from customer, marketing personnel will do preliminary
review of drawings and specifications. If any of the input is not clear, they will get clarified with
customer. Then they will register the enquiry in inquiry register by putting inputs given by customer such
as item description, grade, quantity, weight, etc…
Based on customer inputs marketing and planning department generate an Estimation Sheet. And directly
send to Methods Department. They shall review the requirements and fill up the Estimation Sheet with
information such as estimated weight, intricacy, yield, pattern cost and other factors quoting to the
customer. They also check the feasibility of production of product. If not feasible, send to DGM for
reviewing before rejection, then send rejection letter of enquiry to customer. If feasible, the estimation
sheet will be passed to pattern shop department for further review.
Pattern department checks whether the pattern for that specific enquiry is available or not. If pattern is
available, they manually check the pattern condition and if pattern condition is ok, then the estimation
sheet will be given to QA department. In case, pattern condition is not ok, they check whether the pattern
can be corrected, if possible, they will estimate and provide the Enquiry response time and correction cost
of pattern at estimation sheet and pass to QA department. In case correction is not possible in current
pattern or pattern is not available, they will estimate and provide the new pattern cost and Enquiry
response time for its production and send to QA department.
QA department will provide their review, after checking the chemistry, heat treatment and other quality
requirements for item. They also add their comment in ES and pass to marketing personnel for further
action. If not feasible, after consulting with DGM, marketing personnel will send rejection letter to
customer.
If feasible, marketing personnel send the scanned copy of estimation sheet with above information to Cost
department for costing calculation. At the same time, marketing department pass information to RT
department, and Machine shop through email, if RT or machining details required. These two
departments give their comments and estimation through return email to marketing department and this
information along with estimation sheet will be given to planning department for Enquiry response time
estimation. In case RT and machining is not required directly, inform to planning department for Enquiry
response time estimation. If RT is required, NDT department will estimate the RT square inch and
Enquiry response time and the required information will be communicated to marketing department. In
addition, if machining is required, machine shop department will estimate the machining cost and Enquiry

33
response time and the required information will be communicated to marketing department. Marketing
personnel will provide the estimation sheet, after Enquiry response time estimation from planning, to
DGM for final review and approval. Then marketing personnel will communicate with JMD for pricing
approval after collecting cost data from costing department. After getting the approval from JMD,
marketing department prepares quotation and will sent to customer.
5.3 New System
Fig. 5.2 New System
In the existing process all categories will be following same process. Instead of that, the process is
restructured in new process.

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5.3.1 Category 1
Fig.5.3 Flow Diagram of Enquiry review system for Category 1

35
In Category 1 (Existing Item with existing specification), Estimation Sheet (ES) will be sent parallel to
RT, Machining and Pattern Shop on basis of its requirement.
System will check the pattern condition from the pattern location & status master and if the pattern
condition is not good, only then the estimation sheet will be routed to pattern shop review. Here, pattern
shop will review the possibility of using the same pattern for executing this enquiry. If not possible, then
they will check the possibility for correcting the pattern and they will provide the correction cost and
Enquiry response time in the system (Enquiry Review (Pattern shop)). Even if the pattern correction is not
possible, then they will provide the cost and Enquiry response time estimation for new pattern
development in Enquiry Review (Pattern shop).
After checking the requirement of RT, the enquiry will be routed parallel to NDT Department for
estimating the RT square inch. System will automatically obtain the data from the RT square inch master
for RT square inches if already updated by NDT personnel and will be automatically updated to
marketing. If the item is not there in the RT square inch master, then only enquiry will be routed to RT
department for estimating the RT square inches and this will be entered in the system through Enquiry
review (NDT).
Similarly, if machining requirement is there, the enquiry will be routed parallel to machine shop for
estimating the machining cost and Enquiry response time. System will automatically fetch the data from
the machining item wise master for the machining Enquiry response time and cost if already updated by
machine shop personnel and will be automatically updated to marketing. If the item is not there in the
machining item wise master, then the enquiry will be routed to machine shop for estimating the
machining cost and Enquiry response time and this will be entered in the system through Enquiry Review
(machine shop).
After review feedback from NDT, Machine Shop and Pattern Shop the estimation sheet will be routed to
Planning department to estimate the Enquiry response time requirement on basis of all data collected.
Cost department quote the cost for product, by considering the Grade wise costing, Cost of last few
quotations and Actual item wise cost. Then it will be directed to marketing department for pricing
declaration. Then, all enquiry review from different department will send to DGM for getting approval for
further progress. After getting approval from DGM, marketing department will prepare quotation and
send to customer.

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5.3.2 Category 2
Fig.5.4 Flow Diagram of Enquiry review system for Category 2

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In Category 2 (Existing Item with new specification), there is only some additional difference because it
is an existing item with new specification. Because of that, they also want QA checkup. As like previous
process, QA will also get estimation sheet parallel once the estimation sheet is registered for review. After
getting ES, QA will check whether specification is already reviewed or not. Reviewed specification can
be recalled from system for review points. If specification has not been reviewed earlier, QA personnel
directly estimate item review for NDT, heat treatment, etc. If feasible, ES send to costing department. If it
is not feasible to execute the requirement, then inform marketing to send rejection letter to customer and
delete internal review after review by DGM.
All other processes are similar to category 1.
5.3.3 Category 3, 4 & 5
In Category 3 (new item development), 4 (intricate grade) and 5 (complicated new item development),
new items want to be develop. The enquiry will be routed parallel to Method department to check the
production feasibility of item. Method personnel conduct technical study on customer enquiries and
suggest of design modification if required. They comment their suggestion in Enquiry Review (Method
development).
System will send the estimation sheet to pattern master; it will be routed to pattern shop review. Pattern
shop will review the possibility of new pattern for executing this enquiry. They will provide the cost and
Enquiry response time estimation for new pattern development in Enquiry Review (Pattern shop). Pattern
cost and Enquiry response time can calculate by pattern cost calculator.
After checking the requirement of RT, the enquiry will be routed parallel to NDT Department for
estimating the RT square inches. NDT personnel directly or manually estimate the RT square inches.
Moreover, this will be entered in the system through Enquiry review (NDT). NDT personnel will also
upload new item RT square inches in system.
Likewise, if machining requirement is there, the enquiry will be routed parallel to machine shop
personnel. Just because of new items in these categories, the enquiry will be routed to machine shop for
estimating the machining cost and Enquiry response time. Machine shop personnel estimate manually and
this will be entered in the system through Enquiry Review (machine shop).

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Fig. 5.5 Flow Diagram of Enquiry review system for Category 3,4 and 5

39
Instead of getting actual item cost from system, the cost department will update new costs of
each item to system and send their review to marketing department.
5.4 Efficiency Utilization
It is found that every Equipment installed in the Machine shop was assigned with a Supervisor and a
Helper in all the 3 Shift works. And 4 General Helpers and 2 Crane Operators were also present in each
shift.
With the data of observing Vertical Turning Center – 1 and Vertical Turning Lathe -5 Machines installed
at Nallalam Production Facility of PeeKay Steels, Machine Efficiency is better than the average values of
55%. Machine utilization is the extent to which an enterprise uses its installed productive capacity. In
order to achieve effective utilization, effective use of resources with minimal wastage. The organization
has to organize its monthly pouring plan which divides each cast in to specific machine and with the
supervisor. And the within the time allocated the supervisor have to complete the Machining.
But the Worker efficiency is tending to lie below the average value. This indicates that the judgmental
utilization of workforce is not taking place. Without the correct utilization of the human work force, the
organization is wasting one of its best assets and it is loss to the organization. On taking the Helper
Utilization, it is found that with 0 Helper, Utilization is higher, which means the productivity of the
supervisor is higher. And the utilization of Helpers is much lower than the individual or supervisor. This
shows that there is no need of assigning each Machine with each Helper. Instead have 5 General Helpers,
whenever there is a need of helper supervisor can call the helper. Hence the Productivity can be enhanced.

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6. CONCLUSION
Problems facing in the existing Enquiry system are studied as part of the project. Worker utilization and
Machine utilization have been calculated and done analysis on the issues found. Suggestions are also
provided.
When an enquiry has been received from a customer, the usual lead response time taken will be six to
seven days and the whole processes were done manually. The papers were circulated from a department
(Marketing, Pattern, Machine shop, etc.) to another, which is highly time consuming, and customer
demanded to reduce the actual Enquiry response time taken. A preliminary study about the company was
undergone. The related topics, which contribute to the project, were also studied in detail. After a detail
study, a solution was found to the problem of delay in customer’s enquiry response system. By proper
examination of existing system, a flow chart was prepared and it helped to create a new flow chart of new
system
In Utilization Scenario, it has been found that most of the work can be done by Supervisor itself, and the
helper utilization is very low. Hence recommendation has given to remove helpers associated with each
machines and comprise a group of 5 General helpers. Hence the utilization can be enhanced and company
can attain effective utilization in terms of Machine, Worker, and Helper. And also the excess helpers can
be allotted for other departmental purposes.

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REFERENCES
 Nakajima S., (1988): Introduction to TPM, Productivity Press, Cambridge, MA

 Raisinghani, M. S., H. Ette, R. Pierce, G. Cannon, & P. Daripaly. (2005). Six Sigma:
Concepts, tools, and applications. Industrial Management & Data Systems

 Besterfield, D. H. (2004): Quality control. 7th ed. New York: Prentice-Hall.

 Konopka J. & Trybula W., (1996)Overall equipment effectiveness (OEE) and cost
measurement manufacturing
 Shirose & Nakajima (2008): “Term Development Programed.; Chapter title Equipment
Effectiveness, Chronics lossess, and other TPM Improvement concepts.
 http://www.foundryinfo-india.org

 www.peekaysteel.com

 www.wikipedia.org

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