CONTENTS

CHAPTER NO CHAPTER NAME

1 INTRODUCTION
2 COMPANY PROFILE
3 AN OVER VIEW OF COMPANY
DEPARTMENT
4 PRODUCTION PROCESS

5 CONCLUSIONS
BIBLIOGRAPHY
ANNEXURE

ACKNOWLEDGEMENT
We are elated to present our project on “A study on PRODUCTION
PROCESS IN CANARA WORKSHOPS LTD”. We deem it a privilege to
acknowledge to all those who have directly and indirectly helped me in the
preparation of this project report.

We would like to thank our Chairperson Dr.Mustiary Begum for giving me

an opportunity to carry out this study.

My sincere thanks to Mr. J.A.Saleem H.R Manager of CANARA SPRINGS

LTD who has given permission to carry on this project. And also I thank to
Mr.Suvarna and Vishwanath and all the staff members who have assisted me,
provided information and supported throughout my project.

We would like to thank our parents who encouraged us throughout the

making of this project report and also our, classmates, friends and well wishers for
their moral support, appreciation and sincere wishes.

1.NITHINRAJ

2.SUMITH PAWAR

3.ROSHAN.

4.SHIVARAJ.

Introduction To
Production And Operations Management

Definition
Production and Operations Management ("POM") is about the
transformation of production and operational inputs into "outputs" that, when
distributed, meet the needs of customers.The process in the above diagram
are often referred to as the "Conversion Process". There are several different
methods of handling the conversion or production process - Job, Batch, Flow
and Group
POM incorporates many tasks that are interdependent, but which can
be grouped under five main headings:
1. PRODUCT:
Marketers in a business must ensure that a business sells products that
meet customer needs and wants. The role of Production and Operations is to
ensure that the business actually makes the required products in accordance
with the plan. The role of PRODUCT in POM therefore concerns areas such as:

-Performance
-Aesthetics
-Quality
-Reliability
-Quantity
-Production cost
-Delivery dates

2. PLANT:
To make PRODUCT, PLANT of some kind is needed. This will
comprise the bulk of the fixed assets of the business. In determining which
PLANT to use, management must consider areas such as:
- Future demand (volume, timing)
- Design and layout of factory, equipment, offices
- Productivity and reliability of equipment
- Need for (and costs of) maintenance
- Heath and safety (particularly the operation of equipment)
- Environmental issues (e.g. creation of waste products)

3. PROCESSES:
 There are many different ways of producing a product.
Management must choose the best process, or series of processes. They will
consider:
- Available capacity
- Available skills
- Type of production
- Layout of plant and equipment
- Safety
- Production costs
- Maintenance requirements

4. PROGRAMMES:
The production PROGRAMME concerns the dates and times of the
products that are to be produced and supplied to customers. The decisions
made about programme will be influenced by factors such as:
- Purchasing patterns (e.g. lead time)
- Cash flow
- Need for / availability of storage
- Transportation

5. PEOPLE:
Production depends on PEOPLE, whose skills, experience and
motivation vary. Key people-related decisions will consider the following
areas:
- Wages and salaries
- Safety and training
- Work conditions
- Leadership and motivation
- Unionisation
- Communication.

Types of Production Method

Definition:
 In our introduction to production and operations management
("POM") we suggested that there are several different methods of handling the
conversion or production process - Job, Batch, Flow and Group. This revision
note explains these methods in more detail.
Introduction
The various methods of production are not associated with a particular
volume of production. Similarly, several methods may be used at different
stages of the overall production process.

1. Job Method:
With Job production, the complete task is handled by a single worker
or group of workers. Jobs can be small-scale/low technology as well as
complex/high technology.

 Low technology jobs: here the organisation of production is extremely

simply, with the required skills and equipment easily obtainable. This
method enables customer's specific requirements to be included, often
as the job progresses. Examples include: hairdressers; tailoring
 High technology jobs: high technology jobs involve much greater
complexity - and therefore present greater management challenge. The
important ingredient in high-technology job production is project
management, or project control. The essential features of good project
control for a job are:

- Clear definitions of objectives - how should the job progress

(milestones, dates, stages)
- Decision-making process - how are decisions taking about the needs
of each process in the job, labour and other resources

Examples of high technology / complex jobs: film production; large

construction projects (e.g. the Millennium Dome)

2. Batch Method:
 As businesses grow and production volumes increase, it is not
unusual to see the production process organised so that "Batch methods" can
be used.
Batch methods require that the work for any task is divided into
parts or operations. Each operation is completed through the whole batch
before the next operation is performed. By using the batch method, it is
possible to achieve specialisation of labour. Capital expenditure can also be
kept lower although careful planning is required to ensure that production
equipment is not idle. The main aims of the batch method are, therefore, to:
- Concentrate skills (specialisation)
- Achieve high equipment utilisation
This technique is probably the most commonly used method for
organising manufacture. A good example is the production of electronic
instruments.
Batch methods are not without their problems. There is a high
probability of poor work flow, particularly if the batches are not of the optimal
size or if there is a significant difference in productivity by each operation in
the process. Batch methods often result in the build up of significant "work in
progress" or stocks (i.e. completed batches waiting for their turn to be worked
on in the next operation).

3. Flow Methods:
Flow methods are similar to batch methods - except that the
problem of rest/idle production/batch queuing is eliminated.
Flow has been defined as a "method of production organisation where the
task is worked on continuously or where the processing of material is
continuous and progressive,"
The aims of flow methods are:
 Improved work & material flow
 Reduced need for labour skills
 Added value / completed work faster

Flow methods mean that as work on a task at a particular stage is

complete, it must be passed directly to the next stage for processing without
waiting for the remaining tasks in the "batch". When it arrives at the next
stage, work must start immediately on the next process. In order for the flow
to be smooth, the times that each task requires on each stage must be of equal
length and there should be no movement off the flow production line. In
theory, therefore, any fault or error at a particular stage
In order that flow methods can work well, several requirements must be met:
(1) There must be substantially constant demand:
If demand is unpredictable or irregular, then the flow production
line can lead to a substantial build up of stocks and possibility storage
difficulties. Many businesses using flow methods get round this problem by
"building for stock" - i.e. keeping the flow line working during quiet periods of
demand so that output can be produced efficiently.
(2) The product and/or production tasks must be standardized:
Flow methods are inflexible - they cannot deal effectively with
variations in the product (although some "variety" can be accomplished
through applying different finishes, decorations etc at the end of the
production line).
(3) Materials used in production must be to specification and delivered on time:
Since the flow production line is working continuously, it is not a
good idea to use materials that vary in style, form or quality. Similarly, if the
required materials are not available, then the whole production line will come
to a close - with potentially serious cost consequences.
(4) Each operation in the production flow must be carefully defined - and
recorded in detail:
(5) The output from each stage of the flow must conform to quality standards:
Since the output from each stage moves forward continuously, there
is no room for sub-standard output to be "re-worked" (compare this with job
or batch production where it is possible to compensate for a lack of quality by
doing some extra work on the job or the batch before it is completed).
The achievement of a successful production flow line requires considerable
planning, particularly in ensuring that the correct production materials are
delivered on time and that operations in the flow are of equal duration.
Common examples where flow methods are used are the manufacture of
motor cars, chocolates and television

BRIEF PROFILE OF THE COMPANY

HISTORY OF THE COMPANY

 To trace the history of the Canara Workshops Ltd, we have to go back
to the year 1914, when a small transport company by name, The Canara Public
Conveyance Co was started in South canara with single bus operating between
Mangalore and Bantwal.

The Problem of keeping the vehicles in good condition, repairs

become an urgent one and this necessitated the establishment of a workshop to
service and maintain own vehicles. Experience taught the company that the part,
which frequently got broken owning to the bad conditions of the road, was the
spring. Though in the earlier stages the broken springs were replaced with the
new onces, experiments were conducted to repair the broken springs in the
workshops itself.

1926 was the eventful year in the history of the company. It was in that
year Mr.V.S.Kudva joined the company as engineer in-charge and took over the
management of the workshops. His brilliant engineering and technical knowledge
made the CPC workers one of the best in the south.

The outbreak of the second world war brought in its train a fall in the
imports of spare parts and other necessaries for the automobile industry and the
dream of Late Mr.V.S.Kudva an engineer, who profited in business and later
drifted into industry. The Canara Workshop Ltd was established in 1943 in
Maroli, a place about 6 kms east of Mangalore city. The company was set up with
the objective of manufacturing laminated leaf springs to meet the demands of the
domestic markets.

The necessary equipments was imported, specially trained personnel

was employed, and the manufacture of auto springs fait accompli. The springs
manufactured by the Canara Workshop were subjected to rigorous tests and
quality control. They were accepted at first under the trade name of “Superior”
auto springs. The springs become so popular that they were unable to meet the
demand for such quality springs. This resulted in an expansion of the factory and
doubling the output.

To meet the in house requirement of steel, Mr. Kudva established the

alloy steel division in 1963. The division, which comprises of an eluric are
furnace, a continuous casting plant (The first in India) and hot rolling mill,
manufactures high quality springs steel bars. As a part of mordernization
programme the company has built a new heat treatment section in 1994 to
exclusively process the spring leaf requirement of light commercial vehicles.

CURRENT WORK FORCE

The company now has its Managing Director Mr.S.V.Kudva, a
metallurgical engineer, and son of the founder. He joined the company in 1957,
and was instrumental in designing and installing a full-fledged metallurgical
laboratory. His son Mr.Premnath.S.Kudva, who is the executive director and
Mr.Vasanth.S.Kudva, the managing director of the parent company, ably assists
him. The management of the company works in close co-operation with its
employees.

The total manpower of the company is 404. In which 13 are under

contract, 9 managers, 55clerical and technical staff working in the company
premises and 45 are staff recruited at various branches in the country, 6 are
probationary workmen, while the rest i.e, 276 are permanent workmen.
 COMPANY PRODUCTION CAPACITY

Table showing the production capacity of the company

YEAR ITEM INSTALLED PROCDUCTION
CAPACITY (IN
METRIC
TONNES)
2006-07 Lamination Leaf 10,300 8,021
Springs
Spring Steel 12,300 7,200
2007-08 Lamination Leaf 9,200 8,200
Spring
Spring Steel 13,200 5,600
2008-09 Lamination Leaf 15,200 6,200
Spring
Spring Steel 17,200 8,300

The Canara Workshops Ltd, has been producing laminated springs,

assemblies and spare loose leaves for application ranging from small passenger
cars and recreation vehicles to buses and heavy transport vehicles. For the
industries the company has provided springs for crushers and power hammers.
The company has also designed and manufactured leaf springs for ordance
applications and certain aero applications where safety and long life are vital.

The annual capacity of the company production for the three previous
financial year are given below.

CAPITAL STRUCTURE
 The company is a public limited company. The authorized share capital
of the company is up to 60,000, 10% cumulative preference share of Rs. 10 each
and 49,40,000 equity shares of Rs.10 each.

The issue and paid up capital is 14,69,909 equity shares of Rs.10 each fully
paid up. Of the 14,69,909 equity shares, 11,89,909 shares were allotted as fully
paid up bonus shares by capitalization of reserves.

The reserves and surplus consists of Capital reserves, Capital redemption

reserves, General reserves and Investment Allowance (utilized) Reserve.

The company also requires the secured loans from banks in the form of
cash credit and term loans, which are secured by hypothecation of stocks, stores
and book debts. The term loans are secured by hypothecation of assets.

The unsecured loans acquired by the company are in Fixed Deposits.

AN OVERVIEW OF THE COMPANY’S

DEPARTMENTS
 The company has seven departments headed by managers at each of the
department.

Production Department:

ORGANIZATIONAL STRUCTURE OF PRODUCTION DEPARTMENT

WORK MANAGER

ALLOY STEEL DEPT SPRINGS MAINTENANCE

DEPUTY MANAGER
MECHANICAL ELECTRICAL
LEAF LEAF
PRODUCTION FINISHING

SINGLE ENGINEER ASST.ENGINEER

ROLLING
MACHINE
MILL
SCHEDULING

SHIFT SHIFT
ASST. ASST.
STEEL
REFACTORY ENGINEER ENGINEER SUPERVISOR SHIFT SUPERVISOR
MELTING

ASST.ENGINEER

The company has two plants i.e. the Alloy Steel Plant and the Springs &
General Engineering Plant. The Alloy Steel consists of 2 sections, i.e. Mini Steel
Plant and Rolling Mill. The Springs & the General Engineering division also
consists of 2 sections, the leaf processing and the leaf finishing section.

The production department functions are supported by the Planning

Department in its day-to-day activities.

Commercial Department:
 ORGANIZATIONAL STRUCTURE OF COMMERCIAL DEPARTMENT

COMMERCIAL
MANAGER

STORES PURCHASE

SENIOR
ASST.MANAGER
ASST.MANAGER

SENIOR STORES
OFFICER

SENIOR DRIVER CLEANER

ASSISTANT

OFFICE
ASSISTANT

ATTENDER

This department is in charge of all purchases connected to the company

right from stationery falls under general stores. The overall stores department is
under the management of the commercial department.

The department is responsible for the procurement of the required

materials as well as issuing the items to different departments accordingly
through its stores department.

Planning and Control Department:

 ORGANIZATIONAL STRUCTURE OF PLANNING & CONTROL DEPARTMENT

(QUALITY CONTROL DEPT)

ASST. MANAGER

SENIOR LAB QUALITY CONTROL QUALITY CONTROL

ASSISTANT INSPECTOR FOREMAN

LAB ATTENDER

Page1

This department is involved in drawing out schedules which production

depends on and liasoning with other departments in matters concerning quality,
manpower planning and production.

Quality Control Department:

This is headed by an assistant manager as an independent department
directly responsible to the Executive Director.

Finance and Accounts department:

This department looks into all receipts and payments of the company. It
keeps accounts of various branches as well as payments made to different
suppliers.

This department arranges finance from the banks and looks into company
affairs, like shareholders, dividend declaration and investment policies.
 ORGANIZATIONAL STRUCTURE OF FINANCE AND ACCOUNT
DEPARTMENT
FINANCE/ ACCOUNTS DEPARTMENT

FINANCIAL CONTROLLER COMPANY SECRETARY

ACCOUNTS MANAGER

OFFICER(CR) OFFICER(DR) OFFICER(EDP)

ACCOUNTS
CASHIER
ASSISTANT

ATTENDER

Marketing Department:
The marketing department has been considered the most important
department because of the external challenges it is facing. Canara Workshops Ltd
has given profit being the prime motive of any trading company’s objective, this
department.

There are 9 sales branches falling under company’s marketing

department. The branches are as follows-

1. In Karnataka three branches, Bangalore, Hubli and Mangalore (other than

head office).

2. In Kerala one branch at Calicut.

3. Coimbatore and Chennai are two branches in Tamilnadu.

4. In Andhra Pradesh there are two branches, Hyderabad and Vijayawad.

5. Maharastra has only one branch at Solapur.

 Personnel Department:

ORGANIZATIONAL STRUCTURE OF PERSONNEL DEPARTMENT

GENERAL MANAGER

DEPUTY MANAGER PERSONNEL &

ADMINISTRATION

SECURITY OFFICER PERSONNEL OFFICER

SENIOR ASST.
SHIFT SUPERVISOR
(TRAINING OFFICER)

SENIOR ASST.(PAY-
GUARDS
ROLL)

DRIVERS

ATTENDER

SWEEPERS

The department is headed by General Manager, which is at present vacant

and assisted by Deputy Manager. The company’s personnel policy mainly covers
the following subjects, which guide its activities:

1. Recruitment and Selection

2. Training

3. Promotion, demotion and transfers

4. Employee services

5. Rules and regulations

6. Wages and salaries

7. Welfare, etc.
 PRODUCTION PROCESS

The production process begins at the roughing mill. The raw material
required for the company are bought from Vishakapatanam. Aroud 250
tonnes of ballets and 75 to 100 tonnes plates are purchased from the supplier.
Before raw materials were manufactured in the company itself by using
casting machine, because of high production cost and low ton capacity of the
machine the working have been stopped.

Now the materials purchased are first sent to the lab for testing.
They undertake the following process
 TEST REPORT

Chemical composition

Grad Carbon Mangane Silicon Sulph Promiu Chromiu Benzeu

es se ur m m m
EN45 0.50/0. 0.70/1.00 1.50/2. 0.045 0.045
60 00
EN45 O.55/0. 0.70/1.00 1.70/2. 0.045 0.045
-A 65 00
60Si 0.58/0. 0.80/1.00 1.50/2. 0.045 0.045
7 65 00
65Si 0.60/0. 0.80/1.00 1.50/2. 0.045 0.045
7 70 00
SUP 0.50/0. 0.65/0.95 0.15/0. 0.035 0.035 0.65/0.9
G 60 35 5
SUP O.55/0. 0.70/1.00 0.15/0. 0.035 0.035 0.70/1.0 0.0005
IIA 65 35 0
SUP 0.55/0. 0.70/1.00 0.15/0. 0.035 0.035 0.70/1.0
9A 65 35 0

EN45 and EN45-A are European standards.

Remaining 60Si 7, 65Si 7, SUP G, SUP IIA and SUP 9A these are of Japan
standards.

2) Inclusion Rating (IS 4163-1982)

Sulphide Alumina Silicate Globular

Oxide
Maximum 2.5H/T 2.5H/T 2.5H/T 2.5H/T

3) Grain size

(ASIM) 6 to 8.

4) Decarbonisation limits (IS 6396-1983)

(i) 0.5mm max- Full Decarbonisation

(ii) 0.25mm max- Partial Decarbonisation

5) Hardness Range B.H.N

388 to 444

6) Shot Peening Intensity

Alumin Arc Height ‘A’ min 0.60 (is 7001-1989)

7) Micro Structure.

Tempered Martensite

These are the minimum requirement that the raw material should
contain for the best quality. If these standards are not met they are sent back
to the suppliers. This is to avoid cracks in the ballet during the process.

The ballets which are approved after lab testing goes for the production
process. At first, these ballets cut into various size such as 75mmsq,
100mmsq, 60mmsq and 90mmsq. Then these ballets are pushed into furnace
for heating at a temperature of 1150°c. Around 140 ballets are pushed into
furnace for soaking which requires one and half hour then it is ejected from
the furnace and then it is passed though roughing mill in order to get the
ballets in the required size. Here the extra size of the ballets are also reduced
to the size required. After the ballets are pulled these are transferred to next
mill known as Leaf processing.

Leaf processing mill;

The following chart explains the process taking place in this mill.
 LEAF PROCESSING MILL(PROCESS II)

BALLET

MAIN PLATE MAIN PLATE GAURD

SHARING CLAMP SHARING

FURNISHING SHARING FURNISHING

160TON
EYE ROLLING
POWER PRESS

DRILLING WRAPER

The ballets brought from roughing mill are then cut according to the required
size and this process is done through shearing machine. After shearing the
process are divided into three parts;

1) Main plate
2) Main plate guard
3) Clamp

Main plate:
 After the required size is cut for main plate for sharing machine the
ballets are passed to furnace machine for heating. After heating, both the
edges of the ballets are bended using Eye-rolling machine. If there is any
emergency manual Eye rolling machine is also used.

Main plate guard:

 Ballets passes through furnace after sharing and it passes through
160 ton power press machine where both the edges of the ballets are half
bended. This plate act as a guard for the main plate in order to avoid ware out
of the main plate at the time of heavy weight carriage.

Clamp:
 Here after shearing the ballets are bend ‘U’-shape using 50 ton
power press machine, in order to get clamp. The clamp is used as covers for
the plates.

Finally main plate guard, main plate and clamps are made holes of different
size using drilling machine. This has been done in order to set all the plates to
form a spring.

Other than drilling machine there is another machine called buttoning

machine, where instead of drilling the hole buttoning is done in the plates. But
this machine is rarely used now a days.

Oil pumping machine: this machine helps to pump the oil for the furnace.

Leaf finishing Mill

This mill consist of 2 machines such as walking beam and conveyance
machine, out of which walking beam is not in process. After drilling, the plates
are then passed through conveyance furnace for heat treatment. After heat
treatment the plates are passed through cambering machine to bend the
plates into boat shaped curve. After that plates which have been bended are
hardened, which takes 45 minutes. Then it is passed through tempering to
cool the plates which takes one and half hour.

After the plates have been tempered it is sent through shot peen machine for
surface cleaning and educe pension. After this the plates are painted, the name
of the company, serial number etc are punched on it using steansealing
machine.

Finally finished plates goes to dispatch section.

Here the production process ends.
Conclusion
The study reveals that the workers are aware of the company’s limitation.
Moreover they are satisfied with the personal management and practice of the
company. However there are certain areas where the management have to
make improvement viz., induction and training, welfare, disciplinary action,
industrial relation aspects and production machinery etc.

BIBLIOGRAPHY
1.Production and Operations Adam and Erbert
Management

2.Material Management. Gopalakrishanan and Sundareshan

3. Modern Production Management. John Wiley

4.INTERNET WWW.GOOGLE.COM

Journals
Personnel Today : Volume X. No.3.

1989 (OCT- DEC)

: Volume XVI NO.3

1995