Tyre Manufacturing
Short Description
Tire Manufacturing...
Description
Tyre Manufacturing
Project Report 2011-2012
INTRODUCTION The world market right now is going down everyday. Lots of young professionals are losing their job. The financial crunch is making lots of companies to shut down as they are running in lose. Companies are not recruiting anyone now. This is a serious situation and if not handled wisely it will lead to lots of problem. Unemployment is a major problem faced by India even before the financial crunch.
Our government is trying hard to do something about it but no immediate result has come up. Lots of young professionals who have the talent and capabilities are left unemployed. Indians are well known for their skills and hard work but many are left with no platform to prove it.
We a group of 8 entrepreneurs decided to start something of our own. From lots of choices we selected TYRE MANUFACTURING. It is a partnership concern and the proposed site is at “Valluyambram” on a piece of land of 2 acres. It is about 12 km away from Malappuram.
Dept. of Automobile Engg.
1
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
SCOPE OF THE PROJECT
In India the scope of automobile industry is increasing. Automobile components and parts always have a good market. The no of vehicles on the road is increasing day by day. da y.
We a group of young entrepreneurs decided to build a tyre manufacturing unit at “Valluyambram” which is about 12 km away from Malappuram. We got 2 acres of land there and decided to make it there thinking about the following factors. Availability of power, water and raw material. It is away from the city so pollution problems are limited. There is a river near by and this place is accessible from 2 major highways. And there are no tyre manufacturing units in this region. Hence with a good distribution chain we can capture the market very easily.
Our plan is to setup a small but hi-tech tyre manufacturing unit. The tyre will meet with all the international standards. We expect to produce 4500 tyres in one month. An average of 180 tyres in a day. And with this project we will be able to give employment to about 75 people. And this industry will bring development to that area.
Dept. of Automobile Engg.
2
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
SCOPE OF THE PROJECT
In India the scope of automobile industry is increasing. Automobile components and parts always have a good market. The no of vehicles on the road is increasing day by day. da y.
We a group of young entrepreneurs decided to build a tyre manufacturing unit at “Valluyambram” which is about 12 km away from Malappuram. We got 2 acres of land there and decided to make it there thinking about the following factors. Availability of power, water and raw material. It is away from the city so pollution problems are limited. There is a river near by and this place is accessible from 2 major highways. And there are no tyre manufacturing units in this region. Hence with a good distribution chain we can capture the market very easily.
Our plan is to setup a small but hi-tech tyre manufacturing unit. The tyre will meet with all the international standards. We expect to produce 4500 tyres in one month. An average of 180 tyres in a day. And with this project we will be able to give employment to about 75 people. And this industry will bring development to that area.
Dept. of Automobile Engg.
2
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
■•
SMALL SCALE INDUSTRIES
"Small scale industry'' is those in which the investment doesn't exceed one core in plants and machineries irrespective irrespectiv e of no" of people employed. emplo yed.
Generally 10-15 people are employed. The technicians and engineers can start a small scale industry very easily now a days as there are lots of subsidies and special privileges given by the state and central government. Thus small scale industries provide a lot of job opportunities to unemployed and skilled laborers. The small scale sector is growing impressively these days in India. The investment limits:
The definition of small scale industries has undergone changes over the years in terms of investment limits in the following manner:-
YEAR
INVESTMENT LIMITS
ADDITIONAL CONDITIONS
1950
Upto Rs 5 lacs in fixed
Less than 50/100
assets
persons with or without power
1960
Upto Rs 5 lacs in Plant &
No condition
Machinery 1966
Upto Rs 7.5 lacs in Plant &
No condition
Machinery 1975
Upto Rs 10 lacs in Plant &
No condition
Machinery 1980
Upto Rs 20 lacs in Plant &
No condition
Machinery
Dept. of Automobile Engg.
3
SSM Polytechnic College, Tirur
Tyre Manufacturing
1985
1991
Project Report 2011-2012
Upto Rs 35 lacs in Plant &
No condition
Machinery
,
Upto Rs 60 lacs in Plant &
No condition
Machinery 1997
Upto Rs 100 lacs in Plant &
(Dec)
Machinery
2006
Upto Rs 180 lacs in Plant &
No condition (Dec)
No condition
Machinery
Dept. of Automobile Engg.
4
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
Small Scale Industrial Undertakings Undertakings
The following requirements are to be complied with by an industrial undertaking to be graded as Small Scale Industrial undertaking w.e.f. 21.12.1999
An industrial undertaking in which the investment in fixed assets in plant and machinery whether held on ownership terms on lease or on hire purchase does not exceed Rs 10 million. (Subject to the condition that the unit is not owned, controlled or subsidiary of any other industrial undertaking)
(Subject to the condition that the unit is not owned, controlled or subsidiary of any other industrial undertaking)
Explanation: For the purpose of this note:a. "owned”' shall have the meaning as derived from the definition of the expression "owner" specified in clause (1) of section 3 of the said Act; b. “subsidiary" shall have the same meaning as in clause (47) of section 2, read with section 4, of the Companies Act, 1956 (1 of 1956); c. the expression "controlled by any other industrial undertaking" means as under:i.
where two or more industrial undertakings are set up by the same person as a proprietor, each of such industrial undertakings shallbe considered to be controlled by the other industrial undertaking or undertakings,
ii.
where two or more industrial undertakings are set tip as partnership firms under the Indian Partnership Partnership Act, 1932 (1 of 1932) and one or more partners are common partner or partners
Dept. of Automobile Engg.
5
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
in such firms, each such undertaking shall be considered to be controlled by other undertaking or undertakings, iii.
where industrial undertakings are set up by companies under the Companies Act, 1956 (1 of 1956), an industrial undertaking shall be considered to be controlled by other industrial undertaking if:a. the equity holding by other industrial undertaking in it exceeds twenty four percent of its total equity; or b. the management control of an undertaking is passed on to the other industrial undertaking by way of the Managing Director of the first mentioned undertaking being also the Managing Director or Director in the other industrial undertaking or the majority of Directors on the Board of the first mentioned undertaking being the equity holders in the other industrial undertaking in terms of the provisions of the following items (a) and (b) of sub-clause(iv);
iv.
the extent of equity participation by other industrial undertaking or undertakings in the undertaking as per sub-clause (iii) above shall be worked out as follows:a. the equity participation by other industrial undertaking shall include both foreign and domestic equity; b. equity participation by other industrial undertaking shall mean total equity held in an industrial undertaking by other industrial undertaking or undertakings, whether small scale or otherwise, put together as well as the equity held by persons who are Directors in any other industrial undertaking or undertakings even if the person concerned is a Director in other Industrial Undertaking or Undertakings; c. equity held by a person, having special technical qualification and experience, appointed as a Director in a small scale industrial undertaking, to the extent of qualification shares, if so provided in the Articles of Association, shall not be counted in
Dept. of Automobile Engg.
6
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
computing the equity held by other industrial undertaking or undertakings even if the person concerned is a Director in other industrial undertakings; (V) where an industrial undertaking is a subsidiary of, or is owned or controlled by, any other industrial undertaking or undertakings in terms of sub-clauses (i); (ii); or (iii) and if the total investment in fixed assets in plant and machinery of the first mentioned industrial undertaking and the other industrial undertaking or undertakings clubbed together exceeds the limit of investment specified in paragraphs (1) or (2) of this notification as the case may be, none of these industrial undertakings shall be considered to be a small scale or ancillary industrial undertaking.
Note 2(a) In calculating the value of plant and machinery for the purposes of paragraphs (1) and (2) of this notification, the original price thereof, irrespective of whether the plant and machinery are new or second hand, shall be taken into account.
i.
the cost of equipments such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores;
ii.
The cost of installation of plant and machinery;
iii.
the cost of research and development equipment and pollution control equipment;
iv.
the cost of generation sets and extra transformer installed by the undertaking as per the regulations of the State Electricity Board;
v.
the bank charges and service charges paid to the National Small Industries Corporation or the State Small Industries Corporation;
vi.
the cost involved in procurement or installation of cables, wiring, bus bars, electrical control panels (not those mounted on individual machines), oil circuit breakers or miniature circuit
Dept. of Automobile Engg.
7
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
breakers which are necessarily to be used for providing electrical power to the plant and machinery or for safety measures; vii.
the cost of gas producer plants;
viii.
transportation charges (excluding of sales tax and excise) for indigenous machinery from the place of manufacturing to the site of the factory;
ix.
charges paid for technical know how for erection of plant and machinery;
x.
cost of such storage tanks which store raw materials, finished products only and are not linked with the manufacturing process; and
xi.
cost of fire fighting equipments.
(c) In the case of imported machinery, the following shall be included in calculating the value, namely:i.
import
duty
(excluding
miscellaneous
expenses
as
transportation from the port to the site of the factory, demurrage paid al the port); ii.
the shipping charges;
iii.
customs clearance charges; and
iv.
sales tax.
Every industrial undertaking which has been issued a certificate of registration under section 10 of the said Act or a license under sections 11, 11A and 13 of the said Act by the Central Government and are covered by the provisions of paragraphs (1) and (2) above relating to the ancillary or small scale industrial undertaking, may be registered, at the discretion of the owner, as such, within a period of one hundred and eighty days from the date of publication of this notification in the Official Gazette.
Dept. of Automobile Engg.
8
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
Performance of Small Scale Industries •
Employment
•
Production
•
Exports
•
Opportunities
•
Economic Indicators
Employment Generation SSI Sector in India creates largest employment opportunities for the Indian populace, next only to Agriculture. It has been estimated that a lakh rupees of investment in fixed assets in the small scale sector generates employment for four persons. Employment in small scale sector 250
200
) h k a l ( t n e m y o l p m E
150
139.38
146.56
152.61
160
167.2
171.58
179.5
188
195
100
50
0 1995-96 1996-97 1997-98 1998-99 1999-00 2001-02 2002-03 2003-04 2004-05
Year
According to the SSI Sector survey conducted by the Ministry and National Informatics Centre with the base year of 1987-88, the following interesting observations were made related to employment in the small scale sector.
Dept. of Automobile Engg.
9
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
Generation of Employment - Industry Group-wise Food products industry has ranked first in generating employment, providing employment to 4.82 lakh persons (13.1%).
The next two industry groups were Non-metallic mineral products with employment of 4.46 lakh persons (12.2%) and Metal products with 3.73 lakh persons (10.2%).
In Chemicals & chemical products, Machinery parts and except Electrical parts, Wood products, Basic Metal Industries, Paper products & printing, Hosiery & garments, Repair services and Rubber & plastic products, the contribution ranged from 9% to 5%, the total contribution by these eight industry groups being 49%.
In all other industries the contribution was less than 5%.
Per unit employment Per unit employment was the highest (20) in units engaged in Beverages, tobacco & tobacco products mainly due to the high employment potential of this industry particularly in Maharashtra, Andhra Pradesh, Rajasthan, Assam and Tamil Nadu.
Next came Cotton textile products (17), Non-metallic mineral products (14.1), Basic metal industries (13.6) and Electrical machinery and parts (11.2.) The lowest figure of 2.4 was in Repair services line.
Per unit employment was the highest (10) in metropolitan areas and lowest (5) in rural areas.
Dept. of Automobile Engg.
10
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
However, in Chemicals & chemical products, Non-metallic mineral products and Basic metal industries per unit employment was higher in rural areas as compared to metropolitan areas/urban areas. In urban areas highest employment per unit was in Beverages, tobacco products (31 persons) followed by Cotton textile products (18), Basic-metal industries (13) and Non-metallic mineral products (12).
Rural Non-metallic products contributed 22.7% to employment generated in rural areas. Food Products accounted for 21.1%, Wood Products and Chemicals and chemical products shared between them 17.5%.
Urban As for urban areas, Food Products and Metal Products almost equally shared 22.8% of employment. Machinery and parts except electrical, Nonmetallic mineral products, and Chemicals & chemical products between them accounted for 26.2% of employment.
In metropolitan areas the leading industries were Metal products, Machinery and parts except electrical and Paper products & printing (total share being 33.6%).
State-wise Employment Distribution Tamil Nadu (14.5%) made the maximum contribution to employment. This was followed by Maharashtra (9.7%), Uttar Pradesh (9.5%) and West Bengal (8.5%) the total share being 27.7%. Gujarat (7.6%), Andhra Pradesh (7.5%), Kamataka (6.7%), and Punjab (5.6%) together accounted for another 27.4%. Per unit employment was high - 17. 16 and 14 respectively - in Nagaland, Sikkim and Dadra & Nagar Haveli. It was 12 in Maharashtra, Tripura and Delhi. Dept. of Automobile Engg.
11
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
Madhya Pradesh had the figure of 2. In all other cases it was around the average of 6.
,
-
Production The small scale industries sector plays a vital role for the growth of the country. It contributes 40% of the gross manufacture to the Indian economy.
It has been estimated that a lakh rupees of investment in fixed assets in the small scale sector produces 4.62 lakhs worth of goods or services with an approximate value addition of ten percentage points.
The small scale sector has grown rapidly over the years. The growth rates during the various plan periods have been very impressive.
Production from small scale sector e c i r 800 t n 700 e r r 600 u c t a 500 e r 400 o C 0 300 0 0 . s R 200 n 100 o i t c u 0 d o r P
720 640 580 538 465 413 356 294 242
1995-96 1996-97 1997-98 1998-99 1999-00 2001-02 2002-03 2003-04 2004-05
Year
The number of small scale units has increased from an estimated 8.74 lakhs units in the year 1980-81 to an estimated 31.21 lakhs in the yea 1999.
Dept. of Automobile Engg.
12
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
From the year 1990-91 this sector has exhibited a comparatively lower growth trend (though positive) which continued during the next two years. However, this has to be viewed in the background of the general recession in the economy. The transition period of the process of economic reforms was also affected for some period by adverse factors such as foreign exchange constraints, credit squeeze, demand recession, high interest rates, shortage of raw material etc.
When the performance of this sector is viewed against the growth in the manufacturing and the industry sector as a whole, it instills confidence in the resilience of the small scale sector.
The estimates of growth for the year 1995-96 have shown an upswing. The growth of SSI sector has surpassed overall industrial growth from 1991 onwards. The positive trend is likely to strengthen in the coming years. This trend augurs a bright future for the small scale industry.
Export contribution SSI Sector plays a major role in India's present export performance. 45%-50% of the Indian Exports is being contributed by SSI Sector.
Direct exports from the SSI Sector account for nearly 35% of total exports. The number of small scale units that undertake direct exports would be more than 5000.
Besides direct exports, it is estimated that small scale industrial units contribute around 15% to exports indirectly. This takes place through merchant exporters, trading houses and export houses. They may also be in the form of export orders from large units or the production of parts and components for use for finished exportable goods.
Dept. of Automobile Engg.
13
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
It would surprise many to know that non traditional products account for more than 95% of the SSI exports. The exports from SSI sector have been clocking excellent growth rates in this decade. It has been mostly fuelled by the performance of garment, leather and gems and jewellery units from this sector.
Export from small sector
80 67
70 63 59 60
55 49
e r o C 0 0 0 . s R t r o x E
50
44 39 36
40 29 30
25
20
10
0
Year
The lucrative product groups where the SSI sector dominates in exports, are sports goods, readymade garments, woolen garments and knitwear, plastic products, processed food and leather products.
Dept. of Automobile Engg.
14
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
Opportunities
Small industry sector has performed exceedingly well and enabled our country to achieve a wide measure of industrial growth and diversification.
small scale sector
60
49 50
46 43
40
h k a l n 30 i s t i n u 20 f o . o N10
35
23.88
25.71
27.24
28.57
32
30.14
0
Year
By its less capital intensive and high labour absorption nature, SSI sector has made significant contributions to employment generation and also to rural industrialization. This sector is ideally suited to build on the strengths of our traditional skills and knowledge, by infusion of technologies, capital and innovative marketing practices.
Dept. of Automobile Engg.
15
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
The opportunities in the small scale sector are enormous due to the following factors : - Less Capital Intensive - Extensive Promotion & Support by the Government - Reservation for Exclusive Manufacture by small scale sector - Project Profiles - Funding - Finance & Subsidies - Machinery Procurement - Raw Material Procurement - Manpower Training - Technical & Managerial skills - Tools & Tools utilisation support - Reservation for Exclusive Purchase by Government - Export Promotion - Growth in demand in the domestic market size due to overall economic growth - Increasing Export Potential for Indian products - Growth in Requirements for ancillary units due to the increase in number of greenfield units coming up in the large scale sector.
So this is the opportune time to set up projects in the small scale sector. It may be said that the outlook is positive, indeed promising, given some safeguards This expectation is; based on an essential feature of the Indian industry and the demand structures. The diversity in production systems and demand structures will ensure long term co-existence of many layers of demand for consumer products / technologies / processes. There will be flourishing and well grounded markets for the same product/process, differentiated by quality, value added and sophistication. This characteristic of the Indian economy will allow complementary existence for various diverse types of units. Dept. of Automobile Engg.
16
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
The promotional and protective policies of the Govt, have ensured the presence of this sector in an astonishing range of products, particularly in consumer goods. However, the bug bear of the sector has been the inadequacies in capital, technology and marketing. The process of liberalization will therefore, attract the infusion of just these things in the
.
sector
Dept. of Automobile Engg.
17
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
Economic Indicators The Small Scale Industry today constitutes a very important segment of the Indian economy. The development of this sector came about primarily due to the vision of our late Prime Minister Jawaharlal Nehru who sought to develop core industry and have a supporting sector in the form of small scale enterprises.
Small Scale Sector has emerged as a dynamic and vibrant sector of the economy. o
Today, it accounts for nearly 35% of the gross value of output in the manufacturing sector and over 40% of the total exports from the country.
o
In terms of value added this sector accounts for about 40% of the value added in the manufacturing sector.
o
The sector's contribution to employment is next only to agriculture in India. It is therefore an excellent sector of economy for investment.
Dept. of Automobile Engg.
18
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
ENTREPRENEURSHIP
Entrepreneurs are the ones who organize, manage and assume the risk of enterprise. An entrepreneur visualizes a business taken hold steps to establish undertaking. Co-ordinates the various factor of production and give it start. An entrepreneur is associated with innovation. He is manual factor of production.
The different types of business organization are: a. Individual or sole proprietorship b. Partnership organization c. Joint stock Company d. Co-operative society. To avoid any complication at a later stage. The constitution of the company may be written in an agreement form. This arrangement is known as partnership deed.
The partnership deed contains the following: a. Name of firm. b. Nature of business. c. Date of starting business. d. Money of management functions among partners. e. Allotment of management functions among partners. f. Salary if any, allowed to managing partners. g. Fat of interest on capital invested if any. h. The basis for the introduction of any new partner.
Dept. of Automobile Engg.
19
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
MARKET RESEARCH It is a fact that India is one of the fastest developing countries in the world and it is also noted that small scale industries has a shaping part in the economy of any country. No one can neglect its presence due to which small scale industries are growing day by day.
We a group of 8 entrepreneurs decided to start a small but hi-tech tire manufacturing unit. We selected this place because there are no good tire manufacturers in our district. We all know that tire is a component which is very essential and have to be maintained in good condition. The no of 2 wheelers, 4 wheelers rolling out is increasing day by day. And they all will need a replacement after 20000 to 25000 km. hence the markets for tires are increasing. The area we selected is adjacent to rubber plantations and hence the transportation charges for raw materials are less.
Each 2 wheelers 4 wheeler the market have different size of tires. Hence the size of tires we manufactures vary according to the market requirements.
Dept. of Automobile Engg.
20
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
POLICY OF OUR COMPANY
Our idea is to set up a small but a high productive tire manufacturing unit which can make up for the market necessity. We plan to produce 100 to 180 tires in a day, that is, to produce 4000 to 4500 tires in a month. Though our company is been set up in a rural area we are planning for the national market. We are planning to build up links with 2 wheeler & 4 wheelers manufacturers who take tires from the industries directly. Our main policies are:
a. Customer satisfaction. b. Quality of product. c. Turnover. d. Durability. e. Ride control f. Puncture resistance.
after the market study we are sure to run this company very successfully and economically. We all are entering this field with lots of interest and with our management skills and team work we will be able to bring this company into new heights. And as young Indians we will be self employed and giving employment to others.
Dept. of Automobile Engg.
21
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
PLANT LAYOUT This is the arrangement of machines in such a way within the factory that a worker will be able to work with great convenience. It signifies arrangement of machines to work area, transport, storing of materials and processing. Proper plant arrangement will help us to decrease workers inconvenience and they will give maximum productivity. A good layout will bring out the best from every worker, will save time and reach dead lines on time. With a good layout the workers and materials have to minimum required distance between operations.
OBJECTIVES OF PLANT LAYOUT:
The main objectives of a good layout arc: 1) The materials have to move a minimum distance. 2) There is a smooth flow of the product in the plant. 3) Maximum utilisation of area. 4) Safety of workers and also machines. 5) Effective supervising. 6) Saving of cost. 7) Perfect lighting and ventilation. 8) Can leave space for future expansion.
Dept. of Automobile Engg.
22
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
ADVANTAGES OF GOOD LAYOUT
There are a lot of advantages offered by a good plant layout. Few are stated below:
1. The area gets the maximum utilisation. 2. The rate of production will increase. 3. The no of workers can be minimized. 4. The machine handling time can be minimized 5. The manual production delay can be avoided. 6. Overall production time is reduced. 7. Better utilisation of workers is achieved 8. Better maintenance of plant is achieved 9. Workers will be satisfied. 10. It will be easy to supervise.
Dept. of Automobile Engg.
23
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
LAYOUT
STORE ROOM FOR
WASHING SECTION
STORE ROOM FOR MATERIALS DAMAGED PARTS STORE
PAINTING BOOTH
ELECTRICAL SECTIONMANUFACTURING UNIT – 2ND ENGINE WORKING AREA ROOM (FLOOR) SERVICE MANAGER
STORE ROOM BODY WORK
WHEEL ALIGNMENT MANUFACTURING UNIT – 1ST SECTION
TOILET CUSTOMER WORKING ROOM PURCHASING PARKING SPACE
SERVICE SPARE ADVISERS OFFICE PARTS
AREA
GARDEN
GATE KEEPER
GATE
Dept. of Automobile Engg.
24
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
ROUTE MAP
2 KM
200 mtrs
Dept. of Automobile Engg.
25
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
SOURCE OF FINANCE Most of the small scale industries face financial crises throughout until they start making profit. In the beginning we have to go through lots of financial strains. But state and central government provide us with lots of subsidies and financial help so as to start our project. Once our project is approved by the authorities we can apply for loan from banks and other government agencies. A special department called district industry center is provided in every district so as to help us in every part of our project. They give us guidance to seek out the loan we require.
State government allows loans which are to be repaid in annual installments. First falling due after 2 years from the date of receipt of last installment of the loan. The interest is 10% per annum with a rebate of 2% for timely payments.
State financial corporation (S.F.C) grant loan for the acquisition of fixed assets up to 75% of total investment. The rate of interest is from 12 to 16% for various loans and duration of repayment if 10-12 years.
Nowadays banks finance the entire business cycle from the purchase of raw materials to realisation of scale proceed. Al nationalized and commercial banks have installed or started to grant loans to SSI's for formed as well as working capital and provide relaxation up to 60 month. The duration of payment is 5 to 8 years.
Dept. of Automobile Engg.
26
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
DETAILS OF LOCATION AND UTILITY
1. LOCATION a. Corporation/ Panchayath
:
Pookkottur
b. District
:
Malappuram
2. Status of land
:
Ancestral property
3. Area of land
:
200 cents
4. Source of water
:
River
5. Distance of 3 phase LT line
:
Nearby
6. Distance of 1.1 kV HT line
:
Nearby
7. Nearest police station and distance :
Near Valluvambram School
8. Nearest fire station
:
Malappuram
9. Distance from main road
:
2Km
10. Distance from nearest hospital
:
10Km
11. Nearest post office
:
Valluvambram
12. Fuel filling station
:
3Km
Dept. of Automobile Engg.
27
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
EQUIPMENT BRIEF In our factory following machines are used to do the work smoothly, methodically and accurately.
1. INTERNAL MIXER: They are often equipped with two counter-rotating rotors in a large housing that shear the rubber charge along with the additives.
2. ROLLER DIE: After mixing the rubber charge is dropped into a chute and fed by an extruding screw into a roller die.
3. COUNTER ROTATING ROLLS : Twin counter-rotating rolls, one serrated, that provide additional mechanical working to the rubber, and produce a thick rubber sheet
4. PALLET PIN: It is used to cool down the sheet and get maximum dispersion.
5. EXTRUDER MACHINE: The extruder machine consists of a screw and barrel, screw drive, heaters, and a die. The extruder applies two conditions to the compound, heat and pressure.
6. CALENDER:
'
The calendar is a set of multiple
large-diameter rolls that squeeze
rubber compound into a thin sheet, usually on the order of 2 meters wide.
Dept. of Automobile Engg.
28
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
7. TIRE BUILDING MACHINE: Tire building is the process of assembling all the components onto a tire building drum. Tire Building Machines (TBM) can be manually operated or fully automatic.
8. BUILDING DRUM: It is a drum shaped equipment to provide pressure.
9. MOLD: Gives final shape, and used for applying heat energy to stimulate the chemical reaction between the rubber and other materials.
10. PCI: Post-cure inflator, that will hold the tire fully inflated while it cools.
11.HYDRAULIC PRESS: It uses hydraulic oil as the prime mover for machine motion, and locks the mold with a breech-lock mechanism.
12. TIRE UNIFORMITY DEVICE: It is used to check tires uniformity
Dept. of Automobile Engg.
29
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
RAW MATERIALS
-
• Natural rubber, or Polyisoprene is the basic elastomer used in tire making •
Styrene-butadiene co-polymer (SBR) is a synthetic rubber which is often substituted in part for natural rubber based on the comparative raw materials cost
•
Polybutadiene is used in combination with other rubbers because of its low heat build up properties
•
Halobutyl rubber is used for the tubeless inner liner compounds, because of its low air permeability. The halogen atoms provide a bond with the carcass compounds which are mainly natural rubber. Bromobutyl is superior to Chlorobutyl, but is more expensive
•
Carbon Black, forms a high percentage of the rubber compound. This gives reinforcement and abrasion resistance
•
Silica, used together with carbon black in high performance tires, as a low heat build up reinforcement
•
Sulphur cross-links the rubber molecules in the vulcanization process
•
Accelerators are complex organic compounds which speed up the vulcanization
•
Activators assist the vulcanisation. The main one is zinc oxide
•
Antioxidants and antiozonants prevent sidewall cracking, due to the action of sunlight and ozone
•
Textile fabric reinforces the carcass of the tire
Dept. of Automobile Engg.
30
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
TIRE CONSTRUCTION
The tire is an assembly of numerous components that are built up on a drum then cured in a press under heat and pressure. Heat facilitates a j polymerization reaction that cross-links rubber monomers to create long elastic molecules. These polymers create the elastic quality that permits the tire to be compressed in the area where the tire contacts the road surface and spring back to its original shape under high frequency cycles. Typical components used in tire assembly are listed below.
Inner liner The inner liner is an extruded halo butyl rubber sheet compounded with additives that result in low air permeability. The inner liner assures that the tire will hold high pressure air inside, without the air gradually transmitting through the rubber structure.
Body ply The body ply is a calendared sheet consisting of one layer of rubber, one layer of reinforcing fabric, and a second layer of rubber. The earliest textile used was cotton; later materials include rayon, nylon, polyester, and Kevlar. Passenger tires typically have one or two body plies. Body plies give the tire structure strength. Truck tires, off-road tires, and aircraft tires have progressively more plies. The fabric cords are highly flexible but relatively inelastic.
Sidewall Sidewalls are non-reinforced extruded profiles with additives to give, the sides of the tire good abrasion resistance and environmental resistance.
Dept. of Automobile Engg.
31
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
Additives used in sidewall compounds include antioxidants and antiozonants. Sidewall extrusions are non-symmetrical and provide a thick rubber area to enable molding of raised letters and sidewall ornamentation.
Beads Beads are bands of high tensile-strength steel wire encased in a rubber compound. Bead wire is coated with special alloys of bronze or brass. Coatings protect the steel from corrosion. Copper in the alloy and sulfur in the rubber cross-link to produce copper sulfide, which improves bonding of the bead to the rubber. Beads are inflexible and inelastic, and provide the strength to mechanically fit the tire to the wheel. Bead rubber includes additives to maximize strength and toughness.
Apex The apex is a triangular extruded profile that mates against the bead. The apex provides a cushion between the rigid bead and the flexible inner liner and body ply assembly. Alternatively called "filler" (as in the diagram above).
Belt package Belts are calendered sheets consisting of a layer of rubber, a layer of closely-spaced steel cords, and a second layer of rubber. The steel cords oriented radially in radial tire construction, and at opposing angles in bias tire construction. Belts give the tire strength and dent resistance, while remaining flexible. Passenger tires are usually made with two or three belts.
Tread The tread is a thick extruded profile that surrounds the tire carcass. Tread compounds include additives to impart wear resistance and traction in addition to environmental resistance. Tread compound development is an exercise in compromise, as hard compounds have long wear characteristics but Dept. of Automobile Engg.
32
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
poor traction; whereas soft compounds have good traction but poor wear characteristics.
Cushion gum Many higher-performing tires include an extruded component between the belt package and the tread to isolate the tread from mechanical wear from the steel belts.
Other components Tire construction methods vary somewhat in the number and type of components, as well as the compound formulations for each component, according to the tire use and price point. Tire makers continuously innovate new materials and construction methods in order to achieve higher performance at a lower cost.
Dept. of Automobile Engg.
33
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
MANUFACTURING PROCESS
Tire plants are traditionally divided into five departments that perform special operations. These usually act as independent factories within a factory. Large tire makers may set up independent factories on a single site, or cluster the factories locally across a region.
Compounding and mixing Compounding is the operation of bringing together all the ingredients required to mix a batch of rubber compound. Each component has a different mix of ingredients according to the properties required for that component.
Mixing is the process of applying mechanical working to the ingredients in order to blend them into a homogeneous substance. Internal Mixers are often equipped with two counter-rotating rotors in a large housing that shear the rubber charge along with the additives. The mixing is done in three or four stages to incorporate the ingredients in a logical order. The shearing action generates considerable heat, so both rotors and housing are water cooled to maintain a temperature low enough to assure that vulcanization does not begin.
After mixing the rubber charge is dropped into a chute and fed by an extruding screw into a roller die. Or the batch can be dropped onto an open rubber mill batchoff system. A mill consists of twin counter-rotating rolls, one serrated, that provide additional mechanical working to the rubber, and produce a thick rubber sheet. The sheet is pulled off the rollers i n the form of a strip. The strip is cooled, dusted with talc, and laid down into a pallet bin.
Dept. of Automobile Engg.
34
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
The ideal compound at this point would have a highly uniform material dispersion, however in practice there is considerable non-uniformity to the dispersion. This is due to several causes, including hot and cold spots in the mixer housing and rotors, excessive rotor clearance, rotor wear, and poorlycirculating flow paths. As a result, there, can be a little more carbon black here, and a little less there; along with few clumps of carbon black elsewhere, that are not well mixed with the rubber or the additives.
Mixers are often controlled according to the power integration method, where the current flow to the mixer motor is measured, and the mixing terminated upon reaching a specified total amount of mix energy imparted to the batch.
Component preparation Components fall into three classes based on manufacturing process calendering, extrusion, and bead building.
The extruder machine consists of a screw and barrel, screw drive, heaters, and a die. The extruder applies two conditions to the compound, heat and pressure. The extruder screw also provides for additional mixing of the compound through the shearing action of the screw. The compound is pushed through a die, after which the extruded profile is vulcanized in a continuous oven, cooled to terminate the vulcanization process, and either rolled up on a spool or cut to length.
Tire treads are often extruded with four components in a quadraplex extruder, one with four screws processing four different compounds, usually a base compound, core compound, tread compound, and wing compound. Extrusion is also used for sidewall profiles and inner liners. The calender is a set of multiple large-diameter rolls that squeeze rubber compound into a thin sheet, usually on the order of 2 meters wide. Dept. of Automobile Engg.
35
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
Fabric calenders produce an upper and lower rubber sheet with a layer of fabric in between. Steel calenders do so with steel cords. Calenders are used to produce body plies and belts. A creel room is a facility that houses hundreds of fabric or wire spools that are fed into the calender. Calenders utilize downstream equipment for shearing and splicing calendered components.
Tire building Tire building is the process of assembling all the components onto a tire building drum. Tire Building Machines (TBM) can be manually operated or fully automatic. Typical TBM operations include the first stage operation, where inner liner, body plies, and sidewalls are wrapped around the drum, the beads are placed, and the assembly turned-up over the bead. In the second stage operation the belt package and tread are applied and the green tire is inflated and shaped.
All components require splicing. Inner liner and body plies are spliced with a square-ended overlap. Tread and sidewall are joined with a skived splice, where the joining ends are bevel-cut. Belts are spliced end-to-end with no overlap. Splices that are too heavy or non-symmetrical will generate defects in force variation, balance, or bulge parameters. Splices that are too light or open can lead to visual defects and in some cases tire failure. The final product of the TBM process is called a green tire, where green refers to the uncured state.
Pirelli Tire developed a special process called MIRS that uses robots to position and rotate the building drums under stations that apply the various components, usually via extrusion and strip winding methods. This permits the equipment to build different tire sizes in consecutive operations without the need to change tooling or setups. This process is well suited to small volume production with frequent size changes.
Dept. of Automobile Engg.
36
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
The largest tire makers have internally developed automated tire assembly machines in an effort to create competitive advantages in tire construction precision, high production yield, and reduced labor. Nevertheless there is a large base of machine builders that produce tire building machines.
Curing Curing is the process of applying pressure to the green tire in a mold in order to give it its final shape, and applying heat energy to stimulate the chemical reaction between the rubber and other materials. In this process the green tire is automatically transferred onto the lower mold bead seat, a rubber bladder is inserted into the green tire, and the mold closes while the bladder inflates. As the mold closes and is locked the bladder pressure increases so as to make the green tire flow into the mold, taking on the tread pattern and sidewall lettering engraved into the mold. The bladder is filled with a N recirculating heat transfer medium, such as steam, hot water, or inert gas. Temperatures are in the area of 350 degrees
Fahrenheit with pressures around 350 PSI. Passenger tires cure in approximately 15 minutes. At the end of cure the pressure is bled down, the mold opened, and the tire stripped out of the mold. The tire may be placed on a PCI, or post-cure inflator, that will hold the tire fully inflated while it cools. There are two generic curing press types, mechanical and hydraulic. Mechanical presses hold the mold closed via toggle linkages, while hydraulic presses use hydraulic oil as the prime mover for machine motion, and locks the mold with a breech-lock mechanism. Hydraulic presses have emerged as the most cost effective because the press structure does not have to withstand the mold opening pressure and can therefore be relatively light-weight. There are two generic mold types, two piece molds and segmental molds.
Large off-road tires are often cured in ovens with cure times approaching 24 hours. Dept. of Automobile Engg.
37
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
Final finish After the tire has been cured, there are several additional operations. Tire Uniformity measurement is a test where the tire is automatically mounted on wheel halves, inflated, run against a simulated road surface, and measured for force variation. Tire balance measurement is a test where the tire is automatically placed on wheel halves, rotated at a high speed and measured for imbalance.
Large commercial truck/bus tires, as well as some passenger and light truck tires, are inspected by X-ray machines that can penetrate the rubber to analyze the steel cord structure.
In the final step, tires are inspected by human eyes for numerous visual defects such as incomplete mold fill, exposed cords, blisters, blemishes, and others.
Dept. of Automobile Engg.
38
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
FINANCIAL DETAILS
Dept. of Automobile Engg.
39
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
MACHINERY AND TOOLS
MACHINES NAME
NOS
RATE IN Rs.
TOTAL
INTERNAL MIXER
1
1,00,000
1,00,000
BUILDING DRUM
1
1,20,000
1,20,000
ROLLER DIE
1
62,000
62,000
COUNTER ROTATING ROLLS
1
44,000 -
44,000
PALLET PIN
1
20,000
20,000
EXTRUDER MACHINE
1
2,00,000
2,00,000
CALENDER
1
66,000
66,000
TIRE BUILDING MACHINE.
1
18,00,000
18,00,000
MOLD
4
1,50,000
6,00,000
PCI
1
34,000
34,000
HYDRAULIC PRESS
1
1,25,000
1,25,000
TIRE UNIFORMITY DEVICE
2
1,00,000
2,00,000
GRAND TOTAL
Dept. of Automobile Engg.
33.71,000
40
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
OFFICE AND WORKSHOP EQUIPMENTS OFFICE EQUIPMENTS
NO.
RATE/PIECE
TOTAL RATE
Table with drawer(steel)
3
2500
7500
Table with locker (steel)
2
3000
6000
Executive chair
2
1500
3000
- Office chair
5
460
2300
Steel shelf
3
4250
12750
Steel rack
2
1000
2000
Fiber chair(ord)
5
180
900
Fiber chair (office)
5
340
1700
Ceiling fan
2
700
1400
Total
37550
WORKSHOP EQUIPMENT
NO.
RATE/PIECE
TOTAL RATE
WORK BENCH
6
2000
12000
WORK TABLE
3
4500
13500
WALL CUPBOARD
4
2625
10500
TOTAL
36000
OTHER EXPENDITURE
RATE
1 .stamp duty and registration
9000
2.pipe fitting and sanitary
8400
3.electrification and connection
19000
4.telephone connection
500
5.office stationary
1500
Computer
25000
First aid kit
600
Fire extinguisher (2 nos.)
4000
Total
Dept. of Automobile Engg.
68000
41
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
TOTAL NON RECURRING EXPENDITURE 1.
BUILDING STRUCTURE
15,00,000
2.
MACHINERY AND TOOLS
33,71,000
3.
OFFICE EQUIPMENTS
37,550
4.
WORKSHOP EQUIPMENT
36,000
5.
LAND LEASE
8,00,000
6.
POLLUTION CONTROL EQUIPMENT ELECTRIFICATION AND INSTALLATION
1,00,000
7. 8
1,00,000 68,000
OTHER EXPENDITURE TOTAL
Dept. of Automobile Engg.
60,12,550
42
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
RECURRING EXPENDITURE FOR ONE MONTH Salary for staffs and labourers: Indirect labour POSITION
NOS.
SALARY/ MONTH
TOTAL
Manager
1.
40,000
40,000
Clerk
1
8,000
8,000
Supervisor
3
15,600
45,000
Chief mechanic
2
10,000
20,000
Accountant
2
6000
12,000
Receptionist cum typist
2
6,000
12,000
Store keeper
1
4,000
4,000
Watchman
4
2,000
8,000
Purchase manager
2
5,000
10,000
Sweeper cum office boy
3
2,000
6,000
TOTAL
21
1,65,000
Direct labor
POSITION
NOS.
SALARY/ MONTH
TOTAL
Skilled worker
25
8,000
2,00,000
Semi skilled worker
15
5,000
75,000
Electrician
2
4,000
8,000
Plumber
2
4,000
8,000
TOTAL
Dept. of Automobile Engg.
2,91,000
43
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
OTHER CONTIGENT EXPENSES/ MONTH
1. MANUFACTURING DEP. a. Electricity charge
19,000
b. Water charge
10,000
c. Maintenance and repair
10,000
2. Publicity and advertisement
7,000
3. Telephone charge
6,000
4. Stationery
3,000
5. Transportation
10,000
6. Sales expenses
6,000
7. Miscellaneous expenses
5,000
TOTAL
Dept. of Automobile Engg.
76,000
44
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
WORKING CAPITAL Working is for 3 months recurring expenditure. Recurring expenditure month. 1.Material cost
10,00,000
2.Salary (direct and indirect)
4,56,000
3. Other contingent expenses
76,000 15,32,000
TOTAL
WORKING CAPITAL = 3 MONTHS RECURRING EXPENDITURE
TOTAL
Dept. of Automobile Engg.
3X1532000
45,96,000
45
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
TOTAL CAPITAL INVESTMENT Total investment
= Fixed capital+ Working capital
Total investment
= 6012550+4596000 = 10608550
Dept. of Automobile Engg.
46
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
FINANCIAL ANALYSIS
Total capital investment
= 10608550
1. 75% lean from SBI on fixed capital
= 4509412
2. 15% subsidy on fixed capital from Govt.
= 9018825
3. 50% lean from KFC on working capital
= 2298000
4. Entrepreneurs contribution
= 2899256
5. Investment of each partner
= 362407
INTEREST ON LOAN
(12.5) SBI
=
563676
(9.5) KFC
=
218310
Dept. of Automobile Engg.
47
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
FIXED EXPENCE ON ONE YEAR
1. Salary/year
=
5472000
2. Other continent expenses
=
912000
=
505650
=
11032
c) Depreciation of building (5%)
=
75000
4. Insurance premium (15% of total fixed cost)
=
9188
5. Material cost
=
12000000
6. Interest on loan
=
781986
3. Description a) Depreciation of tools and money b) Depreciation of workshop office equipment (15%)
Total =
Dept. of Automobile Engg.
48
19766856
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
ANNUAL INCOME
Type of tyre
Quantity
Rate/tyre
Total amount Rs.
2 wheeler
1125
400
450000
2 wheeler
1125
500
562500
4 wheeler
1125
1300
1462500
4 wheeler
1125
1400
1575000
Total
4050000
Total income/year
Dept. of Automobile Engg.
=
49
48600000
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
ANNUAL PROFIT Annual income
=
48600000
Annual cost of production
=
19766856
Annual profit
=
Annual income- Annual cost of production
Dept. of Automobile Engg.
=
48600000-19766856
=
28899144
50
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
PROFITABILITY Annual profit
=
28833144
Annual income
=
48600000
Profitability
=
Annual profit/ Annual income x100
=
28833144 / 48600000x 100
=
60%
Dept. of Automobile Engg.
51
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
BREAK EVEN POINT(B.E.P)
Fixed capital
=
6012550
Working capital
=
18384000
Annual income
=
48600000
Break even point (BEP)
=
Fixed capital 1-(working capital/Annual income)
=
6012550 1-(18384000/48600000)
=
Dept. of Automobile Engg.
9670701
52
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
ANNUAL FIXED COST 40% of salary and wages
=
2188800
40% of other continent expenses
=
364800
Total depreciation / year
=
591682
Interest / year
=
781986
=
3927268.00
Total
Dept. of Automobile Engg.
53
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
PERCENTAGE OF BEP
Annual fixed cost
=
3927268
Fixed cost
=
3927268
Profit / year
=
28833144
Percentage of BEP
=
Annual fixed cost x 100 (fixed cost+ profit/year)
Dept. of Automobile Engg.
=
3927268/(3927268+28833144) x 100
=
12%
54
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
DEBIT SERVICE COURAGE RATIO (D.S.C.R)
Annual profit
=
28833144
Total depreciation / year
=
591682
Interest / year
=
781986
D.S.C.R
= Profit/year + depreciation/year+ Interest on loan Interest on loan + Annual installment of repayment
D.S.C.R
=
28833144+591682+ 781986/ (781986+1360882)
=
Dept. of Automobile Engg.
55
14:1
SSM Polytechnic College, Tirur
Tyre Manufacturing
Project Report 2011-2012
ADDRESSES OF MACHINERY AND EQUIPMENT SUPPIERS 1. M/S SHASTHA machine tools 7, Rajaji road, near ayyapa kovil, Pune
2. M/s Best tools,34, Ghandi nagar, Delhi
3. Guru Engg. Works, 37/76 Near private bus stand, Mumbai
4. International machine tools co-operation 7, Maruthi nagar, near G.N Collage, Mumbai
Raw material suppliers:
1. Rubber board of kerala, Kollam. 2. Asian rubber manufactures, Calicut. 3. Ganesha rubbers, Guwahati.
Dept. of Automobile Engg.
56
SSM Polytechnic College, Tirur
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