ME-01 (11403012)

The reduce customer end PPM

A MAJOR PROJECT REPORT

Submitted in partial fulfilment of the requirements for the award of the

degree.

BACHELORS OF TECHNOLOGY
Mechanical Engineering

Submitted to
Punjabi University

Submitted by

URN Name Profile

11403012 Davindersingh Student

Guide: Sumesh Sharma

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ACKNOWLEDGEMENT

I am grateful to all those who have helped me directly or indirectly in

preparing my major project report Reduce the customer end PPM.

I would like to thank the various contributors to this report, without whom,
this project could not have taken place. This includes all the respondents
and the management of the JR Forgings in which I undertook my project
work.

I would also like to thank the team at the and Entrepreneurship for
providing me opportunity to work on this valuable project.

I take this opportunity to express my sincere gratitude to Mr. Raman

Bhardwaj (M.D) for providing all guidance and support in execution of this
project.

Name & Signature of Student (s)

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TABLE OF CONTENTS

S. Page
Description
No. No.
Certificate i
Acknowledgement ii

Table of Contents iii

Abstract iv

1. Methodology 1

2. Project Plan and Design 10

3. List & priortize problems 18

4. Solution to problems 30
Appendices-A, B, C, D (as many
5. 45
applicable)
6. Conclusion 50

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ABSTRACT

With the on-going cut throat competition in today’s age, survival depends
upon cutting the costs, but when rejections grow up to a significant level,
they start eating the Bottom Line which endangers the survival of any
enterprise. Here in our case also, Rejection in the Fork grew up to a
level of 10293 PPM .

We decided to start Major Project to solve this problem because a well

planned and properly executed Quality improvement project helps a lot in
solving in a problem in a Six sigma approach.

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MAIN TEXT
Project : Reduce the customer end PPM
Methadology: Six sigma
Company Name : JR Forgings
Company Introduction:
JR Forgings is a leading manufacturing of Fork, Staring ARM, Arm
Spindle, Blank Gear, Stub Axle for tractor company having turnover
28.00 Crore. JR Forgings supply to O.E.M customer i.e. Swarajmazda,
Mahindra &Mahinra, TAFE, Eicher, John Deere etc.

This is to certify that this Project has been carried out at JR FORGING .

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1. Introduction
In this section we will discuss company profile where project has been
executed and project methodology in the following bullet point 1.1 and
1.2.
1.1 Company profile
JR Forgings Limited is an ISO: 9001:2008 Certified Company;a
leading supplier of precision Forged and fully Machined tractor
Components. Originating as a small manufacturing facility in Mohali
(Punjab, India) in 1983, it now comprises of three manufacturing
facilities that operate in diverse fields like trctor industry components.
Major customers of JR Forgings is –
1) Swaraj (Mohali) – Forged & Machined components for tractor .
2) TAFE (Chennai) - Forged & Machined components for tractor .
3) Mahindra - Forged & Machined components for tractor .
4) Eichertractor (Jamshedpur) – Forged & Machined components
for tractor .
5) John deere -Forged & Machined components for tractor.
6) Indo farm tractor– Forged & Machined components for tractor .
7) Preet tractor-Forged & Machined components for tractor .
8) ACE – Forged & Machined components for tractor .

Annual Turnover
Annual turnover of JR Forgings Limited is Rs.28.0 Cr

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1.2 Project methodology

We followed Six- sigma methodology to solve the problem.
Six-sigma is an iterative five-step management method used in
business for the control and continuous improvement of processes and
products.
Six-sigma effective approach for problem solving and managing change,
ensuring that ideas are appropriately tested before committing to full
implementation. It can be used in all sorts of environments from new
product development through to marketing, or even politics.
It begins with a Planning phase in which the problem is clearly identified
and understood.

The five phases in the Define- Measure- Analysis- Improve- Control

involve:

1) D - Define Phase: Define the projects goals and customer (Internal &
external) deliverable.
2) M – Measure Phase: Measure the process to determine current performance;
quantify the problem.
3) A- Analyze Phase: Analyze and determine the root cause(s) of the Defects.
4) I – Improve Phase: Improve the process by eliminating
5) C- Control Phase: Control future process

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2. Project Plan and Design

2.1 Why this Project?

JR Forgings has different types of quality issues in different
components. After discussed with quality department we have taken
three components out of them and analyze with respect to cost of
poor quality by Pareto graph and also analyze by Project priority
index. A brief description of these components is given below –
1) Forks
Forks is a forging component. Its production rate 45000 pieces per
Month and its rejection rate is
4521 PPM And COPQ

2) Staring Arm
Staring Arm is a forging component. Its production rate 7000
pieces per Month and its rejection rate is 2524PPM And COPQ

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2.1.1 Pareto Analysis

Pareto Analysis is a statistical technique in decision-making used for

the selection of a limited number of tasks that produce significant
overall effect. On the basis of cost of poor quality of these
components we have drawn Pareto graph .

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98.9 99.3 100.0

3200 100
91.8 95
90
2800
85
80
2400 75
70
65
2000 1881

% of Contribution
60
Rej.in Nos.

55.1 55
1600 50
45
1252
40
1200
35
30
800 25
20
15
400 240 10
25 14 5
0 0
Product

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2 Project Priority Index (PPI)

We have also found PPI for above three components. A cost-

benefit analysis can be performed on the potential project to
determine its estimated benefit to the organization. This analysis is
known as the Project priority index (PPI). The index takes account of
the following elements:

Savings - This a rupees amount, determined by the accounting

department, that reflects savings that result from increased sales,
decreased labor costs, decreased carrying costs, and reduced
maintenance and material costs.

Cost – This rupees amount, determined by the accounting

department, illustrates the price of implementing a project. This
figure includes costs such as materials, work stoppage for data
collection and labor costs.

Completion time – This is the time required for the project team to
complete process and implement the solution.

The index number helps organizations compare a several different

potential projects at a glance. Potential projects with greater dollar
savings and a higher probability of success will have a higher PPI
number than those with greater cost and longer completion time.

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The PPI weighs the rupees savings and the probability of success of
a project against the cost of deployment and the time required for
project completion. The result is illustrated in an index number.
Project priority index of Fork is higher than other.

2.3 Team members

S. No. Team Member UR No. Company

01 DavinderSingh 11403012 JR Forgings

2.4 Problem statement

Average Customer end rejection is 10293 PPM from Jan-17 to Dec-
17.Last year rejection cost was Rs/ 33,82500.

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2.5 Mission statement

To reduce the PPM level from 10293 to 200 PPM and this will rejection
is saving t cost Rs/33,82,500apox.
12000

10000

8000

6000
10293 PPM
4000

2000

0 200
Present Target

2.6 Calculation of loss due to problem

Total Manufacturing Component = 65,00 pcs/month
Cost of component = Rs. 500/piece
Rejected Component = 6765piece/month
Total rejection = 33,82,500 piece/annum

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2.7 Project time frame

First of all, after getting assigned the Project Responsibility, we
discussed with Managing Director – Mr. Raman Bhardwaj regarding
the splitting up the activities. He advised us to make Gantt chart. We
split the activities on a Gantt chart in the following steps:
1) Problem identification
2) Team formation
3) Data collection and theories generation
4) Testing of theories
5) Development and implementation of solutions

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Jan- April
Feb-18 March -18
18 -18
Activity Name W W W W W W W W W W
W W W
1 1 1
1 2 13
3 4 5 6 7 8 9 0 1 2
1.Problem
Identification
2.Problem
Selection
3.Defining the
Problem
4. Analysis of
Problem
5. Listing of
probable
Causes
6. Validating
the probable
Causes
7.Root Cause
Analysis
8. Develop of
Solutions
9.
Implementatio
n
10.
Standardizatio
n & Regular
implementation

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2.8 Process flow chart

High Level Flow Diagram
After receiving of material it goes to cutting operation followed by
chemical and mechanical testing. Cut pieces moves to forgings shop
and after forging, components moves to coining operation followed by
normalizing and shot blasting operation. After coining and inspection,
rocker shafts move to machining workshop if length exceed from its
specified dimension. After final inspection component goes to
packing and dispatch department.

Plate 2.8.1 shows the high level flow diagram which clearly depicts
the problematic area i.e. forging.

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Detailed Process Flow Diagram

We reviewed the as is process and made the following detailed

process flow diagram of the forging operation where we faced the
major problem.The process starts with raw material inspection, after
that we cut the billet on band saw machine and send it in forging
shop after the inspection. In forging shop we heat up (red hot) the
billet in furnace, after heating the billet we put it on forging die which
is loaded on dropforgings (2 ton).

PLATE 2.8.2A Detailed Flow Diagram

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Plate 2.8.2A & 2.8.2B shows the detailed process flow diagram which
shows the complete path of Rocker Shaft.
After forging component flashed out on mechanical press (75 ton)
and inspected by quality and production supervisor, after that
inspected component move for normalizing, shot blasting, coining
and machining followed by stage inspection. After this, final
inspection is carried out and packed material dispatches to customer.

PLATE 2.8.2B Detailed Flow Diagram

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3.Measuring Phase :-
In this phase first of all we collected the rejection data for the Months of
Jan-2017 to Dec (2017) from the Customer end rejection trend

Mo Jan Fe Ma Apr Ma Jun Jul Au Se Oct No De

nth b r y y g p v c
Tot 338 321 314 315 257 206 206 282 260 253 301 314
al 45 49 07 48 04 12 73 27 34 10 56 83
Dis
.
Tot 702 695 427 3 138 27 33 27 42 313 753 341
al
Rej
PP 207 212 135 95 536 131 159 602 161 123 249 117
M 42 06 68 9 0 6 3 67 70 84

PLATE 3.1 Rejection Data

Trend of Rejection –is shown in plate 3.1, it shows that in the month of
Jan 2017 rejection 20,742 PPM In Feb 2017 rejection 21,206 PPM

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3.1 S.No. Defect Qty List

and 1 Rail seating bore finish poor 698
2 Go thread gague not answering 296
3 Rust 217
4 Rails seating oversize 192
5 Pad thickness u/s & o/s 120
6 Burr parting area 110
7 Pad twist/bend 79
8 Fork milling inner width o/s 73
9 Excess material at side 48
10 Part mixup 24
11 Thread burr 6
12 Pad position uneven 2
13 Forging finish poor 2
14 Damage 1
15 Not ok position gague 1
16 Inner widh under size 1
prioritize the problems

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Pareto Analysis of Defects

Pareto Analysis is a statistical technique in decision-making used for

the selection of a limited number of tasks that produce significant
overall effect. It uses the Pareto Principle (also known as the 80/20
rule) the idea that by doing 20% of the work you can generate 80% of
the benefit of doing the entire job. In terms of quality improvement, a

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large majority of problems (80%) are produce by a few key causes

(20%). This is also known as the vital few and the trivial many.

The 80/20 rule can be applied to almost anything:

1) 80% of customer complaints arise from 20% of your products and

services.
2) 80% of delays in the schedule result from 20% of the possible
causes of the delays.
3) 20% of your products and services account for 80% of your profit.
4) 20% of your sales-force produces 80% of your company revenues.
5) 20% of a systems defects cause 80% of its problems.

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800 100
698 90
700
80
600
A 70
500 60
400 50
296 40
300
217 30
200 Q 192
Q 120 110 20
100 A 79 73
Q 48
24 10
6 2 2 1 1 1
0 0

PLATE 3.1.2 Pareto analysis: Prioritizing the problem

After doing Pareto analysis, the vital few problems got separated
from useful many. We came to know that the first four causes i.e.
Rail seating bore finish poor and Rail seating bore over size
82.8% of the total problems.

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3.2 Major Defects – contribution of these defects is 82.8%.

1)Rail seating bore finish poor :-

We can see in bore rail seating bore finish poor which is clearly
visible inside the red circle like a hair line.

2)Rail seating bore over size :-

We can see in bore rail seating bore over size which is clearly
visible inside the red circle like a hair line. After broaching operation,
we have check the component on bore gauge(telescopic gauge) for bore
size.

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4. AnalysePhase :-
4.1 Brainstorming - Formulating the theories of causes
After having the Pareto Analysis done, we started to formulate the
theories with the help of Brainstorming and Cause and effect
diagram. We called a brain storming session, consisting of
participants from Q/A, Machine shop, Engineering, Tool Room. We
also called supervisors and related operators with a perception that
making supervisors and operators as the part of the discussion will
make task easy and in time because they are the people who are
directly dealing with the process and problems. We started brain
storming one by one for every defect by collecting probable causes
using Fishbone diagram. We collected the ideas of all team members
and noted down all of those ideas.
Now we will discuss about defects one by one from brainstorming to
root cause analysis.

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4.2 Rail seating bore poor & Rail seating bore over size

Now we will start with crack defects which creates cost of poor quality
.
Brainstorming - Rail seating bore poor & Rail seating bore over
size
 Machine Vibration
 Fixture Worn-out
 Setting Problem at initial stage
 Incorrect broach dia
 Wrong method of checking the surface finish
 Poor finish in Inner Dia before broaching
 Machining stock not available
 Wrong raw material used
 High Hardness
 Micro-structure not ok
 Unapproved supplier material
 Chip removal not done

During brain storming we tried to touch all the probable areas of the
problem as shown into fishbone diagram. It was going to be a very
important task for us to find secondary cause of probable causes.
Plate 4.2 illustrate the Cause and effect diagram for Crack

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4.3 A testing the theories and identifying root causes –

After having all the probable causes with us, our journey towards
testing these causes started. During brain storming we tried to touch
all the probable areas of the problem as shown into fishbone
diagram. Now we had to identify the probable causes.
In this crucial phase, we took help from the Forge Shop, QA
department, Tool Room, Cutting Shop, HR Department, Systems
Department, and Engineering department also.
We tested all the causes with help of cause and effect diagram in
reference of man, material, measurement, method and environment,
some of them were found valid. We used Quality tools such as data
collection, previous records, charts, etc. for this purpose.

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Cause & Effect Matrix :

Output Output Output

Output
#1 #2 #3
Indicators
Raju sanjeev Deepak
Input/ Correlation of input to Total
Process output
indicators
Machine 1 1 3 5
Variation
Fixture worn 3 9 3 15
out
Setting 1 1 1 3
problem at
initial stage
Incorrect 9 3 9 21
broach length
Machine stock 3 3 3 9
not proper
High hardness 3 3 3 9
Micro 3 1 3 7
Structure not
ok 3
Feed high 9 9 9 27
Incorrect drill 9 3 9 21
dia

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We made the casuse and matrix diagram with the help of supervisor and
operator.After the discussion we conclude the list of Prioritized causes.
We work
out of Cause Rank
Fixture worn out 15
Incorrect drill dia 21
Feed high 27
validation of this four point.

4.3.1 Probable cause: Fixture worn out

Testing: We checked the fixture worn out with the help of quality inspector
and tool room person.
it found ok.
Conclusion:So this theory is invalid.

4.3.2Probable cause: Feed high

Testing: We set the drill machine feed 0.20 as per our production team decided
at development stage.Results are under control.

Conclusion:So this theory is invalid

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4.3.3Probable cause: Incorrect drill dia (18.65)

Testing: We have collect the continous 50 nos after broaching
operation.
Checked the bore finishing.
Conclusion:So this theory is valid.
Cp and Cpk found not ok

.
 This is analyse on spc software

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4.4 Remedial Journey: Development and implementation of solutions

After having the root causes with us, we started remedial journey with
developing and implementing the solutions. We again called the all the
team members to contribute towards the Solution development and
participate in Brain storming session. In the Brain storming season, all
the team members given their views and we noted each of them.
For the First Cause i.e. incorrect drill dia we suggested to decrease
the drill dia as per discussion our internal team. Our Management
understands the incorrect drill diaand they provided drill dia 18.25 MM

Secondly reason poor material handling after welding, we suggested to

improve the material handling after welding .

Third reasonSetup part mixup with production shop, we suggested to

introduce the red bin particular area
.

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5.0 Improving Phase

We have called a discussion session for training program regarding
operators consisting of participants from Q/A, Cutting shop, Engineering,
Forge Shop, Tool Room and HR. We also called supervisors from
concern departments and decided how to train the workmen for
improvement. And also give the guidance to supervisors how to execute
it.

Action Plan – After having the root causes with us, as our remedial
journey started with developing and implementing the solutions
In action plan plate shows the causes, action plan, target date and
responsibilities in a tabulated form

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5.1 change drill dia (18.25) :-

We have changed the drill dia after change drill dia (18.25) collect the 50
nos found ok and process capability and process capability index found
ok as per show the diagram 5.2

Fig5.2 (in spc software)

Process capability and Process capability index found ok

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 Kaizen :for small changes

5.2 Improve welding area
Implemented the welding stand (Dent Free material)

Title : Shaft diameter over size by 0.02mm

Before After

 Define & Implemented the

 Material handling & welding stand and after
after welding material welding material properly
through on the floor. stack on tray (Dent Free
material)

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5.3 Impliment red bin :-

We have introduced the red bin to avoid the setup time material mixing.
Bad parts mix with good parts may damage the good one.

Before After

 Setup part mixup with

 Rejected Material not mixup
production shop

5.4 Improve parking standard :-

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To avoid the transit demage we introduced the packing standard after

implement this packing standard our rejection PPM trend reduce.

Title: Fork fingure not answering to gear,due to pad

position uneven

Before After

 Product might  Reduce chances of

damage damage

5.5 Operation missing :-

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We gave the training at packing stage and introduced the packing SOP
paste at packing stage . After the implemented reduce the rejection end
PPM.

Title :Slot missing

Before After

 Not awarenances on Packing  Paste will be on visual

stage inspection area

6.Results

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After implementation of all solutions, now it was the time to measure the
effectiveness and explore the results of the efforts made. So we started
Performance Evaluation Process by recording the data.

6.1 Performance evaluation

We collected the data of rejections from week 11 to week 13 of year
2018 (refer plate 6.1.1) for all the vital few defects identified with
Pareto analysis.

Past trend Target Actual

45000

40000

35000

30000

25000

20000

15000
10467 10293
10000

5000
371 284
0
2016-16 2017-17 Apr'18 May Jun Jul Aug Sep Oct Nov Dec Jan'19 Feb Mar

Rejection data afterwards 6.1.1

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Furthermore, we were facing the rejection of 10293 PPM and

12691PPM and set a target to bring it down to 200 PPM .After
applying the remedies, It was found that the rejection percentage has
reduced to 284 PPM in 13 week (refer plate 6.1.2).

11000
10293
10000

9000

8000

7000

6000

Series1
5000

4000

3000

2000

1000
200 284
0
Status Before Project Target Achived

PLATE 6.1.2 Rejection trend: Before, target, and after

6.2 Benefits: tangible and intangible

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A)Tangible benefits
Tangible benefits are direct ones which are generally associated
with the monetary reimbursements. We saved money by lowering
down the rejection, and by increasing the productivity. We have
saved Rs. 5,18,000 in between April-May,18 .

B)Intangible benefits
Along with these benefits some intangible benefits also observed as
given underneath:
1) Increased self confidence.
2) Our team has learned logical and structured approach to solve
chronic problems using appropriate tools.
3) Knowledge about problem solving tools is improved.
4) Enhanced team work.
5) Competency and analytical skill of team members improved.
6) Improved worker skill.
7) Improved inter personal relations.
8) High morale and motivation.

7 Conclusion and recommendations:

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Finally, after accomplishment of this major project it has revealed us that

nothing is impossible, what needed is just a determined initiative
followed by true spirit and zeal to solve the problems. Lifted our position
in the institution for our true professionalism and sincerity.
We used to give due consideration during the execution of the project,
despite of all constraints to strictly follow the defined guidelines and time
management.
We have learnt through this project how to execute and manage various
tasks to increase the process efficiencies. Our industrial exposure has
also been increased by virtue of working in this project of big industry
where we had exercised our knowledge in different arena of mechanical
engineering which help us a lot to grow as an efficient and perfect
development engineers in all respects.
To multiply the quantum of gains of this project, we recommend
horizontal deployment of the actions taken on the same lines like Fork.

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