MANPOWER COST USE FOR THE OPERATION. 1.Three shifts three man. 2. per man wages is Rs.6000/- per month . 3. 3 person wages for one month is Rs.18000/-

COST OF MACHINE1. power of machine is = .5hp2.electricity charge is =.37285 KW3. For one day =.37285*20 4.Unit =7.457 5. electricity cost is =Rs.8 /unit 6. one day electricity consumption =7.457*Power consumed per month =60*30 7.Power consumed per month=60*30=1800/- 8. maintenance cost per month = Rs.50/- 9. lubrication cost = Rs.50/- 10. Total machine cost per month = Rs 1900 /- 11. Total running cost per Year = Rs 1900 x 12 =22900

COMPARISION1. Worker cost for one year = Rs 216000/- 2.Machine cost for one Year = Rs 22800/- 3.Saving per Year (216000 - 22800) = 193200 /-

CONCLUSION1.In every condition the machine is beneficial 2. The machine gives the profit of company. 3.cost is reduced of the product. 4.One time investment on machine is Rs 25K.

PROJECT:- COST REDUCTION OF COMPRESSED AIR:- GOAL STATEMENT :

1. Consumption to be reduced from 45 K watts to 38 K watts. 2. Primary Metric:- Energy consumption reduction.3.Secondary Metric:- -Higher & constant supply of C/air to machine - Maintenance cost reduction. - Up Time improvement. OPPORTUNITY STATEMENT :

Energy consumption is too high to run the 6 No air compressors. If it is reduced , the cost of compressed air shall come down

PROJECT SCOPE :

-Screw type Technology / Equipment to be used in place of Horizontal to save the energy and improve the output..

OUT OF SCOPE: - Consumption - Manpower

- Project Plan:- (Key activities and dates to achieve them) Key Activities: Timing:

M: E: D: I:: C:

Mapping and measurement of problem Applying 7 Tools to find Red X of the problem Trials for confirmation of root cause Action Result Confirmation and standardization

2 days 2days 1Wk. 2Wk. 1Wk.

Resources (Specific resources (budget, support) to be able to fulfil these key activities)

General:- M:

E:

D: I:

C:Data from costing department

Support from purchase department for timely procuring equipment.

Support from production & Engineering departments for carrying out different trials.

Support from Commercial & Engineering departments for action at right time & Budget. Support from Engineering / design department for drawings & documents

COST REDUCTION Cost reduction directly reduces the cost of production of products hence helps to maintain the critical success factor ( quality, cost, delivery and service) so as to be competent In market.

There are no. of factors which affect the cost of production. Cost of production can be reduced by the application of Different methods. By introducing new technology. By changing material By utilyzing maximum asset By systematicoperation Among all the above methods, the best is one which can reduce cost significantly without lowing/ decreasing the quality of product so to make a balance between cost and quality which basic need for market competition is introduction of new technology.

ANALYSIS: After analyzing, the above fishbone diagram we may concluded that the best thing to reduce the cost of production of compressed air is to change the technology ie to introduce an new technology because other equipment, material changing factor environment & manage all those may reduce the cost of production but not significantly so as to make competent in market so the better option is to change technology because we have a compressor technology those specification is as follow. No of compressor :- 1 Electric power required :-37 KW Output :- 240 CFM

INTRODUCTION OF COMPRESSORS An air compressor is a device that converts power (usually from an electric motor, a diesel engine or a gasoline engine) into potential energy by forcing air into a smaller volume and thus increasing its pressure. The energy in the compressed air can be stored while the air remains pressurized. The energy can be used for a variety of applications usually by utilizing the kinetic energy of the air as it is depressurized.

PRESENT TECHNOLOGY OF COMPRESSOR :-This is the basic specification of compressor in company. Type of compressor:- Reciprocating Drive type :- Automation Number of Compressor:- 6 Pressure reduced :- 8 kg/cm2 Required demand :- about 200-250 CFM REQUIREMENT Motor requires 7.5 KW electricity/comp. Output = 217 CFM

ANALYSIS OF PRESENT TECHNOLOGY For the required pressure and volume of compressed air currently company has installed six horizontally type reciprocating compressor these all are automatic operated. But each compressor required 7.5 KW electricity power which costs annually ( 7.5 * 8 * 24 * 350) Rs 5,04,000 /- and gives total output is 217 CFM (cubic ft per minute). Any how if we install (use) any other new compressor technology which requires less electric power & produces Comparatively more out put then the cost of production of compressed can be reduced significantly.

COMPARISON BETWEEN RECIPROCATING & SCREW COMPRESSOR:

Reciprocating compressor 1) It can deliver large pressure ratio of 5 in single stage & upto 300 in multistage compressors. 2) It is suitable for delivering flow rates upto 30 m3/min 3) Pressure rise is due to variation in volume of cylinder by means of moving boundary formed by piston. 4) These are either air or water cooled to reduce the work of compression. 5) These run at slow speeds. 6) For given flow rate, Weight is large. 7) Lubrication system is complicated.

screw Compressor

1) It can deliver pressure ratio upto 2.5. 2) It can deliver large volume flow rate from 0.5m3/min upto 1500m3/min. 3) The rise in pressure is either due to back flow of air as in case of root blower or due to decrease in volume & back flow as in case of vane blowers. 4) These are not cooled. 5) These run at high speeds. 6) For given flow rates, its Weight is comparatively lower. 7) Lubrication requirements are

OPERATION

1) By introducing new technology. 2) By using automatic control. 3) By using systematic

CONCLUSION:- From the analysis of above brain storming we got the better methods/way to reduce the cost of production of compressed air significantly & that is introduction of new technology in each of compressor other methods may reduce the cost of production but not significantly so better one is introduce the new technology.

COMPARISON TABLE:- Reciprocating

SN Factor compressor compressor Remark (6 pcs) (1 pcs) 1Electric power 45 KW/hr 38 KW/hr Screw comp. saves 7 KW/hr

2Cost of electric Rs. 30,24,000/- Rs. 25,53,600/- Screw com. Saves power per year Rs. 4,70,400/-

3Out put 217 CFM 240 CFM Screw com. Produces 23 CFM more out put.

4Service charge Rs. 60,000/- Rs.50,000/- Screw com. Saves Rs. 10,000/- per year

5Spare parts Rs. 1,57,000/- Rs. 25,000/- Screw com. Saves Per year per year Rs.1,32,000 per year

6Work space Required more Required less Screw com. Save floor work space work space area. CALCULATIONS :- Cost of electric power Assuming that total working hour in a day is 24hr & total working days in a year is 350 days. Cost of electric power is Rs. 8/unit For Reciprocating type:- Total units = 45 * 1 = 45 units [1 unit = 1KWhr] For 1 day = 45 *24 = 1080 units For 1 year = 45 * 24 * 350 = 378000 units Cost For 1 year = 45*24*350*8 = Rs.30,24,000/-

For Screw type:- total unit = 38 units For 1 day = 38 * 24 = 912 units For 1 year = 38 * 24 * 350 = 319200 units Cost for 1 year = 319200 * 8 = Rs. 25,53,600/-

RESULT ANALYSIS

Factor Service Spare parts Electricity

Total

1) Screw comp.

Rs. 50,000/- Rs. 25,000/- Rs. 25,53,600/-

Rs. 26,28,600/-

2)Reciprocating comp. Rs. 60,000/- Rs. 1,57,000/- Rs. 30,24,000

Rs. 32,41,000/-

Total saving After using screw type comp. =Rs.32,41,000 - Rs.26,28,600 =Rs.6,12,400/yrPercentage saving = ( 612400)/(3241000) = .188 = 18.8 % = 20% (assumed) Cost of production for 1 cap = 20 paisa(company data) Now 20% of 20 = (20 * 20/100) = 4 paisa. Hence by installing screw typenew technology compressor the cost of production of one cap can be reduced by 4 paisa per cap.

FINAL CONCLUSION :-The installation cost of a screw compressor is about Rs. 6,00,000. and and after installation company can make a saving of Rs. 6,12,400/- annually, means the investment on installation cost can paied back with in a year. Also it reduces cost of production by 4 paisa per cap.

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