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CHAPTER- 1 INTRODUCTION 1.1 INDUSTRYPROFILE Manufacturing industry refers to those industries which involve in the manufacturing and processing of the items and indulge in either creation of new commodities or in value addition. The manufacturing industry accounts for a significant share of the industrial sector in developed countries. The final products can either serve as finished goods for sale to customers or as intermediate goods used in the Manufacturing provides important material support for national infrastructure and for national defense. On the hand, most manufacturing may involve significant social and environmental costs. The clean-up costs of hazardous waste, for example, may outweigh the benefits of a product that creates it. Hazardous material may expose workers to health risks. Manufacturing industries are the chief wealth producing sectors of an economy. These industries use various technologies and methods widely known as manufacturing process management. Manufacturing industries are broadly categorized into engineering industries, construction industries, electronics industries, chemical industries, energy industries, textiles industries, food and beverage industries, metalworking industries, plastic industries, transport and telecommunication industries. The mining industry has been key to the development of civilization, underpinning the iron and bronze ages, the industrial revolution and the infrastructure of today’s information age. In 2001, the mining industry produced over 6 billion tons of raw product valued at several trillion dollars. Downstream beneficiation and minerals processing of these raw materials and products are created to serve all aspects of industry and commerce worldwide. For the past several years the mining sector has been growing at the rate of 3% to 4% annually. Moreover, the new mining policy of Government of India is expected to give a further boost to the mining sector and the government is expecting to increase share of the mining sector in the GDP, which currently accounts for 2.8%.Naturally, growth in the mining sector translates into an exponential growth for the Indian mining equipment industry. Currently, the market size of mining equipment inthe country is estimated to be over Rs 10,000 crore.

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The industry is highly competitive with over 100 companies comprising of public (nearly 70%) and private sector companies (about 30% include joint ventures and closely held companies). Some of the players in the mining equipment industry Volvo, Liebhett, Caterpillar, Sandvik, Terex, Bomag, Hyundai, Atlas Copco, Kobelco, Daewoo, Joy Mining, John Deere, Poclain, Tega, JCB and Bitelli.

HISTORY Manufacturing is the process by which raw materials and other inputs are converted into finished goods\products. A system is understood as a whole which cannot be taken apart. It must be studied as a whole. While looking from this perspective, we may note that there are three systems. 

Manufacturing sub-system



Conversion sub-system &



Control sub-system.

Competitive advertisement of companies is highly talked about these days. It is believed that a firm, strong is competitive advantages is well poised to Succeed what ever may be the constraints or restraints. The degree to which the needs are satisfied is often accepted as a measure of economic well-being. In Manufacturing there are two features which explain increasing economic well-being. Firms look to Manufacturing function to achieve competitive advertisements, Manufacturing function can other competitive advertisements to a firm in the following areas :

Shorter new product lead time



More inventory turns



Shorter manufacture lead time



Higher quality



Greater flexibility

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TYPES OF PRODUCT 

Availability of raw materials



Manufacturing process



Quality control and Plant layout

Manufacturing is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output). It is the act of creating output, a good or service which has value and contributes to the utility of individuals. Economic well-being is created in a Manufacturing process, meaning all economic activities that aim directly or indirectly to satisfy human needs. The degree to which the needs are satisfied is often accepted as a measure of economic well-being. In Manufacturing there are two features which explain increasing economic well-being. They are improving quality-price-ratio of goods and services and increasing incomes from growing and more efficient market Manufacturing. The most important forms of Manufacturing are 

market Manufacturing



public Manufacturing



household Manufacturing

In order to understand the origin of the economic well-being we must understand these three Manufacturing processes. All of them produce commodities which have value and contribute to well-being of individuals. The satisfaction of needs originates from the use of the goods and services which are produced. The need satisfaction increases when the quality-price-ratio of the goods and services improves and more satisfaction is achieved at less cost. Improving the quality-priceratio of goods and services is to a producer an essential way to enhance the Manufacturing performance but this kind of gains distributed to customers cannot be measured with Manufacturing data. Economic well-being also increases due to the growth of incomes that are gained from the growing and more efficient market Manufacturing. Market Manufacturing is the only Manufacturing form which creates and distributes incomes to stakeholders. 3

Public Manufacturing and household Manufacturing are financed by the incomes generated in market Manufacturing. Thus market Manufacturing has a double role in creating well-being, i.e. the role of producing goods and services and the role of creating income. Because of this double role market Manufacturing is the “primus motor” of economic wellbeing and therefore here under review. 

As a source of economic well-being

In principle there are two main activities in an economy, Manufacturing and consumption. Similarly there are two kinds of actors, producers and consumers. Well-being is made possible by efficient Manufacturing and by the interaction between producers and consumers. In the interaction, consumers can be identified in two roles both of which generate well-being. Consumers can be both customers of the producers and suppliers to the producers. The customers’ well-being arises from the commodities they are buying and the suppliers’ well-being is related to the income they receive as compensation for the Manufacturing inputs they have delivered to the producers. 

Stakeholders of Manufacturing

Stakeholders of Manufacturing are persons, groups or organizations with an interest in a producing company. Economic well-being originates in efficient Manufacturing and it is distributed through the interaction between the company’s stakeholders. The stakeholders of companies are economic actors which have an economic interest in a company. Based on the similarities of their interests, stakeholders can be classified into three groups in order to differentiate their interests and mutual relations. The three groups are as follows:

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Interactive contributions of a company’s stakeholders (Saari, 2011,4) 

Customers



Suppliers



Producers.

The interests of these stakeholders and their relations to companies are described briefly below. Our purpose is to establish a framework for further analysis.

CUSTOMERS The customers of a company are typically consumers, other market producers or producers in the public sector. Each of them has their individual Manufacturing functions. Due to competition, the price-quality-ratios of commodities tend to improve and this brings the benefits of better productivity to customers. Customers get more for less. In households and the public sector this means that more need satisfaction is achieved at less cost. For this reason the productivity of customers can increase over time even though their incomes remain unchanged.

SUPPLIERS The suppliers of companies are typically producers of materials, energy, capital, and services. They all have their individual Manufacturing functions. The changes in prices or qualities of supplied commodities have an effect on both actors’ (company and suppliers) Manufacturing functions. We come to the conclusion that the Manufacturing functions of the company and its suppliers are in a state of continuous change.

PRODUCER COMMUNITY The incomes are generated for those participating in Manufacturing, i.e., the labour force, society and owners. These stakeholders are referred to here as producer communities or, in shorter form, as producers. The producer communities have a common interest in maximizing their incomes. These parties that contribute to Manufacturing receive increased incomes from the growing and developing Manufacturing.

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The well-being gained through commodities stems from the price-quality relations of the commodities. Due to competition and development in the market, the price-quality relations of commodities tend to improve over time. Typically the quality of a commodity goes up and the price goes down over time. This development favourably affects the Manufacturing functions of customers. Customers get more for less. Consumer customers get more satisfaction at less cost. This type of well-being generation can only partially be calculated from the Manufacturing data. The situation is presented in this study. The producer community (labour force, society, and owners) earns income as compensation for the inputs they have delivered to the Manufacturing. When the Manufacturing grows and becomes more efficient, the income tends to increase. In Manufacturing this brings about an increased ability to pay salaries, taxes and profits. The growth of Manufacturing and improved productivity generate additional income for the producing community. Similarly the high income level achieved in the community is a result of the high volume of Manufacturing and its good performance. This type of wellbeing generation – as mentioned earlier - can be reliably calculated from the Manufacturing data.

MAIN PROCESSES OF A PRODUCING COMPANY A producing company can be divided into sub-processes in different ways; yet, the following five are identified as main processes, each with a logic, objectives, theory and key figures of its own. It is important to examine each of them individually, yet, as a part of the whole, in order to be able to measure and understand them. The main processes of a company are as follows:

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Main processes of a producing company (Saari 2006,3) 

Real Process.



Income Distribution Process



Manufacturing Process.



Monetary Process.



Market Value Process.

Manufacturing output is created in the real process, gains of Manufacturing are distributed in the income distribution process and these two processes constitute the Manufacturing process. The Manufacturing process and its sub-processes, the real process and income distribution process occur simultaneously, and only the Manufacturing process is identifiable and measurable by the traditional accounting practices. The real process and income distribution process can be identified and measured by extra calculation, and this is why they need to be analyzed separately in order to understand the logic of Manufacturing and its performance. Real process generates the Manufacturing output from input, and it can be described by means of the Manufacturing function. It refers to a series of events in Manufacturing in which Manufacturing inputs of different quality and quantity are combined into products of different quality and quantity. Products can be physical goods, immaterial services and most often combinations of both. The characteristics created into the product by the producer imply surplus value to the consumer, and on the basis of the market price this value is shared by the consumer and the producer in the marketplace. This is the mechanism through which surplus value originates to the consumer and the producer likewise. It is worth noting that surplus values to customers cannot be measured from any Manufacturing data. Instead the surplus value to a producer can be measured. It can be expressed both in terms of nominal and real values. The real surplus value to the producer is an outcome of the real process, real income, and measured proportionally it means productivity. The concept “real process” in the meaning quantitative structure of Manufacturing process was introduced in Finnish management accounting in 1960´s. Since then it has been a cornerstone in the Finnish management accounting theory. (Riistama et al. 1971). Income distribution process of the Manufacturing refers to a series of events in which the unit prices of constant-quality products and inputs alter causing a change in income distribution among those participating in the exchange. 7

The magnitude of the change in income distribution is directly proportionate to the change in prices of the output and inputs and to their quantities. Productivity gains are distributed, for example, to customers as lower product sales prices or to staff as higher income pay. The Manufacturing process consists of the real process and the income distribution process. A result and a criterion of success of the owner is profitability. The profitability of Manufacturing is the share of the real process result the owner has been able to keep to himself in the income distribution process. Factors describing the Manufacturing process are the components of profitability, i.e., returns and costs. They differ from the factors of the real process in that the components of profitability are given at nominal prices whereas in the real process the factors are at periodically fixed prices. Monetary process refers to events related to financing the business. Market value process refers to a series of events in which investors determine the market value of the company in the investment markets.

MANUFACTURING GROWTH AND PERFORMANCE Manufacturing growth is often defined as a Manufacturing increase of an output of a Manufacturing process. It is usually expressed as a growth percentage depicting growth of the real Manufacturing output. The real output is the real value of products produced in a Manufacturing process and when we subtract the real input from the real output we get the real income. The real output and the real income are generated by the real process of Manufacturing from the real inputs. The real process can be described by means of the Manufacturing function.

Components of economic growth (Saari 2006,2)

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The figure illustrates an income generation process(exaggerated for clarity). The Value T2 (value at time 2) represents the growth in output from Value T1 (value at time 1). Each time of measurement has its own graph of the Manufacturing function for that time (the straight lines). The output measured at time 2 is greater than the output measured at time one for both of the components of growth: an increase of inputs and an increase of productivity. The portion of growth caused by the increase in inputs is shown on line 1 and does not change the relation between inputs and outputs. The portion of growth caused by an increase in productivity is shown on line 2 with a steeper slope. So increased productivity represents greater output per unit of input. The growth of manufacturing output does not reveal anything about the performance of the Manufacturing process. The performance of manufacturing measures Manufacturing’s ability to generate income. Because the income from Manufacturing is generated in the real process, we call it the real income. Similarly, as the Manufacturing function is an expression of the real process, we could also call it “income generated by the Manufacturing function”. The real income generation follows the logic of the Manufacturing function. Two components can also be distinguished in the income change: the income growth caused by an increase in Manufacturing input (Manufacturing volume) and the income growth caused by an increase in productivity. The income growth caused by increased Manufacturing volume is determined by moving along the Manufacturing function graph. The income growth corresponding to a shift of the Manufacturing function is generated by the increase in productivity. The change of real income so signifies a move from the point 1 to the point 2 on the Manufacturing function (above). When we want to maximize the Manufacturing performance we have to maximize the income generated by the Manufacturing function. The sources of productivity growth and Manufacturing volume growth are explained as follows. Productivity growth is seen as the key economic indicator of innovation. The successful introduction of new products and new or altered processes, organization structures, systems, and business models generates growth of output that exceeds the growth of inputs. This results in growth in productivity or output per unit of input. Income growth can also take place without innovation through replication of established technologies. With only replication and without innovation, output will increase in proportion to inputs. (Jorgenson et al. 2014,2) This is the case of income growth through Manufacturing volume growth. Jorgenson et al. (2014,2) give an empiric example. 9

They show that the great preponderance of economic growth in the US since 1947 involves the replication of existing technologies through investment in equipment, structures, and software and expansion of the labor force. Further they show that innovation accounts for only about twenty percent of US economic growth. In the case of a single Manufacturing process (described above) the output is defined as an economic value of products and services produced in the process. When we want to examine an entity of many Manufacturing processes we have to sum up the value-added created in the single processes. This is done in order to avoid the double accounting of intermediate inputs. Value-added is obtained by subtracting the intermediate inputs from the outputs. The most well-known and used measure of value-added is the GDP (Gross Domestic Product). It is widely used as a measure of the economic growth of nations and industries.

ABSOLUTE (TOTAL) AND AVERAGE INCOME The Manufacturing performance can be measured as an average or an absolute income. Expressing performance both in average (avg.) and absolute (abs.) quantities is helpful for understanding the welfare effects of Manufacturing. For measurement of the average Manufacturing performance, we use the known productivity ratio

Average and marginal productivity (Saari 2011,8) The absolute income of performance is obtained by subtracting the real input from the real output as follows: Real income (abs.) = Real output – Real input

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The growth of the real income is the increase of the economic value which can be distributed between the Manufacturing stakeholders. With the aid of the Manufacturing model we can perform the average and absolute accounting in one calculation. Maximizing Manufacturing performance requires using the absolute measure, i.e. the real income and its derivatives as a criterion of Manufacturing performance. The differences between the absolute and average performance measures can be illustrated by the following graph showing marginal and average productivity. The figure is a traditional expression of average productivity and marginal productivity. The maximum for Manufacturing performance is achieved at the volume where marginal productivity is zero. The maximum for Manufacturing performance is the maximum of the real incomes. In this illustrative example the maximum real income is achieved, when the Manufacturing volume is 7.5 units. The maximum average productivity is reached when the Manufacturing volume is 3.0 units. It is worth noting that the maximum average productivity is not the same as the maximum of real income. Figure above is a somewhat exaggerated depiction because the whole Manufacturing function is shown. In practice, decisions are made in a limited range of the Manufacturing functions, but the principle is still the same; the maximum real income is aimed for. An important conclusion can be drawn. When we try to maximize the welfare effects of Manufacturing we have to maximize real income formation. Maximizing productivity leads to a suboptimum, i.e. to losses of incomes. A practical example illustrates the case. When a jobless person obtains a job in market Manufacturing we may assume it is a low productivity job. As a result average productivity decreases but the real income per capita increases. Furthermore the well-being of the society also grows. This example reveals the difficulty to interpret the total productivity change correctly. The combination of volume increase and total productivity decrease leads in this case to the improved performance because we are on the “diminishing returns” area of the Manufacturing function. If we are on the part of “increasing returns” on the Manufacturing function, the combination of Manufacturing volume increase and total productivity increase leads to improved Manufacturing performance. Unfortunately we do not know in practice on which part of the Manufacturing function we are. Therefore, a correct interpretation of a performance change is obtained only by measuring the real income change.

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MANUFACTURING MODELS A Manufacturing model is a numerical description of the Manufacturing process and is based on the prices and the quantities of inputs and outputs. There are two main approaches to operationalize the concept of Manufacturing function. We can use mathematical formulae, which are typically used in macroeconomics (in growth accounting) or arithmetical models, which are typically used in microeconomics and management accounting. We do not present the former approach here but refer to the survey “Growth accounting” by Hulten 2009. We use here arithmetical models because they are like the models of management accounting, illustrative and easily understood and applied in practice. Furthermore they are integrated to management accounting, which is a practical advantage. A major advantage of the arithmetical model is its capability to depict Manufacturing function as a part of Manufacturing process. Consequently Manufacturing function can be understood, measured, and examined as a part of Manufacturing process. There are different Manufacturing models according to different interests. Here we use a Manufacturing income model and a Manufacturing analysis model in order to demonstrate Manufacturing function as a phenomenon and a measureable quantity.

MANUFACTURING INCOME MODEL

Profitability of Manufacturing measured by surplus value (Saari 2006,3) The scale of success run by a going concern is manifold, and there are no criteria that might be universally applicable to success. Nevertheless, there is one criterion by which we can generalise the rate of success in Manufacturing. This criterion is the ability to produce surplus value. 12

As a criterion of profitability, surplus value refers to the difference between returns and costs, taking into consideration the costs of equity in addition to the costs included in the profit and loss statement as usual. Surplus value indicates that the output has more value than the sacrifice made for it, in other words, the output value is higher than the value (Manufacturing costs) of the used inputs. If the surplus value is positive, the owner’s profit expectation has been surpassed. The table presents a surplus value calculation. We call this set of Manufacturing data a basic example and we use the data through the article in illustrative Manufacturing models. The basic example is a simplified profitability calculation used for illustration and modelling. Even as reduced, it comprises all phenomena of a real measuring situation and most importantly the change in the output-input mix between two periods. Hence, the basic example works as an illustrative “scale model” of Manufacturing without any features of a real measuring situation being lost. In practice, there may be hundreds of products and inputs but the logic of measuring does not differ from that presented in the basic example. In this context we define the quality requirements for the Manufacturing data used in productivity accounting. The most important criterion of good measurement is the homogenous quality of the measurement object. If the object is not homogenous, then the measurement result may include changes in both quantity and quality but their respective shares will remain unclear. In productivity accounting this criterion requires that every item of output and input must appear in accounting as being homogenous. In other words the inputs and the outputs are not allowed to be aggregated in measuring and accounting. If they are aggregated, they are no longer homogenous and hence the measurement results may be biased. Both the absolute and relative surplus value have been calculated in the example. Absolute value is the difference of the output and input values and the relative value is their relation, respectively. The surplus value calculation in the example is at a nominal price, calculated at the market price of each period.

ACCOUNTING AND INTERPRETING The process of calculating is best understood by applying the term ceteris paribus, i.e. "all other things being the same," stating that at a time only the impact of one changing factor be introduced to the phenomenon being examined. Therefore, the calculation can be presented as a process advancing step by step. 13

First, the impacts of the income distribution process are calculated, and then, the impacts of the real process on the profitability of the Manufacturing. The first step of the calculation is to separate the impacts of the real process and the income distribution process, respectively, from the change in profitability (285.12 – 266.00 = 19.12). This takes place by simply creating one auxiliary column (4) in which a surplus value calculation is compiled using the quantities of Period 1 and the prices of Period 2. In the resulting profitability calculation, Columns 3 and 4 depict the impact of a change in income distribution process on the profitability and in Columns 4 and 7 the impact of a change in real process on the profitability. The accounting results are easily interpreted and understood. We see that the real income has increased by 58.12 units from which 41.12 units come from the increase of productivity growth and the rest 17.00 units come from the Manufacturing volume growth. The total increase of real income (58.12) is distributed to the stakeholders of Manufacturing, in this case 39.00 units to the customers and to the suppliers of inputs and the rest 19.12 units to the owners. Here we can make an important conclusion. Income formation of Manufacturing is always a balance between income generation and income distribution. The income change created in a real process (i.e. by Manufacturing function) is always distributed to the stakeholders as economic values within the review period. Accordingly the changes in real income and income distribution are always equal in terms of economic value. Based on the accounted changes of productivity and Manufacturing volume values we can explicitly conclude on which part of the Manufacturing function the Manufacturing is. The rules of interpretations are the following: The Manufacturing is on the part of “increasing returns” on the Manufacturing function, when 

Productivity and Manufacturing volume increase or



Productivity and Manufacturing volume decrease

The Manufacturing is on the part of “diminishing returns” on the Manufacturing function, when 

Productivity decreases and volume increases or 14

1.2 COMPANY PROFILE Arun Industries after intensive research has established a very unique and effective lay out to roll steel bars. Today the TMT steel bars are very fast replacing the twisted steel bars all over the world. In fact Arun Industries was the first rolling mill in North India which started producing TMT bars in the year 1999-2000. Since then it has been continuously doing up gradation in its own facilities to produce the best quality of TMT Bars. Earlier the technology for twisted steel bars (imported by the Arun Industries in 1990 for the first time in India) dictated that the ribbed steel bars were rolled in the mills at high speed and then left for natural cooling in open air for at least 24-36 hours depending on the diameter rolled. Thereafter the cold steel bars were manually lifted from the dumping yard and taken to the twisting machines. Then each bar was fed into the twisting machine where in every bar was cold twisted (virtually like twisting of cotton yarn) to impart greater tensile strength to the steel bars. Besides it was a very intensive labour oriented job and with increasing wages slowly and surely the cost of twisting was becoming prohibitive. In this process, the yield strength was raised to desired levels by cold working but at the cost of ductility. The resultant elongation values were poor at minimum of only 14.5% was specified for yield strength of 415 N/mm,2 & still lower for desired level of 500 N/mm,2.

Name of the Company

:

Arun Industries

Category

:

Steel and TMT bar manufacturing company

Date of establishment

:

February 10th of the year 1990

Name of the proprietor

:

M.Chidambaram

Number of employees

:

220

Experience in trade

:

25 years

Address

:

28, Govindanaickenpalayam, Athippalayam post, Coimbatore-641110.

Phone number

:

Fax

: Tamil Nadu-91-44-28585675

E-mail

: [email protected]

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0422-2692146

1.3 PRODUCTS The billets we produce in-house are processed in our leading edge, fully automated Rolling Mill. Agni Steel’s TMT bars undergo a comprehensive TMT treatment. In this process, the steel tmt bars receive a short, intensive cooling as they pass through the specially designed water cooling system after the last Rolling Mill Stand. Our steel bars are processed to bond better with concrete cement mixtures and maintain high strength, while remaining convenient to bend and weld.

TMT steel bars are produced using the TEMPCORE technology that provides the bar with a strong outer core of tempered martensitic steel with a softer inner core of ferritepearlite. The end result is a bar that is both strong and ductile. TMT bars are rolled in a fully automated rolling mill featuring pre-stressed strands. Pre stressed strands ensure a bar to maintain roundness and weight throughout it’s length. Precise longitudinal and inclined transverse ribs ensures our bar has a stronger hold with concrete. BILLETS High quality Sponge Iron we produce in our own factories goes towards the manufacture of billets. Heating the Sponge Iron in a carefully regulated furnace helps maintain a consistent composition. Prior to converting them to billets, the molten metal is screened for its properties. The manufactured billet is further screened for the right chemical proportions. Only billets that match our specific standards are sent for processing to the rolling mill. Produced using a fully automated modern Casting machine that ensures uniform composition of billets without defects. State of the art manufacturing process ensures high producti on yield with minimal wastage. High grade sponge is used to manufacture our billets.

SPONGE IRON From the very beginning of the manufacturing process, we believe in maintaining a distinguished standard of quality. Our finished product can only be as good as our raw materials which is why we use only high grade iron ore and coal for production. Further, manufacturing processes are sophisticated and conducted with precision to produce high quality Sponge Iron 

Produced with high grade coal imported from South Africa.



High quality Iron ore sourced from Kumba, South Africa and Karnataka that feature high Iron content and fewer impurities. 16

PRODUCT DESCRIPTION

ARUN 500 D is available in sizes from 6mm to 40mm. A comparison chart on specifications of 500, 500 D and BIS standards is mentioned below.

BIS Specifications for Chemical Properties:

Chemical Properties (maximum)

Fe 500

Fe 500-D

Arun

500

D

(Typical Maximum Values) % Carbon

0.300 Max

0.250 Max

0.250 Max

% Carbon Equivalent (CE)

0.420 Max

0.420 Max

0.400 Max

% Sulphur (S)

0.055 Max

0.040 Max

0.035 Max

% Phosphorus (P)

0.055 Max

0.040 Max

0.035 Max

% Sulphur & Phosphorus (S&P)

0.105 Max

0.075 Max

0.070 Max

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% Nitrogen (PPM)

120 Max

120 Max

120 Max

BIS Specifications for Mechanical Properties: Mechanical Properties (minimum)

Tensile

Stress-

Fe 500

N/mm2 500

500

500 min

min

min

UTS N/mm2 545

565

min

min

1.08

1.08

min

min

12 min

16 min

UTS/YS Ratio

Ratio

Elongation

%

obtained

500 D (Typical

Maximum Values)

(N/mm2)

*As

Fe 500- Arun D

Yield Stress- YS (N/mm2)

Ultimate

Unit

in

90%

of

600 min

1.12 min

18 min

the

heats

Product Range: 

ARUN 500D rebars are available in the following sizes at the retail/distribution network across India: 6, 8, 10, 12, 16, 20 and 25 mm.

Applications: 

ARUN

500D is available for all reinforcement applications ranging from small

individual houses to large infrastructure projects. ARUN 500D is retailed through its extensive distribution network of dealers across India. Arun Steel sales offices or distributors can be contacted for the details of nearest authorized dealers present in any territory,

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ARUN TMT STEEL BAR Diameter

6mm

Brand

ARUN

Grade

Fe 500

Keeping track with the latest market development we are actively engaged in offering supreme quality of Arun Tmt Steel Bar

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ARUN TMT ROD

Get Latest Price Application

Manufacturing, Construction

Brand

ARUN

Grade

Fe 500 ARUN 500 D is available in sizes from 6mm to 40mm. A comparison chart on

specifications of 500, 500 D and BIS standards is mentioned below. BIS Specifications for Chemical Properties:Chemical Properties (maximum)Fe 500Fe 500-DArun 500 D

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CHAPTER - 2 ORGANIZATION CHART

Managing Director

HR / Manager

Purchasing

Other Staff

Production

Quality Control & Sales Department

Department Accounts Inspection Department Department

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CHAPTER – 3 DEPARTMENTS 3.1 PURCHASE DEPARTMENT RAW MATERIALS The raw materials used in production of TMT bars are of two types. They are 

Ingots



Billets.

Ingot The ingots have a structure similar to a trapezoid. It is like a cuboid structure but with a little taper included at the sides. This makes the area of one side of ingot bigger than the other end. These ingots are manufactured by casting process with either iron ore or iron scrap at a furnace plant. The iron ore or scrap metal is melted in the furnace and poured in vessels and after cooling the ingots are taken out of the vessels. The ratio metals used to make the ingots depend upon the order. There are 5 standard ratios that all ingot furnaces follow. Every ratio has a colour allotted to it and after manufacturing the ingot are marked with that color so that there is no margin of error. There are certain specifications given to the ingots. They have certain optimum sizes at which they are available. BASIC INGOT SIZE 

52 to 60 inches ingot length is used for TMT production



3 types based on the breadth and height of ingot



3⅟4 X 4⅟4 inches



3⅟2 X 4⅟2 inches



4 X 5 inches

Billets The ingots and billets are almost similar but billets have better finish and there is less chance of blow holes being present inside within. The final product obtained by using billets have better finish when compared to the ingots. Billets are more refined raw material which has less chance of blow holes and smooth surface finish. Billets have no standard color coding or a standard ratio.

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3.2 PRODUCTION AND MANUFACTURING DEPARTMENT Thermo mechanical processing, also known as thermo-mechanical treatment (TMT), is a metallurgical process that integrates work hardening and heat-treatment into a single process. A description of its application in rebar steel follows. The quenching process produces a high strength bar from inexpensive low carbon steel. The process quenches the surface layer of the bar, which pressurizes and deforms the crystal structure of intermediate layers, and simultaneously begins to temper the quenched layers using the heat from the bar's core. Steel billets 125mm² ("pencil ingots") are heated to approximately 1100°C in a reheat furnace. Then, they are progressively rolled to reduce the billets to the final size and shape of reinforcing bar. After the last rolling stand, the billet moves through a quench box. The quenching converts the billet's surface layer to martensite, and causes it to shrink. The shrinkage pressurizes the core, helping to form the correct crystal structures. The core remains hot, and austenitic. A microprocessor controls the water flow to the quench box, to manage the temperature difference through the cross-section of the bars. The correct temperature difference assures that all processes occur, and bars have the necessary mechanical properties. Billets are converted into the TMT Bars or QST Bars of high quality. The billets come in 100 mm to 110 mm square thickness and in required variable lengths. The billets at Govaan, have to pass the ultimate chemical test of the spectrometer and are the best producible raw material for TMT Bar or QST Bar production. Here is the steel bar production process where billets are converted into TMT Bars or QST Bars. Billets are unloaded from the transport vehicle and a qualitative analysis is done. The billets are then prepared to be fed to the re-heating furnace as per the quality and quantity of the TMT Bars or QST Bars required. The re-heating is the main process in TMR or QST Bar production. First, the billets are arranged on a charging platform. They are then pushed inside the re-heating furnace with the help of a pusher. In the furnace, the billets are heated at a very high temperature. The temperature is controlled by a thermocouple and an electronic digital temperature indicator. The heated billets are expelled by the ejector and then carried towards the roughing mill. A roughing mill is where the billets are reduced in diameter and elongated in length. The bar passes through several narrow passes, step by step reduces in diameter while

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elongating in length. This powerful roughing mill turns and rolls the pass at a high speed and forwards it to the next stage. In the next stage a front end and back end cutter cuts the ends of the elongated bar as they are weak in structure. In an Intermediate Mill, the bar is again turned and rolled and reduced in diameter as per the requirement. From the intermediate mill the bar passes to the continuous mill where it is further reduced in diameter as per the final requirement.

OVERALL MANUFACTURING PROCESS

TMT bar Manufacturing Process

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3.3 INSPECTION DEPARTMENT INSPECTION OF RAW MATERIALS The incoming material is inspected visually at the initial stage before it unloaded. The QA person tags yellow ribbon to the material which indicates the material is for Inspection. After inspection based on the C% the respected Ribbon colors will be issued. The stacked is done based on the color Code. The ingots are identified by lot number, color Code is issued based on the C%. Billets don’t have any standard color coding but they are tested and coding is done by the company itself. There is a heat number mentioned on Billets which is evidenced to the Chemical Composition in Supplier TC. Before feeding there is a procedure of inspection where there is a series of chemical tests done which determines the percentage of Carbon, Sulphur, Phosphorous and Manganese. 

The presence of carbon affects the strength where 30 is the maximum.

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The presence of sulphur and phosphorous gives more strength where the maximum allowable level is 0.060%

THE FOLLOWING ARE THE VARIOUS CHEMICAL TEST DONE ON THE RAW MATERIAL Determination of Carbon The sample is burned in a current of pure oxygen in presence of a suitable flux Combustion of the sample in a stream of oxygen thus converts all the carbon content into carbon dioxide . After removal of sulfurous gases by suitable absorbents, the carbon dioxide is collected into a specially jacketed burette along with the excess oxygen. The carbon dioxide is then absorbed in an alkali. On passing the excess oxygen back to the burette, the contraction in the volume is read against the burette scale, calibrated directly to the percentage of carbon.

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3.4 QUALITY CONTROL DEPARTMENT Quality control, or QC for short, is a process by which entities review the quality of all factors involved in production. ISO 9000 defines quality control as "A part of quality management focused on fulfilling quality requirements". This approach places an emphasis on three aspects: 

Elements such as controls, job management, defined and well managed processes, performance and integrity criteria, and identification of records

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Competence, such as knowledge, skills, experience, and qualifications

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Soft elements, such as personnel, integrity, confidence, organizational culture, motivation, team spirit, and quality relationships.

Controls include product inspection, where every product is examined visually, and often using a stereo microscope for fine detail before the product is sold into the external market. Inspectors will be provided with lists and descriptions of unacceptable product defects such as cracks or surface blemishes for example. The quality of the outputs is at risk if any of these three aspects is deficient in any way. Quality control emphasizes testing of products to uncover defects and reporting to management who make the decision to allow or deny product release, whereas quality assurance attempts to improve and stabilize production (and associated processes) to avoid, or at least minimize, issues which led to the defect(s) in the first place.

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3.5 SALES DEPARTMENT Selling is one of the major forms of communication and customer acquisition in a company's marketing promotion strategy. While the roles of a sales department vary somewhat by organization, its primary duties include identifying and contacting prospects, delivering sales presentations, closing deals and managing existing customer relationships. Selling is one of the major forms of communication and customer acquisition in a company's marketing promotion strategy. While the roles of a sales department vary somewhat by organization, its primary duties include identifying and contacting prospects, delivering sales presentations, closing deals and managing existing customer relationships. The heart of selling is delivering benefits-based presentations and closing deals. The first major hurdle is to build rapport with a prospect and make him comfortable. Effective sales staff uses interpersonal skills, conversational strategies and empathy to establish trust with customers, which contributes to long-term, profitable relationships. When reps make prospects comfortable and build trust, recommended solutions may appear more believable. Effective presentations centre on benefits that align with the needs of the buyer. A strong close that focuses on cementing the relationship and improving the prospect's situation or addressing a problem is a vital step to customer conversion. In highly competitive industries, it isn't uncommon that companies don't make a profit on initial sales. This fact points to the importance of customer satisfaction, and follow-up and follow-through service activities. The goal is to allow for the transition of a successful buying experience into repeat purchases, and eventually loyalty. Selling Power points out that database tools provide sales departments strong insights on the goals and interests of individual customers. These tools also allow staffs to track meeting notes and the buying behaviour for each customer.

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3.6 ACCOUNTS DEPARTMENT Accounts are the life blood of any company. Main purpose of preparing accounting statement is to as profit and loss during the specified period and shows the financial condition of the business. Accounting is the process of recording, classifying, summarizing and interpreting the financial information about the activities of a concern. The various account records are useful for a concern to take intelligent financial decision. The company maintains various books of accounts for recording financial transaction. The accounting is done using popular software. This department is in Charge of all the tax computation involved with any local purchase and sales made. They also take care of handling the company’s tax processing and provide proper accounting documents such as profit &loss account, balance sheet to the auditing authorities on demand. The financial year of the company starts from 1st April and ends with 31st March in every year. The accounts department also computes the weekly wages and monthly salaries for the employees of the company. FUNCTIONS OF ACCOUNTS DEPARTMENT 

Collection/ filling of all vouchers and bill receipts.

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Handle bank transactions & Handle debtors and creditors transaction.

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Prepare periodical documents to analyze business growth.

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Wages/ salary computations.

Finance is very important for any business no business enterprise can be started and run smoothly without finance. The accounts department comprises of the function like cash and bank transactions. JOURNAL A journal entry, in accounting, is a logging of transactions into accounting journal items. The journal entry can consist of several recordings, each of which is either a debit or a credit. The total of the debits must equal the total of the credits or the journal entry is said to be "unbalanced". Journal entries can record unique items or recurring items such as depreciation or bond amortization. In accounting software, journal entries are usually entered using a separate module from accounts payable, which typically has its own sub ledger that indirectly affects the general ledger. As a result, journal entries directly change the account balances on the general ledger.

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Some data commonly included in journal entries are: Journal entry number; batch number; type (recurring vs. nonrecurring); amount of money, name, auto-reversing; date; accounting period; and description. The accounts to be credited are indented. Typically, accounting software imposes strict limits on the number of characters in the description; a limit of about 30 characters is not uncommon. This allows all the data for a particular transaction in a journal entry to be displayed on one row. SUBSIDIARY BOOKS Most of the big companies are recording the business transactions in one journal and the posting of the same to the concerned ledger accounts are very difficult tasks and which require more clerical labor also. For avoiding such kind of difficulties most of the business organizations are subdividing the journal in to subsidiary journals or subsidiary books. Subsidiary books are those books of original entry in which similar nature of transactions are recording in a chronological order. Kinds of Subsidiary Books There are different kinds of subsidiary books which includes 

Purchase day book

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Sales day book

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Purchase returns book

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Sales returns book

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Bills receivable books

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Bills payable books

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Cash book

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CHAPTER - 4 CONCLUSION The study was undertaken in Arun industries. This study provides an insight into the working of Arun industries. The institutional training that I undergone in Arun Industries for a period of 15 days has gave me an opportunity to gain an insight in to functioning of various departments. I also came to know the working of separate quality assurance. I have learnt that they are treating their employees and the rewarding of employees and how to maintain a good report with the employees. I thank the company for providing me this opportunity for undergoing system study in their concern.

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