PISTON RING 1. INTRODUCTION. MONTH AND YEAR : May, 2014 OF PREPARATION. Investigator (Mechanical)

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1 PISTON RING PRODUCT CODE : (NIC Code) QUALITY AND STANDARDS : IS: & IS: 8422 for IC Engines PRODUCTION CAPACITY : 45,000 set of different sizes (per annum) MONTH AND YEAR : May, 2014 OF PREPARATION PREPARED BY : Sh. Sunil Arora Investigator (Mechanical) 1. INTRODUCTION Piston ring is one of the most important part of the Diesel/Petrol engines. It is an open-ended ring that fits into a groove on the outer diameter of a piston in a reciprocating engine such as an internal combustion engine or steam engine. The principal function of the piston rings is to form a seal between the combustion chamber and the crankcase of the engine. The goal is to prevent combustion gases from passing into the crankcase and oil from passing into the combustion chamber. The three main functions of piston rings in reciprocating engines are: 1. Sealing the combustion/expansion chamber. 2. Supporting heat transfer from the piston to the cylinder wall. 3. Regulating engine oil consumption. During the compression and power strokes, the compression ring seals the combustion gases and prevents blow-by. Although blow-by is not completely eliminated it is kept to an acceptable limit. During the compression and exhaust strokes the cylinder walls are lubricated with oil by throw off from the connecting rod bearings. Excess oil is wiped off by the piston rings. Not only does the oil ring have the responsibility of wiping the excess oil off the cylinder walls, but the job is also shared by all of the rings, leaving a fine layer of oil on the wall to provide lubrication for the following ring. As rings wear, the ability to perform these functions is decreased resulting in oil consumption and blow-by. When this happens it is time for a new set of rings

2 Piston Ring 2. MARKET POTENTIAL Piston ring is the one of the most replaceable part of the diesel/petrol engines. It has great demand in the replaceable market as well as in new engines market. For the last few years there is noticeable increase in the automobile industry, which is the vast market for it. Piston rings are not only used in the automobile industry but also used in 1. Railway Engines 2. Compressors 3. Steam Hammers 4. Cars 5. Retaining Rings 6. Pumps 7. Industrial Applications So, by maintaining quality and using proper marketing techniques there is always a great market of this product. 3. BASIS AND PRESUMPTIONS i. The information supplied is based on a standard type of manufacturing activity utilizing conventional techniques of production and optimum level of performance. ii. iii. iv. 75% of the envisaged capacity is taken as efficiency on single working shift. Labour and wages are required as per present circumstances. The cost in respect of land & building, machine & equipment, raw material & selling price of finished product etc are those generally obtained at the time of preparation of project profile and may vary depending upon the location, make and for variety of reasons. v. The interest on total capital has been 14% p.a -189-

3 Mechanical Division 4. IMPLEMENTATION SCHEDULE S.No. Activity Duration 1 Selection of site & Preparation of bankable project report 3 months 2 Filing of EM part-i with GM, DIC 3 days 3 Submission of project report & sanction of finance from financial institution/ Bank 4 months 4 Procurement of Plant, machinery & equipment 1 month 5 Commissioning and erection of Plant & machinery and trial run 6 Purchase of raw material & recruitment of labour & staff 1 months 1 month 7 Start of commercial production Immediately as soon as above activities completed 8 Filing of EM Part-II with GM, DIC Immediately after the Enterprises has gone into regular production 5. TECHNICAL ASPECTS 5.1. Process of Manufacturing Piston rings are generally made up of cast iron. The blanks of cast rings of required size and desired properties are procured from the local foundries. After that blanks are cleaned and get ground. Then the blanks are undergone through various processes like facing, rough diameter, rough bore, finish diameter & finish bore. The rings are generally machined to the required shape by means of turning, a process in which the ring blank, already axially ground, is copy turned on the inside and outside diameters. After a segment equivalent to the free gap is cut from the ring it assumes the free shape that will give it the required radial pressure distribution when fitted into the cylinder. Piston Ring Coatings: After the completion of machining process the following surface treatments for piston rings are principally designed to provide corrosion protection for storage, enhance appearance and improve running. Bronze Coating, Ceramic Chrome Plating, Chrome Plating, Copper Plating, Molybdenum, Phosphate Coating, Plasma Sprayed Coating & Tin Coating are a few to name Production Capacity Approximately 45,000 set of different sizes per year

4 5.3. Quality Control and Standards Piston Ring The procured blanks castings should be checked very carefully as per given requirement (size, grade etc). This is the very first step in quality control. The product should be monitored after completion of each stage so that chance of rejection at the end is eliminated. Piston rings should be manufactured as per IS : & IS: 8422 for IC engines. The entire operation of surface treatment/ coating should be closely controlled. For the inspection process proper calibrated gauges should be used Pollution Control As this unit does not comes under heavy polluted industry, although No Objection Certificate from pollution control board should be taken Power Consumption As this is a small unit it has less power consumption, which is approx. 15H.P 6. FINANCIAL ASPECT 6.1. Fixed Capital Land & Building: 400 sq. mtrs land with covered area of 300 sq. mtrs on rent Machinery and Equipments Sl. No. Description Qty Price (Rs.) 1 Lathe machine, 1800 mm bed with 3 H.P motor 1 3,50,000 2 Lathe machine, 900 mm bed with 2 H.P motor 1 2,80,000 3 Face grinder with special attachment, 4 H.P motor 1 70,000 4 Bench drill machine.12mm capacity 1 20,000 5 Bench grinder,250mm wheel dia,1h.p motor 1 15,000 6 Gauges, tools & other equipments L.S 50,000 Total 7,85,000 Installation & electrification 10% of cost of machine 78,500 Furniture & office equipment 20,000 Total 8,83,

5 Mechanical Division 6.2. Working Capital (per month) Salary & Wages S. No. Designation No. Salary (Rs. per month) Total (Rs.) 1 Supervisor ,000 2 Skilled worker ,000 3 Unskilled worker ,000 4 Peon ,000 5 Watchman ,000 Total 41,000 Add 15% perks 6,150 Total 47, Raw Material S.No. Description Qty. Rs. 1 Piston ring Rs.55/kg 1300 kg 71, Utilities (Rs.) 1 Electricity 15 Kw/hr. Rs.7 per unit 21,000 2 Water 1,000 Total 22, Other Contingent Expenses Sr. No. Description Rs. 1 Stationary 4,000 2 Transport charges 10,000 3 Telephone 2,000 4 Maintenance 4,000 5 Insurance 3,000 6 Miscellaneous 5,000 7 Rent 10,000 Total 38, Total Recurring Expenditure (per month) 1. Salaries & Wages 47, Raw materials 71, Utilities 22, Other Contingent Expenses 38,000 Total 1,78,650 Total Working Capital for 3 months Rs. 5,35,950/- or say Rs. 5,36,000/

6 Piston Ring 6.3. Total Capital Investment Fixed capital 8,83,500 Working capital for 3 months 5,36,000 Total 14,19, FINANCIAL ANALYSIS 7.1. Cost of Production (per annum) Total recurring cost per year 21,43,800 Depreciation on machinery & 10% 78,500 Depreciation on office 20% 4,000 Depreciation on Tools, Fixture etc.@25% 12,500 Interest on total 14% 1,98,730 Total cost of production 24,37, Turnover (per annum) Qty. Rate /set Value (Rs.) sets of piston Rs. 65/- 29,25, Net Profit (per annum) Turnover cost of production Rs. 29,25,000 24,37,530 Rs. 4,87,470/ Net Profit Ratio Net profit per year Turnover per year 4,87,470 29,25, % 7.5. Rate of Return Net profit per year Total Capital Investment 4,87,470 14,19, % -193-

7 Mechanical Division 7.6. Break-even Point Fixed cost per annum (Rs.) Depreciation on machinery& 78,500 Depreciation on office 4,000 Rent of Building 1,20,000 Interest on Total Investment 1,98,730 Insurance per annum 36,000 40% of Salaries 2,26,320 40% of other contingent expenses (excluding rent & insurance) 1,20,000 Total 7,96,050 B.E.P Fixed Cost Fixed Cost + Net Profit 7,96,050 7,96, ,87, % Addresses of Machinery Suppliers :- 1. Emtex Machinery Private Limited: No. 4-E, Vandhana Building, No. 11, Tolstoy Marg, Connaught Place, Delhi R. K. Foundry And Engineering Works: G.. T. Road, Batala Accurate Auto Lathes Private Limited: Dugri Road, Near Canal Bridge, Ludhiana Memco Machinery Mart, No. 4094, 1st Floor, Kuch Dilwali Singh, Ajmeri Gate, Delhi