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CERTIFICATE
This is to certify that the present study DISTRIBUTION CHANNEL OF CSR FORGING PVT. LTD. has been carried out by Dheeraj Singhal, Batch 2009-12, under my direct supervision. I am glad to forward this for the partial fulfillment for his summer project of BBA.
TABLE OF CONTENTS
1) ACKNOWLEDGEMENT 2) EXECUTIVE SUMMARY 3) SCOPE OF STUDY 4) INTRODUCTION 5) DISTRIBUTION CHANNEL 6) SWOT ANALYSIS 7) RESEARCH METHODOLOGY 8) FINDINGS 9) RECOMMENDATIONS 10) CONCLUSION 11) BIBLIOGRAPHY
ACKNOWLEDGEMENT
I owe a great many thanks to a great many people who helped and supported me during the completion of my project. My deepest thanks to Lecturer, MS. PRIYANKA A. SINGH the Guide for my internship for guiding and correcting various documents of mine with attention and care. He has taken pain to go through the project and make necessary correction as and when needed. I express my thanks to the Director of, AMITY SCHOOL OF BUSINESS, NOIDA, for extending his support. I would also thank my Institution and my faculty members without whom this project would have been a distant reality. I also extend my heartfelt thanks to my family and well-wishers.
EXECUTIVE SUMMARY
The project aimed to assess the world and Indian market scenario of forging Industries for automobile and non-automobile components. The study was descriptive in nature and it tries to understand TVS Sun dram Fasteners potential to diversify its business into Non automobile industries like Aerospace sector, Earthmoving and Construction and Equipment sector and Heavy engineering sector. The Non Automobile industry will have a steady growth in the future and these markets require products manufactured with high end technology.
SCOPE OF STUDY
To study world and Indian market scenario of forging industries. To find out the technologies of other forging industries. To analyses the trend of non-automobile industry. To find components for non-automobile industry. To Identify end use of the other forging components. To find out the potential customers for the company.
INTRODUCTION
CSR Forging Private Limited is a manufacturer and supplier of critical application Cold Forged Fasteners /Components. Its aim is to include virtually every global automotive OEM and Tier I supplier. CSR is simultaneously implementing capacity expansion program, which on completion will enable it to cater larger market opportunities even more aggressively and capture larger market share. Work force Work-force of CSR includes highly committed and experienced personnel, who are present in the fasteners industry from last 15 years.
Our Strengths We believe that along with dedication and commitment of each and every member of CSR towards understanding and fulfilling the customer needs, the following strengths would help us to cater large customer base: 1. Capabilities of wide cold forged product profile across Auto & Non Auto segments. 2. Full Service Supply Capability. 3. ISO 9001:2008 certified from TUV Nord. 4. State-of-art facilities. 5. Cost efficiency. Participation in Fastener Fair, India, Mumbai 16-17 April, 2011
CSR offers its products and services for wide range of components (diameter ranging 3-16 mm), such as Hex. Head Bolts, Socket Head Bolts, Flange Bolts, Projection Rivets, Studs, etc.
Quality Policy
We at CSR Forging Pvt. Ltd. are committed to enhance our customer satisfaction by delivery of quality products as per customer schedule and requirement. We are further committed to continually improve our Quality Management System & adhere to international quality standards by training our workforce, improving our suppliers and inducting latest technology to exceed our customer expectations. Forging is one of the oldest known metalworking processes. Traditionally, forging was performed by a smith using hammer and anvil, and though the use of water power in the production and working of iron dates to the 12th century, the hammer and anvil are not obsolete. The smithy or forge has evolved over centuries to become a facility with engineered processes, production equipment, tooling, raw materials and products to meet the demands of modern industry. In modern times, industrial forging is done either with presses or with hammers powered by compressed air, electricity, hydraulics or steam. These hammers may have reciprocating weights in the thousands of pounds. Smaller power hammers, 500 lb (230 kg) or less reciprocating weight, and hydraulic presses are common in art smithies as well. Some steam hammers remain in use, but they became obsolete with the availability of the other, more convenient, power sources.
INDUSTRY PROFILE
The composition of the Indian forging industry can be categorized into four sectors - large, medium, small and tiny. The Indian forging industry has evolved as a major contributor to the manufacturing sector of the Indian economy. The key demand driver is the automobile industry. The other industries that use forgings include Railways, Defense, Oil Exploration, Cement, Steel Industry and other engineering Industries. 65per cent of the total forging production is used in Automobile sector
Processes
A cross-section of a forged connecting rod that has been etched to show the grain flow. There are many different kinds of forging processes available, however they can be grouped into three main classes: Drawn out: length increases, cross-section decreases Upset: length decreases, cross-section increases Squeezed in closed compression dies: produces multidirectional flow Common forging processes include: roll forging, swaging, cogging, open-die forging, impression-die forging, press forging, automatic hot forging and upsetting.
Temperature
All of the following forging processes can be performed at various temperatures, however they are generally classified by whether the metal temperature is above or below the recrystallization temperature. If the temperature is above the material's recrystallization temperature it is deemed hot forging; if the temperature is below the material's recrystallization temperature but above 310ths of the recrystallization temperature (on an absolute scale) it is deemed warm forging; if below 310ths of the recrystallization temperature (usually room temperature) then it is deemed cold forging. The main advantage of hot forging is that as the metal is deformed work hardening effects are negated by the recrystallization process. Cold forging typically results in work hardening of the piece.
Drop forging
Drop forging is a forging process where a hammer is raised up and then "dropped" onto the work piece to deform it according to the shape of the die. There are two types of drop forging: open-die drop forging and closed-die drop forging. As the names imply, the difference is in the shape of the die, with the former not fully enclosing the work piece, while the latter does.
Cold Forging
Cold Forging is a cold working process where the material is squeezed into a die and the finished parts assume the shape of the die. This process is also known as Cold Heading. Bar stock or wire stock is fed into a die and is squeezed into the closed die. The resultant part is a nail, a bolt or a screw with the head. A subsequent cold heading operation forms other features on the head such as knurls or slots for screw drivers etc. the shaping rod stock by forming the head as in rivets, bolts, nails and other fasteners. This process can be highly automated and parts can be made economically.
Most forging is done as hot work, at temperatures up to 2300 degrees F, however, a variation of impression die forging is cold forging. Cold forging encompasses many processes -- bending, cold drawing, cold heading, coining, extrusions and more, to yield a diverse range of part shapes. The temperature of metals being cold forged may range from room temperature to several hundred Degrees.
Process Operations Graphical depiction of process steps. Process Capabilities Cold forging encompasses many processes bending, cold drawing, cold heading, coining, extrusion, punching, thread rolling and more to yield a diverse range of part shapes. These include various shaft-like components, cup-shaped geometry's, hollow parts with stems and shafts, all kinds of upset (headed) and bent configurations, as well as combinations. Most recently, parts with radial flow like round configurations with center flanges, rectangular parts, and non-axisymmetric parts with 3- and 6-fold symmetry have been produced by warm extrusion. With cold forging of steel rod, wire, or bar, shaft-like parts with 3-plane bends and headed design features are not uncommon. Typical parts are most cost-effective in the range of 10 lbs. or less; symmetrical parts up to 7 lbs. readily lend themselves to automated processing. Material options range from lower-alloy and carbon steels to 300 and 400 series stainless, selected aluminum alloys, brass and bronze. There are times when warm forging practices are selected over cold forging especially for higher carbon grades of steel or where in-process anneals can be eliminated. Often chosen for integral design features such as built-in flanges and bosses, cold forgings are frequently used in automotive steering and suspension parts, antilock-braking systems, hardware, defense components, and other applications where high strength, close tolerances and volume production make them an economical choice. In the process, a chemically lubricated bar slug is forced into a closed die under extreme pressure. The unheated metal thus flows into the desired shape. As shown, forward extrusion involves steel flow in the direction of the ram force. It is used when the diameter of the bar is to be decreased and the length increased. Backward extrusion, where the metal flows opposite to the ram force, generates hollow parts. In upsetting, the metal flows at right angles to the ram force, increasing diameter and reducing length.
1. Forward extrusion reduces slug diameter and increases its length to produce parts such as stepped shafts and cylinders.
2. In backward extrusion, the steel flows back and around the descending punch to form cup-shaped pieces.
3. Upsetting, or heading, a common technique for making fasteners, gathers steel in the head and other sections along the length of the part.
Up to 1150 degrees Celsius for Steel 360 to 520 degrees Celsius for Al-Alloys 700 to 800 degrees Celsius for Cu-Alloys
During hot forging, the temperature reaches above the recrystallization point of the metal. This kind of extreme heat is necessary in avoiding strain hardening of the metal during deformation. In order to prevent the oxidation of certain metals, like super alloys, a type of hot forging called isothermal forging is a good choice. In isothermal forging, the metal deformation occurs within a highly controlled atmosphere, similar to that of a vacuum.
Traditionally, manufacturers choose hotforging for the fabrication of parts that have a greater influence in the technical arena. Hot forging is also recommended for the deformation of metal that features a high formability ratio. Other considerations for hot forging include: 1. Production of discrete parts 2. Low to medium accuracy 3. Scale Formation 4. Low stresses or low work hardening 5. Homorgenized grain structure 6. Increased ductility 7. Eliminiation of chemical incongruities Possible disadvantages of hot forging include:
Less precise tolerances Possible warping of the material during the cooling process Varying metal grain structure Possible reactions between the surrounding atmosphere and the metal
Cold Forging Cold forging deforms metal while it is below its recrystallization point. Cold forging is generally preferred when the metal is already a soft metal, like aluminum. This process is usually less expensive than hot forging and the end product requires little, if any, finishing work. Sometimes, when aluminum is cold forged into a desired shape, it is heat treated to strengthen the piece. This is called "tempering." The Cold Forging Process Despite the word "cold," cold forging actually occurs at or near room temperature. The most common metals in cold forging applications are usually standard or carbon alloy steels. One of the most common types of cold forging is a process called impression-die forging, where the metal is placed into a die that is attached to an anvil. The metal is then hit by a descending hammer and forced into the die. Depending on the product, the hammer may actually be dropped on the metal numerous times in a very rapid sequence.
Cold Forging Considerations Manufacturers may choose cold forging over hot forging for a number of reasonssince cold forged parts require very little or no finishing work, that step of the fabrication process is often dispensable, which saves money. Cold forging is also less susceptible to contamination problems, and the final component features a better overall surface finish. Other benefits of cold forging include:
Easier to impart directional properties Improved interchangeability Improved reproducibility Increased dimensional control Handles high stress and high die loads Produces net shape or near-net shape parts
Easier to impart directional properties Improved interchangeability Improved reproducibility Increased dimensional control Handles high stress and high die loads Produces net shape or near-net shape parts The metal surfaces must be clean and free of scale before forging occurs The metal is less ductile Residual stress may occur Heavier and more powerful equipment is needed Stronger tooling is required
DISTRIBUTION CHANNEL
Product distribution (or place) is one of the four elements of the marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user. The other three parts of the marketing mix are product, pricing, and promotion.
Channels
A number of alternative 'channels' of distribution may be available: Distributor, who sells to retailers via direct marketing, or brokers can also be used, Retailer (also called dealer or reseller), who sells to end customers Direct Distribution (Direct Marketing), where an organization sells its products directly to the end customer. For example in case of online purchases (Internet Marketing and E-commerce) there will be the seller and customer. For this the seller and the customer may depend on various shipping providers.
hotels and car rental services. In addition, there has been a significant increase in retail outlets for the service sector. Outlets such as estate agencies and building society offices are crowding out traditional grocers from major shopping areas.
Channel decisions
Channel Sales is nothing but a chain for to market a product through different sources. Channel strategy Gravity & adventure Push and Pull strategy Product (or service) Cost Consumer location
Managerial concerns
The channel decision is very important. In theory at least, there is a form of trade-off: the cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer goods manufacturers could never justify the cost of selling direct to their consumers, except by mail order. Many suppliers seem to assume that once their product has been sold into the channel, into the beginning of the distribution chain, their job is finished. Yet that distribution chain is merely assuming a part of the supplier's responsibility; and, if they have any aspirations to be market-oriented, their job should really be extended to managing all the processes involved in that chain, until the product or service arrives with the end-user. This may involve a number of decisions on the part of the supplier: Channel membership Channel motivation Monitoring and managing channels
Channel motivation
It is difficult enough to motivate direct employees to provide the necessary sales and service support. Motivating the owners and employees of the independent organizations in a distribution chain requires even greater effort. There are many devices for achieving such motivation. Perhaps the most usual is `incentive': the supplier offers a better margin, to tempt the owners in the channel to push the product rather than its competitors; or compensation is offered to the distributors' sales personnel, so that they are tempted to push the product. Julian Dent defines this incentive as a Channel Value Proposition or business case, with which the supplier sells the channel member on the commercial merits of doing business together. He describes this as selling business models not products.
In the figure above, Channel 1 is called a "direct-marketing" channel, since it has no intermediary levels. In this case the manufacturer sells directly to customers. An example of a direct marketing channel would be a factory outlet store. Many holiday companies also market direct to consumers, bypassing a traditional retail intermediary - the travel agent. The remaining channels are "indirect-marketing channels". Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. The consumer electrical goods market in the UK is typical of this arrangement whereby producers such as Sony, Panasonic, Canon etc. sell their goods directly to large retailers such as Comet, Dixons and Currys which then sell the goods to the final consumers.
Channel 3 contains two intermediary levels - a wholesaler and a retailer. A wholesaler typically buys and stores large quantities of several producers goods and then breaks into the bulk deliveries to supply retailers with smaller quantities. For small retailers with limited order quantities, the use of wholesalers makes economic sense. This arrangement tends to work best where the retail channel is fragmented - i.e. not dominated by a small number of large, powerful retailers who have an incentive to cut out the wholesaler. A good example of this channel arrangement in the UK is the distribution of drugs. THE COMPANY USES ZERO LEVEL DISTRIBUTION CHANNEL AS COMPANY SUPPLY IT PRODUCT DIRECTLY TO THE CUSTOMER ACCORDING TO THEIR NEED AND REQUIREMENTS.
SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. We believe that along with dedication and commitment of each and every member of CSR towards understanding and fulfilling the customer needs, the following strengths would help us to cater large customer base.
STRENGTHS Capabilities of wide cold forged product profile across Auto & Non-Auto segments. Full Service Supply Capability. ISO 9001:2008 certified from TUV Nord. State-of-art facilities. Cost efficiency.
WEAKNESSES Retreatment plant is not there with the company to re-utilize the resources. Company Machinery is not able to meet up the requirements by the company as setup cost of new machinery involved.
OPPORTUNITIES Target new region where industries are more. Introducing new plants in more parts of the world to target more consumers.
THREATS Threat of entrant of new competitors in the market. Introduction of new technology and its set up cost.
RESEARCH METHODOLOGY
The data needed to this project report is collected by secondary data only. This secondary data is fully equivalent to primary data. The analysis of study was achieved by using simple statistical tools like trend analysis and displayed by line graphs.
Considerations for the research defined by CSR FORGING PVT. LTD. The products should of hot forging or cold forging. The components should not weight more than 4 kilograms. The product dimension should be less than 60 mm. The components should be manufactured from less than 1000 pressure ton machines.
FINDINGS
The US represents the biggest aerospace market that the company can try to target. Growth in the last 4 years has been 41.3%. Types of aircrafts -Civil aircraft and Military aircraft. It is estimated that by the year 2027, the worlds airlines will take delivery of 29,400 civil airplanes with a total value of US$ 3.2 Trillion to keep pace with the growing demand for air travel. The Chinese aerospace sector ranks among the worlds most dynamic sector due to the massive investment injected by the country. In future, developing economies such as China, Mexico and Brazil are expected to emerge as huge marketplace for aerospace products.
RECOMMENDATION
The company should enter into non automobile sectors like 1. Aerospace industry 2.Heavy Engineering industry 3.Earthmoving and Construction Equipment Industry The companys domestic sales and export business would grow if start producing aerospace components. Entering Heavy Engineering industry and Earthmoving and Construction Equipment Industry would increase the companys revenue. The company should install machines which are advance in technology to be competitive in non-automobile Industry. The company should invest more in research and development activities
CONCLUSION
The company produces the product and services according to the sample that the customer likes and after that the product is sent for manufacturing. The company main motive is to satisfy the customer with their product and services so that they could have a good relationship with the customer. CSR Forging Private Limited is a manufacturer and supplier of critical application Cold Forged Fasteners /Components. Its aim is to include virtually every global automotive OEM and Tier I supplier. CSR is simultaneously implementing capacity expansion program, which on completion will enable it to cater larger market opportunities even more aggressively and capture larger market share. THE COMPANY USES ZERO LEVEL DISTRIBUTION CHANNEL AS COMPANY SUPPLY IT PRODUCT DIRECTLY TO THE CUSTOMER ACCORDING TO THEIR NEED AND REQUIREMENTS.
BIBLIOGRAPHY
Degarmo, E. Paul; Black, J T.; Kohser, Ronald A. (2003), Materials and Processes in Manufacturing (9th ed.), Wiley, ISBN 0-47165653-4. http://www.csrforging.com http://en.wikipedia.org/wiki/Forging http://www.google.co.in/