Table of Contents

1. 2.

EXECUTIVE SUMMARY .............................................................................. 4 INTRODUCTION TO PROJECT .................................................................... 5 2.1 Introduction to TTS panel line: ..................................................................... 5 2.2 Processes done for plates at TTS panel line: ............................................... 15 2.3 Schedule of the project work: ...................................................................... 29

3.

LITERATURE REVIEW AND STUDY OF INDUSTRY ........................... 30 3.1 Introduction to Costing ................................................................................ 30 3.2 Introduction to Shipping Industry ............................................................... 33 3.2.1 History of shipping industry ................................................................. 33 3.2.2 Industrial shipping Carriers:.................................................................. 33 3.3 Introduction to PSL ..................................................................................... 36 3.3.1 Stake Holders ........................................................................................ 37 3.3.2 Association With World Leading Groups............................................. 37 3.3.3 Business strategy ................................................................................... 39 3.3.4 Infrastructure ......................................................................................... 41 3.3.5 Products of PSL..................................................................................... 44

4. 5. 6.

OBJECTIVE OF THE PROJECT .................................................................. 46 RESEARCH METHODOLOGY ................................................................... 47 DATA ANALYSIS AND INTERPRETATION ........................................... 48 6.1 Labour Cost ................................................................................................. 48 6.2 Material Cost ............................................................................................... 53 6.3 Maintenance Cost ........................................................................................ 59
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6.4 Depreciation Cost ........................................................................................ 60 7. 8. 9. CONCLUSIONS ............................................................................................ 69 RECOMMENDATIONS................................................................................ 70 REFERENCES ............................................................................................... 72

List of Figures
figure 1: Project Work Flow Diagram ........................................................................ 28 Figure 2: Schedule Of Project Work ........................................................................... 29 Figure 3: Production Summary ................................................................................... 49 Figure 4: Variable Costs.............................................................................................. 50 Figure 5: Total Cost..................................................................................................... 51 Figure 6: Shelf Stacking .............................................................................................. 65

List of Tables
Table 1: Employee Distribution .................................................................................. 48 Table 2: Table Of Total Production, Sub Assembly And Block Fitting ..................... 49 Table 3: Variable Cast Data ........................................................................................ 50 Table 4: Total Cost Data ............................................................................................. 51 Table 5: Labour Cost ................................................................................................... 52 Table 6: Cost Of Welding Material ............................................................................. 56 Table 7: Consumption Of Gases By Weight ............................................................... 56 Table 8: Cost Of Gas Consumption ............................................................................ 57 Table 9: Material Cost ................................................................................................. 57 Table 10: Reduction In Labour Cost ........................................................................... 70 Table 11: Reduction In Material Cost ......................................................................... 71

1.

EXECUTIVE SUMMARY

TTS(Total Transfer System) panel line of Pipavav Shipyard Limited is one of the best production lines all over the world among shipyard industries. The TTS panel line contains following stations for different operations: Tack Welding Station One Side Welding Station Mobile Stiffener Gentry Fillet Welding Gentry Web Mounting Gentry Web Welding Service Gentry Load Out Station The first task is to calculate the costs regarding TTS panel line. Labour cost Material cost Maintenance cost Depreciation cost The second task is to find the ways to reduce these costs by analysing the working conditions, workers accuracy and efficiency, mistakes, improper practice, inappropriate material handling, workers efforts to complete the work, leakage, corrosion, etc. And then get insights and put efforts to reduce cost as much as possible.

2. INTRODUCTION TO PROJECT
The project is all about costing. The intention of company for allocating this project is to reduce the cost of one of their well established production line (TTS panel line) which is one of the best production lines among the shipyard industries all over the world.

2.1

Introduction to TTS panel line:

 Width of the Bay-1(TTS panel line) is 42.1m and height of side A is 23.6m and that of B is 35m. After shot blasting, Plates for Flat blocks come through roller conveyor from Section A. Plates of sizes around 10m are joined by MAG welding and will get width of around 20 to 22m which used in TTS panel line. There are two CNC Cutting Machines in Side A of Bay-1. One is Gas cutting and the other one is Plasma cutting. Gas cutting is used for plate cutting where Plasma Cutting is used for stiffeners cutting. Plates from roller conveyor to the CNC Cutting Machine move by EOT (Electrical Overheat Transportation) 20T crane whose length is42.1 m. Stiffeners from CNC Cutting Machine bed an be moved by 5T capacity crane whose length is 15m.
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 Plates of 20 to 22m length and with different width put on the tack welding station. Similar plate is tack welded on TWS. Because of that whole plate width is become 20 to 22m. From TWS, TTS Panel Line starts and there other 5 welding machines. All are listed below: i. ii. iii. iv. v. vi. Tack Welding Station [T.W.S] One Side Welding Station [O.S.W.S] Mobile Stiffener Gentry [M.S.G] Fillet Welding Gentry [F.W.G] Web Mounting Gentry [W.M.G] Web Welding Service Gentry 1&2 [W.W.S.G]

There are two sub-assembly area in Bay-1. Stiffeners made in sub-assembly area of Bay-1-A and Frames and Brackets are made in sub-assembly area of Bay-1-B. When base plate reaches at MSG Station, Stiffeners joined to the plate by tack welding and then full welding done on FWG. Frames and Bracket tack welded to the plate at WMG and then full welding done on WWSG. At the end of the Panel Line Load Out Station (LOS) is provided which raise and hold whole job at certain height so overhead work can be done and also transportation through Commeto become easy. After FWG, Block becomes very heavy and so the transportation of it with the of cranes is not possible so Ultra Heavy Lifter is provided which raise little bit and then moves it till the LOS. Both side of shed, pipelines of CO2, O2, Air and water are provided. There are two 50T + 25T cranes which helps to mount frames on the base plate.

1. Tack Welding Station:

With the help of EOT of 50T crane, plate can be kept on guide beams. Range of TWS is 16m in the direction of production. With the help of hydraulic magnet manipulator, plate can be centered. Magnetic manipulator can be controlled by three controllers, two are given at trolley and one at one side of the panel line near to station which can also control transport chains. Alignment of the plate can be done by changing position of Wedge. (Forward side is essential) Plate moves above guide line with the help of rollers. Alignment between two plates, joining of runner plates and at last tack of welding can be accomplished on this station. Plate is mounted on the beam and two hydraulic jaws exert pressure on the plate. With the help of toggle jack, tighten between two contacting faces can be done which result very accurate tack welding. Then MAG welding is done manually. At the end of the process, Tack welded plates holds by C-Clamp which moves whole plate towards next station (OSWS) with the help of transport chain.

2. One Side Welding Station:

Concept of OSWS is same as submerged arc welding. Some changes are there which increase the efficiency and decrease the weld time. Range of OSWS is 29m in the direction of production. In this welding process, full welding is carried out both sides on tack welded root line without turning it. Three torches moves simultaneously over the weld line. Laser is set before torches to detect its direction. Laser is kept on the edge of plate because groove line is not straight.
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 Fusion carried out by first torch because it is inclined negative side to the vertical, fill of deposition of metal carried by second and last torch finishes the weld line. There are two type of flux. 1. Bottom flux 2. Top flux Bottom flux (NSH-1RM) is speeded over copper bar. Top flux (NSH-50 M)is speeded continuously after the torch(only first and second) Electrode has 4.8mm diameter. Electrode is MS but copper coated, to reduce the contamination of atmosphere. Because of fusion work done by the first torch, consumption rate is also high compare to other two wire spools. Consumption are 12.5 Kg/m, 5.5 Kg/m, 3.5 Kg/m. This whole process done just in 40min, but if the same work done manually then it takes two to three days. The purpose behind using copper plate is more heat absorption, produce during welding so the metal with low melting point cannot work efficiently. Water cooling system is provided below copper bar is to resists the change in shape of copper by heating. Sensor is provided before the torches which guide whole machine. In this process, very less chance of defects. Defects at start and end position can be terminate by runner plate. Filler wire rod tip must cut up to certain length because slag of previous welding coated on it and that would not emerge arc. Control of voltage and current is needed of torches. Required changes in them of 1st torch identify by sound and smoke where that of 2 nd and 3rd torch can be identify by removing slag.

 Current and voltage can be controlled By ESAB CONROLLER. Leading or 1 st torch works on DC where other two works on AC. The reason behind using DC is high deposition can be occurred. Voltage helps to melt the metal and current control the deposition of filler wire. As the root face increases current level also increases. As the gap is increases, value of voltage and current must be decreases. At the end of the three torches, flux collector also moves with them which stored in the tank so reuse of bottom flux can be possible.

3. Mobile Stiffener Gentry:

After welding two plates, stiffeners can be mount on the base plate and it is done at MSG. Range of MSG is 25m in the direction of production. L-bar from Bay-3 and T-bar from sub-assembly area of Bay-1-A mounted on the base plate according to marking based on production drawing after OSWS. Stiffeners mounted at the inside part of the plate and that can be identify by edge V-S V-N

42 magnets in two lines take the L-bar or T-bar from the bracket and then kept them on the base plate at right place. Movement of series of magnets controlled hydraulically by beam movement of upward and downward. Before taking any T-bar or L-bar, it must be parallel to the marking line otherwise beam must be aligned up to certain degree. Gentry can move100mm perpendicular to the direction of production line. 50mm movement of both column respect to each other.
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 After setting stiffeners, pressure exerted on it by hydraulic jaw downward and free four magnets at each trolley stick with plate and move it in upward direction so correct tightening produce and chance of space. After right angle alignment of the stiffeners on the plate, tack welding can be done.

4. Fillet Welding Gentry: Welding concept is same as MAG. Range of FWG is 16m in the direction of the production. Full welding of tack welded stiffeners can be done on this station. There are two trolleys on the beam which reciprocates in the perpendicular direction of the production direction. Each trolley has two wagons and each wagon has four torches (Two lead torches and two tail torches). So total 16 torches can weld the stiffeners simultaneously. Because of four torches work simultaneously, accurate deposition take place. CO2 pressure : 3 psi and Air Pressure : 7.5 psi Diameter of filler wire is 1.6mm. As the thickness increase value of voltage and ampere must be increase. Sensor is provided which automatically stops the machine when that is any hurdles. Long path welding can be done. High speed and high deposition even at high speed. Distance between torch and leg remain same till the welding ends. Undercut, pinhole and porosity occur seldom. Overcut can be eliminating by grinding and welding manually. 200Kg of filler wire drum continuously feed the wire. Generally web thickness 12 to 15mm so weld pull thickness is around 7. Total length of FWG is 26.5m, width is 8.5m and height is 6.5m
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 Beam can move downward till 2.4m and trolley can move downward up to 0.9m. Current range is from 335 to 550A and Voltage is from 32 to 36v. ESAB LAF 635 DC is given to each torch and these sources are mounted at either end of the gentry. Plate material received at the line shall have been prepared to a tolerance corresponding to DIN8523 (NS-ISO-8206).

5. Web Mounting Gentry: With the help of MAG tack is made to the frames. Sub-assembly area of Bay-1-B, prepares brackets and frames. In the sub-assembly area, stiffeners mounted on the metal plate which increases its strength. And that whole unit assembly called frame or bracket. With the help of EOT 50T + 25T capacity cranes all those frames tack welded on the base plate and on T-bars. Some frames are mounted at some angle which is measured by angle comparator. Sometimes gap between frame and stiffeners fill up by collar plate for water tight purpose.

6. Web Welding Service Gentry:

Full welding of frames is done on WWSG 1 & 2. It same as MAG only the difference is Spools are hanged to the gentry so movement of spool become easy. Porosity, Blow holes, Pin holes and Undercut are main defects that can be found after full welding.

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 According to requirement higher strength, two pass welding done and for that bevel is made.

7. Hydraulic Magnet Manipulator:

It is used for alignment of plates and hold the plates in the right position at TWS. Number of manipulators are 3, Hydraulic drive, lift, pneumatic.

8. Fixed Rollers:

Width : 50mm, Diameter : 200mm It is used for transport block in one direction. Guide irons are attached to the rollers to prevent panels from stalling during transport.

9. Transport Chains: It used for transportation in both direction. Chain is kept in the steel channel for proper guide and attached with motor Number of transport chains per station is two. It can cover or convey from 9.5m to 31m. Its conveying speed is 6m/min.

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10. Disc Roller: Width: 20mm, Diameter: 250. It is provided where work of plate would be done. It is designed so that disc can be replaced if it get damaged. It is also mounted on the cylindrical pipes which called pit disc roller.

11. Swivel Rollers:

Width: 50mm, Diameter: 200mm. It can rotate its own axis at 3600. It mounted on the pit or pipe before MSG and pipes or pit fixed to the ground by weldments to the foundation plate so repair of bottom portion of plate can be possible. 12. Ultra Heavy Lifter:

Weight of block increases after WMG so it would not be possible for cranes to transfer or move to the next station. With the help of hydraulic energy whole block can be raised and moved to the desired place, this work can be done by UHL. Rails are provided at the bottom, till LOS. 13. Load Out Station At the end of all the processes, weight of block is very high so transportation through crane cannot be possible. When the heavy block kept at the LOS., 8 Hydraulic jaws of 25T capacity each raise the block and then hold.
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 Meanwhile columns kept under block and then hydraulic jaws returned to its position so the whole block kept on the columns. With help of cometto, block can be transport to the required place.

2.2 Processes done for plates at TTS panel line: 1. Marking:

With the help of marking on the plate, right part can be weld or assemble at right position.

There are two types of marking method, first one is by CNC m/c and the other one is by marker who done it with help of choke and string.

2. Coding:

Each and every plate must be distinguished by coding which helps to identify the plate position before building of vessel starts. For permanent coding, number is engraved in the plate Even every block is given a particular code. 262,272,101,110,224 etc.

Serial no.

Position of Block Types of block First Letter: Cross deck - 500 series, main deck 520, lower bottom 620, double bottom 220 etc. ( this numbering system is only for panama)
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Second letter: Port side (2), starboard side (3) and Middle (0). For ex. 222 = Double bottom Port side Third Letter: Serial no. starts from After side to Fore side. There are 130 blocks in Pnamax.

3. Straitening:

Before using plate for cutting or bending work, it must be straitened otherwise uneven shape will be produce. It can be done by putting plates in between rollers. Rollers apply pressure on the plate and eliminate curves from the surface.

4. Grinding: The motor drives a geared head at a right-angle on which is mounted an abrasive disc or a thinner cut-off disc, either of which can be replaced when worn. Angle grinders typically have an adjustable guard and a side-handle for twohanded operation. Certain angle grinders, depending on their speed range, can be used as a sander, employing a sanding disc with a backing pad or disc Angle grinders may be used both for removing excess material from a piece or simply cutting into a piece. There are many different kinds of discs that are used for various materials and tasks, such as cut-off discs (diamond blade), abrasive grinding discs, grinding stones, sanding discs, wire brush wheels and polishing pads. The angle grinder has large bearings to counter side forces generated during cutting, unlike a power drill, where the force is axial.

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 Because of atmospheric contamination to the plate, pitting defect occurs which can be eliminate by grindin to the surface of the plate.

5. Shot Blasting: Common features include: the ability to use extremely fine, or coarse, medias with densities ranging from plastic to steel; the ability to use hot water and soap to allow simultaneous degreasing and blasting. Elimination of Dust - so silicacious materials can be used without worry, hazardous material or waste can be removed without danger - e.g. removal of asbestos, radioactive, or other poisonous products from components and structures leading to effective decontamination. Process speeds can be as fast as conventional dry sand blasting when using the equivalent size and type of media. However the presence of water between the media and the substrate being processed creates a lubricating cushion that can protect both the media and the surface from excess damage. This has the dual advantage of lowering media breakdown rates and preventing impregnation of foreign materials into the surface. Hence surfaces after wet blasting are extremely clean, there is no embedded secondary contamination from the media or from previous blasting processes, and there is no static cling of dust to the blasted surface. Subsequent coating or bonding operations are always better after wet blasting than dry blasting because of the cleanliness levels achieved. The lack of
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surface recontamination also allows the use of single equipment for multiple blasting operations - e.g. stainless steel and carbon (mild) steel items can be processed in the same equipment with the same media without problems. 6. Cutting: As per the drawing, marking done one on the metal plate and then according to marking plate will be cut. Name and description of the cutting machine is given below 1. Flame planner,20 cutting torches-FP500D KOIKE 2. CNC Gas Cutting,6 sets cutting torches,1 plate-Maxigraph-500D KOIKE 3. CNC Gas Cutting,6 sets cutting torches,1 plate-Maxigraph-500D KOIKE 4. Koike make CNC Plasma bevel cutting m/c,2 torchMYNUC-10500 KOIKE 5. CNC Plasma bevel cutting m/c,1 torch V-5000DX KOIKE 6. CNC Plasma bevel cutting m/c,1 torch VESHAGRAPH-500DX KOIKE 7. CNC Line and Letter marking m/c, 1 marking torch and 1 inject torchKAMS 5500D KOIKE 8. CNC Gas Cutting m/c (NCFP), 4sets cutting torches MYNUC-10500 KOIKE 9. CNC Line and Letter marking m/c, 1 marking torch and 1 inject torchKAMS 5500D KOIKE 10. CNC Plasma bevel cutting m/c,1 torch VESHAGRAPH-500DX KOIKE 11.HGG Profile cutting m/c PCL-600 HGG I. Gas Cutting: In oxy-fuel cutting, a cutting torch is used to heat metal to kindling temperature A stream of oxygen is then trained on the metal and metal burns in that oxygen and then flows out of the cut (kerf) as an oxide slag.

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 The oxygen flow rate is critical too little will make a slow ragged cut; too much will waste oxygen and produce a wide concave cut. Oxygen Lances and other custom made torches do not have a separate pressure control for the cutting oxygen, so the cutting oxygen pressure must be controlled using the oxygen regulator. The oxygen cutting pressure should match the cutting tip oxygen orifice. Consult the tip manufacturer's equipment data for the proper cutting oxygen pressures for the specific cutting tip. The oxidation of iron by this method is highly exothermic. Once started, steel can be cut at a surprising rate, far faster than if it was merely melted through. At this point, the pre-heat jets are there purely for assistance. The rise in temperature will be obvious by the intense glare from the ejected material, even through proper goggles. (A thermal lance is a tool which also uses rapid oxidation of iron to cut through almost any material.) Since the melted metal flows out of the work piece, there must be room on the opposite side of the work piece for the spray to exit. When possible, pieces of metal are cut on a grate that lets the melted metal fall freely to the ground. The same equipment can be used for oxyacetylene blowtorches and welding torches, by exchanging the part of the torch in front of the torch.

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II. Plasma Cutting: Plasma cutting is a process that is used to cut steel and other metals of different thicknesses (or sometimes other materials) using a plasma torch. In this process, an inert gas (in some units, compressed air) is blown at high speed out of a nozzle; at the same time an electrical arc is formed through that gas from the nozzle to the surface being cut, turning some of that gas to plasma. The plasma is sufficiently hot to melt the metal being cut and moves sufficiently fast to blow molten metal away from the cut. First, a high-voltage, low current circuit is used to initialize a very small high-intensity spark within the torch body, thereby generating a small pocket of plasma gas. Plasma is an effective means of cutting thin and thick materials alike. Hand-held torches can usually cut up to 2 inches (51 mm) thick steel plate, and stronger computer-controlled torches can cut steel up to 6 inches (150 mm) thick. Since plasma cutters produce a very hot and very localized "cone" to cut with, they are extremely useful for cutting sheet metal in curved or angled shapes. Plasma torches were once quite expensive.

7.

Bending:

It the process of changing the shape of the plate by applying pressure. Bending of plate can be done by two methods, cold working and hot working.
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 Name of bending equipments and its type Plate straightening m/c - Himalaya Hydraulic press 1600t VP 16 Himalaya Hydraulic press 800t VP 08 Himalaya Hydraulic press 300t RF03 Himalaya Frame and face bending m/c 500-SBK 500Nieland I. Cold Bending: High amount of pressure applied with the help of hydraulic press on the plate which results required change in shape. With the help of wooden template, Accuracy of curve can be maintained. According to thickness of the plate, required pressure also changes. This process done at room temperature. It doesnt require any amount of heat but it cant be done without high pressure.

II. Hot Bending: Heat is given to the plate till it reaches to the recrystallization temperature. With the help of very little amount of pressure at recrystallization temperature, shape of plate can be changed according to specification. There is no need of hydraulic or pneumatic press. Plate shape can be changed with the help of Mechanical press also.

8. Line Heating: Some critical curves cannot be produced by bending.

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 When the heat is applied on the metal plate, gradually structure of the molecules changes. When new structured formed because of heat and if it does not cool down immediately then it may gets its original shape so heating time and cooling time of plate is the critical parameters for curvature plates.

9. Welding: With help of melting of parent metal and filler metal, two parts can be weld. Some welding process there is need of pressure to complete the weld.

I. Arc Welding Arc welding is a type of welding that uses a welding power supply to create an electric arc between an electrode and the base material to melt the metals at the welding point. They can use either direct (DC) or alternating (AC) current, and consumable or non-consumable electrodes. The welding region is sometimes protected by some type of inert or semiinert gas, known as a shielding gas, and/or an evaporating filler material. The process of arc welding is widely used because of its low capital and running costs. Getting the arc started is called striking the arc. An arc may be struck by either lightly tapping the electrode against the metal or scratching the electrode against the metal at high speed. I. Metal Active Gas Welding

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 Gas metal arc welding (GMAW), sometimes referred to by its subtypes metal inert gas (MIG) welding or metal active gas (MAG) welding, is a semi-automatic or automatic arc welding process in which a continuous and consumable wire electrode and a shielding gas are fed through a welding gun. A constant voltage, direct current power source is most commonly used with GMAW, but constant current systems, as well as alternating current, can be used. There are four primary methods of metal transfer in GMAW, called globular, short-circuiting, spray, and pulsed-spray, each of which has distinct properties and corresponding advantages and limitations. The contact tip, normally made of copper and sometimes chemically treated to reduce spatter, is connected to the welding power source through the power cable and transmits the electrical energy to the electrode while directing it to the weld area. Larger nozzles provide greater shielding gas flow, which is useful for high current welding operations, in which the size of the molten weld pool is increased. A shorter arc length will cause a much greater heat input, which will make the wire electrode melt more quickly and thereby restore the original arc length. Alternating current is rarely used with GMAW; instead, direct current is employed and the electrode is generally positively charged. Since the anode tends to have a greater heat concentration, this results in faster melting of the feed wire, which increases weld penetration and welding speed. The polarity can be reversed only when special emissive-coated electrode wires are used, but since these are not popular, a negatively charged electrode is rarely employed. Shielding gases are necessary for gas metal arc welding to protect the welding area from atmospheric gases such as nitrogen and oxygen, which
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can cause fusion defects, porosity, and they come in contact with the electrode, the arc, or the welding metal. Pure inert gases such as argon and helium are only used for nonferrous welding; with steel they do not provide adequate weld penetration (argon) or cause an erratic arc and encourage spatter (with helium). Pure carbon dioxide, on the other hand, allows for deep penetration welds but encourages oxide formation, which adversely affect the mechanical properties of the weld. Its low cost makes it an attractive choice, but because of the reactivity of the arc plasma, spatter is unavoidable and welding thin materials is difficult. Adding to its economic advantage was its high deposition rate, allowing welding speeds of up to 110 mm/s (250 in/min). As the weld is made, a ball of molten metal from the electrode tends to build up on the end of the electrode, often in irregular shapes with a larger diameter than the electrode itself. When the droplet finally detaches either by gravity or short circuiting, it falls to the workpiece, leaving an uneven surface and often causing spatter. As a result of the large molten droplet, the process is generally limited to flat and horizontal welding positions. The high amount of heat generated also is a downside, because it forces the welder to use a larger electrode wire, increases the size of the weld pool, and causes greater residual stresses and distortion in the weld area.

II. Sub Merged Arc Welding

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 In SMAW, the molten weld and the arc zone are protected from atmospheric contamination by being submerged under a blanket of granular fusible flux. When molten, the flux becomes conductive, and provides a current path between the electrode and the work. This thick layer of flux completely covers the molten metal thus preventing spatter and sparks as well as suppressing the intense ultraviolet radiation and fumes that are a part of the shielded metal arc welding (SMAW) process. The process is normally limited to the flat or horizontal-fillet welding positions (although horizontal groove position welds have been done with a special arrangement to support the flux). Single or multiple (2 to 5) electrode wire variations of the process exist. SAW strip-cladding utilizes a flat strip electrode (e.g. 60 mm wide x 0.5 mm thick). DC or AC power can be used, and combinations of DC and AC are common on multiple electrode systems. Constant voltage welding power supplies are most commonly used; however, constant
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current systems in combination with a voltage sensing wire-feeder are available. High deposition rates (over 100 lb/h (45 kg/h) have been reported). High operating factors in mechanized applications. Deep weld penetration. Sound welds are readily made (with good process design and control). High speed welding of thin sheet steels up to 5 m/min (16 ft/min) is possible. Minimal welding fume or arc light is emitted. Practically no edge preparation is necessary. The process is suitable for both indoor and outdoor works. Distortion is much less. Welds produced are sound, uniform, ductile, corrosion resistant and have good impact value. Single pass welds can be made in thick plates with normal equipment. The arc is always covered under a blanket of flux, thus there is no chance of spatter of weld. 50% to 90% of the flux is recoverable Limited to ferrous (steel or stainless steels) and some nickel based alloys. Normally limited to the 1F, 1G, and 2F positions. Normally limited to long straight seams or rotated pipes or vessels. Requires relatively troublesome flux handling systems. Flux and slag residue can present a health & safety concern. Requires inter-pass and post weld slag removal.

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The project work is divided in to two parts:

Project Work

Cost Calculation

To Find The Ways To Reduce The Costs

Labour Cost

Material Cost

Maintanence Cost

Depriciation Cost

Figure 1: Project Work Flow Diagram

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2.3

Schedule of the project work:

Figure 2: Schedule of Project Work

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3. LITERATURE REVIEW AND STUDY OF INDUSTRY

3.1

Introduction to Costing

The method of costing to be adopted depends on the nature of manufacturing activity. There are various methods of costing. They are:

Standard costing Marginal Costing Job costing Batch costing Contract or Terminal costing Single or output costing Process costing Operation costing Departmental costing Multiple costing Historical costing

Standard Costing: Under this technique, standard costs are established even before the actual expenditures are incurred. Then the actual costs incurred are compared with the standard costs and the differences between the two are calculated.

Marginal Costing: The purpose of this type of costing is to study the relationship between cost, volume and profit. It is also called as variable costing or differential costing.

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Job Costing: Under this method, work is performed against the individual orders accepted from the customers. A distinct Job number is given for each order accepted.

Batch Costing: Where small parts are manufactured in lots, it would be convenient to ascertain the cost of each batch of articles so manufactured. Such type of costing is known as batch costing.

Contract or Terminal Costing: This is a method of costing applicable to contractors job.

Single or Output costing: Where there is only one product, output costing is adopted. A cost sheet or a production account is drawn, to show the cost of production of the product.

Process costing: If a product passes through different stages of manufacture or processes, the method of costing suitable is process costing. The special feature of this method is the product at the end of a process becomes the raw material for the next process till it reaches the last process.

Operation costing: Under this method, the cost of each operation is calculated. This is suitable for industries in which producing a product requires stages of operation.

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Multiple costing: It means combination of two or more of the above methods of costing. Where a product comprises many assembled parts or components (as in case of motor car) costs have to be ascertained for each component as well as for the finished product for different components, different methods of costing may be used. It is also known as composite costing. Here, the multiple costing method is used for calculation of cost at TTS panel line.

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3.2 Introduction to Shipping Industry 3.2.1 History of shipping industry Commercial shipping can be traced back to the Phoenician merchants who transported goods across the Mediterranean. The Venetians owned huge merchant fleets from 1300 AD to 1500 AD. The Dutch held the largest shipping fleet from 1600 AD to 1650 AD. Till the nineteenth century, the shipping industry was dominated by merchants. The common freight carrier service started in 1818 with the launch of James Monroe. The shipping industry boomed after the opening of the Suez Canal (1869), which facilitated faster trade between Europe and Asia. In 1960, the first nuclear powered cargo and passenger ship Savannah was launched. From the 1970s to the 1980s, the container shipping sector grew exponentially. The industry continued its growth, especially in Asia, with Hong Kong inaugurating the worlds largest container port in 1989.

3.2.2 Industrial shipping Carriers: Industrial carriers are vessels operated by large corporations to provide transportation essential to the processes of manufacture and distribution. These vessels are run to ports and on schedules determined by the specific needs of the owners. The ships may belong to the corporations or may be chartered. For example, the Bethlehem Steel Corp. maintains a fleet of Great Lakes ore carriers, a number of specialized ships that haul ore from South America to Baltimore, Maryland, and a fleet of drycargo ships that transports steel products from Baltimore to the Pacific coast. Many oil companies maintain large fleets of deep-sea tankers, towboats, and river barges to carry petroleum to and from refineries. The ships often operate under contracts of affreightment.

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3.2.2.1

Vessel Types

Merchant ships are classified as passenger carriers, cargo ships, and tankers. During the height of passenger travel by ship, the largest as well as the most glamorous ships afloat were the famed liners of the North Atlantic, which, beginning in the mid-19th century, sailed regular schedules between the Americas and Europe. Competing in speed as well as in size and appointments, such ships as the Mauretania, the Queen Mary, the Queen Elizabeth, the United States, and the France gradually reduced the time for the North Atlantic crossing to less than four days. Their size, from about 45,000 to 75,000 metric tons and up to 300 m (1,000 ft) in length, was gigantic by the standards of the first half of the 20th century, but they have been dwarfed by the oil tankers of the 1970s and '80s. Today's passenger liners operate principally in the cruise trade. Cargo Ships Cargo ships carry packaged goods, unitized cargo (cargo in which a number of items are consolidated into one large shipping unit for easier handling), and limited amounts of grain, ore, and liquids such as latex and edible oils. A few passengers are accepted on some cargo liners. Specialized ships are designed and built to carry certain types of cargo, for example, automobiles or grain.

Container Ships In the late 1950s container ships set the pattern for technological change in cargo handling and linked the trucking industry to deep-Sea shipping. These highly specialized ships carry large truck bodies and can discharge and load in one day, in contrast to the ten days required by conventional ships of the same size. The rapid development of the container ship began in 1956, when Sea-Land Service commenced operations between New York City and Houston, Texas. Barge-aboard, or lighter-aboard, ships, also called seabees (sea barges) or LASH (lighter-aboard
34

ships), resulted from an evolutionary development of the container ship. They are capable of carrying about 38 barges, or up to 1,600 containers, or a combination of containers and barges. Their design enables them to deliver cargo to developed or undeveloped ports, without the need for berthing. Tankers Tankers, designed specifically to carry liquid cargoes, usually petroleum, have grown to many-compartmented giants of a million metric tons and more. Despite their great size, their construction is simple, as is, for the most part, their operation. A major problem with the giant tankers is the severe environmental damage of oil spills, resulting from collision, storm damage, or leakage from other causes. Specialized tankers transport liquefied natural gas (LNG), liquid chemicals, wine, molasses, and refrigerated products.

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3.3

Introduction to PSL

Pipavav Shipyard Limited (PSL) is a testimony to the vision and active participation of the private sector in Indias quest to become a major player in the global maritime industry. Covering over 200 hectares with approximately 720 m of sea front and 685 m of outfit quay, PSL is the largest shipyard in India. It has one of the largest dry dock in the world. Two Goliath cranes of 600 T capacity each, which service the dry dock and the adjoining pre-erection berth, enabling PSL to handle up to 1200 T preoutfitted ship blocks. A host of other technologically advanced infrastructure and use of modern shipbuilding process,m[l,.l.ses, including modular construction and line heating technique, make PSL one of the most modern shipyards in the world. Coupled with the above, PSLs commitment is, uncompromising quality and an increased focus on customer service to make PSL comparable with the best in the world.

Vision
To make the Company one of the best in the world in every aspect with focus on Defence, Offshore and Heavy Engineering in the coming decade and to contribute humbly towards India becoming net exporter of warships, oil and gas assets.

Mission
To create visibility and value for all stakeholders on a sustainable basis by leveraging on most advanced capabilities to exploit global opportunities.

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3.3.1 Stake Holders Promoter:

SKIL Infrastructure Ltd. (SKIL)

Foreign Companies:

SembCorp Marine Ltd.

Financial Institutions and Banks:

Infrastructure Leasing & Financial Service Ltd.(IL&FS) LIC and LIC sponsored Mutual Funds (LIC) Export Import Bank of INDIA(EXIM Bank) IDBI Bank Ltd. (IDBI) Sundaram BNP Paribas Mutual Fund

Foreign Institutional Investors:

Small cap World Fund, Inc. New York Life Investment Management India Fund (FVCI),II LLC, Mauritius American Funds Insurance Series Global Small Capitalisation Fund Commonwealth Equity Fund Ltd. The California Public Employees Retirement System Battermarch Financial Management Inc. The India Fund, Inc.

3.3.2 Association With World Leading Groups

SembCorp Marine, a leading global marine engineering and shipyard group, has been advising PSL on yard layout and manufacturing processes.
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Northrop Grumman Overseas Service Corporation, USA:The company had signed a memorandum of understanding (MoU) with Northrop Grumman Overseas Service Corporation, Delaware, USA. Northrop is one of the largest defense companies in the segment with an expertise in defense systems, airspace management systems, navigation systems, precision weapons and marine systems. Pipavav Shipyard endeavors to indigenously produce military hardware for India and other friendly nations with such partnerships.

SAAB Dynamics :Pipavav Shipyard has signed an MoU with SAAB Dynamics AB as part of a defense co-production initiative taken by Wallenberg Group in India. This will enable Pipavav to enter the army and air force segments. SAAB Dynamics AB is a part of the Wallenberg Group,A Swedish multinational company. The department of industrial policy and promotion (DIPP) issued the license after screening by the ministries of home and defense and other related agencies. The license allows the shipyard to bid for construction of submarines, destroyers, frigates, LDP, coverettes as also aircraft carriers

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3.3.3 Business strategy PSLs long-term strategy is to have four pillars to stand on, each capable of supporting the Shipyard on its own. The Company has engaged in activities in the following business sectors: Commercial shipbuilding Offshore fabrication and servicing Naval War-Ship Building Ship repair

This strategy will insulate PSL from the the risks of relying on one market segment alone, and also allow for profitable business opportunities in each segment to be grasped as market conditions dictate. PSL has been set up with the in-built flexibility to switch from one product type to another, without compromising on the efficiency or cost-effectiveness of the yard operations. Accordingly, there will be capability to build and repair (dry dock & afloat) most kinds of commercial ships from very large crude carrier to cape size bulk carrier and large container ships. In Naval shipbuilding and repair, PSL has the necessary infrastructure and facility to build all kinds of naval vessels. Initially the yard intends to take up refit dry docking and afloat repairs and later enter into conversions.

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Given the increasing focus on offshore exploration for oil and gas around the coast of India, and in the Middle East, the Shipyard has been designed to exploit the opportunities that this sector has to offer. Our capabilities in this regard include fabrication / construction of offshore platforms, SBMs, rigs, jackets, vessels, etc. for upstream oil and gas sector / companies both in India and abroad. The yard has already started construction of 12 offshore supply vessels for ONGC and are competitively bidding for high end anchor handlers. The dredger market is another potential under consideration.

At its site at Pipavav, PSL has installed and commissioned some of the most modern shipbuilding equipment that can be purchased inter-alia, from leading companies in Norway, Japan, Italy and Norway. Two Goliath cranes, each having a lifting capacity of 600 Ton, the largest in India, are also erected at the site. This modern plant, when combined with PSLs highly experienced management team, comprising Indians and multi-national expatriates and the competitively priced skilled labour available in India, have enabled PSL to make an impressive beginning in the various business segments.

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3.3.4 Infrastructure 3.3.4.1

Dry Dock:

The Pipavav Shipyard originally consisted of two wet basins one approximately 680 meters long and 65 meters wide, and the other approximately 680 meters long and 60 meters wide.

The first of these has been converted into a dry dock measuring 662 meters longs, and 65 meters wide.

Two Goliath cranes with a span of 150 meters & height of 175 meters together capable of handling up to 1200 Ton block, and two Level Lifting cranes are erected to service this dry dock.

To facilitate afloat fit-out and commissioning of ships, including afloat repairs, a 300meter long quay, with the capacity for berthing on both sides, has been constructed with adequate draft and serviced by a Level Lifting crane. The entrance of the dry dock also has a 100 meter extension track for the Goliath cranes for unloading heavy machinery and equipment weighing up to 1200 Tons directly from ships and heavy lift barges.

The dry dock and surrounding facilities are located on 103.92 hectares (approximately 256.79 acres) adjoining approx 720 meters of dedicated waterfront. This entire area has been approved as an Export Oriented Unit (EOU) by the Government of India.

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3.3.4.2

Workshop and Facilities:

Approximately 4.5 kilometers away from the dry-dock, and located on 95 hectares of land in a Special Economic Zone approved by the Government of India, a state of the art block-making facility has been set up for fabrication of hull blocks By having located the workshops and fabrication facilities in a SEZ away from the dockyard site, PSL has the dual advantage of having been able to reserve the maximum area of water frontage available at the shipyard site for ship assembly, offshore fabrication and ship repair activities whilst carrying out its fabrication and other similar activities through a highly tax-efficient SEZ unit. The blocks manufactured at this site are pre-outfitted to the maximum extent. This is done in the ideal working conditions offered by covered fabrication shops. When ready, the blocks are moved to the dock-side for pre-erection of mega/giga-blocks followed by lowering them on the dock floor for final assembly and vessel launching.

The block-making site is equipped with, among others, the following facilities: A very large fabrication facility, spread over an area of 235 acres, having closed working areas of approximately 2 million square feet The fabrication facility can cut steel and fabricate blocks of up to 144,000 Ton
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per annum, as it is equipped with : 270 meter long panel line with one side welding machine from TTS Norway 8 Plasma/gas cutting machines from Koike, Japan 2 Marking machines from Koike Japan Auto blast and paint line of 185 m length and 9 blast and paint cells from Hanfu China Profile cutting machine from HGG Netherlands Ring frame bender from Nieland Netherlands Horizontal bending press for ring frame from Himalaya, India 2 Hydraulic presses having capacities of up to 1600 Ton from Himalaya, India 2 Plate straightening machines from Himalaya, India 28 EOT cranes having up to 150 Ton capacity each 30 Semi gantry cranes having up to 7 Ton capacity each 3 Gantry cranes having up to 60 Ton capacity each 3 Transporters, one of 370 tons capacity & two of 200 tons capacity each

In addition, the Shipyards utility infrastructure includes the following: 2 x 66 KVA power line along with switchyard, transmission and distribution systems Water pipeline and fire fighting system along with pumps, overhead tanks and pumping systems Low pressure compressed air system Infrastructure relating to consumable gases such as O2, CO2, LPG and nitrogen

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3.3.5 Products of PSL Commercial Shipbuilding:

Offshore Platforms:

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Naval Vessels:

Ship Repair:

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4. OBJECTIVE OF THE PROJECT

TTS panel line is a 270 meters long panel line at where blocks are prepared by cutting, block fitting, welding, sub assembling and grinding. So, there is a very large cost company is paying to the employees, contractors and suppliers for TTS panel line. The main objective of the work is to be aware of how the calculation of cost has been done at corporate level practically and put my as possible efforts to find the ways to reduce these cost.

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5. RESEARCH METHODOLOGY

Research methodology is a methodology for collecting all sorts of information & data pertaining to the subject. The objective is to examine all the issues involved. The methodology includes the overall research design, & fieldwork done & finally the analysis procedure. Usefulness of the study This study will be useful to company to calculate the cost at TTS panel line and take effective steps to reduce these costs. The study will also be useful to increase my knowledge.

Research Technique: Research technique used is exploratory as well as constructive. The subject of the study deals with defining the problem and understanding all the issues involved and constructive because it gives an ongoing solution for the problem.

Observational Study: The research was done by observing all the techniques, block designs and procedures at the TTS panel line and then the problem was defined.

In Depth Interview: The research also includes asking the questions to the employees and workers at the plant and to know exactly that what problem they are facing at the plant.

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6. DATA ANALYSIS AND INTERPRETATION

Cost Calculation

6.1

Labour Cost

The first task of the project is to calculate the labour cost. After calculation, we found that in TTS panel line, there are 56 PTSPL employees, whose average salary is `25,000 /month and the lists of employees are as under:
Table 1: Employee Distribution

No.of employees 36 4 3 4 6 1

Designation of employees

Welders Fitters Supervisors Engineers Riggers Incharge

So, the total fixed labour cost of PTSPL employees per month = 25000 56 = `13,50,000 Half the work has been given to the shakti construction on the contract basis. And it is on tonnage basis. so shakti construction have their own employees who are working on TTS panel line. The work contactor is doing is grinding, block fitting and sub assembling. The cost of the work is as follows: Grinding = `925/tone Block fitting = `3650/tone
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Sub assembly = `3650/tone The block fitting should be calculated as 30% of the total production. The total production, sub assembly and block fitting in tonnage are given in the following table and chart:
Table 2: table of total production, sub assembly and block fitting

Month(2011) January February March April May

Total production(ton) 501.9 402.8 797.3 773.4 431

Sub assembly(ton) 118 181.7 322.7 253.7 409

Block fitting(ton) 150.57 120.84 239.19 232.02 129.3

900 800 700 600 500 400 300 200 100 0 jan feb mar apr may total production sub assembly block fitting

Figure 3: Production Summary

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So, variable labour cost given to contractors is as follows:

Table 3: variable cast data

Month(2011) January February March April May

Sub assembly(`) 4,30,700 6,63,205 11,77,855 9,26,005 14,95,405

Block fitting(`) 5,49,580 4,41,066 8,73,043 8,46,873 4,71,945

Grinding(`) 4,64,257 3,72,590 7,37,590 7,15,395 3,98,675

1,600,000 1,400,000 1,200,000 1,000,000 sub assembly 800,000 600,000 400,000 200,000 0 jan feb mar apr may block fitting grinding

Figure 4: Variable Costs

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So total labour cost at TTS panel line:

Table 4: Total Cost Data

Month(2011) January February March April May

Fixed cost(`) 13,50,000 13,50,000 13,50,000 13,50,000 13,50,000

Variable cost(`) 14,44,537 14,76,861 27,94,400 24,88,223 23,66,025

Total cost(`) 27,94,537 28,26,861 41,44,400 38,38,223 37,16,025

4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 jan feb mar apr may fixed cost variable cost total cost

Figure 5: Total Cost

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Labour cost in 2011 is as follows:

Table 5: Labour Cost

Month(2011) January February March April May

Labour Cost(`/ton) 5567.9 7018.0 5190.5 4962.9 8621.8

Total Monthly Average Labour Cost In 2011 = `6273.42/ton

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6.2

Material Cost

For calculation of material cost, we did very complex and tricky job. Because without this job, we could not get the material cost. Following materials are used in TTS line. Wire Spool (Welding Material) Gouging Electrodes Welding Screen Safety Goggles Contact Tips (Panasonic) Contact Tips (ESAB) Safety Gloves O2 Consumption CO2 Consumption LPG Consumption Flux Consumption At TTS panel line, the most consuming material is a wire spool. So, our first task is to find how many wire spools are used in the month. Procedure for calculating the wire spool (welding material) Step 1: So, for calculating the consumption of wire spool, we have one thumb rule that with each wire spool, the welder can make an average of 40 meters of welding. Step 2: Our second task is to find out how many meters of welding is needed in a block. Each block needs different meters of welding.
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Step 3: So, now we need to see, in a month, how many blocks are manufactured. Step 4: For that, we took a design of each block and according to the design, we calculated how much meters of welding is essential for making this block in the presence of the engineers. Step 5: And if we are not getting the welding meter length directly by design, we have to follow the equation to find the length of the welding. The equation is

Where, H= Height L= Length T= Thickness Step 6: Add all the meters and divided it by 40 (thumb rule), we got the number of wire spool used. Each wire spool contains 15 kg of wires. Example of a practice we did for calculating meters of welding for a block no.521 Here, it is given the welding length of all the components used in the block no.521 S2 = 0.9*2 = 1.8 m E1 = 0.314*2 = 0.628 m E3 = 1.020*2 = 2.040 m Calculation for FR44A, FR50A, FR56A: S1 = 2.276*2*3 = 13.7 m S10 = 0.748*2*3 = 4.488 m

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S11 = 1.031*2*3 = 6.186 m S2 = 1.878*2*3 = 11.27 m S3 = 1.481*2*3 = 8.886 m S4 =1.069*2*3 = 6.42 m S5 = 4.10*2*3 = 24.6 m S6 = 3.2*2*3 = 19.2 m S7 = 1.2*2*3 = 7.2 m S8 = 0.8*2*3 = 4.8 m S9 = 0.82*2*3 = 5.0 m But joint = 180 m T bar welding = 303.5 m Straight welding = 1616.8 m So, total welding meters = 2240.6 m So, total welding wire spool = 56.015 wire spool So, wires used in kg for the block no.521 = 840.25 kg The cost of wire = `160/kg So, total cost of welding material for the block no.521 = `1,34,400 Likewise, we did the same practice for each and every block for two months and then we got one more thumb rule that the length of welding meters is nearly 2% of the

55

weight of the block. So if the block is of 60,000 kg then the welding meters are 12,00 metes. So by these thumb rule we got the cost of welding material for 2011 as given in the table:
Table 6: Cost of Welding Material

Month Of 2011

Weight Of Wire Spool (Kg)

Cost Of Wire Spool (`)

January February March April May

10,038 8,056 15,946 15,468 8,620

16,06,080 12,88,960 25,51,360 24,74,880 13,79,200

So, average welding material cost in 2011 = `15,71,016 /month Then for calculating the cost of O2, CO2, LPG and flux:

Table 7: Consumption of gases by weight

Month

O2 consumption (kg)

CO2 consumption (kg) 13,751 18,856 21,470 20,922 27,404

LPG consumption (kg) 6,160 6,160 6,160 6,160 6,160

Flux consumption (packet) 45 51 110 83 77

January February March April May

7.465 6,885 8,172 9,222 12,297

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O2 consumption was given in the cubic meters, we converted into first kg and then cost of O2 is also converted by us in Rs/kg from Rs/cubic meter by using following equation: 1 cubic meter = 0.775 kg of O2 Cost of O2 `12.67 = 0.775 kg Cost of CO2 ` 8.5 = 1 kg Cost of LPG ` 63.51 = 1 kg Cost of Flux `770 = 1 packet
Table 8: Cost of gas consumption

Month

O2 consumption (`)

CO2 consumption (`) 1,16,885 1,60,278 1,82,495 1,77,841 2,32,937

LPG consumption (`) 3,91,221 3,91,221 3,91,221 3,91,221 3,91,221

Flux consumption (`) 34,650 39,270 84,700 63,910 59,290

January February March April May

1,22,061 1,12,579 1,33,627 1,50,793 2,01,064

As same as welding material and flux and gases consumption, we found other material cost as following:
Table 9: Material Cost

Material Name Total Wire Spool Gouging Electrodes

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Average Material Cost(`) 15,71,016 2,600

Welding Screen Goggles Contact Tips (Panasonic) Contact Tips (Esab) Gloves O2 Consumption CO2 Consumption LPG Consumption Flux Consumption

375 2,000 10,500 3,200 2,000 1,44,024 1,54,087 3,91,221 56,364

Total Monthly Average Material Cost in 2011 = `23,37,387

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6.3

Maintenance Cost

According to the manager of TTS line, calculation of maintenance cost per month is very tedious, complex and difficult task. Because there are lots of parts are used for maintenance over here and all the parts have different cost. No one knows when the maintenance parts of machines would be needed. For example, in any month, any machine can be damaged and repair and maintenance cost can be occurred. So, calculation of maintenance cost per month would not be accurate. For calculation of maintenance cost per month, we calculated the maintenance cost of whole year and then divided it by 12, we got average monthly maintenance cost. And for yearly maintenance cost, company generally prepares a budget every year. This years budget for maintenance cost at TTS panel line = 5% of the value of whole panel line. The value of TTS panel line = `40,00,00,000 So, maintenance cost for year 2011 = `2,00,00,000

Total Monthly Average Maintenance Cost in 2011 = `16,66,666

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6.4

Depreciation Cost

Depreciation cost can be calculated widely by two methods: Straight Line Method Written Down Method Here, we used Straight Line Method for calculation of depreciation cost by using the equation:

The value of TTS panel line = `40,00,00,000 The useful life of TTS panel line = 20 years Scrap(residual) value of TTS panel line = `6,00,00,000 So by SLM method, the depreciation cost in 2011 = = `1,70,00,000

Total Monthly Average Depreciation Cost in 2011 = `14,16,666

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Average Total Monthly Cost at TTS Panel Line LABOUR COST MATERIAL COST = `34,62,819 = `23,37,387

MAINTENANCE COST = `16,66,666 DEPRICIATION COST = `14,16,666

Average Total Monthly Cost at TTS Panel Line = `88,83,538 And, monthly average production of TTS panel line = 581 ton so, labour cost per ton Material Cost per ton = `5,960 = `4,023

Maintenance Cost per ton = `2,868 Depreciation Cost per ton = `2,438 Average cost per ton = `3,822 So, For Production of 1 Ton, TTS Panel Line Costs `15,289

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The Ways to Reduce the Cost At TTS Panel Line

1. For example,

By increasing the tonnage:

In January, the production at TTS panel line = 501.9 tone Salaries paid to PTSPL employees = `13,50,000 So , fixed money paid for production of 1 tone = `2,689 Whereas, In March, the production at TTS panel line = 797.3 tone Salaries paid to PTSPL employees = `13,50,000 So, fixed money paid for production of 1 tone = `1,693 So, average monthly reduction = `5,81,000 as per month production is 581 tone. So, by increasing the tonnage, we had reduce labour cost of `1,000 per tone in March and in upcoming future, if we produce more blocks in a month, we can gain more profit by reducing the cost of labour.

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2.

Material (steel plates) should be available at TTS line on time:

During my training period, I have heard lots of time that material has not reached on time. If the material would be delayed, no one can work efficiently. All costs would be increased if the steel plates would be late. For example, P011 522/532 had been started very late because of delay in material supply. So all other tasks would be late and because of this, it will cause delay in dry dock to complete the ship. If this type of problems would be continue in future then it will cause great impact on companys image as well as companys cost. So, for that, material management should be done accurately from top to bottom. Proper planning is required by the top management.

3.

There is a space of reduction in contractors rates:

At TTS panel line, sub assemble, block fitting and grinding work is given to the Shakti contractors. The rate of Shakti contractor for a particular work is as follows: Grinding = `925/tone Block fitting = `3650/tone Sub assembly = `3650 /tone The block fitting should be calculated as 30% of the total production. For example,
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We have calculated the cost of work Shakti construction had paid to their employees for 350 tone: They employed 38 employers for working with 350 tone and the average salary is `17,000 For 350 tone, the payment given by shakti construction to their employees = `6,46,000 Cost of consumables which Shakti construction is using for grinding and other tasks = `1,75,000 So, total cost of Shakti construction for 350 tone = `8,21,000 And payment given by PSL to Shakti construction for 350 tone is, Grinding = `3,23,750 Sub assembly = `3,19,375 Block fitting = `3,83,250 Payment paid to shakti construction by PSL = `10,26,375 So, total profit of Shakti construction = `2,05,375 for 350 tone = `590 per tone So on an average, Shakti construction is earning `3,42,790 form PSL as average production at TTS panel line = 581 tone. So, there is a scope for reducing the rate of sub assembly, grinding and block fitting. Or we can employ that much skilled persons by our own and we can reduce this cost.\

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4.

No proper arrangement of material keeping:

Here, at BMS site, there is no proper arrangement for keeping the steel plates. All the plates are put together like a bunch. And because of dust, moisture and humidity, if one plate get started of pitting, all other plates easily get pitted. And the pitting is the biggest difficulty at TTS panel line. And because of pitted material, the TTS panel line had paid a lot. There is a chances of rejecting a block due to the pitting. Pitted material is increasing the labour cost. And for removing the pitting, grinding charge specially for pitting is `110/ square meter. By converting square meter into kilograms, We found that a square meter = 165 kg. For this year average 60% of plates get pitted. So nearly 385 tone plates needed grinding. And the cost of grinding these material is `2,56,666. So, for reducing the troubles by pitted material, the material should be kept in a proper SHELF. (as shown in figure.) This is a figure of another shipyard where the steel plates are kept in shelf. Where they are saving their nearly 50% of grinding cost.

Figure 6: Shelf Stacking

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There should be a shelf of each and every plate (like 12 mm, 14 mm, 16 mm, etc.). So, if water will touch to the plate, it will easily go to the downside of plate and not make much harm to the plate. And if the plates are kept in shelf, then it would be very convenient to take. If the plates are in bunch and put together on land then if I want to get the plate which is at last then it would be very difficult to take it out. And if the plates are in shelf, then it would be easy to get any plate. By this way, we can save `1,28,333 .

5.

Reduction of cost in wire spool:

Here, 1 wire spool (welding material) of 15 kg is having 1800 meters length of the welding wire. For welding in blocks, there are criteria. One criteria for welding is: leg length of welding should be 6.5 mm. Less than 6.5 mm should not be allowed. So, for avoiding the mistakes, the welders generally make the welding having the leg length of nearly 7.5 mm. For 6.5 mm leg length, 35 meters of welding material is required for 1 meter welding. And for 7.5 mm, 45 meters of welding material is required. So, we are loosing 10 meters of welding material per 1 meter welding by the welders. So, in 1 kg of material 20 meters of welding material is wasted by the welders. And Average monthly consumption of wire spool is 11,625 kg Because of these, per month, 23,250 meters of wires are wasting. So, nearly 13 wires pools get wasted which costs `32,135 If we train the welders perfectly and welders put more concentration on proper welding, then we can save `32,135 per month from material cost.
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6.

Reduction of cost in CO2 consumption:

Here, the regulator is assembled for regulating the CO2 consumption. The regulator is made up of aluminium and there is a connector between the hose pipe and the regulator which is known as nipple which is made up of brass. Sometimes because of lacking of proper threading, damaged in hose pipe and the material difference of regulator and nipple, on an average 20% of CO2 is leakage. So, per month, there is an average CO2 consumption of `30,800. For, solving this problem, we should use regulator and nipple of same material and threading of nipple should be done properly as well as if the hose pipe get damaged then the hose pipe should be changed or repaired quickly.

7.

Inconsistent quality of contact tips:

From material handling department, they are providing a different quality contact tips. They have two types of contact tips having different quality and different costs. The rate of contact tips are as follows: Contact tips (panasonic) = `70 Contact tips (ESAB) = `32 Because of inconsistent quality of contact tips, 20-25 contact tips get wasted worth of `650-`700.

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8.

Reduction in cost of O2 consumption:

Many a times, I have found that the workers working with O2, they are wasting the O2 gas flow for cleaning the material. This O2 gas should not be used for cleaning. It is only for cutting. Because of this mishandling of O2 gas flow, there is a 5% loss of O2 which costs nearly `7,200. So, by proper handling, per month, saving of `7,200 can be possible.

Possible Total Cost Reduction Per Month = `11,22,958

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7. CONCLUSIONS

For mass production in less time with higher accuracy of Flat Blocks of the ship can be manufactured by TTS Panel Line only and for that cost control should be very necessary. For cost control, there must be a calculation of all costs. The calculation of cost has been done by the multiple costing method. At TTS panel line, the mangers control the labour cost, material cost, maintenance cost as possible as they can. But there is a little more scope of reduction in cost at TTS panel line.

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8. RECOMMENDATIONS The reduction of cost at TTS panel line can be done as follows: By increasing the tonnage Material (steel plates) should be available at TTS line on time There is a space of reduction in contractors rates No proper arrangement of material keeping Reduction of cost in wire spool Reduction of cost in CO2 consumption Inconsistent quality of contact tips Reduction in cost of O2 consumption.

Labour cost: The previous average monthly labour cost = `36,44,857. The possible reduction in labour cost can be achieved by:
Table 10: reduction in labour cost

Particular Increasing the tonnage Reducing Contractors wages Proper Material Storage (using shelves) Total Reduction

Cost (`) 5,81,000 3,42,790 1,28,333 10,52,123

After applying the solution, the new labour cost can be = `25,92,734

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Material cost: The previous average monthly material cost = `23,37,387. The possible reduction in material cost can be achieved by:
Table 11: reduction in material cost

Particular Reducing the cost of CO2 consumption Reducing the cost of wire spool Assuring consistent quality of contact tips Reducing the cost of O2 consumption Total Reduction

Cost (`) 30,800 32,135 700 7,200 70,835

After applying the solution, the new material cost can be = `22,66,552 The total average monthly cost is currently = `88,83,538. By implementing these cost reductions, a total cost reduction of `11,22,958 per month is achievable.

The total possible percentage reduction can be of 12.6%.

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9. REFERENCES

http://www.pipavavshipyard.com/ http://en.wikipedia.org/wiki/Cost_accounting http://www.theglobaltutors.com/cost-accounting/methods-of-costing.aspx http://www.bharatishipyard.com/ http://www.abgindia.com/ http://www.economywatch.com/world-industries/shipping-industry.html

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