PEL Internship Project

Improvement of Deep
Freezer Top frame
production

Table of contents
Acknowledgements
Executive summary
Company Profile
1.0 Deep
Freezer
1
1.1
Process
.1
1.2 Problems
faced
..1
2.0 Available options

.1
2.1 Manual
Process
..1
2.2 Automated
Process
..2
3.0 Factors to be
considered
..3
3.1 Injection
Molding
..3

3.2 Laser Cutter

Machine
.4
3.3 Water Jet Cutting
Machine
.5
3.4 CNC Milling
Machine
..5
4.0 Selection of automated
machine6
5.0 Proposed
Design
.6
5.1 Milling Machine with slitter
cutter.7
5.2 Milling Machine with finished end
mill8
6.0 Advantages of CNC Milling
Machine.8
6.1 Production Capacity
Increase
.8
6.2 Cost
Analysis
..9
6.3 Safety
risk
..10
Conclusion

ACKNOWLEDGEMENT
With the deep sense of gratitude, bow my head before God for
enabling me to complete this internship Project. Im also thankful to
Mr.Ahmad Ayub Bhatti and Engr. Asad Rasool who helped me in doing this
project and completing it. I am also thankful to PEL Staff which really
coordinated and supported me in doing this project.

EXECUTIVE SUMMARY
I recently got a chance to do internship at PEL. I was inducted in
Deep Freezer Production Section, under the supervision of Mr.Ahmad Ayub
Bhatti. My internship project was to improve the process of production of
Deep Freezers Top Frames. The management wanted to increase the
production capacity while also minimizing the safety under strict low budget.

COMPANY PROFILE
Pak Elektron Limited is a pioneer manufacture of electrical
goods in Pakistan. In 1956 the company was established by Malik Brothers in
technical collaboration with M/s AEG Germany to manufacture transformers,
switch gears and electric motors. AEG relinquished their share of PEL to Malik
Brothers in late 1960s which was subsequently acquired by Saigol Group of
Companies in 1978.
Since its inception the company has always been contributing
toward the advancement and development of the engineering sector in
Pakistan introducing the range of quality electrical equipment and home
appliances.
Until the acquisition by Saigol Group, PEL was solely catering the
power equipment market. The company ventured into home appliances
market in 1981 after acquisition as a part of the groups long term strategy
for diversification

DEEP FREEZER

Objective
The task assigned to me was to improve the making of the top frames of
Deep Freezers. The management wanted to increase the production capacity
while also minimizing the safety under strict low budget

1.0 Process
The top frames are made by thermal forming the abs plastic sheet and then
cut into its precise dimensions.

The sheet is thermoformed

The sheet sides are punched.
The sheets are scratched.
The sheet outer edges are trimmed to 15mm.
The inner part is cut and separated from the top frame

The part which has been cut are recycled by crushing and then feed it into
the extruder, converting it into sheet again.

1.1 Problems faced

Dimensional accuracy
Human error (wastage of piece)
Safety (cutting incidents)
Cutting tool adjustment problem.

2.0 Available options

2.1

Manual operation improvements

To use flexible ball bearing that would not cause the wear of
wooden frame and thus affecting the cutting of outer edges.
Cut resistant gloves should be used by workers to minimize
safety hazards.

Pros
Cheap
Increase in dimensional accuracy.

 Incremental improve in safety

Cons
No increase in production capacity
Safety is still at risk.
Two pairs of gloves
Flexible bearing
Total cost

PKR 4000
PKR 300
PKR 4300

2.1.1 Cost analysis

2.2 Automated Process

In past 20 years automation has allowed for companies to mass produce
products at outstanding speeds and with great repeatability and quality.
Automation has become a determining factor in whether or not a company
will remain competitive within the manufacturing industry.

2.2.1 Automation Advantages

Reduction in production time having a machine that is automated
definitely speeds up the production time since no thinking is needed by
the machine, there is better repeatability, and less human error.
Increase in accuracy and repeatability when an automated
machine is programmed to perform a task over and over again, the
accuracy and repeatability compared to an employee is far greater.
Less human error A machine that performs repeated tasks is less
likely to make mistakes than an employee.
Less employee costs by adding automated machines to an
operation, means less workers are needed to get the job done. It also
indicates less safety issues, which leads to financial savings. With
having fewer workers, there are numerous costs that are diminished or
reduced such as payroll, benefits, sick days, etc
Increased safety having automated machines means having fewer
employees who perform tasks that can be dangerous and prone to
injury, which can make the work environment safer.

 Higher volume production investing in automated equipment

creates a valuable resource for large production volumes, which in
turn, will increase profitability.

2.2.2 Automation Disadvantages

Less versatility by having a machine that can perform a certain
task limits to the flexibility and variety of tasks that an employee could
do.
More pollution different types of machines operate using motor
which may require gases or chemicals in order to operate. This can
cause an increase in pollution in the workplace.
Large initial investment automated machines can be one of the
most costly operating costs for a company. With automated machines
running anywhere between thousands and millions of dollars
depending on the type and degree of automation.
Increase in unemployment by increasing the amount of
automation, there are less employees required causing high
unemployment rates.
Unpredictable costs there can be several unpredictable costs that
may exceed the actual cost saved by the automation itself. Some of
these costs could include research and development costs of
automating a process, preventative maintenance costs, and the cost of
training employees to operate automated machines.

3.0 Factors to be selected before selecting an

automated machine
Depending on the operations, automation may or may not be a good fit. If it
is
a
small
operation with low production quantities, the initial investment of purchasing
an automated machine would not be economical. On the other hand, if the
operation has a larger facility with many employees on the shop floor two
fabricate medium to large runs, automated machine wouldLbeLbetterLsuited.

3.1 Injection Molding Machine

It is a manufacturing process in which plastic products are made by

the injection molding process. Injection molding is one of the most widely
used manufacturing processes in the world. Almost all plastic parts are made
by this process.

Pros

Fast

production
Low waste
Low labor cost

Cons
High Initial cost
Part Design restrictions
Separate mold is required for each design which can add
too much initial cost.
Total cost

PKR 7,000,000-9,000,000 approx.

3.2 Laser cutting

Laser cutting uses an

energy emission device to focus a
highly-concentrated stream of
photons onto a small area of a
workpiece
and
cut
precise
designs out of the material.
Lasers are computer-controlled
and can make highly accurate
cuts with a quality finish.

Pros
Excellent accuracy
Fast production

Cons
High initial cost
Overpowered in case of
our operation.
Melting of ABS plastic
may occur
Total cost

PKR 3,000,000 4,000,000

3.3 CNC Water jet

cutting
A water jet cutter, is
an industrial tool capable of
cutting a wide variety of
materials using a very highpressure jet of water, or a
mixture
of
water
and
an abrasive substance.

Pros
Cold cutting
can cut in any
direction

 No thermal stresses
Fast production
Cheaper than Injection molding

Cons
High Initial cost.
Total cost

PKR 4,000,000 4,500,000

3.4 CNC milling

In CNC milling, milling cutters are used to make slots, engraving, and
trimming the edges of the sheet. As it uses CNC router, the accuracy is far
greater than manual operation i.e. up to 0.2mm.

Pros

Fast production.
Accurate up to 0.2mm.
can run 24hrs with periodic changing of cutting tools
Cheaper than other available options.
Minimizes the risk of injury.
Workers are familiar with this process.

Cons
Basic training is required to operate CNC router.
If milling cutters are not replaced on time. It can affect the
quality of the finished product.
Total cost

PKR 600,000

4.0 Selection of automated machine

After carefully
considering the pros and cons of
each machine, the most economical
machine for our process is CNC
milling machine. It can double the
production capacity and can do it
under budget and it also minimizes
the safety risk, making the win-win

situationPforPall.

5.0 Design of CNC Milling Machine

The bed of the CNC machine has been made larger in order to
eliminate the wastage of time in replacing the finished part with new one. On
one side machine would perform the operation and on the other side the
worker would change the finished part with the new one. Thus streamlining
the
process.

Top
View

Isometric View
By considering, different types of available milling cutters. I have listed two
cutters that can be used

5.1 Slitting cutter

This cutter is already in use

and the staff has experience
with this cutter. This tool is
excellent for thin slitting and
slotting.

Pros
Familiarity with the
cutter.
Durable

Cons
Sides of thermoformed

sheet have to be cut

manually.

5.2 Finished End mill

End mills are tools which
have cutting teeth at one end, as
well as on the sides, they are
used for a variety of things
including facing an edge, and
cuttingKslots.

Pros
Smooth finishing.
Accuracy up to 0.02mm.
In our cutting process, process of sides cutting of sheet can be
eliminated by giving depth of 12mm at the outer edges to CNC.

Cons
Reweldment can occur if feed speed is slow.

Chip flow can make a problem that can be solved by

experimenting with both single edge or double edge as well
as single , double and triple flute
In our case, by giving depth of 3mm , the edges of the cutter
might wear.
Due to Reweldment the trimming of edges has to be done in
two rounds which will decrease the production capacity.

6.0 Advantages of using CNC milling

machine
6.1 Production Capacity increase
The current process of manually cutting the thermo foamed sheet
produce an maximum output of 150 units in one shift. Whereas by
introducing the automated machine the maximum production capacity can
be increased to about 300units. The calculations are below.
The 1st cutting path of the profile to trim the outer edges of the
machine is 1320mmx600mm and the second to cut the inner part of profile
is 900mmx495mm. The total cuttingPpathPofPthePCNCPmachinePbecomes
((1320x2)+(600x2)+(900x2)+(495x2))mm =
(2640+1200+1800+990)mm=6630mm=6.63m approx.
The CNC machine has the working speed of 6m/min ,therefore the
time required to cut the path is calculated as
Time required to cut the 6m sheet = 60sec = 1min
Time required to cut the 1m sheet = 60/6 = 10 sec
Time required to cut the 6.67m sheet = 10 x 6.63 = 66.3 sec
Tool setup + machine setup (Allowance time)= 34%
Time required to cut one unit = 90 sec
Time required to cut 250 units = 90 x 250 = 22,500sec = 375mins =
6.25 hrs.
Total amount of unit that can be cut in 8hrs = (8x60x60)/90 =
320 units max
Comparison quantity
Units produced in one
shift

Before(current
process)
150 units max.

After(proposed
process)
320 units max.

6.2 Cost Analysis

The proposed design for the new automated machine needs one
worker to operate it, as compared to two workers that are currently needed.
The following table shows a comprehensive view
Dayshift
Old process
No. of workers
Amount paid
monthly
Amount paid
annually
Evening shift
No. of workers
Amount paid
monthly
Amount paid
annually
Total cost
annually
Amount saved
annually

New process

2
PKR 24000

1
PKR 12000

PKR 288,000

PKR 144,000

2
PKR 24000

No worker is required
Zero

PKR 288,000

Zero

PKR 576,000

PKR 144,000

PKR (576,000-144,000)

PKR 436000

6.2.1 Return on Investment

The initial cost to set up automated CNC milling machine is PKR
600,000. The Return on investment calculated is shown
Amount invested (one time)
PKR 600,000
Amount saved monthly
PKR 36,000
Recovery period
PKR 600,000/36,000= 16.67 months = I yr.
4 months and 19days
ROI in 5 years
PKR 436000x5 = PKR 2.18million-6lac =
1.58million approx.

6.3

Safety risk

During the current process, 3 incidents has been recorded where

workers hand came in contact with the fast rotating cutter. The introduction
of automated CNC machine would minimize the safety risk once and for all.

The CNCs is being used widely, with no noticeable safety incident recorded.
By using CNC, The job of the worker would be to replace the sheets once the
machine has performed its working on it. That would reduce the involvement
of the worker in the process and thus minimize the safety risk.

Conclusion
After carefully studying all the cutting process available, and
considering the budget and safety risks, the process that can
reasonably increase the production capacity , and is under budget
and also minimizes the safety risk is automated CNC milling with
slitter cutter. The initial cost is PKR 600,000 and can be recovered in
a period of 1year 4months and 19 days. The ROI in 5 years would be
1.58 million.
The production capacity would increase more than 100%.
I.e. producing from 150 units in one shift to 300units. And it also
minimizes the safety risks.