A

PROJECT REPORT

ON

MANUFACTURE OF AUTOMOBILE PISTON

PREPARED BY

G K SINHA
ASSTT. DIRECTOR GR-II (MECH)
MSME-DI PATNA
OCTOBER 2012
 PROJECT PROFILE

PRODUCT : AUTOMOBILE PISTON

PRODUCT CODE : 331159000 (SAMPLE)

CATEGORY : MECHANICAL

QUALITY & STANDRADS : IS 12025 : 1987

MONTH & YEAR : OCTOBER, 2012

PREPARED BY : G.K SINHA

ASSTT. DIRECTOR GR-II (MECHANICAL)
MSME – DI,
PATLIPUTRA INDUSTRIAL ESTATE,
PATNA (BIHAR)

TELE/FAX :
INTRODUCTION
The automotive industry is the key driver of any growing economy. The automobile industry
comprises automobile and auto component sectors. The component production range
includes engine parts 31%, drive transmission and steering parts 19%, suspension and
braking parts 12%, electrical parts 10%, equipments 12%, body and chessis 9% and others
7%. Indigenous firms like Bharat Forge, Sundaram Fasteners, Minda Industries and Gabrial
India Ltd. are in the limelight in auto component sector.

This project report is mainly focussed on manufacture of “automobile piston”, one of the
most demanding engine parts.

MARKET POTENTIAL
The Indian automobile industry is growing at a very high rate with sales of more than one
million passenger vehicles per annum. The overall growth rate is 10-15 % for automobile
industry and 28 % for automobile component sector annually. Today’s competitive market
has put all major automobile companies upfront to design and develop varieties of vehicles
as per customer demands. The replacement market is also likely to expand. This indicates
scintillating prospects for much faster growth and development of new auto component
industry.

The Auto Component Manufacturers Association (ACMA) has pegged domestic demand for
auto components at $ 20-25 billion in 2015 from current demand of approximately $ 10
billion.

BASIS AND PRESUMPTIONS

1. The production capacity of the unit has been worked out on the basis of single shift
of 8 hours a day for 300 working days a year ( i.e, 25 days a month ).
2. The unit is expected to work at 70% efficiency of installed capacity with yield rate of
95%.
3. Wages for labour, etc. have been considered as per the prevailing market rates in
accordance with the Minimum Wages Act. The proprietor is considered as the
Manager.
4. The unit is assumed to run in a rented/leased building.
5. The cost of machinery and equipments have been taken as per the rates quoted by
manufacturers/suppliers.
6. The cost of raw material and other inputs are based on current prices prevailing in
local market.
7. Interest rate for fixed and working capital investment have been calculated on an
average rate of 16%.
IMPLEMENTATION SCHEDULE

S.No. Name of Activity Period

1. Preparation of Project Report
1(a) Market survey 4 Weeks
1(b) Calling Quotations 6 Weeks
1(c) Scheme Preparation 2 Weeks
2. Provisional registration as SSI ( EM1) 4 Weeks
3. Clearance from Pollution Control Board 4 Weeks
4. Financial arrangement from banks/financial institutions 8 Weeks
5. Selection of site for unit 3 Weeks
6. Purchase of Plant, Machinary and Equipments 8 Weeks
7. Erection, Electrification and Commissioning of Machines 4 Weeks
8. Procurement of Raw Materials, Tools, Guages and Measuring 3 Weeks
Equipments, etc.
9. Recruitment of Staff and Workers 4 Weeks
10. Trial run and Commencement of Production 1 Weeks
Total = 51 Weeks

TECHNICAL ASPECTS
Automobile Piston - Introduction :
In an Internal Combustion engine, piston converts the thermal energy of fuel into
mechanical energy. The main functions of the piston are :-

(a) To transmit the gas forces via connecting rod to the crank shaft.
(b) To seal in conjunction with the piston rings and combustion chamber against gas
leakage to the crankcase and to prevent the infiltration of oil from crankcase into the
combustion chamber.
(c) To dissipate absorbed combustion heat to the cylinder liner and cooling oil.

Operating Conditions :
Pistons are subject to high mechanical and thermal loads. The mechanical loads on the
piston result from extreme pressure cycles with peak pressures upto 200 bar in combustion
chamber and huge forces of inertia caused by extremely high acceleration during the
reciprocating motion of piston. The thermal loads on the piston result from combustion
process with peak gas temperatures in the combustion chamber between 1800 to 2600 °C.

For pistons, these challenges translate into maximum strength requirements in the relevant
temperature range combined with minimum weight.
Raw Material :
Aluminium Alloys are the preferred material for pistons both in gasoline and diesel engines
due to their specific characteristics :- low density, high thermal conductivity, easy
machinability, high reliability and very good recycling characteristics. Proper control of the
chemical composition, processing conditions and final heat treatment results in a micro
structure which ensures the required mechanical and thermal performance, in particular the
high thermal fatigue resistance.

The standard material for piston is Al-12%Si alloy containing in addition approximately 1%
each of Cu, Ni and Mg.

Process of Manufacture :
The aluminium alloy is formed into roughly shaped piston blanks either by casting or
forging. Thereafter, piston blanks are machined to final specification.

Cast Pistons : They are most common due to the simpler and less expensive manufacturing
processes involved. The majority of pistons are produced by gravity die casting process.

Forged Pistons : They are made from higher strength aluminum alloy billets which are
pressed into their basic shape rather than poured. Forged pistons have a finer
microstructure than cast pistons with the same alloy composition.

Details of Processes involved in Manufacture of Piston by Casting Process :-

1. Foundary : Foundary is the beginning of piston manufacturing. At the foundary, die

is prepared for taking molten aluminium alloy by heating it to operating temperature
for approximately one hour. This process allows the die to readily accept the molten
material when it is poured. The process starts by heating the aluminium alloy well
above the melting point but below its boiling point, i.e, upto 700°C. Molten
aluminium alloy is then poured into the die through sprue. The material is then
allowed to cool into the die by placing it into a bin of hot water. Thereafter, the
casting is prepared to ensure improved qualities.

2. Pin Boring : At this stage, the piston casting has the gudgeon pin hole rough
machined and the locating bung (i.e, base of the casting) machined to allow
placement of the casting in other machines. The locating bung is turned on a simple
lathe, thereafter pin boring is carried out on a pin borer.

3. Turning : Turning of the piston casting is carried out on pricision lathe machines.
The castings are placed in the lathe on a bung and held in place by a solid rod
through the gudgeon pin hole. A draw bolt is activated in the chuck which draws the
rod towards chuck and holds the piston in place. The piston is now ready for
finishing processes.
 4. Finishing Processes :

(a) The first stage of finishing processes include drilling oil holes in gudgeon
pin bosses and oil ring grooves, cutting slots in the skirt, valve relieving
and crank relieving.
(b) Grinding : This process involves the final size being machined on the
piston. The process involved is cam grinding which machines the skirt of
the piston only.
(c) Reaming : This is the final machining process which involves the piston
being placed in a bath of oil and reamed to reach the final size required.

5. Pin Fitting and Final Inspection : At this stage, the piston is cleaned,
fitted with gudgeon pin, size and category stamped and then sent to dispatch.

Quality Controls & Standards :

As per IS 7793 : 1975, Aluminium Alloys for I.C engine pistons; basically four grades of the
alloys have been specified namely – 2285, 4658, 4928-A and 4928-B with various alloying
compositions like Si, Cu, Mg, Fe, Mn, Ni, Zn, etc.

Hardness has been specified between 90 to 140 HB with tensile strength ranging from 165
to 275 N/mm2 for various grades.

Pollution Control :
As foundary shop is there which requires strict measures to minimize pollution. Therefore
consent of the State Pollution Control Board is essentially required which will remain valid
till the unit modifies or changes its process.

Energy Conservation :
There is a little scope for energy conservation in this industry except in the foundary, where
the furnace should be properly insulated to reduce radiation losses and shold be fitted with
automatic pyrometer control to maintain proper temperature in the furnace.

Production Capacity :
Production Capacity (Per annum) = Prodn. rate per hour X Yield rate X
Efficiency X Hours per shift X No. of shift
per day X No. of working days per month
X No. of month per annum
Here,

Prodn. rate per hour = 12

Yield rate = 95%
Efficiency = 70%
Hours per shift = 8 hours
No. of shift per day = 1 shift
No. of working days per month = 25 days
No. of month per year = 12 months

Now,
Production Capacity (Per annum) = 12 x .95 x. 70 x 8x 1 x 25 x 12

= 19152 Nos.

= 19000 Nos. (Say)

FINANCIAL ASPECTS
1. FIXED CAPITAL
(i) Machines & Equipments :

S.No. Particulars Qty. Rate per Amount(In

unit(In Rs) Rs)
1. Crucible type Tilting Furnace (Electric), 4 70000/- 280000/-
250 kg
2. Boring Machine 1 50000/- 50000/-
3. Lathe Machine, Bed length 4’6”, swing 4 60000/- 240000/-
dia 350 mm, 1.5 KW / 2 H.P
4. Precision Lathe Machine 2 80000/- 160000/-
5. Pillar type Drilling Machine, 0.5 H.P 1 35000/- 35000/-
6. Bench Grinder double ended, 0.25 H.P 1 15000/- 15000/-
7. Tempering Furnace, 400°C 1 70000/- 70000/-
7. Laboratory comprising chemical and 1 200000/- 200000/-
physical testing

8. Bench-Vice, Table, Fixtures, Measuring L.S 100000/- 100000/-

Instruments, Moulding box, Die, Guages,
etc
9. Generator and Other Electrical 1 100000/- 100000/-
Accessories
Total = 1250000/-
(ii) Pre-Operative Expenses : Rs 70000/-

( iii ) Electrical and Mechanical installation @ 10% of Plant and Machinary cost :

Rs 125000/-

(iii ) Office/Lab. Furniture & Equipments : Rs 100000/-

Total Fixed Capital = 1545000/-

2. WORKING CAPITAL (PER MONTH)

(i) Salary & Wages :

S.No. Salary and Wages Nos. Salary (In Amount (In

Rs) Rs)
1. Supervisor 2 12000/- 24000/-
2. Storekeeper 1 7000/- 7000/-
3. Office Assistant 1 9000/- 9000/-
4. Skilled Worker 4 10000/- 40000/-
5. Semi-skilled Worker 5 8000/- 40000/-
6. Unskilled Worker 3 7000/- 21000/-
7. Maintenance Fitter 1 9000/- 9000/-
Total = 150000/-
Perquisites (i.e, Bonus, Incentives, Allowances) @ 15% = 22500/-
Grand Total = 172500/-

(ii) Raw Materials :

S.No. Raw/Input Material Qty. Rate per Amount (In

unit Rs)
1. Aluminium Alloy, Al-12%Si 480 110/- 52800/-
Kg(considering
piston wt 300
gm)
2. Packing Material (Moulded 1600 Nos. 7/- 11200/-
hard paper cartoon)
Total = 64000/-
(iii) Utilities :

S.No. Utilities Consumption Rate per Amount (In

unit Rs)
1. Electricity 4000 Unit 5/- 20000/-
2. Fuel 200 Litre 50/- 10000/-
3. Water 100 KL 10/- 1000/-
Total = 31000/-

( iv) Other Contingent Expenses :

S.No. Particulars Amount (In Rs)

1. Building rent 25000/-
2. Insurance 10000/-
3. Office stationary and postage 3000/-
4. Publicity and advertisement 8000/-
5. Travelling and conveyance 7000/-
6. Legal and other expenses 5000/-
7. Repair and Maintenance 8000/-
8. Consumable stores 6000/-
9. Miscellaneous expenses, i.e, Taxes, etc. 20000/-
Total = 92000/-

Total Working Capital, i.e, Recurring Expenditure (For 1 Month) = 359500/-

Total Working Capital, i.e, Recurring Expenditure (For 3 Month) = 1078500/-

Total Capital Investment (Fixed+Working) = 2623500/-

FINANCIAL ANALYSIS
1. Cost of Production (Per annum)
S.No. Particulars Amount (In
Rs)
1. Total annual Recurring Cost 4314000/-
2. Depreciation on Machines & Equipments @10% 90000/-
(Excluding furnace)
3. Depreciation on Furnace @20% 70000/-
4. Depreciation on Office/Lab Furniture & Equipments 20000/-
@20%
5. Interest on total Capital Investment @16% 419760/-
Total = 4913760/-
2. Turn-over (Per annum)
S.No. Item Sold Qty. Rate per Amount (In
(In nos.) unit Rs)
including
VAT @ 13%
1. Automobile Piston 19000 360 6840000/-

3. Net Profit (Per annum)

Net Profit (Per annum) = Total turn over (Per annum) – Total cost of prodn. (Per annum)

= 6840000 – 4913760

= 1926240/-

4. Profit Ratio

Net Profit Ratio = (Net profit per annum / Total turnover per annum) x 100

= (1926240 / 6840000)x100

= 28.16 %

5. Rate of Return (On Investment)

Rate of Return = (Net profit per annum / Total capital investment) x 100

= (1926240 / 2623500) x 100

= 73.42 %
6. Break Even Point (B.E.P)
Fixed Cost

S.No. Particulars Amount (In Rs)

1. Interest on total capital investment 419760/-
2. Total depreciation 90000/-
3. Building rent 25000/-
4. Insurance 10000/-
5. 40% of other contingent expenses (excluding rent 22800/-
and insurance)
6. 40% of salary and wages 69000/-
Total = 636560/-

Break Even Point (B.E.P) = [Fixed cost / (Fixed cost + Profit)] x 100

= [636560 / (636560 + 1926240)] x 100

= 24.84 %
ADDRESSES OF MACHINE & EQUIPMENT SUPPLIERS
1. Precision Machine Tools
16/1, Gopi Nath Estate, Part – II,
Swami Narayan Chamber, NH-8
Ahmedabad – 382 415.
2. J.P Machine Tools Private Ltd.,
1575, G.T Road, Dholewal Chowk For lathe, boring, drilling and grinding m/c
Ludhiana – 141 003.
3. Simplex Engg. Works,
G.T Road, ASR Bypass Chowk,
Batala, Punjab.
4. Steel Fast Engg. (P) Ltd.,
16/2, Mathura Road,
Karkhana Bagh,
Faridabad – 121 002. For crucible furnaces
5. D.G Enterprise,
J.N Bose Road, Subhash Park,
Kolkata – 700 147.

ADDRESSES OF RAW MATERIAL SUPPLIERS

1. Kolisetty Alloy Castings
16-H, IDA, Balanagar,
Hyderabad.

2. Aluminium World,
Opp. Hari Masjid,
Old Mondha Road,
Aurangabad (Maharashtra).

3. Bharat Aluminium India,

Nath Madhav Road,
Ist Khattar Gali,
C.P Tank,
Mumbai.