Draft Detailed Project Report

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Technology Centre Systems Program – <strong>Draft</strong> DPR for New TC at Rohtak Generalised Tool Rooms are the norm in India due to; Figure 12: Absence of competitive advantage ► high capital investment requirement, ► to cater to a larger market, ► low volumes in specific categories, ► better risk management and ► absence of specialisation Whereas these Tool Rooms produce a variety of tools, they lack competitive advantage in any of the categories due to lower efficiencies mainly due to the technology used. Time taken for delivery of the product is longer due to; ► technology set ups and bottle necks in the manufacturing processes, ► high cost of inputs due to fragmented and unplanned procurement, ► lower design capabilities due to lack of specialisation All these factors result in escalated costs and a further loss of competitive advantage. This reflects in the low volumes of tool production orders, which prevents the industry in tapping into the advantages of large scale production and economies of scale. If MSME Tool Rooms specialise in a particular tool or tool production for a specialized sector, chances of developing competitive advantage become very high. In Germany, a Tool Room of Zitzmann Inc. specialises in particular type of mould development required for manufacturing glass bottles. It has got substantial competitive advantage in the production of such tools. Similarly, in China a Tool Room of China Taoshi Mould has more than 120 machines ranging between 40,000 – 75,000 rpm that specialises in a particular type of moulds whereas for the Indian counterpart the machines range between 12,000 to 20,000 rpm. For instance, on an average, procurement of a certain type of mould from China takes one third of the time it takes to be procured from within India. This is mainly due to low productivity and non-standardised use of tooling components in India. Specialisation in the production process leads to some degree of standardisation enabling the Tool Room to maintain inventory levels which subsequently reduce the turnaround time for procurement. Another important aspect is the absence of design facilities/ good designers in the MSME Tool Rooms. Non alignment of the compensation structure for designers as per that of the market makes it difficult to retain the designers in the long term. Technology Centre Systems Program – DPR for New TC at Rohtak 59
Technology Centre Systems Program – <strong>Draft</strong> DPR for New TC at Rohtak Case studies – Specialised tool rooms in the world Zitzmann GmbH & Co.KG, Germany ► ► ► ► ► Zitzmann glass mould is a large supplier of high quality moulds for the leading glass companies in Germany. Specializes in manufacturing of moulds for complex container designs such as; High quality perfume flacons. Medicine bottles, tins, jars. Shaped bottles 3ml – 4250ml. Block moulds, solid blank mould. Its production portfolio includes complete mould sets, semi-finished parts, accessories in normal casting, special casting steel or bronze, vacuum full profile coating as well as flame spraying full profile coating. It’s in house facilities include latest technologies and production methods like; CAD/CAM design using Catia V5. The latest CNC machines in the turning and milling sector. Full profile welded moulds. Induction heat treatment and additional plasma welding. It has around 120 highly skilled technicians producing more than 30,000 moulds per year. China Taoshi Mould, China ► A well-known and one of the biggest plastic mould designing and manufacturing enterprise. ► Manufacturer of moulds, specializing in plastic moulds for automobiles, house electric equipment, electronic products, motorcycle, and other daily-used pieces etc. ► In house facilities include; Large-size CNC equipment including high speed CNC and EDM machines etc. Advanced CAD/CAM/CAE system. Workstation and software of PRO/E, FFCAE, CIMATRON, etc. ► It has more than 600 employees including middle/high administrators and around 180 technicians. Technology Centre Systems Program – DPR for New TC at Rohtak 60
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