Page 55 - PPO Diaries

PPO Diaries

❖ A brief overview of the project

Title of the project:

“Life cycle cost and equipment replacement analysis of key
manufacturing equipment”

Basically, the project is based on the concept of Total Cost of
Ownership (TCO). Equipment life cycle cost is calculated by
adding up two kinds of cost:

1. Ownership cost: Initial buying price, Interest cost,
Insurance cost etc.
2. Operating cost: Utilities cost, Repair & Maintenance

cost, Spare parts cost, Wages etc.
MANIDEEP SINGH DUHAN
So, I had to visit various plant locations of Cipla for collecting
these data of various equipment. Then economic life of
CIPLA equipment is calculated which is attained when the total life

__________________________________________ cycle cost is at its minimum.
Based on these data, equipment replacement year is forecasted
GENERAL INFORMATION by considering parameters such as Operating cost of both old

and new equipment with which its going to be replaced,
Batch: PGDIM 25 Opportunity loss of old equipment due to downtime and speed

loss, EMI of new equipment and remaining life of old
BTech: HBTI Kanpur
equipment.
Work Ex: Fresher Finally, I made a dashboard using Excel VBA in which if you

input the data of ownership and operating cost related to any equipment, it will provide the forecasted

equipment replacement year and also a dashboard was made to compare various equipment performance based
on these data which helps in vendor selection whi le replacing with a new equipment.

❖ How is a normal day at the Internship?

As my internship was at various plant locations and Head Office, so my everyday was not similar. Normally a

plant day for me was based on understanding the process of manufacturing and collecting data from various

departments for the project.

A day in Head Office was mainly dedicated to work on the data collected, literature review of various research

papers, having short meeting with people of same department to better understand and improvise the project.
Also, in every 2-3 days there used to be a meeting with my project guide so that I keep him in loop and discuss
the problems that I’m facing and how it can be resolved.

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