Heat treating is the controlled heating and cooling of a material to achieve certain mechanical properties, such as hardness, strength and the reduction of residual stresses. Many heat treating processes require the precise control of temperature over the heating cycle.Typically, the energy used for process heating accounts for 2% to 15% of the total production cost. The objective of this work is to develop a comprehensive furnace model by improving the current coal fired furnace to an electrical element fired furnace.This study is mainly concerned with the continuous improvement in all work areas from high level strategic planning and decision making to detailed execution of work elements on the shop floor particularly at the coal fired pre-heating furnace at the machine shop. I believe that the cost of production can be reduced to minimal which can improve the company's profit margin. This will also lead to continuous improvement of results in all work areas and as a result continuously improving capabilities, people, processes, technology and machine capabilities.