Highest ever productions and capacity utilisation achieved by transforming integrated steel value chain processes

Explore our Real Achievements

Improving performance and capacity utilization of a Billet Steel, Structural Rolling, Sponge Iron, Power and Ferro Alloys manufacturer through ACE (Accuracy Control Enterprise) Approach,  RCM (Reliability Centered Maintenance) and Effective Production Planning

Client

Leading Integrated Steel Producer in Chhattisgarh
Client context

Our Client was a leading producer of Steel (Billet), Structure (Beam, Channel Angle etc.), DRI (Pellet & Iron Sponge) and various Ferro alloys (SiMn, & FeMn). It is meeting the power requirement from its Captive Power Plant. All plants were operating at 70–75% of total integrated steel plant installed capacity of 0.3MMTPA.M

As customer are being more aware and stringent for product quality tolerances, So our client was pushed to achieve better product quality tolerances by improving the production and quality processes

While there were attempts to identify capacity utilization & yield improvement, Sp. Consumption (Carbon & Power) reduction opportunities internally they were only incremental and did not meet the promoter's expectation. Therefore the client approached us to apply its combination of business process, operations excellence and analytic expertise to uncover greater performance.

ZBT's Approach

Framed the issue and made sense of the data

ZBT's operation excellence experts first framed the key issues faced by the client by having discussion and jotting down their pain points pertaining to operation, maintenance and quality. We then identified and requested the most relevant data sets available internally for further analysis.

Analysis the last 2 year data

Using an array of analytic tools by ZBT team, analyzed last 2 years data and prepared the summary report of key business parameters and identified key issues / gaps by analyzing trends for all kind of raw material mix plant wise.

Validation of the key issues with client

After identified key issue and gap, we organized workshop with respective heads, shown the data trends and discussed the gap and their reasons briefly to validate the issues such as downtime due to changeovers, function (mechanical, electrical, operation) breakdowns, yield loss, grade / chemistry rejection, lack of proper planning in the plants etc.

Set the Baseline and get approval

Based on the last 2 year data, finalized the business parameters and their baseline figures then discuss the same with respective head and management and finally got approval with sign off.

Set the all Business Parameters, their Targets & Control variation

Set the all business parameters, their Targets and identified primary process parameters which can be controlled from shopfloor by ensuring less variation in 4M (Man, Material, Methods & Machine) parameters in terms of MLTQ (Mass i.e. quantity, Length i.e. displacement or dimension, Time i.e. time taken and Quality).

Determined low cost automation and capex requirement

Identified the processes where low cost automation could be done to save the time, cost & rework / error of the process and ROI was less than 12 months. ZBT's operation excellence team designed the concept and connected with it's automation partners/suppliers and OEMs for visit the client's plant to understand the changes to be made and asked for the quotations and finalized the cost on less than 12 months ROI

Established proof of concept and piloted the solution

  • 1. Introduced 3T SOPs (Target, Tolerance and Test and action points if out of tolerance) for entire value chain operation, quality process.
  • 2. Changeover (SMED) & Shutdown Gantt chart along with the activities segregation what can be done Simultaneously, in series and as a preparatory work.
  • 3. Maintenance Scheduled , 3T SOPs and CLRI, PM & CBM
  • 4. Developed the inter plant SLA (Service level agreement) in terms of QQTC (Quality, Quantity, Time & Cost)
  • 5. Re-define the department and HOD's KPIs, R&R and measurement parameters, introduced daily job card and ODIF (On day in full) for a SURP (Single unit replication of process).
  • 6. 5S implementation plant wise

Plant wise Approach

SMS (Steel Melting Shop):

  • Change the Methodology of Charging Scrap and Pig Iron from Manual to by Crane (Weighted Quantity based on Charge Mix Sheet)
  • Standardized Former Dimension based on Furnace designed parameters
  • Change in Methodology (Time of Charging & weight calculation) of Coal charging in LM preparation
  • Standardized the Process of testing Yield in 5Kg Furnace to achieve highest Lab yield
  • Implemented Charge Mix Sheet based on the Raw Material chemistry Heat-wise
  • 3T SOP (Lining and Patching)
  • Implemented Charge Mix Sheet based on the Raw Material chemistry Heat-wise.
  • 3T SOP (Liquid Metal Preparation and SiMn Addition)
  • Changed the length of First and Last Piece from 6.1 mtr to 2.1 mtr to improve hot charging in rolling mill
  • Increase in Avg. Heat Weight
  • 3T SOP (CCM Operation)
  • PM (3T SOP Equipment wise)
  • CLRI (3T SOP and Checklist)
  • TTSC (Training Testing Score & Certified) of respective Team
  • Process Monitoring
  • 5S Implementation

Rolling Mill

  • Reduced Section changeover time from 9 hrs to 3.5 hrs by implementing SMED Tool (Gantt Chart Implementation)
  • 3T SOP (Rolling Process)
  • Process Monitoring (Input Parameter variation control through continuous feedback)
  • Improved Material Handling process and Communication process
  • Increased yield by reducing miss roll and end cut length
  • Reduced Idle running power consumption by Training and Educating working Personnel
  • PM (3T SOP Equipment wise)
  • CLRI (3T SOP and Checklist)
  • TTSC (Training Testing Score & Certified) of respective Team
  • Process Monitoring
  • 5S Implementation

DRI (Direct Reduced Iron):

  • 3T SOP (Kiln Operation and It's control, Temperature control, Air Control etc.)
  • Increased Accuracy of %Fe(M) reporting by QC by Standardizing QC testing Method
  • Defined Target to reduce High Metallization of Sponge Iron to improve the yield
  • 3T SOP (%Fe(M) Testing and Sampling)
  • PM (3T SOP Equipment wise)
  • CLRI (3T SOP and Checklist)
  • TTSC (Training Testing Score & Certified) of respective Team
  • Process Monitoring
  • 5S Implementation

Ferro-Alloy Division

  • Identified and resolved issues causing Low- Load Operation of Furnace
  • Installed Sliding Gates On Furnace Operation Floor (to improve yield and reduce the power consumption)
  • Accurate Reporting of RM Consumption
  • Started using CI Pan instead of Sand Bed Tapping
  • Started using Forklift for efficiently charge raking
  • Material Reconciliation (FG-Prime & Non prime & by Product-Slag)
  • 3T SOP (Si-Mn Making)
  • PM (3T SOP Equipment wise)
  • CLRI (3T SOP and Checklist)
  • TTSC (Training Testing Score & Certified) of respective Team
  • Process Monitoring
  • 5S Implementation

Client Benefits

Immediate additional EBITDA gain of INR 100 Crore

Our solution identified and realized immediate annualized cost savings of INR 95-100 Crore by optimizing the process outcome & control process variation by setting standards and measuring accuracy and Business process with high variability (means outcomes can range from good, to mediocre, to disastrous)

Further Improved Productivity, Higher Accuracy and Precision by upgrading Ppk value and Improved Parameters by process accuracy.

ZBT's Achievement

SMS (Steel Melting Shop):
  • CYCLE TIME: Reduced Cycle Time from 3:15 Hrs to 2:50 Hrs.
  • AVG. HEAT WEIGHT: Increased Avg. Heat Weight from 11 MT to 12.25 MT
  • LM YIELD GAIN: Increased LM Yield gain from 0% to +0.65 %.
  • LM TO BILLET YIELD: Increased LM to Billet Yield from 98.48% to 98.72%
  • SPEC. SiMn CONSUMPTION: Reduced Specific SiMn Consumption from 23.4 to 19 Kg/MT
  • SPEC. POWER CONSUMPTION: Reduced Specific Power Consumption from 900 to 825 units/MT
  • REFRACTORY PATCHING LIFE: Increased Patching Life from 9.67 to 15.5 Heats per Patching
  • BILLET REJECTION: Reduced Billet Rejection due to SMS from 7.70% to 2.5 %."
Rolling Mill
  • Improved %DIRECT BILLING CHARGING (77.42% to 88.55%) by reducing the breakdowns & improving Billet Quality
  • Reduced SECTION CHANGEOVER TIME from 9 hrs to 3.5 hrs by implementing SMED Tool (Gantt Chart Implementation)
  • %YIELD (Billet Charged to FG): Improved % Yield (94.64% to 95.82%) by reducing Miss-rolls and controlling Billet Length variation
  • SPECIFIC POWER CONSUMPTION: Reduced Sp. Power Consumption from 79.8 to 74.4 Units/MT"
DRI (Direct Reduced Iron):
  • PRODUCTION: Increased Avg. daily production based on the Coal Ratio (317 to 364 MTD for 350 TPD Kiln and 84 to 114 MTD for 100 TPD Kiln
  • %A-GRADE: Improved A Grade Production by 8.9% across all Iron Ores
  • SPEC. CARBON CONSUMPTION: Reduced Spec. Carbon Cons 12.4 Kg/MT across all Iron ore
  • %YIELD: Increased Yield by reducing high Metallization of Sponge Iron, Reduced backflow, Improved material reconciliation (RM & FG)"
Ferro-Alloy Division
  • PRODUCTION: Increased Avg. daily production from 80.8 MT to 103.4 MT
  • %Mn RECOVERY: Increased %Mn Recovery from 77.2% to 81.9 %.
  • SPEC. CARBON CONSUMPTION: Reduced Spec. Carbon Cons from 424 to 401 Kg/MT
  • SPEC. POWER CONSUMPTION: Reduced Spec. Power Cons from 4293 to 4020 units/MT"

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