Steel Industry

Steel Industry

For ZBT, opportunities exist to assist steel companies in navigating these challenges and pursuing growth strategies. This can include market analysis, cost optimization, process improvement, organizational design, and growth strategy development etc.

The steel industry has a significant impact on the environment and is subject to increasing regulations and stakeholder pressure to adopt sustainable practices. ZBT is supporting steel companies in developing and implementing sustainability strategies, including reducing greenhouse gas emissions, improving resource efficiency, reducing waste and improving profitability.

Key Issues

Better management practices, and effective policy measures to promote sustainability, reduce costs, and ensure the long-term viability of the industry.
Poor capacity utilization

Poor capacity utilization is a significant issue in the steel manufacturing industry. It occurs when a steel mill is producing at a lower rate than its maximum capacity, resulting in lower efficiency and reduced profitability. There are several factors that contribute to poor capacity utilization, including: Weak demand, Competition from import, Ineffecient production processes, Outdated technology and poor management practices.

Steel manufacturers need to focus on improving production efficiency and adapting to changing market conditions. This may involve investments in new technologies, better management practices etc.

Cost
Competitiveness
Cost competitiveness is a key issue in the steel manufacturing industry, as steel producers face increasing competition from low-cost producers, particularly in emerging economies. Factors that contribute to the cost competitiveness of the steel industry include: Labour cost, Energy cost, Raw material cost, Spares cost and other overhead costs. To improve cost competitiveness, steel manufacturers need to focus on reducing costs, improving efficiency, and adapting to changing market conditions. This may involve investments in new technologies and strategic partnerships with suppliers.
Poor Yield

Poor yield is a common issue in the steel manufacturing industry, as it refers to a low rate of production relative to the theoretical maximum capacity. Poor yield can result in higher production costs, reduced profitability, and lower competitiveness. There are several factors that can contribute to poor yield in steel manufacturing, including: Inefficient production processes, Poor raw material quality, Equipment failure, Labor issues, Environmental and safety regulations.

Improving yield in a steel manufacturing plant can be achieved through a combination of different methods, including: Raw material optimization, Process optimization, Energy efficiency, Waste management, Employee training, Maintenance and upkeep, Process innovation etc.

Zero flexibilities in Changeovers

Changeovers in the steel manufacturing industry refer to the process of switching from producing one type of product to another. Changeovers can be time-consuming and complex, and can lead to a number of issues, including: Downtime, Quality control, Increased operation costs, Operator errors and maintenance etc.

To minimize these issues,ZBT comes with best practices such as SMED concept, standardizing changeover procedures, using advanced technologies to automate changeovers, and providing employees with proper training and resources. Also Lean Manufacturing methodologies to streamline their changeover processes and reduce the amount of downtime and resources required.

How we help

Profitability improvement

Profitability improvement- Improving profitability margins in the steel manufacturing industry involves a combination of cost-cutting measures, operational efficiencies, and revenue growth strategies. Here are some levers to improve profitability margins in steel manufacturing: Control production costs, Increase efficiency, Diversify product portfolio, Focus on high-margin products, Reduce overheads, supplier consolidations, RM price variations reduction etc.

OEE Improvement

OEE (Overall Equipment Effectiveness) is a performance metric used to measure the efficiency of production processes in a manufacturing plant. Improving OEE in a steel manufacturing plant can have a significant impact on profitability margins. Here are some ways to improve OEE in a steel manufacturing plant: Implement predictive maintenance (Including CLRI & PM), Reduce the risk of human errors with the help of low cost automations, Reducing the risk of production errors, Track and analyze production data, Reduction in downtimes, changeovers time reduction etc.

SMED (Single minute exchange of die)

SMED (Single-Minute Exchange of Dies) is a methodology used to reduce the time required to changeover from producing one product to another. Implementing SMED in a steel manufacturing plant can help to increase production efficiency and improve profitability margins. Here are some steps for implementing SMED in a steel manufacturing plant: Identify opportunities for improvement, Separate internal and external activities, Streamline the changeover process, Implement quick die change systems with the help of Gantt charts, Tarin people etc

Yield Improvement

Improving yield in a steel manufacturing plant involves reducing waste, increasing efficiency, and optimizing production processes. Here are some ways to improve yield in a steel manufacturing plant: Implement process control systems, Reduce scrap and rework, Enhance material utilization, mplement lean manufacturing principles such as continuous improvement, standardization, and waste reduction, Improve energy efficiency etc

Where we help

SMS and Foundries-

SMS and Foundries Process Introduction-

In the Steel Making Shop (SMS) process, the raw materials like scrap, pig iron, Direct Reduced Iron (DRI), alloy metals, and coal are melted and refined in furnaces like induction or electric arc furnaces. The resulting molten steel is then continuously cast into a mold using a continuous casting machine (CCM) and cooled to form long billets or blooms. These billets are then cut to the desired length for rolling mill customers.

Whereas, In foundries, Induction furnaces are typically used to melt the scrap / pig iron etc., which is then poured into a mold to create the desired casting shape. Once the metal has solidified, the casting is removed from the mold and then cleaned up as required. Foundries may use a range of casting methods and techniques depending on the requirements of the part being produced.

General Performance Improvement Areas in SMS Business:

  • Reducing the melting cycle time production
  • Maximising avg. heat weight
  • Improving yield (RM to LM to billet)
  • Minimising Specific Power
  • Extending Refractory lining life

DRI (Direct Reduced Iron)

The process of Direct Reduced Iron (DRI) involves eliminating the oxygen content from iron ore, as metals naturally occur in the form of oxides with impurities like SiO2, Al2O3, and others. The elimination of oxygen is accomplished by heating the iron ore to a temperature range of 900-1100°C in a kiln and reducing the ore in its solid-state with carbon monoxide generated from coal.

  • General Performance Improvement Areas in DRI Business:
  • Improving prime-grade production (range bound degree of matelisation Fe(M), %S and %(-)1mm in product)
  • Minimising Carbon Consumption (based on degree of matelisation and prescribed input material)
  • Improving Production (as per rated capacity for a prescribed input material)
  • Higher Utilisation of waste gas (steam generation through WHRB)
  • Extending Campaign life
  • Shortening Shutdown period

Seamless and welded steel tubes

We as a ZBT help in to improve your end to end performance improvement, also provide advice and support to organizations to help them improve their operations and reach their strategic goals with the help of down times reduction, mills changeover times reduction, 3T SOPs implementation, debottlenecking of the manufacturing line etc. In steel seamless tubes manufacturer, ZBT helps with a number of business transformation initiatives, including Process optimization, Cost reduction, Market analysis, Organizational design, Technology integration etc.

Blast Furnaces

ZBT is helping to improve blast furnace performance by conducting a thorough analysis of the furnace's operation, identifying areas of inefficiency, and developing strategies to address them. This may involve optimizing the furnace's raw material inputs, improving its energy efficiency, implementing better maintenance and repair practices, and enhancing the skills of its operators. The ZBT also uses data analytics and simulation tools to model the furnace's performance and forecast potential improvements. Ultimately, the goal is to increase the furnace's productivity, reduce its costs, and improve its overall performance, while ensuring safety and environmental compliance.

Loding Image

Impact Delivered

Financial gain or improved customer service level

We work with clients to address their key business issues and in our approach we link the financial parameters or customer service level with the process primary parameters which can be managed and controlled through accurate and precise outcome based processes. Learn more about our successes through case studies...

Reach out to us

Are you facing business challenges ? Would you like to begin the improvement journey ?