project on steel industry for opm
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SUNIL SONY
ROLL NO. 26
EPGDM – 4
GLOBSYN BUSINESS SCHOOL
PROJECT ON INTEGRATED STEEL PLANT
SUBJECT - OPM TERM – II JULY 2009
OPM PROJECT JULY 2009
TABLE OF CONTENTS
Page No.
1. Product 02
2. Process Steps 03
3. Location 05
4. Layout Planning
07
5. Capacity Planning 09
6. Production & Operation Planning
10
7. Quality Requirement 12
8. Quality Assurance and Quality Control Plan
13
Sunil Sony, EPGDM-4 1
OPM PROJECT JULY 2009
1. PRODUCT
Integrated Steel Plant (Finished Product TMT Bars)
Sl. No.
ModuleProduction per Annum
1. 2 x 100 TPD DRI Unit 60000
2. 2 x 8 T SMS Unit 80000
3. 80 MT Rolling Mill Unit 80000
4. Captive Power Plant 5 MW
Overview of Indian Steel Industry
The Indian steel industry has a history of 125 years and was a regulated
industry till 1991 when it was de-licensed and private players were
encouraged to manufacture steel. The sector received high priority for
automatic approval for foreign direct investment. The demand for steel was
expected to race ahead after liberalization so additional manufacturing
capacities were added.
The Indian steel industry ranks 5th in the
world with an annual production of 53.1
million tonnes in 2008. India accounts for per
capita steel consumption of 38 kg/year, as
against that of 180 kg/year in China, 600
kg/year in Singapore and 400 kg/year in the
European Union and the US. The country’s per
capita steel consumption will have to rise
substantially to a level comparable with that of China to realize the country’s
expansion plans in manufacturing, transportation and power infrastructure.
Correspondingly, the steel output and demand in India is expected to surge
to 110 million tonnes per year by 2020 from 53.1 million tonnes in 2007.
Sunil Sony, EPGDM-4 2
OPM PROJECT JULY 2009
Major Steel Players in Eastern India
Steel Authority of India Tata Steel Limited Essar Industries Limited Jindal Steel & Power Limited Bhusan Steel Limited
2. PROCESS STEPS
PROCESS FLOW CHART
Brief Description DRI: Sponge Iron is manufactured by using coal based technology
where iron ore is reduced to iron in a rotary kiln fired by non-coking
coal. Input charge comprising of iron ore, coal and dolomite are fed
into the kiln. The Sponge Iron is then discharged through the cooler
and discharge on to a heat resistant belt conveyor to be carried into
product processing zone.
Steel Melting Shop: Sponge Iron is charged into Steel Melting Shop
with scrap and pig iron to manufacture mild steel. The liquid steel is
cast into semi-finished products such as billets, blooms, slabs etc
Rolling Mill: Billets produced are first heated in a reheating furnace
until they are red hot (1200°C) and then passed through roughing
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OPM PROJECT JULY 2009
stand. A stand is a collection of steel rolls (or drums) on which pressure
can be applied to squeeze the hot steel passing through them, and
arranged so as to form the steel into the required shape. The roughing
stand is the first part of the rolling mill. Each pass gradually changes
the shape and dimension of the steel closer to that of the required
finished product and the last pass delivers finished size of the product.
3. LOCATION
Chosen location for the Integrated Steel Plant to produce Finished Steel will
be Purulia, West Bengal. Following are the Location Advantages:
Purulia in the state of West Bengal declared as Industrial estate it is located
adjacent to the State Highway. Purulia is now one of the most important
industrial destinations of the state of West Bengal.
Land: Purulia has good road connectivity for the purpose of man and
material movement. As the location has a barren (non agricultural)
area therefore acquisition of land will not pose any kind of difficulty
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OPM PROJECT JULY 2009
Civic Amenities: The plant site is situated near Asansol town. All
necessary civil amenities (e.g. educational institution, college, school,
hospital etc) are available.
Transport: The nearest railway station is Purulia and Asansol. The
nearest Airport is located at Kolkata which is 325 Kms away from the
site. This gives convenience in man & material movement
Manpower: Availability of Skilled labour will not pose any problem as
various engineering institutes are located in the nearby area.
Water: The requirement of the fresh water to meet process make up
and drinking needs will be made available through pipe lines from
nearest Kasai River.
Power: The total power requirement for the proposed unit can be
sourced from Captive Power Plant. Balance if any can be sourced easily
from nearby power supply station DVC & WBSEDCL.
State Advantage: In West Bengal, the steel industry enjoys a
logistical advantage, growing market and an investment friendly
industrial climate. An abundant raw material supply makes it a
preferred industrial destination. The state attracted an estimated
proposed investment of Rs. 1,27,302 crore in Q3 2007-08. The
principal investments will be allocated towards power (Rs. 20,450
crore), steel (Rs. 17,133 crore) as well as oil and petroleum (Rs. 4,850
crore), creating a significant opportunity for the consumption of steel.
State Incentive Scheme: Since the location of the plant falls under
the Group C category as categorized under The West Bengal State Support for
Industries Scheme, the unit will enjoy following incentives as categorized in
the West Bengal Incentive scheme 2008 which are summarized as follows:
Employment
Generation
Subsidy
Reimbursement of 60.00% of the contribution
made towards
ESI and EPF for 7 years
Industrial
Promotion
Assistance
Eligible for waiver of 75% value added tax (VAT)
paid by the unit in previous year. It will be
disbursed for 10 years or till 50% of Fixed Capital
Investment is reached, whichever is earlier.
Sunil Sony, EPGDM-4 5
OPM PROJECT JULY 2009
4. LAYOUT PLANNING
Lay out Planning for the following Facilities: Administrative Block: An Administrative Building will be made for
day to maintain and control day to day work.
Housing Colony: A Housing Colony for administrative and factory
workers. This will benefit the company and its workers by providing
them with standard living environment and regular recreation facilities.
Guest House: A Guest House for the visitors.
Canteen: A Canteen to provide quality of food to workers.
Laboratory: A well maintained Laboratory for the workers.
Medical Room: A Medical room with the entire first aid stuff has to be
considered for the operating and maintenance personnel.
Raw Material Storage Yard: For the Raw Material receipt & storage
would have capacity to store 1 month requirement.
Water Storage Area: To keep fresh water to meet process make up
and drinking needs.
Approach Roads: For the movement of man and material within the
plant area.
Green Belt Area: In the process of steel-making, even with the latest
technologies available, it is not possible to completely eliminate
pollution in any of its diverse forms - air, water, noise or solid waste.
Therefore it is proposed to have a green belt all around the plant site
by planting suitable species of evergreen and broad leaves type.
Plantation is also envisaged on both sides of the plant road.
Repair and Maintenance Shop: For running repairs and conditioning
monitoring.
DRI Unit: For the production of Sponge Iron of the required capacity.
Power Plant Unit: For the Captive production of Power from the Hot
Gases of DRI Unit.
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OPM PROJECT JULY 2009
Steel Melting Shop Unit: For the production of Billets/Ingots of the
required capacity.
Rolling Mill Unit: For the production of Steel Product/TMT Bars of the
required capacity.
Finished Product Stock Yard: For the final product from Rolling Mill
having capacity to store one month Stock.
Quality Control Check: For the inspection of the final product before
dispatch.
Product Load out Station: The finished product after Quality Control
check can be load into trucks for dispatch to customers.
PLANT LAYOUT
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OPM PROJECT JULY 2009
5. CAPACITY PLANNING
DRISteel
Melting Shop
Rolling Mill
Configuration2 Kiln x 100 TPD
2 Furnace x 8 T
80 MT
Hours per Shift 8 8 8
No. of Shifts in a day 3 3 3
No. of Days in a Year in Operation
300 330 350
Production per Day in MT
200 242 228
Installed Capacity in MTPA
60000 80000 80000
Final ProductSponge
IronBillets/Ingots
TMT Bars or Rolled Products
Maximum Capacity Utilization
85% 85% 85%
No. of Days required for Maintenance in a year
65 35 15
Inventory one
month stock
one month stock
one month stock
Note: For the smooth production line one Kiln of DRI Unit and one furnace of
SMS will always be in the production during any of the maintenance period which will help to achieve the target or fulfill the customers demand.
One month stock will be kept in advance at Raw Material Yard for the smooth production.
Finished Products (TMT Bars) can be sold in the open market. In view of adequate demand in the Eastern Region and does not foresee any problem in marketing the above products.
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OPM PROJECT JULY 2009
The domestic demand-supply scenario is favorable and the strategy would be to target domestic market for optimizing marketing costs.
Agreement for Long term contracts with downstream players to minimize marketing costs.
6. PRODUCTION & OPERATION PLANNING
Year Wise Production Planning
Year 1 Year 2 Year 3
Installed Capacity
- DRI Unit 60000 60000 60000
- SMS Unit 80000 80000 80000
- Rolling Mill 80000 80000 80000
Utilization during the year
- DRI Unit 70% 80% 85%
- SMS Unit 70% 80% 85%
- Rolling Mill 70% 80% 85%
Production during the Year
- DRI Unit (Transfer to SMS) 42000 48000 51000
- SMS Unit (Transfer to Rolling) 56000 64000 68000
- Rolling Mill 56000 64000 68000
One Month Finished Stock
- DRI Unit 3500 4000 4250
- SMS Unit 4667 5333 5667
- Rolling Mill 4667 5333 5667
Available for Sale
- Rolling Mill (TMT) 51333 58667 62333
Sunil Sony, EPGDM-4 9
OPM PROJECT JULY 2009
Raw Material Requirement for the Production and their source
Proportion
DRISteel
Melting Shop
Rolling Mill
Sources of Raw
Materials
Iron Ore in MTPA
1.69600
0- -
Will be sourced
from mines of Orissa
Coal in MTPA 1.48400
0- -
Locally Available
Dolomite in MTPA
0.05 3000 - -Locally
Available
Sponge Iron in MTPA (Will be transferred from DRI Unit)
0.75 - 60000 -Will be
produced in house
Pig Iron in MTPA 0.25 - 20000 -
Locally Available from the market
Scrap in MTPA 0.10 - 8000 -
Locally Available from the market
Billets/Ingots in MTPA (will be transferred from Steel Melting Shop Unit)
1.00 - - 80000Will be
produced in house
* MTPA – Metric Tonnes per Annum
Measures to increase Productivity
Maximum Utilization of the Capacity
Sunil Sony, EPGDM-4 10
OPM PROJECT JULY 2009
Improved Raw materials – Right quality Improved working conditions – Cleanliness, lighting, ventilation, etc., Improved Machines (Technology) – Efficient & economic machines Provision of Incentives – Productivity linked bonus / Reward etc.
7. QUALITY REQUIREMENT
To specify the various physical and mechanical properties of the finished
product, various tests, both destructive and nondestructive, need to perform.
Major quality requirements
These process characteristics
necessitate a proper manufacturing
quality of cold forging quality wire
rods. The important features of
these quality requirements are as under:
Excellent surface quality ensuring zero defect situation so that forged
components have no defects.
Good control over Quality to ensure smooth forging process.
Good control over mechanical properties such as tensile strength and
reduction area to ensure proper cold forgeability and productivity.
Completely de-scaled surface to avoid forging defects such as scale
pits and resultant surface roughness.
Suitable metallurgical structure to ensure proper machinability level.
Good and uniform response to heat treatment since the components
are always treated in bulk
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OPM PROJECT JULY 2009
8. QUALITY ASSURANCE AND QUALITY CONTROL PLAN
Quality assurance of analysis is often
demanded by a wide range of users interested
in the analysis of raw steel or finished steel
products.
The most important factor required by any
quality assurance is the accuracy of analysis making it possible for all values
analyzed to meet authorized standards. The second most important factor is
the ease of tracking back to find when, how, by who, and under what
conditions or environments the analysis was made.
In order to satisfy these factors, the above tasks must be standardized and
prepared in writing as guidelines or references. Their contents must provide
steps to make it possible to ensure that the results of analysis will be
obtained by taking the provided steps.
Quality Planning is a critical part of any project. It enables to agree a set of
quality targets with the customer. It then helps to monitor and control the
level of quality produced by the project; ensure to meet the quality targets
set.
Following are the Quality Control Plan:
1. Manufacturing stage and analysis position: Standards for the
analysis position and timing at manufacturing stage according to the
product.
2. Sampling and analysis instructions: Standards for the elements to
be analyzed, the precision of analysis, and the types of samples
required.
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OPM PROJECT JULY 2009
3. Analysis method selection: Standards for the selection method of
analysis based on the expected quantities of analysis elements,
required precision of analysis, and required time of analysis.
4. Analyzer operation maintenance: Standards for the operation,
maintenance, and improvement methods of the analyzer
5. Analysis result reporting: Standards for the means and destinations
of correct analysis results to be reported.
6. Regular Inspection: Inspection once in a day or once in a week.
A Quality Plan helps to schedule all of the tasks needed to make sure that the
project meets the needs of customer. It comprises two parts; the Quality
Assurance Plan lists the independent reviews needed and the Quality Control
Plan lists the internal reviews needed to meet the quality targets. By using
Quality Assurance and Quality Control techniques, one can create a
comprehensive Quality Management Plan for the project.
Quality Plan to set quality targets by:
Identify Standards and Guidelines Evaluate Requirements Analysis Process Feasibility Study Identifying the customers’ requirements Listing the project deliverables to be produced Setting quality criteria for these deliverables Defining quality standards for the deliverables Gaining your customers agreement with the targets set
Using this Quality Plan to monitor and control quality by:
Analyzing Test Results Production Readiness Review Acceptance Test Review Identifying the quality control tasks needed to control quality Creating a Quality Control Plan, by scheduling the control
activities Listing the quality assurance activities required to assure quality Building a Quality Assurance Plan, by creating an activity schedule
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Sunil Sony, EPGDM-4 14
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