WORLD CLASS MANUFACTURING Submitted By- Group 2

Ambarish Nigam (20135005)

Amit Kumar (20135006)

Greeshma Nair(20135020)

Submitted to :

Mr. A. B. Raju, CEO

Visiting Faculty,SPM-PDPU

FLOW OF PRESENTATION

• STEEL INDUSTRY- AN OVERVIEW

• GLOBAL ECONOMICS CRISIS

• ARCELORMITTAL-SALDANHA PLANT (S.AFRICA)

• WHY WCM??

• ISSUES FACED BY ARCELOR MITTAL –SALDANHA WORK

• BOTTLENECK UTILIZATION OF PLANT

• OBJECTIVE OF IMPLEMENTATION OF WCM

• THE APPROACH

• ENERGY MANAGEMENT

• ENERGY SYSTEMS OPTIMIZATION INTERVENTIONS

• EMPLOYEE ENGAGEMENT

• COST SAVING ASPECT

• CONCLUSION

STEEL INDUSTRY- AN OVERVIEW

• In 2013, total steel production increased by 3.5% to 1,607 MT (highest 8% increase by China).

• Globally steel demand increased by 3.2% in 2013, largely due to increased infrastructure and construction activity.

• Demand is the major drive behind the increasing prices, cost factors for raw materials.

• Outlook for demand is improving, excess capacity remains the biggest threat to the steel sector.

Source: http://www.ey.com/Publication/vwLUAssets/EY_-_Global_steel_2014/$FILE/EY-Global-steel-2014.pdf

GLOBAL ECONOMICS CRISIS

• Credit crisis originated in August 2007.

• American housing collapses, and it brought to light the vulnerability of the US financial system.

• One more instruments that caused the crisis was credit derivatives ( it ensure debt holders against default)

• Defaulted mortgages and loans resulted liquidity problems.

• ArcelorMittal, had cut back 50% of its productions to conserve own cash reserve and secondly to preserve the price of steel.

ARCELORMITTAL-SALDANHA PLANT (S.AFRICA)

• started out in 1996 by Iscor and IDC

• Failed to sustain, due to being heavily financed by means of debt.

• Acquisition by LNM holdings, the holding company of Ispat

• Export-focused plant, was built on Mini-Mill concept

• Mini-Mill concept- Melting of scrap in order to produce liquid steel

• Only plant in world that combined Corex and Midrex

WHY WCM??

• To focus on reduction of cost by eliminating failures in production process

• Increasing customer requirement for quality products and company wants to pursue zero defects for products and services.

• To shorten deadlines and increase throughput in pursuit of JIT delivery

• To improve working conditions and remove dangerous and unhealthy work conditions

ISSUES FACED BY ARCELOR MITTAL –SALDANHA WORK

• Rising electricity and Energy prices

• The global and South African economic downturn have impacted on the plant's competitiveness

• Foreign competitors have not generally experienced the same degree of energy price increase.

• Had to defend its market position in Africa and ensure long-term commercial viability

• Basic operating conditions were poor

• Negative Impact on the operational efficiency of the plant and its energy consumption.

• Production costs and tax levels were increasing

BOTTLENECK UTILIZATION OF PLANT

Source : ArcelorMittal South Africa, 2010a

OBJECTIVE OF IMPLEMENTATION OF WCM

• Maximise Equipment Effectiveness

• Sustain Productive Maintenance for the life of the equipment

• Involve all departments and all employees in implementing World Class Manufacturing

• Improve Working Conditions

• Develop motivated and proud employees

THE APPROACH

• WCM (World Class Manufacturing) Programme

• The Industrial Energy Efficiency Project - Capacity Building Programme

• Energy Management Systems

• Pump Systems Optimization

• Compressed Air Systems Optimization

• Fan Systems Optimization

• Motors Systems Optimization systems

ENERGY MANAGEMENT

• The Energy Management System is based on the Plan-Do-Check-Act cycle and it is a structured and holistic approach focusing on all aspects of the production environment that may impact or influence energy usage.

ENERGY SYSTEMS OPTIMIZATION INTERVENTIONS

• Post-combustion Cooling Radial Fan System Optimization

• Water Cooling System Optimization

• Ladle Heating Station System Optimization

• Overall Lpg Optimization And Reduction

• Additional Energysaving Project Completed In 2011

POST-COMBUSTION COOLING RADIAL FAN SYSTEM OPTIMIZATION

• Maintenance team agreed that only one of the two fans

was needed during periods when:

1) Maintenance inspections are scheduled

2) Production is limited.

3) Unplanned production stops occur exceeding two hours

WATER COOLING SYSTEM OPTIMIZATION

LADLE HEATING STATION SYSTEM OPTIMIZATION

OVERALL LPG OPTIMIZATION AND REDUCTION

ADDITIONAL ENERGYSAVING PROJECT COMPLETED IN 2011

EMPLOYEE ENGAGEMENT

• It was key for the plant to raise employee awareness at all levels on energy matters and the benefits of energy efficiency.

• Increase information sharing

• Behavioural and corporate culture is attained by World Class Manufacturing

• Numerous training courses were hosted on-site

• Recommendations suggested by the employee were implemented and the results were constantly monitored.

COST SAVING ASPECT

Source: Arcelor Mittal South Africa, 2010a

CONCLUSION

• Implementation of WCM framework by ArcelorMittal focuses on elimination of losses with the help of an intensified maintenance focus.

• Achieved energy efficiency & also optimized production maintainence

• Measurement systems and targets were set for different production area

• WCM is an effective tool to focus limited resources on critical equipment or area, initial gains can be leveraged from the implementation of these initiatives, sustainability can only be achieved if these initiatives are entrenched into the strategy of the company

Thank you