Case Study

Operations
Domain Operations
Name of the Case: Redesigning the supply chain strategy of IF Grade Steel

Introduction

To derive a model to determine the slab/coil buffering at an optimal level to meet 100%
customer demand on time with a higher yield .

Background

Currently IF Grade Steel is used for both coated as well as in CRCA supplies to market for
Automotive application .

For coated product its produced in CGL#2 of CRM in the form of GA and ZS (Zero Spangle),
while CRCA is produced in CAPL as well as through BAF route.

In IF there are multilple types and are planned in various widths to meet the various customers
SKU’s at casters.

Currently to meet all the downstream requirements LD2 needs to continually ram up and down
to comply to the on time requirements of the campaigns.

To have a decoupling from the downstream demand, proposal is to have a buffer in between
either in slab form or in coil form or both, which would eventually feed the downstream and
upstream to keep replenishing.

Problem Statement/Challenges Faced

a) Varied Customer need – multiple and small SKU’s

b) Multiple quality codes of IF
c) Skin not backed up by Internals
d) Capacity is limited in RH
e) Respecting Campaign rules
f) Conflict of priorities between products
g) Very long lead time product
h) Inconsistency in strike rate
i) Slab storage and coil storage limitation with respect to space and inventory targets.
j) GWT rationalization