Annexure-v-cover page of academic task

Course Code: OPRM639 Course Title: Operation Management and Research-

1
Course Instructor: Atanu Bhattacharyya

Academic Task No: 1 Academic Task Title: Description about the

organization
Date of Allotment: 26/11/2021 Date of Submission: 01/12/2021

Students Name: Priyanka Sharma

Student’s Roll no: RQ2141A01 Student’s Reg.no: 12102966

Learning Outcomes: To learn about the organization product/ services, its forecasting technique,
layout/process, why it is in that particular location and parameters for describing product/ service
quality.

Declaration:

I declare that this Assignment is my individual assignment. I

have not copied it from any other student’s work or from any
other source except where due acknowledgement is made
explicitly in the text, nor has any part been written for me by
any other person.
Evaluator’s comments
General Observations Suggestions for Best part of assignment
assignment Improvement
Evaluator’s Signature and Date:

Marks Obtained: …… Max Marks: ……...

Industrial Visit to Bhushan Power & Steel Limited.

Address: Bhushan steel Plant, Sarbahal road Jharsuguda,
Odisha-768201, India

Incorporated in 1989, Bhushan Steel is a leading integrated steel and

power producer in India. It is India’s third largest Secondary Steel
Producer Company with an existing steel production capacity of 2 million
tonnes per annum (MTPA). The Company is certified to ISO 9001:2008 &
TS-16949 Quality Standards and ISO 14001:2004 Environment
Management Standards.

The Company have successfully commissioned a 3.5 million TPA

Greenfield Steel and Power Plant in Orissa with HR Coil making facility –
First in Private Sector in the State of Orissa. For this plant technology and
equipment were sourced from leading world-renowned companies viz.
Lurgi ABB Ltd. SMS Siemag SMS Meer Danieli LOI Tenova Kocks etc. BPSL
has a wide marketing network in both India (comprising 35 sales offices)
and abroad for selling its value-added product range.

BPSL is a leading manufacturer of cold rolled steel sheets, cold rolled

strip steel and cold rolled sheets and have state-of the-art plants at
Chandigarh, Derabassi, Kolkata and Orissa in India.

The company is a source for vivid variety of products such as cold rolled
closed annealed, galvanised coil and sheet, high tensile steel strapping,
colour coated coils, hardened and tempered steel strips and HFW/ERW
Pipe.
With a view to make its presence in a big way in Special Alloy Steel Long
Product business BPSL has commissioned a most modern state of the art
Wire Rod-cum-Bar Mill and is commissioning a host of downstream
finishing facilities viz. Heat Treatment facilities Bright Bar manufacture
etc.
The company is a source for vivid variety of products such as cold rolled
closed annealed, galvanised coil and sheet, high tensile steel strapping,
colour coated coils, hardened and tempered steel strips and HFW/ERW
Pipe.
As one of the prime movers of the technological revolutions in the Indian
Cold Rolled Steel Industry, the company has emerged as the country’s
largest and the only cold rolled steel plant with an independent line for
manufacturing cold rolled coil and sheet up to a width of 1700 mm, as
well as galvanised coil and sheet up to a width of 1350 mm.

Forecasting area and how is it done?

Based on the data, it's been noted that Bhushan steel has been growing
leaps and bounds in past few years- as compared to its customers like
Maruti Suzuki, Tata Motors etc. Demand forecasting and planning is a
very important aspect for capital incentive industry such as Bhushan
Steel.

This report discusses forecasting methods like Time- Series and

Regression analysis which forecast sales based on past data and can
eventually be used to predict sales of Bhushan Steel ltd.
Currently, the assessment is done in an adHoc manner and based on gut-
feel, but not based on projections. Having said that, BSL has been able to
grow at the rate of its customers and more! This possibly by expanding its
product lines and customer base. Following graph of growth gives a
picture.
In view of capital-intensive nature of steel industry, forecasts related
sales, volume, market demand is essential for assessing
Market trends, planning productions and providing growth projections to
investors of the company.

Forecasting methodologies, which are data driven, based on past data,

exist in literature of economics and statistics. They are regularly used for
various scenarios where there is 'randomness'. There are various
techniques such as regression, time series that are used to 'fit' a model
and use it for projections. This model can differ as its subjective
assessment based on data.

Though major firms such as ones in steel sector ought to forecast sales,
the methods or models used for forecasting differ from one firm to
another. For instance, for a company such as Bhushan Steel which has
had full utilization of its capacity for past 20 quarters, future sales
'volume' would be same as its capacity to produce in future which is very
well the forecasting technique used by Bhushan Steel Ltd.

Q3. Production process of Bhushan Steel Ltd.

The steel making process used in Bhushan Steel limited is in the blast
furnace.

Let me explain it with the complete process used in the production.

To make steel, iron ore is first mined from the ground. It is then smelted
in blast furnaces where the impurities are removed and carbon is added.
In fact, a very simple definition of steel is "iron alloyed with carbon,
usually less than 1%."

Blast furnaces require many auxiliary facilities to support their operations.

However, in simplest terms, the furnace itself is a huge steel shell almost
cylindrical in shape and lined with heat-resistant brick. Once started, or
"blown-in," the furnace operates continuously until the refractory lining
needs renewal or until demand for iron drops to the point where the
furnace is closed down. The duration of furnace operations from start to
finish is referred to as a "campaign" and may last several years.

Iron ore and other iron bearing materials, coke and limestone are charged
into the furnace from the top and work their way down, becoming hotter
as they sink in the body of the furnace which is called the stack. In the
top half of the furnace, gas from burning coke removes a great deal of
oxygen from the iron ore. About halfway down, limestone begins to react
with impurities in the ore and the coke to form a slag.

Ash from the coke is absorbed by the slag. Some silica in the ore is
reduced to silicon and dissolves in the iron as does some carbon in the
coke. At the bottom of the furnace where temperatures rise well over
3000 Fahrenheit, molten slag floats on a pool of molten iron which is four
or five feet deep. Because the slag floats on top of the iron it is possible
to drain it off through a slag notch in the furnace. The molten iron is
released from the hearth of the furnace through a tap hole. The tapping
of iron and slag is the major factor permitting additional materials to be
charged at the furnace top. Then it is left to cool up to workable
temperature and finally moulded into the desired products.
Evaluating the location of Bhushan Power & Steel Limited,
Jharsuguda.

Plant location plays a major role for any kind of business to flourish.

Factors affecting plant location:

Availability of raw materials

The ideal plant location is that, where at least the main raw material is
easily available in required quantity and quality within a time, so the daily
flow of production can be maintained and the total production cost can be
minimized. Jharsuguda is a small industrial area in the western part of
Odisha, Steel industries are said to flourish there due to the abundance of
iron ore in the soil, it has red soil which carries the iron ore, from which
the iron is extracted for the manufacture of steel. The plant is also very
near to coal mines, Belpahad is the nearest area where coal mining is
done, it also comes under the same district Jharsuguda. The plant is also
situated at the bank of river Mahanadi from which it gets the water supply
for the daily maintenance and production of steel.

Transport and communication facilities

Jharsuguda railway station is the first Junction of India. It centrally

connects all the states of India, through roads rails, water ways and
also Airways. The raw materials like Coal are directly deliver to the site
with the goods rail. Basically, transportation includes movement of raw
materials from source to site, movement of in process material from
one stage to another stage to another stage, movement of human
resource; movement of finished products to market, etc.

While selecting location, adequate transport facility road, rail, water or

air, are to be analysed for their availability, suitability and
 transportation charges. transportation is the only one reason why the
industries are located near these junctions.

Proximity to the market:

• Market is the location of buyers and hence become an important

factor for plant location planning. Industrial units tried to locate the
industry near the market because customer can be served better
and cost of service will be minimum.

• Bhushan Steel Limited is located between two majorly populated

cites of Odisha, it is centrally located on the National highway of
Jharsuguda- Sambalpur Road which introduces it to the major
market of steel and steel product requirements. It creates
concentration of market and stability of demand. Also reduces the
risk of damage and delays to goods in shipment.

Labour supply

• Another influencing factors which affect the industrial location is the

availability of labours. the units shall be started at the place where
the labour or manpower can be easily made available and also at
reasonable wages. According to weber an industrial units will
deviate from the point of minimum transportation cost to the
cheaper labour centre if the additional cost of transportation is more
than compensated by the savings in the labour cost.in the recent
years this assumption has lost its significance because,

1. The minimum level of wages has been fixed by law below which
industrial unit cannot go.
2. The labour is mobile factor and can be easily imported from other
places.

Government policy

• In planned economy, this factor plays important role in India,

government follows the policy of balanced regional growth of the
country which is very important from the point of view of defence
and social problem like slums, disparity of income and wealth,
optimum use of resources.in order to implement this policy
government offers several incentive and subsidiary schemes to
motivate the businessmen to locate their plant in backward regions
or no-industry regions.
Supporting industries and services

• To select the plant location the proximity services needed by the

firm is also considered.in some firm, some of or all the parts are
imported or procured from outside, in this condition the firm will be
located at the near to sub-contractor. If such sub-contractors are
located far away from plant, then there will not only increase in
transportation cost but also it will be time consuming and costly.

Suitability of the land

• Location should be selected by considering the soil structure of the

land. The soil structure must be capable of bearing loads of
foundations and heavy machinery.

Safety requirements

The coil burning and the manufacture process emits very harmful
smoke which can harm human beings and buildings, the smoke
from the industry leaves a black residue which is heavy and settles
in the building surfaces and can also enter human lungs and causes
deadly diseases that’s why such plants are to be located at remote
areas outside the city.

Strategic consideration

• Strategic consideration like law-and-order situations, political

stability and safety also influence the location decision of factory set
up.

Q5. Parameter of Quality:

The bitterness of poor quality remains long after low pricing is forgotten.
So, they follow strong measures of quality checking. Understands
Customer's requirement and ensuring to supply as per these requirements
is realized with the help of Quality Assurance and Quality Control
at Bhushan Steel Industries. Across the entire business chain of
manufacturing, supplies, operations and marketing appropriate quality
assurance systems are in place to ensure correctness at each step of the
cycle.

In their philosophy, quality is not only the durability and defect free nature
of product but its utility and applicability to satisfy the sole purpose for
which it was bought. Thus, they are committed to produce products, which
can satisfy different requirements and purposes. They have adopted
stringent quality control measures to ensure superior quality and zero
defects’ products. Quality is checked at different stages of production and
supply.

The steel produced by Bhushan Steel Limited is used in the manufacture of

India’s top car making companies like Tata motors and also used by Maruti
Suzuki as their raw materials this definitely gives us an idea that the steel
produced by Bhushan Steel Limited is one of the premier qualities. Car
produced by Tata motors is said to be the safest and most durable the sole
reason which gives Tata Motor this quality is the steel used in the
manufacture of those cars, and the customer review it as top brand in this
sector and also the sales is also highest.

In the above picture we can see that the Bhushan Colour coated roofing
sheet has been rated 3.9 out of 5 and also the consumers have
mentioned the quality is also good and the price is also pocket friendly.
CONCLUSION:
It was a very informative visit into the factory, the workers were very
cooperative and they also explained me all the processes in detail.
Bhushan steel is one of the oldest factories in Jharsuguda and has also
generated employment for the natives and people come from different
parts of India and also other countries like Korea and China. The
operations in the factory are very well planned and executed by the site
manager and ultimately leads to the growth of the nation with its quality
products.