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Bhushan Power and Steel Operatins CA 1
Bhushan Power and Steel Operatins CA 1
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:
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.
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.
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.
The steel making process used in Bhushan Steel limited is in the blast
furnace.
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%."
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.
Plant location plays a major role for any kind of business to flourish.
Factors affecting plant location:
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.
Labour supply
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
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
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.
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.