Work 1

PERU FURNACE AND MACHINERY
FACULTY OF INDUSTRIAL ENGINEERING
Cycle period 2018-3
Subject:
Integrating Project
FINAL WORK
Steel alloys
Teacher:
Rocio Del Carmen Zapana Espinoza
Students
U17104676 WALLS MURILLO, Carlos Manuel

U17103769 WALLS QUISPE, Edgardo Jordan
U17103770 WALLS QUISPE, Eduardo Helberth
1313617 VIZCARRA CATACORA, Kimberley
Delivery date
03/12/1
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INDEX
PERU FURNACE AND MACHINERY............................................................1
ALAC.................................................................................................................................3
V,=V,.....................................................................................................................17
A X L= A2x 2........................................................................................................17
IN L..............................................................................................................................92
ALAC........................................................................................................................92
INDEX OF FIGURES
PERU FURNACE AND MACHINERY............................................................1

ALAC.................................................................................................................................3
V,=V,.....................................................................................................................17
A X L= A2x 2........................................................................................................17
IN L...............................................................................................................................92
ALAC........................................................................................................................92
1. INTRODUCTION
The Peruvian steel industry is currently facing the challenge of finding new markets
in which to place its products. Despite the appearance of new materials, steel
continues to be one of the most widely used elements due to its relatively low cost.
In view of this situation, the company Aleaciones Aceradas S.A.C. (ALAC) seeks to
expand its market nationwide with the production of industrial steels.
This research paper will design the space and infrastructure for the new ALAC plant,
as well as the production procedures, storage and monthly production schedule.
In the first part, the situation of the company Aleaciones Aceradas is detailed and
contextualized, in addition to describing its mission, vision, values, organization and
process map, analyzing and describing each one of them.
In the second part, the design of the production area is developed by identifying
equipment, raw material, inputs, finished product and production processes for the
four types of industrial steel.
The third part shows the design of the warehouses of the new ALAC plant describing
the areas, personnel, infrastructure, occupational health and safety considerations
and the warehouse processes.
The fourth part corresponds to the product design, covering the methodology used
and the denotative, connotative and pragmatic analysis.
The last part corresponds to the design of the production program considering total
production, billet supply, finished product storage space and efficiency. Finally, the
research ends with conclusions and recommendations that analyze and synthesize
the present work.
2. Objectives
2.1. General Objective
- Design the space and infrastructure for the new ALAC plant, as well as
transportation, production and storage procedures.
2.2. Specific objectives
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- Select the equipment required for ALAC's new production plant.
- Prepare the C300 CRC100 product data sheet.
- Design the handling unit for finished products
- Design the necessary warehouses in 2D and 3D models for optimal plant
operation.
- Elaborate a production program according to Marketing projections.
3. Importance and justification of the study
Based on 2017 year-end information, the global and regional economic

scenario, as well as the steel market, for 2018 is perceived favorable as the
growth dynamics that started since mid-2016 is maintained and is forecast to
extend into 2019 (AlAcero, 2018).
According to information available up to November 2017, world imports grew

4.6% compared to January-November 2016, where developing countries grew
3.1%, emerging countries 6.8% and Latin America 6.4%. World exports in the
same period had a performance of 4.3%: developed countries 3.8%, emerging
countries 4.8% and the Latin American region 3.9%. If the trend continues, it
could become a source of jobs for professionals such as civil engineers,
metallurgists, industrialists, chemists, among others. Knowledge of the
production, storage and transportation processes guarantees the continuous
flow of materials and products in the production line, ensuring uninterrupted
services, increasing customer satisfaction levels, meeting demand and reducing
costs.
3.1. Delimitation
- General area: Project Management.

- Specific area: Study and layout of production plant and warehouses.
- Descriptive area: Space optimization.
4. Description of the company
- Name of the company: Aleaciones Aceradas S.A.

- Industry: Manufacture of steel for construction - Iron and steel industry.
- Logo:
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ALAC
Aleaciones Aceradas (ALAC) was founded in Moquegua in 1990. Initially, it was
dedicated to the production of rebar and profiles at its original plant, with a
capacity of 20,000 metric tons per year. After 10 years, the company expanded
its production capacity as a consequence of its efforts and the quality of its
products; in addition to the strengthening of the construction sector and the
growing demand (Peru, Curso Integrador- Escuela de Ingeniería Industrial,
2018):.
To this end, the company acquired land to house the operating facilities and
warehouses. However, the owners of the company decided to enter the
industrial steel market. This area is characterized by the production of steels
with special characteristics during its manufacture, and that result from the
combination of several chemical elements in specific proportions according to
the use that will be given to the steel later (Peru, Curso Integrador- Escuela de
Ingeniería Industrial, 2018):.
The main lines of interest are: cold working steels, steels for plastic molds, hot
working steels and high-speed steels. The development of new products and
according to customer needs make ALAC position itself as one of the best
companies in the sector within the local market (Peru, Curso Integrador-
Escuela de Ingeniería Industrial, 2018):
4.1. Mission
We are a company in the steel sector dedicated to produce construction

and industrial steel under high quality standards following international
standards and committed to the environment, ensuring the satisfaction of
our customers and contributing to the economic development of our society.
4.2. Vision
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To consolidate our position as a leading company and become the best
reference in the steel industry in the country.
4.3. Values
- Respect: To comply with a conduct that values the fundamental rights of

our fellow men and women, as well as our own. In addition to complying
with social and environmental standards and laws.
- Responsibility: Assume the consequences of the actions that are
exercised in a company and its environment, contributing to the
achievement of the different objectives of the company.
- Punctuality: Fulfill obligations and commitments on time, valuing and
respecting the time of people and organizations.
- Total quality: Achieving excellence through continuous improvement,
proper planning and efficient execution of different internal and external
processes of the organization.
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- Respect for the environment: To carry out the different processes
respecting the ecological environment, encouraging the conservation of
nature in order to achieve better living conditions for the future.
4.4. Organizational structure
The general management has seven submanagers and a legal advisory

body; the figure shows ALAC's organizational structure.
Figure 1 Organizational structure of the ALAC company
GENERAL MANAGEMENT
Legal Counsel
________•= I ZZEZ
Management of
Administration and Logistics SSOMA
R&D&I
Finance Management
Management
Services
General Warehouses
Security Distribution
Treasury
Loans and collections
Information Technology
Source: UTP - Integrative Course
The general management is in charge of enforcing the company's strategic

plan, as well as establishing contacts with customers and suppliers.
The administration and finance management is responsible for facility

maintenance and for outsourcing accounting, security and general services. It
is also responsible for managing the company's financial resources and
obtaining the necessary financing for the investments the company wishes to
make.
Commercial management is responsible for the sale of the company's finished

products, as well as for commercial contracts and advertising and marketing
strategies.
The operations management is in charge of the production and quality control

lines, the latter being of great importance, since high quality standards must be
ensured according to international norms.
Research, development and innovation management is responsible for the
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innovation of new production methods and product development tailored to
specific customers.
Logistics management is responsible for the supply of raw materials and the
administration of warehouses, both for raw materials and finished products. It
also oversees the entire distribution process to points of sale and end
customers.
Human capital management is in charge of payroll administration, training

programs and personnel career development.
The occupational health and safety and environmental management is

responsible for the management of occupational health and safety systems, as
well as for minimizing the environmental impact of the company's productive
activities (Peru, Curso Integrador- Escuela de Ingeniería Industrial, 2018).
4.5. Process map
A process map was drawn up to identify the key, strategic and support
processes involved in the production of industrial steel, as well as the needs of
its customers.
4.5.1. Description of the process map
ALAC's purpose is to satisfy the needs of its customers, which are companies
in the steel industry sector, producers of special tools and equipment.
There are eight key processes for the production of steel, starting with the
acquisition of raw materials and inputs, which must meet international quality
standards, the control of resource reuse processes, which allows the company
an environmental commitment as well as quality. The third process guarantees
the quality of the outgoing product, as well as that of the lamination and heat
treatment. The last three processes certify the type of product being produced,
which will be controlled by the last marketing control process.
The processes that ensure that the needs of the target market are met are:
• Quality management
• Human capital management
• Production management
• Commercial policies
• SSOMA
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• Research, development and innovation management.
The main objective of which is customer satisfaction.
There are six main support processes that provide resources to the organization
for the correct functioning of the operational processes: Finance, Marketing,
Logistics, Maintenance and Information Technology.
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Needs and expectations
Companies in the steel industry sector, producers of special tools and equipment.
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Source: Own elaboration

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5. Design of the production area
The company has decided to start construction of a new production plant to meet
demand and fulfill customer orders. Similarly, the company needs to design its
warehouses, both for finished products and raw materials, as well as the production
processes for the different types of steel. According to the projections of the
commercial area, the monthly production quantities in metric tons for each product
are as follows (Peru, Curso Integrador- Escuela de Ingeniería Industrial, 2018):
Table 1 Required production according to type of finish and type of steel
Code. ALAC CRC100 CRC200 SQR100 SQR200 SHV05 SHV10 SHV15
R290 149 24 181 74 0 0 0

R390 113 100 202 133 0 0 0
R500 253 147 236 232 0 0 0
R590 156 220 257 94 0 0 0
R600 40 201 16 180 0 0 0
R705 127 211 63 256 0 0 0
F100 117 260 25 259 0 0 0
F110 44 29 208 28 0 0 0
F390 19 157 14 51 0 0 0
F490 173 230 57 188 0 0 0
F605 72 25 99 16 0 0 0
F890 177 54 71 219 0 0 0
C300 29 128 176 163 0 0 0
C302 247 67 106 156 0 0 0
C320 134 120 226 202 0 0 0
C350 227 29 41 132 0 0 0
C360 249 85 124 130 0 0 0
C400 129 66 19 86 0 0 0
P201 0 0 0 0 105 57 244
P333 0 0 0 0 169 53 159
P340 0 0 0 0 64 101 208
P390 0 0 0 0 157 235 235
Source: Integrator Course - School of Industrial Engineering
• CRC100: Bars 100 mm diameter round x 2000 mm long.

• CRC200: Bars round 200 mm diameter x 2000 mm long.
• SQR100: Bars 100 mm side x 2000 mm square, with a long.
• SQR200: Bars square 200 mm side x 2000 mm long.
• SHV05: 5 mm thick sheets - 1000 x 2000 mm.

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Round and square bars are required for high-speed steels, hot work steels and cold
work steels, while sheets are required for plastic mold steels (Peru, Curso
Integrador- Escuela de Ingeniería Industrial, 2018). Therefore, the type of
equipment, raw materials and inputs that will be required for the production of each
type of industrial steel were selected.
5.1. Equipment
For the design of the production line, stationary equipment is being considered
to satisfy the different processes, from the raw material storage area to the final
strapping and labeling. The characteristics of the equipment to be used in the
designed production line are detailed below.
5.1.1. Heating ovens
The reheating furnaces are responsible for handling all types of steel billets and
tubes, from 3 to 11 meters long and weighing several tons, in order to heat
them to a temperature where they can be easily ductile. These furnaces can be
batch or continuous charge furnaces. They may use pusher or walking beam
methods to move the slabs. But regardless of design, all reheat furnaces share
a common difficulty in the application: high temperatures in all equipment
components.
This is the most critical machine along the line, since it is located at the
beginning of the production line.
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Figure 3 Reheating furnace
Source: Own
5.1.2. Lamination box
In the rolling mill, the steel (which has been previously heated in the furnace) is
shaped by continuous compression between two cylinders rotating in opposite
directions, until the steel reaches the desired thickness. The cylinders in direct
contact with the material are called "working cylinders or rollers". To prevent
the working cylinders from twisting, support cylinders are also available. The
working rolls and support rolls are arranged between two rolling stands, and
the whole structure forms the rolling box. A rolling mill contains at least one
rolling box. Depending on the material to be laminated, the mills may consist of
several lamination boxes arranged one after the other. (Valdivia, 2002, p. 565).
Figure 4 Multiple lamination box
5.1.3. Cooling tables
The purpose of the cooling tables is to lower the temperature by means of an

air-ventilated structure. In case of sudden cooling, the steel becomes prone to
impact breakage. (Valdivia, 2002, p. 63).
The cooling tables can be placed at the beginning of the production line, in this
Source:
Bascotecniasteel
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1
case, it would act as a galloping table for the supply of billets to the heating
furnace.
Figure 5 Cooling table
Source: Steelmakingmachine
5.1.4. Overhead crane
An overhead crane or bridge crane is a type of crane used in factories and

industries to lift and move heavy loads , allowing large parts to be moved
horizontally and vertically at. A bridge crane consists of a pair of parallel rails
located high up on the sides of the building with a movable metal bridge
(girder) spanning the space between them. The winch, also known as hoist, is
the hoisting device of the crane, it moves along with the bridge on which it is
located; the winch in turn is housed on another rail that allows it to move to
positions between the two main rails. (Valdivia, 2002)
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Figure 6 Bridge crane
Source: Bascotecniasteel
5.1.5. Conveyor rollers
Roller conveyors are devices that move goods from one part to another within
a warehouse or production plant, saving time and simplifying a continuous
production line, resulting in a drastic increase in productivity. Unlike other older
conveyor systems, a roller conveyor is a modular system that can combine
segments with free-spinning rollers for manual operating points of goods,
gravity-driven roller segments and segments with motorized rollers for
automated operation. (COPAR, 2005)
Figure 7 Transport rollers
Source: BAMA Systems

5.1.6. Cutting machine
The automatic bar cutting machines are in charge of reducing the size of the
product after rolling and cooling, to the final dimensions according to the type
of product.
Figure 8 Automatic rebar cutting machine
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3
Source: IMGED
5.1.7. Strapping machine
This machine is in charge of grouping the final product obtained, in the

designed package, according to the number of blocks, as well as the type of
product required. This machine is located at the end of the production line.
5.1.8. Heat treatment station
It is a station very similar to that of a heating furnace, unlike the

aforementioned; in this station, different types of salts and substances can be
added, in order to guarantee the properties of the steel being produced.
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Figure 9 Heat treatment station
Source: SMS Group
5.2. Raw materials
5.2.1. Raw material requirements
For the calculation of the raw material, the concept of hot rolling was taken into
account, being this a mechanical forming process, carried out by direct
compression, without loss of material, with the objective of having plastic
deformations in the formed material; therefore, we have permanent alterations
in shape and properties of a solid body, maintaining the mass. (COPAR, 2005)
In this process, the material to be deformed is introduced between two

cylinders, which rotate in opposite directions. This deformation generally
reduces the height, increases the length and reduces the width.
Figure 10 Laminating process
Source: https://sites.google.com/site/procesodelaminado/
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According to the finishing needs of the final product to be produced, the following
characteristics are shown in Table 2, which shows the cross-sectional area, length
and volume for each type of product.
Table 2 Finishing characteristics of the final product to be produced
Type of Cross- Volume

sectional Length m -3 m3
finish area -2 m2
CRC100 0.00785 2 0.01571

CRC200 0.03142 2 0.06283
SQR100 0.01000 2 0.02000
SQR200 0.04000 2 0.08000
SHV05 0.00500 2 0.01000
SHV10 0.01250 2.5 0.03125
SHV15 0.02250 3 0.06750
Table 2 shows a summary of the physical characteristics of the final products to be

produced. Source: Own elaboration.
Then, based on the different characteristics of the twenty-two types of steel, an

approximate density of the real product can be obtained by comparing the
percentages of composition with respect to other products with similar
characteristics. The values shown in Table 3 were obtained.
Table 3 Density of the different types of steel to be produced

Density Density
Code. ALAC Code. ALAC
kg/m3 kg/m3
R290 8138 F890 7800
R390 8100 C300 7750
R500 8100 C302 7750
R590 8138 C320 7750
R600 8100 C350 7750
R705 8100 C360 7750
F100 7700 C400 7750
F110 7700 P201 7800
F390 7800 P333 7800
F490 7800 P340 7850
F605 7700 P390 7850
Table 3 shows the approximate densities of the different types of steel that
ALAC will produce. Source: Own elaboration.
With the densities and volumes for each type of product, it was possible to obtain the
unit weight per bar and per sheet, as shown in Annex 01.
With the unit weights per product, and with a production projected by the commercial
area, the amount of products to be produced on a monthly basis was calculated.
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Additionally, it was considered that the production process would have an efficiency of
95%, so an additional production of 10% was estimated, where an unforeseen event in
the production line of 5% was included, which is the demand for up to two days of
production.
With all the aforementioned data, a raw material supplier was sought, in this case
Sandvik was considered, by providing the technical data sheet of its products in more
detail, as shown in Annex 02.
With the dimensions of the different types of billets that the supplier can provide, a
maximization calculation was performed, where the theory of constant volumes was
applied, in order to be able to dimension the width, side and length of the raw material.
As a restriction, the maximum weight of a structural steel billet, whose side is smaller
than the final products to be produced, was used to limit the maximum weight of each
block.
V,=V,
A X L= A2x 2
The objective of applying the constant volume theory is to calculate the length of the
billet after the area reduction process for the different products, obtaining three types of
billets, two of square area and one of rectangular area, with lengths shown in Table 4.
Table 4 Billets dimensions to be used

Billet
Side 1 Side 2 Length
Volume Billet Weight
Billets type
(m) (m) (m)
-3 m3 kg
Square 1 0.2 0.2 8 0.3200 2464.00
Square 2 0.3 0.3 6 0.5400 4158.00
Slabs 0.15 0.4 5 0.3000 2310.00
Table 4 shows the dimensions of the five types of billets to be used in the process. Source: Own elaboration.
Another factor that was considered in the selection of the billets was
were:
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a) The billet area must be larger than that of the final product in order to
guarantee a correct rolling process.
b) Billets should have a ratio between area reduction and elongation, which
can be reduced in a rolling line of 8 rolls for the circular and square area
process, and 15 rolls for the plate process.
As a result of the maximization calculation, the length in meters of the different

types of products was also calculated from the volume of each billet, as shown in
Table 5.
Table 5 Amount of final product from each billet
Side Length
Type of
Billet type
finish
(m) (m)
CRC100 Square 1 0.2 8
CRC200 Square 2 0.3 6
SQR100 Square 1 0.2 8
SQR200 Square 2 0.3 6
SHV05 Rectangular 0.15 x 0.4 5
Table 5 shows the quantities of the final product obtained from each billet
selected. Source: Own elaboration.
With the quantity of final products obtained from each billet, the quantity of billets
required for the projected monthly production was calculated, resulting in the
quantity shown in Table 6. For further details of the quantities according to the type
of steel and finish, see Annex 01.
Table 6 Total number of billets to use
Type of finish Billet type Lump sum
CRC100 Square 1 1072

CRC200 Square 2 555
SQR100 Square 1 922
SQR200 Square 2 672
SHV05 Rectangular 232
Table 6 shows the total quantities of billets to be used in the production of

the ALAC company Source: Own elaboration.
The total amount of calculated billets will not be stored in a warehouse, it is

considered that the warehouse will hold 30% of the total capacity, and 15% will be
stored inside the production hall, in order to speed up the production process.
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Each billet will have a specific storage form, depending on its dimensions and
geometry. Table 7 shows the maximum number of billets grouped horizontally and
vertically, which should not exceed three meters in height. Annex 03 shows in more
detail how each type of billet is stored.
Table 7 Maximum billet quantity per block

TOTAL
Und/level Number of levels
Billets/block
Square 1 8 11 88
Square 2 5 8 40
Slabs 4 14 56
Table 7 shows the stacking quantities per level for each type of billet, as well as the
maximum number of levels at the time of storage Source: Own elaboration.
Respecting the type of storage per block for each type of billet, and with a global
quantity needed for the monthly steel production, the following quantities of blocks
are required in the raw material warehouse, as shown in Table 8.
Table 8 Number of storage blocks for each type of raw material
Billet type
Number of blocks
Square 1 48
Square 2 30
Slabs 5
Slabs 4
Slabs 8
Table 8 shows the number of packages required for monthly steel production
Source: Own elaboration.
5.3. Inputs required
5.3.1. Identification of inputs
Once the processes to be followed to obtain industrial steels have been

identified, the inputs necessary to obtain the different products are identified.
The following table describes the input and the part of the process for which it is
needed in addition to the storage unit.
Table 9 Table of required inputs

ITEM INSUMO USED IN UNIT OF MEASURE
1 Natural Gas Heating for lamination and heat treatment Gas tank (kg)
2 Water Temperature reduction during lamination Water tank (L)
3 Lubricating oil For the lubrication of the roller motors Cylinders (Gal)
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4 Coolant For the cooling of the roller motors Cylinders (Gal)
Nitriding for high speed steel, hot working,
5 TENIFER Salt Bags (kg)
plastic mold steels
Isothermal bath for the production of cold
6 Nitrogen Tank (kg)
work steel
Isothermal bath for the production of cold
7 working steel, for the cooling of hot working Cylinders (Gal)
Heat treatment oil steel.
Spare parts in
8 Various components ( hoses, filters, Unit
general
The calculation of the quantity of inputs required will be made considering that the
month has 30 days, with production taking place every day at three shifts per day.
Of the 30 days, 3 days are taken to carry out the maintenance shutdown of
furnaces and facilities in order to increase the reliability of the equipment and for
emergency repairs.
Maintenance is involved in many of the inputs required by the warehouse, the type
of maintenance to be carried out will be preventive. For ease of study and
calculation.
Consumption calculations
1. Electric power consumption: The laminating boxes will be operated with

electric motors, in the automatic cutter, strapping machine, galloping tables
and transport rollers.
2. Water consumption: used continuously during the lamination process. In
each of the boxes, it is used as a coolant for the rollers to avoid micro-
welding due to the high billet temperatures. To reduce water consumption,
the company uses a water reuse system.
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Figure 11 Basic water reuse system Source: http://www.cumminshub.com
3. Lubricating oil: both the motor and the gearbox of the rolling mills need to be
lubricated. The used 3.9 CUMMINS 4BT 3.9 CUMMINS engine has the
following specifications
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4BT CUMMINS SPECS
Configurati Inline 4 cylinder
on:
Displacement: 3.9 liters, 239 cubic inches
Bore x Stroke: 4.02" x 4 .72"
Cylinder Head Material: Cast iron

Engine Block Material: Cast iron
Firing Order: 1-3-4-1
Compression Ratio: 17.5:1
Injection: Direct injection, mechanical injection pump

Aspiration:Turbocharged, non-intercooled
Valvetrain:OHV, 2 valves per cylinder
Weight:745-782 lbs w/oil
Oil Capacity: 10 quarts

Governed Speed:Varies with application
Horsepower:105 hp @ 2,300 rpm*.
Torque: 265 Ib-ft 1,600 rpm*.
Engine Dimensions: Length: 30.6"
Width:24.6"
Height: 37.7"
Source:h ttp://www.cumminshub. com
Figure 12 Technical specifications of lamination box motor
Based on the engine specifications, it has a capacity of 10 US quarts or 9.48

liters of oil. The engine works 27 days/month 24 hours a day. Totaling 648
hours. Based on Caterpillar's diesel engine maintenance criteria, it is stated
that 500 hours maintenance includes oil and filter changes (Caterpillar,
2018). That is, an engine requires 1.3 oil changes per month or 16 changes
per year.
648
Oil change / (month x motor) = 500
Oil change / (month x engine) = 1.3
Oil change/month = 1.3 x 25
Oil change / month = 32.5
Oil change x month (gal) = 32.5x-
Oil change x month (gal) = 16.25
Oil cylinder contains 55 gallons, one oil cylinder can last 3.2 months.
4. Engine coolant: according to the maintenance manual, the engine coolant

must be changed every 2000 hours. Due to the absence of engine
information, the amount of coolant will be estimated as twice the amount of
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oil, i.e. 3 gallons per engine and reduction set.
648
R efrigerantmonth= 3∗25∗∗
R efrigerant month = 24.3 gal
R efrigerant mes(me r m^ 5%)= 25.5
With a 55-gallon refrigerant cylinder, you have enough refrigerant for two
months. The surplus will be used in case the coolant level needs to be
topped up.
5.4. Finished product
To calculate the quantity of finished products, it is necessary to have the

required projections per metric ton, in this case the quantity of products to be
produced has already been calculated, as shown in Annex 01, taking into
account a 10% forecast for possible unexpected stoppages, in addition to
considering a process efficiency of 95%.
To determine the quantity of bars and sheets to be stored in the finished product
warehouse, we must consider the way the different types of product are stacked,
as shown in Table 10. Annex 05 shows in detail how each type of product is
stored.
Table 10 Quantity of finished product per block by type of finish

Und/group Groups/block TOTAL
CRC100 12 32 384
CRC200 3 36 108
SQR100 15 20 480
SQR200 3 36 108
SHV05 10 11 110
SHV10 10 9 90
SHV15 8 9 72
Table 10 shows the quantity of rods and plates stored per block according to the proposed layout Source:
Own.
With the quantity of rods and plates stored per block, it only remains to
calculate the quantity of blocks to be stored in the finished product warehouse.
In this case, it is being considered that the warehouse has a constant regular
flow; therefore, it will be able to hold the amount of production destined to the
forecasts previously calculated, with a value of 10%, in addition to storing
another 30%, caused by the normal flow and loading time of the different means
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of transport.
Annex 04 shows the number of blocks per type of product and per type of finish,
calculated considering a 10% forecast and 30% retention for normal flow. Table
11 lists the number of blocks per type of finish, expressed globally.
Table 11 Total number of blocks according to type of finishing
Number of blocks per type of finish

CRC100 33
CRC200 25
SQR100 23
SQR200 25
SHV05 24
SHV10 10
SHV15 11
Table 11 shows the number of blocks according to the type of finish, which the warehouse should
house. Source: Own.
The finished product warehouse must have a volumetric capacity in order to be

able to store the number of packages calculated in table 11 above.
5.5. Production line
Since the industrial steel production process of the new plant is a continuous
process, it can be shown in the macro-process and sub-process diagram in
order to identify the differences with respect to the low alloy steel production
process.
5.5.1. Description of the Macro process, Process and Sub-process graphs
The macro process carried out is the production of steels with special
characteristics, which is subdivided into three main processes: (1) Rolling;
(2) Heat treatment; (3) Labeling and storage.
The first process begins with the heating of the billets in the heating furnace,
it is here where the billets are heated up to a temperature of 1200°C for their
subsequent passage through the rolling mill boxes, where their section is
reduced for each station, passing through descaling, a primary reduction and
another secondary reduction. When the expected dimensions are achieved,
it is cooled so that it can later be cut to the specific length.
The second process starts with the cut rods and sheets obtained from the
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4
output of the previous process. Depending on the type of metal, the rods and
sheets will go through different sub-processes, such as heating, forging,
annealing, hardening and nitriding.
The third and last process is composed of three sub-processes, which carry
out the strapping of the blocks assigned for each final product, the labeling
and finally the storage of the final product obtained.
Figure 13 shows the map of macro process, process and sub processes of
the designed production line.
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5
Figure 13 Classification of the processes of the new ALAC plant
STEEL PRODUCTION - ALAC PLANT

Lamination
Billets heating
The billets are heated to a temperature of 1200

°C.
Hot rolling
Rolling boxes are used for plate reduction

down to 0.3 inches or round and square rods.
Cold rolling
It is made by pressing and elongation, mainly in

low thickness laminates.
Cooling
The temperature decrease is carried out to cut

the desired product.
Cut
The product obtained is cut in the assigned

dimensions.
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Heat treatment
Heating Forged It is performed in order to reduce the The steel is cooled in a short time in It is a process where nitrogen is added to
internal stresses of the steel, caused by the different media, in order to acquire a higher the steel when it is heated in order to
The steel is slowly heated for the Steel, depending on its category, will be previous heat treatments. hardness. increase its surface hardness. (Occurs in
subsequent forging process. forged at a temperature specified in tables. Temple Nitriding and cooling particular steels)
Annealing
Labeling andstorage
metal straps. The final product is stored in warehouses, depending on the type of steel and
Strapping It is carried out according to the day of manufacture and number of the mixture. the customer.
Tagged
Finished products are grouped according to the designated type by means of Storage
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5.5.2. Production line design
The plant design considered aspects such as the number of production lines, the
number of reheating furnaces, the number of lamination boxes, the number of
galloping tables at the beginning and end of the line, the heat treatment station, as
well as the strapping line. Regarding the heating line, a billet supply system will be
used by means of a galloping table, which will place the billets on a set of rollers for
their subsequent transfer to the heating furnace.
The heating furnace will be of the GHI brand, will have a capacity of 20 TN- h,
whose external dimensions will be 10 meters wide by 12 meters long, the net
heating dimensions will be 8 meters wide by 10 meters long. This furnace uses a
flat galloping table inside its mechanism with spacers every 50 cm, which makes it
possible to use the previously selected square and rectangular billets. See Annex
06 for more information.
Figure 14 Internal mechanism of the heating furnace
Source: https://www.indiamart.com
Regarding the two rolling lines, these will be separated by a set of rollers, in order to
be able to separate the type of billet depending on the type of final product. One of
the lines will be used entirely for round bars and rectangular bars, this rolling line will
have six rolling boxes, four reducers and two finishing boxes, they will continue
through a set of rollers to the cutting station and then to the heat treatment station.
The second rolling line will be adaptable for slabs, and sometimes for the
reduction of round and square bars. As this line will be used for plate
production, it will have eight reduction boxes and four edge and surface
finishing boxes. This is followed by the cutting station and the heat
treatment station.
For the heat treatment station, a cabin very similar to that of a heating
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8
furnace will be used (See Annex 07); unlike the latter, in this station the
different inputs will be added to guarantee the characteristics of the material
produced.
With all these aspects, the layout of the lamination line was developed, as
shown in Figure 15.
Figure 15 Production line layout
The total area designated for the production line is 7800 m2, distributed in
232 meters long and 33 meters wide. The distribution of the equipment to
be used is detailed more precisely in Annex 08. The height of the production
hall will be 15 meters.
Figure 16 shows the production line designed in a 3D model, where a free

upper view of the supply galloping table can be seen, followed by the
heating furnace and, in the distance, the two lamination lines proposed.
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9
Figure 16 Plant lamination line
Figure 17 Plant lamination line
Figure 17 shows the two rolling lines, followed by the partial cooling rolls,
the cutting machines and finally the heat treatment station.
5.5.3. Production process
For the production process, it is fulfilled that, either for plates or for square
and circular bars, the same standard is followed, the differentiation is made
in the type of steel to be produced, whether they are:
- Steel fast
- Steel for work at hot
- Steel for work atcold
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0
- Steel for molds of plastic
The process starts with the heating of the billets up to a temperature of

1200°C, after which they go through the roughing process, where the scale
produced by the increase in temperature is removed. Once it is removed by
means of pressurized water and a set of rollers, the bar goes through the
rolling process, either on the line designed for bars or for sheet metal.
After the required dimensions are obtained, the bars are cooled so that they
can be cut to the required lengths. After cutting, the bars and/or plates will
pass through the heat treatment station, to be cooled for a second time and
undergo a final inspection, ending up in the labeling line.
Figure 18 shows the PDO of the process in general, which will later be
detailed for each type of steel to be produced.
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1
Figure 18 Simplified PDO of the special steel production process
Reheating between
1100°Cand1200°C
Roughing
Lamination
Cooling
Cutting of the bar
Cooling to room temperature
Nitriding
Cooling
Final inspection
For each type of steel to be produced, an Operations Diagram was prepared,

where the differentiation is made in the heat treatment process that must be
fulfilled for each of the steels to be produced.
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2
5.5.3.1. Rapid Steels
High-speed steels are used especially for the manufacture of tools, so

that they can retain their technological characteristics even at high
temperatures. The process complies with the aforementioned sequence.
Figure 19 shows the PDO in more detail, as well as the heat treatment
procedure to which it must be subjected.
In the heat treatment line, the bars and plates must go through a forging
process at a temperature between 900 and 1100°C. Once this
temperature is reached, they must be cooled down to 770°C, in order to
achieve annealing. It is then left to cool inside the heat treatment station
so that, depending on the type of composition, a simple or complex
tempering can be selected. Once tempering has been carried out, a salt
bath will be applied, together with jets of dry air, until the temperature is
reduced to 600°C. Subsequently, tempering will be carried out at a
temperature of 550°C. This will be repeated once. Finally, tenifer salt
baths will be applied to ensure nitriding and subsequent cooling.
A final inspection and labeling will be carried out accordingly, thus

obtaining high-speed steels, whose characteristics comply with the
necessary requirements of the regulations.
Figures 19 and 20 show the operation diagram for this type of steel.
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Figure 19 PDO of high-speed steel production
Billets 200x200 Quick

8000 mm
Visual inspection of
billets to be sent to
homo de calentamiento
Reheating between
1100°C and 1200°C
Pressurized
water
Roughin
g
Primary lamination
Secondary lamination
Cooling
Rod cutting
Inspection of the product's

physical properties (hardness,
density and composition) Scrap
(defective
Weigh material)
ing
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4
Figure 20 High-speed steel production PDO - continued
Forged at temperature
between 1100/c and 900°C
Annealing at
temperatures between
770 "C and 840°C
Slow cooling in the oven
Single tempering Complex temperate

at temperature at temperature
between 12205C- between 1190°c-
1230 "C 1220°C
Salt baths Dry air jets
Cooling
Repeat once Tempering at

550°C
Salt baths
Nitriding
Cooling
Final inspection
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5.5.3.2. Hot work steels
Hot work steels are for use in applications where the surface temperature
is generally above 200 ° C. (Bohler, 2018).
Unlike high-speed steels, the heat treatment procedures are reduced to

the following:
Once the bars and plates enter the heat treatment station, they undergo
forging at a temperature between 900 and 1100°C, followed by
annealing, with a decrease in temperature to 800°C. Afterwards, a slow
cooling process takes place, and then the temperature is raised to
1020°C, where salt and oil baths are added to ensure tempering.
The next process is cooling, so that the hardness measurement can then
be performed. Tempering and nitriding depends on the type of steel to be
produced, finally a final inspection and labeling is performed.
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6
Figure 21 DOP of production process for hot work steels
m
m
00
80
0x
20
0x
20
ets
Bill
Visual inspection of billets
entering the heating
furnace
Heating between
1100°C and 1200°C
er
at
w
ed
riz
su
es
Pr
Primary Lamination
Secondary Lamination
Cooling
Rod cutting
Inspection of the physical

properties of the Scrap
product (hardness, density and (defective
composition). material)
Forged at temperatures
between 1100cCand900°C
Annealing at
temperatures between
750°C and 800 "C
Slow cooling in the oven
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7
Figure 22 DOP of hot work steel production process - continuation
Tempering at 1020°C
Salt baths
Oil
Cooling
Hardness measurement
Tempering at 600°C
Salt baths
Nitriding
Cooling
Final inspection
Activity Symbol Quantity Tagged
Operation
(D 17
Inspection 4
Special steel for hot work
Combined ü 0
5.5.3.3. Cold work steels
Cold working steels are used to produce tools that generally do not operate at a
surface temperature of more than 200 °C.
They exhibit high hardness, good toughness, dimensional stability in heat treatment
and good machinability (Bohler, 2018).
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Figure 23 DOP of cold work steel production process
In the heat treatment station, the bars and plates undergo annealing at a temperature
between 750 and 800°C, followed by slow cooling, to ensure the elimination of internal
stresses, to a temperature of 650°C. The temperature is then raised for tempering at
1050°C, where an isothermal bath is then produced by the addition of nitrogen, air and
oil.
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DOP Cold drawn
Billets 200x200 8000 mm steel

furnace
Heating between
1100°C and 1200°C
Pressurized
water
Roughing
Primary Lamination
Secondary Lamination
Cooling
Cutting of the bar
Inspection of the physical

properties of the
product (hardness, density and
composition).
Scrap (defective
material)
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Figure
Figure 24 PDO
23 DOP of work
of cold cold work
steel steel production
production process - continuation
process
Annealing between 750°C -

800°C
Slow cooling in the homo
Stress relieving at 650°Cand

700°C
Tempering at
1050°C
Nitrogen
Air
Oil
Isothermal Bath
Final product inspection and

hardness measurement
Activity Symbol Quantity

Tagged
Operation
( 14
inspection 3
Special steel for cold work
Combined 0
5.5.3.4. Steels for plastic molds
They are hardened or pre-hardened steels, corrosion resistant, with

malleable characteristics so that they can be machined in different ways.
(Bohler, 2018)
For this type of steel, the rolling processes are subdivided into four,
primary and secondary horizontal rolling, in addition to primary and
secondary vertical rolling, the rest of the process until the final product is
obtained, is the same.
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1
In the heat treatment station, the sheets undergo forging and annealing,
followed by slow cooling to relieve internal stresses. Subsequently,
tempering takes place at a temperature between 840 and 880°C,
depending on the cooling medium. Finally, nitriding is performed for
subsequent final cooling and hardness measurement.
Figure 25 DOP of production process of plastic mold steels
Billets 400x500x5000 mm

furnace
Heating between
1100°Cand 1200°c
Pressurized
water
Primary horizontal lamination
Secondary horizontal lamination
Primary vertical lamination
Secondary vertical lamination
Inspection of physical
properties of the
product (density and
composition) Scrap (Bear
material
)
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2
Figure 26 DOP of production process for plastic mold steels - continuation
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3
Figure 26 DOP of production process for plastic mold steels - continuation
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5.5.4. Model PEPSC
SUPPLIER ENTRANCE PROCESS EXIT CLIENT

• Water
• Billets
• Sandvik: Billets supplier • Reheating furnaces Steel production process • Steel bars with 18 different
• Coveyor Velt: Conveyor belts • Laminating boxes 100 mm diameter x 2000 mm long
alloys
• Caterpillar: Yellow line equipment • Cooling tables
1. Lamination
• GHI: Furnace supplier for • Transport rollers • Round steel bars with
heating and heat treatment station. • Cutting machines 1.1 Billets heating different sizes of200 mm diameter x
1.2 Hot rolling 2000 mm long
• Bascotecniasteel: Supplier of
• Machine strapping machine
1.3 Cold rolling
laminating rollers
• Strapping metallic 1.4 Cooling • Square steel bars with 18
• Companies producers
from
• Station of treatment thermal 1.5 Cut various alloys of 100 mm side x 2000 tools for high speed machining
• Sumnos: Supplier rollers
• Bridge cranes
2. Heat treatment
mm long equipment
conveyors and galloping tables.
• Tanks of storage
• Square steel bars with 18 • Companies dedicated a
• Siemens: Supplier of PLC's and • Reducing rollers 2.1 Heating various alloys 200 mm side x 2000 the
2.2 Forged equipment production for
control systems • Tracts
mm long
2.3 Annealing high altitude work
• Scania: Tractor unit supplier • Forklifts 2.4 Temple • Steel plates with 4 different
• RMB SATECI: Supplier of • Warehouse shelving 2.5 Nitriding and cooling 5 mm thick alloys 1000 x 2500 mm. •Companies producing plastic
injection molds.
carts • Wooden blocks
• Badges from steel with four
• Tenifer salts 3. Labeling and storage
• PIMEG - Supplier of type bridges different alloys of 0mm thickness -
crane
• Nitrogen 1250 * 2500 mm
3.1 Strapping
• MAGEVA : Machine supplier • Natural gas 3.2 Tagged
strapping machine
• Eng. Chemicals 3.3 Storage
• Steel plates with 4 different
• MECALUX: Supplier of 15 mm thick alloys - 1500 x 3000
shelving for warehouses • Eng. Industrials mm.
4. Distribution and transportation
• FENOSA: Natural gas supplier • Eng. Mechanics
• Mechanics
• Laborers
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6. Description of the company's warehouse
According to the company's Layout shown in Annex 09, three storage areas are
considered, the first one for raw materials only, the second one for the storage of inputs
and the third one for the finished product warehouse.
The total area for the warehouses is 3985m2, distributed as follows:
The raw material (billets) storage area will have 640 m2, an area of 645m2 for inputs and
2700m2 for the finished product warehouse.
The description of each environment will be developed in more detail below.
6.1. Raw material warehouse
The raw materials warehouse should have a size that can satisfy 45% of the monthly
production capacity, this percentage is justified in the production program, it is being
considered that the flow of billets to the warehouse will occur periodically, so as not to
saturate the dimensions of the plant. In the same way, part of the billets will be stored
in the production hall, where a total area of 400m2 is being allocated in order to
guarantee a continuous production process.
Taking into consideration that 45% of the total capacity will be stored, the raw
materials warehouse should have the following block capacity:
-Table 12 Quantity of billets to be stored according to type of final product
Billet type
Number of blocks
Square 1 20
Square 2 14
Slabs 8
The warehouse will be semi-open type, with two of the sides enclosed by columns and
brick walls up to a height of 3.5 meters, the other two sides will be semi-open, covered
by galvanized square mesh. This will be covered by a steel sheet roof with an inverted
U-shaped wave. The dimensions
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of length and width will be 40 meters long by 16 meters wide and a height of 5 meters,
obtaining an area of 640m2.
The maneuvering areas within this warehouse will have a minimum width of 5 meters
and a maximum width of 8 meters, to facilitate the mobility of the different types of
billets.
The layout of the raw material warehouse shown in Figure 27 shows the three storage
areas and the distribution of each billet.
The yellow area represents the unloading area, where the tractors will be parked for the
subsequent unloading of billets; the light blue area is the temporary storage area until
the final disposal of the raw material; the different colored areas, green colored billets for
plates, light gray and red colored square billets type 1. The purple and light blue areas
for type 2 square billets.
Figure 27 Raw material warehouse layout
UNLOADING
AREA
This warehouse will have four workers, two of them will be operators, one will be the
inventory assistant and the remaining one will be the warehouse supervisor. The
operators will be trained to unload and transport the billets, in addition to reviewing a
daily inventory, while the inventory assistant will control the entry and exit of billets,
4
reporting periodically to the supervisor.
The four workers will be required to wear a variety of personal protective equipment,
such as hard hats, vests, safety boots, earplugs and safety goggles.
This warehouse will not use an overhead crane; for these reasons, two Caterpillar
forklifts will be used and the model will be CAT P33000, diesel, due to its load capacity
of 15 tons (see technical data sheet in Annex 10), one will be permanently in the raw
material warehouse, while the second one may be inside the storage building. Annex 12
shows the plan of the designed warehouse.
Figure 28 shows the billet unloading area for the tractors, while Figure 29 shows the 8-
meter space required for the different billets to be removed to the production area
without any problems.
Figure 28 Open view of the raw material warehouse
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Figure 29 Maneuvering space of the raw materials warehouse

Figure 30 shows that part of the billets are stored on one side of the galloping table, in
order to have the billets for the planned daily production within reach. The space
allocated for this area is 400m2.
Figure 30 Billets stored in production line

6.2. Warehouse supplies
The input warehouse must house the previously calculated inputs; therefore, a space
was set aside on the right side of the production hall. This warehouse will have two
rooms; the first one will be for storing machinery spare parts, lubricating oil,
lubricants, tenifer salts, nitrogen tanks, and special oils for thermal treatments; it will
be a closed room with concrete walls and stuccoed brick walls, with a roof covered
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6
by injected polyurethane sandwich panels to guarantee an ambient temperature.It
will be a closed environment, with concrete walls and stuccoed brick walls, with a
roof covered by injected polyurethane sandwich panels to guarantee an ambient
temperature below 25°C (77°F). While the second environment will be a semi-open
environment where the natural gas will be stored, this environment will be covered by
a steel sheet roof with an inverted U-shaped wave.
The shelving to be used, will be 3 levels, this will store the spare parts of most of the
machinery of the production process (rolling mill rolls, electric motors, transport
rollers, bearings and others) and strapping, therefore, will be used two shelves of
length 1.5 meters wide x 8 meters long and a height per level of 1.3 meters.
In the central part, the bags of tenifer salts, oils and lubricants will be stored at the
finished floor level, separated by guide lines.
There will be a second type of shelving, where medium-sized products will be stored,
and a second type of shelving for packaging different products.
The dimensions for the warehouse are as follows:
a) For the enclosed environment, 30 meters long and 15 meters wide, with a height
of 4.5 meters and an area of 450m2.
b) For the semi-open environment 13 meters long by 15 meters wide, a height of
3.5 meters, and an area of 195m2.
The layout, shown in Figure 31, shows both separate environments, in which the gas
tank is located in the semi-open area and the shelving previously described is
located in the closed area.
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7
For the closed environment, five 4-meter long sliding doors are being considered to
facilitate the entry and exit of the different inputs, while in the semi-open environment,
there is only one 3-meter long door.
Figure 31 Layout of the supplies warehouse
AREA 450m2
SEMI-OPEN ENVIRONMENT
TOTAL AREA 645 m2 CLOSED ENVIRONMENT
The E3000 electric forklift with a capacity of up to 1800 kg (see Annex 11 for technical
data) will be used for the supplies warehouse, since it is quieter than a conventional
forklift that uses gas or diesel; in addition, manual pallet trucks will also be used.
Figure 32 CAT E3000 Forklifts
Source: TRACSA
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Figure 33 Hand pallet truck
Source: TTymbia Solutions SL
This warehouse will have three workers, one of whom will be the forklift operator, an
assistant and a supervisor. The operator and the assistant will be trained to unload
and transport the different inputs, the assistant will keep the inventory of all the
inputs, as well as attend to the orders requested by production, while the logistics
supervisor will coordinate with the other warehouses of the general operation of
production.
Figure 34 shows a free top view of the warehouse designed in a 3D model.
Figure 34 Free left view of the supply warehouse

Figure 35 shows the shelving on the left side of the warehouse, as well as the space
designated for storage at floor level.
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9
Figure 35 Internal view of the left side of the supply warehouse
Figure 36 shows the shelving on the right side, where the smaller and lighter inputs
will be stored.
Figure 36 View of the right side of the supply warehouse
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6.3. Finished product warehouse
For the sizing of this warehouse, it is taken into consideration that it will have to
store 40% of the total calculated capacity, as summarized in Table 13:
Table 13 Number of blocks to be stored
With this quantity of blocks, a warehouse had to be dimensioned, to facilitate the

correct flow, it was considered to use a bridge crane, which will be coupled to an
electromagnet, but an auxiliary transport system for the final product, made by
forklift, was also considered.
Figure 37 Finished product warehouse overhead crane
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1
For this reason, the distribution of the warehouse presents facilities for the correct
operation using both systems, the conventional one by means of forklifts and the
second one, making use of the bridge crane.
With all the above mentioned considerations, a warehouse with the following
dimensions was calculated: 90 meters long, 30 meters wide and a height of 10
meters, this height is given in order to be able to attach the bridge crane inside the
structure. The total area of the warehouse is 2700 m2 (see Annex 12 for the
warehouse floor plan).
This structure will have foundations and an external wall with a height of 3 meters,
which will be maintained along the entire perimeter, for the other lateral structure,
steel plates with inverted U-shaped waves will be used, in the same way for the
upper covering.
The bridge crane will be of the PIMEG brand and will have an electromagnet system
attached to the lower part. It will also have a load capacity of up to 12 tons, which will
cover 80% of the total area of the warehouse.
No shelving will be used in this warehouse, since all products will be stored in a
stacked manner (see Annex 05).
The layout shows the number of stacked blocks by product type, distributed as
follows:
Figure 38 Layout of finished product distribution
LOADING ZONE 1 LOADING ZONE 2 LOADING ZONE 3 LOADING ZONE 4 LOADING ZONE 5
TOTAL AREA 2700m2
■ CRC100 ■ CRC200 SQR100 □ SQR200 ■ SHV05 ■ S HV10 ■ S HV15
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2
Figure 39 shows the loading area of the finished designed product warehouse.
Figure 39 Finished product warehouse
Figures 40 and 41 show the finished product blocks stored according to the distribution
shown in the layout.
Figure 40 Internal view of the finished product warehouse
Source: Own
Figure 41 Internal view of the finished product warehouse
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3
7. Operation and organization of the warehouse
7.1. Job openings
As already mentioned, the warehouses that will be implemented in the company will
be 3; the first is to store the billets used in the production process, the second will be
used for the final products, which are the round and square bars, and the sheets.
The second will be used for the final products, which are round and square bars and
plates. Finally, the third will be the warehouse for spare parts for equipment and
machinery, among other materials and inputs to be used during the production
process. In these warehouses the jobs will be as follows:
7.1.1. Warehouse Manager
Description of functions
Coordinates and supervises the tasks of people within the warehouse and assigns
each task to the most appropriate person to do it. In addition, it coordinates contact
with carriers and monitors proper warehouse maintenance and space availability
(Zlav, 2013).
Profile
- Bachelor's degree and/or degree in Administration, Industrial Engineering or

related fields.
- Knowledge of Supply Chain Management (Indispensable)
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4
- Certified in occupational health and safety (Indispensable).
- Minimum 4 years of experience (preferably in the industrial field).
- Intermediate or advanced SAP proficiency.
7.1.2. Warehouse Supervisor
He is in charge of supervising all incoming, outgoing and stored goods in the

warehouse. There will be two people in this position. They will be responsible for
overseeing the operations and procedures for receiving, inventory, packaging and
dispatch; as well as reporting to the warehouse manager on the activities taking
place within the site (Zlav, 2013). In addition, if necessary, it must support the bridge
crane operator.
Profile
- Bachelor's degree and/or degree in Administration, Industrial Engineering or

related fields.
- Knowledge of Supply Chain Management (Indispensable)
- Certified in occupational health and safety (Indispensable).
- Intermediate or advanced SAP proficiency.
7.1.3. Inventory and warehouse assistant
- Perform support tasks of reception, stowage, storage and classification of

supplies, materials and items supplied by suppliers, according to the procedure
established by the area.
- Record incoming and outgoing movements of materials and consumables.
- Participate in the physical inventory survey, according to established

procedures and standards.
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- Handling of material and product transport equipment within the warehouse
areas.
- Support in order preparation tasks for the dispatch of orders.
- Support to the bridge crane operator.
Profile
- Superior technical degree, with training and experience in warehouses.
- Knowledge of Supply Chain Management (Desirable)
- Intermediate to advanced level SAP proficiency (desirable)
7.1.4. Operator
- Perform loading and unloading operations of transport units and materials

entering and leaving the warehouse.
- Fill out the daily forklift checklist report.
Profile
- Completed Secondary Education.
- To have a valid A-1 license.
- Minimum 2 years of experience as a forklift and overhead crane operator in

industrial plants.
The table below shows the number of workers per warehouse.
Table 14 Number of workers per warehouse.

Billets Finished product Warehouse of materials,
Job title
warehouse warehouse spare parts and supplies
Warehouse Manager The 3 warehouses will be managed by a single manager.
Warehouse Supervisor 1 1 1
Inventory and warehouse assistant 1 2 1
Overhead crane operator - 1 -
Forklift operator 2 2 1
TOTAL 4 6 3
The table shows a summary of the number of workers per warehouse of the company Aleaciones Aceradas. Source: Own
elaboration.
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7.2. Documents used in the warehouse
7.2.1. Physical documents
7.2.1.1. Referral Guide
It is a document used in the transfer of goods (SUNAT), and is involved in the

processes of reception and exit of products or stock. In the first case, with the waybill
delivered by the supplier, we can check whether the order is correct or not, and if any
observation is found, it is noted on the document. On the other hand, for the dispatch
of goods, a waybill is generated (Annex 13) indicating the goods being sent to the
supplier.
7.2.1.2. Inventory taking record
This document allows us to identify the time and date of the beginning and end of the
inventory taking, as well as those responsible for carrying it out. The format of this
document can be found in Annex 14.
7.2.1.3. Inventory taking form
This document allows the record to be kept during the inventory taking, noting any
observations that may arise during this task. The format of this document can be
found in Annex 15.
7.2.1.4. Digital documents
An ERP (Enterprise Resource Planning System) will be used, which will allow:
- Record the entry, exit and movements of merchandise and stock.

- Send and receive requests for merchandise or stock.
- Communication between the different areas of the company.
- Reduction of coordination and decision making times.
7.3. Main warehouse processes
The main processes that take place in a warehouse are 3: reception, dispatch and storage.
The following is a description of 5 processes that are carried out within the warehouse of the
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company Aleaciones Aceradas, including the 3 previously mentioned.
7.3.1. Receiving process
5
8
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9
7.3.2. Process of dispatching stock (supplies and/or spare parts) to internal
customers.
6
0
6
1
7.3.3. Process of goods dispatch (final product) to external customer
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7.4. Optimization strategies for the proper operation of the warehouse
7.4.1. ERP
In order to obtain a proper operation of the warehouses we have to know how to

manage them, and what helps us to do it is an ERP. As previously mentioned, an
Enterprise Resource Planning System allows automating and modeling the different
processes within a company (LIDER Integrated Technology Consulting S.A.),
including storage, which facilitates the planning of all the company's resources,
streamlining the flow of information and decision-making within a company; in other
words, it makes processes more efficient.
The ERP to be used in the ALAC company will be SAP, because it is the most
recognized worldwide by different companies in various sectors. The investment cost
may be high, but the benefits are worth it (Aranda).
7.4.2. 5s philosophy
Applying a 5s philosophy is something that should be done in the warehouse,

because it allows creating a safe, clean, orderly and pleasant work environment in
which workers can perform their daily tasks and activities in the most efficient way
possible (VARGAS, 2002).
Order and cleanliness in a warehouse are important, because in this way one can
identify the stock easily and without wasting time; it also allows sufficient space for
the circulation of vehicles for the transport of cargo and for the movement of workers.
In addition, standardized processes allow for the reduction of errors when performing
tasks within the warehouse; quite apart from avoiding delays.
7.4.3. Kanban
It will be implemented in the supplies and spare parts warehouse, so that

replenishment or restocking will be much faster. But an electronic kanban will be
used, which is a card-based kanban linked to the ERP system. This method will
employ barcodes that when scanned will send a stock replenishment order to the
system, which will then be managed by the manager (Lean Manufacturing TODAY,
2013).
Both methodologies, kanban and the 5s are indispensable in a warehouse to make

the logistics process much more efficient; it is true that there are other methodologies
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such as Poka Yoke, Jidoka and Genchi Genbutsu; but unlike the former, the latter
three have greater application in the production area.
7.5. Occupational health and safety in the warehouse
For the design of the warehouses, occupational health and safety factors were
considered, being basic premises such as:
- Good ventilation and lighting.

- General signage and easy access to fire extinguishers.
- Emergency exits marked and free of obstacles.
- Aisles should be wide enough to facilitate the transport and handling of
goods.
- Reduction of aisle crossing to avoid collisions.
- Availability of exclusive roads for the movement of people (Ferrer).
Tasks of the workers
- Keep aisles clear and free of obstacles.

- Respect the rules of circulation in the warehouse.
- Handle loads correctly.
- Wear protective equipment, gloves, specific footwear and safety vest.
- Proper storage of materials (Ferrer).
Supreme Decree N° 42-F Industrial Safety Regulation
The following standards related to the steel industry will be considered and
highlighted:
- Only trained personnel certified and authorized by the company may operate
cranes, forklifts and other heavy mobile equipment.
- The operator must know the maximum load capacity of the crane or forklift
and not lift weights greater than those allowed with the equipment.
- Only trained and authorized employees may give signals to crane operators.
The crane operator shall follow the instructions of only one person except for
the stop sign.
- All cranes must be equipped with the following safety devices: emergency
switch (limit switch), running siren when the bridge is in motion, braking
systems for automatic stop, distance limit sensor, limit stops and fire
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extinguisher.
- It is strictly forbidden to stand, place part of the body or walk under or near
any suspended load. Likewise, it is not permitted to lift or transport
passengers in machinery intended exclusively for cargo.
- It is strictly forbidden to leave any vehicle with the engine running.
- If operators are unfit to perform the work due to illness or sickness, it must
be reported to assign a temporary operator.
- The crane operator and his assistant must inspect the chains, cables, hooks
and slings at the beginning and end of each shift. If defects are found, they
must be reported to the supervisor so that they can be replaced (National
Government, 1964).
The maintenance of warehouses, buildings, plants and facilities of the work center
shall be carried out taking into consideration the following safety measures.
- All storage must take place in authorized locations. Unserviceable materials

should be removed from the workplace. All reusable material should be
deposited in a sorted manner in the corresponding warehouse or container;
discarded material should be disposed of.
- Warehouses should have sufficient demarcated aisles to allow easy access
for all material (hot work steel rods).
- If the warehouse has shelves where materials are stored, they should be
anchored or recessed to the floor.
- The storage of wire rod coils and spools must have blocks or retaining walls
to prevent them from rolling and causing accidents.
- Each area of the warehouse should have properly marked parking areas for
vehicles (National Government, 1964).
The materials will be well stacked reaching a height of up to three times the length of
the smaller side of the base, as long as they do not interfere with:
- The storage instructions of the Material Safety Data Sheet (MSDS).

- Adequate distribution of natural or artificial light.
- Proper operation of overhead cranes and other equipment.
- Free passage in corridors and transit passages.
- The location and transfer of fire extinguishers or any other fire fighting
equipment (National Government, 1964).
For the new ALAC plant, the irrigation plan was developed, as well as the safety
plan. (See Annex 20)
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7.5.1. Environmental ergonomics
Ergonomic factors such as sound environment, visual environment, thermal

environment and mechanical environment were considered for the design of the
warehouses. Depending on the type of warehouse, the type of machinery it has, as
well as the type of tasks to be performed.
7.5.1.1. Sound environment
Exposure to noise inside the finished product warehouse:

In the finished product warehouse the worker is exposed to different types of
noise; among them, the overhead crane, the crane movement alarm and the
forklifts; therefore it is necessary to perform a noise analysis to know what is the
correct type of hearing protection that should
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be used by the workers inside the place. After taking data with the sound level
meter, the following results were obtained:
Table 15 Noise level of machines inside the warehouse
Equipment inside the
warehouse Noise level (dB)
Bridge crane in motion 100 dB
Overhead crane alarm 115 dB
Forklift 1 75 dB
Forklift 2 75 dB
Source: Digesa
In order to know the amount of noise in dB to which the worker is exposed we

have to use the following formula:
dB
Totai dbn
So for the warehouse we have: 10 10
100
115 75 75
dB Totai=10xl°910(10 10 + 10 10 +1010 +1010)
dB Totai = 115. 14 dB
We are assuming that all equipment is in operation, i.e., we find the maximum
noise level to which a worker could be exposed inside the finished products
warehouse; this with the objective of choosing the most appropriate hearing
protection.
According to the standard, the levels and hours to which a person may be
exposed are as follows (Digesa, 2010):
Table 16 Permissible noise level according to number of hours
Duration (Hours)
Noise level (dB)
24 80
16 82
12 83
8 85
4 88
2 91
1 94
Source: Digesa
As can be seen, the noise level found is 115 dB, which exceeds the permitted
level, which in this case should be 85 dB, since the workers are in the
warehouse for 8 hours (assuming that they are inside for 8 hours and with the
equipment in operation). In this case, the use of earplugs is necessary, as it
reduces up to 27 dB.
7.5.1.2. Visual environment
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For the calculation of the warehouse lighting, first of all, the dimensions of the
different warehouses were analyzed:
Finished product warehouse:

a = width (in m) = 30 m
b = length (in m) = 90 m
H = height (in m) = 10 m
Billets warehouse:
a = width (in m) = 40m
H = height (in m) = 4.5 m
Warehouse of supplies:
Closed environment
a = width (in m) = 15m
Semi-open environment
a = width (in m) = 15 m
Subsequently, the height of the working plane (h') was set, and in all cases the
working height will be 1 m.
According to UNE 12464.1 European standard on indoor lighting, the permissible

illuminance level is 200 lux for warehouses.
With these characteristics, we proceeded to select the type of luminaire to be

used in the warehouses.
Finished product warehouse:
Luminaire model: TRILUX 7650 G2 T LED10000-830 ET

Luminous flux: 9600 lumens
Figure 42 TRILUX 7650 G2 Series Luminaire
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Source: https://www.elektro4000.de/
Billets warehouse:
Luminaire model: TRILUX 7650 G2 B LED10000-830 ET
Warehouse of supplies:
Closed environment
Semi-open environment
1) Once the type of luminaire to be used was identified, the number and distance
of luminaires for each warehouse was calculated (See Annex 16).
Table 17 Distance between luminaires, according to the number of calculated rows

^ (m) b(m) Nancℎ0 Niarg
0
Finished product 30 90 17 40
Inputs closed 15 30 9 19
Semi-open inputs 15 13 9 8
Billets 40 15 23 16
7.5.1.3. Thermal environment
Thermal comfort is the situation in which people do not experience a sensation

of heat or cold, i.e. the conditions are adequate for the performance of a task,
preventing the worker from feeling uncomfortable when performing it (INSHT-
National Center for Working Conditions (CNCT), 2007). In this case, an
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application called "Global and Local Thermal Well-being" was used, which is
based on the UNE-EN ISO 7730 allowing the identification of the PMV and PPD
Indices (Predicted Mean Value and Predicted Percentage Dissatisfied
respectively).
Variables used:
- Average radiant temperature. It is the temperature of the objects that

surrounds a person. It will be assumed that it is 26ºC given by the station;
- Air temperature which, when no air conditioner is switched on, is
air-conditioning, in the enclosure we will assume that it is 27ºC.
- Relative humidity = 25%;
- Air velocity = 0 m/s.
- Metabolic activity: measured in W/m2, it measures the amount of heat that
the human body needs to dissipate to the environment per square meter of
skin to reach the thermal balance according to the activity performed
(Cuixart, 2014).
- For warehouse attendant: 100 W/m2
- For the forklift operator: 95 W/m2
- For warehouse supervisor: 95 W/m2
- Thermal insulation of clothing:
For the warehouse assistant: work clothes, underwear, thick socks, safety
shoes, safety vest, short sleeve polo shirt.
For the forklift operator: work clothes, underwear, thick socks, safety shoes,
safety vest, short sleeve polo shirt.
For the warehouse supervisor: safety shoes, thick socks, vest, light long-
sleeved shirt, jeans.
In the application the previously mentioned data are entered and the final result
is obtained.
Figure 43 Results obtained from the application "Global and local thermal well-being".
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Results obtained:
For the warehouse assistant:
- PMV: -1.25
- PPD:38%.
- Slight sensation of cold.
For the forklift operator:
- PMV: -1.007
- PPD: 29%.
- Slight sensation of cold.
For the warehouse supervisor:
- PMV: -2.45
- PPD: 92%.
- There is a considerable feeling of cold.
7.5.1.4. Mechanical environment-Vibrations
Mechanical environment:
Daily work situations were assumed by the personnel inside the warehouses,
where ergonomic evaluations were applied, such as the NIOSH and RULA
methods.
a) NIOSH Method
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The NIOSH method allows the evaluation of tasks involving the lifting of loads,
providing a result of the maximum recommended weight that it is possible to lift,
under the conditions of the workplace, to avoid possible back injuries, such as
low back pain (Ruiz, 2011).
In relation to the above, in the warehouse there will always be objects or

materials that after entering the warehouse have to be placed on the respective
shelves, and on many occasions they are carried or loaded by the warehouse
assistants, who without the help of any type of machinery place the stock in the
place destined for storage.
Application:
During the workday in the warehouse, the warehouse assistant was observed
placing boxes on the second and third levels of a shelf from a hand pallet truck
on which a UNE-EN 1398-1 pallet was placed. The hand pallet truck has a
height of 85 mm, and the pallet has a height of 122 mm. The second level of the
rack is at 1008.5 mm and the third level is at 1858.5 mm; the number of boxes
placed on level 2 are 5 boxes without handles weighing 30 kg, and the number
of boxes placed on level 3 are 6 boxes weighing 25 kg each; taking 25 minutes
and 40 minutes respectively. The depth of the shelf is 400 mm, but it has to
leave 50 mm free from the bottom. Finally, it is observed that the worker is 200
mm away from the pallet truck when picking up the boxes.
In general, the corrective measures of the task depend on the situation, they can
be (Canosa, 1998):
If HM < 1:
To enclose the load to the worker by eliminating horizontal bars or reducing the
size of the object.
Lifting close to the ground should be avoided and, if this is not possible, the
object should fit easily between the legs.
If VM < 1
Raise or lower the origin or destination of the survey.
Avoid lifting close to the ground and above the shoulders.
If DM < 1
Reduce the vertical distance.
If AM < 1
Position the origin and destination of the lift in such a way as to reduce the angle
of rotation or in a way that forces the worker to move the feet and take steps
instead of turning the body.
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If FM < 1
Reduce frequency rate
Reduce lifting time
Provide longer recovery periods
If CM < 1
Improve object grip by providing optimal containers with handles or indentations.
In our case, and with the result of the calculations (See Annex 17), the working
conditions must be modified to prevent workers from suffering any injury.
b) Postures for carrying out activities in the warehouse - Rula Method
In order to determine the correct postures when analyzing an activity, we have to

use the Rula method, which allows us to evaluate the exposure of workers to
risks due to inadequate postures that may cause body disorders (Diego, 2015).
The method consists of giving scores for the upper and lower extremities
according to the characteristics of the movements performed during the activity.
These scores allow obtaining values and thus determining the final score (Diego,
2015). (See Annex 18)
The final value obtained is compared with standardized values to determine
whether the task is correct or needs changes (Diego, 2015).
Table 18 Table of results of the RULA method

Score Level Performance
1o2 1 Acceptable Risk
3o4 2 Changes in the task may be required; further study
is desirable.
5o6 3 Task redesign is required
7 4 Urgent changes are required in the task
Source: Digesa
Application 1:
For administrative activities related to the warehouse, it is assumed that the

manager is seated most of the working day in front of a computer, flexing the
neck between 10 and 20 degrees approximately. Occasionally he turns his head
and trunk to the sides to look for some desk implement or document he needs;
with the same purpose of being able to move some objects on the desk, he
moves his forearms to the sides, opening them well beyond the line of the elbow
projection. Forearm movements are between 60 and 100 degrees. In addition,
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he is seated and well supported in the chair. The movement of the arms is
between 20 and 45 degrees. When working, it performs a wrist movement
between 0 and 15 degrees, and occasionally performs a mid-range twist. The
grips of stationery are static and the weight does not exceed 2 kg.
According to the values obtained in Annex 19, a final score is obtained using the
global value of A and B: 4, and changes may be required in the task; it is
advisable to study this further.
Application 2:
In the finished product warehouse, workers place the packages of a maximum of

25 kg on the shelves, picking them from the pallet truck, where the following is
observed:
Performs arm movements between 20 and 45 degrees with slightly elevated

elbows when loading boxes. The forearm moves between an angle of 60 and
100 degrees to position the boxes on the respective shelf, with a radial deflection
at the wrist and a mid-range turn. In order to see where to pick up and place the
box, he makes movements greater than 20 degrees and turns his head to the
sides. Occasionally, in order to pick up light boxes, it tilts its trunk more than 60
degrees, and sometimes turns laterally. The worker is standing correctly and
without support. Boxes weighing between 15 and 20 kg are held for
approximately 4 to 5 minutes from the time they are lifted until they are placed in
their final position.
Performing the analysis developed in Annex 19, a final score is obtained using
the global value of A and B: 7, requiring urgent changes in the task.
c) Vibrations
Regarding vibrations, it was identified that the place where the workers could
suffer some inconvenience was while they were using the forklift.
The forklift used for the billet and finished product warehouse has a pneumatic
suspension seat, which protects the operators from the vibrations of the
machine. This characteristic is also met by the electric forklift in the supply
warehouse.
8. Finished product handling unit design

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The packaging environment for the finished products will be located at the end of
the production line, followed by the heat treatment station, in this environment
there will be a set of rollers where the final products will be cooled with the
ambient temperature to later pass through the strapping machine and finally to
be transferred to the finished product warehouse.
The dimensions of this environment are 36 meters long and 24 meters wide,
giving a total area of 864m2. The rollers, the cooling table, the strapping machine
and the galloping table occupy an area of 340
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m2
, the rest being destined for the temporary storage of the final product, in
addition to the space necessary for the maneuvers of the forklifts for its transfer
to the finished product warehouse.
Figure 44 shows the layout of the finished product packaging area.
Figure 44 Layout of finished product packaging area
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Figures 19 and 20 show the finished product handling area in a 3D model, where
the planned layout can be better distinguished.
Figure 45 View of conveyor rollers and automatic strapping machine
Figure 46 General view of the finished product handling area

8.1. Finished product handling unit operation
At this stage of the process, the level of automation is maintained, with

respect to the calculated capacity, depending on the type of product being
produced, the speed of strapping will be graduated, this is directly related to
the final temperature obtained at the exit of the oven. Depending on the type
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of steel, cooling can be forced with water (inside the heat treatment booth) or
at the outlet, by means of fans located at the bottom of the rolls and cooling
table.
Once the product is at room temperature, quality control personnel will
proceed to perform a hardness test (Shore or Brinell), in order to guarantee
the characteristics specified in the technical data sheet. If the product meets
the required quality, the set of bars is approved for transport to the final
product warehouse. The transportation of this environment to the warehouse
will be carried out by the finished product warehouse personnel with their
respective forklifts. In this case, the gantry cranes will facilitate that the
arrangement of the set of bars or plates is adequate for the transport with the
forklifts.
8.2. Selection of the strapping machine
In the case of the strapping machine, it must satisfy the capacity of the
calculated line; because of this there are three types of machines, the first is
a purely manual machine, where the total participation of 3 people is
necessary, the second is a semi-automatic machine, where two people are
needed, and the third is an automatic, where only one operator is
needed.The first is a purely manual machine, where the total participation of
3 people is necessary, the second is a semi-automatic machine, where two
people are needed, and the third is an automatic machine, where only one
operator is needed.
Due to the dimensions of the different types of products to be produced, it
was necessary to select which machine was the most adequate for the
process, this does not necessarily have to be the cheapest or the most
expensive, a series of criteria must be taken into account, these being the
following:
- Technical: The machine guarantees the strapping of finished products

in all their presentations, in addition to being able to satisfy an
increase in production speed in a simple and automated way.
- Costs: This criterion evaluates operating costs, equipment costs, in

addition to the cost of installation.
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- Quality and safety: The quality of the strapping is evaluated, whether
in terms of cutting, tension and type of finish, as well as the degree of
safety for the operators.
Based on these criteria developed in Annex 21, it was concluded that the
best option is the automatic strapping machine, since it is easier to modify the
degree of production as required, in terms of quality and safety for the
operator.
Although not the cheapest option, the cost of installation is offset by the cost
of production and operation. Table 19 summarizes the criteria.
Table 19 Strapping mechanism selection summary matrix

Mechanism
Selection Criteria Weight Manual Semiautomatic Automatic
Value Score Value Score Value Score
Flexibility to increase
26 2 52 3 78 4 104
production
Low equipment cost 18 5 90 3 54 2 36
Production capacity 15 3 45 4 60 4 60
Level of automation 12 0 0 3 36 4 48
Operator safety 10 3 30 4 40 5 50
Voltage quality 8 2 16 4 32 4 32
Cutting quality 6 2 12 3 18 4 24
Investment 5 2 10 2 10 2 10
Total 255 328 364

8.3. Management unit guidelines
- Only bars and/or plates that meet quality control approval will be sent to the
finished product warehouse.
- Only the bridge crane will move the set of blocks to their temporary location
for subsequent transport; at no time will the forklift approach the galloping
table.
- When the quality control personnel are present in the area, the overhead
crane will be stopped until it is removed from the area.
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- Only personnel trained, certified and authorized by the company may operate
cranes and/or forklifts.
- The operator must know the maximum load capacity of the crane or forklift
and not lift weights greater than those allowed with the equipment.
- Only trained and authorized employees may give signals to crane operators.
The crane operator shall follow the instructions of only one person except for
the stop sign.
- All cranes must be equipped with the following safety devices: emergency
switch (limit switch), running siren when the bridge is in motion, braking
systems for automatic stop, distance limit sensor, limit stops and fire
extinguisher.
- When the forklift and overhead crane are in motion, they should turn on their
circulator and emit a characteristic warning sound.
- All storage must take place in authorized locations. Unserviceable materials
should be removed from the workplace. All reusable material should be
deposited in a sorted manner in the corresponding warehouse or container;
discarded material should be disposed of.
8.4. Operations Diagram and Process Analysis Diagram
The process starts with the exit of the different products, either plates or bars,
from the heat treatment station, once they leave it, depending on the type of
steel, it is cooled with water in a controlled manner, then the bars and plates are
transported by the rollers to the cooling table, here they undergo a second
cooling, this can be forced or natural.
When the final product has a temperature below 35° C, a quality control worker
will enter to take a hardness sample, if it meets the characteristics of the desired
product, the respective strapping is approved, therefore, the set is transported to
the strapping machine, which must contain the amount of straps required for the
process. Then a final inspection of the set is made, to finally place the
representative label. In case the adequate hardness is not met, a second heat
treatment will be carried out in order to guarantee the quality of the product.
Figure 47 Finished product handling unit operations diagram
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Figure 48 WTP of finished product handling unit
PROCESS ANALYSIS DIAGRAM (PADA)
Summary
Diagram 1 n® Sheet 1
Activity Current Proposed Savings
Date of completion: 23/11/2018 Operation o 7 0
Ac
Process: Brewing Transportation 6 0
Type of Diagram Material ( X ) Operator ( ) Inspection □ 2 0
Product ( ) Machine ( ) Delay D 2 0
Storage V 0 0
Method Actual ( ) Proposed (X) Distance (meters) 40.5 0
Location: ALAC Plant Time (minutes) 0 0
Ope. Trans P/I Insp Dem Aim

Description Quantity Distance (m) Time (min) Remarks
O E •□ D /
Receipt of special steel bars and/or plates Ix From the heat treatment station
Primary cooling x Pressurized water jets are used
—
Steel temperature inspection Dx Depends on each presentation
Transport of bars and/or plates 7.50 -x By rollers at a speed of 1 m/s
Secondary cooling € It is performed on the cooling table
Wait until a temperature below 30°C y
Hardness measurement inspection -x Brinell or Shore hardness
Reception of metal strapping AX
Strapping block weighing c
Transport of strapping to packaging area X
Transport of bars and/or sheets to the strappingmachine
8.00 y By rollers at a speed of 1 m/s
Strapping process X
Transport to the galloping table 6.00 %—
Final inspection Ex
Tagged x3 ----- According to type of final product
Transport of strapped blocks loading area 4.00 -X
Wait until blocks are assembled according to type —--- -x Depends on each presentation
Transport to finished product warehouse 15.00 X- -—■— —
Total 40.5 07 6 1 2 2 □
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8.5. Description of the assigned product packaging
For the preparation of the CRC100 - C300 product packaging, which consists of a hot
work steel in a 100 mm diameter x 2000 mm long circular bar presentation, Peruvian
Technical Standard No. 341.147 was taken into consideration, which refers to the
use of steel strapping in large dimension articles.
8.5.1. Product package
For the elaboration of the product package, steel will be used in a strip or strap
presentation with the following characteristics:
- High mechanical strength and high deformation capacity

- High thermal stability
- Great versatility
- Magnetic quality for easy recycling
- Highly light and radiation resistant
Figure 49 Steel straps to be used
. https://encrypted-tbn0.gstatic.com/Source:https://encrypted-tbn0.gstatic.com/
Additionally, square wooden blocks will also be used to separate each row of
bars, separated by blocks, depending on the type of product. The use of wood is
due to the following characteristics:
km/m3
- It has a density of 400-650 , which is related to a high mechanical
resistance.
- It has resistance to bending (heat, humidity and pressure).
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Resists the action of time
Figure 50 Wood block
Square section wood used for separation of packed steel block. Source:
https://ferreteriavidri.com/
The use of cardboard is optional; for other cases, such as steel plates, it is used
to protect the surface from some type of impact, in the case of CRC100 C300
steel, it could be used to protect the faces from possible physical shocks.
To form the set of CRC100 C300 steel bars, the density of the steel type was
kg/m3
taken into consideration, which has a value of 7750 . The volume of each
circular bar amounts to 0.0157 kg/m3. Obtaining a weight per bar of 122 kg.
Annex 22 shows that the tensile strength of the metal band is 2500 kg, therefore,
performing the calculations with a safety factor of 3.5, it was considered
necessary to use three lines along a block of fifteen bars, as shown in Figure 51.
Figure 51 CRC100 C300 circular bar block held in place by 32mm steel strapping
8.5.2. Package labeling
For the elaboration of the sign, it was determined that one sign will be placed on
the set of bars, which will be glued on one of the faces of the lateral section. Law
29571 and Law 28405, which establish the instructions for labeling merchandise,
were consulted for its preparation.
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In addition, a set of color series was established to identify the different types of
steel produced by the company, both in the warehouses and in transportation.
This was done based on the composition of each type of steel and the use it will
serve. Figure 52 shows how the different types of steel were classified and it
was determined that the corresponding color for the CRC100 C300 bar will be
yellow and red.
Figure 52 Identification of steels by color
IN
L
ALAC
IDENTIFICATION 0 E STEELS BY COLOR
Os==
Blue - Yellow - Blue FAST STEELS
Q.
STEELS WORK IN
Yellow -Red
HOT -Etnadn
Q
STEELS WORK IN
Orange - Silver
HOT -Fup
a
STEELS WORK IN
Yellow - White
FROO-Veiea
STEELS WORK IN
Yellow - Red - White
COOL-Vatncez
STEELS COLD WORKING
Red -Black #= Fe*= Fe Harm
o
STEELS COLD WORKING-
Yellow - Black
Igacn
STEELS FOR PLASTIC

Green - Blue - Red MOULDS - msnpimr
Green - Red - Black STEELS FOR MOLDS

PLASTIC --X )
Steel identification sheet by color series. Source: Own elaboration
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As a final result, the following label is obtained:
Figure 53 Final product label
Product name ALAC C300
Steel type STEEL FOR CAPACITY WORKING - Extrusion
Circular section bars with diameter 100 mm and

Description length 2000 mm
Country of origin Peru |

Weight 1464 Kg
Number of rods / plates 12
Date 23-07-2019
Casting mix code PAII-F3425-M00236-CC85214
Label format for packaged products. - Source : Own elaboration
The set of round bar blocks, together with the corresponding labels, would look
as follows:
Figure 54 Round bar block
Set of blocks of CRC100 C 300 steel round bars stacked 4x5.- Source: Own elaboration
9. Design of the assigned product
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Product development will be based on a design methodology.
9.1. Design Methodology
The methodology used as a reference for product development is DFSS (Design for
Six Sigma). For the development of the product, an analysis will be carried out in
four phases, as shown in the table below.
Table 20 DFSS Methodology

PHASES
-Product draft
1 Identification of requirements
-Identify market needs
Product design based on market -Transfer of needs to product design

2
needs -Generation of design alternatives
-Evaluation of design alternatives
3 Design optimization -Process optimization
-Pilot test and refinement
4 Design validation
-Commercial deployment
The table shows a summary of the steps to be followed for product development. Source: (Yang, 2003).
9.1.1. PHASE 1: Identification of requirements
a) Draft product
ALAC is interested in expanding its sales market based on growth in the steel
sector. It plans to sell circular bars, rectangular bars and industrial steel plates.
The company seeks to transfer its position in the construction steel market to
the industrial steel market.
The type of steel to be worked is a hot work steel.
b) Identification of needs
Who is the consumer?
Consumers are industrial companies that use steel for the manufacture of hot
working tools (lathe and milling cutters), for the manufacture of dies for the
extraction of aluminum profiles, die-casting tools.
Market needs
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Once the type of consumer has been identified, the CTS (Critical to satisfaction)
will be established to obtain and optimize better designs.
Table Nº 21 Critical to Industrial Customer Satisfaction

Critical to Industrial Customer Satisfaction
Item Critical to Satisfaction Description
Compliance in terms of toughness, impact,
Compliance with international steel
1 elasticity, expansion, temperature resistance, wear
standards
and tear, composition.
Compliance with legal standards in obtaining the
2 Compliance with legal regulations
product.
3 Price Price in line with the market
4 Availability Good product availability
5 Quality Product quality
Certifications
Quality in management, occupational ISO9001
6
health and safety and the environment ISO14001
OSHAS18001
The table shows the critical factors for satisfaction and their description. Source: (Yang, 2003).
A survey was made to people related to the steel industry, the questions asked
were: What do you consider when acquiring industrial steel? (2pts), what is the
second thing you considered when purchasing industrial steel? (1pt). The
survey was conducted among 20 people.
Graph 1 First and second preference
The graph shows the results of the survey. Source: Own.
The graph shows that for the industrial consumer the most important thing is
compliance with international standards and an attractive cost. The study will
address technical capabilities.
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PERU FURNACE AND MACHINERY

FACULTY OF INDUSTRIAL ENGINEERING

Cycle period 2018-3

Rocio Del Carmen Zapana Espinoza

U17104676 WALLS MURILLO, Carlos Manuel

PERU FURNACE AND MACHINERY............................................................1

2.1. General Objective

2.2. Specific objectives

- Prepare the C300 CRC100 product data sheet.

- Design the handling unit for finished products

- Design the necessary warehouses in 2D and 3D models for optimal plant

- Elaborate a production program according to Marketing projections.

3. Importance and justification of the study

Based on 2017 year-end information, the global and regional economic

According to information available up to November 2017, world imports grew

- General area: Project Management.

4. Description of the company

- Name of the company: Aleaciones Aceradas S.A.

We are a company in the steel sector dedicated to produce construction

- Respect: To comply with a conduct that values the fundamental rights of

4.4. Organizational structure

The general management has seven submanagers and a legal advisory

Figure 1 Organizational structure of the ALAC company

Loans and collections

Source: UTP - Integrative Course

The general management is in charge of enforcing the company's strategic

The administration and finance management is responsible for facility

Commercial management is responsible for the sale of the company's finished

The operations management is in charge of the production and quality control

Research, development and innovation management is responsible for the

Human capital management is in charge of payroll administration, training

The occupational health and safety and environmental management is

4.5. Process map

4.5.1. Description of the process map

The main objective of which is customer satisfaction.

Source: Own elaboration

Table 1 Required production according to type of finish and type of steel

Code. ALAC CRC100 CRC200 SQR100 SQR200 SHV05 SHV10 SHV15

R290 149 24 181 74 0 0 0

• CRC100: Bars 100 mm diameter round x 2000 mm long.

• SHV10: 10 mm thick sheets - 1250 x 2500 mm.

5.1.1. Heating ovens

Figure 4 Multiple lamination box

5.1.3. Cooling tables

The purpose of the cooling tables is to lower the temperature by means of an

Figure 5 Cooling table

An overhead crane or bridge crane is a type of crane used in factories and

5.1.5. Conveyor rollers

Figure 7 Transport rollers

Source: BAMA Systems

Figure 8 Automatic rebar cutting machine

5.1.7. Strapping machine

This machine is in charge of grouping the final product obtained, in the

5.1.8. Heat treatment station

It is a station very similar to that of a heating furnace, unlike the

Source: SMS Group

5.2. Raw materials

5.2.1. Raw material requirements

In this process, the material to be deformed is introduced between two

Figure 10 Laminating process

Table 2 Finishing characteristics of the final product to be produced

Type of Cross- Volume

CRC100 0.00785 2 0.01571

Table 2 shows a summary of the physical characteristics of the final products to be