A N Singh, Lean Solutions

Enhancing Global Competitiveness
of Indian Steel through

Lean Manufacturing
Akhilesh N Singh
Principal Consultant, Lean Solutions
v As per National Steel Policy Indian Steel industry has
planned to expand its capacity to 300 mTPA by year 2030
v Unless we export Indian Steel in global market, new
capacity cannot be fully utilized
v To make export Indian Steel has to be globally competitive.
v Enhancing global competitiveness is bigger challenge than
establishing new capacity
v Theme of this presentation is how to enhance global
competitiveness of Indian Steel?
2
Lean Solutions www.leanzed.com
World Steel Production 2018
China: 928.3 mT (51.3%)

India : 106.5 mT (5.9%)
World Total : 1808.6 mT
3
Indian Steel Production
Yr. 2030: India 300 mT (Approx.15% of Global Production)
Yr. 2018: India 106.5mT(5.9%).
2030
4
Challenge for Indian Steel Industry?
Increase the global

market share from
5.9% (2018) to
15% (2030)
5
How to increase market share?
Production Capacity Global Competitiveness
Steel Plants with Cont. Improvement &

Latest Technology Operational Excellence
6

Yardstick to measure Competitiveness?
Customer Value
World-Class Reasonable Quickest
Quality Price Delivery
Quality Cost Delivery
RTY Waste Throughput
Organization’s Profitability
7
Questions for Indian Steel Producers?
Are we clear about…....... Answer

1. What makes Indian Steel Costlier?
2. Can we increase our global market share
with the current way of working?
8
To enhance global competitiveness,
People need to Change the way of Working
9
To solve the steel industry's problem,
People need to Change their Thinking
10
How to make Indian Steel
Globally Competitive?
A different way of Thinking & Working

Evolution of Production Management
12
History of Cost Reduction
Throughput Increase & Cost Reduction
Cost of Manufacturing
Radical Cost Reduction

Throughput (Flow)
2
13
What is Lean?
Lean is a set of philosophy,

concepts, principles, and tools
designed to deliver the most value
to the customer by minimizing
waste while consuming the fewest
resources.
Womack Jones

Steel Manufacturing?
a network of processes......
15
In every production process we use 4 Ms
Materials, Machines, Methods & Manpower
Product
Manpower
Material
Machines Methods
16
In all processes we do 2 types of activities
Value Added + Non-Value Added
Waste
Value
Manpower
Value Added Non-Value Added

Material
Machines Methods
17
Steel Production Value Stream
Value (QCD) + Waste (8 Types)
18
8 Types of Waste
19
Impact of Waste
1. Defects Cost Poor Q

Product 2. Inventory Cost Delay
3. Transportation Cost Delay
Process Cost
5.Overprocessing Cost Delay

Cost Delay
People 6.Waiting
7.Motion Cost Delay
8. Talent Cost
20
Answer to Question 1

1. What makes Indian Steel Costlier?
2. Can we increase our global market share
with the current way of working?
21
What makes Indian Steel Costlier?
Ex-factory
Cost = Cost of Value + Cost of Waste
Profit
Selling Price
P
P
Cw makes the Indian
Ex-Factory Cost
Cw
Steel Costlier !!!!
Ex-Factory Cost
Cv Cv
22
Cost of Waste
Sigma level & Competitiveness
Sigma Defect Rate Cost of Competitiveness

Level PPM WASTE
(of Turnover)
6 3.4 < 10%
World Class
5 233 10 - 15%
4 6210 15 - 20%
Industry
3 66807 1520-- 30%
30% Average
2 308537 30 - 40%
Non
1 690000 > 40% Competitive

Lean approach to Improve
Competitiveness (Reduce Cost)?
1.Detect Waste
2. Eliminate Waste
3. Prevent Waste
24
Answer to Question 2

1. What makes Indian Steel Costlier? Waste
2. How to increase our global market share by
changing the current way of working?
25
Lean Transformation of Steel Co.
Lean Transformation
Framework
n Problem Solving
n Process Improvement
n People Development
n Lean Leadership
n Lean Culture
26
Focus of Lean Transformation
27
Ultimate Results of Lean
28
Lean Manufacturing
Case Study
Productivity Improvement of SMS
(EAF Cycle Time Reduction)
n A case study of Lean implementation in an Integrated

Iron & Steel Plant- Productivity Improvement
n Focus: EAF Setup Time reduction
n Lean Tool applied: SMED
(Single Minute Exchange of Die)
n Results: Setup time reduced by 4.8 Mnts./Heat
n Cost reduction: Rs.300/Metric Ton
n Annualized saving: Rs. 90 Crores
30
Integrated Iron & Steel Plant
Production Constraint Diagnosis
Hot Rolled
Coils
Raw Materials
Iron Steel Hot Strip

Making Making Rolling
Capacity Production Capacity

3.0 mT/Y 2.6 mT/Y 3.0 mT/Y
Constraint in Steel Making division

Steel Making Value Stream
Steel
Hot Metal + Sponge Iron
Slabs
Electric Ladle Continuous

Arc Furnace Refining Caster
Furnace
Capacity Capacity Capacity

2.6 mT/Yr 3.0 mT/Yr 3.0 mT/Yr
32 Further diagnosis points out low productivity of Electric Arc Furnace

Cycle Time of Steel Making Furnace
SetupTime
(20 min)
Blowing
Time
Total
Cycle Time: 96 Mnts. Arcing
(76+20 minutes) Time
per heat

Furnace Setup Steps
1. EBT opening
2. Flapper opening
3. Tapping
4. EBT platform position
5. End brick cleaning
6. Flapper closing
7. Tap hole filling
8. Furnace leveling
9. Door cleaning
10.Gunning
11. Launder & Top lance positioning
12.Hot metal pouring
13.Blow start
Current Setup Time : 19.2 Mints.
Target Setup Time : 16.0 Mnts.
34
Setup Time Improvement
Overall Project Progress
20 19.2
18.13 17.9 17.5
18
Time, min
16
14.35
14
.
12
Before GK After 1 After 2 After 3 After 4
month months months months
35
Financial Savings from Improvement
Cost benefit analysis : 27th Jan 04
As per Rolling
Particulars
Plan
Time available /day, min 24 x 60 = 1440
Target no. of heats / day 30
Heat-size, tons 200
Planned EAF productivity = 30 x 200 / 1440
ton / min = 4.17
i.e., ton / sec. 0.070
Time saving per heat due to GK 291 sec
Time saving per day, sec. 291 x 30
i.e., 8730
Additional productivity due to time saving / day = 0.070 x 8730
i.e., ton / day 611
Contribution (Rs.) before interest / ton 4390
Total savings, Rs.lacs. / day 26.83
Total savings, Rs. crore/ month (28 working days) 7.51
Total savings, Rs. crore/ annum 90.14
36
Lean Thinking
37
38
Akhilesh N Singh, ansingh11@gmail.com, Ph 9811054753, www.leanzed.com
n Associated with industry for last 45 Years.
n Worked in steel industry at SAIL- Rourkela Steel Plant & Jindal Stainless Ltd.
n Lean & Six Sigma Consultant at FICCI, UNIDO, currently at Lean Solutions.
n Trained in TQM, Lean, TOC & Six Sigma in USA, UK, & Japan
n Provided consulting/training to more than 250 leading organizations of
5 countries (India, Bangladesh, Saudi Arabia, Qatar, and UAE)
n B.Tech -Metallurgy (IIT BHU), Dipl. in Bus. Mngmnt. & Gemba Kaizen (Japan)
n Author of14 Books on: Stainless Steel, Lean Manufacturing, TQM, ZED, etc...
39

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Enhancing Global Competitiveness

of Indian Steel through

China: 928.3 mT (51.3%)

Yr. 2030: India 300 mT (Approx.15% of Global Production)

Yr. 2018: India 106.5mT(5.9%).

Increase the global

Production Capacity Global Competitiveness

Steel Plants with Cont. Improvement &

Lean Solutions www.leanzed.com

Quality Cost Delivery

RTY Waste Throughput

Are we clear about…....... Answer

A different way of Thinking & Working

Radical Cost Reduction

Lean is a set of philosophy,

Lean Solutions www.leanzed.com

Value Added Non-Value Added

Value (QCD) + Waste (8 Types)

1. Defects Cost Poor Q

5.Overprocessing Cost Delay

Are we clear about…....... Answer

Sigma Defect Rate Cost of Competitiveness

6 3.4 < 10%

Lean Solutions www.leanzed.com

Are we clear about…....... Answer

n A case study of Lean implementation in an Integrated

Iron Steel Hot Strip

Capacity Production Capacity

Constraint in Steel Making division

Lean Solutions www.leanzed.com

Electric Ladle Continuous

Capacity Capacity Capacity

32 Further diagnosis points out low productivity of Electric Arc Furnace

Lean Solutions www.leanzed.com

Lean Solutions www.leanzed.com

Overall Project Progress

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