Professional Documents
Culture Documents
Designing, Manning and Operating A World-Class Downstream Business
Designing, Manning and Operating A World-Class Downstream Business
Dr Tom Farleyy
Managing Director
Innoval Technology Ltd
Summary of Presentation
Innoval Technology
¾ Background
g
Market Analysis
Equipment Specification
¾ Technical Configuration
¾ Technology Choices
Plant Design
Cost Modelling
Analyse
y competition
p in home and export
p markets
m
¾ Quality required to compete in chosen market
Market Analysis
Equipment Specification
¾ Technical Configuration
¾ Technology Choices
Plant Design
Cost Modelling
Coca-Cola’s First All Aluminium Can,, 1967 Coca-Cola Aluminium Can,, 2009
(weight 21g) (weight 12g)
Profile
(
(crown) )
~0.5%
Al strip 250 +/- 5 microns
Strip wid
dth ~ 1.8 m
Source: SMS
Scalper
Furnaces Filter
Furnaces Filter
Continuous caster
H t roller
Hot ll
(Self-
anneal)
Cold coil
Cold finish
hing Cold mill
mill
Coating Final
Inter-anneal Cold roughing mill
anneal
Doubling mill
m Cold mill
(foil)
Standards - High Mg 99 99 99 8
99 99 8 8
P
S f
Surface Sensitive
S iti Products
P d t
Thick Products 99 99 8 8
Clad Products 99 99 8 8
Others 99 99 9 9
99 meets world class quality requirements
9 can be made
e but does not meet all quality requirements
8 cannot be ma
ade or fails to meet most quality standards.
Market Analysis
Equipment Specification
¾ Technical Configuration
¾ Technology Choices
Plant Design
Cost Modelling
Removall
R Final gauge [mm]
Final gauge [mm] 01
0.1 0 22
0.22 05
0.5 08
0.8
of heavy Percent of production 39% 28% 26% 7%
gauge Rolling time [min] 54 18 10 6
product Handling time [min]
g [ ] 30 20 20 15
Overall capacity [ktonne/yr] 83
Market Analysis
Equipment Specification
¾ Technical Configuration
¾ Technology Choices
Plant Design
Cost Modelling
Calculation
C l l ti off C
Capital
it l C
Costs
t (CAPEX)
¾ Inclusion of all key and ancilliary equipment
400,000 6,000,000
250,000 3,000,000
CAPEX [U
200,000 2,000,000
150,000 1,000,000
100,000 0
C
50,000 -1,000,000
0 -2,000,000
2009 2014 2019 2024 2029 2034
YEAR
Market products
d t Equipme
ent equipment
i t Plant
Analysis volumes Specifica
ation Design
Cost Sales
IRR, NPV, etc.
Modelling prices
no
Viable?
yes Bankable
Study
Commercial-in-Confidence, © Innoval Technology Ltd
IP08-006, Slide 25
Developing
g the Right Skills
Typical Staff Requirements for a Downstre
eam Plant
Managerial ¾ Planninng
¾ Schedu uling
¾ Finance e
¾ HR
Sales ¾ Sales manager
m for each major product group
¾ Techniccal Representatives at customer plants
Technical
¾ Metalluurgists
¾ g ers
Engine
¾ Chemis sts
¾ Materiaals scientists
Plant
Pl t and
d Maintenance
M i t ¾ Statisticcian
¾ Engineers
¾ Electric
cal
¾ Mechan nical
Other ¾ Craftsmmen
¾ Medica al
¾ Fire pro
otection
¾ Driverss
Graduates
¾ Need a g
good supply
pp y of the correct discciplines
p
¾ They will need further development an
nd training
Experienced Staff
¾ Internal transfer from other group operrations (if they exist)
¾ Access to “early retirees” from world-class operations
¾ Head-hunt from competitors
Retention of Staff
¾ Risk of competitors headhunting your g
good people
¾ Threat to both existing and new compa
anies
¾ May
y come from a related industry,
y, eg
g Steel
S and aluminium rolling
g need similar
skills
¾ Potential loss of knowledge
Process Metallurgy
Control Systems Profile Measurement
Gary Mahon and Control
Dan Miller
Process Metallurgy Kyle Smith
Workshop Rolling Process Models Wrap up Session
Gary Mahon
Wrap up Session Chris Davenport
¾ Determine
D t i gaps iin th
the kknowledge
l d b base
e (R&D programme))
¾ Loss of long-serving, knowledgeable employees
e
¾ Standardise operations and develop “B
Best Practice”
Define Product
Attributes
Realisation that investment in world class equipment does not on its own give world
class products.
Many examples in aluminium rolling mills and
a extrusion plants.
¾ Return on investments taking longer th
han planned
¾ Cannot match quality of world-class prroducts
¾ Need expertise that equipment supplie
ers do not usually possess
For single-site companies the same function can be carried out by external
consultants
¾ Can also be of benefit to large multi-na
ationals to get a “fresh view”
Equipment Operation
¾ Standard Operating Practices
¾ Use
U off Statistic
St ti ti Process
P C
Control
t l
¾ Maintenance schedules and strategies
¾ Investment plans
Operational Efficiency
¾ Machine utilisation
¾ Recoveries
Product Quality
¾ Test
est p
procedures
ocedu es
¾ Reject Rates
Technology System
¾ Approach to problem solving
¾ Product and Process improvement methods
A key stage is matching equipment specifiication to the optimum product mix in order to
maximise the financial returns from the pla
ant
Achieving the anticipated financial returns requires more than just state of the art
equipment and technology – but also input from world-class expertise and know-how
www.innov
valtec.com