AN APPROACH TO IMPLEMENT LEAN CONCEPTS

IN SUPPLY CHAIN OF STEEL INDUSTRY.

A Project Report Submitted to

Shri Ramdeobaba College of Engineering & Management, Nagpur

in Partial fulfillment of VI semester of

Bachelor of Engineering
In

INDUSTRIAL ENGINEERING

By
Jatin Pradhan (46)
Lakshya Sarda (52)
Shubham Tiwari (72)

Under the Guidance of

Dr. V.S Deshpande
&
Prof. Himanshu Shukla

Department of Industrial Engineering

Shri Ramdeobaba College of Engineering and Management
Nagpur, 440013
(An Autonomous Institute affiliated to Rashtrasant Tukdoji Maharaj Nagpur University
Nagpur)
May, 2021

1
AN APPROACH TO IMPLEMENT LEAN CONCEPTS
IN SUPPLY CHAIN OF STEEL INDUSTRY.

A Project Report Submitted to

Shri Ramdeobaba College of Engineering & Management, Nagpur

in Partial fulfillment of VI semester of

Bachelor of Engineering
In

INDUSTRIAL ENGINEERING

By
Jatin Pradhan (46)
Lakshya Sarda (52)
Shubham Tiwari (72)

Under the Guidance of

Dr. V.S Deshpande
&
Prof. Himanshu Shukla

Department of Industrial Engineering

Shri Ramdeobaba College of Engineering and Management
Nagpur, 440013
(An Autonomous Institute affiliated to Rashtrasant Tukdoji Maharaj Nagpur University
Nagpur)
May, 2021

2
 Shri Ramdeobaba College of Engineering and Management,
Nagpur
(An Autonomous Institute Affiliated to Rashtrasant Tukdoji Maharaj Nagpur
University Nagpur)
Department of Industrial Engineering

CERTIFICATE

This is to certify that the Thesis on “AN APPROACH TO IMPLEMENT LEAN

CONCEPTS IN SUPPLY CHAIN OF STEAL INDUSTRY” is a bonafide work of
Jatin Pradhan, Lakshya Sarda & Shubham Tiwari submitted to the Rashtrasant
Tukdoji Maharaj Nagpur University, Nagpur in partial fulfillment of the award of a
Bachelor of Engineering in Industrial Engineering has been carried out at the
Department of Industrial Engineering, Shri Ramdeobaba College of Engineering and
Management, Nagpur during the academic year 2019-20.

Date:
Place: Nagpur

Prof. Dr. V.S. Deshpande

Himanshu Shukla
Project Guide,
Co-Guide
H.O.D.,
Department of Industrial
Department of Industrial
Engineering
Engineering

Dr. R.S. Pande

Principal

3
 DECLARATION

I/We, hereby declare that the thesis titled “AN APPROACH TO

IMPLEMENT LEAN CONCEPTS IN SUPPLY CHAIN OF STEAL
INDUSTRY” submitted herein, has been carried out in the Department of
I n d u s t r i a l Engineering of S h r i Ramdeobaba College of Engineering &
Management, Nagpur. The work is original and has not been submitted
earlier as a whole or part for the award of any degree / diploma
at this or any other institution / University.

Date: 20/05/2021

Place: Nagpur

1) Jatin Pradhan (46) :

2) Lakshya Sarda (52) :
3) Shubham Tiwari (72) :

4
 ACKNOWLEDGEMENTS

With immense pleasure and great respect, we take this opportunity to express deep sense of
gratitude to our project guide Dr. V. S. Deshpande and Co-guide Prof. Himanshu Shukla,
Department of Industrial Engineering, RCOEM, Nagpur, for their invaluable guidance,
inspiration, constant encouragement and motivation throughout the project work.

We also express our sincere gratitude towards Dr. V. S. Deshpande, Head of

Department of Industrial Engineering, RCOEM, Nagpur, for his invaluable guidance and
motivation to do this project work.

We are indebted to the faculty members of Department of Industrial Engineering,

RCOEM, Nagpur, for giving us valuable time and helping us to get through the difficulties
came across at each stage of project work.

We would like to express our special gratitude and thanks to Dr. Rajesh Pande,
Principal, RCOEM, Nagpur, for his cooperation and encouragement.

Last but not least, we are very much thankful to our parents and friends who directly
or indirectly supported us at every stage to bring this project towards successful completion.

Projectee

Jatin Pradhan (46)

Lakshya Sarda (52)

Shubham Tiwari (72)

5
 ABSTRACT

We carried out our project at Ramsons casting pvt. Ltd. On the topic An Approach to
implement Lean Concepts in Supply chain of Steel Industry. Ramsons casting pvt. ltd
manufactures long steel products i.e., billets, angles, flats etc. At industry we understood
process, operation and supply chain model to procure raw materials, manufacture billets and
deliver it to customer.

Due to COVID-19 we were unable to visit the industry multiple times and we are still in the
process of critical examination of each and every process/activity in the industry. We have
collected the data regarding the production and supply chain of one of the products i.e., billets
which is manufactured in the industry for further examination.

6
 TABLE OF CONTENTS

Title Page No.

Certificate 3

Declaration 4

Acknowledgements 5

Abstract 6

Table of Contents 7

List of Figures 9

List of Tables 10

Chapter 1 INTRODUCTION 11-14

1.1 Lean Manufacturing 11

1.1.1 Definition 11

1.1.2 Objectives 11

1.1.3 5s of lean manufacturing 12

1.1.4 Important tools of lean manufacturing 13

1.1.5 Wastes in lean manufacturing 14

1.2 Supply Chain 14

Chapter 2 COMPANY OVERVIEW 15-16

Chapter 3 LITERATURE REVIEW 17-23

3.1 Detailed study of the research papers 17

Chapter 4 OUTLINE OF WORK 24-31

4.1 Objectives 24

4.2 Problem Identification 24

7
 4.3 Supply Chain of Industry 25

4.3.1 Inward Supply Chain 25

4.3.2 Outward Supply Chain 26

4.4 Data Collected 27-30

4.5 Observations 31

Chapter 5 CONCLUSION 32

References 33

LIST OF FIGURES

Fig. No. Name of Figure Page No.

Fig. 1.1 5’S of lean manufacturing 12

Fig.2.1 Plant Layout 1

Fig. 3.1.1 Capabilities of supply chain resilience 19

8
 Fig. 3.1.2 Current state operation 21
Outcomes of kaizen and talk time after implementation

Fig. 3.1.3 21
Lean manufacturing tool(5S)
Fig. 3.1.4 23
Lean Manufacturing Strategies
Fig 3.1.5 28
Difference between lean and traditional manufacturing
Fig 3.1.6 29
Status of different lean strategies as per literature study
Fig 3.1.7 29

LIST OF TABLES

Table No. Title Page No.

Table 2.1 Company Overview 16
Table 4.1 Billets Data 28

9
Table 4.2 Sponge Iron Data 29
Table 4.3 Scrap Data 30

CHAPTER 1

10
 INTRODUCTION

1.1 Lean Manufacturing

1.1.1. Definition

Lean production is a Japanese approach to management that focuses on cutting out waste,
whilst ensuring quality. This approach can be applied to all aspects of a business from
design, through production to distribution. Lean production aims to cut costs by making the
business more efficient and responsive to market needs. This approach sets out to cut out all
activities that do not add value to the production process, such as holding of stock repairing
faulty product and unnecessary movement of people and product around the plant.

1.1.2 Objectives

The five main objectives of a lean manufacturing system are:

1. To produce the highest possible quality product,
2. at the lowest possible cost of manufacturing,
3. within the shortest possible delivery time,
4. with the aim of just not satisfying the customer but delighting the customer,
5. And ensuring a very good after sales service.

1.1.3 5S’s OF LEAN MANUFACTURING

11
 Fig. 1.1

1)Sort or Seiri: Removing all clutter from the area.

2)Straighten or Seiton: to set in order the equipment, tools and materials.

3)Shine or Seiso: to clean and check everything.

4)Standardize or Seiketsu: to put in place standard ways of working.

5)Sustain or Shitsuke: to instill self-discipline and make the process part of everyday
practice.

1.1.4 IMPORTANT TOOLS OF LEAN MANUFACTURING

Bottleneck Analysis

12
How many times have your projects gotten stuck somewhere between development and
delivery? Bottleneck analysis is a structured way of looking at the processes and workflows
for developing a product or service. Bottleneck analysis is also used to address both present
and future issues, by identifying and addressing operational and process challenges.

Just-in-Time (JIT)

Just-in-time manufacturing is an on-demand system that allows manufacturers to go into

production only after the customer has requested a product. This means that companies do
not have to stock up on unnecessary inventory, lowering the risk of some components or
products being overstocked or damaged while being stored.

Value Stream Mapping

Value stream mapping is a technique developed from Lean manufacturing. Organizations use
it to create a visual guide of all the components necessary to deliver a product or service with
the goal of analyzing and optimizing the entire process.

Value stream mapping is used in a variety of industries, including manufacturing, finance and
healthcare. This principle takes all the people, processes, information and inventory
necessary, and displays them in a flow chart in order to get an overview of the business.

Kaizen

Kaizen is a Japanese term meaning "change for the better" or "continuous improvement." It is
a Japanese business philosophy regarding the processes that continuously improve operations
and involve all employees. Kaizen sees improvement in productivity as a gradual and
methodical process.

The concept of kaizen encompasses a wide range of ideas. It involves making the work
environment more efficient and effective by creating a team atmosphere, improving everyday
procedures and making a job more fulfilling, less tiring, and safer.

1.1.5 WASTES IN LEAN MANUFACTURING

1) Transport- Moving products that are not actually required to perform the processing.

2) Inventory- All components, work in process, and finished product not being processed.
13
3) Motion- People or equipment moving or walking more than is required to perform the
processing.

4) Waiting- Waiting for the next production step, interruptions of production during shift
change.

5) Overproduction- Producing items more than required at given point of time.

6) Processing- Working on a product more than the actual requirement time is termed as over
processing.

7) Defects- Defects in the processed parts are termed as waste. Repairing the defective parts
or replacing the parts due to poor quality.

1.2 Supply Chain

A supply chain is defined as the entire process of making and selling commercial goods,
including every stage from the supply of materials and the manufacture of the goods through
to their distribution and sale. Successfully managing supply chains is essential to any
company hoping to compete.

Inward Supply Chain

Inward Supply Chain include the movement of raw materials, finished goods, and supplies from a
manufacturer or other distribution channel to a fulfilment center, warehouse, or retail store depending
on the business model.

Outward Supply Chain

Outward Supply Chain are related to the movement of end products to the end user, often originating in a
distribution or fulfillment center and then delivered to its final destination.

CHAPTER 2
COMPANY OVERVIEW

14
Ramsons Castings Pvt. Ltd. is a leading manufacturer of mild steel long products i.e. Billets,
Flats, Angles, Round Bars, Squares etc. The plant has 4 induction furnaces of 8MT capacity.
The plant has a daily production capacity 200MT and 2 Rolling Mills.

The annual turnover of the company is around Rupees 200 Crores

NAME OF INDUSTRY RAMSONS CASTINGS PVT. LTD.

PRIMARY BUSINESS MILD STEEL PRODUCTS

MANUFACTURING

NUMBER OF EMPLOYEES 400

PRODUCTS M.S. BILLETS, FLATS, ANGLES ETC.

ANNUAL TURNOVER 200 CRORES

AREAS SERVED MAHARSAHTRA, TELANGANA, M.P,

ANDHRA PRADESH, GOA ETC,

Table 2.1 Company Overview

15
PLANT LAYOUT

16
 Fig 2.1

CHAPTER 3

LITERATURE REVIEW

For this study the following five research papers were reviewed.

These papers are classified into two categories

1) Lean manufacturing
2) Supply Chain

3.1 Detailed study of the research papers

3.1.1 Lean Manufacturing

1. Implementation of Lean Manufacturing Tools in Garment Industry

By- T Saravana Kumar and PR Soumya (2017)

Dept. of Fashion Technology, Sona College of Technology, Salem, Tamil Nadu

For any Company’s economy, the industry cost, production time, total quality management
and waste reduction have great impact. The investments consumed by the company by
eradicating non value added production work and time are very important. Focusing on these
points Lean Manufacturing tools, a Japanese strategy, is implemented in this work.

The bottleneck areas were identified through Value Stream Mapping (VSM) and were
eliminated by implementing line balancing and parallel working section.

OBJECTIVES

● The primary objective of the present study is to investigate the garment manufacturing
processes to identify the bottle-neck operations through lean diagnostic tools, preferably
value stream mapping (VSM).

● Appropriate lean tools are to be implemented until the productivity is improved by

eliminating the waste operations.

17
PROBLEM STATEMENT

In India due to lower skill levels and traditional manufacturing systems, the garment
industries are able to achieve 50% to 60% productivity level. This project is done in an
apparel industry in Salem, Tamil Nadu, India. They are manufacturers of men formal and
casual shirts. The company has been facing problem with unbalanced productivity among
various operations in sewing department.

To understand the real bottle neck area, the operations analysis for cuff production line and
current state of value stream mapping are created and shown in Fig, respectively.

Fig 3.1.2 Current state operation

The timing has been reduced to 50% by KAIZEN. Now all the operations in the cuff line are
under control and a smooth flow is achieved. The improved takt time details are shown in Fig

18
 Fig 3.1.3 Outcomes of kaizen and talk time after implementation

CONCLUSION

 Thus an apparel industry was studied and the bottleneck areas were identified through
Value Stream Mapping (VSM).

 The bottleneck areas were eliminated by implementing line balancing and parallel
working section. The implementation of kaizen resulted in reduction of cycle time by
48.7%. The value added percentage got increased from 0.397% to 0.431% which
accounts for 8.5% improvement in the processes.

2.Implementing of Lean Manufacturing Tool In Dairy Industry.

By- J Vignesh and B.Varun kumar (2015)

Department Mechanical Engineering Velammal College of Engineering and Technology, Madurai,

Tamil Nadu, India

Objective

 Lean manufacturing is a production strategy for organizational effectiveness focusing on

waste reduction and improving productivity through application of various tools.
 This paper attempt to find out the reasons for sparse adoption of the concept in Indian
food processing industries through a cross sectional case study.
 The study highlighted knowledge and understanding levels of Indian industries about the
concept of lean manufacturing, its adaptability, the driving factor that lead to its adoption,
benefits derived and application of lean tools looking into operating environments.

19
STEPS TO ACHIEVE LEAN SYSTEMS

The following steps should be implemented to create the ideal lean manufacturing system:

1. Design a simple manufacturing system.

2. Recognize that there is always room for improvement.

3. Continuously improve the lean manufacturing system design.

The benefits of this goal include:

 Decreased cycle time.

 Fewer inventories.

 Increased productivity.

 Increased capital equipment utilization.

Conclusion

This paper presents the review of lean thinking and its concept through definitions from
literature.

The main focus of lean manufacturing is to eliminate waste, doing things better in half of the
resources as mass production requires, providing higher quality.

Understanding the barriers is important for managers to avoid failures and to sustain lean
leap. The paper contributes by identifying enablers and barriers in implementing the lean
principles and practices.

20
3.A Framework for Effective Implementation of Lean Production in Small and
Medium-sized Enterprises.
By-Fatima Ezzahra Touriki andEl Fezazi (2016)

Industrial Engineering Research Team, Higher School of Technology, Safi, Cadi Ayyad
University (Morocco)

Objective

The present paper aims at developing an effective framework including all the components
required for implementing lean production properly in Small and Medium-sized Enterprises.

Research limitations/implications: the proposed framework presents a number of

limitations and still evokes extension for further researches: Although it was derived from
practical experiences of SMEs, the proposed framework is not supported by practical
implementation.

Practical implications: Implementing rigorously the proposed framework will help small
companies’ managers to improve considerably their organization’s performance and benefits
from lean strategies' outcomes. Researchers and practitioners in small businesses now possess
an integral framework for successfully implementing lean strategies.

Conclusion

 This paper started with a claim that large companies worldwide were always the most
privileged to adopt many advanced enhancement approaches including lean
implementation and then enjoy advantages resulted by implementation of these
approaches in their organizations compared to SMEs.

 The outcome was a more meaningful framework that groups all the requirements and
guidelines for lean implementation (implementation process, tools and success factors).

 It highlights the successful experiences of small companies in implementing lean

programs and then it proves that lean can give relevant results even for SMEs.

21
3.1.2 Supply Chain

1.Supply Chain Integration and Supply Chain Performance: The Mediating Role of
Supply Chain Resilience
By-Arsalan Zahid Piprani and Suhana Mohezar(2020)

Department of Operations and Management Information Systems, University of Malaya,

Kuala Lumpur, Malaysia

Objective
The objective of this study is to examine the influence of supply chain integration (SCI)
on supply chain resilience (SCRES) on supply chain performance (SCP) dimensions of
large – scale manufacturing firms in Pakistan.

It also examines the indirect effects of all the SCI dimensions on all the SCP dimensions
through the SCRES. A quantitative approach using questionnaire survey was employed to
examine the hypotheses and theoretical framework.

Methodology used
Data were collected from 182 manufacturing firms in Pakistan and the SMART PLS
version 3.2.7 was used for data analysis. The results showed that the SCI contributed
significantly to the SCRES while the SCRES impacted on the SCP substantially.

 The findings of this study also highlight the need for manufacturing firms to not only
concentrate on investing in integration practices, but also to take note on how they
could improve their resiliency.
 Resiliency allows the manufacturing firms to handle disruptions effectively, and to
continue to provide the expected services and products to customers.
 Having said this, the resiliency capabilities can be promoted through intense
integration between different units in a firm and with supply chain partners.

Conclusion

The study employed the SEM (structural equation modeling) by using partial least squared
method for the assessment of the inter relationship among the different latent variables. This
helped to test the theoretical model which has been widely recognized and used in supply
chain risk management and resilience studies.

22
Management capabilities in supply chain resilience

By-Christopher and Peck (2004)

Department of Industrial Engineering, Federal University of São Carlos, São Carlos, Brazil

Objective

This paper aimed to understand the capabilities that enables supply chain resilience. And the
major capabilities:

 Flexibility (supplier; product; process; transportation),

 Collaboration (information sharing; joined decision making; working together);
 Structure of chain (physical; information)
 and Agility (visibility; velocity) were identified.

Conclusion

Following are the capabilities of supply chain resilience

Fig 3.1.1 -Capabilities of supply chain resilience

23
 CHAPTER 4

OUTLINE OF WORK

4.1 OBJECTIVE

1) To implement lean manufacturing concepts in supply chain of Secondary Steel

manufacturing industry.
2) To ensure quick and smooth flow of materials inside the plant.
3) To ensure minimum number of trucks inside the plant at a time.

4.2 PROBLEM IDENTIFICATION

After examining and analyzing the production and supply chain process of M.S Billets from
raw materials to finished products, the data for various processes was collected and wastes
(of lean concepts) were identified i.e.

 Waiting Waste – In case of raw materials, after placing the

order for the raw materials such as sponge iron it is not readily
available in some cases and hence there is a delay in receiving
the raw material to the factory. In case of billets, sometimes
trucks have to wait for different sizes of billets for few hours
as that size is not yet produced.
 Processing waste – When Scrap received is of commercial
quality, it has to be unloaded separately to be processed in a
shredding machine which requires the Scrap to be fed to the
machine via overhead crane so this is an extra process only
done for commercial quality scrap.

24
4.3 SUPPLY CHAIN OF INDUSTRY

4.3.1 INWARD SUPPLY CHAIN

The main raw materials used to make M.S. Billets are Sponge iron, Steel Scrap and Silico
Manganese among other raw materials and this constitutes the inward supply chain of the
industry.

Sponge Iron - It is usually procured from Rourkela in Orissa and the usual order quantity is in
multiples of 25-30 MT once the order is placed the trucks are loaded usually on the next day
depending on the availability of trucks and availability of Sponge Iron with the manufacturer.
It takes around 2 days for the Sponge Iron to arrive in Nagpur from Rourkela as the distance
is around 735 Kms. Once the truck arrives in the factory the quality checks of the material is
done in the lab and if found suitable the material is unloaded in the storage yard. It takes 1-
1:30 hours to unload if there are no issues with the material.

Steel Scrap – It is procured from areas around Nagpur and there is no minimum order
quantity as this is a very unorganized sector. Order is not placed to procure scrap the
suppliers send scrap based on the availability of scrap with them so usually there is a constant
supply of scrap but sometimes there is excess scrap and sometimes very less. There are
around 8 different qualities of scarp depending on the thickness and many trucks usually have

25
3-4 different qualities because of this the time to unload the trucks is around 3 hours and
more when there is a bad quality material or many different qualities.

Silico Manganese – It is required in small quantities and is procured from factories around
Nagpur. The order quantity is 25-30 MT. Quality check of the material is done before
unloading the truck in the storage area.

All these raw materials along with others are stored in the storage yards and after the Steel
Melting and Casting process (in the CCM i.e. continuous casting machine) the Billets are
casted in different sizes and then stored in the finished goods storage area.

4.3.2 OUTWARD SUPPLY CHAIN

Once the order is received from the customer the details of the order are fed in the EPR
software and the order is processed, the availability of the size is checked and the appropriate
material is selected and then the transporters are called to arrange for trucks to transport the
material. Either the customer arranges for the transportation or the factory arranges the
transportation, based on the availability of truck and M.S. Billets the material is sent to
Mumbai. The material is dispatched usually the next day or within two days.

Although the Billets are supplied to many states and cities but we studied delivery of
materials to Mumbai which takes around 2 days to reach to Mumbai and the loading time for
the truck is around 2-3 hours in the factory.

After the delivery is received by the customer a conformation is sent to the Dispatch Head in
the factory.

26
4.4 DATA COLLECTED

Billets Data
Sr. Date of order Date of Finished Billets Time to reach
No. received dispatch Loading time (Hrs) Mumbai(Hrs)
1 4/30/2021 5/1/2021 1 48
2 4/30/2021 5/1/2021 1 47
3 5/1/2021 5/3/2021 1.5 48
4 5/3/2021 5/4/2021 1.2 48
5 5/3/2021 5/4/2021 1.5 44
6 5/4/2021 5/5/2021 1.5 47
7 5/6/2021 5/7/2021 1 48
8 5/6/2021 5/7/2021 1 48
9 5/6/2021 5/8/2021 1.1 55
10 5/7/2021 5/8/2021 1 54
11 5/8/2021 5/9/2021 1.2 48
12 5/9/2021 5/10/2021 1.3 46
13 5/10/2021 5/11/2021 1 47
14 5/11/2021 5/12/2021 1.5 48
15 5/14/2021 5/15/2021 1 48
16 5/15/2021 5/16/2021 1 47
17 5/16/2021 5/17/2021 1.5 47
18 5/16/2021 5/18/2021 1.1 49
    Average= 1.188888889 48.16666667

Table 4.1 Data of billets

27
 SPONGE IRON
Sr unloading
date of order placed date of truck arrived time taken by truck to arrive
no. time

1 30/04/2021 2/5/2021 45hrs 1hr 10min

2 30/04/2021 3/5/2021 50hrs 1hr 5min
3 30/04/2021 3/5/2021 56hrs 1hr 10min
4 1/5/2021 3/5/2021 39hrs 1hr
5 1/5/2021 4/5/2021 49hrs 1hr 15min
6 3/5/2021 6/5/2021 51hrs 1hr 20min
7 4/5/2021 6/5/2021 40hrs 4hr 30 min
8 6/5/2021 8/5/2021 32hrs 1hr 10min
9 7/5/2021 10/5/2021 57hrs 1hr 20min
10 7/5/2021 10/5/2021 52hrs 1hr 20min
11 8/5/2021 10/5/2021 50hrs 1hr 10min
12 11/5/2021 14/5/21 59hrs 1hr 05min
13 13/5/21 15/5/21 40hrs 1hr 05min
14 13/5/21 15/5/21 37hrs 1hr 05min
15 13/5/21 15/5/21 36hrs 5hr 10min
16 14/5/21 16/5/21 41hrs 1hr
17 14/5/21 16/5/21 42hrs 1hr
18 15/5/21 17/5/21 40hrs 1hr 25min
19 17/5/21 19/5/21 45hrs 1hr 30min
20 17/5/21 19/5/21 43hrs 4hr 40min

Average = 42.6 hrs =

1.725hrs

Table 4.2 Data of Sponge Iron

Scrap Data
28
Sr. Date of order Scrap Time unload at Time to reach
No. given Received factory(Hrs) Factory(Hrs)
1 Not Available 5/1/2021 3 NA
2 Not Available 5/1/2021 3.5 NA
3 Not Available 5/2/2021 2.5 NA
4 Not Available 5/3/2021 4.5 NA
5 Not Available 5/4/2021 4 NA
6 Not Available 5/5/2021 2.5 NA
7 Not Available 5/6/2021 3 NA
8 Not Available 5/7/2021 3 NA
9 Not Available 5/8/2021 3 NA
10 Not Available 5/8/2021 3.5 NA
11 Not Available 5/9/2021 3 NA
12 Not Available 5/10/2021 3 NA
13 Not Available 5/11/2021 2.5 NA
14 Not Available 5/11/2021 3.5 NA
15 Not Available 5/15/2021 3 NA
16 Not Available 5/16/2021 3 NA
17 Not Available 5/17/2021 5 NA
18 Not Available 5/18/2021 3 NA
19 Not Available 5/19/2021 3.5 NA
20 Not Available 5/20/2021 4 NA

Average = 3.3 hrs

Table 4.3 Scrap Data

29
Data

(If raw material is already present in factory)

Scrap Unloading (25mt) – 3.3hrs

Sponge Iron Unload (30mt) – 1.7hrs

Furnace (1 heat) -2.5hrs

CCM to billet (8mt) - 35 min

Stacking (8mt) - 45mins

Finished goods loading in truck- 1.18hrs

Total= 10.0hrs approx

Extra time for raw material and finished dispatch

Manufacturing process and loading – 10.0hrs approx

Truck from Nagpur to Mumbai= 2 days (48hrs)

Total= 81.33hrs

Documentation at the gate for scrap – 15 min

Documentation and quality checking in lab time – 1hr 15 min

30
4.5 OBSERVATIONS

1. Unloading is done by overhead cranes, mobile cranes and is time taking for more number
of materials per truck.

2. System entry and documentation at the gate office is the major contributing factor to truck
turnaround time.

3. The deviation from the mean time taken at gate office is very high.

31
 CHAPTER 5
CONCLUSION

The various processes and working of the industry were identified and studied i.e from the
various raw materials required for manufacturing of Billets, the various steps involved in the
manufacturing of Billets, inward supply chain, outward supply chain. The data of time
required for the above processes was calculated.
Due to the COVID-19 Pandemic multiple industry visits were not possible.
The following data was collected:
1. Average Scrap unloading time is 3.3hrs .
2. Average time for sponge to arrive at plant is 46.2 hrs from the time of dispatch.
3. Average Sponge iron unloading time is 1.725 hrs.
4. Average time for documentation and quality analysis is 1.25 hrs.
5. Time taken for manufacturing of Billets (Raw materials already procured) is 8.82 hrs
approximately.
6. Time taken for loading of finished Billets is 1.18 hrs.

In the upcoming Semester, with the data collected we will find value added and non-value
added activities in the supply chain using lean manufacturing concept and try to remove the
non-value added activities from the process using lean manufacturing tools so that we could
get minimum lead time.

32
References

[1] Bakshi, N. and Kleindorfer, P. (2009), “Co-opetition and Investment for Supply-Chain
Resilience”, Production and Operations Management. Vol, 18, nº 6, pp. 583-603. Bhamra, R.;
Dani, S. and Burnard, K. (2011), “Resilience: the concept, a literature review and future
directions”, International Journal of Production Research. Vol, 49, nº 18, pp. 5375-5393.

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