FUNCTIONAL SPECIALIZATION PROJECT REPORT

ON
OPERATIONS IN PPC AND LOGISTICS AT JSW

Submitted in partial fulfilment of the requirements for

Master Of Management Studies (MMS)

Academic Year: 2022-2024

Submitted by

MOHAMMED SHARIQ MUNSHI

ROLL NO: A202223

SEMESTER IV
BATCH: 2022-2024

Under the guidance of DR. NAVEEN SRIVASTAVA

H.K. INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

JOGESHWARI (W), MUMBAI: - 400-102
 CERTIFICATE

This is to certify that the dissertation in partial fulfilment for the award of Master of
Management Studies under University of Mumbai from H.K. Institute of Management
Studies and Research is a result of the Bonafide research work carried out by Mr.
Mohammed Shariq Munshi under my supervision and guidance, no part of this report has
been submitted for award of any other degree, diploma, fellowship or other similar titles or
prizes. The work has also not been published in any Journals/Magazines.

Date:

Place: Mumbai

Project Guide Director

Dr. Naveen Srivastava

 DECLARATION
I hereby declare that the project entitled “OPERATIONS IN PPC AND LOGISTICS AT

JSW” is my original work and I have not copied the content from any source. If any part of the

content is found copied then I will be solely responsible for the action taken on me in future by

the institute or by the university.

Student Name: Mohammed Shariq Munshi

Student Signature:

Date: 16th April, 2024

Batch: 2022-2024

Specialization: Operations
 ACKNOWLEDGEMENTS

It is my profound privilege to express my sincere thanks to Dr. Naveen Srivastava, for giving

me such an opportunity to work on the project and continuously, giving me full support and

guidance in completing of this project.

I am highly indebted to Director & to the teaching staff at H.K. Institute of Management

Studies and Research for their guidance and constant supervision as well as for providing

necessary help and information regarding the project and also helping and supervising in the

completion of the project.

Lastly, I want to thank my friends and family for their continuous encouragement and belief in

my abilities. Their unwavering support has been a constant source of motivation throughout

this internship journey.

Signature

MOHAMMED SHARIQ MUNSHI

Executive Summary

My project is divided into two parts. First part includes a research report based on the mix
grade NCO being generated with the help of the PPC department. The other part includes
the study of HR coils and bulk materials (raw materials) being dispatched through railways
for the purpose of gaining knowledge and understanding the management aspect behind it
because there was no research that could be done in the Logistics department. The former
part of the project began by understanding the steel production process that has been adopted
by JSW Steel Ltd., Dolvi Works. To understand the process, it was mandatory to get hold of
the department that is actually involved in the above steel production process. This is why
PPC (Production Planning and Control) was the best department to have been explored. With
interactions with the employees of the PPC department, some research-based problems came
across that were worth being analyzed in order to get a solution to these problems and try to
suggest corrective measures with respect to the solutions that have been found out. After that
I got some insights on the varieties of production happening at JSW Dolvi works. I
understood the different varieties of HR coils being produced with respect to the usage of
that particular coil. After having gotten all this information, I enquired on the problems faced
on daily basis in the planning and scheduling of HR coils which are produced as per market
requirements. To which they immediately gave me the problem they were facing which they
called as NCO (Non Confirming Orders), the details of which will be seen in the further part
of this report. These are the orders that are produced out of the actual requirement of the
clients due to various reasons. Though all efforts are in place to control NCO generation,
there need to be some guidelines which can be taken as inputs during the sequence planning
and rolling and thus a study on Mix grade NCO which is the highest cause of NCO among
others was asked to be done so that further drill down could be done and insights could be
explored. Thus I went to initially analyze the various reasons of NCO being generated and
for which NCO reason was the highest quantity being generated. After we came to know
which was the NCO reason that was generating highest quantity of NCO, which we analyzed
as mix grade NCO, the reason for the mixing of various chemical compositions was
analyzed, for which quantity was the highest mix grade NCO being generated and so on and
so forth. Thus I thoroughly analyzed the production data that I was provided with from SAP
along with the PPMS (MES used in JSW Steel Ltd.,
Dolvi Works) data for 3 months of the previous financial year (January’18 to March’18) and
suggested some corrective measures that PPC department could take which would benefit
them and help them undertake optimum utilization of resources with minimum cost. This
was all about the research part of the report. Moving on to the next part of the project, after
a lot of enquiry in the Logistics department, I thought it would be perfect to get involved in
the dispatches of HR coils taking place through railways. I went further to understand the
system they were using, the time that was required for loading of HR coils and bulk
materials, the different types of rakes and wagons that are involved in dispatching, the
weights that each of the wagon can take, the number of wagons in each rake, the cost of each
wagon being decided, the cost of reaching the product or materials from source to destination
and so on. I hence chose outbound rail logistics as the second part of my project.
 INDEX

Chapter No. CONTENT Page No.

Project – 1 PPC

1.1 Introduction 1

1.2 Research Methodology 2

1.2.1 Research Problem 3

1.2.2 Research objective 3

1.2.3 Sources of data 5

1.2.4 Research scope 6

1.2.5 Limitation of study 15

2 Industry analysis 16

3 Company’s Profile 30

4 SWOT Analysis 34

5 Competitor’s profile 36

6 My work as an intern 49

7 Data analysis and 51

interpretation

8 Findings 59

9 Conclusion 64

10 Recommendation 66
 11 References

12 Annexure

Project – 2 Logistics

1 Introduction 68

2 Aims and objectives 74

3 Requirement gathering 79

4 Existing system 82

5 Problem statement 84

6 Scope of the project 84

7 Methodology 85

8 Conclusion 97

9 References
Part – 1 Production
Planning and
Control
CHAPTER 1.1: Introduction

JSW Steel Ltd.

JSW Steel Ltd. (BSE: 500228, NSE: JSWSTEEL) The flagship company of over $11 billion
JSW Group, JSW Steel is one of India's leading integrated steel manufacturers with a
capacity of 18 MTPA. It is one of the fastest growing companies in India with a footprint in
over 140 countries. JSW Steel is an Indian steel company owned by the JSW Group based
in Mumbai, Maharashtra, India. JSW Steel, after merger of ISPAT steel, has become India's
second largest private sector steel company. The current installed capacity is 18 MTPA. An
$11 billion conglomerate, with presence across India, USA, South America & Africa, and
the JSW Group is a part of the O.P. Jindal Group with strong footprints across core economic
sectors, namely, Steel, Energy, Infrastructure, Cement, Ventures and Sports. JSW's history
can be traced back to 1982, when the Jindal Group acquired Piramal Steel Limited, which
operated a mini steel mill at Tarapur in Maharashtra and renamed it as Jindal Iron and Steel
Company (JISCO).

The Group set up its first steel plant in 1982 at Vasind near Mumbai. Soon after, it acquired
Piramal Steel Ltd., which operated a mini steel mill at Tarapur in Maharashtra. The Jindals,
who had wide experience in the steel industry, renamed it as Jindal Iron and Steel Co. Ltd.
(JISCO). Jindal Vijayanagar Steel Ltd. (JVSL) was set up in 1994, with its plant located at
Toranagallu in the Bellary-Hospet area of Karnataka and External Areas of Andra Pradesh,
the heart of the high-grade iron ore belt and spread over 3,700 acres (15 km2) of land. It is
just 340 kilometres (210 mi) from Bangalore, and is well connected with both the Goa and
Chennai Port. In 2005, JISCO and JVSL merged to form JSW Steel Ltd.

JSW Steel has also formed a joint venture for steel plant in Georgia. The Company has also
tied up with JFE Steel Corp, Japan for manufacturing the high grade automotive steel. The
Company has also acquired mining assets in Republic of Chile, United States and
Mozambique.

1
The Jindal Group is a US $ 15 billion conglomerate, which over the last three decades has
emerged as one of India’s most dynamic business groups.

JSW Group is into five verticals, namely, Steel, Energy, Infrastructure, Cement and
Ventures.

CHAPTER 1.2: Research Methodology

There are various options available to do research, these are called as methods. They are
books, journals, magazines, government reports, past research data, websites, asking random
people, etc.

Every organisation has the same number of methods available but because of time and cost
constraints they have to select the best out of all available. The option that the researcher
chooses which he or she anticipates will solve the research problem becomes the
methodology. One research can have multiple methodological approaches to solve the
problem.

There are ten research methods in total which are as follows:

Basic research – This research includes analysis done on day – to – day basis.

Applied research - This is an alternative to when a particular problem cannot be solved

using the basic research.

Descriptive - This research describes the phenomena or situation as it is.

Analytical - Is made use of when the research problem is complex in nature and can
have an impact on the entire functioning of the business.

Quantitative research - Done when the variables involved can be quantified by numbers
and the client demands analysis of more number of respondents.

2
Qualitative research - Done when the client wants to study human emotions like
happiness, sadness, anger, guilt, jealousy, hope, etc.

Conceptual research - Done when the outcome of the research involves radical
knowledge being given to the environment.

Empirical research - Done by an individual and his completely based on his or her
observations and can be manipulated very easily.

Diagnostic research - Done by using case study as a tool for analysis.

Historical - Done by accessing documents published in the past, of an organisation,

instead of solving it through respondents.

The research methodology selected for this project is basic research methodology since it
was done within the organisation. The analysis that had been carried out in this was simply
finding out the maximum quantity of mix grade NCO being produced for HR coils. The
analysis was performed using Microsoft Excel tool extensively. The period selected for
analysis was previous financial year (April’17 – March’18). All the production data was
obtained based on which the analysis was carried out.

CHAPTER 1.2.1 Research Problem

Trying to analyse the mix grade NCO being produced by finding out the top ten grades from
which mix grade NCO is being produced and the top five grades of each of these ten grades
which are formed from their respective grades in order to undertake optimum utilisation of
resources by minimising the cost.

CHAPTER 1.2.2 Research Objective

3
The research objective is to minimise the mix grade NCO being generated during production
of Hot Rolled (HR) coils and by analysing past production data (Jan’18 – Mar’18) using
SAP and PPMS(MES used in JSW Steel Ltd., Dolvi Works) and identifying the value-added
and non-value added grades of HR coils that are being mixed with other grades of HR coils
during the sequence planning and rolling.

Study evolution of JSW:

2002 - 1.6 MTPA total capacity.

2004 - Acquired Southern Iron and Steel Company (SISCOL)

2005 - Total capacity increased to 2.5 MTPA, introduced colour coating line and acquired
EURO IKON.

2006 – Total capacity increased to 3.8 MTPA. 2007

- Total capacity increased to 4.8 MTPA. 2008 - Iron

ore mines acquired in Chile.

2009 - Total capacity increased to 7.8 MTPA.

2010 – Coal mining concessions took place in US, HSM II of capacity 3.5 MTPA was
developed, JSW - JFE strategic partnership happened.

2010 to 2011 – Acquisition of 49.3 % stake in Ispat. 2012 –

Capacity of HSM II increased to 5 MTPA.

2013 – Total capacity increased to 14.5 MTPA.

2014 – New CRM2 (Phase 1), Pellet plant of capacity 4 MTPA and Coke Oven plant of
capacity 1 MTPA was developed, acquired 50 % stake in Vallabh Tinplate and Welspun
Maxsteel.

2015 – New CRM2 (Phase 2) and Electrical steel mill of capacity 0.2 MTPA was
developed.

2016 – Total capacity increased to 18 MTPA.

4
2017 – Acquired 74 % stake in Praxair’s the industrial gases joint venture, won 5 iron ore
mines in Karnataka (111 million tonnes estimated resources).

Identifying gaps:

After having some conversation with the employees of the PPC department, I was able to
figure out the gaps for the NCO problem that they were constantly worried about since it
was the reason for creation of unplanned HR coils. This made me drill down deeper into
each of the aspects related to NCO generation which finally brought in front of me the gaps
(mix grade NCO) that gave rise to a problem on which research could be conducted and
solutions could be found out alongside giving recommendations which could serve as
corrective measures for optimum utilisation of resources and minimising the cost.

To analyse:

The NCO reason which was generating highest quantity of NCO which was mix grade
NCO, the top ten grades generating mix grade NCO, the top five grades of each of these top
ten grades from which a mix grade was being generated. This would be clearly seen in the
further part of this report.

To recommend:

Whatever analysis has been done to reach to a solution can be used to identify a
corrective measure that could try and minimise the huge amount of mix grade NCO that
is being generated currently leading to increased costs.

CHAPTER 1.2.3: Sources of data

Sources of data are of two types, viz., primary and secondary sources. Primary data sources
are the ones that are filtered and freshly created. Primary sources usually include survey
questionnaires, interviews, observations and experimentation or

5
projective technique. Secondary data sources on the other hand are the ones that have already
been published. Secondary data sources are further split into internal sources and external
sources. Internal sources are within the organisation and external sources are from outside
the organisation. Since data was provided to me internally by the employees of JSW Steel
Ltd., Dolvi Works and it was already published or rather posted in SAP, it was a secondary
data source.

CHAPTER 1.2.4: Research Scope

Steel Production Process:

6
The process is divided into four parts, namely, iron making, steel making, casting and rolling.
Firstly raw materials are procured from each of the sources through a jetty system. These
raw materials include coal, natural gas, iron ore, etc. Each of these is an input to the blast
furnace and sponge iron plant. The sponge iron plant gives an output of iron which is in solid
form and is known as direct reduced iron whereas the output of the blast furnace is liquid
iron. Till here it was the iron making part of the process. Now begins the steel making part
of the process. Both of the liquid iron and direct reduced iron are now fed to the SMS (steel
melting shop). The steel making part of the process includes two sets of conarc furnaces
each consisting of two shells each. After the conarc furnace we have ladle furnaces. The
liquid iron and the solid iron from the blast furnace and sponge iron plant respectively are
now fed to the conarc furnace wherein each shell is subjected to two processes, namely,
arcing and charging. The arcing process involves deoxidation whereas the charging process
involves breaking the solid iron into minute parts such that it can be converted into liquid
form. The charging process is undertaken with the help of a gantry that is placed between
each of the shells. The arcing and charging processes are happening simultaneously wherein
when one of the two shells is undergoing arcing the other shell is undergoing charging and
vice-versa. This way a lot of time is being saved and the production rate is increased. Ideally,
any shell of the conarc furnace should contain 50 % direct reduced iron and 50 % liquid
iron. But there is no harm in going either 100 % solid iron (direct reduced iron) or even 100
% liquid iron. After this the deoxidized iron which is in liquid form and is called as heat, is
now fed to the ladle furnaces wherein the heat is desulpherised and the desired chemical
composition is achieved as demanded by the client. This finishes the steel making part of the
process after which we have the casting part. The casting process is continuous which
reduces time consumed and increases production rate immensely which is explained with
the help of a diagram ahead in this report. The output of the casting process is slab of
thickness ranging between 55 mm and 65 mm. This slab is now sent to the rolling mill for
achieving the thickness as desired by the client which ranges between 0.1 mm to 25 mm.
This was the casting process for the HR coils and this process is also known as CSP
(Compact Strip Process). Similar type of process is being carried out at the billet caster. After
the thickness is achieved, the slabs are rolled and packed and stored in the coil yard from
where the final dispatch is done. On the other hand, Billets and

7
TMT bars have a bar mill wherein they are stored. The billets can either be sold or can be
reused for producing TMT bars. The production of TMT bars is done in two ways, either by
directly directing the currently produced billets into the production of TMT or by reheating
the already stored billets with the help of a reheating furnace which gives the billet a desired
amount of heat to be able to be casted into TMT bars. This is the entire steel production
process that is being followed at JSW Steel Ltd., Dolvi Works.

Introduction to PPC:

For efficient, effective and economical operation in a manufacturing unit of an organization,

it is essential to integrate the production planning and control system. Production planning
and subsequent production control follow adaption of product design and finalization of a
production process.

Production planning and control address a fundamental problem of low productivity,

inventory management and resource utilization.

Production planning is required for scheduling, dispatch, inspection, quality management,

inventory management, supply management and equipment management. Production
control ensures that production team can achieve required production target, optimum
utilization of resources, quality management and cost savings.

Planning and control is an essential ingredient for success of an operation unit. The benefits
of production planning and control are as follows:

It ensures that optimum utilization of production capacity is achieved, by proper scheduling

of the machine items which reduces the idle time as well as over use.

It ensures that inventory levels are maintained at optimum levels at all time, i.e. there is no
over-stocking or under-stocking.

It also ensures that production time is kept at optimum level and thereby increasing the
turnover time.

8
Since it overlooks all aspects of production, quality of final product is always
maintained.

Production Planning:

Production planning is one part of production planning and control dealing with basic concepts
of what to produce, when to produce, how much to produce, etc. It involves taking a long-term
view at overall production planning. Therefore, objectives of production planning are as
follows:

To ensure right quantity and quality of raw material, equipment, etc. are available during
times of production.

To ensure capacity utilization is in tune with forecast demand at all the time.

A well thought production planning ensures that overall production process is

streamlined providing following benefits:

Organization can deliver a product in a timely and regular manner. Suppliers are

informed will in advance for the requirement of raw materials. It reduces

investment in inventory.

It reduces overall production cost by driving in efficiency.

Production planning takes care of two basic strategies’ product planning and process
planning. Production planning is done at three different time dependent levels i.e. long-
range planning dealing with facility planning, capital investment, location planning, etc.;
medium-range planning deals with demand forecast and capacity planning and lastly
short term planning dealing with day to day operations.

Production Control:

Production control looks to utilize different type of control techniques to achieve optimum
performance out of the production system as to achieve overall production planning targets.
Therefore, objectives of production control are as follows:

9
Regulate inventory management Organize

the production schedules

Optimum utilization of resources and production process The

advantages of robust production control are as follows:

Ensure a smooth flow of all production processes

Ensure production cost savings thereby improving the bottom line Control

wastage of resources

It maintains standard of quality through the production life cycle.

Production control cannot be same across all the organization. Production control is dependent
upon the following factors:

Nature of production (job oriented, service oriented, etc.) Nature

of operation

Size of operation

Production planning and control are essential for customer delight and overall success of an
organization.

Objectives of PPC:

Fulfil customer requirement

Optimize plant performance and resources

Coordinate and control plant operation Monitor

and control Inventory

Key functions of PPC:

10
Scheduling:

• Coordinate with marketing for customer Orders and Priorities

• Preparation & Implementation of Production Schedule

• Coordinate with Procurement to ensure material availability

• Allocate the material against customers’ orders and maintain customer order
status

• Coordination for quality clearance & dispatch of coils in time for delivery
compliance as well as inventory control

Monitor and control:

• Monitor the actual production against the Time Plan of Level 3 / shift wise /
daily / monthly basis

• Coordinate with EAF/ LF, Caster, Mill, Blast Furnace, Sinter Plant, Oxygen
Plant – Operations and Maintenance to ensure execution of plan

• Record and analyze the performance and highlight deviations

• Report to top management & Shift in Charges on Plant Performance on

continuous basis

• Trend analysis of different parameters for discussion & improvement

MIS report and analysis:

• Analyze the Plant performance including production, delays and major

operating parameters w.r.t. plan.

• Generate MIS for top management, process owners, shift in charges and other
departments on monthly, weekly, daily and shift basis.

11
Inventory control:

• Control WIP and Finished Products inventory.

• Coordinate with Marketing and Logistics to ensure quick movement of stocks.

• Analyze the age of stocks and coordinate with Marketing for disposal of slow
moving stocks.

SOP:

Marketing team confirms order and releases Sales Order and Delivery
Order

Production planning

Operation (SMS, Caster, Mill)

Finishing line (CTL & slit) as per demand of client

Quality management

Dispatch planning

12
PPC Network

13
In production, the main problem being faced was a non-confirming order or it can be called
as an unplanned order which was being generated due to the normal process of change in
sequence of steel grades to be produced.

Non Confirming Orders are the ones which are not directly allocated to customers.

The non-confirming orders include Step down coils, mix grade coils, taper coils, short coils,
defects, etc.

Commercial and arising signify the intensity of defects being obtained in the production of
a particular coil. If defects in a coil are such that they may be accepted by some or the other
client, it is tagged as commercial whereas if the defects in a coil are such that it won’t be
accepted by any client, it is given the tag of arising.

Step down coils are a result of beginning the casting process after some sort of a breakdown
wherein there are two rollers within the rolling mill that are used to achieve the desire
thickness, When very high temperature steel slabs come into contact with the cold rollers,
there are chances of the slab being damaged if directly rolled into a very low thickness, that
is why they start rolling a higher thickness and make their way downwards towards the
desired thickness. This is how step down coils are being generated.

Taper coils on the other hand are due to change in width of the coils in a sequence. Suppose
a 1200 mm width coil is being casted and after this 1220 mm width coil has to be casted, it
cannot be achieved directly and will result in the formation of flat funnel like shaped slabs.
These slabs are then rolled into what is known as taper coils.

NCO mix grade:

NCO mix grade analysis is based on analysing the quantity of transition happening between
value added and non-value added grades. Below is the list of value added and non-value
added grades.

14
 NORMAL VAG

CHAPTER 1.2.5: Limitation of study

Limitation of study with respect to time is previous financial year (April’17 to

March’18).

Also the study was confined to only one type of steel product (HR coils – flat product) rather
than including both the long products and flat products.

Location of study was limited to JSW Steel Ltd., Dolvi Works.

15
CHAPTER 2: Industry Analysis

JSW Steel:

JSW Steel offers the widest product portfolio in India and leverages. It's capability to
customize offerings to match customer needs. They constantly prove effortful in the use of
innovative technology which gives them an assurance that they are ahead of the competition.
It is India’s largest steel exporter and ships to over 100 countries across 5 continents

Constructions done using JSW Steel include Mumbai’s Airports T2, Yamuna Expressway,
Chennai, Kolkata, Hyderabad Metro, etc. MVS Sheshagiri Rao is Joint Managing Director
& Group Chief Financial Officer of JSW Steel.

JSW Energy:

True to JSW values, JSW Energy believes in the efficient utilization of all available
resources. Their goal is to become a leading full-service integrated power company in the
Indian power sector with a presence across the value chain. The Barmer plant comprises of
eight 135MW units to produce 1,080MW of power. The Barmer plant uses lignite as a fuel
source. Lignite is a low grade coal that RWPL, currently, sources from the captive mine at
Kapurdi in Barmer. Barmer Lignite Mining Company Limited, a joint venture between
RWPL and Rajasthan State Mines & Minerals Ltd. has two captive mines – Kapurdi and
Jalipa. Prashant Jain is the Joint Managing Director & Chief Executive Officer of JSW
Energy.

JSW Infrastructure:

16
As India’s leading Private Sector Infrastructure Company for the last 14 years, JSW
Infrastructure is committed to developing Maritime Gateway. As a commitment to the
nation, JSW Infrastructure is dedicated to developing world-class seaports and terminals,
shipyards, townships, port based special economic zone (SEZ), industrial clusters and last
mile connectivity projects like road, rail, pipeline, costal shipping and inland water transport.
Captain BVJK Sharma is the Joint Managing Director and Chief Executive Officer of JSW
Infrastructure.

JSW Cement:

JSW Cement envisions a self-reliant India. It aims to become a global leader and to make
India an infrastructural force to reckon with by manufacturing the building blocks of the
Indian development story with its world-class cement. Since its inception in 2009, JSW
cement entered the market with a vision to ensure a sustainable future for the country by
producing eco-friendly cement. At Vijayanagar in Karnataka, Nandyal in Andhra Pradesh
and Dolvi in Maharashtra, JSW Cement utilizes slag cement from the JSW Steel plants to
produce green cement. Parth Jindal is the Managing Director of JSW Cement. Nilesh
Narwekar is the Chief Executive Officer of JSW Cement. Narinder Singh is the Chief
Financial Officer of JSW Cement.

JSW Ventures:

It partners with passionate entrepreneurs driven by innovation and need to build capital
efficient businesses. JSW Ventures is an early-stage tech focused venture capital fund based
in Mumbai. JSW extends its partnership not just through capital but with a commitment to
build exceptional companies. We believe that technology

17
drives innovation and innovation creates the future. JSW is enthusiastic about disruptive
trends led by technology that are shaping the way businesses and customers consume
products and services and interact with each other. The select pool of high quality
entrepreneurial talent coupled with the capacity to transform existing systems and processes
is driving the growth in this space. Innovative ideas need the right backing. At JSW Ventures,
we believe in supporting entrepreneurs across diverse sectors and help fuel their
development. Companies in SaaS, Fintech, Consumer Internet, Mobile, E-commerce, Health
Tech, Analytics, Education, IoT etc. that are creating the next-generation products and
solutions draw our interest. The JSW Ventures team includes Gaurav Sachdeva who is the
managing partner, Deependra Singh and Kunal Jain.

JSW has been into the production of Steel Coils, Billets and TMT Bars.

Hot Rolled Coils:

JSW Dolvi works produce hot rolled coils (Normal grades-high volume, low strength &
Value added grades-low volume, high strength).

HR coils width varies from (900mm to 1550mm) & thickness range from (1.00 mm to
20mm).

JSW Dolvi works uses the compact strip production (CSP, Nos-2) for producing hot rolled
coils.

JSW Dolvi plant caters to several industries including automotive, petroleum pipes, projects
and construction, machinery, LPG cylinder-makers, cold rollers, oil and gas sector and
consumer durables.

JSW Hot Rolled (HR) Coils specifications:

Thickness 1.2 - 25.4mm

Width 900-2100 mm

18
 Re-rolling/ Drawing Grades,

Tube and Pipe/ Forming Grades,

Structural/ Medium Tensile Tube/ Forming Grades,

LPG/ Low Pressure Vessel Grades,

HSLA Grades,
Grades
Medium Carbon Grades,

Weather Resistance Grades,

Line Pipe Grades,

Chequered Plates

JSW Hot Rolled – Cut to length sheets specifications:

Thickness 1.2 - 25.4mm

Width 900-2050 mm
Length 1000 – 13000 mm

Key features of TMT:

• Pure Steel gives enhanced strength with durability

• Best in class Rib Pattern with highest AR value that bonds best with cement
• Consistent quality across the bar – HYQST ensures a uniform quality which
can be seen as concentric rings in the cross-section of the bar
• Earthquake resistant
• Easy weldability due to low carbon content
• Anti-Corrosive
• Easy Bendability due to inherent microstructure with soft ferrite and pearlite
core

19
• Higher Fatigue resistance for cyclic load conditions
• Green Steel from Zero Effluent discharge plant

JSW TMT Bars specifications:

Size 8-40 mm
Grades Fe500, Fe500D , Fe550D, Fe600 and CRS grade
Form In Straight form; 8 & 10mm also available in coil form

JSW Steel Ltd., Dolvi Works

20
Facility of JSW:

Vijaynagar works:

India’s first 12 MTPA steel plants at single location, “the fastest growing steel plant in
India”. The JSW Steel Vijayanagar plant is the first integrated steel plant to reach 12 MTPA
capacities in a single location. It is the first in India to use the Corex technology for hot metal
production. Now other steel plants are copying the same.

The first hot strip mill at Vijayanagar was commissioned in 1997. Since then it has grown
exponentially and now has an installed capacity to produce 12 MTPA of steel. Located at a
remote village Toranagallu part of under developed North Karnataka in the Bellary-Hospet
iron ore belt of Karnataka, the fully integrated steel plant, is well- connected with both the
Goa, Krishnapatnam, Mangalore and Chennai ports.

Unique features:

Regarded as the world’s Corex showpiece; it was the first Greenfield project in India and
among the first in the world to have successfully used this technology to produce “green
steel”.

Houses India’s largest blast furnace and the widest hot strip mill.

The only plant in India with pair-cross technology and twin-stand reversible cold- rolling
mill.

The highest productivity steel plant in India, producing 800-plus tonnes per person per
annum.

Recognized for its ‘zero-effluent discharge’ status; it reuses more than 95 per cent of process
waste.

Low carbon footprint as it recycles 96% of coke oven gas for power generation.

Uses sophisticated ambient air control infrastructure beyond and has reduced gas flaring
to lower levels.

21
Salem works:

JSW acquired SISCOL in the year 2004, a sick unit at that time. Quick turnaround of the
plant was achieved by expanding capacity from 0.3 Mt to 1 Mt and switching over to value
added products.

Unique features:

Complete product range

Rounds: 5.5 to 180 mm

RCS: 55 to 265 mm

Flats: 60 to 101 series

DSIR Approved R&D Centre with sophisticated modern equipment.

Online Automatic inspection and testing facilities for Rounds and RCS up to 160. High

precision rolling Reducing and Sizing block in Bar and rod mill.

Dolvi works:

The 5 MTPA integrated steel plant at Dolvi, Maharashtra majority stake acquired in 2010,
is an inherent part of JSW Steel. This is Indian's first and only operating CONARC
Technology plant. Located on the west coast of India, the plant has a jetty with a capacity of
10 million tonnes per annum. This provides the unit with logistical advantages in importing
raw materials and savings on freight cost. The unit is connected through rail, road and sea
and has given the JSW Steel a strategic presence in western India.

The Dolvi plant caters to several industries including automotive, projects and construction,
machinery, LPG cylinder-makers, cold rollers, oil and gas sector and consumer durables.

Unique features:

22
The Dolvi plant is the first in India to adopt a combination of Conarc technology for steel
making and compact strip production (CSP) for producing hot rolled coils. * The main
feature of CSP is thin slab casting.

It can produce coils with thickness as low as 1.0 mm.

HR coils produced at Dolvi are feed material for the two JSW Steel cold rolling and
downstream facilities at Vasind and Tarapur.

Vasind works:

The Vasind plant focuses on JSW- branded high-end steel products. It sources HR Steel coils
from the Dolvi and Vijayanagar plants to manufacture value-added, branded steel products
such as galvanised steel, plain and corrugated products as well as colour-coated products.

The journey that started in 1982 with the commissioning of a 20 high cold rolling mill has
turned into a full-fledged complex with cold rolling, hot rolling, galvanizing and colour
coating facilities. Galvanized steel from Vasind is a market leader in both domestic and
international markets. The unit exports mainly to the USA, Europe and Middle East Asia
and South African Continent.

The plant has a total capacity of 0.45 MTPA in galvanized and cold-rolled products,
0.225 MTPA colour coated products and hot-rolled plates manufacturing facility.

Unique features:

Part of India’s largest coated product producer and exporter of galvanized steel.

Manufacturer of appliance grade colour coated products, a revolutionary product in the

Indian steel industry which will replace imported steel in the manufacture of white goods in
India.

It has one of the plants that acquired in JSW.

Turnaround Delivery Time within three weeks of demand.

23
Tarapur works:

The Tarapur plant marks one of the first milestones for JSW Steel. This plant was originally
inaugurated on 11 May 1974 by Hon. Vasant Rao Naik, the then Chief Minister of
Maharashtra. The plant was acquired by Late Shri O. P. Jindal on 9 November 1982, from
Piramal Steel Limited and renamed Jindal Iron and Steel Company. The plant offers coated
products catering to several sectors. Tarapur plant specializes in galvanizing, Galvalume and
colour coated steels. It is India’s largest producer and exporter of Coated Products.

The Tarapur plant has five cold rolling mills and five coated strip divisions, which include
two dual pots galvanizing cum galvalume lines, two colour coated lines and a 30 MW captive
power plant.

It has a total capacity of 0.75 MTPA (including on-going projects) and sources coils from
the Vijayanagar and Dolvi plants to manufacture value-added branded steel products.

Features:

The Tarapur plant is specialized for the Ultra-Thin Coated Products.

The Tarapur plant features two dual product lines for galvanized cum Galvalume with a
coating capacity of 0.45 MTPA.

It also has 30 MW Captive Power Plant (CPP) to meet the power requirement of both Tarapur
and Vasind plant.

Tarapur has a zero discharge facility having a multi-effect evaporator system for effluent
treatment.

It has a unique service centre facility to meet the customized requirement of various
segments like Export, OEM, and Retail for their cut sheet/ corrugation and profiling
requirement

It has also installed rainwater harvesting system to meet its water requirement.

24
Kalmeshwar works:

One of the downstream operations of JSW Steel is executed from Kalmeshwar. The
Kalmeshwar plant has a pickling line, two rolling mills, two galvanizing lines, two colour-
coating lines, a Galvalume line, six slitting and 7 cut-to-length lines, two profiling lines and
a tile profiling line. It was earlier Ispat Industries.

Features:

Zero Liquid Discharge Facility

Evolution of JSW Steel Ltd., Dolvi Works:

2002 - 1.6 MTPA total capacity.

2004 - Acquired Southern Iron and Steel Company (SISCOL)

2005 - Total capacity increased to 2.5 MTPA, introduced colour coating line and
acquired EURO IKON.

2006 – Total capacity increased to 3.8 MTPA. 2007

- Total capacity increased to 4.8 MTPA. 2008 - Iron

ore mines acquired in Chile.

2009 - Total capacity increased to 7.8 MTPA.

2010 – Coal mining concessions took place in US, HSM II of capacity 3.5 MTPA was
developed, JSW - JFE strategic partnership happened.

2010 to 2011 – Acquisition of 49.3 % stake in Ispat. 2012 –

Capacity of HSM II increased to 5 MTPA.

2013 – Total capacity increased to 14.5 MTPA.

2014 – New CRM2 (Phase 1), Pellet plant of capacity 4 MTPA and Coke Oven plant of
capacity 1 MTPA was developed, acquired 50 % stake in Vallabh Tinplate and Welspun
Maxsteel.

25
2015 – New CRM2 (Phase 2) and Electrical steel mill of capacity 0.2 MTPA was
developed.

2016 – Total capacity increased to 18 MTPA.

2017 – Acquired 74 % stake in Praxair’s the industrial gases joint venture, won 5 iron ore
mines in Karnataka (111 million tonnes estimated resources).

Growth of JSW Steel Ltd., Dolvi Works:

JSW Steel has had a history of acquiring stressed companies at attractive valuations and
turning them around—the most recent major acquisition being that of Ispat Industries in
2010. The company has grown from 1.6 million Tonnes Company in 2002 to 18 million
tonnes now, and a significant portion of that is by way of acquisitions. With five more
stressed steel assets up for grabs through the insolvency proceedings, Sheshagiri Rao, joint
managing director and group CFO tells FE’s Shubhra Tandon on what these acquisitions
could mean for JSW Steel. Excerpts of an interview:

Q) You have shown interest in some of the stressed steel assets on the block. What is the
quality of these assets?

A) Will not be able to comment on the quality of these assets, but we have to look at our
return on capital employed. We are number two in terms of our ROCE and we would like to
maintain that position. Our ROCE is 13% at present, and it should be around that. Also, the
acquisitions that we have made are not just for the purpose of acquiring or for just volumes.

Q) You said that not submitting an expression of interest within the date does not mean you
are out of the race for bidding an asset. Does that mean you are going to bid for Essar Steel?

A) Our strategy is to look at inorganic growth. Everybody is asking us that we have

submitted EOI for X company and not for Y. But I would like to clarify that not ensuring
submission of EOI, is not an indication that a certain company is out of the

26
competition. If somebody comes and puts in a bid before it is finalised, which is a better bid
than the existing players, it could always be considered.

Q) Bankers are not comfortable with the valuations for these assets. What is your take on
valuations of these assets?

I would not be able to comment on banks comfort or discomfort. But there could be various
methodologies to look at valuation. Looking at just the asset valuation without considering
the future cash flows has no meaning. If somebody wants to create a 1 million tonne of steel
facility, the capital required is `6,000 crore i.e. the asset value, which has no meaning unless
that `6,000 crore generates an EBITDA of `10,000 per tonne.

Q) With so much of inorganic growth planned, would you be looking at any significant
capital rising?

A) For the organic growth we have said we have a capital expenditure plan of `26,800 crore,
which will be funded through debt of `15,000 crore balance by way of cash equivalents in
the operation, which is more or less in place.

Challenges faced by Indian Steel Industry:

Cost of energy is very high.

Duties and taxes imposed are also on the higher side. Quality

of coking coal is varying.

It has dependence on imports for steel manufacturing equipment and technology.

Global impact on Indian Steel Industry:

Slow growth in infrastructure development.

27
Market fluctuations and China’s export possibilities. There is

a global economic slowdown.

Government Regulations:

Emphasis is being done on infrastructural development during the formulation of the Union
Budget 2011.

Noteworthy reductions in import duties on key steel making raw materials is being carried
out.

To ensure growth of Iron and Steel Sector in India, Ministry of Steel takes up their issues
with the other concerned Ministries/Departments.

Resources:

It has workforce with strong managerial skills in iron and steel making. It has

a large pool of skilled manpower.

It is one of the established steel players with strong skills in steel making. It has

abundant iron ore reserves.

Opportunities:

High economic growth driven by industry can be useful.

Faster urbanisation can prove beneficial.

Increased fixed asset building.

Automobiles and component industry growth is the future.

28
Michael Porter’s Five Forces

Buyer’s power:

The demand for steel can be increased. There

can be fragmented coke suppliers.

Supplier’s power:

Raw materials prices may increase. There

might be a lack of transportation.

Threat from competition:

There can be a competition from foreign players.

Spurt in merger and acquisition activities.

Threat from new entry:

Basic inputs and services can be costly.

Industry is capital intensive.

Threat from substitutes:

Use of aluminium, plastic, carbon fibre.

29
CHAPTER 3: Company’s Profile

History of JSW:

The story of JSW is one of passion, grit and an insurmountable determination to work hard
and win against all odds. It is, in many ways, the story of India itself.

What began as one man’s dream has evolved into one of India`s leading business houses,
with a workforce of over 40,000. Over the years, JSW has grown beyond steel, foraying into
cement, infrastructure, energy and the like, helping build a new nation.

JSW was set up as Nippon Denro Ispat Limited in May 1984 by founding Chairman Mr M.
L. Mittal. The company have operations in iron steel, cement, energy, infrastructure and
ventures. It is an integrated steel plant, located at Dolvi.

The 1200 acres (4.9 km2) Dolvi complex houses the 3.3 million tonnes per annum (MTPA)
HR Coils plant, and 1.5 MTPA TMT Bar Mill (newly established) which combines the latest
technologies the Compact Strip Process (CSP) introduced in Asia. It is headquartered at
Mumbai and employs about 3000 people.

On 21st December 2010, it was declared that JSW Steel will buy this industry at $3 billion
to emerge as India’s largest private sector producer of the steel. In April 2013, the complete
merger has been completed. Currently this industry is owned by Mr Sajjan Jindal.

The Dolvi unit features a sponge iron plant (1.6 MTPA), a blast furnace, a sinter plant, a hot
strip mill (3.3 MT), an oxygen plant and a lime calcination plant.

The plant uses a combination of ConArc and CSP processes to produce hot rolled coils.

JSW has, and always will be, known as the “strategic first mover” to venture away from
status quo, thanks to its conviction to make fundamental changes and drive operational
excellence.

30
Today, JSW is more than just a billion-dollar conglomerate. It has become a partner in India’s
progress, and a firm believer in giving back to the society and the people that have been
instrumental in making it grow.

JSW is a mark of trust and quality that millions of customers around the world depend on.

Hierarchy of JSW:

Managing Director Chief

Executive Officer

L18 (Senior Vice President) L17

(Vice President)

L16 (Associate Vice President) L15

(General Manager)

L14 (Deputy General Manager) & L13 (Associate General Manager) L12

(Senior Manager) & L11 (Manager)

L10 (Deputy Manager)

L9 (Assistant Manager) / Management Trainee L8

(Junior Manager) / GET

L3 (DET) - L7 (Engineering)

Founding member of JSW:

31
Jindal Group was founded in 1952 by Late. Shri O.P. Jindal, a first generation entrepreneur,
it is today a leading steel producer, with interests spanning across the spectrum, from mining
ore, to manufacturing value-added steel products. Currently Mr Sajjan Jindal is the
Chairman of JSW Group, Mrs Sangita Jindal is the Chairperson of JSW Foundation and Mr
Parth Jindal is the Managing Director of JSW Cement.

Vision:

Vision is to bring positive transformation to every life they touch.

JSW is about building, transforming and giving back. Every act of ours is centred about
building something new or bettering something that already exists.

We think beyond just business or our customers. We strive to positively impact the lives of
our business associates, our customers, our employees, the communities that we serve and
the nations that we operate in.

Mission:

Mission is to support India’s growth in Steel Domain with speed and innovation.

Purpose:

Purpose is to accelerate growth and prosperity of the communities they live in by:

Building World-class Infrastructure

Creating Inventive Solutions

Nurturing Our Communities

32
Deploying World-class Capabilities

Empowering Our People

Core Values:

Core values include 5Cs as follows:

Confidence: Having the confidence to dream big. Setting high goals and believing that
they can do it.

Courage: The courage to spark progress. To try new solutions. And practice ideas that others
find risky.

Commitment: Delivering what was promised, without excuses. Being honest in our dealings
and products and following the law.

Compassion: Being mindful about our actions towards our team, the society and
environment. Thinking about the big picture.

Collaboration: Working symbiotically with our communities, society and the

environment.

33
CHAPTER 4: SWOT Analysis of JSW Steel Ltd., Dolvi Works

Parent Company is JSW Group. Category is

Iron and Steel.

Sector is Industrial products.

Tagline/Slogan is “No Limits “.

Unique Selling Preposition is steel, flat steel products, long steel products, wire products,
plates.

Target Group is infrastructure, Oil industry, and automobile and construction sectors.

Positioning is done as follows – It is one of the key and strategic steel producers in the country
catering to almost all segments with range of steel products.

Strengths:

India’s third largest steelmaker with a combined capacity of 14+ MTPA hence enjoys
economies of scale.

Vijaynagar Works is a fully integrated steel plant. An integrated plant has in house
capabilities for the entire range of activities involved from extractions of minerals,
refinement to the production of finished goods.

JSW has recently launched Galvalume which is a revolutionary product in the steel industry.

High growth prospects with a consistently increasing revenue and strong financial position.

The labour and conversion costs per ton of steel are among the lowest in the industry. One

of the lowest cost steel producers in the world.

34
JSW is the first steel producer in the world to use Corex Technology for producing hot
metals.

It operates in both upstream as well as downstream sectors.

Productivity per employee at JSW steel is comparable to international standards.

Weaknesses:

Limited portfolio diversification compared to industry leaders.

Less number of mines under its hood affects availability of raw materials.

Capacity utilization is not cent per cent.

Opportunities:

Increase in demand from all sectors in Indian & Global world.

It can undertake mergers & acquisition to keep steady supply of raw materials. Product

development can be carried out by investing more in R&D.

Threats:

Cyclical nature of steel industry needs to have efficient process of production. It has

competition from existing and foreign players.

It has to follow Government and environment regulations.

There might be changes in the prices of raw materials & end products in the future.

35
CHAPTER 5: Competitor’s Profile

TATA Steel

Introduction:

Tata Steel Limited (formerly Tata Iron and Steel Company Limited (TISCO)) is an Indian
multinational steel-making company headquartered in Mumbai, Maharashtra, India, and a
subsidiary of the Tata Group.

It is one of the top steel producing companies globally with annual crude steel deliveries of
27.5 million tonnes (in FY17), and the second largest steel company in India (measured by
domestic production) with an annual capacity of 13 million tonnes after SAIL.

Tata Steel has manufacturing operations in 26 countries, including Australia, China, India,
the Netherlands, Singapore, Thailand and the United Kingdom, and employs around 80,500
people. Its largest plant located in Jamshedpur, Jharkhand. In 2007 Tata Steel acquired the
UK-based steel maker Corus.

It was ranked 486th in the 2014 Fortune Global 500 ranking of the world's biggest
corporations. It was the seventh most valuable Indian brand of 2013 as per Brand Finance.

History:
Tata Iron and Steel Company was founded by Jamshedji Tata and established by Dorabji
Tata on 26 August 1907, as part of his father Jamshetji's Tata Group. By 1939 it operated the
largest steel plant in the British Empire. The company launched a major modernization and
expansion program in 1951. Later in 1958, the program was upgraded to 2 million metric
tonnes per annum (MTPA) project. By 1970, the

36
company employed around 40,000 people at Jamshedpur, with a further 20,000 in the
neighbouring coal mines. In 1971 and 1979, there were unsuccessful attempts to nationalise
the company. In 1990, it started expansion plan and established its subsidiary Tata Inc. in
New York. The company changed its name from TISCO to Tata Steel in 2005.

Tata Steel on Thursday, 12 February 2015 announced buying three strip product services
centres in Sweden, Finland and Norway from SSAB to strengthen its offering in Nordic
region. The company, however, did not disclose value of the transactions.

In September 2017, ThyssenKrupp in Germany and Tata Steel announced plans to combine
their European steelmaking businesses. The deal will structure the European assets as
ThyssenKrupp Tata Steel, a 50-50 joint venture. The announcement estimated that the
company would be Europe’s second-largest steelmaker.

Acquisitions:

NatSteel in 2004:

In August 2004, Tata Steel agreed to acquire the steel-making operations of the Singapore-
based NatSteel for $486.4 million in cash. NatSteel had ended 2003 with turnover of $1.4
billion and a profit before tax of $47 million. The steel businesses of NatSteel would be run
by the company through a wholly owned subsidiary called NatSteel Asia Pte Ltd. The
acquisition was completed in February 2005. At the time of acquisition, NatSteel had a
capacity of about 2 million tonnes per annum of finished steel.

Millennium Steel in 2005:

Tata Steel acquired a majority stake in the Thailand-based steelmaker Millennium Steel for
a total cost of $130 million. It paid US$73 million to Siam Cement for a 40% stake and
offered to pay 1.13 baht per share for another 25% of the shares of other shareholders. For
the year 2004, Millennium Steel had revenues of US$406 million and a profit after tax of
US$29 million. At the time of acquisition, Millennium Steel was the largest steel company
in Thailand with a capacity of 1.7 million metric tonnes per annum, producing long products
for construction and engineering steel for auto

37
industries. Millennium Steel has now been renamed to Tata Steel Thailand and is
headquartered in Bangkok. On 31 March 2013, it held approx. 68% shares in the acquired
company.

Corus in 2007:

On 20 October 2006, Tata Steel signed a deal with Anglo-Dutch Company, Corus to buy
100% stake at £4.3 billion ($8.1 billion) at 455 pence per share. On 19 November 2006, the
Brazilian steel company Companhia Siderúrgica Nacional (CSN) launched a counter offer
for Corus at 475 pence per share, valuing it at £4.5 billion. On 11 December 2006, Tata
preemptively upped its offer to 500 pence per share, which was within hours trumped by
CSN's offer of 515 pence per share, valuing the deal at £4.9 billion. The Corus board
promptly recommended both the revised offers to its shareholders. On 31 January 2007, Tata
Steel won their bid for Corus after offering 608 pence per share, valuing Corus at £6.7 billion
($12 billion).

In 2005, Corus employed around 47,300 people worldwide, including 24,000 in the UK. At
the time of acquisition, Corus was four times larger than Tata Steel, in terms of annual steel
production. Corus was the world's 9th largest producer of Steel, whereas Tata Steel was at
56th position. The acquisition made Tata Steel world's 5th largest producer of Steel.

Two rolling mill companies in Vietnam in 2007:

Tata Steel through its wholly owned Singapore subsidiary, NatSteel Asia Pte Ltd, acquired
controlling stake in two rolling mill companies located in Vietnam: Structure Steel
Engineering Pte Ltd (100% stake) and Vinausteel Ltd (70% stake). The enterprise value for
the acquisition was $41 million. With this acquisition, Tata Steel got hold of two rolling
mills, a 250k tonnes per year bar/wire rod mill operated by SSE Steel Ltd and a 180k tonnes
per year reinforcing bar mill operated by Vinausteel Ltd.

38
Operations:

Tata Steel is headquartered in Mumbai, Maharashtra, India and has its marketing
headquarters at the Tata Centre in Kolkata, West Bengal. It has a presence in around
50 countries with manufacturing operations in 26 countries including: India, Malaysia,
Vietnam, Thailand, UAE, Ivory Coast, Mozambique, South Africa, Australia, United
Kingdom, The Netherlands, France and Canada.

Tata Steel primarily serves customers in the automotive, construction, consumer goods,
engineering, packaging, lifting and excavating, energy and power, aerospace, shipbuilding,
rail and defence and security sectors.

Expansion plans:

Tata Steel has set a target of achieving an annual production capacity of 100 million tons by
2015; it is planning for capacity expansion to be balanced roughly 50:50 between Greenfield
developments and acquisitions. Overseas acquisitions have already added an additional 21.4
million tonnes of capacity, including Corus (18.2 million tonnes), NatSteel (2 million tonnes)
and Millennium Steel (1.2 million tonnes). Tata plans to add another 29 million tonnes of
capacity through acquisitions.

Major greenfield steel plant expansion projects planned by Tata Steel include: 1. A 6 million
tonne per annum capacity plant in Kalinganagar, Odisha, India; 2. An expansion of the
capacity of its plant in Jharkhand, India from 6.8 to 10 million tonnes per annum; 3. A 5
million tonne per annum capacity plant in Chhattisgarh, India (Tata Steel signed a
memorandum of understanding with the Chhattisgarh government in 2005; the plant is
facing strong protest from tribal people); 4.A 3 million tonne per annum capacity plant in
Iran; 5.A 2.4 million tonne per annum capacity plant in Bangladesh; 6. A 10.5 million tonne
per annum capacity plant in Vietnam (feasibility studies are underway); and 7.A 6 million
tonne per annum capacity plant in Haveri, Karnataka.

39
Awards and recognition:

Tata Steel Minerals Canada was conferred with John T Ryan Safety award for 2015.

In the year 2013, Tata Steel was ranked India's 7th most admired company by Fortune
magazine. It was India's most admired company in 2012.

It won the 'Golden Peacock' award in 2009 for its corporate social responsibility (CSR)
initiatives.

In 2012, Tata Steel became the first integrated steel company in the world to be awarded the
Deming Grand Prize.

Tata Steel's Climate disclosure received highest rating of 100% CDLI [51] score in CDP
2015 (97% in CDP 2014[52]). Thus for two consecutive years, Tata Steel remained highest
rated company amongst global Steelmaking companies. On the domestic front, it became
one of the four highest rated companies in India (only one being from Material sector; other
three are from IT sector) in 2015. Over last two years i.e. 2016 and 2017, it has remained as
one of the four to seven top rated steel companies, globally, in CDP List.

Tata Steel was ranked 110th among India's most trusted brands according to the Brand Trust
Report 2012, a study conducted by Trust Research Advisory. In the Brand Trust Report
2013, Tata Steel was ranked 364th among India's most trusted brands while according to the
Brand Trust Report 2014, Tata Steel was ranked 264th among India's most trusted brands. It
was among 16 of Tata Group's subsidiary brands to feature in the report apart from the parent
brand. Ratan Tata also featured in the report among India's most trusted 'Personality' brands.

Comparison with JSW:

With its acquisition of Bhushan Steel nearing completion, Tata Steel can now formally wear
the crown of the largest steelmaker in India. But it's a glory that its close competitor, and
now number two, JSW Steel will be eager to take back. And the Sajjan Jindal-company may
well do that within weeks.

40
Bhushan Steel's annual capacity of 5.6 million tons takes Tata Steel's total volume to
18.6 million tons, around half-a-million tons more than JSW Steel's capacity of 18.1 million
tons.

To be sure, a few more formalities are yet to be completed as Bhushan Steel's erstwhile
promoter Neeraj Singhal and operational creditor Larsen & Toubro have approached the
National Company Law Appellate Tribunal (NCLAT), contesting the beleaguered
steelmaker's sale.

But for most practical purposes, the deal is as good as done.

However, Tata Steel runs the risk of losing its crown soon, as JSW Steel is finishing off the
last of the formalities in its acquisition of Monnet Ispat, which like Bhushan Steel was
referred to the National Company Law Tribunal (NCLT) last year.

The Competition Commission of India has approved JSW Steel's bid for Monnet Ispat, and
the company is now waiting for a final approval from the NCLT.

Monnet Ispat's facility includes a mill that can produce 1.5 million tons of steel a year. This
will take JSW Steel's total capacity to 19.6 million tons, and overtake Tata Steel.

But even if JSW Steel manages to wrest the crown away from Tata Steel, it may not wear it
for long. The pecking order may change yet again.

Tata Steel continues to be in the running for Bhushan Power & Steel, another bankrupt
company that was founded by the same Singhal family that owned Bhushan Steel.

Bhushan Power & Steel can produce 3.2 million tons of steel a year. If Tata Steel does get
its hands on the company, its capacity will go past the 20 million ton-mark, and it will be
well clear of JSW Steel in the race to the top.

But UK-based group Liberty House stands in Tata Steel's way, having submitted a late bid
for Bhushan Power & Steel. While the race is still on, Liberty House's bid is now higher than
that of Tata Steel, which is not happy that the UK-company was allowed to make a late entry.

Tata Steel had initially emerged as the favourite for the troubled steelmaker after outbidding
JSW Steel.

41
So the title of the largest steel manufacturer in India could either be with Tata Steel or JSW
Steel by the end of this year.

Expansion plans

The competition between the two largest steelmakers in the country, however, extends to
beyond a year or two. Both companies have lined up ambitious expansion plans.

JSW Steel plans to increase its capacity by nearly 40 percent in two years, taking its volume
to 24.7 million tons by 2020.

The company's capacity could even reach the 40-million-ton mark in another three years, as
it plans to further expand capacity at its facilities at Vijayanagar in Karnataka, and has drawn
up a plan to set up a new facility in Odisha.

But given the challenges in setting up greenfield facilities in India, it would be prudent to
not count the proposed new plant.

Tata Steel has also announced plans to expand its capacity to 26 million tons a year by 2022,
not including the capacity addition on account of the Bhushan Steel acquisition.

Domestic market

It is not just the competition that is pushing Tata Steel and JSW Steel to spend thousands of
crores of rupees to expand capacity. The two companies are banking on the promise being
shown by the Indian industry.

India's total domestic steel manufacturing capacity currently stands at around 120 million
tons a year, which is expected to more than double to 300 million tons a year by 2030.

Even if one goes by the more conservative estimates of 250 million tons a year, the country
would need many more steel plants to meet the rising demand.

Interestingly, Tata Steel and JSW Steel may face some competition from Steel Authority of
India (SAIL). The state-owned steelmaker may finally complete its oft- delayed expansion
programme within the next two years.

42
When the expansion gets completed, SAIL's capacity will be around 21 million tons a year,
which will propel the company ahead in the race to the top of the pecking order.

The favourites, however, are still Tata Steel and JSW Steel.

International shores

Interestingly, even as one is making further inroads in the global market, the other is
shedding its international baggage.

JSW Steel recently announced the acquisition of Aferpi, the second largest steelmaker in
Italy. It is also adding capacity at its plate mill in the US.

Tata Steel, on the other hand, is looking to focus on the domestic market, more than 10 years
after it made bought UK-based steelmaker Corus. It is now in talks with Thyssenkrupp to
merge much of its remaining units in Europe. Though the proposed merger is delayed, it is
expected to be completed by the end of this year.

International plans aside, the big-wigs of the Indian steel industry will continue their focus
on the domestic market.

But who will eventually take the crown, is a tough call.

Steel Authority of India Ltd

Introduction:

Steel Authority of India Limited (SAIL) is an Indian state-owned steel making company
based in New Delhi, India. It is a public sector undertaking, owned and operated by the
Government of India with an annual turnover of INR 44,452 Crore (US$ 6.83 Billion) for
fiscal year 2016-17. Incorporated on 24 January 1973, SAIL has 78,333 employees (as of
01-Jan-2018). With an annual production of 14.38

43
million metric tons, SAIL is the largest steel producer in India and one of the largest steel
producers in the world. The Hot Metal production capacity of the Company will further
increase and is expected to reach a level of 50 million tonnes per annum by 2025. Shri P.K
Singh is the current Chairman of SAIL.

SAIL operates and owns 5 integrated steel plants at Bhilai, Rourkela, and Durgapur, Bokaro
and Burnpur (Asansol) and 3 special steel plants at Salem, Durgapur and Bhadravathi. It also
owns a Ferro Alloy plant at Chandrapur. As a part of its global ambition, the company is
undergoing a massive expansion and modernisation programme involving upgrading and
building new facilities with emphasis on state of the art green technology. According to a
recent survey, SAIL is one of India's fastest growing Public Sector Units. Besides, it has
R&D centre for Iron & Steel (RDCIS), Centre for Engineering and Technology (CET),
Management Training Institute (MTI) and SAIL Safety Organisation (SSO) located at
Ranchi capital of Jharkhand.

History (1959-1973):

SAIL traces its origin to the Hindustan Steel Limited (HSL) which was set up on 19 January
1954. HSL was initially designed to manage only one plant that was coming up at Rourkela.

For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and Steel
Ministry. From April 1957, the supervision and control of these two steel plants were also
transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved
to Calcutta in July 1956 and ultimately to Ranchi in December 1959.

A new steel company, Bokaro Steel Limited (Bokaro Steel Plant), was incorporated on 29
January 1964 to construct and operate the steel plant at Bokaro. The 1 MT phases of Bhilai
and Rourkela Steel Plants were completed by the end of December 1961. The 1 MT phase
of Durgapur Steel Plant was completed in January 1962 after commissioning of the Wheel
and Axle plant. The crude steel production of HSL went up from 1.58 MT (1959–60) to 1.6
MT. The second phase of Bhilai Steel Plant was completed in September 1967 after
commissioning of the Wire Rod Mill. The last unit of the 1.8 MT phase of Rourkela – the
Tandem Mill – was commissioned in February

44
1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969 after
commissioning of the Furnace in SMS. Thus, with the completion of the 2.5 MT stage at
Bhilai, 1.8 MT at Rourkela and 1.6 MT at Durgapur, the total crude steel production capacity
of HSL was raised to 3.7 MT in 1968–69 and subsequently to 4 MT in 1972–73. IISCO was
taken over as a subsidiary in 1978 and later merged in 2006.

Operations:

As of 31-Mar-2015, SAIL has 93,352 employees, as compared to 170,368 (as of 31- Mar-
2002). There has been a continuous reduction of headcount over the past few years due to
enhanced productivity and rationalized manpower.

The total requirement of its main raw material, iron ore, is met through its captive mines. To
meet its growing requirement, capacities of existing iron ore mines are being expanded and
new iron ore mines are being developed. In addition, new iron ore deposits in the states of
Rajasthan, Chhattisgarh, Madhya Pradesh, Maharashtra, Odisha and Karnataka are being
explored. Around 24% of its coking coal requirements are met from domestic sources, the
remaining through imports. For improving coking coal security, the Company is also making
efforts for development of new coking coal blocks at Tasra and Sitanalla.

SAIL produced 13.9 million tons of crude steel by operating at 103% of its installed capacity,
which is an increase of 1% over the previous year. It also generated 710 MW of electricity
during FY2014-15.

Achievements:

45
"Best of all" Rajiv Gandhi National Quality Award in 1993, 2006, and 2007 for their Bhilai
and Bokaro plants.

Quality Summit New York Gold Trophy 2007 (International Award for Excellence &
Business Prestige) and Award of Excellence Maintenance for Sumitomo Heavy Industry &
TSUBKIMOTO-KOGIO, Japan won by Alloy Steel Plant, Durgapur.

SAIL was featured in the 2008 list of Forbes Global 2000 companies at position 647.

Golden Peacock Award for Combating Climate Change – 2008 for BSP, Occupational Health
and Safety- 2008 for BSL.

National Safety Award to Bhilai Steel Plant announced by the Ministry of Labor &
Employment, Government of India – 2008.

Durgapur Steel Plant won the 2nd Prize in the Association of Business
Communicators of India Awards – 2008.

Ispat Bhasha Bharati. The Rajbhasha Journal of SAIL has been awarded with the first prize
under the All India House Journal Award Scheme – 2008–09.

Salem Steel Plant received the prestigious Greentech Gold Award in Metal and Mining
Sector – 2008–09.

Golden Peacock Award for Corporate Social Responsibility won by Bhilai Steel Plant (BSP)
for the third year in a row – 2009.

Rourkela Steel Plant collected the prestigious Srishti Good Green Governance (G- Cube)
Award – 2009.

Greentech HR Excellence Award secured by the Durgapur Steel Plant – 2009.

The steel township of Rourkela Steel Plant (RSP) has been ranked 14th in sanitation and
cleanliness by Union Urban Development Ministry – 2009–10.

Greentech Safety Gold Award was given to Bhilai Steel Plant – 2010.

46
The HR Excellence Award by the Greentech Foundation won by Bhilai Steel Plant – 2010.

SSP has won the prestigious Greentech Silver Award in Training Category of Greentech HR
Excellence Awards – 2010.

Award for financial and operational strength by Indian Institute of Industrial Engineering
(IIIE) - 2009–10.

Golden Peacock Environment Management Award – 2011.

Randstad Award for HR Practices and Employer Branding under 'Manufacturing Industries'
category – 2011.

Maiden Wockhardt Shining Star CSR Award in the Iron & Steel Sector category – 2011.

Salem Steel Plant (SSP) has won the prestigious National Sustainability Award for the 6th
time in succession and 13th time since inception of the award from Indian Institute of Metals
(IIM) – 2011.

Comparison with JSW

State-run Steel Authority of India Ltd (SAIL) wants to catch up with rivals Tata Steel and
JSW Steel in steel supplies to automotive and white goods sectors over the next two years.
For this, the company expects its current modernization and expansion drive will help
produce the kind of steel used in these sectors.

An estimated Rs 7,039 crore of the modernization investment of Rs 62,000 crore is being

spent on producing value-added products that will be used in the automotive and white goods
sector, said Mr. C.S. Verma, Chairman, SAIL.

A new cold-rolling complex is being set up at the Bokaro Steel Plant that will boost the
share of value-added products targeting auto and white goods sector. The

47
upcoming plant has a production capacity of one million tons of cold-rolled steel and
3.5 lakh tons of galvanized products, Mr. Verma said.

SAIL leads steel industry supplies to segments such as construction, power plant equipment
and construction, Railways (including wagon-making), LPG cylinder manufacturing and
other capital goods. However, in segments such as automotive, capital goods, oil and gas
transport and pre-fabricated structures, SAIL lags its competitors.

In the automotive sector, Tata Steel accounted for 23.6 per cent of the 5.37 million consumed
by the segment in 2011-11, closely followed by JSW Steel. SAIL supplied only 1.9 lakh tons
to the sector with a 3.5 per cent market share.

Similarly, in the white goods segment, SAIL accounted for 4.8 per cent or 1 lakh tons of the
2.06-million-tonne market in 2010-11. Tata Steel led the steel supplies to white goods
segment garnering a market share of 25.4 per cent, followed by JSW Steel and Essar Steel.

Mr. Verma said SAIL's value-added product portfolio, consisting of high-grade HR coils and
high-strength steel bars, would increase to about 55 per cent of its total output from the
present 39 per cent with the completion of the modernization by 2014. SAIL expects its
total output to go up to 24 million tons annually from the present 14 million tons by 2014.

48
CHAPTER 6: My work as an intern

My project is divided into two parts. First part includes a research report based on the mix
grade NCO being generated with the help of the PPC department. The other part includes
the study of HR coils and bulk materials (raw materials) being dispatched through railways
for the purpose of gaining knowledge and understanding the management aspect behind it
because there was no research that could be done in the Logistics department. The former
part of the project began by understanding the steel production process that has been adopted
by JSW Steel Ltd., Dolvi Works. To understand the process, it was mandatory to get hold of
the department that is actually involved in the above steel production process. Also I realised
the amount of orders that are coming in everyday for each of the products. This made me
think that there might be some department that is actually coordinating with the plant and
the marketing team and doing the proper scheduling of the production and dispatches too.
This is why PPC (Production Planning and Control) was the best department to have been
explored. Here I worked for about 20 days. After having initial interactions with the
employees of the PPC department, some research based problems came across that were
worth being analysed in order to get a solution to these problems and try to suggest corrective
measures with respect to the solutions that have been found out. After that I got some insights
on the varieties of production happening at JSW Dolvi works. I understood the different
varieties of HR coils being produced with respect to the usage of that particular coil. After
having gotten all this information, I enquired on the problems faced on daily basis in the
planning and scheduling of HR coils which are produced as per market requirements. To
which they immediately gave me the problem they were facing which they called as NCO
(Non Confirming Orders), the details of which will be seen in the further part of this report.
In short, these are the orders that are generated apart from the actual requirement of the
clients due to various reasons. There wasn’t much control which could be exerted on the
NCO being generated, thus I went to initially analyse the various reasons of NCO being
generated and for which NCO reason was the highest quantity being generated. After we
came to know what NCO reason was generating the highest quantity, which was figured out
as mix grade NCO (being 13 % amongst all the other NCO reasons being generated),

49
the reason for the mixing of various chemical compositions was analysed, for which quantity
was the highest mix grade NCO being generated and so on and so forth. Thus I thoroughly
analysed the production data that I was provided with from SAP for the previous financial
year (April’17 to March’18) and suggested some corrective measures that PPC department
could take which would benefit them and help them undertake optimum utilisation of
resources with minimum cost.

This was all about the research part of the report. After this I found the next very important
department that I must pay a visit to and understand its SOP (Standard Operating Procedure)
which was Logistics. I got to learn the how Logistics department is functioning. Logistics is
split into two parts, viz., Inbound Logistics and Outbound Logistics. Outbound Logistics in
other words is Sales and Distribution which is very vast and is significantly important in any
manufacturing plant. I got an opportunity to understand different ways of dispatch of all the
products and bulk materials from the plant. These dispatch modes included dispatching
through roads and railways to destinations directly, dispatching to depots which in turn
deliver the products to the nearby destinations of that depot and last one is through ports
which is exports.

I thought it would be perfect to get involved in the dispatches of HR coils happening through
railways. I went further to understand the system they were using, the time that was required
for loading of HR coils and bulk materials along with the type of wagons contained in a rake,
the different types of rakes and wagons that are involved in dispatching, the weights that
each of the wagon can take, the number of wagons in each rake, the cost of each wagon being
decided, the cost of the reaching the product or materials from source to destination and so
on. I was very intrigued with the railway dispatch system that had been adopted and hence
chose to gain insights on and share the knowledge acquired from one of the most reputed
steel production organisations.

50
CHAPTER 7: Data analysis and interpretation

After getting to know about the major problem being NCO that was being generated and
reducing the optimum utilization of resources and thereby increasing the cost, it was noticed
that NCO is being generated due to many reasons. This made me compare all the NCO
reasons and the result was as listed below with mix grade being the reason for the generation
of maximum quantity of NCO.

The above pie diagram represents total quantity of NCO produced in 3 months of FY17-18
(Jan’18 to Mar’18) which contains 13% mix grade NCO which is one of the highest amongst
all the other NCO reasons generated.

This makes it important to get a proper analysis done on the grades that generate mix grade
NCO and the quantity of mix grade NCO generated.

51
This can help us to get a clear view of the mix grade NCO generated and we can try to
minimize it.

Analysis done on NCO mix grade for HR coils produced in previous financial year (April’17
to March’18), the data for which had been provided by the employees of the PPC department.

The main reason here for the generation of mix grade is change in sequence. A sequence
simply means the order in which the production of HR coils has been decided as per the
priorities of the customers. As seen in the diagram below, the molten iron which is also
known as heat is transferred from the ladle furnace to the tundish which is like a temporary
reservoir with a hole at its bottom which has a nozzle connected at the hole through which
the molten iron slowly enters the copper mould where it will get its desired width. After
passing through the mould when it finally reaches the segments of rollers, the heat gets its
thickness which ranges between 55 mm and 65 mm and also undergoes cooling and bending
which gives the liquid iron a solid form and it gets converted into a slab. The ladle furnace
is responsible for giving the heat a particular composition. There are many such
compositions which are in demand for the client which have been planned and are produced
as per the requirements of the client.

52
 CSP Caster

When a previous composition present in the tundish (a temporary molten iron reservoir) as
seen in the above image, has been casted and the next composition is supposed to enter the
tundish for the further casting process, there is mixing that that takes place between the
current composition that is entered into the tundish and the remains of the previous
composition. This is how a mix grade is formed during change in sequence as per the
priorities of the clients.

The aim of the analysis includes identifying the transition between value added and non-
value added grades (Grade 1) and grades (Grade 2) with which each of these Grade 1 are
being mixed and the percentage of mixed grade being formed.

This would help us identify the grades that are generating maximum amount of mix grade
NCO such that we can try to avoid the generation of NCOs which would thereby help us to
make optimum utilization of available resources while minimising the cost.

For this, we first need to find out the value added and non-value added grades. Value added
grades are the ones which are formed by the addition of Ferro alloys.

The value added grades include the following:

VAG

53
The non-value added grades include the following:

NORMAL

54
55
 Grade 1 Grade 2 and % Grade 2 and % Grade 2 and %

JDHWT41AMN JDHCG04BCN(29) JDHCG04ASN(18) JDHST54AT1(14)

JDHCG04ACN(12) JDHMC2052A(10) JDHTR46TCA(7)

JDHST29ACN(5) JDHST52ALN(5) N/A

JDHWT41AT0 JDHWT41AHN(24) JDHSH41CLN(20) JDHCG04BCN(20)

JDHCG04B1N(20) JDHSPF590J(16) N/A

JDHWT41ATN JDHSH29ALN(40) JDHCG04ACN(30) JDHCG04BCN(30)

JDHWT41KLZ JDHCG04BCN(46) JDHWG29CCZ(21) JDHCG04B1N(13)

JDHWT41AT0(11) JDHST46ILZ(10) N/A

56
Grade 1 Grade 2 and % Grade 2 and % Grade 2 and %

JDHST29DCN JDHCG04BCN(28) JDHCG04B1N(25) JDHCG04ASN(21)

JDHCG04ACN(15) JDHCR04SPN(6) JDHSH41AMN(5)

JDHCG04B1N JDHST29DCN(21) JDHSH41ALN(17) JDHST29ACN(17)

JDHST46ILZ(14) JDHSH29ALN(11) JDHCG04ASN(11)

JDHWT41AMN(10)

JDHCG04ASN JDHCG04ACN(21) JDHWT41AMN(18) JDHWT41KLZ(11)

JDHWT41AT0(11) JDHSH29ALN(7) JDHST52AH0(7)

JDHCR04SPN(7)

Grade 2 and Grade 2 and

Grade 1 Grade 2 and % Grade 2 and % % Grade 2 and % %

JDHCG04BC JDHCG04ACN(1
N JDHST29ACN(18) JDHWT41AMN(13) 1) JDHWG29CCZ(10) JDHST29DCN(9)

JDHSH29ALN(5) JDHST52ALN(4) JDHSH41ALN(4) JDHST46ILZ(3) JDHWT41KLZ(3)

JDHWT41ATN(2) JDHWT41AHN(2) JDHCG04ASN(2) JDHCP41ATN(2) JDHSH41AMN(2)

JDHCG04B1N(2) JDHSAP44MJ(2) JDHSAP44LJ(2) JDHSH41AKN(2) JDHWT41ALN(2)

57
Grade 1 Grade 2 and % Grade 2 and % Grade 2 and %

JDHSH29ALN JDHWT41AMN(14) JDHCG04ASN(11) JDHCG04ACN(11)

JDHWT41ATE(10) JDHTR34ALZ(10) JDHWT41AME(9)

JDHCG04BCN(5) JDHPP46RCP(9) JDHTR46TCA(7)

JDHWT41AMZ(5) JDHSG41GTZ(4) JDHSG41GLZ(4)

JDHCG04ACN JDHCG04BCN(18) JDHWT41AMN(13) JDHWG29CCZ(10)

JDHWT41AHN(10) JDHST29DCN(9) JDHST46GLA(7)

JDHWT41ATN(5) JDHCR04SPN(5) JDHST29ACN(5)

JDHSH29ALN(5) JDHCG04B1N(5) JDHWT41AME(4)

JDHCP41ALN(4) N/A N/A

Grade 1 Grade 2 and % Grade 2 and %

JDHST29ACN JDHCG04BCN(27) JDHCG04ACN(24)

JDHCG04B1N(23) JDHWT41ATN(14)

JDHWT41ATE(6) JDHWT41KLZ(6)

JDHCR04SPN JDHCG04BCN(51) JDHWT41AMN(26)

JDHCG04ACN(12) JDHWT41AT0(11)

JDHWG29ACN JDHCG04BCN(100) N/A

58
CHAPTER 8: Findings

The tables on the pages 44 - 46 illustrate the value added grades which are being mixed with
other grades thereby generating a mix grade NCO.

Here Grade 1 is the value added grade, while Grade 2 is a mix of value added and non-value
added grades with which Grade 1 is getting mixed thereby generating a mixed grade NCO.

Grade 2 for each Grade 1 is arranged from left to right in descending order with the highest
quantity of mix grade being generated upon mixing with grade 1 being at the left and lowest
quantity of mix grade being generated upon mixing with grade 1 being at the right.

The tables on the pages 47 - 48 illustrate the value added grades which are being mixed with
other grades thereby generating a mix grade NCO.

Here Grade 1 is the non-value added grade, while Grade 2 is a mix of value added and non-
value added grades with which Grade 1 is getting mixed thereby generating a mixed grade
NCO.

Grade 2 for each Grade 1 is arranged from left to right in descending order with the highest
quantity of mix grade being generated upon mixing with Grade 1 being at the left and lowest
quantity of mix grade being generated upon mixing with Grade 1 being at the right.

After having analysed the value added grades and non-value added Grade 1 and their
respective Grade 2 due to which mix grade is being generated, we can now be in a position
to take a decisive step which will reduce the quantity of mix grades being generated and
extra resource utilisation being done to produce the coils bearing the actual requirement of
the clients.

Based on a survey conducted amongst JSW employees, following are the

findings:

59
Here 12 respondents fall in the age group 25 – 35, 32 respondents fall in the age group 35 -
35 and 11 respondents fall in the Above 45 age group.

Here 44 respondents are Male and 5 respondents are Female.

60
Here there is 1 respondent who has worked for 4 years, 2 respondents who have
worked for 5 years, 1 respondent who has worked for 6 years, 1 respondent who
has worked for 7 years, 5 respondents who have worked for 8 years, 5
respondents who have worked for 9 years, 3 respondents who have worked for
10 years, 8 respondents who have worked for 11 years, 3 respondents who have
worked for 12 years, 4 respondents who have worked for 13 years, 3
respondents who have worked for 14 years, 1 respondent who has worked for
16 years, 1 respondent who has worked for 19 years, 1 respondent who has
worked for 22 years, 1 respondent who has worked for 23 years, 1 respondent
who has worked for 24 years, 4 respondents who have worked for 25 years, 1
respondent who has worked for 27 years and 3 respondents who have worked
for 30 years.

61
Here 22 respondents belong to PPC department and 27 belong to Logistics
department.

Here 1 respondent has rated as 3, 10 respondents have rated as 4 and 12 respondents have
rated as 5.

62
Here 23 respondents have judged based on quality of work, 17 respondents have judged
based on Presentation and 21 respondents have judged based on time in which the project
was completed.

Here 8 respondents have rated as 4 and 18 respondents have rated as 5.

63
Here 26 respondents have judged based on quality of work, 21 respondents have
judged based on Presentation and 24 respondents have judged based on Time in which
the project was completed.

CHAPTER 9: Conclusion

I got to understand the steel production process happening in JSW Steel Ltd., Dolvi Works.
I also got an opportunity to have glimpses of how all the departments have been deployed in
an integrated environment like SAP and how continuous improvements are still in process
in order to increase the coordination thereby minimising the cost and increasing the
production rate efficiently and effectively.

The exposure I have got during my internship at JSW Steel Ltd., Dolvi works was absolutely
remarkable. The PPC department in which I was conducting my research was very helpful.
Along with this I got an opportunity to understand the how the flow in PPC department goes,
how the planning is done for the production by coordinating

64
with the marketing team, the production team and the quality assurance team and how the
dispatch of the produced materials is being scheduled.

Along with this I also understood the NCO generation that was one of the major problems
being faced by the PPC department which led to generation of unplanned orders.

Apart from all this, the industry analysis of JSW Steel Ltd., Dolvi Works helped me get a
deeper understanding of each of the verticals of JSW Group, the current facilities of JSW
Group, evolution of JSW Steel Ltd., Dolvi Works along with the analysis of JSW Steel Ltd.,
Dolvi Works being done using Michael Porter’s five forces that gave a clear picture of the
powers of the buyer and supplier as well as helped to identify the threats associated with
competition, new entry and substitutes.

Along with this, the history, hierarchy, mission, vision, purpose and core values of the JSW
Group have also been understood through this project.

SWOT analysis was also done for JSW Steel Ltd., Dolvi Works which gives us an idea of
the strengths that can be improved and used to increase the production, the weaknesses that
could be worked on that can further help minimise the cost, the opportunities that could be
availed for an all-round development and the threats that could be kept in mind in order to
avoid any sorts of losses.

After having done a thorough study about JSW Steel Works, Dolvi Ltd., the competitor’s
profile was yet another important thing to get some insights on since, it is always advised to
have some information on the functioning of our competitor which might help us understand
what we have been and are doing wrong so that we can always get to gain something which
has ever been implemented by us thereby helping us to improve on our mistakes and reach
newer heights of business. In this we compared two of the most well-known competitors
namely Tata Steel and Steel Authority of India with JSW Steel and got some useful insights
that showed the how close the competition is between all the three players in the Steel
industry.

Coming to data analysis and interpretation part, analysis of sample data for 3 months
(January’18 to March’18) was done and we have been able to devise a grade wise matrix for
different grades (refer page 44 to 46 for value added grades) and (refer page 47 to 48 for
non-value-added grades)

65
This can be used as a guidance tool for schedulers/planners to plan for casting/rolling of a
particular grade X while they need to plan the mixing of two grades during the clubbing for
a sequence at caster as per the order availability & priority and they have options available
with grade a,b,c,d,c,e etc., then they can avoid the clubbing with grade with which mixing
has resulted in highest % NCO and may opt for the lowest one provided they have orders
and priority.

Suppose we take a non-value added Grade 1 such as JDHST29DCN. As it can be seen,

JDHCG04BCN is the maximum contributor for generation of mix grade NCO amongst
Grade 2 which accounts to 28 % out of the total mix grade NCO being generated whereas
JDHCR04SPN and JDHSH41AMN are the least contributors for generation of mix grade
NCO and account to only 6 % and 5 % of the total mix grade NCO being generated
respectively. Hence grades JDHCR04SPN and JDHSH41AMN are the most viable options
to minimise the mix grade NCO being generated from JDHST29DCN.

The matrices generated for various value-added grades and non-value added grades are based
on data for three months (January’18 to March’18). Larger the data better will be results.

CHAPTER 10: Recommendation

Based on the observations that were done from the analysis and the conclusion derived from
it, some recommendations or suggestive actions were derived that may help in minimising
the mix grade NCO being generated which would help increase the production by making
optimum utilisation of resources and minimising the cost.

During the sequence planning itself all possible efforts (proactive order request to marketing,
clubbing of grades, MOQ > 2heats in one grade) are taken to avoid
/minimize the two non-compatible grades.

Communicate with marketing required NCO quantity in respective grades.

Follow mix grade matrix and make sure that coils are rolled only after consulting with
Quality Assurance department shift in charge.

66
Value added grades are planned in increasing order of micro alloy addition.

Last coil of previous heat and first coil of next heat which are mix grade should be short
length if having major difference in heat chemistry.

Last coil of previous heat and first coil of next heat which are mix grade should be full
length if having minor difference in heat chemistry.

Continuous monitoring of rolling and heat chemistry should be done in order to check if
there is any deviation from the plan and provide alternative grades for casting.

67
 Operations in PPC and Logistics at JSW

Chapter 11: References

[1]. http://www.jsw.in/

[2]. http://www.mbaskool.com/brandguide/industrial-products-and-
chemicals/4615_jsw_steel.html

[3]. https://www.guru99.com/intoduction-sap-pp.html

[4]. https://wiki2.org/en/Manufacturing_execution_system

[5]. https://www.financialexpress.com/industry/our-strategy-is-to-look-at-inorganic-
growth/ 914713

[6]. https://www.thehindubusinessline.com/companies/SAIL-gears-up-to-catch-up-
with-Tata-JSW-Steel-in-auto-white-goods-segment/article20368647.ece

[7]. https://www.moneycontrol.com/news/business/tata-steel-vs-jsw-steel-a-cat-
mouse-race-to-the-top-2573135.html

[8]. https://en.wikipedia.org/wiki/Tata_Steel

[9]. https://www.thebalancesmb.com/logistics-functions-in-sap-business-software-
2221341

[10]. https://en.wikipedia.org/wiki/Steel_Authority_of_India

[11]. NCO report JSW Steel Ltd., Dolvi Works for the financial years 2016-2017 and
2017-2018

Chapter 12: Annexure

Primary Research conducted in JSW:

Operation in PPC and Logistics at JSW

 Operations in PPC and Logistics at JSW

I am a student pursuing Masters of Management Studies, Mumbai University. As a part of

my final semester, I am working on my Functional Research project titled " Operation in
PPC and Logistics at JSW ".

Request you to please take a few minutes and fill this survey as it shall help me get a
feedback for the research I had already conducted as a part of my summer internship
project in JSW.
Operations in PPC and Logistics at JSW
Operations in PPC and Logistics at JSW
Part - 2 Logistics
Chapter 1: Introduction

Logistics:

Logistics is generally the detailed organization and implementation of a complex operation.

In a general business sense, logistics is the management of the flow of things between the
point of origin and the point of consumption in order to meet requirements of customers or
corporations. The resources managed in logistics can include physical items such as food,
materials, animals, equipment, and liquids; as well as intangible items, such as time and
information. The logistics of physical items usually involves the integration of information
flow, materials handling, production, packaging, inventory, transportation, warehousing,
and often security.

In military science, logistics is concerned with maintaining army supply lines while
disrupting those of the enemy, since an armed force without resources and transportation is
defenceless. Military logistics was already practiced in the ancient world and as modern
military have a significant need for logistics solutions, advanced implementations have been
developed. In military logistics, logistics officers manage how and when to move resources
to the places they are needed.

Logistics management is the part of supply chain management that plans, implements, and
controls the efficient, effective forward, and reverse flow and storage of goods, services, and
related information between the point of origin and the point of consumption in order to meet
customer's requirements. The complexity of logistics can be modelled, analysed, visualized,
and optimized by dedicated simulation software. The minimization of the use of resources
is a common motivation in all logistics fields. A professional working in the field of logistics
management is called a logistician.

Logistics is broadly divided into two categories as follows:

Inbound logistics is one of the primary processes of logistics concentrating on purchasing

and arranging the inbound movement of materials, parts, or unfinished inventory from
suppliers to manufacturing or assembly plants, warehouses, or retail stores.

68
Outbound logistics is the process related to the storage and movement of the final product
and the related information flows from the end of the production line to the end user.

Given the services performed by logisticians, the main fields of logistics can be broken down
as follows:

Procurement logistics

Distribution logistics

After-sales logistics

Disposal logistics Reverse

logistics Green logistics

Global logistics

Domestics’ logistics

Concierge Service RAM

logistics

Asset Control Logistics POS

Material Logistics Emergency

Logistics Production Logistics

Construction Logistics Capital

Project Logistics Digital

Logistics

Loading of a thermal oxidizer at the point of origin en route to a manufacturing plant

Procurement logistics consists of activities such as market research, requirements planning,

make-or-buy decisions, supplier management, ordering, and order

69
controlling. The targets in procurement logistics might be contradictory: maximizing
efficiency by concentrating on core competences, outsourcing while maintaining the
autonomy of the company, or minimizing procurement costs while maximizing security
within the supply process.

Advance Logistics consists of the activities required to set up or establish a plan for logistics
activities to occur.

Distribution logistics has, as main tasks, the delivery of the finished products to the customer.
It consists of order processing, warehousing, and transportation. Distribution logistics is
necessary because the time, place, and quantity of production differ with the time, place, and
quantity of consumption.

Disposal logistics has as its main function to reduce logistics cost(s) and enhance service(s)
related to the disposal of waste produced during the operation of a business.

Reverse logistics denotes all those operations related to the reuse of products and materials.
The reverse logistics process includes the management and the sale of surpluses, as well as
products being returned to vendors from buyers. Reverse logistics stands for all operations
related to the reuse of products and materials. It is "the process of planning, implementing,
and controlling the efficient, cost effective flow of raw materials, in-process inventory,
finished goods and related information from the point of consumption to the point of origin
for the purpose of recapturing value or proper disposal. More precisely, reverse logistics is
the process of moving goods from their typical final destination for the purpose of capturing
value, or proper disposal. The opposite of reverse logistics is forward logistics."

Green Logistics describes all attempts to measure and minimize the ecological impact of
logistics activities. This includes all activities of the forward and reverse flows. This can be
achieved through intermodal freight transport, path optimization, vehicle saturation and city
logistics.

RAM Logistics (see also logistic engineering) combines both business logistics and military
logistics since it is concerned with highly complicated technological systems for which
Reliability, Availability and Maintainability are essential, ex: weapon systems and military
supercomputers.

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 Operations in PPC and Logistics at JSW

Asset Control Logistics: companies in the retail channels, both organized retailers and
suppliers, often deploy assets required for the display, preservation, promotion of their
products. Some examples are refrigerators, stands, display monitors, seasonal equipment,
poster stands & frames.

A forklift truck loads a pallet of humanitarian aid to Pakistan on board a C-17 aircraft,
following devastating floods in the country in 2010.

Emergency logistics (or Humanitarian Logistics) is a term used by the logistics, supply
chain, and manufacturing industries to denote specific time-critical modes of transport used
to move goods or objects rapidly in the event of an emergency. The reason for enlisting
emergency logistics services could be a production delay or anticipated production delay, or
an urgent need for specialized equipment to prevent events such as aircraft being grounded
(also known as "aircraft on ground"—AOG), ships being delayed, or telecommunications
failure. Humanitarian logistics involves governments, the military, aid agencies, donors,
non-governmental organizations and emergency logistics services are typically sourced from
a specialist provider.

The term production logistics describes logistic processes within a value adding system (ex:
factory or a mine). Production logistics aims to ensure that each machine and workstation
receives the right product in the right quantity and quality at the right time. The concern is
with production, testing, transportation, storage and supply. Production logistics can operate
in existing as well as new plants: since manufacturing in an existing plant is a constantly
changing process, machines are exchanged and new ones added, which gives the opportunity
to improve the production logistics system accordingly. Production logistics provides the
means to achieve customer response and capital efficiency. Production logistics becomes
more important with decreasing batch sizes. In many industries (e.g. mobile phones), the
short-term goal is a batch size of one, allowing even a single customer's demand to be
fulfilled efficiently. Track and tracing, which is an essential part of production logistics due
to product safety and reliability issues, is also gaining importance, especially in the
automotive and medical industries.

Construction Logistics is known to mankind since ancient times. As the various human
civilizations tried to build the best possible works of construction for living
and protection. Now the construction logistics emerged as vital part of construction.

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In the past few years’ construction logistics has emerged as a different field of knowledge
and study within the subject of supply chain management and logistics.

Digital logistics is driven by a new generation of web-based, enterprise logistics applications

that enable collaboration and optimization, leveraging a central logistics information
backbone that provides visibility across the enterprise and extended supply chain.

Logistics Management

Logistics management is a supply chain management component that is used to meet

customer demands through the planning, control and implementation of the effective
movement and storage of related information, goods and services from origin to destination.
Logistics management helps companies reduce expenses and enhance customer service.

The logistics management process begins with raw material accumulation to the final stage
of delivering goods to the destination.

By adhering to customer needs and industry standards, logistics management facilitates

process strategy, planning and implementation.

Logistics management involves numerous elements, including:

Selecting appropriate vendors with the ability to provide transportation facilities Choosing the

most effective routes for transportation

Discovering the most competent delivery method

Using software and IT resources to proficiently handle related processes

In logistics management, unwise decisions create multiple issues. For example, deliveries
that fail or are delayed lead to buyer dissatisfaction. Damage of goods due to careless
transportation is another potential issue. Poor logistics planning gradually increases
expenses, and issues may arise from the implementation of ineffective logistics software.
Most of these problems occur due to improper decisions related to

72
outsourcing, such as selecting the wrong vendor or carrying out delivery tasks without
sufficient resources.

To resolve these issues, organizations should implement best logistic management practices.
Companies should focus on collaboration rather than competition. Good collaboration
among transportation providers, buyers and vendors helps reduce expenses. An efficient and
safe transportation provider is also vital to business success.

After all this explanation to what logistics is and what logistics management is all about, the
project that was undertaken by me in JSW Steel Ltd., Dolvi Works was a study of the
outbound logistics there and in that specifically, rake management. A thorough detail of the
processes and other things will be seen in the upcoming chapters.

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Chapter 2: Aims and objectives

In this case we are concentrating strictly on outbound logistics. The aim of studying the rake
management system that is being undertaken by JSW Steel Ltd., Dolvi Works is to simply
gain knowledge and to get a feel of how logistics is actually happening at JSW Steel Ltd.,
Dolvi Works, what are the main components involved in logistics, which are the departments
that are involved in the logistics process, etc.

The objective of our study includes understanding the process and functioning of outbound
logistics being undertaken by JSW Steel Ltd., Dolvi Works. Understanding the objectives of
the outbound logistics would give us a better idea of what is currently being done and what
needs to be done in the logistics department. Some of the objectives that are generally being
observed are as follows:

• Process orders only for customers who are authorized for credit.

Risk involved: Incomplete, untimely, or inaccurate credit information

Focus point: Credit authorization systems that provide accurate and timely customer
information regarding approved credit limits, current balances due, age of receivable
balance, and other pertinent information.

• Process orders accurately and expeditiously

Risk involved: Inaccurate or untimely pricing and inventory information Untimely processing

of order information

Customer order information may be unclear, inaccurate, or

incomplete

Focus point: Use current pricing and inventory information.

Pre-number orders forms, and periodically follow up on those not processed in a reasonable
time frame.

Verify customer order information with appropriate

marketing/sales personnel. Contact customer if necessary.

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• Process only valid customer orders

Risk involved: Customer orders may not be authorized

Focus point: Verify appropriate marketing/sales personnel approved customer order.

• Process all approved orders

Risk involved: Order documentation is lost

Focus point: Pre-number order forms. Investigate missing documents.

• Protect products from damage

Risk involved: Employee carelessness

Handling and storage procedures, including storage containers, facilities and maintenance,
are inappropriate for the nature of the products

Employees are not familiar with handling and storage

requirements or procedures

Focus point: Monitor damage caused by employee carelessness (performance indicator).

Store products in containers and facilities designed with consideration for product
features and legal and regulatory requirements.

Create appropriate maintenance procedures and schedules for the nature of the storage
facility.

Communicate handling and storage policies and procedures clearly to store’s

employees.

Monitor compliance with handling and storage policies and procedures (performance
indicator).

• Store products to facilitate timely order processing

Risk involved: Improper organization of storage facility Insufficient storage

capacity

75
Focus point: Design and maintain efficient warehouse layout to facilitate order fulfilment.

Minimize product inventory while enabling timely order

fulfilment.

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77
78
Identify the appropriate number and location of warehouses.

• Materials are handled and stored in compliance with applicable laws and
regulations

Risk involved: Employees may not be aware of applicable laws and regulations

Inappropriate handling and storage policies and procedures

Focus point: Legal counsels, or other qualified personnel, provide information regarding
applicable laws and regulations.

Periodic training regarding legal and regulatory requirements.

Review of handling and storage procedures by legal counsel or other qualified personnel.

Monitor accidents or problems due to inappropriate handling or storage policies or

procedures (performance indicator).

• Maintain complete and accurate records of products stored and available for
shipment

Risk involved: Product moved into or out of storage may not be documented or recorded

Product may be moved into or out of storage without proper

authorization

Focus point: Product transfer documents are required for movements of product into or out
of storage. Such documents are pre-numbered, and missing documents are investigated.

Physical security measures to prevent unauthorized addition to or removal of product from

storage. Periodically count product in storage and

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reconcile to perpetual records. Investigate differences between physical count and
accounting records.

Periodically count product in storage and reconcile to perpetual records. Investigate

differences between physical count and accounting records

• Obtain proper products and quantities from storage

Risk involved: Improper products or improper quantities are retrieved from storage

Product is unavailable in sufficient quantity

Focus point: Compare products and quantities retrieved from storage with the customer order
and/or product requisition.

Maintain perpetual product inventory records. Notify operations or other appropriate

personnel when inventory drops below a predetermined level.

• Ensure product is packed properly to minimize damage

Risk involved: Packing materials, containers or procedures are inappropriate for the nature
of the product or method of shipment

Focus point: Use packing materials, containers, or procedures that were designed with
consideration to the nature of the product and method of shipment.

• Ship only those products that are authorized for shipment

Risk involved: Incomplete or inaccurate information from order processing

Unordered or unauthorized products are included in customer shipment

Focus point: Compare documents authorizing product shipment with customer

order

Compare products to customer order before shipment.

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Monitor customer returns or billing disputes relating to products delivered but not ordered
(performance indicator).

• Deliver products in the most efficient manner

Risk involved: Disruption of normal shipping channels Inaccurate or

incomplete shipping documents Use of inefficient shipping methods

Focus point: Identify alternative shipping arrangements.

Review shipping documents for completeness and compare to customer order for accuracy
before shipment.

Periodically review shipping alternatives and identify the most efficient alternative.

• All shipments are accurately documented, and such documentation is

forwarded to Accounts Receivable on a timely basis

Risk involved: Incorrect information is entered on shipping documentation Shipping

documents are lost

Focus point: Compare shipping document information with customer order information
before shipment.

Independent verification of shipping document information before shipment.

Pre-number shipping documents, and investigate missing

documents.

• Ensure timely shipment of customer order

Risk involved: Order or shipping documentation may be lost

Focus point: Pre-number order and shipping documents; investigate missing documents.

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Chapter 3: Requirement gathering

For the study of logistics, it was important to know the departments involved, the
components involved and finally the functioning of the logistics department. Inputs were
gathered for the study of the above mentioned things with the help of the employees of
logistics department. All the departments are involved in the functioning of the logistics
department were visited to get an in-depth understanding of the process. There are two modes
of transportation for the products to either reach the client or reach the port for export. These
two modes are roads and railways. Here we are strictly concentrating on just the HR coils.
Through roads, we are using trucks wherein a single HR coil of an average weight of 20
tonnes is occupied by one truck. Let us consider the dispatch of a coil through roads. Now
through roads, a coil can directly be transported to the client or it may be transported to a
depot from where all the coils from that depot are distributed to the nearby clients or the coil
is reached through the roads to the port from where the coil is then taken ahead for the
purpose of export. Same process can also be applied for railways. In this project, we are
specifically concerned about the rake management system that has been undertaken by JSW
Steel Ltd., Dolvi Works. Here knowing the process flow was very important because
logistics plays an important role in any manufacturing organisation since it is responsible for
the dispatch of the products that are manufactured at the earliest along with following the
safety norms. For this all the safety norms were also studied along with the documentation
that is involved for the logistics department. Documentation here simply means the invoice
that is generated during the dispatch. The amounts of copies that are present within an
invoice were also studied closely. The entire requirement gathering was successfully done
in order to ensure that the logistics process undertaken by JSW Steel Ltd., Dolvi Works was
understood because whichever organisation is chosen, the process flow for logistics will
always remain the same. Some terminologies may differ but otherwise the process flow will
remain moreover the same for almost all the manufacturing organisations.

An SOP of the road outbound logistics would look as follows:

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 Marketing team confirms order and releases Sales Order and Delivery Order

Production done

Coil yard management

Mapping done by logistics department

Coil mapping forwarded to coil yard

Master data of vehicle is referred

Gate entry is done

Gate entry number is generated

Tare weight is done

Yard management arranges for coil loading

Gross weight is done

Detail check is done wherein party name is cross checked, weight is cross checked and
validation is done of the coil with respect the party

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 Operations in PPC and Logistics at JSW

Invoicing is done

Printing of invoice is done

Gate out

The SOP for rake outbound logistics will be explained in the further part of the report.

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Chapter 4: Existing system

The current system of road or railways outbound logistics that is being followed consists of
the invoicing process. The road logistics consists of the invoice along with an LR which is
known as the Lorry Receipt. Invoice consists of four copies, namely, buyer, transporter,
assesse and extra copy. The LR on the other hand consists of consignor, consignee,
transporter, driver and extra copy. There is also something called as a TC (Test Certificate)
which specifies the composition of the HR coil and the proportion of all elements present in
the coil. Now the buyer and extra copy of the invoice is used by the marketing department
and this is these are the copies which actually go to customer. The consignee and consignor
copy of the LR are also forwarded to the marketing department. For the rake management
process undertaken by JSW Steel Ltd., Dolvi Works for the dispatch of finished goods and
raw materials the details are as follows:

Dispatch is planned using the quantity that has been produced. Entire set of wagons is known
as a rake. There are two types of rakes based on the number of wagons present in a rake. If
there are 42 to 45 wagons in a rake, it is known as Conquered rake and if there are 59 wagons
in a rake, it is known as Boxon rake. Conquered rakes are mostly used for dispatch of coils
while Boxon rakes are used for dispatch of raw materials also known as bulk materials along
with coils. For the recent past, there has been no demand for bulk materials. Also the number
of wagons in a rake that are currently demanded is 43. At the rate of 3 coils per wagon the
minimum number of coils is 126 while the maximum number of coils is 177. A wagon can
also be further categorized into three types, namely, open box wagon also known as BRN
wagon, closed box wagon also known as BOST wagon and BFNS wagon. The loading of
coils for open box wagon and closed box wagon happens differently. The BFNS and BRN
wagon are the same in appearance. The only difference is the placement of coils in both
types of wagons. The usage of BFNS wagons is advantageous because loading of coils is
made easy; support needed for coils is less and capacity of coils in tonnage required is also
less. The loading time that is allowed for loading of coils in a rake consisting of only BFNS
or BRN wagons is 6 hours while that for the BOST only or a mix of BOST, BRN and BFNS
is 7 hours. The loading time for coils in a rake is 7 hours

85
while that for bulk materials is 5 hours. The rake is being booked from Central Railways
with the help of FOIS which is known as Freight Operation Information System provided by
the Central Railway. Through the FOIS they develop an indent which is a requirement for
rake. After the indent confirmation, E-demand is received. E-demand is nothing but an
electronic demand which contains general information of the rake that is arriving. It consists
of wagon numbers, destination, tonnage that it will carry, etc. On the basis of E-demand,
Commercial department develops a Railway Receipt. Once the rake arrival time is known,
it is mandatory to check that more than 50 % of the coils from the coil yard have been shifted
to the rake area. Till the arrival of the rake, we are in constant coordination with the station
master to carry out all the other activities required for reducing the time and efforts taken for
loading the coils on to the rake on the arrival of the rake. The tare weight report comes along
with the rake. Once the rake arrives and the engine is cut off the placement report is
generated. After this the loading of coils begins. During loading, 2 people from the Central
Railway known as Carriage and Wagon staff check for safety of the placement of coils being
done in the rake along with the Commercial department. Once the entire coil loading is done,
the invoices are generated. Just before the release of the rake, a staff from the Central
Railway team checks for the air pressure of the siding for our rake. After all is ensured to be
perfectly alright, the rake is finally dispatched to its designated location. Also the freight is
split into fixed and variable. The freight for each wagon is fixed and the variable part depends
on the per kilometre distance from our location to the client’s nearby location. An in-depth
procedure being followed is shown in the Methodology section of this report further.

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Chapter 5: Problem statement

The ultimate goal of rake management is to reduce the time taken for loading of coils, while
taking into account all the factors involved that is constant coordination with the station
master, mapping of coils, shifting of coils, checking of status of coil and rake safety, invoice
generation, etc. along with ensuring that there is no idle freight being dispatched as whether
the wagon is filled with 3 coils or 2 coils, the charges will be based on the actual capacity
of the wagon rather than the capacity with which the wagon is currently loaded while making
sure that the coil that is being loaded has an age of at least 30 hours (which is the time
required for the coil to cool down). All this is achieved very easily with the current procedure
that is being followed by JSW Steel Ltd., Dolvi Works which can be seen in the Methodology
section below.

Chapter 6: Scope of the project

The scope of this project is limited to the outbound logistics rake management of JSW Steel
Ltd., Dolvi Works. The study was done for the rake management being done for a single
day.

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Chapter 7: Methodology

1. Allocation of Material for Rake Dispatches

• Logistics should coordinate with PPC to plan the production as per the
destination and carrying capacity of wagon.
• Material produced for rake dispatches should be allocated in SAP by
Logistics.

2. Shifting of Coils/ Loading / Lashing / Packing of coils

• Allocated material should be packed before transferring to Rail yard.

Up to 4 mm thickness: 2 Eye strap, 2 circum strap with ID ring

Above 4 mm thickness: 2 Eye strap, 2 circum strap without ID ring

• Allocated material should be shifted from coil yard to railway siding and
stacked before the arrival of rake.
• Coil should be loaded on coil carrying stand in shifting trailer.

3. Weighment Tare Wt. / Gross Wt. and Invoicing.

• For JSW group companies, shifting is to be done without weighment.

• In case of other than JSW group companies, tare wt. of shifting trailer
should be done once in 4 hrs. during the start of the shifting of material for one rake.
Weighbridge weight is to be considered for loading / invoicing.
• After loading of coil, Gross Weighment should be done and then coil
should be shifted to railway siding

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4. Material Handling at Railway Siding

• When the material reaches the railway siding, contractor should unload the
material from trailors using forklift/ mobile crane. During coil handling rubber pads or
wooden blocks should be used at the contact points of sling and coil surface so as to secure
the material from edge damages.

• For speedy loading with least damage to the coils, they are to be preferably
loaded in eye horizontal position as per railway approved safety norms. The same to be
followed in case if coils are required to be loaded in eye vertical position,

Note: In case of no wall at the end of wagon, coil is to be loaded in tilt fashion.

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5. Packaging and Lashing

a. Coils should be placed on wagon with wooden packing on sides of coils.

Also welding of steel channels / angles shall be done on the wagon surface around the
circumference of the coil to avoid misplacement of material during transit.

90
b. Packing of material with 1.27 mm strap as per wagon type to be ensured
by contractor.

c.

6. Risk Assessment

91
Checklist:

• Is the sling type and configuration suitable for the load?

• Are the slings in good condition?
• The mobile crane shall only be operated on a firm, level ground that
adequately supports the weight of the crane and loads.
• The weight of the load shall not exceed the Safe Working Load.
• When moving uphill or downhill, the boom angle shall be adjusted to the
safe working condition.
• After completion of loading and lashing activity, JSW and Railway C and
W staff should check for proper packing and lashing of coil.

7. Placement of Indent / Rake arrival

• Indent to be placed as per plan based on loadable stock

• Coils should complete minimum 36 hrs. before loading starts.
• Rail yard shift in charge contacts JSWD station master to know about
arrival of rake.
• After placement of rake, engine detaches wagons and move towards
another siding of central railway.
• JSWD Station master given actual arrival / placement time and then
loading starts.

8. Railways memos

• Placement memo.
• Tare Weight memo.
• Vehicle Guidelines memo.
• Removal memo.

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a) Placement memo

• Details to be filled will be as per below

Sr No Particulars Details as per Remark

1 Rake No As per JSW Rake no.

YTD

2 Rest all details As per Central

Railway

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 Below wagons details to be filled in placement memo.

Note: As wagon received empty, in remark column, type empty.

b) Tare weight memo

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• In Tare weight all fields will be same like placement memo
except below items.

Total weight – Total quantity (MT) loaded in particular wagon as per JSW Steel Ltd
production weight / weighbridge weight.

Remark – Total no. of articles loaded.

Loaded Wagon Nos. of wagon loaded

Brake van No. ( For Railway guard )

Defective Wagon In case rejected wagon.

Total Total of above

Defective wagon - Wagon which is not fit to load, hence unfit clearance given by
railway staff and shall not be loaded.

c) Vehicle Guideline memo

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All fields are to be filled just like Tare weight memo and remark to be written as “RAKE
TO BE WEIGHMENT AT NEAREST WEIGHBRIDGE – JSWD”’

d) Removal memo.

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• In removal memo all fields are same except below items

HR coils – Total no. of HR coils loaded in particular wagon. Below details are to be filled

after confirming from railway staff.

Rake No :-

Placement received Date and Time :-

Loading Completed Date and Time (JSWD) :-

Lashing & Packing & Welding Date and Time:-

Removal given time to train operator :-

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 By Whom Consigned :-

To whom Consigned :-

Description of goods :-

Destination :-

• Above memos are to be filled correctly, stamp and signed. To be handed to

Central Railway staff as below

Sr Railway Memo No. of No. of Copies / Remark

No Department
Copies

1 Placement 4 01 copies with After placement of rake

Railway commercial prepare and hand
staff. immediately to concerned
department.
01 copy with at
JSWD station master.

01 copy with JSW

steel ltd.

2 Tare Weight 3 02copies with After completing loading

Railway commercial same is to be handed over to
staff. concerned department

01 copy with at
JSWD station

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 master.

3 Vehicle Guidelines 1 Copy with JSWD After completing loading

station master. same is to be handed over to
concerned department

4 Removal 3 01 copy with After getting removal time

Railway commercial from railway , same is to be
staff. prepare and hand to
concerned department
01 copy with at
immediately.
JSWD station master.

01copy with JSW

steel ltd.

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Chapter 8: Conclusion

Thus I have got a wonderful opportunity to understand each and every process related to the
outbound logistics rake being undertaken by JSW Steel Ltd., Dolvi Works. In this, I got an
idea of each and every aspect related to logistics right from the sales order being created
upon the confirmation of order from client to the finished goods being delivered to the client.
I got a live exposure to watching the loading of coils being done into the rake and the
precautionary measures being taken to ensure the safety of the coils that would be delivered
to the client, adhering to the time being allotted for loading depending on the type of wagons
present in a rake. I got to closely observe the each and every part of the rake management
process with detailed explanation to the invoicing and the types of documents involved in
each invoice along with the concern departments dealing with the copies of invoice. PPE
(Personal Protective Equipment) was being used by the welding team that are responsible
for the welding of support to the each of the coils being place within a wagon in a rake. Thus
a thorough understanding of the outbound logistics rake management system at JSW Steel
Ltd., Dolvi Works was done which gave a great industrial experience.

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Chapter 9: References

[1]. https://en.wikipedia.org/wiki/Logistics

[2]. https://www.techopedia.com/definition/13984/logistics-management

[3]. http://cerasis.com/2017/05/12/effective-logistics-management/

[4]. http://studylib.net/doc/7887526/control-objectives-and-activities--outbound- logistics

[5]. Rake outbound logistics report for the financial year 2017-2018

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