OPERATIONS MANGEMENT

CEMENT INDUSTRY

SUBMITTED TO: DR. RANJITH P V

GROUP 3 -MHR
HARSIMRAT KAUR PANNU (20MBAR0536)
KARANBIR SINGH KHAIRA(20MBAR0555)
AISHWARYA RATHOD (20MBAR0508)
FURQAAN TAHIR (20MBAR0185)
GOUTHAM J (20MBAR0210)
 (Aishwarya)

CEMENT INDUSTRY

• Cement production reached 329 million tonnes in 2020 and is

projected to reach 381 MT by 2022.
• In the next 10 years, India could become the main exporter of clinker
and cement to the Middle East, Africa and other developing nations of
the world.
 (Aishwarya)

CEMENT INDUSTRY
• For retail customers cement is a push market industry.
• Sales Price is determined based on demand and supply.
• Cement is a bulky material hence handling this bulky material
takes a lot of effort.
 (Furqaan)

RECENT TRENDS
• The Indian cement industry is likely to add 80 million tonnes capacity
by 2024, the highest since the last 10 years, driven by increasing
spending on housing and infrastructure activities.
• A number of foreign players are also expected to enter the cement
sector owing to the profit margins and steady demand.
• The government established a council of 25 members for the cement
industry to reduce waste, achieve maximum production, enhance
quality, reduce costs and encourage standardisation of products.
 (Furqaan)

MAIN COMPONENTS

• RAW MATERIALS: Limestone, coal, sand, gypsum and clay

• MACHINERY: Crushers, Grinders, Kilns, Blending and

storage silos, Separators , Crushers, Clinkers,

conveyors and Coolers.

• EQUIPMENTS: Packaging equipment

 (Karanbir)

MANUFACTURING PROCESS
 (Goutham)

PLANT LAYOUT
 (Goutham)

CAPACITY UTILISATION
Capacity planning is the process of determining the production
capacity needed by an organization to meet changing demands
for its products.

CAPACITY DECISIONS AFFECT

• The production lead time
• Customer responsiveness
• Operating cost
• Company’s ability to compete
• Inadequate capacity planning can lead to the loss of the
customer
• Excess capacity can drain the company's resources
 (Harsimrat)

STRATEGIES

LONG-TERM CAPACITY SHORT-TERM CAPACITY

STRATEGIES STRATEGIES

Long range capacity The adjustments to be

requirements are dependent on required depend upon the
conversion process like
marketing plans,
whether it is capital or
product development
labour intensive.
and life- cycle of
the product.

EXAMPLES
EXAMPLES Inventories
Multiple products Employment level
Phasing out capacity Backlog
 (Harsimrat)

SUGGESTIONS
• Using a sales mix, Trying to sell high margin products
such as PPC and PSC
• Consistent quality and better branding
• Use of Alternate Fuel
• Access to key raw materials
• Customised ERP
• Associations
 REFERENCES
• https://www.alphainvesco.com/blog/understanding-indian-ce
ment-industry/
• https://www.emerald.com/insight/content/doi/10.1108/JQM
E-07-2013-0047/full/html?fullSc=1
• https://www.indiancementreview.com/environment/challeng
es-facing-the-cement-industry
• https://www.scribd.com/presentation/36899615/Facility-Layo
ut