Académique Documents
Professionnel Documents
Culture Documents
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ACKNOWLEDGEMENT
Signature of student
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CONTENTS
PARTICULRS PAGE
NO.
1. Industry Profile
2. Company Profile
3. Mfg. Process of Cement
4. Supply Chain Management
5. SCM in Ultratech Cement Ltd.
6. Research & Methodology
7. Findings
8. Inventory control at Ultratech Cement
Ltd..
9. Case study & Recommendations
10. Limitations & Bibliography.
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1. Indian cement industry dates back to 1914 - first unit was set-up at Porbandar
with a capacity of 1000 tones
2. Currently, India is ranked second in the world with an installed capacity of 114.2
million tones. Industry estimated at around Rs.18, 000 cores.
3. Current per capita consumption is 85 kgs. As against world standard of 256 kegs
6. Cement sales primarily through a distribution channel. Bulk sales account for <
1percentage of the total cement produced.
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HISTORY
Soren Kristian Toubro, a civil engineer and Henning Holck Larsen, a
chemical engineer, the founder of Larsen & Toubro Company were schoolmates,
later attended the same engineering college in Denmark. After becoming engineers
both joined, the firm named ‘F. L. Smidth & Company’, which was Cement
machine manufacturing Company.
Then both came to India in 1935 to assess the value of various cement-
manufacturing groups on behalf of F. L. Smidth & Company M/S Copenhagen.
These groups later merged into the Associated Cement Companies. After completing
this task, they searched for proper places for F.L. Smidth’s local offices in India.
In the course of their work, both visited India, observed Indian people, and
decided to start their own business here. They started a partnership concern on 1 st
May 1938 and started undertaking repair jobs on the imported machinery like
pasteurizes, butter Chuns, creams separators since supply of these machines were
stopped due to world war II. Gradually, they began to develop and manufacture
several of these and other types of dairy equipments. Very soon, L & T was
acknowledged as a reliable fabricator with high standards.
L & T has entered in Cement business in 1980. L & T established its first
plant at Awarpur, Mahrashtra in 1983. Second plant was established in 1991 at
Hirmi, M.P. Third and largest plant was established in 1996 at Kovaya, Gujarat.
The fourth plant was established at Tadipatri, A.P. in 1998.
GCW’s operations started from 2 April 1996. It became Asia’s largest cement
producing unit with the capacity of 4.2 million-tone per annum.
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GENERAL INFORMATION
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The cement has been in the existence for a long time in the historical
monuments. The evidence of this fact can also be seen in civilization of Mohan-Jo-
Doro.
To define cement, we can say cement is a mixture of these main following raw
materials:
Limestone
Bauxite
Iron ore
Marl
Sweetener
Clay
Mineral Gypsum
In other way, when we add gypsum in clinker and refine it in small particles
it is called cement.
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Types of cement:
Rapid urbanization
THREATS
Slow growth in infrastructure demand
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STRENGTHS
Abundant resources
WEAKNESSES
High cost of energy
Infrastructure
Labour laws
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CHAPTER 1
COMPANY PROFILE
VISION
MISSION
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1.1 INTRODUCTION
Ultra Tech Cement Limited (Formerly known as L & T Cement Ltd.) is a
very well known name in the field of cement. The registered office and head office of
the company is at Mumbai.
This company’s reputation is based on a strong customer orientation, the
technological sophistication that characterizes its products, and an impressive
record of achievements. Ultra Tech has initiated a transformation process to ensure
that it emerges as a knowledge-based premium conglomerate in the shortest possible
time.
Ultra Tech is India’s cement leader, with over 17 Million-Ton p.a. installed
capacity. Each of its plants incorporated state-of-art technology. Ultra Tech Cement
has strong brand equity and commands a price premium in most markets.
Ultra Tech is committed to a high growth trajectory that will deliver
significant value to its customer and shareholders.
Out of six cement plants of Ultra Tech, GCW at Kovaya is the largest cement
plant in Asia. There are two phases in the plant, which are almost identical in layout
and production capacity. The reason for laying such a big plant near a small village
like Kovaya can be justified by the fact that this region is very rich of limestone
resources, which is the chief raw material for cement production. The estimated
resources of limestone mines are enough to supply raw material for next 40 years to
GCW. Ultra Tech is India’s largest manufacturer of premium quality cement. Ultra
Tech has nationwide network of factories, offices and sales centers. Authorized
stockiest dealing in the company’s product line, including cement, is located directly
or indirectly in every district of the country.
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Board of Directors
Mr. Kumar Mangalam Birla, Chairman
Mrs. Rajashree Birla
Mr. R. C. Bhargava
Mr. Y. M. Deosthalee
Mr. A. R. Gandhi
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UNIQUE CHARACTERISTICS
UltraTech cement units are state -of- art technology dry process plants
in corroborating pre-calumniation technology. Advance instruments system;
computerized process control along with online quality control by x-ray ensures
consistently high quality. Process parameter are monitored and controlled by
computer-based systems.
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SUBSIDIARIES
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ORGANISATIONAL STRUCTURE
EVP’S OFFICE
ELECTRICAL INSTRUMENTATION
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CHAPTER 2
MANUFACTURING PROCESS OF
CEMENT AT ULTRATECH CEMENT
LTD., GUJARAT CEMENT WORKS
KOVAYA
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SECTION 1
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INTRODUCTION
L.S. Crusher
Belt Conveyor
L.S. Storage
Additives
Raw Mill
C.F. Silo
Preheater
Kiln
Coolax Cooler
Clinker Storage
Cement Silo
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Packing Plant
SECTION 2
MINES
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2.1 INTRODUCTION:
The lime stone mine, belonging to the Larson & Toubro Cement
Plant is situated 2.5 km. to the west of the plant. On its border, also
lies the mines of the Narmada Cement Plant.
2.2 MINING:
Here in the Kovaya Lime Stone Mine mining is done in two
methods:
1. Conventional Mining
2. Surface Mining
1. CONVENTIONAL MINING
These explosives and detonators are stored is called the magazine.
No civilization is allowed to occur within the periphery of 500 m. Its
walls are made of First of all the top soil is removed with the bulldozer.
This soil is transported to the mines only when ordered, otherwise it is
heaped at the mines.
The drilling machine is used to make holes upto the depth of 10 m
for the assessment of the soil. According to the kind of earth i.e., soft
If the soft earth is charge with an explosive, then the gases pass
through the porous soil and hole is not blasted, hence explosive is
wasted.
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Equipments:
Drilling machines
No -2
Approx Cost - 35 lacs
Make - IBH -10
Power - 210 HP
Dia. of drilling rod- 6 inch
There are 3 rods of 3 m each and hammer of 1.5 m. The hammers
have holes, from which air pressure is exerted so the soil is removed. It
consumes 20 lts of diesel/hr.
Loading Equipments
Hydraulic Excavators - 3
Approx Cost - 85 lacs
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Technical Specification:
1. Type : Single rotor impactor
2. Size : APPM 1822
3. Mass Flow rate : 950 TPH
4. Feed size : 1400x1300x1100 mm
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3. Impactor
The crusher is Impactor Crusher. Crushing is done by impact and
it is a dynamic operation.
The main size reduction is carried out by striking i.e., by impact
of the impeller bars to the crusher feed. The purpose of the breaker
plates arranged inside crusher is to function as deflecting plated. The
material thrown against them is reflected back into crushing
compartment, where it is again hit by the impeller bars, until it leaves
the crusher through slot between rotor and lower edge of breaker plate.
By the impact of material against roller plates and material gets
crushed and then material is supposed to crush by chunking against
each other. The material is ground to the size of 50-60 mm in first phase.
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SECTION 4
RAW MILL
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4.1 INTRODUCTION
Lime stone, clay, Iron ore fed into mill. The chemical composition
of raw materials is controlled by computer calculations based on
analyses of raw materials, as well as actual amount of compositions of
meal in the homogenizing silo.
During transport to mill inlet, magnetic objects are removed by a
magnetic separator, which is mounted over belt conveyor. Metal
detectors are also built in as further protection. If a metal is detected, a
pneumatically operated gate is activated for discharge of a portion of
materials containing metal piece. Another metal detector is placed near
box feeder, where belt stops for manual removal if a metal is detected.
The box feeder at mill inlet operates as a buffer and as an air
sluice to reduce false air intake. After box feeder, raw material drops on
rotary grinding table. Here, they are thrown under rollers by rotary
movement of table, and ground. The grinding table is driven by mill
main motor.
The material might contains some moisture upto 4%. This is dried
by hot kiln exit gases supplied through nozzle ring surrounding
grinding table.
There are nozzles installed in front of rollers and on grinding
table, for use when temperature or grinding process makes it necessary.
Here, in raw mill hot gas blow is taken from kiln string. It helps
material to dry and thus to less moisture content. Yet moisture content
remains 0.5%, which is necessary for easy operation.
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SECTION 5
PREHEATER
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5.1 PREHEATER AND CALCINER:
A decisive factor in heat economy of cement dry production
process was development of preheater. With this, it was possible to
obtain very low exit gas temperature of about 250oC which were not
attainable before. At the L&T, Gujarat cement works the preheater is of
F.L.Smidth Company.
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SECTION 6
KILN
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6.1 INTRODUCTION:
The kiln is 75 m long and it have 4.75 m diameter. The kiln is
supported on three types of 2 rollers each. It rotates at a speed of 3 to 4
rpm. The burning zone temperature in kiln is around 1400-1500 oC.
Pulverized coal is used as fuel in kiln and calciner. The fuel supply rate
to kiln installation is determined on basis of an evaluation of clinker
quality and current status of kiln.
The exit gas analysis is done for evaluation of combustion process.
The smoke gases must not contain any unburnt substances i.e., C or Co.
They may cause fire and also waste latent heat of unburnt part of gases.
A certain surplus air is supplied during the combustion process, because
of inadequate air is supplied, smoke may contain unburnt gases.
Usually refractory lining of kiln is replaced if the thickness of
bricks is reduces to half of its original size due to wear. Hence, kiln shell
must not be overheated. If kiln shell temperature rises above 400-500 oC,
affected area must be cooled by means of fans. There are 14 fans for this
purpose.
In event of a further rise in temperature kiln must be shut down
for a repair of lining. A radiation pyrometer (scanner) has been installed
for purpose of checking condition of kiln lining during operation.
If there are any hot spots observed, kiln motor is run at lowest
speed until temperature of hot spot has been reduced. In burning zone,
the temperature reaches up to 1400oC and clinkerization occurs.
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CHEMICAL PROCEDURE:
During burning and decarbonation of carbonates of Mg and Ca
and removal constitutional water, there are schematically three
consecutive stage of clinker mineral formation. During burning of first
stage up to 990oC all aluminum oxide reacts with lime, generating
monocalcium alluminate silica also starts to combine with lime
generating dicalcium silicate. At this phase of clinker compounds
dicalcium silicate concentration is low.
At second stage of formation, when the material is heated to a
range from 1190oC to 1285oC, monocalcium alluminate formed during
first stage is further saturated with lime reacts with iron oxide creating
dicalcium alluminoferrit which is also called browmmillerite. Formation
of dicalcium silicate which started first stage is now being completed.
At third stage, material reaches temperature above 1285oC, at this
stage of clinker formation, known exothermal effect occurs, which
produces generally 120-150 kcal/kg clinker. The rapid heating of
material by this effect causes clinker to behave in this kiln section
similar to fluidized material, thus increasing the transport velocity of
material which can disturb the regular kiln operation. The partially
fused condition of material permits one part of dicalcium silicate to be
saturated with remainder of the uncombined lime, and thus be
converted to tricalcium silicate. The formation of clinker is completed
with third stage.
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SECTION 7
COOLAX COOLER
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7.1 COOLAX COOLER:
The coolax cooler receives approximately 1450oC. Hot clinker
from rotary kiln, cooling clinker down to a temperature which is
approximately 80oC at a production of 6500 tone/day.
Some of thermal energy contained in clinker is simultaneously
recuperated. The thermal energy is transmitted to cooling air which is
subsequently utilized in kiln and calciner.
Grate-1 is designed as CFG system while grate 2 and 3 are
designed as RFT system. From kiln outlet, clinker drops down onto the
inclined grate plates, latter being alternately stationary and moveable.
CONTROLLED FLOW GRATE
The airstreams to first grates is very powerful so that clinker is
well distributed across the entire width of the grates. This will prevent
clinker from being backed together at very high temperature.
A controlled flow means that air is fed to grates, individually
controlled to smaller units of grate. This is accomplished by means of
ducts, with damper of adjusting flow and hence air pressure, to single
zones.
All cooling air is forced upward through narrow gaps in grates to
clinker bed. High air velocity will prevent dust and small clinker
particles from dropping into gaps of grate while cooler is operating.
As mentioned, air ducts are connected to supporting beams which
are also configured as air ducts.
REDUCED FALL ZONE:
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SECTION 8
CEMENT MILL
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8.1 INTRODUCTION:
Cement clinker and 2-5% raw gypsum is ground together to form
cement. The purpose of grinding mills:-
Creation of larger reactive surface, so that clinker minerals can react
with water.
Controlling of setting properties of cement by adding gypsum.
At L&T, there are four cement mills of capacity 133 t/hr. It
consists of two chambers divided by double wall. This wall allows
particles of 4 mm size to pass through. About 27 % of volume consists of
grinding media. The first chambers has high chrome ball of 60 to 90 mm
diameter whereas second chamber has 15-20 mm diameter high chrome
balls In first chamber grinding takes place due to impact and in second
due to attrition. The product is taken to air separator where coarse
particle are recirculated to mill. The mill converts majority of energy
input into heat. Gypsum is dehydrated at 130oC at high temperature.
Gypsum loses its property as cement setting retarded and becomes false
set cement. Hence temperature inside mill is 70-80 oC. For this water is
injected into hottest part of mill where it evaporates instantly. Water is
carried into mill by compressed air through a simple nozzle which
breaks up water into very small drops; from where material goes to air
separator.
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SECTION 9
PACKING PLANT
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9.1 INTRODUCTION:
A rotary packing machine is used here having 12 filling spouts.
This machine completes 2.5 rotates per minute. Hence filling 30
bags/minutes or 1800 kg/hour.
The spouts are mounted at the bottom of cylindrical container.
The manual work comprises of placing the empty bags on the spouts as
they pass it. Fluidized cement flows into the rotating container. At the
bottom of the container. Certain amount of fluidized air is added to the
cement to increasing flow ability through the filling spouts into the bags.
Each spout has its own weighing device. By the time the spout
finished one rotation 50 kg of cement is filled into the bag. It is dropped
off on the conveyor belt. All the extra cement falls in the hopper from
where it is transported to the cement silo.
In case of transportation by ship, they are carried to the jetty by 4%
less, long belt conveyor; otherwise they are slide down and loaded in to
the trucks standing underneath.
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3.1 INTRODUCTION
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Customers
Product and Material Flow
Retailers
Assembly
/Mfg.
2nd Tier
2nd Tier supplier
supplier
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sense that top management sets goals. However, most respondents have
approached the management of inventory from an operational
perspective. These include deployment strategies (push versus pull),
control policies, determination of the optimal levels of order quantities
and reorder points and setting safety stock levels at each stocking
location. These levels are critical, since they are primary determinants
of customer service levels.
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4.2 OBJECTIVES
To understand the entire network of supply chain and the decision
making process.
To measure the role of technology and its impact on the players
involved in supply chain.
To understand the different processes involved in manufacturing
and assembly.
To analyze the vendor management as the important aspect of
SCM.
To study and analyze the methodology adopted by ULTRATECH
CEMENT LTD.,GUJARAT CEMENT WORKS for inventory
control.
The difficulties if any, which were faced while implementing
different inventory techniques.
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Company
Marketing
Intermediaries End user
Supplier
Market
Competitors
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PRODUCT
PRICE
Company has their own price policy for the Cement and Clinker.
Right now price of one bag of cement is 149 Rs.
PLACE
PROMOTION
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PRICE MIX
Price is the amount of money the consumer has to pay to obtain
the product. Price policy is an important tool for marketing the product.
Cement price depends upon various components like current market,
environment condition, competitor price, company’s objective and cost
of production.
Ultra Tech cement’s prices are considered as premium prices,
based on the good reputation. Company sets its own price and other
players follow.
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In Gujarat, Ultra Tech and Ambuja both secure 24% of total market i.e.
almost half of whole market. Therefore, Ultra Tech and Ambuja both
are at a first position in Gujarat.
After branding and labeling the product is delivered to the dealers and
through them it reaches to the target audience. Above whole description
shows the supply chain of the Ultratech Cement Ltd.
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6.2. PROCESS
Operational designs to make finished product.
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WHAT IS INVENTORY?
To define the process by which assets are identified and maintained in the
Inventory System.
To provide Inventory System access to all necessary personnel (data
entry, update and deletion).
To provide a full range of reports that will satisfy informational
requirements.
To document the Inventory Management System within the Standards
and Procedures Manual.
To provide training to personnel responsible for supporting the Inventory
Management
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Cost
Criticality
Availability.
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If we adopt three level for each criteria such as ABC, SDE, VDE then 27
groups would be formed. It becomes difficult job in practice to follow up
27 groups. Hence two levels for each criteria can be developed using 80-
20 rule i.e. low /high consumption value, critical/non-critical items,
long/short lead time item. This integrated approach resulting in eight
groups is called MUSIC-3D as shown in table:
This approach has a simple method of fixing ideal stock levels for items
as under:
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a) Insurance
b) Critical
c) Non critical
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d) Delegation of power.
So this system can provide proper guidelines and way to design effective
inventory control management to inventory controller.
Categorization of 18000 items was a very long exercise and too when no.
of departments involved were numerous. This problem complicated
further more due to incomplete and ambiguous description of items.
Codification of materials was not equipment based. Hence to identify
place of use of any item itself was very difficult. After proper
identification of spares it could be categories as critical/Non critical/
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Insurance. Volume of work was very large. List of items has to take two
to three times to complete this exercise. But with lot of effort and hard
work this exercise was complete.
Categorization of the items into one of the category was very difficult
task because definition was very subjective and opinion may differ
between one to other person. No one wanted to take risk in declaring
any item as non critical because wrong categorization could lead to
stock out of that item and can cause stoppage of plant and production
losses. Difficulty was also experienced due to incomplete description and
lack of information about place of use. But dedicated efforts of user
department made this exercise success. Continuous review of flags was
also decided.
It was very difficult job to provide lead time to about 18000 items.
Database was also not having authenticity of correct indent date.GRN
with the help of which actual past lead time could be calculated. It was
very difficult to calculate lead time manually from each kardex card
and that too taking care of past 2-3 years data. Further it was not made
clear in recommendation that while calculating lead time and lead time
consumption, minimum lead time is to be considered, maximum lead
time is to be considered or average lead time is to be considered.
Past data about lead time of imported items which were earlier
restricted items might have later included in OGL and lead time might
have decreased or vice versa. Due to liberalization imports become easy,
so there has been drastic cut in lead time. So estimation of correct lead
time was also difficult. Average lead time was taken to start with
continuous efforts of purchase department and EDP department helped
in completing this exercise.
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System implementation
By analyzing past data of lead time or on the basis of lead time provided
by the purchase department for various classes of items long lead time
or short lead time flags should be given to each item. To start with item
with lead time more than six months can be decided as long lead time
items balance items as short lead time items.
Above analysis will enable the inventory controller to identify the items
in eight groups of MUSIC-3D.
For the purpose better control and fixing responsibilities have been
classified into following categories:
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c) Insurance items.
STOCKING POLICY:
Stores and spares for which definite pattern of consumption can not be
established; the requisitioning/indenting may be done by user
department based on the consumption of items and stock levels.
Ideal stock levels may be calculated with the help of following method,
which takes care of criticality, availability and consumption value.
“K” Factor
CONSUMPTION VALUE
The High/Low consumption value can be determined on the basis of 80-
20 rule. Its accounting for about 80% of total yearly consumption,
which are about 20% of number of items can be classified as high
consumption value items and rest 80% of items accounting for 20% of
total consumption value can be termed as low consumption value items.
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AVAILABILITY
It can be defined as High and Low on the basis of location and nature of
industry. It may also be decided by rule of thumb to start with.
CRITICALITY
INVENTORY AN OVERVIEW:-
Inventory, it’s a detailed list of those movable items which are necessary
to manufacture a product to maintain the equipment and machinery in
good working order.
TYPES OF INVENTORIES:-
RAW MATERIAL:- To hold stocks of raw materials, an organization
deploys its primary production sections or process to obtain raw
materials from manufacturers and stockists.
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Control Measures:-
2. The policy for ‘A’ category items should be very low inventory
combined with frequent ordering and / or staggered deliveries
with effective follow up.
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CONCLUSIONS
As we all know that all items are not of equal importance. Some of them
are more important than others. These more important items
constitutes only 20% of the total inventory and results in the 80% of the
total inventory and results in the 20% of total consumption. In this way
pareto is proved in every case same is the case in ULTRATECH
CEMENT LTD., GUJARAT CEMENT WORKS.
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The main 20% of the inventory is formed by the A and B category items
and the major consumables of these category mechanical spares, DG
Sets, Heavy earth moving m/c spares and instrumentation spares.
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LIMITATIONS OF STUDY
BIBLIOGRAPHY
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1. Books
MATERIALS MANAGEMENT BY A.K.DUTTA
SUPPLY CHAIN MANAGEMENT OF
G.K.PUBLICATIONS.
2. Websites
WWW.GOOGLE.COM
WWW.ADITYABIRLA.COM
WWW.ULTRATECHCEMENT.COM
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