presentation lucky cement

7/28/2019 Presentation Lucky Cement

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LUCKY CEMENT

Production and Operations Management

Presented By:

Mohammad Omar Arif

Hassan Khan

Nida Hasan


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VALUE CHAIN


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PRIMARYACTIVITIES

Primary ActivityDescription

Inbound logistics All those activities concerned with receiving and storing externally sourced

materials

Operations The manufacture of products and services - the way in which

resource inputs (e.g. materials) are converted to outputs (e.g. products)

Outbound logistics All those activities associated with getting finished goods and services to

buyers

Marketing and sales Essentially an information activity - informing buyers and consumers about

products and services (benefits, use, price etc.)

Service All those activities associated with maintaining product performance after the

product has been sold


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OPERATIONS


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Capital intensive process

Produces cement for local and export markets

Located in Pezu and Karachi

Capacity of 25,000 tons per day Raw material are limestone, gypsum and clay


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ANALYSISOFOPERATIONS:

Lucky Cement Faced two problems:

Problem1: High Fuel Consumption and Need for

Alternative Source of Energy

Problem 2: Problems in Cement Quality


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PROBLEM 1

Lucky Cement requires a lot of power to operate its

plant

Due to the unavailability of reliable and consistentpower, Lucky Cement developed 100% Captive

Power Generation units for both production facilities

22 most modern and energy efficient generatorshave installed capacity of 175 MW.


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Since the industry faces a situation where sales

price will be fixed by mutual consensus, the cost of

production will be the most critical factor of

profitability.

Energy cost is a major component of total cost of

production.

Contributes at an average 40 to 45 percent towards

total cost


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In order to minimize this cost Lucky Cement tried to

use the cheapest and most reliable source

The following are the possible alternatives: Wastes from virtually all industries, including chemical

wastes, agriculture waste, healthcare waste, out-dated

consumer products, industrial

Municipal solid waste (MSW)

Whole or shredded scrap tires


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ANALYSESOF ALTERNATIVES

1st:Energy-from-waste

Advantages:

Very low cost of investment. The technologies used are

easily available.

The installation will reduce Lucky Cement's operational

costs by 25-30 percent


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Disadvantages:

The energy produced with WtE would be not of good

quality and may hinder the entire process of production

Collection and process of waste was a rigorous

process.

The process is very harmful for labour.

One major problem is the further emission of pollutants

eg Carbon dioxide


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ALTERNATIVES

2nd:Municipal solid waste (MSW):

Cheap but again emission of Harmful Gases

3rd

:Whole or shredded scrap tires (TDF) Scrap tires are used as fuel because of their high

heating value.

Less expensive than fossil fuels and offers the potential

advantage of decreasing carbon emissions.


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25% more energy than coal

Problem with TDF: It is a long and some times

difficult process

May require additional physical processing

Requires high amount of initial investment


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SELECTIONOF ALTERNATIVES

Lucky Cement went with the installation of TDF

It cost them around Rs 1 billion

It allowed good quality energy to be produced withtechnology which was easily available aside from astrong possibility of getting a positive return on thisinvestment.

Plus it was environmentally friendly

Most importantly reduce Lucky Cement's operationalcosts by 25-30 percent,


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PROBLEM 2Problems in Cement

Quality


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WHATISMEASURED?

Continuous analysis of oxygen (O2), carbon

monoxide (CO) and nitrogen oxide (NO) in the

rotary kiln; which is essential for the quality of the

produced cement clinker, the efficient use of fuel,

and the protection of the environment from toxicemissions.


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BACKGROUND

High production costs

Low standard quality

Kiln requires adequate temperature & air combustion

If the air is more, energy consumption and so the costsincreases, and if the air is low the combustion is not

sufficient resulting in poor quality cement.

EPA regulations require constant monitoring of hazardous

emissions


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KEY OBJECTIVES

Product Quality maintained

Improve operational stability.

Reduce fuel consumption

Reduce maintenance requirements.

Maximize fresh clinker feed


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ALTERNATIVES

Buy process control equipment and technology

from Siemens

Import the equipment from China


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SIEMENS SOLUTION

Siemens FLK sampling system

Expansion: To what extent the cement is expanded

after addition of water

Setting Time: Shows the time taken by cement to

become solid.

Fineness Test / Blaine Test: Measures the small

size of the particles in specific weights.


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RESULTSFOR LUCKY CEMENT

Automated its operations

Reduced energy and other operational costs

Became the leading cement manufacturer in

Pakistan

presentation lucky cement

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