rourkela steel plant automation

8/3/2019 Rourkela Steel Plant Automation

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Rourkela Steel Plant

The corporate competitive environments being liberalized and globalized, therefore

product life cycle is shortening. Markets are undertaking globalization and because of

rapid changes in recent years, companies need to act more responsively to the market

and customer demand as well as strengthen information exchange and communication

systems to survive the highly competitive and speed-oriented existing infrastructure of the

steel industry. In such a global competition era, ERP (Enterprise Resources Planning)

has become the focus of corporate operation and management. The objective of this

paper is to investigate the suitability and the implementation status of ERP systems in

Rourkela Steel Plant.

Companys ProfileSteel Authority of India Limited (SAIL) is the leading steel making company in India. It

is a fully integrated iron and steel maker, producing both basic and special steel for

domestic use like construction, engineering, power, railway, automotive, FMGC and

defense industries and for sale in export markets. Rourkela Steel Plant (RSP) is one of

the integrated steel plants of SAIL producing mainly flat products. SAIL achieved profit

after Tax (PAT) of Rs.6754 crores (12.3 million tons) for the year 2009-10. As on date,

RSP has an installed capacity of 2.0 MT of Hot metal, 1.9 MT of crude steel and 1.67

MT of saleable steel. The Plant is undertaken Expansion Program. By the year 2012

the total saleable steel will be increased to around 3.9 MT.

Automation in iron & steel industry started from Second World War. Without Automation

in the manufacturing industry, it is not possible to ensure progress in the national

economy and thus improvement in the living standards of the people in the country.

Through Automation in the process industry, manifold objectives of business like

improvement in the working condition for the Employees at work place, Productivity in the

shops as well as quality Of Products are achieved. It is observed that due to automation

introduced in blast furnace, Steel Melting shops and Re heating furnaces the output has

increased by about 8-10% and has resulted in high amount of saving in


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fuel consumption. Automation in the rolling mill has contributed to about 15% increase in

the output. The working condition of the employees has improved drastically. The

operating personal strength is reduced by 25% and the overall production cost is reduced

by 20% [1].An integrated steel plant has many Departments operating in an

interdependent fashion to produce steel products. There are production Departments,

Services Departments and other non works departments like human resources

development, materials management, finance, personnel, marketing and computer &IT.

Production departments are Ore Bedding & blending, coke ovens, sinter plants, blast

furnace, steel melting shop and various rolling mills. All these departments have their

individual roles to play in keeping the plant operation smooth & sound.

Wh at is ERPEnterprise Resource Planning (ERP) is now being hailed as a foundation for the

integration of organization-wide information systems. ERP systems link together entire

organizations operations such as accounting, finance, human resources, manufacturing

and distribution, etc. Moreover, they also connect the organization to its customers and

suppliers through the different stages of the product or the process life cycle. There are

very few studies conducted about the implementation of ERP systems in the construction

industry, particularly for the construction contractors. The focus so far has been on client

organizations, engineering and design firms.


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The methodology employed is a mix of literature review, market studies and detailed

questionnaire survey. It is found that the majority of contractor firms have awareness

about the ERP systems but very few organizations have so far implemented such

systems. The major reason is that the implementation of any ERP system needs a huge

investment in time, money and resources. However, when implemented to solve the right

problems, these ERP systems can be a powerful tool for business improvement. The

study shed light on the barriers to the implementation of ERP systems in the construction

industry and also highlights valuable lessons learned and benefits gained by companies

that have such systems in place.

ERP Systems Evolution Course

1970s 1980s 1990s 2000s

MarketCh aracteristics Mass MarketSegments

NicheMarket Individuals

Demand Focus Cost Quality Flexibility Timeliness

ManufacturingMet h od

Massproduction of

limited productlines

Small-scaleproductionof various

productlines

Massproduction of

variousproduct lines

Massproduction of customized

products

Structure Centralized DecentralizedDecentralize

d Virtual

Management

SystemMRP II JIT/TQC ERP + SCM EERP + SCM


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Wh y Implement ERP In RSP

RSP can implement ERP in the Organization. On the face of a strong competition

from the other steel plants in the National and International level, the company has to

provide better service to business partners as well as minimize the production cost of the

Products. Flow of information is key to this. Management information should be available

on the desktop for faster decision making. ERP can also help in reduction in day to day

efforts in managing business transactions in the long run.

The current information systems at RSP cover critical areas like Finance, Materials,

Marketing, Payroll, Employee Service Record information, Maintenance, Production

planning & control (SMS to mills coverage), System to raise DA/TC etc and is based

on Sun computer and Oracle 7 database. Business information is transferred between

in- house developed online PPC system, from new Sun system using Oracle 10G and

separate MES systems. The software functionality in E3K has been in wide use. The

main E3K/oracle-7 system has some problems .

ManagementFocus

Focuses onsales,

production,materials, and

financialmanagement,planning and

implementationof

manufacturingmaterial

integration.

Focuses oncost,

quality,efficiency,

andpromptnessof material

supply.

Focuses onresearch anddevelopment

, sales,productionallocation

anddistribution,

service,integration

and optimalutilization of

internalfinancial

resources.

Focuses on aglobal

operatingmodel thatcombines

internaland externalcustomers

andmanufacturer

s.

ApplicationTerritory Large area Large area Worldwide Worldwide

OperationCycle Periodic Periodic

Periodic/Adhoc Ad hoc


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Current IT ScenarioThe present software in use has been developed in-house by Computer and

information Technology Department at RSP(C&IT). The back-end data servers are onRISC platform running Solaris 2.5 as the Operating system. The majority of the

applications have been built using COBOL, C,Pro*C and Pro*COBOL and are Oracle 7.0.

C&IT department also has the ppc system using a different RISC server and Oracle

10G. The above app licat ions are integrated by a central TCP/IP/Ethernet network

backbone having 1 Gbps and 100 Mbps fiber optic links across many locations in plant

and township. There are about 1650 nodes in this network where 1380

workstations/desktops,180 dumb terminals and 30 servers in business , PPC, MES etc

are connected across various departments in RSP.

Few users in RSP get internet connectivity through dialed up and broadband.

Antivirus deployed for network connectivity layer2 and layer3 switches for inter

connectivity is used. There is control by net sight atlas All servers are interconnected and

PPC/MES data flows to E3K business server. The current high-level application map

is depicted in the following diagram. Which is an Enterasys Network Management

System. It also has connectivity through CISCO routers and RAS.This network can be

used by ERP, and a snapshot of the network backbone is given in this diagram below.


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Drawbacks Of Existing System To maintain increasing business needs of RSP there is a problem of scalability.

Proper disaster recovery/backup systems is lacking. So in case of major breakdownof these computers both business system and production system of RSP is hampering.

The software is mostly discrete in functionality and support only the mapped

process/function without much enterprise level integration. This results in duplication of

data and effort and inappropriate mapping of functional requirement.

The existing system does not support streamlined business processes.

This system requires continuous involvement of programmers for day to day business

transaction.

There is risk of obsolescence/unavailable components for replacements.

SolutionTo replace E3K system. Present application software of E3K will not be

compatible with any latest computer that offers Oracle 10G database. Hence,

complete re-engineering of all E3K software is required and major investment in

terms of both money and several man years of software work is due.

ERP can also transform RSP from discrete island of information to business data

warehouse where the user can get the right information at right time from right source for

strategic and operational decision making on real time basis. It also introduces

best business practices and prepares RSP to compete better in future.

The following are the steps which can followed for successful implementation of ERP.

Assumed in each step is that youre working with a capable and trusted consultant, who

is working closely with you to help you achieve your goals.

1. Needs Assessment The first step is to thoroughly evaluate and document your

business challenges, workflows, departmental needs, and overall reporting requirements.

Once the documentation is complete, spend the time to prioritize or rank your findings.

While any good consultant will do their own detailed needs assessment as a part of the


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sales process, your efforts up front will enable their efforts to be more focused, efficient,

and helpful for all involved.

2. Evaluation and Selection When youre ready to begin evaluating your options, I

think its wise to first ask industry colleagues or a trusted business advisor for their

experience and recommendations. The honest feedback youll receive will be invaluable.

The Internet is also a valuable tool, but dont get overwhelmed with the 3.4 million hits

Google returns on ERP software. Select a manageable list of consulting firms with

whom to meet and walk through the sales process. Before making a final selection,

check multiple client references that can speak to measurable project success.

3. Project Management Once an application is selected, its imperative (i.e. a

necessity, requirement, obligation, must, etc.!) for you to select and equip an internal

project manager. This individual will be the owner of the project plan, the primary point

of contact for the consulting group, and the watchdog to help ensure project scope,

budget, and timeframe remain aligned with overall goals. For all the wonderful things a

consultant project manager will do (and they are equally as critical to project success), an

internal project manager is an absolute requirement. Plan accordingly.

4. Implementation Once youve completed steps 1 3, you have a solid foundation

and plan to install, configure, and optimize the system for your working environment.

While project plans can change, keep in mind that scope, timeframe, and budget all must

be considered before making any major changes.

5. Business Process Re-Engineering One of the tremendous benefits of an ERP

implementation project is that it represents an opportunity to make necessary process or

workflow changes. While change is usually hard, keep the big picture in mind and

embrace changes that can help you achieve breakthrough improvements.

6. Systems Integration and Custom Development One of the ways that laborious

and money-wasting processes get re-engineered is with system integration or custom

development. Integration with another application or data source or customizing the

software to meet your unique needs can often dramatically increase efficiency andautomation. As in all parts of the implementation, the cost to do so must be weighed with

the benefit youll receive. Youll also need to consider what type of impact any custom

development will have on your ability to upgrade the application in the future.

7. Training and Education Once the system is configured and new processes

designed, do not skimp on training. Invest in one-on-one or group training to enable your


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8. employees to use the system to its full potential. And d ont stop training once the

system is live. Schedule regular training to make sure that all employees are using the

software in the most beneficial and efficient manner.

9. Ongoing Support After the system is up and running, remember that the effort tocomplete success is not done. Let the proverbial dust settle as end-users adjust, but

maintain a list of additional projects to complete. Retain close communication with your

consultant to make sure youre getting optimum value from the system and operating at

peak efficiency.

10. System En h ancement Recognize that your system will only be as good as the

investment you continue to make in it. I recommend a system review (sort of like a

physical at the doctors office) at least once a year to identify areas for potential

improvement through a version upgrade, new modules, more efficient processes, or

additional user training. A commitment to this process will enable you to maximize your

existing investment while extending your capabilities to help you achieve even greater

success.

Ch oice of ERP functionality

All the business processes of RSP from the angle of ERP implementation and proper

investment planning has been studied. RSP Finance and Materials are fully computerized

by legacy systems and are tightly linked with RSPs other on-line computerized systems

in Dispatching, Personnel, Production etc. As all existing applications are mission critical,

seamless implementation without any break of service anywhere, has been the prime

consideration in selecting the areas. Connectivity to ERP. The scaling of servers will be

done based on future scalability.ERP will introduce major change in the work culture among the Employees. The areas

which are already automated will also get the benefit. By this redistribution of work among

various departments is possible. This is the secret behind the success for an industry.


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Post-ERP Implementation All major processes related to the functions of Finance, Materials Management, Sales &

Distribution, Production planning and execution, Plant Maintenance and Quality

Management. Can be configured and customized for RSP in the ERP system. There

would be requirements for interfacing with additional systems to capture data related to

the above mentioned functions. In the hardware aspect, the server solution can be

segregated into inner and outer DMZ (De-militarized Zone) for enhanced security

options. Employees can access the system from outside plant through secured Internet.

DMZ (De-militarized Zone)

There are many different ways to design a network with a DMZ. Two of the most basic

methods are with a single firewall, also known as the three legged model, and with dual

firewalls. These architectures can be expanded to create very complex architectures

depending on the network requirements.

Single firewall A single firewall with at least 3 network interfaces can be used to create a network

architecture containing a DMZ. The external network is formed from the ISP to the firewall

on the first network interface, the internal network is formed from the second network

interface, and the DMZ is formed from the third network interface. The firewall becomes a

Integration of people, process and tec h nology


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single point of failure for the network and must be able to handle all of the traffic going to

the DMZ as well as the internal network. The zones are usually marked with colors for

example, purple for LAN, green for DMZ, red for Internet (with often another color used for

wireless zones).

Dual firewall

A more secure approach is to use two firewalls to create a DMZ. The first firewall (also

called the "front-end" firewall) must be configured to allow traffic destined to the DMZ

only. The second firewall (also called "back-end" firewall) allows only traffic from the DMZ

to the internal network. Some recommend that the two firewalls be provided by two

different vendors. If an attacker manages to break through the first firewall, it may take

more time to break through the second one if it is made by a different vendor, and thus

less likely to suffer from the same security vulnerabilities if any are found (whether from

accidental misconfiguration less likely to occur the same way across the configurationinterfaces of two different vendors, or from a security hole found to exist in one vendor's

system but not the other


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This architecture is, of course, more costly. The practice of using different firewalls from

different vendors is sometimes described as a component of a "defense in depth" security

strategy.

Benefits from t h e system

ERP has industry best practices embedded which improves business

processes.

ERP brings with it the capability to provide automated controls and ERP enablrd

practices.

Capturing data at source will help to improve transparent

Better decession support and up-to-the minute information.


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Present Status And Future Target Of Various

Modules .

Module Current Function Approac h to ERP

1 Finance

As per rules of SAILaccounting standard to generatethe financial statement of

company for the given period

To cover current computerizednon computerized financialstatements for different period.System should integrate collectfrom all the areas which arecontrolled by ERP and enter data manually where no ERP.

2 Sales &distribution

Initiate and complete sales for primary and secondary productsdispatch process interface withquality management update of inventory

RSP marketing for secondarysales and PPC for coordinating sales throughCMO. The primary sale is anaddition in the revised scope.

3 Plantmaintenance

At present the CMMS systemwhich is used centrally for planning and tracking plantmaintenance activity

The SAP PM module willprovide functionalities to planfor preventive maintenance,capital repair plan, breakdownmaintenance and conditionbased maintenance.


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4Q uality

Management

All quality interfaces withpurchase and dispatchof materials/products, inspection,tests, analysis (physical,chemical, mechanical andgenerate test certificates )

Inspection and test analysesin coming materialintermediate product and finalproduct. Other department canalso use the QM atintermediate stages.

5Material

management

The enter purchase cycleinterface with qualitymanagement, Management of store at various location issue of material for internal consumptionstock consumption,

material classification andinventory valuation .

This carries out currentusing system/manually

along with process under takenby TRM for raw materialpurchase. It covers

inventory tracking and vendor site.

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Production

Planning

andexecution

Annual, long term, monthly,weekly, daily productionplanning, scheduling in different

Department tracking of production order consumption at each stageproduction at shift end other support process supportingoperation.

Along with the currentoperation additional

departments likeOBBP,CO,CCD,SP I, SP II, RFPower Generation, Power Distribution, EMD, Top etc.Within scope to trackdaily/shift wise production andmaterials consumption .


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Conclusion

The existing automation can be upgraded further in terms of ERP. ERP is implementedin all most all the sections and build architecture is be upgraded so that it will be

compatible with implementation of ERP. ERP implementation success is not a pipe-

dream. It can and does happen. Whats most important is a mindset and commitment to

maximize your ERP software investment. This type of thinking begins well before you

purchase the software and extends throughout the life of the application.

References

Delasis Das, M.A.N Industries Automotives in steel Industries.Steel world November-06 35-36

Chai Tianyou,Li Huiying,Yu Zhangxiong The integratedautomation system of iron & stell enterprise

A.V.Leskov Automation of production processes in the iron andsteel industry of the ussr.

Angela Summers,Phd,PE,President,SIS-TECH Solutions,LPEvolution Of plant Automation.

SAIL Website

Growth Magazine, MTI. Ranchi

Iron &Steel Review.


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rourkela steel plant automation

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