ASSIGNMENT ONSUPPLY CHAIN MANAGEMENT

OF JAYPEE CEMENT

Submitted to Submitted by:

Mr. Abhinav Nigam jigyasa soni

Assistant professor MBA- 3rd sem.

Banasthali university ROLL NO. 13667

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Table of Contents: page no.

Brief about Company- 3-5

i. Products

About Supply Chain Management - 6-10

i. Definition ii. Supply Chain operation Decision

iii. Jaypee cement procurement & manufacturing process

Distribution Network – 11-15

i. Geographical Spread ii. PMLC Movement

Conclusion- 16

Bibliography- 17

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BRIEF ABOUT JAYPEE CEMENT-

Manufacture of cement has a history, which traces back to millennia. The Romans who were prolific builders used burnt calcareous (calcium bearing) rocks along with pozzolanic materials in an era Before Christ. The structures built by them, like the Pantheon, are still there for us to see proving the goodness of cementitious materials as input material for construction.Post industrialization and as infrastructure development started globally, demands for cement have been growing steadily both quantitatively & qualitatively.

India is the second largest cement producer in the world after China and cement consumption has been growing at a CAGR of over 8% p.a. in the last five years.

Jaypee group is the 3rd largest cement producer in the country. The groups cement facilities are located in the Satna Cluster (M.P.), which has one of the highest cement production growth rates in India.

The group produces special blend of Portland Pozzolana Cement under the brand name-

Jaypee Cement‟ (PPC). Its cement division currently operates modern, computerized process control cement plants with an aggregate installed capacity of 28 MnTPA. The company is in the midst of capacity expansion of its cement business in Northern, Southern, Central, Eastern and Western parts of the country and is slated to be a 35.90 MnTPA by FY13 (expected) with Captive Thermal Power plants totaling 672 MW.

Keeping pace with the advancements in the IT industry, all the 260 cement dumps are networked using TDM/TDMA VSATs along with a dedicated hub to provide 24/7 connectivity between the plants and all the 120 points of cement distribution in order to ensure “track –the – truck” initiative and provide seamless integration. This initiative is the first of its kind in the cement industry in India.

In the near future, the group plans to expand its cement capacities via acquisition an green field additions to maximize economies of scale and build on vision to focus on large size plants from inception.

The Group is committed towards the safety and health of employees and the public. Company’s motto is “Work for Safe, Healthy, and Clean & Green Environment”.CEMENT BRANDS-

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Jaypee produces a wide variety of cements, which are specifically designed to cater to the customer’s requirements for different types of cements in each of its markets. All the brands, which the Company produces, are so evolved in their characteristics and properties that they will surpass BIS Standards. For each brand, the relevant BIS standards are mentioned in enclosed table along with a comparison with the BIS requirement.

The state-of-the-art cement plants operated by the Jaypee Group are equipped with the most modern technology from the globally leading technology providers. Extensive Instrumentation & fully automatic and computerized process control system, custom designed Quality Control software like QSO Expert and CADES in the Mines, Cross Belt Expert Analyzer using the Prompt Gamma Neutron Activation Analysis - for the first time in India, X-Ray Fluorescence and X-Ray Diffraction analyzers and optical microscope, enable production of cement of the highest quality consistently on a sustained basis. Jaypee Rewa Plant Quality control laboratory is accredited laboratory from National Accreditation Board for Calibration & Testing Laboratories, for chemical and mechanical Cement testing.

All brands are marketed in attractive HDPE bags, containing 50 Kgs of quality cement from Jaypee. Bags are identified with a conspicuous Jaypee Logo, which also over the years has come to be regarded as a “Hallmark” of quality.

Jaypee produces & markets both Portland Pozzolana Cement (PPC) & all grades of Ordinary Portland Cement (OPC).

A brief introduction of each brand is enumerated as below:-

PORTLAND POZZOLANA CEMENT (PPC):-

Jaypee Cement (PPC) is a market leader among all blended/composite cements in the markets of U.P, Bihar, M.P., Punjab, Haryana, Delhi & Nepal. Its unique design and blend, with high strength clinker and superior quality flyash has made it the popular cement for construction of large number of strong and durable structures in these states.

Fine particles of Jaypee Cement (PPC) when mixed with water readily form a smooth paste, which results in a smooth surface. When used with sand and aggregates it yields a very strong & durable concrete.

ORDINARY PORTLAND CEMENT:-

33 Grade Conforming to IS: 269-198943 Grade Conforming to IS: 8112-198953 Grade Conforming to IS: 12269-198753 S Grade Conforming to IRST-40(53 S)OPC-43 Grade:-

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This is produced from enriched limestone most suited to make high quality clinker. Jaypee Cement (OPC-43 Grade) is available in 50 Kgs HDPE bags of a distinctive design and cover. It has emerged as the top choice of Engineers and Engineering Companies engaged in construction of mega projects – such as National Highways, Bridges, Transmission lines, power plants, Industrial and Residential structures.

OPC-53 Grade:-

Because of its fine nature, good particle size distribution, optimal phase composition, imparts the properties of higher strength to the structures viz., Bridges, prestressed elements, penstocks, precast elements etc. requiring very high strength to negotiate the heavy static &dynamic loads.

OPC-53S Grade:-

It is a used in heavily loaded or pre stressed structures, which are subjected to high dynamic loads due to rapidly moving volumes, be it a train passing on the railway sleepers or a great volume of water moving at high speed to generate electricity in a penstock. Page.

SUPPLY CHAIN MANAGEMENT:-

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Definition:-It encompasses all activities associated with the transformation of goods from the raw material stage to the final stage when the goods and services reach the end customer.

Also, it involves planning, design and control of flow of material, information and finance along the chain in order to deliver value to the end customer in effective and efficient way.

Supply Chain Operations Decision

Demand forecasting

Procurement planning

Production planning & Control

Distribution Planning & Control

Inventory management

Transportation Management

Customer Order processing Relationship management

JAYPEE CEMENT PROCUREMENT &MANUFACTURING PROCESS:-

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Mining process:-

The cement manufacturing process starts from the mining of limestone, which accounts for almost 60% of raw material for making cement. Limestone is excavated from open cast mines after drilling and blasting and loaded on to dumpers which transport the material and unload into hoppers of the limestone crushers.

Setting up plants near quarry saves on inbound transport cost proximity to reserve is the singlemost important criteria.

Basically Jaypee Cement has their own mines to get limestone which they purchase from local farmers mainly in Rewa plant but in other regions like Sidhi, Thandaetc they also borrow the land for mining limestone in lease by state government.

Mining royalty imposed by state government is paid per ton basis. Dumper sand shovels used in mining consume high quantity of diesel making it the second most important cost driver.

The Mining operations are carried out by fully mechanized open cast mining method. The equipments used include 153 mm drill machines, hydraulic excavators of 3.8 cum & 4.1cumbucket capacities, rock breaker, heavy duty 35 MT carrying capacity dumpers, bull dozers and miscellaneous equipments.

the holes drilled for blasting are charged with bottom initiation using NONEL detonators to minimize ground vibration and fly rock & “INSTANTEL – DS 077” Seismograph being used on regular basis to monitor ground vibration.

Systematic and scientific mining operations of Jaiprakash Associates Limited are well supported by mine planning activities done with the help of mining software “SURPAC”.The reclamation and rehabilitation of mined out area is a continuous process in Jaiprakash Associates Limited. The hard overburden generated is used to back-fill the area capped with topsoil and area is reclaimed in planned way by adopting large scale afforestation.

Crushing Stacking & Reclaiming of Limestone:-

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The LS Crushers crush the limestone to minus 80 mm size and discharge the material onto a belt conveyor which takes it to the stacker via the Bulk material analyser. The material is stacked in longitudinal stockpiles. Limestone is extracted transversely from the stockpiles by the reclaimers and conveyed to the Raw Mill hoppers for grinding of raw meal.

Crushing Stacking & Reclaiming of Coal:-

The process of making cement clinker requires heat. Coal is used as the fuel for providing heat. Raw Coal received from the collieries is stored in a coal yard. Raw Coal is dropped on a belt conveyor from a hopper and is taken to and crushed in a crusher. Crushed coal discharged from the Coal Crusher is stored in a longitudinal stockpile from where it is reclaimed by a reclaimer and taken to the coal mill hoppers for grinding of fine coal.

Sourcing Coal:-

Coal reserves are found mostly in eastern states. 95% of coal mining is still in control of center or state government. Steel, power and cement companies are allowed to do captive or contract mining. Government companies mined coal also known as “linkage coal” is 15- 20% cheaper than open market coal. Companies try to maximize linkage off take by better liaison with railways and coalmining companies

Since coal reserves are skewed towards the eastern zone, freight cost is the biggest cost driver. Market coal prices are determined by global supply and demand equation. Presently Jaiprakash Associates Ltd has borrowed many coal mines on lease by government, like in Shahdol district they borrow coal mine on lease by Madhya Pradesh government and also on Jharkand they take on lease by Ministry of Coal, Central government. Also company purchased coal from Coal India Limited to fulfill needs

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Raw Meal Drying/Grinding & Homogenization:-

Reclaimed limestone along with some literate stored in their respective hoppers is fed to the Raw Mill for fine grinding. The hot gasses coming from the clinkerisation section are used in the raw mill for drying and transport of the ground raw meal to the Electrostatic Precipitator / Bag House, where it is collected and then stored and homogenized in the concrete silo. Raw Meal extracted from the silo (now called Kiln feed) is fed to the top of the Preheater for Pyroprocessing.

Clinkerisation:-

Cement Clinker is made by pyroprocessing of Kiln feed in the preheater and the rotary kiln. Fine coal is fired as fuel to provide the necessary heat in the kiln and the Precalciner located at the bottom of the 5/6 stage preheater. Hot clinker discharged from the Kiln drops on the grate cooler and gets cooled. The cooler discharges the clinker onto the pan / bucket conveyor and it is transported to the clinker stockpiles / silos. The clinker is taken from the stockpile / silo to the ball mill hoppers for cement grinding.

Cement Grinding & Storage:-

Clinker and Gypsum (for OPC) and also Pozzolana (for PPC) are extracted from their respective hoppers and fed to the Cement Mills. These Ball Mills grind the feed to a fine powder and the Mill discharge is fed to an elevator, which takes the material to a separator, which separates fine product and the coarse. The latter is sent to the mill inlet for regrinding and the fine product is stored in concrete silos.

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Packing:-

Cement extracted from silos is conveyed to the automatic electronic packers where it is packed in 50 Kgs. Polythene bags and dispatched in trucks.

Electrical Power:-

For total power requirement of 90 MW (Jaypee Rewa Plant and Jaypee Bela Plant), we have CPP 1 - 25.0 MWCPP 2 - 25.0 MWCPP 3 - 37.0 MWFour DG sets provide an emergency backup.

Source of fly ash:-

Burning of coal results into fly ash. Thermal power plants across India produce plenty of good quality fly ash which can be used by cement industry. Fly ash is used in producing blended cement grades like PPC.Flyash prices are determined by local demand and supply equation. Since freight cost is the major component, companies look for nearest source of fly ash.

Sourcing – Gypsum:-

Presently Jaiprakash Associates Ltd source gypsum from “Rajasthan States mines and Mineral Limited” and also from Pakistan through middle man. Companies also import it from Thailand

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Distribution Network

Jaypee cement has around 156 cement dumps and all are networked using State-of-the-artTDM/TDMA VSATs along with a dedicated hub to provide 24x7 connectivity between the plantsand all the 156 points of cement distribution in order to ensure “track – the – truck” initiativeand provide seamless integration. This initiative is the first of its kind in the cement industry inIndia.

JAL has set up new capacities in Northern, Central, Western & Southern parts of the countryand is targeting a capacity of 26 MTPA in 2010 and 32.80 MTPA by 2011, along with CaptiveThermal Power Plants (CPPs) totalling 375 MW

Now the Group have 12 Integrated Cement Plants supported by 375 MW of captive thermalpower, 9 split location plants, 11 Railway sidings and a jetty, giving the Group a pan-Indiapresence in the cement sector.

Geographical Spread of the Jaypee Cement:-

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PMLC Movement:-

PMLC means Product Movement and Logistic Cell". This department ensures the delivery of finished product to the customer directly and to company stock points for further delivery to the customer on retail basis.

PMLC dispatch clinker to various mini plants and to grinding units as per requirement of marketing. Companies invariably hire c & f agents or transport cements to own or government warehouses either via roadway or railways. xxIn case of exports, cement reaches the nearest port via roadways or railways and is then transferred to the importing country. Domestically, from c& f agents or warehouses the cement is transported to the dealers/distributors and in turn to sub dealers who finally sell it to the end users. There may or may not be physical ownership of goods. In the second case, dealers and sub dealers take order from buyers and place it to the companies, coordinate and monitor the timely dispatch of said orders, transportation of good sand final delivery. Distributor network in cement industry is highly dominating and companies are compelled to hire as they do not really have that rapport and touch with the end consumer of their product. Apart, from this, the distributors have storage facilities as well which help control well in the entire supply chain as they are the ones who bring orders and therefore are directly responsible for the business that a manufacturer would do They ultimately grind clinker and manufacture cement for sale in market.

Planning:-

Before PMLC start the function, they should know what type of cement and quantity is to be dispatched to the customers in various markets or to our go downs located in our marketing area. This target and grade wise dispatch of cement and clinker are fixed in the beginning of the month and then they review it on daily basis with the Marketing Department to arrange dispatches. Such targets are fixed by department heads level i.e. COO (Cement). President (Com) and President (Mktg) with consultation as per availability of cement stock and production plan during the month. In case of constraints, they review the targets from time quantity of cement / clinker is to be dispatched by rail and by road. The ratio between rail and road dispatches is also reviewed on daily basis depending upon the to time and the targets are reduced or increased accordingly. In this planning, they also plan that what availability of rail transport and road transport facilities. Considering the targets, Marketing Deptt provides a plan of rakes to be loaded from our different sidings and road dispatches to the various go downs and to the direct customers. This plan is also reviewed with the Marketing from time to time depending upon the variation in Marketing conditions and transport condition.

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Mode of Transportation:-

Road Transport:-

Road Transport means the product is dispatched by trucks, trailers and tankers / bulkers to the customers or final destinations. The arrangement of these trucks, trailers and tankers/ bulkers are provided by our authorized transporters. The loading and dispatch of product in the trucks is arranged as given below. When truck arrives at plant for loading the product, the truck driver carries a Transporters Bilty, which indicates the final destination, quantity to be loaded and sale/ customer order and the bilty is produced to the Dispatch Department. The Dispatch Assistant checks the authentication of the bilty, i.e. whether the bilty issued is signed by the authorized person, type of vehicle and quantity balance in order before allowing the truck/ trailer/ tanker/ bulker for loading. Once the Dispatch Assistant satisfies with the bilty, he issues Loading Memo/ Loading Instruction Slip and allow for loading the product. Then the vehicle comes to the Packing Plant via weighbridge, where we record tare weight of the vehicle. Tare weight is the weight of the empty truck weighbridge provides a secret number on the Loading Instruction in which the weigh bridge operator captures the data in to the system. Then the truck comes to Packing Plant, where Tally checker receives the truck and instructs the truck driver to be in queue according to the type of product to be loaded in the truck. After loading the product, in case of packed cement the Tally cheker counts the no. of bags loaded in the truck and in case of bulk cement loading. Tally cheker ensures the sealing arrangement of all manholes or outlets, so the product does not leak from any of the manholes or outlets to avoid theft or adulteration in product through manholes. In case of clinker, after loading, we ensure that the clinker truck is covered with good tarpaul into avoid damage due to moisture/ rain and spillage of clinker from body. Then he certifies the loading on loading instruction Slip and allows the truck to go weighbridge and net weight, where the weight bridge operator records the gross weight and net weight on the basis of the secret number provided by the first weighbridge operator at the time of taking tare weight. After ensuring the correctness of the product loaded as per the weighment check, he allows the truck to approach to security for their checking and once the security personnel certifies that the loading is as per the loading instruction slip, he allows truck to approach Dispatch Deptt for obtaining Excise Gate pass cum Delivery Challan by submitting the Loading instruction slip and bilty certified by the Tally checker, Weighbridge and Security Guard.

authorizedriver to move on route up to final destination. After delivering the material to the customer or at go down, truck driver brings the receipted copy of the product and submit the same to transporter for collecting freight and subsequently the transport, at the interval of 10 days, submit these receipts along with bill to Accounts Deptt. for collecting the payment. In this procedure, in case if the material is not received as per the Delivery Challan, the GDR (Godown Discrepancy Report) is endorsed on the receipted copy and the deduction of the value of product is made by the transporter from truck driver and finally company deduct amount from transporters bill, which is known as the cost of damage. The reasons for such deduction are on account of :-

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(a) Short Receipt of Material in term of Quantity/ Bags and (b) Damage in term of Packing or Quality.

Rail Transport

To commence the dispatches by Rail transport, we need railway wagons. For that purpose, we have different sidings, which are given below:

a) Bela Railway Sidingb) Turki (6 Km) &Satna (52 Km) Railway Siding: These sidings are outside the rewa plant

and 6 km and 52 km away, where we have to take product for rail loading by road transport

The use of both the sidings is not only for cement / clinker dispatches, but we use these sidings for receipt of raw material such as coal and gypsum. To dispatch from the above sidings, we have to request Railways for providing the wagons for loading cement/ clinker. This request is known as indent of wagons to Railways and for that purpose we fill our requirement in a Railway Register giving following details.

(i) No. of wagons required(ii) Type and no. of wagons(iii) Destination (iv) Consignee details

In case of cement, Railway provides us 40 Covered wagons and in case of clinker, Railway provides us 58 Open wagons, which is known as 1 rake and the average quantity to be loaded in these rakes are as under :-

(a) Cement - a rake of 40 wagons- 2500 MT approx. (b) Clinker- a rake of 58 box wagons - 3500 MT approx.

The capacity of each wagon, in case of cement varies from 62 MT to 65 MT and in case of clinker the capacity is about 60 MT. Railways provide us wagons as per the availability of wagons and once the rake is loaded in the siding, we submit a memo to Railways certifying that the loading of rake is completed, because Railways give a specific time for rake loading and in case rake is not loaded in time, demurrage is charged on hourly basis for the extra time utilized for loading. The loading time provided by the Railways in our different sidings is as below.

Siding Cement Loading Clinker Loading RemarkTurki&Satna Siding 9 hours 9 hours Manual LoadingBela Siding 7 hours 5 hours Mechanical Loading

The demurrage is charged on the capacity of the rake if the loading is going on after specific hours and the rate of demurrage is Rs. 7.50 per hour per wagon. However, on a monthly basis, we request Railways to waive off the demurrage by giving the proper reasons on what account the demurrage accrued like shortage of labour, break down in the plant, road transport strike etc. and Railways consider and waiver of the demurrage accordingly. This procedure is knownas

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Demurrage Waiver Application/ Appeal from Railways. The appeal is made to the following officers in Railways through concerned in charge Goods Clerk.

(A) Assistant Commercial Manager(B) Dy General Manager(C) Sr. Divisional Commercial Manager(D) Divisional Railway Manager(E) Chief Commercial Manager(F) General Manager

They have specific power to consider the demurrage. Normally the demurrage is waived off upto 40%. The demurrage waiver is done in three stages, for example case file to ACM will befinally disposed of by Sr DCM after passing through DCM, sometimes one or more wagons. Insuch cases we lodge a complaint to the Railways and normally Railways arrange to trace thewagons and deliver the same in a very short time to the destination and in case if they fail todeliver the wagon, the value of product loaded into wagon is paid by Railways to the Siding owner, i.e. company after loading and settlement of the Railway claim. Here, it is very important to note that Railway deputes commercial staff round the clock our siding for collecting freight, charging demurrage and freight. Also they verify the loading of wagons and keep the record for Railways. They are known as Goods Clerk. The salary of these staff posted at Siding by Railways, are paid by the siding owner, i.e. company.

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CONCLUSION:-

Jaypee Cement (PPC) helps to produce better concrete & compressive strength keeps on growing with time. Jaypee Cement (PPC) promotes workability in fresh concrete even with less water and hence yields high strength concrete of low permeability, less bleeding, better pump-ability and superior finish. Hardened concrete made with Jaypee Cement (PPC) benefits from long term gain in compressive strength and related properties like low creep & shrinkage etc.

Furthermore, the concrete is very durable and effectively resists aggressive attack of sulphate and chloride ions. It is also resistant to Alkali aggregate reaction. The concrete is not subjected to attack by acid rain due to presence of green house gases (GHGs) in higher concentrations in atmosphere.

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Bibliography:-

http://www.jalindia.com/profile.htm

http://www.jalindia.com/cementbrands.htm

http://www.jalindia.com

http://www.slideshare.net/lordriby/jaypee-supply-chain-management

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