Neil tilley tata steel - supporting the supply chain

Supporting the Supply Chain

Neil TilleyManager, Construction Market Development

CPA Networking Forum 12th February 2013

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• Tata Steel.

• What’s our supply chain ?

• CE Marking – Supporting the supply chain in response to legislation.

• Target Zero – Supporting the supply chain to make informed decisions.

• Eurocodes and Costing – Supporting the supply chain to be economic.

• Closing remarks.

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Tata Group is one of the world’s fastest-growing and most reputable corporationsTata Group

• Tata businesses span 7 major industry sectors

• India’s largest private sector employer, with over 425,000 employees worldwide in 80 countries

• Total revenue in 2011-12: $83.3 billion

• International revenues in 2011-12: $48.3 billion

• Ranked the world’s 45th most valuable brand in 2012 at $16.34 billion

• Rated the world’s 11th most reputable company in 2009

Tata Steel, Tata Motors, Tata Consultancy Services,Tata Power, Tata Chemicals, Tata Communications,

Tata Global Beverages, Indian Hotels.

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Tata Steel Group

Tata Steel India

Tata Steel Europe

NatSteel Asia

Tata Steel Thailand

Tata Steel is present in both mature anddeveloping markets worldwide

3 steelmaking facilities11mtpa crude steel capacity16 manufacturing locations33 distribution centres

UK & Ireland

1 steelmaking facility6.9mtpa crude steel capacity6 manufacturing locations6 distribution centres

Netherlands

3 manufacturing locations2 distribution centres

USA

19 manufacturing locations13 distribution centres

Other EU

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Tata Steel in Europe Sales by market sector and products

* Via Tata Steel in Europe distribution network• Industry Strip & Industry Long include sales to General Industry, Independent

Steel Service Centres and Semi Finished sales • Other sectors includes Aerospace, Defence & Security and Shipbuilding• Packaging includes Consumer and Industrial Packaging

Market sector breakdown (% sales volume) Product breakdown (% sales volume)

4%

10%

10%

26%

18%

13%

11%

3%2%2%

1%

4%

5%

6%

6%

7%

8%

13%

9%

9%

16%

17%

Other productsRailSectionsPlateOrganic CoatedTubesRod & BarPackaging SteelCold RolledMetallic CoatedHot Rolled

• Semi Finished and Direct Rolled included within other products

Industry Strip

Construction

Automotive

Packaging

Retail* 

Industry Long

Rail

Lifting & Excavating

Energy & Power

Consumer Goods

Other sectors

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Operations hubs

Our customers and markets

Tata Steel in EuropeOne integrated, customer-driven company

Supply chain

Support Functions

Sales and Marketing (sector teams/customer services)Industry

Strip & LongConstruction Lifting & Excavating

Energy & Power RailPackagingAutomotive

Long EUStrip MLE Strip UK

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Supply Chain

Client

Structural Engineer / Architect / QS / M&E

Main Contractor

Steelwork Subcontractor

Steel Stockholder

Tata Steel

Customers

Specifiers

Those who pay money for product

Those who make high value commitments / judgments

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CE Marking

• Prompted by harmonisation of the manufacturing standard EN 10025:2004.

• First steel maker in the world to gain approval to CE mark sections and plates.

• Not mandatory at the time in the UK but chose to pursue.

• Prompted branding of Advance sections and additional sections that reflected a shift in design approach.• Least weight doesn’t always mean least cost.

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CE Marking

• Specifying EN 10025 did not guarantee CE marked material.

• Devised a protocol that enabled specifies to chose a CE Marked section.

• Contact with Specifiers, Steelwork Subcontractors and Software Houses.

• Specifiers not that interested (September 2005)

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CE Marking

• BCSA started to get interested with the harmonisation of BS EN 1090-2.

• Construction Products Regulations making CE marking mandatory in the UK.

• Specifier required to state the Execution Class (BS EN 1090-2), so imperatives now on Main Contractor and Steelwork Subcontractor to comply by selection and ability.

• Several years since Tata Steel sections and plates were first CE marked. Market appear to be coming into line for greater benefit.

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Target Zero

Considered 5 Building types.

Offices,

Schools

Warehouses

Supermarkets

Mixed-use

www.targetzero.info

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Target Zero

• TZ is in part a move to understanding the governments strategy to achieve zero carbon.

• Targets were being set with little guidance of how to achieve them.

• What is zero carbon ?

• Considered the cost of achieving ‘higher’ BREEAM(2008) ratings.

• Whole life impacts – Cradle to Grave.

One Kingdom Street, base case for Offices

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Target Zero

• Some key findings.• Structure has almost no impact on

regulated carbon emissions.• Start early in the design process.• There is a cost to higher performance.• Rapid reductions in C02 via carbon

compliance but hit diminishing returns hard.

• Embodied carbon – foundations high in single storey buildings.

• Giving the supply chain the ability to make informed choices

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Eurocodes

• 1976 UK signs the Treaty of Rome.

• Removal of artificial barriers to trade.

• 30 years ago the UK started to prepare.

• 58 documents on all materials.

• “ … the biggest ever change to our structural engineering community “, Prof. D. Nethercot

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Eurocodes

• Designers concerns.• Withdrawal of British Standards.• Cost of training / loss of efficiency.• Economy of design.• Language / methodology / principles.• Software.• Where’s the guidance coming from.• All materials.• Ready for Client’s instructions.• Loss of work.

• Response from the steel sector (Tata Steel, BCSA, SCI).• Suite of design guidance.• In-house presentations.• NCCI

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Costing

• Generally based on outline design proposals.

• Initial budget estimates need to be realistic to avoid extra cost for the building as a whole and knock on effects to associated elements.• Function, sector and building height • Form, site conditions and complexity • Location, logistics and access • Programme, risk and procurement route

• Low rate per tonne does not mean low building cost.

• Price volatility effects cost, especially in today market conditions.

• Price list x 2 for fabricated steelwork was a common misconception.

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Costing

Steel Insight

Structural steelwork, October 2011.

Cost planning through design stages, Jan. 2012.

Comparative cost study - Multi-storey offices, April 2012.

Cost planning of steel-framed multi-storey buildings, July 2012

Education buildings, October 2012.

Industrial buildings, February 2013.

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Costing

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Costing

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Closing comments

• How do we deliver the standard we say we will ?• Manufacture to European standards for

technical delivery condition, rolling tolerances and dimensional properties.

• 3.1 test cert. as standard.• CE Mark. • ISO 9001 and 14001.• Published CSR and Responsible

Procurement policy. • Accreditation to BES 6001, more products

to follow.

• The supply chain must start to demand documentation and must know the implications of what they are being shown.

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Closing comments

• What are the demands being made by the specifier ?• Attitudinal Survey 2010, Most important factor – first mention

Purchaser - most important factor on cost is predictability not amount

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Closing comments

• Does supply chain support and involvement win work ?• Market share -

0102030405060708090

100

Multi-Storey Steel Single-Storey Steel

%

by

fl oo r

are

a

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Supporting the supply chain

Thank you