Transformation process

Transformation Process

Topics to cover:

-What is Transformation Process?

-A case study on BMM-ISPAT

-Company Practices

-Gap Analysis

Transformation Process

Input Output

processes that transform resources (inputs) into finished goods or services for customers or clients (outputs).

TransformationINPUT OUTPUT

Transforming goods- For goods, Transformation means there will

be physical changes. The output will be tangible.

- The operation process will be highly automated and mechanised.

- For example: Samsung takes electronic parts, glass, metal, plastic and changes them into a mobile phone.

Transforming services For services, Transformation means there will be no physical changes. The output will be intangible.

The process will rely heavily on staff-humans.

For example: Fed uses its input of staffs, vehicles and delivers delivery services to the consumers as output

Value Adding It costs the business money to transform an input into an output.

As a result value is added.

Example: There is more value in a burger than in the inputs such as bread, sauce, meat.

Value Increases

Influence of volume One key decision that must be made is- Volume – or How much ?

The business must be flexible to meet the customer demand.

Lead Time Lead Time

is the time it takes for an order to be filled from the moment it is made.

Otherwise there might be:

-Wastage

-Increased inventory cost

-lost sales

The influence of variation in demand

An increase in demand will mean:

More inputs from suppliers, increased staff input and increase machinery

A decrease in demand :

Will have the opposite effect.

For example: The staff hours may need to be reduced.

Transformation processes include:

-changes in the physical characteristics of materials or customers

-changes in the location of materials, information or customers

-changes in the ownership of materials or information

-storage or accommodation of materials, information or customers

-changes in the purpose or form of information

-changes in the physiological or psychological state of customers.

Insights

One of the India’s largest iron ore exporter

Established in 1976

PRODUCTS OF BMM GOUP:

SPONGE IRON

INDUCTION FURNACE

ROLLING MILL

235 MW POWER PLANT

PELLET PLANT

BENEFICIATION PLANT

BRICK PLANT

Integrated Steel Plant

COMPANY PRACTICES

IssueUnloading was done with the help of manpower

consumed a very large amount of time and money.

Input -Conveyor belts

-Track hopper

-wagon tipplers

Output

INCREASE IN OVERALL PRODUCTIVITY BY 7 TIMES

#2 CONVEYOR BELTS MODERNISATION

Conveyor Belt made from

Vulcanised rubber with a

Teflon coating.

Output better abrasion wear and tear resistance Lesser breakdown high productivity lesser maintenance cost

Increase in lifespan of the conveyor belt

#3 STEEL MELTING SHOP- OXYGEN LANCING

IssueSlopping results in the splashing of the

hot metal out of the LD chamber

Input*relative inclination of the nozzles at an angle of 12 degrees

*5 to 7 holes in the lance tip.

Output

Increase in overall productivity of 10% and reduction in slopping.

Replaced Ladle Car with Torpedo Car

Output

Company saw reduction in scrap material and

more efficient energy utility due to absence of skulling.

INTRODUCTION OF SUBLANCE EQUIPMENT, DROP-IN THERMOCOUPLES

Thermocouple is an electrical device used to

measure temperature.

OutputShortened process times Avoidance of furnace tilting

Reduced rate of over blow and under blow of lance

In order to get the required

kind of output,The requisite Quality

of rawmaterials

is to be ensured

In order to save energy and to

ensure lower cost the better,

efficient technology should beadapted.

Company imports 77-82% coking-grade coal from U.S.A., Australia

and the Philippines and 18-23 of the coal is fed from

East Indian domestic mines

Replacement of Ladle Cars with

Torpedo cars and hot gas stove( blast

furnace unit)

Less Gap is seen as company practices

according to the Indian standards of

Iron and steel making.

A very less gap is seen as the

company is able to inefficient energy saving measures.

All modernized factories should be

Eco-friendly keeping in mind the

Alarming Global issues

The company has failed in procuring a clean certification by Karnataka Pollution Control Board and have been slapped

with fines twice between 2009-2013

A very high gap is seen as the company

is not able to cope up with cleaner

ideas.

For long term

sustenance of a bus-Iness it is necessary to

maintainCourteous relationships

withPartners which includes

reasonableTimelines, negotiable

pricing, regularClearance etc.

Company executives most of the time act

impatiently, irrationally,

aggressively with partners especially when it comes to

procurements ending up to brittle

relationships with key people

A high gap is seen as company struggles to meet profits with relationships

THEORY PRACTICAL APP. REMARKS THEORY PRACTICAL APP. REMARKS