Modern Logistics for Steel Plants and Service CentersJ Rajagopalan, PesmelSamu Katkanaho, Pesmel OY

Modern Logistics

• Modern Logistics for Steel plants comprise following components for effective material handling, tracking, packing storage and shipping system:

• Yard Management system

• Industry 4 / IIOT

• Automatic EOT cranes

• AGVs

• Automatic Packing lines

• Automatic Storage and Retrieval system ( ASRS)

• Automatic shipping using man less cranes

• Safety PLC and Fencing with interactive Fence doors.

• We will discuss on the Automatic packing and ASRS in this presentation.

Automatic Packing line: Key Factors to select the Packing Line

• Unit Equipment Cost Vs Unit Operating cost• Unit equipment cost is far less than the unit operating cost like 1:8

• Savings on man power and packing materials which is the main advantage of automatic packing. For example our automatic packing lines need only material providers for replenishing the material.

• Preparation of packing materials insitu to optimize the material to the precise requirement with minimum lap.

• Unit Equipment cost of an automatic Packing line VS manual packing line• Automatic packing line is far cheaper than manual packing line over a period of time

• Saving on Life Cycle cost• Lifecycle cost is the predominant factor while selecting the packing lines/system

• Merits• Merits on Cost saving aspects Avoidance of man power, multi site packing, manual packing , excessive packing,

non standard packing, loose packing are the key benefits of Automatic and total quality packing line

• IOT and Digital packing concept with online monitoring• Digitalized equipment with online access and AMC

Total Cost Ownership (TCO)

0 1 2 3 4 5 6 7

Typ

ical

co

st

Time in years

Trend diagram: investment + operational / material costs

Pesmel investment +operational / material costs

Conventional investment +operational / material costs

Pesmel investment costs

Conventional investment costs

How to seal package properly

• According to experience:• It is challenging to seal the package in a way that it blocks the outside moisture and prevents air circulation

• According to research:• air circulation causes VCI disappearance

• VCI disappeared in 6 months

• TEW (through eye wrapping) is capable to seal the package completely making it air tight

air circulation

packing material

Traditional package TEW package

proper sealing

Technology with Air tight packing avoiding moisture

• New development: TEW with crepe paper• TEW (through eye wrapping) technology with crepe paper and PE film is a latest technology for rust prevention

• Crepe paper and PE film are applied simultaneously by wrapping train, which is able to handle two wrapping material at the same time

• The package is air tight, which means there is no need for VCI

TEW with crep paper and PE film Water drops on a TEW packed coil eye

Quality with TEW with Servo Drive

TEW coil with Crep paper

Manually packed coil

Environmental friendly

• Today’s packing materials qualify to environmental requirements

• Package is safe to open since packing materials do not contain any chemicals

• Packing materials are easy to recycle

• TEW packed coil opening takes 1-2 minutes

Cost savings by in-situ preparation of the packing materials

• Today’s Automatic packing lines are built by methods which are minimizing the usage of packing materials

• Materials are manufactured on line automatically according coil dimensions, which means that there is no waste in packing materials

• By using on line automatic manufacturing for packing materials according to coil dimensions instead of ready pre-cut materials, the unit cost of materials comes 20 – 30 % lower

• Average payback times are 1-3 years

Flexibility to use standard material

• Packing materials are standardized internationally and the standardized materials are the most cost effective for packing.

• One of the basic’s in TCO (Total Cost of Ownership) is that customer can change the packing material suppliers during life-cycle of packing lines

Efficiency by optimizing the consumables

Optimized material consumption in automated packing line

Average overlapping waste in manual packing

Semiautomatic packing with TEW

1.

2.

3.-6.

7.-9.

1 4

5

3

9876

Coil before wrapping

Radial strapping LabelingCircum. strappingOuter edge protection

HeadersInner body wrapping Crepe paper/stretch film

Inner edge protection

2

Outer Body wrapping

0 A

MM M M M

MMM

Automatic packing line

1.

9.

3.-6.

7.

8.

2.

1 4

5

3

9876

Coil before wrapping

Radial strapping LabelingCircum. strappingOuter edge protection

HeadersInner body wrapping Crepe paper/stretch film

Inner edge protection

2

Outer Body wrapping

0 A MA

AAA

M

A

M

A

M

A

Automatic Packing line for Auto body material

Conclusion

• Automatic packing could insure:• Saving on resources: Packing consumables, man power etc.

• Total protection to the Coated Coils

• Total safety

• More throughput per hour

• Phase wise implementation flexibility

• Standardization

• Automatic weighing, tracking and labeling

• Transporting the coils in the process of packing

Autobody material packing line:

ASRS : Objectives

• Automatic product handling, tracking, packing, storage and retrieval systems are optimized and rationalize

• Suitable material handling and routing system to cut costs

• To boost plant efficiency by removing the bottlenecks

• To avoid manual operation and minimize damages, errors and accidents

• To find out the convenient phases of implementation of the Yard management system (YMS)/ Warehouse Management System (WMS)

• To save on building, cranes, man power costs

• To insure max throughput with quality

Units for building mill logistics

• ASRS

• Carriage systems

• Interfaces to productions lines

• WMS – control system

Stacker Cranes, Control

• Distributed Fail safe Siemens PLC control system (short program cycle time)

• High dynamic and accuracy servo motion control high performance

• Brake energy regeneration energy supplying back to power net

• Totally integrated with WMS control system (Siemens platform)

Software Solutions

• WMS: Warehouse management system or Yard management system

• Mobile solutions RF, Voice: Voice responsive controls

• TMS: Transportation management system

• Bar-code and RFID: Tracking system

Digital Coil Cars

• Coil cars are able to follow the production plan and program and accordingly shift the coils automatically

• Coil cars of 50 T capacity

• Special plastic pads

• Minimum stroke and minimum lift and drop

• Smooth cradle lift and transfer of coils

• High speed cars with 3 M per second

• Higher through put capacity

• Supliments and compliments EOT crane and Stacker cranes with common YMS and WMS

• Can operate in crane shadow

• Can load coils to the infeed point of the process lines and pick up coils from the outfeed points of the process lines directly without depending on the eot crane

Floor Storage

ASRS

• Space 33 %

• Overhead crane bay for maintenance only

• 30 % worker for logistic/shift

• Automated logistic integrated with production

• No human influence on the process

• 50 % Power cost

• 26 % Operation cost

• Error free deliveries

• Helps increase response time to customer demands

• Automatic order preparing of custom deliveries

• Reduces excessive handling of coils

• Inventory can be accurately tacked at all stages

Traditional Lay-out

• Space 100 %

• Many Overhead cranes

• 100 % workers for logistics/shift

• Operator depending logistic of products

• Manual operations influence the production

• 100 % Power cost

• 100 % Operating cost

Typical of ASRS and Floor Storage System

13rd of April, 2012

ASRS

Conclusion

• Increased Efficiency and Higher Throughput per hour

• Improved Quality

• Faster Material Turnover

• Shorter delivery times and Cycle Times

• Least or No Bottlenecks

• Error Free In-time prompt Delivery

• Safe environment for the Product and Operators

• Early return on investment by investing on advanced user-friendly technology

• Feasible project and lay out considering Marketing, Process, Material handling and Storage and Retrieval aspects so as to have an Integrated, Cost effective and efficient lay out with optimum equipment and manpower

• Flexibility to expand in modules and phases

Dynamic Simulation/Video

• Example of Rolling Mill Facility simulation: