Determination of Product Cost in a Steel Plant...

Determination of Product Cost in a Steel Plant The term ‘product cost’ means the amount of expenses [actual or notional] incurred on or attributable to the production of the specified product. Product cost refers to the costs used to produce the product. It is the measurement in monetary terms of the amount of resources used for the purpose of production of the product. For effective monitoring, specific product cost (cost per unit of product produced) is usually determined. A steel plant consists of several processes which are integrated. These processes produce many intermediate products as well as semi-finished and finished products. Many of intermediate products and semi-finished products along with all the finished products are saleable products. There are also a large number of by-products which are being produced from these processes. These by-products are used either internally within the plant or are being sold to different customers. In such a situation, the cost of the saleable products is determined in the steel plant in several stages. Each stage has a product for which the cost is determined. This product may be a saleable product or may be an intermediate product used as a raw material for the next stage. In case the intermediate product of a certain stage is the raw material for next stage then the determined cost of the product along with the cost of handling losses for the product is assigned to the next stage to the extent the product is consumed in the next stage. The product cost in a steel plant is determined the way it is done in any other manufacturing organization. The total cost of producing a product basically consists of two components (Fig 1) namely (i) fixed cost, and (ii) variable cost. Fig 1 Component of...

Industrial Heating Furnaces and their Types...

Industrial Heating Furnaces and their Types A furnace is equipment which is used as a reactor, or for melting of metals for casting, or to heat materials to change their shape (e.g. rolling, forging etc.) or properties (heat treatment). Industrial furnaces are mainly used for carrying out the process or for the purpose of heating. Furnaces which are used for carrying out the processes are sometimes known as reactors. Industrial furnaces which do not ‘show colour’, that is, in which the temperature is below 650 deg C are sometimes called ‘ovens’. However, the dividing line between ovens and furnaces is not very sharp. As an example, coke ovens operate at temperatures above 1400 deg C. In the ceramic industry, furnaces are called ‘kilns’. In the petrochemical and chemical process industries, furnaces are termed ‘heaters’, ‘kilns’, ‘afterburners’, ‘incinerators’, or ‘destructors’. The furnace of a boiler is known as its ‘firebox’ or ‘combustion chamber. Industrial heating furnaces are insulated enclosures designed to deliver heat to loads for many forms of heat processing. Furnaces used as reactors, and melting furnaces require very high temperatures and can involve erosive and corrosive conditions. Shaping operations need high temperatures to soften materials for processes such as forging, swaging, rolling, pressing, bending, and extruding etc. Heat treating operations need midrange temperatures to physically change crystalline structures or chemically (metallurgically) alter surface compounds, including hardening or relieving strains in metals, or modifying their ductility. These include aging, annealing, normalizing, tempering, austenitizing, carburizing, hardening, malleabilizing, nitriding, sintering, spheroidizing, and stress relieving etc. Industrial processes which use low temperatures include drying, coating, polymerizing, and chemical changes etc. Industrial heating operations encompass a wide range of temperatures, which depend partly on the material being heated and partly on the purpose of the heating process and...

Energy Efficiency and Iron and Steel Production Sep09

Energy Efficiency and Iron and Steel Production...

Energy Efficiency and Iron and Steel Production  In the recent years, the need for a more rational and efficient use of energy has emerged as a strategic and urgent issue. Such a necessity is particularly perceived in the iron and steel production, not only because of the increasing costs of energy, but also as a consequence of the competition, which stresses some features of the process and its final products (e.g. cost and quality). Also, the rational use of the energy resource may be regarded as a twofold issue, a first aspect being related to the achieved consciousness of the limited availability of energy, regarded as a source, and the second being represented by a mature appreciation of the costs born to procure energy. Globally, ever increasing consumption of energy has gone hand in hand with rising concerns about its conservation. Apart from being expensive and prone to sudden price fluctuations, the overwhelming majority of energy sources are non renewable. Therefore, the conservation of energy is considered vital not just to avoid wastage of a precious resource, but also to slow down the rapid depletion of coal, oil, and natural gas resources. However, with the environmental movement gaining ground in the past 30 years, the ramifications of unsustainable energy use are no longer confined to economics alone. As the bulk of greenhouse gas (GHG) emissions are a result of fossil fuel burning, conservation of energy is today intrinsically linked to the climate question. As halting fossil fuel use is not an option without the viability of alternative sources, the only way to reduce energy use and manage emissions is therefore to maximize its efficiency. Since the iron and steel industry presents one of the most energy intensive sectors within the economy of any country,...