AMR Schemes

AMR Schemes  Acronym AMR stands for additions, modifications and replacements. In a steel plant which is operating for a number of years, implementation of AMR schemes is a necessity if the efficiency and productivity of the plant is to be maintained over a large numbers of years. Expenditures on AMR schemes are capital in nature and usually these expenditures are not very large and they are small in nature. However these expenditures change the capital structure of the organization. This is in contrast to the maintenance activity in the steel plant where equipment parts or equipments are replaced and the expenditures incurred during maintenance are part of the operating expenses of the plant. Necessity of AMR schemes in an operating steel plant occurs due to the following reasons. The design deficiencies become visible once the steel plant has been operated for a number of years. These deficiencies come in the way of plant being operated at the desired efficiency and productivity levels. For removal of these design deficiencies, some additional equipment may be needed or some modifications in the process may be necessary. May be some equipment need replacement with different but similar equipment. AMR schemes help management in removing design deficiencies and bring back the steel plant to the designed efficiency and productivity levels. All the steel plant equipments donot have the same expected life. Some equipment has a long life while life of some other equipment can be enhanced by replacing some worn out components during maintenance. But in some the life is not long, nor can it be increased by maintenance. Such equipment become  a weak link in obtaining the desired efficiency levels and the productivity levels of the process since the break downs in these equipment increase drastically once their...