Management of Internal Transport in Steel Plant...

Management of Internal Transport in Steel Plant Steel plant handles a huge amount of materials during the production of steel products. This huge amount of the materials is to be moved during the several stages of production. Various types of movements of men and materials which are taking place in a steel plant are described below. The materials movement starts with the receipt of raw materials and fuels which are to be stored and sent to the processing units for their processing. The intermediate products as well as semi-finished products need to be moved for the next stage of processing in the downstream units. The finished products and byproducts are to be dispatched to various customers. Waste products which are produced during processing are to be moved to the waste product processing units or to the dumps. Also steel plant requires store and spares, equipments, consumables, lubricants, utility items etc. in huge amounts which are to be received, stored and moved to the processing units. Steel plant also needs a large amount of water which is required for cooling, processing and many other purposes. This water is also to be received and transported to the places of need. Further a large number of people work in the plant who come to work in various types of vehicles. This vehicular traffic also consists of a big movement in the plant. The total cost of transportation of men and materials inside the plant is quite substantial and hence need a comprehensive and integrated management to keep it under control. Steel plant uses several means of transports for these movements. These movements include rail transport, road transport, conveyor transport, and pipe line transport etc. for inter shop movements while cranes, mono rails with trolleys, fork lifts, roller...

Stores Management

Stores Management Store is an important component of material management since it is a place that keeps the materials in a way by which the materials are well accounted for, are maintained safe, and are available at  the time of requirement. Storage is an essential and most vital part of the economic cycle and store management is a specialized function, which can contribute significantly to the overall efficiency and effectiveness of the materials function. Literally store refers to the place where materials are kept under custody. Typically a store has a few processes and a space for storage. The main processes (Fig 1) of  store are (i) to receive the incoming materials (receiving), (ii) to keep the materials as long as they are required for use (keeping in custody), and  (iii) to move them out of store for use (issuing). The auxiliary process of store is the stock control also known as inventory control. In a manufacturing organization, this process of receiving, keeping in custody, and issuing forms a cyclic process which runs on a continuous basis. The organizational set up of the store depends upon the requirements of the organization and is to be tailor made to meet the specific needs of the organization. Fig 1 Main processes of a store Store is to follow certain activities which are managed through use of various resources. Store management is concerned with ensuring that all the activities involved in storekeeping and stock control are carried out efficiently and economically by the store personnel. In many cases this also encompasses the recruitment, selection, induction and the training of store personnel, and much more. The basic responsibilities of store are to act as custodian and controlling agent for the materials to be stored, and to provide service to users...

Materials Management

Materials Management Materials are the physical items that are needed for producing goods and services. Materials can be raw materials, components, sub-assemblies, parts, tools, consumables, services, or any other type of item. Materials are one of the main inputs to a process, and typically account for a major portion of the  costs. The significance of materials to the efficient operation of organizations is increasing more than ever. Shortages of raw materials, components, and products have been experienced on a global scale. With demand exceeding supply, the price of many materials has increased significantly. Every organization requires raw materials and other materials for its operation that must be acquired, stored, and handled, and there is always necessity for enough stocks of materials and equipment to be maintained for immediate consumption and for short and long term requirements. These stocks or inventory are cash in kind that need utmost care. Therefore the safe custody, up keep and maintenance, handling and proper supply of the materials are of great importance. Materials management is simply the process by which an organization is supplied with the goods and services which it requires to achieve the objectives of buying, storage and movement of materials. It is concerned with the flow of materials from suppliers to the organizational stores and to the user in the production department. It is related to planning, procuring, storing and providing the appropriate materials of right quality, right quantity at right place in right time so as to coordinate and schedule the production activity in an integrative manner in the organization. It includes activities of purchase of various types of materials, manage and control of their storage, and flow and supply of these materials to various places. The materials planning, purchasing, inventory planning, storage, inventory control,...

Inventory Management and Control...

Inventory Management and Control  In an organization there are stock of finished products, semi finished products, in process materials raw materials, spare parts, operating parts, fuels, and consumables. The collective name of these entire items is inventory. Inventory occupies the most strategic position in the structure of working capital of the organization. It constitutes the largest component of current asset. The turnover of working capital is largely dependent on the turnover of inventory. It is therefore quite natural that inventory which helps in the maximization of profit occupies the most significant place among current assets. The maintenance of inventory means blocking of funds and so it involves the interest and opportunity cost to the organization. The inventory cost is not only interest on stocks but also cost of store building for storage, insurance and obsolesce.   Hence it is necessary that a great emphasis is placed on inventory management and control. The primary objectives of the management and control of inventory are as given below. To minimize the possibility of disruption in the production schedule for want of raw materials, consumables, spares and other stores items. To keep down the capital investment in inventories. To ensure sufficient stock of semi finished products so that there is no disruption in the production schedule. To ensure adequate stock of finished product to meet the delivery requirement of the customer. It is essential to have only the necessary inventories. Excessive inventory is an idle resource which is a matter of concern. The investment in inventories is to be just sufficient and is to be at the optimum level. The major dangers of excessive inventories include the unnecessary tie up of the organizational funds, excessive carrying cost, and the risk of liquidity. The excessive level of inventories consumes the...