Quality Management of Iron ore and coalQuality Management of Iron ore and coalby
Raw Material Division of Tata SteelRaw Material Division of Tata Steel
R R Srivastava S Mohan Rao Shailesh Verma Rajesh MukherjeeR R Srivastava, S Mohan Rao, Shailesh Verma, Rajesh Mukherjee, B V Sudhir Kumar, Partha Das
EOQ Congress 20-23 Jun 2011
Raw Material Division
EOQ Congress 20 23 Jun 2011Budapest, Hungary
Contents
Organizational profile
o Role of Raw Material Division (RMD) in value chaino Salient features of RMD of Tata Steel
Integrated Quality Assurance System in Tata Steelo RMD’s roleo Need for QA in RMDo QA functions in RMD
The Quality StoryB i E i t d d f i i i lito Business Environment and need for improving iron ore quality
o Effect of TQM implementation in achieving quality targets
Th QA P i RMD T t St lThe QA Process in RMD Tata Steel
Raw Material Division 2
Tata Steel – A member of Tata Group
98 i
The Tata Group• Founded in 1868 by Jamsetji Nusserwanji Tata• 98 companies
• Sixth amongst the ‘World’s Most Innovative Companies’ – Business Week (2008)
Tata Motors
Largest auto company in India one of the largest in the
Tata Tea 2nd largest branded tea company in the worldMotors India, one of the largest in the
worldcompany in the world
Tata Steel Group
8th largest steel producer in the world (24.4MT)
Indian Hotels (Taj) Largest hotel chain in Indiap ( )
Tata Power Largest power generating supplier (private sector) in India
Tata Consultancy Services
Asia’s leading and India’s largest software service providerp
Tata Chemicals
Worlds largest producer of synthetic soda ash
Tata Communications
Largest wholesale voice carrier in the world
Raw Material Division 3
Tata Steel Group
• 8th largest steel producer in the world• Winner of the prestigious DEMING Application Prize 2008
UK & Ireland Netherlands
• Has presence in 5 continents
• 4 Production facilities• Capacity:14 mtpa• 16 manufacturing locations• 33 distribution centres
• 1 Production facility• Capacity: 6.8 mtpa• 6 manufacturing locations• 3 distribution centres
USADistribution centres
• 33 distribution centres • 3 distribution centres
Thailand• 3 Production facilities
ProductionProjects
EU (Excluding UK & Netherlands)• 19 manufacturing locations
• Capacity: 1.2 mtpa• 3 distribution centres
South East AsiaIndiaProjects• 13 distribution centres • 1 Production facility
• Capacity: 0.6 mtpa• 4 distribution centres
• 1 major production facility• Capacity: 6.8 mtpa/
10mtpa by Fy12• 22 distribution centres
Jamshedpur
Raw Material Division 4
Tata Steel India profile
IndiaIndia • 100 year old & Asia’s first integrated steelIndiaIndia 100 year old & Asia s first integrated steelcompany
• One of the most profitable companies inDelhiDelhi
• One of the most profitable companies inthe world
L t li t th I di t bilKolkataKolkata
JamshedpurJamshedpur
• Largest supplier to the Indian automobileindustryMumbaiMumbai
KolkataKolkataMarketing & Sales Marketing & Sales Head QuarterHead Quarter
• Spends equivalent of about 5% of its netprofit for social welfare activitiesChennaiChennai
Raw Material Division 5
Role of RMD in the Value Chain of Steel Making
Iron Making SteelM ki Rolling Marketing
& Sales CustomersRaw Materials
Demand Flow
o a g Making g & Salesa ate a s
Material Flow
Iron Ore (Ore, Mines &
Quarries)Sinter Plant
Fines Ore (60%)
Sinter
• Captive Raw Materials:
Clean Coal (West Bokaro)
)
Hot MetalBlastFurnaces
Lumps Ore (40%)
•100% Iron Ore• 50% Coal
Clean Coal (Jharia)
Captive Raw Materials
Coke PlantCoal
Coke
• 50% Coal is imported.
• Quality is Decoupled at CSIMaterials
Coke Sinter & IronPurchasedMaterials
FluxesCoal
Quality is Decoupled at CSIStage.
Raw Material Division 6
Coke, Sinter & Iron
Salient Features of Raw Materials Division
• Indian Coal Mining Industry is 3rd largest in the world and RMD is the national benchmark in Coal Mining and Beneficiation.
• Indian Iron Ore Mining Industry is 4th largest in the world. RMD is the national benchmark in Iron Ore Mining and Beneficiation.
• RMD is pioneer in Indian Mining Industry with close to 100years’ of operations
First Coal Beneficiation Plant in India
India’s deep most (650 meters) underground Coal Minep ( ) g
Having state of the art beneficiation facilities for iron ore
Raw Material Division 7
Iron ore and coal mines of Tata Steel1. RMD’s purpose is to supply two
key raw materials; Iron Ore andClean Coal to CSI Division
2.8 mtpa
1 5 t
Coal MinesJharia
2. It provides: • Security of Raw Materials
1.5 mtpa
I O Mi
Jamshedpur PlantNoamundi
• Significant Cost Advantage in terms of production and freight cost
Joda 8.4 mtpa5.2 mtpa
Iron Ore Mines
India
• (enabling Tata Steel to become one of the low cost producers of Steel)Steel)
Raw Material Division 8
ral
ce der HR
Integrated QA system in Tata steel and RMD’s role
Procurement‘Inductive’ ParametersR & D
Gen
erSe
rvic
prov
id
ClaimsManufacturing Units
E d C
LPRM CSI
Inspection
End CustomerFP FeedbackInspection
SatisfactionSurveyBought
CoalCoal
Infrastructure (Superficial): Utility, IT, Automation, HR, Shared Serv
‘Deductive’ Parameters
ect
vice ider
Raw Material Division9
( )
Infrastructure (Basic): Engg Projects, Technology
Dire
Serv
prov
Need for QA in the Division
Captive mines offers significant cost advantage in steel makingTo improve productivity in hot metal stage
Challenges remain in converting highly heterogeneous ore types from the mother earth into homogeneous product to meet customers’ quality
customer wants not only improvement in mean but also reduction in variation
requirement while IMPROVING MINE LIFE
Heterogeneous Raw Coal Homogeneous clean coal
27
31
Good
19
23% USL
15
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
Target UpperLimit CCAshDate
Raw Material Division 10
Target UpperLimit CCAsh
Need for QA in the Division
Captive mines offers significant cost advantage in steel makingTo improve productivity in hot metal stage
Challenges remain in converting highly heterogeneous ore types from the mother earth into homogeneous product to meet customers’ quality
customer wants not only improvement in mean but also reduction in variation
Heterogeneous Raw Coal Homogeneous clean coal
requirement while IMPROVING MINE LIFE
Heterogeneous Raw Coal Homogeneous clean coal
27
31Good
19
23%
USL
15
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
Target UpperLimit CCAshDate
Raw Material Division 11
QA functions in RMD
QA Modules
Pre-Prodn QA QA during Production & Despatch After delivery relationship
Sampling & InspectionModulesin RMD
Sampling & InspectionExploration, Ore Body
Modeling & Mine planning Mining, processing & Transport Customer meet, feedback
Mine Planning & Mining
Processing Plant Blending & Dispatch
ObjectiveTo know the quality & Quantity of deposits To conduct in-process
check and feedback to operator for control
Pre-despatch control/ checks and feedback to customer
Method Borehole/blast hole/mine face sample
Stream sampling at fixed intervals
Sampling of despatch materials
Feedback used in
Mining and Processing
fixed intervals
Processing and Mining Processing and CSI
Raw Material Division
in
Raw Material Division 13
Business Environment and need for improvement in iron ore quality (Fy01 onwards)
Being a cyclic industry, Steel faced one of the greatest downturns during late 90’s
Tata Steel took a bold initiative to grow, create value and become market leader
The customer, CSI decided to increase production by:
• Maximizing BF productivity
• Expansion of Blast Furnace capacities
Requirements from Raw Materials Division:Requirements from Raw Materials Division:• Improve quality for higher Blast Furnace productivity• Meet increase in demand of Iron Ore from captive source
Raw Material Division 14
Improving iron ore quality: Fy02-05
Quality
Business Objectives Strategies
Quality
Reduce Alumina in Iron ore finesImprove Beneficiation Capability
Why Challenging?
• Indian iron ore having higher alumina, mostly interlocked and class for higher order of
beneficiation to upgrade
• Lowering of alumina increases yield loss and reduces mine
• Limitation in beneficiation process capability
TQM Methodology
Problem Solving (PS) and Task Achieving (TA)
Raw Material Division 15
Iron Ore : Business Environment (Fy05)
Domestic demand for steel was estimated to grow @12%.Estimated capacity of 77 mt in IndiaEstimated capacity of 77 mt in Indiaby FY10
GOO
Tata Steel decided to go for brown field expansion:• 6.8 mtpa by FY09
D
Req irements from RMD
• 10 mtpa by FY12
Requirements from RMD• Chart out expansion plans• Reduce alumina for higher Blast Source :IISI
Furnace productivity• Meet increase in demand of Iron
Ore from captive source
Raw Material Division 16
Ore from captive source• Acquire/Defend mining leases
Improving iron ore quality: FY06-till date
Business Objective
Reduce Fines Alumina further while increasing input alumina
Input Alumina
2.0unit0.3unit 0.9unitYear
Standard deviation in fines ore alumina
Year
TQM Methodology
Output AluminaPresent FuturePast
Standard deviation in fines ore alumina
TQM Methodology• PS/TA, Theory Of Constraint for
improving mean and • DM implementation for reducing Year
Raw Material Division 17
DM implementation for reducingvariability
Year
Improvement in clean coal ash
Raw Material Division 18
Raw Material Division 19
QA process in RMD : overview
1. Understand Customer requirements, stated and unstated1. Understand Customer requirements, stated and unstated
2 Link KPIs which help serve them directly or indirectly- improve KPI2. Link KPIs which help serve them, directly or indirectly- improve KPIstatus
3. Develop processes to serve long term and short term needs of customer :Management System Chart for QA
4. Customer complaint handling and customer claims/ feedbacks- CAPAg
Raw Material Division 20
Customer requirements: Linkage with departments
Plannin
NR
D
QSE
QA
CD
Washer
Washer
Powe
syste m
RM
TG
P & S
Sec. Pr
Logisting
D ry2
ry3 rms
G S od cs
(P) Clean coal Qty
(Q)Cl l h(Q)Clean coal ashwithin 14.8-15..2%
(Q)Clean coal moisture <10.2%
CustomerrequirementsAs captured (Q)Clean coal
VM>/=24.5
(Q)Clean CSN>/=4
As capturedfrom Claims, Feedback,MOU,and ABP work shop,
Clean coal fluidity range
(C )Clean coal Cost
(D) Clean stock at Jsr
,
(D) Clean stock at Jsr
(D) Minimum one rake supply per day
Raw Material Division
Clean coal size
MSC f Q lit A i OMQ (Ch t N MSC/QA/OMQ 1 R 03 dt 120710)
Management system chart for QADepartment Inputs from Customer/External G l Mi i B fi i ti CheckMine D liTechnologyMSC for Quality Assurance in OMQ (Chart No. MSC/QA/OMQ-1 Rev. 03 dt 120710)
ning
LongtermBusiness Plan
Capture SpecificQuality
Requirement
AnnualBusiness Plan
Department
Process Step
Inputs from Customer/External
agencies/BA Group of VPRM
GMO NRD Mining Beneficiation Job Standard/ DocumentCheck Point/KPIMine Planning Delivery
CustomerRequirements(Qnty/Qlty/Cost)
5 yrsproduction
plan
Regular
R&D and RMTG
New requirementTDC andprocess
capabilitycheck
No
Inform to Customer
ConductBeneficiation/mineralogical&metaluurgical test works
ConductTrial;
Suceesful?
Yes
No
Pre-
Min
ing
DepartmentProcess Step
Inputs from Customer/Externalagencies Geology Mining Beneficiation Check
Point/KPIMine
Planning DeliveryTechnologygroups
Pre-
Min
StatutoryRequirements(IBM,MoEF,SPCB, DGMSState Govt.)
Ore bodymodel&
blockestimates
MiningOperation&
EquipmentMaintenance
MoU withCustomer (CSI)
AnnualOperatingPlan
AnnualExcavation
Plan
Quarterly/ExcavationPlan
Mine Survey
MonthlyExcavationPlan
DespatchSchedule
WetROmAl2O3%
Dry ROM Al2O3%
Combined ROMAl2O3%
Hard ore % to WetPlant
QEP, MEP(File JEIM 06)
AEP(File : REC/JEIM/PCL GEO
QC/FF 05&
REC/JGM/GEO/FF 708)
Regular
capacityCheck
Yes with minorchanges/modifications
PM
inin
gin
g
QAP
Min
ing
Blasthole sampling& Analysis
DumpingSchedule(Ore Mix andAlumina%
ProcessingPlants
Drilling
Blasting
Shovelling+Truckingto Wet andDry
Plants
1) Process validationover fiixedinterval2) Processof change managementin case of change in man, machine,methid,material
1) Identifyprocessparamters from FMEA and control Conveying
Stacking
Plant
Quanityof WetROM
Quantity of DryROM
Quantity ofOverburden
Slime Quality (Fe%&Al2O3%)
Monthly AluminaBalance
JEIM/GEO/225
AnalyticalRegister (L 10)
Feedbackonschedule
compliance
Proc
ess
g &
tatio
n
PR
O
Proc
essi
ng
ProcessingPlants
Productionas percontrol
plan/processchart/OCP
) yp pplan;Monitor and control key processparamtersthroughdaily management
2) Identify improvementneeds in case of gaps/chronicdeviations
Sample collection& Preparation
Chemical analysis
Physical Analysis (particle sizedistribution inproducts, slime andrejects, moisture inproducts, pulpdensity inslime, soildpercent inhydocylone feedandoverflow)
Conveyingof Products
(Lump,WetFines,Dry Fines,
CRFO, RFO) Rake LoadingandDespatch toWorks
Analytical register (L 10)
JEIM/GEO/215
JEIM/GEO/220
JEIM/GEO/202
Process/productdeviations toupstreamand downstream
processes
Ble
ndin
Tran
spor
t
omer
d ling
CE
Des
patc
hd
Chemical analysis(Al2O3%, Fe%, SiO2%and Phos%)
Provide Schedule /BlendPlan forRake Loading
Isproductqualitywithindesired level
Yes
NoDefectClassification
(HighAlumina,oversize/undersize%,
others)
UsePossible
?
Yes
No
Divert and Stack,Barricade as NonconformingProducts(>2.60%Al2O3 for WetFines, >2.2% for DCM>1.80% for Lump
Report to Customer(Date, Rake No, No..of Wagons,
Tonnage,Moisture,Chemical analysis and particle size
distribution)
Al2O3% in WetFines, Al2O3% in
Dry FinesAl2O3% in Crushed
Fines, Al2O3% inLump, (Wet,Dry(TEMPL), MSP
products
O/S% (+10mm) inIorn ore Fines
U/S% ( 10mm) inLump
ICQCReport(REC/JEIM/PCL GEO QC/FF 11)
First InformationReport(FRM/JEIM/PCL GEO QC/229)
naly
sis
of c
usto
com
plai
nt a
ndco
mpl
aint
han
d SS
ent
Ana
lysi
s of
cus
tom
er c
ompl
aint
an d
com
plai
nt h
andl
ing
.Complaint
Acknowledge
Registration ofCompliant
Inform concerned Dept/Person
Classify the defects
Form Team
Is site visit required
Review FMEA/ Technicalevaluation
Analyze rootcause
CAPA/ConductTrail
No
Review of ProblemYes
No. of CustomerComplaint/COPQ
mpr
ovem
ent
Trai
ning
A n c
STEPS
Raw Material Division
Proc
ess
Impr
ovem
e
and
Trai
ning Successful?
Revise SOP, Incorporate in process chart forstandardisation, Update control plan
Train WorkmenInformCustomerandClose Complaint
YesNo
Proc
ess
Iman
dT
Quality assurance in pre-mining stageORE DEPOSIT
Topography, Mine Survey Data (Digital Terrain Model)
Geologic Data, Borehole collar, litho assay(Digital Terrain Model) assay
BOREHOLE DATABASEEXPLORATION
CREATION OF SECTIONS & INTERPRETATIONS
Ore body Modeling Block Modeling
Ultimate pit design
Mid-bench Slices Extraction & preparationEVALUATION
Resource & Reserve Calculation
PLANNING
Long-term Excavation Planning
PLANNING&
GRADE CONTROL
Short-term Excavation Planning
Daily Ore Scheduling
Raw Material Division 23
Schedule Monitoring
QA process in mine grade control (short term)
AnnualExcavation
Plan
QuarterlyExcavation
Plan
MonthlyExcavation
Plan
Integration of blast hole quality database with GPS-TDS: a noble approach for online ROM monitoring
Blastholesampling &
a
sampling &Analysis
Prepare Daily Monitor Input
Face mapping
Prepare DailySchedule
(blend plan)
Monitor Inputquality in fixed
intervalsDiscard/Divert to Stock
Y d/ R j t D
Reworkpossible?
OK?
Y
No
Yard/ Reject Dump
Stop dumping till correction takes place
ProcessingPlants
Yes
Continue to feed to crushers
Raw Material Division 24
Plantsto crushers
Daily management practices for controlling ROM quality
QA processes in beneficiation plants and transportation
ProcessingPlants
Conveying of products
Stacking
Bin
Samplecollection & Physical of products and tailingsPreparation
Chemical analysis
ConformingProducts ?
Yes
NoClassify Defect Rework
Possible?Divert and Stack, Barricade as
Non-conforming Products
No
Yes
Rake Loading and Despatch to
Provide Schedule / Blend Plan for Rake Loading
Yes Yes
Issue certificate of quality to customer
Raw Material Division 25
Works customer
Customer Complaint Handling in RMDDOC# QEHSMS/430/G1002 Re 02
STEP CUSTOMER/CUSTOMER CONTACT PERSON PRODUCTION UNIT CHECK POINT
DOC# QEHSMS/430/G1002 Rev: 02Effective Date: 16.04.2009
Complaint
Acknowledge
Registrationof Compliant
Inform concerned Dept/ PersonReceipt of
complaintClassify the defects
Form Team
Is site visit required
Understandingthe problem
Review of Problem Yesq
Review FMEA/ Technical evaluation
the problemNo
Analyze root cause
CAPA/Conduct TrailCorrective and Preventive Action
Complaint
Successful?
No
Revise SOPClosing of C li t
Yes
Raw Material Division 26
Complaintresolution time
Train WorkmenInform Customer and
Close Complaint
Compliant
ThanksThanks
TTh kk YTThaank You
Raw Material Division