Execution of Copper Rod Plant

Execution of A Copper Plant –A Case Study Securing, Planning, and Executing Technical Consulting Assignment CDC-CTC Practical Session on 5th June 2011 @9.30 am – 13.45pm Consultancy Development Centre India Habitat Centre Lodhi Road, New Delhi

CONTENTS Project Management Project Overview Securing Conceptualization Process Technology Implementation Design & Engg. Flow Chart Engineering/Scheduling Basic Engineering Detailed Engineering Procurement Services Project Planning, Monitoring & Control Flow Chart Project Management Inspection & Expediting Construction Supervision Assistance in Plant Commissioning Measures taken for Fast Track Implementation Conclusion

PROJECT MANAGEMENT “It is an art and science of converting a vision into reality.” Project Management Institute (PMI), USA, describes project management as the application of knowledge , skills, tools, and techniques to project activities to meet project requirements.

PROJECT MANAGEMENT ,[object Object]

In today’s competitive business world project management enable to deliver high- quality results on time and within budget.

Good leadership, effective systems and making good judgments are vital in project management.,[object Object]

Delay in projects had cost Government Rs. 55,175 Crorescontd…

Essentials for A Good Project Management Understand the role of project. Aspire to succeed. Plan for success. Manage your costs. Lead and inspire your team. Turn your plan into reality . Maximize project learning .

Birla Copper Plant Source: Birla Copper Web site http://www.birlacopper.com/

Salient Features Source: Birla Copper Web site http://www.birlacopper.com

Securing Birla group approached us in June 1992 for setting up of a Copper Foil Plant. It was suggested that with financial reform in place, it is prudent to set up an Integrated Green Field Copper plant to produce copper cathodes and value added products like CC Rods and foils. We provided the basic information like; demand-supply, capital cost, status of technology, etc., enabling Birla Group to make a decision. Birla Group commissioned us for the preparation of TEFR, Process selection & Site selection reports in August 1992.

Project Proposal Report Tentative process route Tentative product-mix Broad major technological and auxilliaries’ facilities Indicative requirement of raw materials Indicative requirement of services Indicative requirement of land Estimation of tentative capital costs

Site Selection Study Country wide survey by a team of engineers to identify the various sites based on the following criterion: Proximity to sea or port for import of large quantities of Copper concentrate : Specific consumption around three times the weight of metal produced. Assessment of availability of arid & non- agricultural land both for the plant , waste dump & housing. Assessment of infrastructure: Rail, Road, Port, Power, & Water. Proximity to a Chemical & fertilizer plants for disposal of 1,300 t/day of sulphuric acid produced. Assessment of availability of skilled & unskilled man power. Estimation of differential costs , Financial and Cost benefit analysis. FINAL SELECTED SITE: Lakhigam, Dahej, Dist. Bharuch, Gujarat – See the Map

Plant Location Dahej, Dist. Bharuch, Gujarat

Selection of Technology The worldwide available Copper plant technology were evaluated based on the desk study and interaction with various technology, know-how suppliers. Order of preferences were given and Outokumpu Flash Smelting Technology for Copper plant and Southwire for C C Rod plant recommended. Birla Group had discussions with the know-how supplier and also visited various Copper smelters worldwide. Decision to set up a plant was taken in mid 1994.

Techno-Economic Feasibility Report (TEFR) Finalization of product-mix Finalization of site Finalization of process route Development of project concept along with process-cum-material flow, and Plant Layout Finalization of services and infrastructures requirement Estimation of capital costs, production costs and financial parameters and sensitivity analysis. In the context of the time, when the disposal/ marketing of such a large quantities of sulphuric acid produce was a problem, Birla Group was advised for value addition by converting it to phosphoric acid and fertilizer.

Technology Source: Birla Copper Web site http://www.birlacopper.com

Major Plant Units Concentrate Receipt and Storage Smelter plant Refinery plant Sulphuric acid plant Precious metals recovery plant C C Rod plant Oxygen plant Effluent treatment plant By others: Jetty Phosphoric acid plant DAP Fertilizer plant Coal Based thermal Power plant

Brief Process description Copper is extracted from various ores (Sulphideand /or oxide) or recovered from waste and scrap. Copper is recovered from its sulphide ores by a pyro-metallurgical extraction process in which the copper concentrate ore is smelted in a furnace to drive off excess sulphur and to produce copper matte. The matte is treated in a converter to eliminate most of the iron and sulphur and produce blister copper. The blister copper is fire refined in a furnace to produce fire-refined copper anodes. Anodes are further refined by electrolysis to produce high grade copper. Marketable products received from this process are called Copper cathodes. In an additional plants cathodes are further cast into rods.

Captive Jetty Pipe conveyor 3.2 km long, Capacity: 1,800 t/hr. Source: Birla Copper Web site http://www.birlacopper.com

Flash Furnace Source: Birla Copper Web site http://www.birlacopper.com

Converter Furnace Tapping Source: Birla Copper Web site http://www.birlacopper.com

Anode Furnace Source: Birla Copper Web site http://www.birlacopper.com

Anodes Casting Source: Birla Copper Web site http://www.birlacopper.com

Electro Refinning Source: Birla Copper Web site http://www.birlacopper.com

Refinery Crane Source: Birla Copper Web site http://www.birlacopper.com

Stripped Copper Cathodes Source: Birla Copper Web site http://www.birlacopper.com

Copper Cathodes Source: Birla Copper Web site http://www.birlacopper.com

Continuous Cast Copper Rod Plant Source: Birla Copper Web site http://www.birlacopper.com

Oxygen Plant Source: Birla Copper Web site http://www.birlacopper.com

Phosphoric Acid Plant Source: Birla Copper Web site http://www.birlacopper.com

First Copper Rod Despatch Ceremony

First Copper Rod Despatch Ceremony Contd…

Design & Engineering Flow Chart Quality Control Award of Contract Tech. Data from Suppliers

Basic Engineering The offers for technology was obtained from : Outokumpu, Lurgi, Mitsubishi, MESCO. We also provided assistance in selection, and participation in discussions to Birla Copper. Outokumpu, Finland was selected to provide Technical know-how and basic engineering. Effective date of contract 28th February 1995. Kick-off meeting held in March 1995 at Bangalore - to decide: Design criteria Supply of Complete Basic Engineering in 8 months. Preliminary civil & building load data by June 1995. Frequent interactions at monthly interval were held during the preparation of basic engineering.

Engineering/Scheduling Concurrent Engineering concreting An optimistic & Compressed schedule was drawn to achieve various milestones: Basic Engineering Detailed Engg. Construction. Erection Commissioning

Detailed Engineering Preliminary data on Plant layout, load data for major buildings and plant & equipment was obtained from Outokumpu June 1995. An engineering team was deputed to the office of Outokumpu, Finland in June 1995 and Southwire, USA in Nov. 1995. Civil drawings for construction at site were released from Sept. 1995. Site leveling work started from Sept. 1995 First piling work started from Dec. 1995 - See Photograph. Foundation stone was laid by Mr. K M Birla on 26th January 1996. Quantity of Civil Works RCC: 87,000 m 3. Quantity of Structural Steel : 12,500 tonnes.

Procurement Services Package concept of implementation was conceived . Total number of packages - 120: Civil Structural Mechanical Electrical Erection Long delivery items, action taken immediately on receipt of basic engineering in July 1996: Oxygen plant Steam dryer Polymer Concrete Electrolytic cells. Waste heat boiler. Anodes Casting Machine.

Procurement Services contd… Procurement activities: Preparation of technical specifications Issue of tenders Receipt of offers Discussions with vendors Evaluation of offers Placement of offers by the client. Time taken for most of the packages for all the above activities: 4-6 weeks.

Project Planning, Monitoring & ControlFlow Chart PROGRESS/ STATUS /CRITICAL ACTIVITY REPORTS MIS / HOLD-UP/ SLIPPAGE REPORTS

Project Management Master schedule for implementation was prepared on Primavera software. Schedule was monitored on monthly, fortnightly, and weekly basis. Entire project schedule was broken up in more than 1,000 activities based on work break-down structure. Project schedule output was in the form of 3-level reports: Level – 1 – Overall summary for top management. Level – 2 – Package wise details for senior management. Level – 3 – Break up of each activity for working level. Detailed monthly progress reports giving status for: Detailed Engineering, Procurement Services and site construction. Deviation list ,areas of concern & actions for corrective measures for management of Birla Group.

Inspection & Expediting A special Task force comprising of six(6) Expediting Engineers located at Mumbai, Delhi, Bangalore, Chennai, and Kolkatta exclusively assigned the task of follow up with vendors on a day to day basis and report the status of manufacturing & dispatches. They also bridged the Design & technical issues, if any, by referring directly to the design offices. The plant & machinery manufactured at various vendor’s works were carried out by different offices located all over the country. Frequent visits were also made by the of Project coordinators as well by client’s engineers to vendor’s works to resolve any issue across the table.

Inspection & Expediting Contd…

Construction Supervision Highly experienced and qualified engineers deployed at site. A small design office was established to provide site modification and any urgent designing of civil & structural works. Peak time deployment of engineers: 40.

Piling Construction as on Dec. 1995

Construction - Quality Assurance

Jetty Construction as on May 1997

Jetty & Plant Construction as on May 1997

Assistance in Plant Commissioning A team of engineers were deputed to site for around six months for testing and commissioning activities and initial periods of commercial production as one team along with clients engineers. CC Rod plant was originally scheduled to be commissioned by September 1997 but was commissioned in March 1997.

MEASURES TAKEN FOR FAST TRACK IMPLEMENTATION

Measures Taken for Fast track Implementation of Copper Rod Plant A dedicated multi–discipline team of engineers was set-up at the Delhi office. A team of engineers - Consultant & Client were sent to two plants in USA to see & visualize the plant layout, design, operational & maintenance aspects. Plant layout was frozen and immediately on return design of building structural work initiated – load data released – piling layout and design drawings were released progressively to site for construction. Piling work started in Dec. 1995. Analogous drawings & photographs for a similar plant being constructed at East Asia were requested from Southwire, USA – the Know How & Basic Engg. Supplier.

Measures Taken for Fast track Implementation of Copper Rod Plant Contd.. Basic planning work on piling layout & design drawing were taken up based on the analogous drawings. Load data drawings for proprietary equipment of Southwire/ Morgan like furnace, Caster wheel, Shear M/c, No-Twist rolling mill etc., could be prioritized being of modular design. Drawing were released progressively for piling construction keeping view the engagement, location & movement of the piling machine at site – means a constant communication with site.

Measures Taken for Fast track Implementation of Copper Rod Plant Contd.. The following exclusive decision were taken – a deviation from the overall philosophy of implementation of copper plant : Mechanical package – on turnkey concept. – Petron Engg., Mumbai Electrical Package – on turnkey concept. – Sonaa Engineers, Udaipur Separate Package for Copper rod coiling, strapping & packaging machine. – ITW Signode, Hyderabad. Separate Cooling towers – procurement exclusively for the copper rod plant. Separate package for supply of EOT Cranes for Rod Plant & mechanical work shop. Separate procurement of a dedicated Lathe machine for Casting wheel. Separate procurement of shop QA laboratory equipment. Staggered supply with a Different Colored sheeting. Staggered supply of Electrical Transformers and PCCs Staggered supply of LPG bullets. Staggered supply of Forklift trucks. Procurement of Copper cathodes for a period Refinery plant’s commissioning is differed.

Measures Taken for Fast track Implementation of Copper Rod Plant Contd.. The basic engineering received for the fabrication equipment, were threadbare reviewed jointly by the client, consultants & the contractor and were found to be equivalent to manufacturing drawings and the contractor were therefore asked to start manufacturing based on the same – rather than reinventing the wheel. Fortnightly initially & later followed by monthly design review meetings were conducted alternatively at the consultants office & contractors offices. Fortnightly & monthly visit by client’s & consultant’s package in charge, over and above the visits made by the dedicated expeditors team of 6 (Six) to contactors.

Measures Taken for Fast track Implementation of Copper Rod Plant Contd.. Approval & review of drawings, documents of contractor, vendor to be done within a week. Across the table approval of drawings/ documents of vendors. Approval & payment by client of contractors bills within a week.

Award Made from First Copper Rod Produced

Success of a Project The delivery of a successful project relies on a number of basic parameters these include: A professional team who are both competent managers and have the necessary technical and contractual background, and management skills. A well designed project. A well specified project. A well planned and implemented project. A well managed project. An innovative forward looking thinking process of solving problems with an open mind.

S – Curve A Project Management Monitoring Tool

Acknowledgment Author Thankfully acknowledges the sources of information on the “Delays in the Project Costs” paper Published on 28th May 2010 in Business Standard and the technical information and the Photographs, where ever indicated. Author also thank the management of CDC for giving me an opportunity to present this practical ‘Case Study’ for the benefit of the esteem audience.

Execution of Copper Rod Plant

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