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supply chain analysis of dg cement

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Production operations and management

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supply chain analysis of dg cement

  3. 3. SUPPLY CHAIN MANAGEGEMENT IT IS DEFINED AS : • "the supply chain encompasses all of those activities associated with moving goods from the raw-materials stage through to the end user.“ LaLonde defines supply-chain management as follows: • "The delivery of enhanced customer and economic value through synchronised management of the flow of physical goods and associated information from sourcing to consumption. ".
  4. 4. Supply chain refers to : • inbound and outbound transportation. • Warehousing • inventory control • Sourcing, procurement, and supply management fall under the supply-chain umbrella • Forecasting, production planning and scheduling, order processing, and customer service all are part of the process as well
  5. 5. Objectives: • reducing working capital • taking assets off the balance sheet • accelerating cash-to-cash cycles • increasing inventory turns, and so on
  7. 7. SUPPLY CHAIN ANALYSIS OF DG CEMENT INTRODUCTION • D.G. Khan Cement Company Limited, (DGKCC) is amongst largest cement manufacturers of Pakistan • production capacity of 14,000 tons per day • DGKCC has three cement plants, two plants located at Dera Ghazi Khan and one at Khairpur Distt. Chakwal • All the plants are based on latest Dry Process Technology
  8. 8. SUPPLY OF RAW MATERIALS (Point of Origin) In general, cement is a mixture of : • Limestone • Sand • Clay • Iron • Cement plants are normally located near the quarries which are the source of their main raw materials • The main reason for their location is that 1.6 tons of main raw materials are required to produce 1 ton of cement
  9. 9. Continued….. • DG Cement is getting their supply of raw materials from quarries (limestone mountains) • located 7-8 Km upward from plant site • Nearly 10,000 Tons of raw material is transferred from quarries to plant site daily • VMS is present in which day to day electronic receipts are genereated • bills are paid annually to government
  10. 10. Continued…. • DG Cement has taken limestone mountains from government of Pakistan on lease. • Gypsum is supplied from taunsa shareef , because Gypsum mountains are present there Operations involved: • Drilling • Blasting
  11. 11. supply of raw materials
  12. 12. Inbound Logistics • Inbound logistics refers to the transport, storage and delivery of raw material coming into a industry or company. • DG Cement is implementing inbound logistics in the following way: • Conveyors takes the new material from quarry to the factory site • The limestone and shale to store • The small fragments are loaded on the 7-Km long 3 belts conveyor system running over rough in the open space.
  13. 13. Conveyor belts
  14. 14. Raw Material Storage • The raw feed from the belt conveyer directly falls on the rotating table of the raw mill • The table contains on 3 crushing rollers • The raw feed is crushed into fine powder with these rollers • Material is sent to CF Silo for storage CF Silo (continuous flow): • powdered feed from the raw mill are conveyed to the bucket elevator • The bucket elevator picks this feed and take it to the top of the CF silo and then throws it in.
  15. 15. Continued….. • Specifications of a CF silo • Capacity = unit 1 unit2 7000 tons 7500ton • It is made of concrete & can store raw mill for long time. • Quantity of raw mill product is properly documented • Quality is also evaluated via various tests and is Documented
  16. 16. Storage Silos
  17. 17. Production operations • Productions operations at DG Cement are : • continuous • carried out according to production planning sheets or log sheets. Various production operations are : • precalcination • heating in Kiln • clinker cooling
  18. 18. Continued….. • Dust collection • Clinker crushing • Clinker storage • Gypsum Addition • Mixing of Additives • Metal Detection
  19. 19. Production Operations at DG Cement
  20. 20. Quality Control • (QC) is a procedure or set of procedures intended to ensure that a manufactured product or performed service adheres to a defined set of quality criteria or meets the requirements of the client or customer. • There are two types of Quality Control Procedures in DGCC • Chemical Labs: To check the Composition of different components of Cement with the help of X-ray Analysis. • Physical Labs: To check the Setting Time, Expansion Testing and Compression Testing of different components of Cement.
  21. 21. Packing The packing plant comprises of 2 units : • Both units consists of 4 packers • Each packer can pack 8 bags at a time • Each packer has a capacity of 100 tons/hr • The cement bags are attached manually to the rotating packer which fills the cement bag • When the bag is filled up to the required weight 50kg, it automatically falls on the conveyor belt which takes the bags to the roller conveyor • From these rollers the bags slide to different channels and finally cement bags are loaded on the trucks for dispatch
  22. 22. Packing at DGCC
  23. 23. Outbound Logistics (Dispatch) • In dispatch department the main work is to dispatch the cement according to the orders of sales offices • After taking report from the authorities the dispatch department makes truck loading advice according to which cement bags are loaded on truck • It basically shows the quantity, location of unit, truck driver name, truck number and destination of loaded cements bags
  24. 24. continued….. • Dispatch department also make daily report according to: • Truck Loading Advice (Inventory Transfer) • Truck Loading Check Report • Unit Wise Dispatch Detail • Gate Pass (Inventory Transfer) • Office Wise Dispatches
  25. 25. Dispatch
  26. 26. Products Two different products are produced at DGKCC namely Ordinary Portland Cement and Sulphate Resistant Cement. These products are marketed through two different brands: • DG brand & Elephant brand Ordinary Portland Cement (It is also called the OPC and its demand is about 92% because of commonly used). •DG brand Sulphate Resistant Cement (It is also called the SRC and its demand is about only 8% because it is only used in standing the foundations its main work is to finish the pours produced).
  27. 27. Products
  28. 28. Distribution (Point Of Consumption) • DGKCC has a countrywide distribution network and has more than 1000 distributors • This extensive distribution is handled by five regional sales offices • These regional sales offices operate in assigned areas and have network of dealers in each area to achieve maximum sales in their territories • direct sales are also made to institutional Clients for Projects
  29. 29. Retail • Retailers buy cement according to their selling capacity from Distributors and the 5 regional sales offices Export Market • DGKCC enjoys a good market share of : • Indian subcontinent • Middle East • East & South Africa
  30. 30. Summary of cement industry
  31. 31. Any Questions ?