GALVANIZING PLANTANNUAL REPORTJUNE 2013-JULY 2014

TEAM MEMBERS

Jahangir Ali KhanNadeem AhmedMuhammad Ahsan KhanFaizan AbbasMajid KhanSohail AshrafNadeem Uddin

ANNUAL REPORT SECTIONS

• Quarterly comparisons of Production• Trend of down time• Consumable item cost analysis• Loss trend Defect Wise

PRODUCTION

• Comparison of Budget and Actual cost• Down time hours of each item• Trend of proactive maintenance

MAINTENANCE

• Monthly comparison of packing cost over production

• Trend of packaging material consumption over production

PACKAGING

PRODUCTION DEPARTMENTThis report compares the actual and target productions of

whole year.Reflects the difference of production for every month.Depicts the tonnage of prime, second and reject wrt the total

production.Reveals the contribution of different departments in the loss

of targeted production.Compares the utilized capacity and downtime of plant.Shows the consumption and net saving of consumables.

Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-140

100002000030000400005000060000700008000090000

100000110000120000130000140000150000160000170000180000190000200000210000220000230000240000250000260000270000280000290000300000310000320000330000340000

11,30323,508

36,511

50,514

64,518

78,522

93,027

107,030

121,033

135,786

150,541

165,045

11,504

21,002

34,598

45,000

59,542

70,903

86,884

100,232

116,035

129,700

146,242

158,996

TARGET V/S ACTUAL PRODUCTION FOR 2013 ~ 2014

TARGETS PRODUCTION

MONTHS

PR

OD

UC

TIO

N (

TO

NS)

JULY AUGUST SEP-TEMBER

OCTO-BER

NO-VEMBER

DE-CEM-BER

JANU-ARY

FEBRU-ARY

MARCH APRIL MAY JUNE

BUD-GETED

11300 12200 13000 14000 14000 14000 14500 14000 14000 14750 14750 14500

PLANNED

10805 13730 14220 14682 13010 13600 13000 13275 16000 15050 14134 16518

AC-TUAL

11509 9497 13596 10402 14542 11363 15978 13347.58 15803.142

13665 16542 12754

4,500

7,500

10,500

13,500

16,500

PRODUCTION COMPARISIONT

ON

NA

GE

1st quarter 2nd quarter 3rd quarter 4th quarter

Total 34601.854 36307.634 45128.978 42953.346

Prime 33527.52 34877.67 43908.8 41203.54

Second 914.29 1,284.73 1,051.22 1,540.39

Reject 160.04 145.23 168.96 209.41

1800

5300

8800

12300

15800

19300

22800

26300

29800

33300

36800

40300

43800

34601.854 36307.634

45128.97842953.346

33527.5234877.67

43908.8

41203.54

914.29 1,284.73 1,051.22 1,540.39 160.04 145.23 168.96 209.41

Annual production Summary

TotalPrimeSecondReject

July 2013-June 2014

Ton

nag

e

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter95

95.5

96

96.5

97

97.5

96.9

96.1

97.3

95.9

Comparision of Prime ProductionTargeted V/s Actual

Actual Percentage

Targeted percentage

Quartely Percentage of Prime Production

Perc

enta

ge

• Target prime production is 97% which is nearly achieved in first quarter, and less in 2nd and 4th quarter due to highest percentage of secondary in that respective quarters. While in 3rd quarter it target is achieved because of highest total production in this quarter.

• Annual Avg. Prime Production is 96 .7 % which is closed to target production.

Scratch Line

Black Spots

Track off

Oth-ers

Black Patch

Jet Lines

Line Stop (Op-era-tion)

Threading (Op-era-

tions)

CR Mate-rial

Line Stop

(Main-ten-

ance)

Edge Buildu

p

Line Stop

(Elec-trical)

Non Chro-mated

HARDNESS

Weld Over Zinc Coat-ing

T-Bend (CRC)

Threading

Scratch Line

Black Spots

Track off

Oth-ers

Black Patch

Jet Lines

Line Stop (Op-era-tion)

Threading (Op-era-

tions)

CR Mate-rial

Line Stop

(Main-ten-

ance)

Edge Buildu

p

Line Stop

(Elec-trical)

Non Chro-mated

HARDNESS

Weld Over Zinc Coat-ing

T-Bend (CRC)

Threading

Second

1021.448

588.84

369.813

232.06

302.312

296.26

208.056

158.84

230.382

157.474

170.696

154.638

156.77

143.992

90.042

81.847

92.792

48.86

Reject

10.92 0 127.188

71.16 0.546 0 75.808

118.288

3.476 61.554

42.888

55.166

3.618 0.976 16.67 18.936

0 28.6

% age

0.65% 0.37% 0.31% 0.19% 0.19% 0.19% 0.18% 0.17% 0.15% 0.14% 0.13% 0.13% 0.10% 0.09% 0.07% 0.06% 0.06% 0.05%

100.00

300.00

500.00

700.00

900.00

1,100.00

0.3%

0.8%

0.65%

0.37%0.31%

0.19%0.19%0.19%0.18%0.17%0.15%0.14%0.13%0.13%

0.10%0.09%0.07%0.06%0.06%0.05%

LOSS TREND DEFECT WISE FOR THE YEAR 2013-14

DEFECTS

TO

NN

AG

E (

TO

NS)

PE

RC

EN

TA

GE

(%

)

TOTAL PRODUCTION 158,991 TONSTOTAL PRIME = 153,748 TONS (96.70 %)TOTAL SECONDARY = 4760 TONS (2.99 %)TOTAL REJECT = 683.62 TONS (0.43 %)TOTAL DOWN TIME = 444 HRS (6.17 %)

OPERATIONS CRM MAINTE-NANCE

ELECTRICAL PSA POWER HOUSE RESTART UP OPERATIONS CRM MAINTE-NANCE

ELECTRICAL PSA POWER HOUSE RESTART UP

SECOND

1779.849 1270.037 924.658 287.306 135.568 80.162 NaN

REJECT

299.84 123.752 106.866 96.578 11.236 14.14 NaN

%AGE

0.01 0.01 0.01 0.00 0.00 0.00 -NaN

100.00

300.00

500.00

700.00

900.00

1,100.00

1,300.00

1,500.00

1,700.00

1,900.00

0.01

0.02 0.01

0.01

0.01

0.00

0.00 0.00

LOSS TREND DEPARTMENT WISE FOR THE YEAR 2013-14SECOND REJECT

DEPARTMENTS

TON

NAG

E (T

ON

S)

PER

CEN

TAG

E (%

)

TOTAL PRODUCTION 158,991 TONSTOTAL PRIME = 153,748 TONS (96.70 %)TOTAL SECONDARY = 4760 TONS (2.99 %)TOTAL REJECT = 683.62 TONS (0.43 %)TOTAL DOWN TIME = 444 HRS (6.17 %)

OPERATIONS 302 days 83%

UNAVAILABILITY OF CRC

25 days 7%

MAINTENANCE SHUTDOWN24 days 6%

HOLIDAYS10 days 3%

OTHER1%

PLANT CAPACITY UTILIZATION

This Pie charts show the no of operational days and shut down days throughout the year. Plant is in operation 302days and in shut down for 24days for maintenance shutdown.

OPERATIONS46%

CRM 10%

ELECTRICAL15%

RE-START UP 1%

PSA 3%

MAINTENANCE22%

POWER HOUSE 3%

DOWNTIME GALVANIZING

Below is the Pie chart which highlights the downtime of plant of caused by different de-partment in terms of percentages. Operational downtime hours are major contributor. Maintenance and Electrical shut downs are also contributing substantially.

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Down time % 6.2 5.9 6.8 6.2

5.50

5.70

5.90

6.10

6.30

6.50

6.70

6.90

6.2

5.9

6.8

6.2

Comparision of Down Time %Targeted V/s Actual

Down time % Quarterly

Perc

enta

ge

Target downtime is 6.5% which is crossed in 3rd quarter as in month of Feb and March highest down hours occurred subsequently . Furthermore total Maintenance days in these month are 5 days

Annual Avg downtime is 6.17 % which shows success in reducing the down hours.

Average Annual consumption 21.7 kg/ton

Target Zinc 25.5 kg/tonDifference of Consumption 3.8 kg/ton

Total production 158,991 Ton

Total Zinc consumption 603371 kg

Unit Cost of Zinc 233.5 Rs/kg

Cost of Net saving Rs 140,872,611

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Quarters 21.55 21.02 22.15 22.1

19.25

19.75

20.25

20.75

21.25

21.75

22.25

22.75

21.55

21.02

22.15 22.1

Quarter wise Zinc Consumption

Quartely Zinc consumption

Kg/t

on

CONSUMABLES CONSUMPTIONTARGET V/S ACTUAL FOR 2012

S.No Items Total

Consumed Target Cost Total Saving / Loss

1 Zinc Consumption (Kgs/Ton) 21.7 25.5 233.5 Rs/kg PKR 140,872,611

2 AZAL-10 (Kgs/Ton) 0.43 0.5 210 Rs/kg PKR 2337241.2

3 Lead (Kgs/Ton) 0.01 0.013 175 Rs/kg PKR 83472.9

4 Antimony Alloy (Kgs/Ton) 0.07 0.028 1500 Rs/kg PKR ( 10016748)

5 Tin (Kgs/Ton) 0.03 0.027 2500 Rs/kg PKR (1192470)

6 Passerite (Kgs/Ton) 0.06 0.053 280 Rs/kg PKR (311632.2)

7 Gas Consumption (m3/Ton) 15.41 16 19 Rs/m3 PKR 1782345.2

8 Maintenance Cost (Rs/Ton) 64 65     PKR 514544

9 Packing Material (Kgs/Ton) 3.99 5 75 Rs/kg PKR 11,599,749

 TOTAL         PKR 145,107,050

ACHIEVED TARGETS

REDUCED DOWNTIME: Successfully we maintained our downtime to 6.17% below the target limit 6.5%. Plant is operational more than its target hours.

CONSUMABLES ITEMS:We saved the consumption of costly consumable item below the target and achieved the net saving of Rs 143,293,325.

GAS CONSUMPTION:Net saving in consumption is about Rs 1,782,345

ACHIEVED TARGETS

Jun-11 Jun-12 Jun-13 Jun-14 Jun-11 Jun-12 Jun-13 Jun-14

Production 40,272.75 111,064.37 139,953.80 158,996.44

Prime % 89.69% 96.04% 97.56% 96.70%

10,000.00

30,000.00

50,000.00

70,000.00

90,000.00

110,000.00

130,000.00

150,000.00

170,000.00

81.00%

83.00%

85.00%

87.00%

89.00%

91.00%

93.00%

95.00%

97.00%

99.00%

40,272.75

111,064.37 139,953.80

158,996.44

89.69%

96.04%97.56%

96.70%

Production Status for last four year

Production Prime %

REASONS OF NOT ACHIEVING THE TARGETS

Target ProductionTarget is lack by 6049 tons which is majorly contributed by following: Low productivity due to black sports. Unexpected downtime from operation sides. Maintenance and Electrical down time of 37 %.

Target Prime ProductionTarget to achieve prime production was marginally missed by 0.3%. Main reasons of reduced prime percentage are because of following defects: Scratch lines Black spots Track off

MAINTENANCE DEPARTMENT

Maintenance section covers the total actual cost and total budget cost

It compares the capital cost of each item of line

Evaluate the downtime hours of Maintenance in each quarter with different item.

Depicts the quarterly proactive Maintenance hours wrt to each items.

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

0

20

40

60

80

100

120

140

481,

576

666,

097

641,

691

958,

326

700,

359 1,51

4,54

8

1,09

5,41

1

461,

613

697,

821

1,06

6,21

3

949,

520

890,

524

Maintenance Cost 2013-14

Total Bud-get Rs

10,658,181Consumed Budget Rs 10,143,637

SUMMARY OF MONTHLY MAINTENANCE COST

Uncoiler

Seam Welder

Bridle Unit

Furnace

Pot Accessories

Quench Section

Tension Leveler

Chromate Section

Accumulator

Recoiler

- 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000

339,517

87,400

1,039,849

7,837,281

5,414,645

188,352

889,640

999,867

566,779

105,740 Total Cost (Rs)

with Capital Items

MAINTENANCE EXPENSE

Radiant Tube

Hearth Roll Non Coated

Heat Exchanger Tubes

Stab/Correcting Roll

Work Roll Dia 55

Intermediate Roll Dia 40

- 1,000,000 2,000,000 3,000,000 4,000,000

371,539

3,428,289

749,840

540,685

78,952

1,562,449

2,402,835

218,868

48,217

91,028

208,069 Capital Items

CAPITAL EXPENSES

Uncoiler2%

Seam Welder

1%

Bridle Unit6%

Furnace45%

Pot Accessories31%

Quench Section

1%Tension Leveler

5%Chromate Section

6%

Accumulator 3%Recoiler

1%

Cost % by Equipment

EXPENSES ON EACH EQUIPMENT

- 20 40 60 80

100 120

38 35

2 8 - - - - 8

112

5 4 10 16 20 4 3

33 15

-

33

- - 14 6 1

21 47 46

10 16

Breakdown Maintenance Hrs

Jul 13- Sep 13 Oct 13- Dec 13 Jan 14- Mar 14 Apr 14- Jun 14 -

20

40

60

80

100

120

140

160

99 123 117

150

Quarterly Breakdown Maintenance Hrs

Unc

oile

r#1

Seam

Wel

der

Entry

Acc

umul

ator

Furna

ce

Steer

ing#

3SPM

Bridle

#5

Exit A

ccum

ulat

or

Recoi

ler

Slitte

r

Pack

ing

M/c

-

20

40

60

80

28

59

8 28 29

2 5 5 14

88

30 43

2 13

3 15

4 24 19

4 19 16

2 3 3 6 20 22

9 -

34

Proactive Maintenance Hrs

Jul 13- Sep 13 Oct 13- Dec 13 Jan 14- Mar 14 Apr 14- Jun 14 -

20

40

60

80

100

120

140

160

140 119

80

147

Quarterly Proactive Maintenance Hrs

PACKAGING SECTIONS

This section solely covers the cost analysis of packaging wrt the monthly production

Compares the consumption of packaging material with the actual production.

Depicts the causes of trend in over consumption of packaging material and its cost.

Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 -

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

-

100

200

300

400

500

600

700

Monthly Comparison of Production & Packaging CostPRODUCTION PACKAGING COST

Months

Pro

ducti

on(t

ons)

Packagin

g C

ost

(R

s/to

n)

• Above chart reflects that initially packaging cost is high as compared to production.

• In 3rd quarter packaging cost is nearly same as that of production• While in the last quarter months packaging cost go down noticeably.• Production of PVC plant and less consumption of packaging items are certainly

the reason of this low packaging cost of finished coils.

Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 -

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

-

10.00

20.00

30.00

40.00

50.00

60.00

70.00

Consumption of Packaging materials Over monthly Production

Production Consumption of Packaging materia

Months

Pro

ducti

on(t

ons)

consu

mpti

on o

f packagin

g

mate

rial(

tons)

• This chart clearly shows that packaging materials are over consumed than the production.

• Consumption matches with demanded production at the end of annual year.• Over consumption of packaging material leads to packing costly.