China 2025- How Tangsteel Deals

with the Chances of Digitalization

ZhenRui Zhao IT Direcector

2017-5-9

2

3

Innovation

Key Points of Smart Factory

1 Review

4 Vision for the future

Brief Introduction of Tangsteel

Key member of HBIS (No.2 of Steel company of China) Located in Tangshan City

18 Million Tons per year for Tangsteel,

From ore to final products . 140 Types of products :

Water Treatment Center Iron Tapping hole

Green Tangsteel

Major Mills(Post SMP)

Plant #1

SMP HRM

Plant #2

SMP HRM

Coil Slab

long section

Plate Ltd.

SMP

+ HRM

Plate

CRM Dept.

CRM

Cold Coil G Coil A Coil

Stainles

Ltd. SMP

+ HRM

Coil Slab

High Strength

Automobile Sheet Ltd.

CRM2 in short (2014)

Cold Coil G Coil A Coil

HQ LaoTing GuYe KaiPing

Section Dept.

Section

Review the Past of IT Development of Tangsteel

2002-2007 2008-2013 2014-2015 2016 2017——

•Gigabit optical fiber backbone

network

•OA System

•Plant #1 (SMP&HRM) Sales

&production system

•ERP

•Iron/Post SMP DSS、 Plant

#1(SMP&HRM)/CRM1/Stainless Mill MES

•LMS, Quantity & Quality System

•EMS、Equipment inspection system

•BI 、E-Commercial Platform、 CRM

•Advanced Planning System（APS）

•Order Dressing System（ODS）

•Quality Management System（QMS）

•CRM2 MES

•Plant#1/Stainless Mill Melt shop Control Center（MSCC）

•Plant#1 /Stainless Ltd. MES modification

•Mill Database System（MDS）

•Plate Mill IT improvement

•ODS to cover product development phase

•Project Management

•OA improvment

•HR improvement

•Equipment Life-cycle management and on-line Diagnosis system

•CRM2 MES Phase 2 ()new lines

•CRM1 MES Enhancement

•APS、QMS function Enhancement

•LIMS

•Order negotiation system

•Stainless mill and CRM2 Smart Factory

Traditional Architecture Adjustment on Intelligent Manufacturing

Architecture

L5

L4

L3

BI/BO

ERP C S

CRM HR

CRM1 MES

MES

Plant #1MES

Plant2 DSS

Iron areaDSS

Assistant system

Logistics Train shipping

Equipment Inspection

Mesurement Managament

Quality and Quantity System

EMS

OA

Stainless Mill MES

……

Buy PP QM Sales FI/CO EM

L2 PCS

PLC L1

IT （Network/Servers/Security etc.）

Coaking DSS

WM

Legacy Architecture

Challenges on the Traditional System

FI Oriented instead of Customer oriented

-Small orders, customized SO instead of Big batch SO

-Due-Date Negotiation

Quality Control Result Adjustment mode instead of process control and Final SO Oriented

Lack connection between Automation system & Information system

Mill Coordinating Supporting instead of Flat organization Mode

2

3

Innovation

Key Points of Smart Factory

1 Review

4 Vision for the future

3 Main Lines Advancing：Integration of Production Management-Control ;Integration of whole industry SCM;Life-cycle Equipment Management

One Target：Factory Operational Excellence 1

Two Supporting System：Technical supporting system;Standardization System 2

3

Four ability promotion：Overall perception; Collaborative optimization; Forecast and early warning;Scientific decision making

4

Five Features：Digitalization;Integration; Modelling; Visualization、Automation 5

Six Core business Domain： Production management- Control、SRM、Equipment Management、Energy Management、HSE、Strategy Management 6

Key points of Smart Factory definition in “China Manufacture 2025”

China Manufacture 2025

5 layers System Architecture Defined in “Construction Guideline of National Intelligence Manufacturing standard architecture ”：

Equipment Layer：Including Sensors ,instruments and meters, bar code,RFID, equipment, machine, device etc. Material basis of production

Control Layer：Including PLC,SCADA,DCS, FCS etc.

Shop Layer： Focus on the production management of Mills/Shops，Including MES etc,

Company Layer： Focus on the company management，Including ERP,PLM,SCM,CRM etc.

Coordinating Layer：Focus on companies in the industry chain to realize the coordinating R&D, intelligent production, accurate logistics and intelligent service by share information.

Intelligent Manufacturing Standard Architecture

Layer

Life-cycle

Intelligent Function

Coordinating

Company Shop

Control Equipment

Resource

System integration

Inter connecting &Inter working

Information fusion

New types of business

Design

Production

Logistics

Sales

Service

New IT Architecture

PLC

L5

L3.5 Company Level APS Company Level ODS Company Level QMS

PCS

RDS MDS

L2 Enhancement in Iron

TPQC

KPI System BI/BO

L4 CRM OA SRM TBM FI Contrl

PlatForm

buy Sales PP QM WM FICO HR PM Equipment Management ERP

L3 Long Product

MES Plate MES

Stainless MES

CRM 1MES

CRM2 MES Iron MES

SMP MSCC

Plant 1# MES Meter System

EMS Inspection

CTS QAS

ISS

EBS

MMS

Train Shipping ACS Attendance

EDS

LIMS

MES Assistant System

L2.5

L2

L1

Legacy Constuction Plann 图例：

Logistics Non-

Metals

System

Innovation on the Legacy system

L3.5 Company Level

QMS

Company Level

APS

Company Level

ODS

L2.5 MDS

2

3

Innovation

Key Points of Smart Factory

1 Review

4 Vision for the future

Order-Dressing

PSR_NO: Product Specification Code

MIC_NO: Manufacture Index Code

SO

SG

User

Usage

MIC_NO

Mapping

Auto Design

Y

N

Standard

PSR_NO

Manual

Establish the Core Quality

DB:

-Product Specification DB. Mic

DB. Routing DB

Dynamic Order Dressing

Unify the Quality Standard

for all the mills

Supporting New Product

Development

APQP/FMEA

Exist？

Capacity Constrained

Planning

DDQ Supporting

Improve Decision Quality

and efficiency of Coordination

On-Time Delivery

Optimized Stock

Smart Planning Algorithm

Strategy

S&OP

Planning

Scheduling

Buy Production Logistics Sale

Iron Plan

Port Plan

Strategy Plan

Monthly material Plan Demand-modelling

DDQ

Shipping Plan

Integrated Sale-production Plan

Production Scheduling

APS

Sequence of Tundish MES

CTS

Sequence of Tundish

Real signals of L2

Pace Schelling result

For all resources Pace Schelling result

For all resources Real signals of L2

BOF L2 LF L2 CCM L2

Dynamitic Scheduling

based on the real

production

Pace Scheduling/

Temperature /Crane

Scheduling/Ladle Planning

Mixed SM Production

3BOF-3CCM ->2BOF-

>3CCM

Melt Shop Control Center(MSCC)

QMS

Product Quality

Tracing

Meeting with Product to

Meeting with standard of

Operation

On-line Control and

Off-Line Analysis

Stability Assurance

Standard Oriented to

Customer Oriented

Manually Checking

Pre-view of Coil TPQC

QMS On-line Judge

Quliaty Monitoring

Plan &Scheduling

Key performance evaluation

SO

Quality Analysis

Mill level big data,

supporting QMS’s Business

All operation data in same

Real-time DB

Re-calculation and part

operation data to Relational

DB

Algorithm mapping for the

operation data and

management data, Rule

based to support L3

Mill Database System

Unmanned CTS

3 Warehouse in CRM2

Auto Scheduling and

Auto Shipping

Unmanned CTS

Optimized on stock

assignment and

transportation

Efficiency improvement

Load Balance on Cranes

Unmanned CTS

Stock allocation automatically

Shipping Automatically

On-line Diagnostics

Life-cycle equipment

management

Spot-Checking Management

system

ERP-PM/MM

Omnidirectional and multi

dimension system equipment

management

Realize the pre-use, in use, post-use

life-cycle management of equipment

Accurate equipment book-keeping

On-line monitoring

Intelligent diagnostics and trouble-

shooting

Optimize spot-checking, maintenance,

improve equipment perfectness

Improve attachments management

Equipment Management and On-line Diagnostics

Information

integration Platform

Data Processing Hub

For Different system

Unified interface

Large scale concurrent

automatic processing

supporting

Robot Smart System

trigged by Events

会议回执--河钢唐钢 Plant#1

MES

ODS APS QMS ERP

CRM2 MES

Stainless MES

LMS

CTS

MS

LIMS

EMS

RMS CAL L2

PLCT L2

CGL L2

RC L2

Pack L2

Unified interface platform

System Integration

Value of the New Architecture

Service Oriented Manufacture

- MTO Supporting; Balance batch production and customized requirement

Know-How Consolidation

- Core Metals Quliaty DB. Product life-cycle supporting

Flexible Manufacture

- Based on the Self–organization and quick response of the production,.to

reduce the cost and Detailed FI analysis supporting

Agile Manufacture

- Based on the Quality assurance system, Design and Production integrated

2

3

Innovation

Key Points of Smart Factory

1 Review

4 Vision for the future

Vision for the Future

PLC

L5

L3.5 Company Level APS Company Level ODS Company Level QMS

PCS

RDS MDS

L2 Enhancement in Iron

TPQC

KPI System BI/BO

L4 CRM OA SRM TBM FI Contrl

PlatForm

buy Sales PP QM WM FICO HR PM Equipment Management ERP

L3 Long Product

MES Plate MES

Stainless MES

CRM 1MES

CRM2 MES Iron MES

SMP MSCC

Plant 1# MES Meter System

EMS Inspection

CTS QAS

ISS

EBS

MMS

Train Shipping ACS Attendance

EDS

LIMS

MES Assistant System

L2.5

L2

L1

Legacy Constuction Plann Notes：

Logistics Non-

Metals

System

Thanks!