Quality Management of Iron ore and coal by Raw Material ... · PDF fileQuality Management of...

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


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


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


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.


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


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)


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


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


requirement while IMPROVING MINE LIFE


27

31Good

19

23%

USL

15

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

Target UpperLimit CCAshDate


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


in


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


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)


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


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


DM implementation for reducingvariability

Year

Improvement in clean coal ash



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


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


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


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


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


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


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


Complaintresolution time

Train WorkmenInform Customer and

Close Complaint

Compliant

ThanksThanks

TTh kk YTThaank You


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