Scrap Management & Optimization Solutions

Transcription

1 Scrap Management & Optimization Solutions ScrapMaster is a trademark of Harsco Corporation. All rights reserved. BOSS is a trademark of Management Science Associates, Inc. All rights reserved. This presentation is intended for customers of Harsco Corporation. All information included in this presentation, including copyright and trademarks, is expressly reserved and no part of these materials may be reproduced or distributed outside of the customer s organization in any form without Harsco s prior written consent.

2 Harsco's Core Ideology Core Purpose To build teams that win with integrity anywhere in the world 1 Customers Employees Shareholders Suppliers Core Values Value Creation Value Capture Value Selling Be the Best Sustainable Superior Performance (20-Mile March) Uncompromising Integrity and Ethical Business Practices Harsco Integrity Framework: Code of Conduct Security Practices Safety Practices Global Management Practices Internal Control People the "A Team" Human Capital Framework: Global Talent Management System for Recruiting, Developing, Retaining and Assessing Human Capital Ethical in Thought, Word and Deed Disciplined Thought, Disciplined Action and Disciplined People Transparency Safety Personal Accountability and Responsibility Customers Targeted Market BHAG Envisioned Future Continuous Improvement Continuous Improvement Discipline through Lean and Six Sigma Methods Business Transformation Value Creation Discipline Economic Value Added (EVA ) Value Selling Culture 1

3 Scrap consumption in Steelmaking Global Steel production in 2009 totalled 1.2 billion tonnes, using approx 600 million tonnes of scrap Europe N. Am Rest of Asia Crude Steel Production 2009 The value of that scrap amounts to approx $140 billion* As the worlds largest steel producer China consumes more scrap in steelmaking than any other country 550 million tonnes LST in million tonnes scrap consumption in 2009 China EAF BOS India M.E. Af rica CIS S. Am Oceania Steel Production (million tonnes) Steelmaking Scrap Consumption 2009 Scrap Used (million tonnes EAF BOS 20 0 China Europe Rest of Asia N. Am India CIS S. Am M.E. Africa Oceania *Based upon 2009 average scrap price of $230 per tonne 2

4 Scrap is the most significant raw material cost 70% of steelmaking costs are raw materials Scrap makes up a large proportion of this Estimated Scrap input cost $204 million/year 3 million tonne BOS plant $374 million/year 1 million tonne EAF plant *Based upon average scrap price of $340 per tonne 3

5 Best Practice scrap management Best-in-Class scrap management allows the Steelmaker to: Downgrade/reject merchant scrap loads Reduce scrap yard landfill costs Minimise scrap stocks Optimize scrap charges 4

6 Through Processes Impact Consequences of poor scrap management: => EAF delays waiting for scrap => Incorrect weights charged => Low yields => Increased slag volumes => Missed specifications => Increased refractory wear => Greater flux, O2, power consumption Financial impact: 1 minutes lost production time approx $ o C Cooling requirement approx $440 per heat +100 ppm [O] at tap approx $51 per heat 5

7 Harsco Metals Scrap Management Solutions Optimum scrap mix is charged each and every time on time the correct weight, the correct quality, zero delays Full inspection, including state of the art radiation detection for all purchased scrap Proactive reporting of scrap deliveries to enable cash recovery associated with OOS loads, rejected loads and contaminated loads Real time IT control for internal and purchased scrap with full stock tracking and reporting system Full traceability and accountability of scrap throughout site so that potential for fraud can be eliminated 6

8 ScrapMaster Four integrated operating modules for cost-effective management of the entire scrap supply chain, with full segregation and traceability. Basket Loading Incoming scrap Scrap handling ScrapMaster Powered by Optimizing Management information reporting puts you in control 7

9 ScrapMaster Value ScrapMaster can unlock significant savings Save on external scrap purchasing Realise the maximum value of internal scrap Charge the optimum scrap mix on time, every time Monitor the entire scrap charge history The unique video review function in ScrapMaster allows the furnace manager to monitor exactly what scrap was loaded at what time, in case of any problem with a particular heat. 8

10 Scrap Optimization ScrapMaster now integrates BOSS (Blending Optimization Software Suite) functionality Under license from Management Science Associates, Inc. World leading optimization program Yield-based cost calculation Actual scrap cost per tonne of steel Value of the scrap inventory on a real-time basis Minimises scrap charge cost, grade by grade Based on specific grade production data entered by the steelmaker planned tonnage, scrap composition, prices, availability and inventory 9

11 BOSS References Essar Steel Algoma Canada Integrated ArcelorMittal PST USA EAF AK Steel USA Stainless Steel ATI USA Stainless Steel Carpenter Technology USA EAF Universal Stainless USA Stainless Steel MetalTek International USA Special Steels McConway Torley USA Special products Sparrows Point Scrap Processing USA Integrated The Federal Metal Co USA Special products Waukesha Foundry USA Special products WCI Steel USA Integrated 10

12 BOSS Functions Single heat optimization Multi heat optimization Campaign optimization Scrap buy planning Inventory management Results feedback and interpretation 11

13 Optimization Process Flow STAGE 1 Input Scrap Grade Data STAGE 2 Input Steel Grade Data STAGE 3 Optimized Charge Design Scrap Grade Name Scrap Grade Name Scrap Type Steel Grade Name Chemical Analysis Physical Properties Chemical Analysis Element Recovery Restrictions Yield Restrictions Cost Information 12

14 Scrap Input Data 13

15 Steel Grade Data 14

16 Inventory Data 15

17 Optimized Charge Solution 16

18 Solution Information 17

19 Scrap Buying Plan 18

20 Successful Optimizing Factors for Optimization Accuracy Factors for Optimized Operations Input scrap analysis is critical Regular melt tests and spectrographic analysis of scrap required to build database Update model as more and more information is gathered Furnace characteristics to be established Full partnership approach needed so that details of furnace characteristics and production plan are shared Accurate recording of scrap charge weight Use ScrapMaster system to ensure scrap charge weights are recorded heat by heat Exact Knowledge of scrap being charged Use ScrapMaster DGPS system to ensure full tracking of scrap charge Clear demonstration of optimization impact Compare actual scrap charge recipe, weight and cost heat by heat and day by day with optimized solution 19

21 Scrap Analysis Accurate chemical analysis data is required for scrap materials Need to begin population of scrap database To start process, need melt tests of each scrap Ongoing testing of scrap will be required to populate database with a large number of samples to improve model accuracy Melt Test of Scrap Incoming scrap type Update scrap analysis database Spectrographic Analysis Of Scrap Repeat analysis regularly to build database and improve model accuracy Load data into optimization model 20

22 Optimization Improvement 8 Feedback Data 1 Receive Scrap 2 Analyse Chemical Data 7 Confirm Results Continuous Feedback 3 Update Scrap Analysis 6 Analysis Scrap vs Steel (residuals) Process Improvement 5 Results (history) 4 Melting EAF 21

23 Optimized Savings Example Analysis of existing scrap charge practice is made and then compared with optimized solution Total cost of both are established and savings calculated Grade Name # of hts % 1424 Plate HIC % 1674 Plate Linepipe % 1988 Plate LowAlloy % 1412 Plate MicroAlloy % 1981 Plate MildSteel % 1608 Section LowAlloy % Savings per month 1639 Section MicroAlloy % 77, Section Mild Steel % 34, Strip HIC % 1451 Strip High Carbon % 40 Strip IF % 1932 Strip Linepipe % 1437 Strip Low C % 32, Strip Low S Ca % 1449 Strip Med C % 27,755 3, % 172,695 22

24 The Value of Charge Optimization Quantifying the cost of production constraints (e.g. sulfur composition of the heat) Lowest cost liquid steelmaking Optimized use of scrap available Use data for informed scrap purchasing and negotiation Planned scrap buy Full control of scrap cost Tangible savings 23

25 End-to-End Scrap Management Solution Full management of scrap from the moment it arrives on site until it is melted Handling of scrap arriving by road, rail and barge Order receipt, radioactivity control, scrap quality control Processing of scrap on site Collection, transport and upgrading of all internally arising scrap Reception, storage and real time scrap inventory control Scrap charge optimization Loading scrap baskets according to menus received electronically from the production schedule Transport scrap to the furnace on specialist vehicles 24