CHAPTER IIIPRODUCTION AND TECHNICAL ASPECTS

III.1. PROJECT LOCATION

Steel iron factory of Besi Profil Baru Ltd. is located in Village ………. sub District ……….. Regency ………………. West Java, + 80 Km from ………….

Width of project area in total + 30.000 sqm (land certificates in processing). The choosing of this factory location based on economically and technically considering, are:

- The site of location nearby potential market because many industries, real estates, etc that are being developed which need steel iron much.

- Nearby Raw Material source, namely Krakatau Steel Ltd, where about is planned a big part of Raw Material purchasing from there.

- Nearby Merak Harbor, so for delivering iron steel to other zones or to importing raw material from abroad more economically..

- Nearby Jakarta Merak free toll, thus delivering transportation and distribution of iron steel to other region more easily.

- Human resource is provided rather many in around the factory location and residents’ character are appropriate with requirements of wanted human resource quality which they are in generally rather diligent, tough and skilled.

- Infrastructure and pre-facility that needed by factory are prepared in region of the factory location.

III.2. Production Output

This planned project shall produce Steel Iron and Profil, is a product used as frames to erect buildings..

And for Steel Iron is resulted from heating process and forming Billet.

Steel Iron that produced by Besi Profil Baru Ltd. have the export quality and based on International Quality Standard.

III.3. Raw Material

Raw Material that needed for production process of Steel Iron only one sort is: Billet.

III.4. Know How

The production process of Steel Iron uses sophisticated technological machines to produce product qualitatively. Therefore there are needed skilled workers (operator) who have good knowledge and know-how. The machines consist of machine parts that its functions are connected each and others. Hence, the operators must be able to maintain and anticipate damaged of machine parts.

Technology of the Steel Iron process above is a technology from abroad, so, in order to be able to operate it, there are needed firstly know-how training being held trainings. In the case, the owner

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of the technology is prepared to hold trainings for related operators, to come in trainers from source factory for training personnel from local.

III.5. Production Process

Billet is heated in the oven up to reaching definitive temperature and then transferred by using conveyor to the forming machine of Steel Iron, next, cooled by (water, air, oils or other) in accordance with the wanted quality.

Diagram of Steel Iron

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Billet

Heating

Milling

Forming

Cooling

Fin. Goods

III.6. Facilities

III.6.1.Land Improvement

The site land of factory needs the cleaning up and the making of dikes between rise fields a wide of 30.000 sqm.

To ease the raw material transportation to the warehouse, the company will make asphalt roads a wide of + 5000 sqm, then to embellish the yard and also to comfort the view shall be made parks in possibly areas in 750 sqm

For preventive security aspect, the company has built strongly enough fences around the factory as high as + 2 m and a long of + 700 m.

III.6.2.Factory Building and its Supports

Besi Profil Baru Ltd. shall start Steel Iron production process in some buildings and also storing warehouses, namely:

1. The factory building for production process.

2. The storing warehouse.

It has 2 units, namely finished goods warehouse a broad of …..sqm and the raw material & spare parts storing warehouse a broad of ……sqm.

3. The office building.

The office has multistoried building (2stories) with the width of building …….sqm. It is in same location with the factory and stands in front area.

4. Staff residence.

For the need of staff in unpredictable situation, hence the temporary residence is built in the backside factory.

5. The cantina.

For the need of employees eating and drinking in the location, the company provides a cantina building a wide of …….m.

6. Some other buildings.

Other building that also built are a place for praying (small mosque) in……..sqm, a policlinic and guard station in …….sqm. Besides that, there are also built a machine house facility, sewage treatment plant, a water tower and sport court.

III.7. Production Machines

The production factory of Beasi Profil Baru Ltd. needs production machines. They can be differentiated in 3 categories, are: Heating, Forming and Cooling.

TABLE III.1 LIST of MACHINES

Notes Total Price (Rp)

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I. Heating Section:12345

1 unit1 unit1 unit1 unit1 unit

RpRpRpRpRp

II. Milling Section:12345

1 unit1 unit1 unit1 unit1 unit

RpRpRpRpRp

III. Forming Section:12345

1 unit1 unit1 unit1 unit1 unit

RpRpRpRpRp

IV. Cooling Section:12345

1 unit1 unit1 unit1 unit1 unit

RpRpRpRpRp

III.8. Other Facilities

III.8.1.FACTORY VEHICLES

For fluency of production, so there is needed vehicles facility, are:

1 unit Manager's Vehicle

2 units Mini Bus

1 unit Forklift

2 units Motor Cars

III.8.2.VEHICLES AND OFFICE EQUIPMENT

Then, for the management ease, there are needed facilities, namely:

1 unit Director Vehicle

2 units Manager Vehicles

Office Equipments

Furniture and sanitary

Air Conditioner

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III.9. Utility

III.9.1.Electricity

To fulfill need of electrical power of the project, PLN shall be used as in plan The need of electricity is estimated more and less 6.000 kVa whereas for emergency is planned using generator in capacity of 500 kW.

III.9.2.Water

Water, is mainly needed to fulfill daily needs and to cool machines. Capacity for plain water estimated will be fulfilled from 2 deep well which are going to be dug in around location.

III.10. Human Resource

In principle, there are 2 important divisions in Steel Iron factory namely, the division of production process and management.

On account of this Steel Iron Production Project is complicated and needs skilled personnel, besides the machines are rather sophisticated, who need to be accompany by person who really master the technology of Steel Iron Production. Thus, the production output is correctly good whereas can compete with other products, either local or from abroad.

Personnel of Production Division are person who needed numerously in Steel Iron factory of Besi Profil Baru Ltd.

III.11.Project Implementation

Development of the Steel Iron factory, office, cantina and some other buildings is started to be worked in …..1995 and shall be ready to use in ….. 1996. It is done by technicians of Besi Profil Baru Ltd. with some Factory and Planning Consultants from local or abroad. \

As planned, commercially the factory will start to produce in initial year of 1996 with capacity 80% of normal capacity. Further, in 1997 production will reach 90,00% and 100% in 1998.

** Steel-3.Microsoft Word **

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