WELSPUN GUJARAT PRODUCTION OPERATION MANAGEMENT
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Transcript of WELSPUN GUJARAT PRODUCTION OPERATION MANAGEMENT
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Tolani Institute of Management 1
Welspun gujarat
stahl Rohren Ltd
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INDIAN PIPELINE INDUSTRY
Among the top three manufacturing hubs after
Japan and Europe.
Penetration level of pipelines in oil & gastransportation is low at 32% in India as
compared to 59% in USA and 79% globally
Highly Raw Material intensive with the RM
cost more than 70% of the total cost
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Low-cost quality products and various
certifications, Indian companies have augmented
their export sales over the last three to four years.
The global export market of the steel pipes is
stated to be close to $27 billion a year with theUS, Western Europe, Australia, and Japan being
the biggest importers. India is one of the major
exporting nations including Indonesia, Malaysia
and Thailand.
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Freight cost high due to higher imports and
exports.
The building & construction industries along
with the oil & gas sector are the major
marketplaces for pipe.
High oil and gas discoveries worldwide,
increased efforts by the Government of India
on infrastructure development.
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Demand of Pipelines
Demand is expected to be in excess of 3000 Km per Annum which would be more
or less in line with the total domestic capacity (Post expansion).
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Birth of a global pipe making
The Indian pipe majors Welspun Gujarat, Jindal
Saw, PSL, Man Industries and Ratnamani Metals
and Tubes set up their plants in the region to reach
a combined capacity of around 1 million tones per
year and likely to double it in near future.
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INTRODUTION TO WELSPUN
Strong culture of Engineering Excellence
Set to be positioned as the World's Largest
Pipe Company with an increase in capacity
from 1 million ton per annum to 1.75
million ton per annum by March 2009.
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Timely communication to
Target stakeholders in a
Transparent fashion
MISSION
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VISION
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Awards/Recognition
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CUSTOMERS OF WGSRL
Global Customers
British petroleum
Chevron
TransCanada
Lone star
(Bangladesh) Etc.
Domestic Customers
GSPL
GGCL
Reliance
GAIAL
IOC
Jay Somnath Etc.
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MAJOR SUPPLIERS OF WGSRL
Most Important Raw Material = Coil
So major supplier for WGSRL are:-
ESSAR Steel
ISPAT Steel
POSCO
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COMPITITORS OF WGSRL
Jindal Steels
MAN Industries
PSL
Ratnamani Metals and Tubes ROD Etc.
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WGSRL
Manufacturing Bending Coating
LSAW ERW Spiral/HSAW
S1 S2 S3
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Production Flow Chart of
Spiral-3
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Flow Chart
ofCOATING
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Concepts
ofPOM
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Competitive priorities:
Top quality
Consistent quality
On time delivery
Customization
Volume flexibility
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Core competencies:
Speed of production (150 pipes per day)
Quality
Employees (around 3000)
Backward integration
(captive in-house power and raw material)
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Batch Process:
Reasons for this:
More Variety
Moderate Volume
Average Quantity
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Make to order strategy:
Customized Product
Moderate Complexity & less Divergence
High Capital Intensity
Reasons for this:
Fixed Automation
Little Human Intervention
Latest technology
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LOCATION ADVANTAGES
Easy Availability labor at less cost
Tax benefits like excise duty exemption,
income & sales tax holiday for Kutch after the
earthquake in 2001.
Excellent logistics for import of steel, iron ore
and coal as well as export of pipes with all
season Kandla and Mundra port in the vicinity.
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Availability of hassle free land at reasonable
prices.
Indigenous availability of raw material.
Nearer to supplier
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Process Layout
Line-flow Layout & Fixed Position Layout:
Linear PathFixed Manufacturing Site
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Inventory Control System
Periodic Review System
Reasons for this:
No uncertainty in Demand
No Constraint on lot size
Review Period = 30 Days
Order is received in 3 parts
2% additional for Safety against loss
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Cont.
Supply Chain Strategy: Efficient
Reasons for this:
Predictable demand & low forecastingerrors
Competitive priorities are low cost,consistent quality, on-time delivery
Infrequent new product introduction
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Cont.
Mass Customization:
Highly Customized Product
Low Cost
Benefits of Mass Customization:
Managing customer relationships
Eliminate finished goods inventory
Higher perceived value of product
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Cont.
Backward Integration:
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Capacity Related Discussion
Current Capacity : 150 Pipes/day
No Capacity Cushions:
Reason For this: 2 years Orderin hand
Expansion:
Domestic Expansion
Global Expansion: Plant in Little
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LEAN SYSTEM @ WGSRL
Pull method of Workflow
Quality at source
Small lot size(Maximum 50/lot)
Uniform Workstation load(150 pipes/day)
Standardized Components & Work Method
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Cont.
Backward Integration for Less Inventory Slack
Flexible Workforce
Automation
Continuous Improvement With
Lean System
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Other concepts.
Very Less Bullwhip Effect
Centralized Inventory Placement
system
Bottleneck Management
Past Bottleneck Production
Capacity
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Quality Control
ISO 9001 - By
PIQR
API 5L (Line Pipes)
API 5CT (Casing)
API 2B (Tubular)
ISO/TS 29001
Certifications:
ISI by Bureau of
Indian Standards
ISO 14001 by LRQA
OHSAS 18001 by
LRQA
Six Sigma certificate.
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TQM @ WGSRL
Customer Satisfaction:Conformance to Specifications
Value
Fitness for usePsychological Impression
Employee Involvement
Quality at the SourceEmployee Empowerment
Continuous Improvement(Kaizen)
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Quality Procedure
Handling of Coils by C hookFrom storage to mill the coils are lifted by 30 Ton
crane
Handling of pipe inside the plant:
Rolling of the pipes on the level beds and
racksRubberized surface to prevent scratch
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Cont.
As per the specifications of the
customer testing are done at the
different places.
Finished goods are stocked in stand
for storage.
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