Steel manufacturing optimization, an engineering management approach

Optimization of a steel production facility in order to deliver on competitiveness includes many factors ranging from operational improvements, process improvements and strategic initiatives. This research focuses on a strategic approach with a focus on process specific initiatives. The strategic initiative relates to the two models of operations, Make-To-Stock (MTS) and Make-To-Order (MTO). This research focuses on investigating the two options for optimizing the plant and reducing the production costs of making steel, especially at a South African facility. Local companies have to constantly improve production efficiency levels and evolve at the same rate as the ever changing international manufacturing facilities. This research is focused on the evaluation of strategy based on the utilization of coke, electricity, production volume, product quality index, logistics and Mean-Time-Between-Failure (MTBF) at a steel facility. The results indicate that MTS is the preferred option for the facility, with improved MTBF and product quality. Process improvement under MTS results in improved utilization of coke and electrical energy which have a direct effect on the cost of steel production. Cost reduction through capacity utilization and improved product quality are the primary factors that are required to drive down the price of steel on the market, therefore improving competitiveness for the company.