Optimizing Material Blending for A Large Steel Manufacturer

Problem

Steel manufacturing involves managing various materials, including coal and flux, which are essential for removing impurities during production. Coal alone accounts for around 60% of the production cost, making it crucial to carefully control the amount used in the blast furnace, along with other inputs like flux.

Manufacturers must also consider operational capacity, material availability, and the condition of the previously produced mix (pile). In total, over 60 variables influence the material selection process, making manual selection highly complex and prone to errors, which often leads to increased costs.

Traditionally, companies have relied on historical data to determine the right material mix. However, the need for a real-time cost optimization system that can determine the ideal input mix is growing.

Solution

A real-time, optimized material combination model is now used multiple times a day to help steel manufacturers manage their resources efficiently. This solution takes into account all operational inputs and constraints to deliver the most cost-effective material mix. It incorporates three distinct models for managing pile, direct dispatch, and sinter trimming.

The interface used for input is user-friendly, web-based, and delivers output that improves material compliance, feeder utilization, and visibility into costs and material chemistry.

During the COVID-19 pandemic, when material supplies were disrupted, the tool proved highly effective in helping manufacturers adapt to changes in supply and demand without affecting production output.

Benefits

Optimized material blending has resulted in numerous benefits for steel manufacturers, including:

• 2-3% reduction in material costs.
• Decreased reliance on materials and lower fuel costs.
• Better waste utilization and a reduction in total flux cost.
• Improved process visibility and reduced human dependency.
• High adoption among users and significant financial benefits, even during supply chain disruptions.

The integration of real-time optimization tools has provided a more efficient and cost-effective approach to steel production.