GALVANIZING PLANT

ANNUAL REPORT
JUNE 2013-JULY 2014
TEAM MEMBERS
Jahangir Ali Khan
Nadeem Ahmed
Muhammad Ahsan Khan
Faizan Abbas
Majid Khan
Sohail Ashraf
Nadeem Uddin

ANNUAL REPORT SECTIONS

PRODUCTION

MAINTENANCE

PACKAGING

Quarterly comparisons of
Production
Trend of down time
Consumable item cost analysis
Loss trend Defect Wise
Comparison of Budget and
Actual cost
Down time hours of each item
Trend of proactive maintenance
Monthly comparison of packing
cost over production
Trend of packaging material
consumption over production

PRODUCTION DEPARTMENT
This report compares the actual and target

productions of whole year.

Reflects the difference of production for every
month.
Depicts the tonnage of prime, second and reject
wrt the total production.
Reveals the contribution of different departments
in the loss of targeted production.
Compares the utilized capacity and downtime of
plant.
Shows the consumption and net saving of
consumables.

TARGET V/S ACTUAL PRODUCTION FOR 2013 ~ 2014

180000

TARGETS

170000

PRODUCTION

165,045

160000

150,541

150000
135,786

140000
130000

121,033

120000
107,030

110000
100000

93,027

90000 (TONS)
PRODUCTION

78,522

80000
70000

64,518

60000

50,514

50000
36,511

40000
30000

23,508

20000
11,303
10000

21,002

158,996

146,242

129,700

116,035

100,232

86,884

70,903

59,542

45,000

34,598

11,504
0
41456

41487

41518

41548

41579

41609

41640

MONTHS

41671

41699

41730

41760

41791

PRODUCTION COMPARISION
18,000

15,000

TONNAGE
12,000

9,000

6,000

3,000

Annual production Summary

43908.8

42050

41203.54

38550
35050
31550

33527.52

34877.67

28050
Total

24550

Tonnage
21050
17550

45128.98

Prime

42953.35

Second
Reject

36307.63

34601.85

14050
10550
7050
3550
50

914.29
160.04
1st quarter

1,284.73

145.23

2nd quarter

1,051.22

168.96

3rd quarter

July 2013-June 2014

1,540.39

209.41

4th quarter

Comparision of Prime Production

Targeted V/s Actual

97.5

97.3

96.9
97
Percentage
96.5

96.1

95.9

96

Actual Percentage

95.5

Targeted percentage
95
1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Quartely Percentage of Prime Production

Target prime production is 97% which is nearly achieved in first quarter, and less in
2nd and 4th quarter due to highest percentage of secondary in that respective
quarters. While in 3rd quarter it target is achieved because of highest total
production in this quarter.

Annual Avg. Prime Production is 96 .7 % which is closed to target

production.

LOSS TREND DEFECT WISE FOR THE YEAR 2013-14

1,200.00

0.7%
0.65%

TOTAL PRODUCTION 158,991 TONS

0.6%
TOTAL PRIME = 153,748 TONS (96.70 %)
TOTAL SECONDARY = 4760 TONS
0.5% (2.99 %)
TOTAL REJECT = 683.62 TONS (0.43 %)
0.4%
TOTAL DOWN TIME = 444 HRS (6.17 %)

1,000.00

TONNAGE
800.00 (TONS)
0.37%
600.00

0.31%
0.3%

400.00

200.00

PERCENTAGE (%)
0.19%0.19%0.19%
0.2%
0.18%0.17%
0.15%0.14%
0.13%0.13%
0.10%0.09%
0.1%
0.07%0.06%0.06%
0.05%

0.0%

DEFECTS

LOSS TREND DEPARTMENT WISE FOR THE YEAR 2013-14

SECOND

REJECT

2,000.00

0.01
0.01

TOTAL PRODUCTION 158,991 TONS

TOTAL PRIME = 153,748 TONS
(96.70 %)
TOTAL SECONDARY = 4760 TONS
(2.99 %)
TOTAL REJECT = 683.62 TONS (0.43
%)
TOTAL DOWN TIME = 444 HRS (6.17
%)

1,800.00
1,600.00
1,400.00
TONNAGE (TONS)

0.01

1,200.00
1,000.00

0.01

0.01
PERCENTAGE (%)
0.01

0.01
0.01

800.00
600.00

0.00
0.00

400.00

0.00
200.00

0.00

0.00

OPERATIONS

CRM

MAINTENANCE

ELECTRICAL

DEPARTMENTS

PSA

POWER HOUSE

RESTART UP

PLANT CAPACITY UTILIZATION

This Pie charts show the no of operational days and shut down days throughout the year.
Plant is in operation 302days and in shut down for 24days for maintenance shutdown.

MAINTENANCE SHUTDOWN; 6%

HOLIDAYS; 3%

OTHER; 1%

UNAVAILABILITY OF CRC; 7%

OPERATIONS; 83%

DOWNTIME GALVANIZING
Below is the Pie chart which highlights the downtime of plant of caused by different
department in terms of percentages. Operational downtime hours are major contributor.
Maintenance and Electrical shut downs are also contributing substantially.

POWER HOUSE; 3%

MAINTENANCE; 22%
OPERATIONS; 46%

PSA; 3%
RE-START UP; 1%

ELECTRICAL; 15%
CRM; 10%

Comparision of Down Time %

Targeted V/s Actual
7.00
6.80
6.8
6.60
6.40
Percentage
6.20
6.2

6.2
6.00
5.9

5.80
5.60
5.40
1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Down time % Quarterly

Target downtime is 6.5% which is crossed in 3rd quarter as in month of Feb

and March highest down hours occurred subsequently . Furthermore total
Maintenance days in these month are 5 days
Annual Avg downtime is 6.17 % which shows success in reducing the down
hours.

Quarter wise Zinc Consumption

23
22.5

22.15

22.1

3rd Quarter

4th Quarter

22
21.5
Kg/ton

21.55
21.02

21
20.5
20
19.5
19

1st Quarter

2nd Quarter

Quartely Zinc consumption

Average Annual
consumption
Target Zinc
Difference of Consumption
Total production
Total Zinc consumption
Unit Cost of Zinc
Cost of Net saving

21.7

kg/ton

25.5
kg/ton
3.8
kg/ton
158,991
Ton
603371
kg
233.5
Rs/kg
Rs 140,872,611

CONSUMABLES CONSUMPTION
TARGET V/S ACTUAL FOR 2012
S.N
o
1

Items

Total
Consume
d

Zinc Consumption
(Kgs/Ton)

Target

21.7

2 AZAL-10 (Kgs/Ton)

0.43

Cost

Total Saving / Loss

PKR

140,872,611

Rs/kg

PKR

2337241.2

25.5

233.5

Rs/kg

0.5

210

3 Lead (Kgs/Ton)

0.01

0.013

175

Rs/kg

PKR

83472.9

Antimony Alloy
(Kgs/Ton)

0.07

0.028

1500

Rs/kg

PKR

( 10016748)

0.027

2500

Rs/kg

PKR

(1192470)

0.053

280

Rs/kg

PKR

(311632.2)

16

19

Rs/m
3

PKR

65

PKR

75

5 Tin (Kgs/Ton)

0.03

6 Passerite (Kgs/Ton)

0.06

Gas Consumption
(m3/Ton)

Maintenance Cost
(Rs/Ton)

64

Packing Material
(Kgs/Ton)

3.99

TOTAL

15.41

Rs/kg

PKR

PKR

1782345.2
514544
11,599,749

145,107,050

ACHIEVED TARGETS
REDUCED DOWNTIME:
Successfully we maintained our downtime to 6.17% below
the target limit 6.5%. Plant is operational more than its target
hours.

CONSUMABLES ITEMS:
We saved the consumption of costly consumable item below
the target and achieved the net saving of Rs 143,293,325.

GAS CONSUMPTION:
Net saving in consumption is about Rs 1,782,345

ACHIEVED TARGETS
Production Status for last four year
Production

Prime %

180,000.00

100.00%

97.56%

160,000.00

96.04%

96.70%

98.00%
96.00%

140,000.00

94.00%

120,000.00

92.00%
100,000.00

89.69%

90.00%

158,996.44

80,000.00

139,953.80
60,000.00

111,064.37

86.00%

40,000.00
20,000.00

88.00%

84.00%

40,272.75

82.00%

80.00%
1

REASONS OF NOT ACHIEVING

THE TARGETS
Target Production
Target is lack by 6049 tons which is majorly contributed by following:
Low productivity due to black sports.
Unexpected downtime from operation sides.
Maintenance and Electrical down time of 37 %.

Target Prime Production

Target to achieve prime production was marginally missed by 0.3%.
Main reasons of reduced prime percentage are because of following
defects:
Scratch lines
Black spots
Track off

MAINTENANCE DEPARTMENT
Maintenance section covers the total actual cost
and total budget cost
It compares the capital cost of each item of line
Evaluate the downtime hours of Maintenance in

each quarter with different item.

Depicts the quarterly proactive Maintenance

hours wrt to each items.

SUMMARY OF MONTHLY
MAINTENANCE COST
Maintenance Cost 2013-14
1,600,000

140

1,400,000

120

1,200,000

100

1,000,000

80

800,000

1,514,548
60
600,000
1,095,411
1,066,213
958,326
949,520
890,52440
400,000
700,359
697,821
666,097
641,691
20
481,576
461,613
200,000
0

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Total Budget Rs
10,658,181 Consumed Budget Rs
10,143,637

Mar

Apr

May

Jun

MAINTENANCE EXPENSE

Recoiler

Total Cost (Rs)

with Capital Items

105,740

Accumulator

566,779

Chromate Section

999,867

Tension Leveler

889,640

Quench Section

188,352

Pot Accessories

5,414,645

Furnace

7,837,281

Bridle Unit
Seam Welder

1,039,849
87,400

Uncoiler

339,517

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

CAPITAL EXPENSES
Intermediate Roll Dia 40

208,069

Work Roll Dia 70

91,028

Work Roll Dia 55

48,217

Work Roll Dia 30

Capital Items

218,868

Stab/Correcting Roll

2,402,835

Sink Roll
Heat Exchanger Tubes

1,562,449
78,952

Heat Exchanger
Hearth Roll Non Coated

540,685
749,840

Hearth Roll Coated

3,428,289

Radiant Tube
-

371,539
1,000,000

2,000,000

3,000,000

4,000,000

EXPENSES ON EACH EQUIPMENT

Cost % by Equipment

Furnace; 45%
Bridle Unit; 6%
Seam Welder; 1%
Pot Accessories; 31%
Uncoiler; 2%
Recoiler; 1%
Accumulator ;Quench
3%
Section; 1%
Chromate Section; 6% Tension Leveler; 5%

Quarterly Breakdown Maintenance Hrs

160
140
120
100
80
60
40
20
-

99

Jul 13- Sep 13

120
100
80
60
40
20
-

123

Oct 13- Dec 13

117

Jan 14- Mar 14

150

Apr 14- Jun 14

Breakdown
Maintenance Hrs
112
3835
28

8
- - - -

33
33
20
16
15
5 410
43
-

- -

4746
146 21
1016
1

Quarterly Proactive Maintenance Hrs

160
140
120
100
80
60
40
20
-

140

Jul 13- Sep 13

119

Oct 13- Dec 13

80

Jan 14- Mar 14

147

Apr 14- Jun 14

Proactive Maintenance Hrs

88

90
80
59
70
43
60
34
50 28 28
30
29
24
22
40
20
19
19
16
14
13 15
30
9
8
4
255
2 3 4
2336
20
10
-

PACKAGING SECTIONS
This section solely covers the cost analysis of

packaging wrt the monthly production

Compares the consumption of packaging material

with the actual production.

Depicts the causes of trend in over consumption

of packaging material and its cost.

Monthly Comparison of Production & Packaging Cost

PRODUCTION

PACKAGING COST

18,000

700

16,000

600

14,000
500

12,000

400

10,000
Production(tons)
8,000

Packaging Cost (Rs/ton)

300

6,000

200

4,000
100

2,000
41469

41501

41533

41564

41596

41627

41659

41691

41719

41750

41780

41811

Months

Above chart reflects that initially packaging cost is high as compared to

production.
In 3rd quarter packaging cost is nearly same as that of production
While in the last quarter months packaging cost go down noticeably.
Production of PVC plant and less consumption of packaging items are certainly
the reason of this low packaging cost of finished coils.

Consumption of Packaging materials Over monthly Production

Production
18,000

Consumption of Packaging materia

70.00

16,000

60.00

14,000
50.00

12,000

Production(tons)

10,000

40.00

8,000

30.00

6,000

consumption of packaging material(tons)

20.00

4,000
10.00

2,000
-

41501 41564 41627 41691 41750 41811

41469 41533 41596 41659 41719 41780
Months

This chart clearly shows that packaging materials are over consumed than
the production.
Consumption matches with demanded production at the end of annual year.
Over consumption of packaging material leads to packing costly.