Minimization of Short Lengths in Rolled Steel

Its wise but old advise, well known to all mill operators. The problem is when we have to roll 40+ types of profiles (several grades in many profiles) in product range, each profile ask for different weight of bloom which is near impossible task. I wanted to know ways and means to optimise.

Why can't you have different bloom sizes for different profile runs?

GA Milo for understanding the problem and sympathising with me and giving practical suggestions. Like you suggested, we want to go for two or three different lengths of blooms which may suit most high volume products. The problem is so many variables like tolerances in length and cross section area of products rolled, tolerance in length and cross section area of blooms. Acceptable range of bloom cross section is more wide (235x235 to 250x250). However most of the volume is nearby 245x245 mm. Grades and profiles follow market demand. Stacking blooms of several different grades and lengths adds to the complication.

I wanted to know whether some mill operators developed any algorithm or formulation to fit in to some model for optimization for feasible solutions with sensitivity analysis for several variables.

Could your marketeers find a market for the short lengths?

Whatever you do , you'll have some...

Yes it is, but at compromised prices. Higher the volume of short lengths, more to loose.

I was thinking that instead of scrapping the short lengths from our standard process (i.e. getting mateial only price), you could store short term, then offer a bundle of worked short lengths at a sensible price to operations that wanted shorter lengths.

You wouldn't be able to guarantee meeting demand, but if you know your rolling plans for the next 2 - 6 months, could say when each grade would be available.

You get a greater value for your "scrap" and your customers get their raw product at a good price.

I'm not sure if this is practical in your industry, it's just some out of the box thinking. I was not advocating intentional manufacture of short lengths! More of a sideline suggestion, adding value to your scrap.

Good luck

I'd like to comment on this if I might.

This proposal would create two classes of material available to buy- prime (meets all market expectations for propoerties including length) and secondary (does not meet market requirements for customary length).

The existence of substantial tonnages of secondary product will put downward pricing pressure on the prime product.

The corrolary to this is bad money drives out good money.

Avoiding the production of inferior (secondary) product is best course, minimizing the production of nonprime is a less desired option, producing current amounts of secondary is wasteful and is the identified problem to be solved.

The pressure to discount in the presence of large quantities of less expensive substitutes (short lengths) will make the mill unprofitable in the long run.

Milo

Speaking as a small quantity steel buyer who is redesigning a product to use a narrower range of steel products in its manufacture so as to have access to the LOWER prices of buying in larger quantities, I think English Rose has an interesting concept. My scrap losses and restrictions on single piece part size from buying in small volume are very high. Producers (or their spokesmen) rightly want their piece of the pie, but I can tell you that volume of sales will change with marketing. Profit, not volume, should interest everyone. I personally am going for higher tool(ing) costs and reduced product lifetime to justify buying in larger quantity( one coil instead of sheet, width, stainless, etc). Volume allows a wider range of transporting distance choices - to allow access to different retail outlets. Yes, I am a small potatoes buyer, but if I can move volume up to wholesale quantity, I can move from marketing a premium product (at low volume) to marketing a standard product (at much higher volume), I would be more profitable. Maybe even do both! The loser here might be my local retailer, but I do not think so. The option of having an emergency source for designed products, the options to do custom modifications for special consumers, for a research program (cor-ten, ss, etc) would all go through small purchases - at "retail". In the USA we have a problem with generating higher manufacturing volume. Marketing ideas can be an answer. Increasing volume is a way everyone wins. Who says you have to charge less for a bundle of selected sizes? English Rose has an approach which could increase volume - if it is done right.

As ours is a large integrated steel plant, crop lengths up to 3 m length is recycled in convers in steel melt shop. 3-6 m lengths are bundled separately and sold to small buyers at lower price, but we want to reduce this volume. Prime length is 12 m. 6-12 m is also short length but we sell for the same price. Some customers are not happy to pay same price, so we want to reduce this volume also.