Production operations and management

2. COMSATS Institute of Information and Technology
Defence road, off Raiwind Road, Lahore
PRODUCTION OPERATIONS AND MANAGEMENT
“SUPPLY CHAIN ANALYSIS OF DG CEMENT”
PRESENTED TO : SIR ABUBAKAR SIDIQQUI

3. GROUP MEMBERS
ASHHAD ABASS GILANI (026)
RIAZ HUSSAIN (060)
MUHAMMAD YOUSUF (082)
ZUHAIR BIN JAWAID (094)
SESSION: SP14-BEC(B)

4. SUPPLY CHAIN MANAGEGEMENT
IT IS DEFINED AS :
• "the supply chain encompasses all of those activities associated with moving goods from the
raw-materials stage through to the end user.“
LaLonde defines supply-chain management as follows:
• "The delivery of enhanced customer and economic value through synchronised management
of the flow of physical goods and associated information from sourcing to consumption. ".

5. Supply chain refers to :
• inbound and outbound transportation.
• Warehousing
• inventory control
• Sourcing, procurement, and supply management fall under the supply-chain
umbrella
• Forecasting, production planning and scheduling, order processing, and
customer service all are part of the process as well

6. Objectives:
• reducing working capital
• taking assets off the balance sheet
• accelerating cash-to-cash cycles
• increasing inventory turns, and so on

7. SUPPLY CHAIN MANAGEMENT SCHEMATIC FLOW

8. SUPPLY CHAIN ANALYSIS OF DG CEMENT
INTRODUCTION
• D.G. Khan Cement Company Limited, (DGKCC) is amongst largest cement manufacturers of
Pakistan
• production capacity of 14,000 tons per day
• DGKCC has three cement plants, two plants located at Dera Ghazi Khan and one at Khairpur
Distt. Chakwal
• All the plants are based on latest Dry Process Technology

9. SUPPLY OF RAW MATERIALS (Point of Origin)
In general, cement is a mixture of :
• Limestone
• Sand
• Clay
• Iron
• Cement plants are normally located near the quarries which are the source of their
main raw materials
• The main reason for their location is that 1.6 tons of main raw materials are
required to produce 1 ton of cement

10. Continued…..
• DG Cement is getting their supply of raw materials from quarries (limestone
mountains)
• located 7-8 Km upward from plant site
• Nearly 10,000 Tons of raw material is transferred from quarries to plant site
daily
• VMS is present in which day to day electronic receipts are genereated
• bills are paid annually to government

11. Continued….
• DG Cement has taken limestone mountains from government of Pakistan on lease.
• Gypsum is supplied from taunsa shareef , because Gypsum mountains are present
there
Operations involved:
• Drilling
• Blasting

12. supply of raw materials

13. Inbound Logistics
• Inbound logistics refers to the transport, storage and delivery of raw
material coming into a industry or company.
• DG Cement is implementing inbound logistics in the following way:
• Conveyors takes the new material from quarry to the factory site
• The limestone and shale to store
• The small fragments are loaded on the 7-Km long 3 belts conveyor system
running over rough in the open space.

14. Conveyor belts

15. Raw Material Storage
• The raw feed from the belt conveyer directly falls on the rotating table of the raw mill
• The table contains on 3 crushing rollers
• The raw feed is crushed into fine powder with these rollers
• Material is sent to CF Silo for storage
CF Silo (continuous flow):
• powdered feed from the raw mill are conveyed to the bucket elevator
• The bucket elevator picks this feed and take it to the top of the CF silo and then throws it
in.

16. Continued…..
• Specifications of a CF silo
• Capacity = unit 1 unit2
7000 tons 7500ton
• It is made of concrete & can store raw mill for long time.
• Quantity of raw mill product is properly documented
• Quality is also evaluated via various tests and is Documented

17. Storage Silos

18. Production operations
• Productions operations at DG Cement are :
• continuous
• carried out according to production planning sheets or log sheets.
Various production operations are :
• precalcination
• heating in Kiln
• clinker cooling

19. Continued…..
• Dust collection
• Clinker crushing
• Clinker storage
• Gypsum Addition
• Mixing of Additives
• Metal Detection

20. Production Operations at DG Cement

21. Quality Control
• (QC) is a procedure or set of procedures intended to ensure that a manufactured
product or performed service adheres to a defined set of quality criteria or meets
the requirements of the client or customer.
• There are two types of Quality Control Procedures in DGCC
• Chemical Labs:
To check the Composition of different components of Cement with
the help of X-ray Analysis.
• Physical Labs:
To check the Setting Time, Expansion Testing and Compression
Testing of different components of Cement.

22. Packing
The packing plant comprises of 2 units :
• Both units consists of 4 packers
• Each packer can pack 8 bags at a time
• Each packer has a capacity of 100 tons/hr
• The cement bags are attached manually to the rotating packer which fills the cement bag
• When the bag is filled up to the required weight 50kg, it automatically falls on the conveyor
belt which takes the bags to the roller conveyor
• From these rollers the bags slide to different channels and finally cement bags are loaded on
the trucks for dispatch

23. Packing at DGCC

24. Outbound Logistics (Dispatch)
• In dispatch department the main work is to dispatch the cement according to
the orders of sales offices
• After taking report from the authorities the dispatch department makes truck
loading advice according to which cement bags are loaded on truck
• It basically shows the quantity, location of unit, truck driver name, truck
number and destination of loaded cements bags

25. continued…..
• Dispatch department also make daily report according to:
• Truck Loading Advice (Inventory Transfer)
• Truck Loading Check Report
• Unit Wise Dispatch Detail
• Gate Pass (Inventory Transfer)
• Office Wise Dispatches

26. Dispatch

27. Products
Two different products are produced at DGKCC namely Ordinary Portland
Cement and Sulphate Resistant Cement. These products are marketed through
two different brands:
• DG brand & Elephant brand Ordinary Portland Cement (It is also called the
OPC and its demand is about 92% because of commonly used).
•DG brand Sulphate Resistant Cement (It is also called the SRC and its demand
is about only 8% because it is only used in standing the foundations its main
work is to finish the pours produced).

28. Products

29. Distribution (Point Of Consumption)
• DGKCC has a countrywide distribution network and has more than 1000
distributors
• This extensive distribution is handled by five regional sales offices
• These regional sales offices operate in assigned areas and have network of
dealers in each area to achieve maximum sales in their territories
• direct sales are also made to institutional Clients for Projects

30. Retail
• Retailers buy cement according to their selling capacity from Distributors and the 5 regional
sales offices
Export Market
• DGKCC enjoys a good market share of :
• Indian subcontinent
• Middle East
• East & South Africa

31. Summary of cement industry

32. Any Questions ?