Summer Project Report Srikanth 10FN-109

Production Cost Management and MIS Formulation A
Case Study at Integrated Steel Plant
A Summer Project Proposal for
Post-Graduate Diploma in Management

By
Srikanth Kumar Konduri
Under the guidance of

Mr. Sandeep Banka
DGM, Costing & MIS
Adhunik Metaliks Limited
Dr. Gunjan Malhotra

Assistant Professor
IMT, Ghaziabad
May, 2011
Adhunik Metaliks Limited 2

Production Cost Management and MIS Formulation

By
May, 2011


By

Under the guidance of
Mr. Sandeep Banks
DGM, Costing & MIS
Dr. Gunjan Malhotra

Assistant Professor
IMT, Ghaziabad
May, 2011

Certificate of Approval
The following Summer Project Report titled "Production Cost Management and MIS Formulation A
Case Study at Integrated Steel Plant" is hereby approved as a certified study in management carried out
and presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of Post
Graduate Diploma in Management for which it has been submitted. It is understood that by this
approval the undersigned do not necessarily endorse or approve any statement made, opinion expressed or
conclusion drawn therein but approve the Summer Project Report only for the purpose it is submitted.
Summer Project Report Examination Committee for evaluation of Summer Project Report
Name
1. Faculty Examiner
Dr. Gunjan Malhotra
2. PG Summer Project Co-coordinator
Mr. Sandeep Banka
Signature
_______________________
_______________________

Certificate from Summer Project Guides

This is to certify that Mr. Srikanth Kumar Konduri, a student of the Post-Graduate Diploma in
Management, has worked under our guidance and supervision. This Summer Project Report has the
requisite standard and to the best of our knowledge no part of it has been reproduced from any other
summer project, monograph, report or book.
Dr. Gunjan Malhotra

Assistant Professor
IMT, Ghaziabad
Date: 31st May 2011
Mr. Sandeep Banka

DGM, Costing & MIS
Chadrhariharpur, Rourkela
Date: 31st May 2011

Acknowledgement
I would like to express my heartiest gratitude to Mr. Ratan K. Saha (General Manager - HR) Adhunik
Metaliks Ltd. Kolkata for giving me an opportunity to work as a summer intern and work on the project
titled Production Cost Management and MIS Formulation A Case Study at Integrated Steel Plant. I am
sincerely thankful to Mr. Sandeep Banka (DGM, Costing & MIS) under whose guidance I have
successfully completed this project. I thank him for his consent, encouragement, and warm response and
for filling every gap with valuable ideas that has made this project successful. I would also like to thank
Mr. Siba Kumar, Mr. Sribesh Beltharia(Manager-HR), Mr. Ratan Ray (HOD-Training & Development)
and Mr. Prashant Sahoo without whose support the project would not have been completed.
I thank my college, Institute of Management Technology Ghaziabad for having given me this
opportunity to put to practice, the theoretical knowledge that I imparted from the program. I thank my
internal project guide, Prof. Gunjan Malhotra for having guided and supported me through the course of
the internship. I take this opportunity to thank my parents and friends who have been with me and offered
emotional strength and moral support.
Sincerely,

Abstract
Production Cost Management and MIS Formulation A Case Study at Integrated Steel Plant
By
Steel Industry has been the traditional growth driver of Construction, Infrastructure, Capital Goods &
Automobile sectors in India (based on the report: CRISIL research for FY2010). Research report
Indian Steel Industry Outlook to 2012 ranks India as 5th largest manufacturer of steel in the world.
As per The Ministry of Steel, Indias steel manufacturing capacity is likely to touch 124.06 million
tons by FY2012 and 293 million tons by FY2020. Steel industry contributes around 2% of the Gross
Domestic Product (GDP - $1.537 Trillion for FY2010 as per International Monetary Fund) and is
poised to grow at a CAGR of 10% during FY2010-FY2013, surpassing Indias GDP growth (8.6% for
FY2010 and 9% for FY2011). Growth is majorly fuelled by the rise in demand for construction projects
which may go up to $1 Trillion.
Gaining from the growth tide of this sector, Adhunik Group has established an integrated steel plant at
Rourkela during FY2002, which is now earning a PAT of $40.65 Million in FY2011, recording a PAT y-oy growth of 31.65%. After having completed the integration of steel making facilities over past 8 years,
now AML is looking towards optimizing its product-mix and internal operations for maximizing
profitability with existing capacity.
Purpose of this summer internship program is to study the product costing system at AML plant and
formulate an MS-Excel based MIS, which will assist in taking decisions related to product mix and
setting operational parameters.
The project deliverables are:
1. Back tracing the flow of costs from raw-material to finished rolled products.
2. Study of Coke-Oven, DRI, Sinter and FAD plants and perform a cost-driver analysis from the
perspective of quality consistency.
3. Customer, Grade classification matrices based on total Contribution and total Quantity.
4. Use of Linear Programming for optimizing product-mix of FAD plant to minimize input cost.
In order to formulate different objective functions for above mentioned plants and obtaining the
optimization solution subject to corresponding constraints using MS-Excel Solver, the exercise required
frequent interactions with the HODs of respective plants and seeking their inputs on critical aspects
affecting the plants productivity. Pivot Table is used for grouping the customers sales data and SPSS is
used for forming the Customer-Grade classification clusters.

Table of Contents
Acknowledgement..........................................................................................................................6
Abstract..........................................................................................................................................7
Table of Contents............................................................................................................................8
List of Figures...............................................................................................................................10
List of Tables................................................................................................................................10
Abbreviations..10
I
Introduction.........................................................................................................................10
1.1 Steel Sector in India...................................................................................................11
II
About AML........................................................................................................................12
2.1 Companys Vision Statement.....................................................................................12
2.2 Companys Goals.......................................................................................................12
2.3 Facilities.....................................................................................................................12
2.4 Steel Making Overview.............................................................................................13
2.5 Operations..................................................................................................................14
2.6 Production planning framework:................................................................................16
III
Case Study........................................................................................................................16
3.1 Problem Statement.....................................................................................................16
3.2 Objective....................................................................................................................16
3.3 Scope.........................................................................................................................16
IV
Project Deliverables..........................................................................................................17
4.1 Case Modeling...........................................................................................................17
4.2 Solution Framework...................................................................................................17
Phase-1: Product Costing System.......................................................................................17

5.1 Per Unit Cost calculations of Rolled product:............................................................18
5.2 Per Unit Cost calculations of product from SMS plant:.............................................19

5.3 Per Unit Costing statement of 40CR4B grade rolled Billet........................................20
VI
Phase-2: Perceived Yield improvement suggestions of critical plants...............................21

6.1 Observations from the study of Sinter Plant:..............................................................22
6.2 Sinter Plant process related calculations for March 11.............................................24
6.3 Observations from the study of DRI Plant:................................................................25
6.4 DRI Plant process related calculations for March 11................................................26
6.5 Observations from the study of FAD Plant:...............................................................27
VII
Phase-3: Customer Classification....................................................................................28

7.1 Top 20 Customers whose contribution to the total revenue is greater than 1%..........28
7.2 Billets:........................................................................................................................29
7.2.1 List of Top 20 Billet Customers:................................................................29
7.2.2 A Category Billet Customers:..................................................................30
7.3 Rolled Products:.........................................................................................................30
7.3.1 List of Top customers for rolled products...................................................30
7.3.2 A Category Rolled Product Customers:...................................................31
7.4 Pig Iron:.....................................................................................................................31
7.4.1 List of the Top customers of Pig Iron.........................................................31
7.4.2 Semi Finished Ferro Alloys:.......................................................................32
7.5 List of Top customers of Ferro alloys.........................................................................32
7.6 A Category High Quality Alloy Steel Customers.....................................................33
VIII
Conclusion & Recommendations..33
IX
References.35

List of Figures
Figure No:
Description
Page
Figure 1: Sector-wise steel consumption......................................................................................11

Figure 2: Pie chart showing production of crude steel across the world......................................11
Figure 3: Integrated flow-chart of Steel Making with rated capacities........................................13
Figure 4: Material-wise sales volume distribution.......................................................................15
Figure 5: Material-wise revenue distribution...............................................................................15
Figure 7: Slag Volume Vs Al2O3% in Sinter...............................................................................24
Figure 8: MBF Slag Volume Vs HB Temp...................................................................................24
Figure 9: %FC Vs Coke Rate in Sinter.........................................................................................24
Figure 11: DRI Coal Consumption analysis..................................................................................26
Figure 12: KWH Consumption per ton of DRI production...........................................................26
Figure 13: Raw-Material price movement of DRI........................................................................26
Figure 14: Formulation Model of FAD plant input mix................................................................27
Figure 15: Constraints, objective function for optimizing FAD production cost..........................27
List of Tables
Table No:
Table 1:
Table 2:
Table 3:
Table 4:
Description
Page
Per Unit Costing statement of 40CR4B Rolled product.................................................20

Per Unit Cost statement of Coke Oven...........................................................................21
Pu Cost calculations of Sinter Plant................................................................................22
Pu cost calculations of DRI plant...................................................................................25
Abbreviations
DRI : Direct Reduction Iron
FAD : Ferro Alloys Department
EAF : Electric arc Furnace
LF : Ladle Refining Furnace
VD : Vacuum Degasser

CC : Continuous Caster
MBF : Mini Blast Furnace
SMS : Steel Making Shop
AOD : Argon Oxygen Decarburizer
I Introduction
1.1 Steel Sector in India
India has traditionally been one of the major producers of steel in the world. Till FY1990s the steel
industry of India was regulated and controlled by government policies. India has set a vision to be an
economically developed nation by FY2020. The steel industry is expected to play a major role in India's
economic development in the coming years. The steel industry of India has a very high growth potential
and is expected to register significant growth in the coming decades. India is expected to emerge as a
strong force in the global steel market in coming years.
Steel industry has a major role to play in the
economic growth of India. With new global
acquisitions by Indian steel giants, setting up of
new state-of-the-art steel mills, modernization of
existing plants, improving energy efficiency and
backward integration into global raw material
sources, India is now on the center of the global
steel map. Consumption of steel in the
construction sector, industrial applications, and
transport sector has been on the rise and special
steel usage in engineering industries such as
power generation, petrochemicals and fertilizer
industry is also growing.
India has retained its position as the 5th largest
Figure 1: Sector-wise steel consumption
producer in FY2010 and recorded a growth of

11.3% as compared to FY2009. India has also
emerged as the largest sponge iron/direct reduced
iron (DRI) producing country in the world in
FY2010, a rank it has held on since FY2002.
Sponge iron production grew at a CAGR of 11% to
reach a level of 20.74 million tonne (MT) in
FY2009 as compared to 14.83 MT in FY2005. India
is expected to become the second largest producer
of steel in the world by FY2015, on account of
growing steel demand, rich resources base of iron
ore, skilled manpower and vast experience of steel
making and the huge capacity expansions are
planned and being executed in the steel sector.
Figure 2: Pie chart showing production of crude steel across the world

II About AML
Adhunik Metaliks Limited (AML), the flagship company of Adhunik Group, has emerged as one of the
fastest growing alloy, special and construction steel manufacturing companies in the country with
significant presence in mining and power sectors through its subsidiaries. It has completed almost all
major capital expenditure for both backward and forward integration and emerged as an integrated
manufacturer of special steel with downstream utilization of products. It has set up an integrated steel
plant of 0.45 million ton at Sundergarh, Orissa, with state-of-the-art technology.
Within a very short span of time, the products of the Company have been recognized by the major
automobile component manufacturing and automobile companies like Tata Motors, Mahindra and
Mahindra, Guru Nanak Forging, Ramkrishna Forging and many more. The company is catering to a
diversified market comprising automobiles, telecom, power, railways, engineering, oil & gas and
construction sectors.
2.1 Companys Vision Statement

To attain leadership in all our businesses through relentless pursuit of excellence, while delivering
superior value to our stakeholders.
2.2 Companys Goals
1. To be one of India's fastest growing conglomerates
2. To be among the top 5 in India across all our businesses
3. To continuously identify and seize global opportunities for growth
4. To be one of the best places to work for
5. To contribute to society by delivering superior value to all our stakeholders
2.3 Facilities
The company set up an integrated steel plant of 0.45 million ton per annum at Sundergarh, Orissa, with
state-of-the-art technology. The company has its Corporate Office in Kolkata. The company has

customers across the country, spanning the categories Automotive OEMs, Forging & Engineering,
Telecom & Power/Oil & Gas and Agricultural Equipment. It has marketing offices in seven states in India
namely West Bengal, Jharkhand, Orissa, Punjab, Haryana, Maharashtra and Karnataka. Tata motors,
BHEL, JML AUTO LTD, RKFL, SAIL and SIEMENS are few of its esteemed customers.
2.4 Steel Making Overview

Figure.3 given below portrays the flow of materials and respective plant capacities involved in the steel
making process. The scrap generated at various stages is reused in EAF and based on the requirement of
customer; steel will be produced either through EAF-LF-VD-CC route or via EAF-AOD-CC route.
Raw-materials blending (for Iron-ore, Coke) will be done based on the material availability procured from
various mining facilities in order to ensure quality consistency for minimizing the customer rejections.
Sponge-Iron is produced from DRI plant, while MBF produces hot-metal and SMS plant produces
Billets/Blooms. Pig-Iron is produced as a by-product of MBF and FAD plants.
Figure 3: Integrated flow-chart of Steel Making with rated capacities
Coke-Oven Plant: Fulfills the Coke requirements of the plant by producing it from Coal.
Sinter Plant: Produces Iron-ore Sinter using the iron-bearing waste material generated within the
plant. It is used in Blast Furnace to enhance the process of hot-metal making.
DRI Plant: Produces Sponge-Iron by directly reducing the Iron-Ore in solid state using CO gas.
It forms 50%-55% of charge-mix in the EAF of SMS plant.
MBF Plant: Produces the hot-metal using Iron-Ore and Sinter and is tapped by SMS plants.

SMS Plant: Produces steel products in the form of Billets/Blooms using the Sponge-Iron from
DRI and hot-metal from MBF.
Rolling Mill Plant: Rolls the Billets/Blooms produced from SMS plant as per the customer
specifications to ensure adequate compactness.
Captive Power Plant: Partly satisfies the power requirements of this steel plant. It utilizes the flue
gases generated from DRI plant to fuel the turbines and generate electricity.
Coal-Washery Plant: Crushes and washes the incoming Coal to make it suitable for DRI process.
AOD Unit: Argon-Oxygen-Decarburize is used to remove the remaining Carbon from the
processed hot-metal of SMS plant in the presence of an inert gas, used for producing high quality
stainless steel grades.
2.5 Operations
The products manufactured in AML are:
(Note: Dimensions mentioned are in mm-millimeters)
Billets: These are long rectangular blocks of steels which would need further processing for
making auto parts from it.
Billets Size
125 x 125
160 x 160
200 x 200
Bloom Size
240 x 240
300 x 320
The price of the Billets varied from Rs 44000/- to 22000/- per ton according to the grade quality.
Rolled Products: Billets are further processed into Rolled products in Rolling Mill that are used in
forging process for the production of auto parts. Rolled Products include Round Cornered Square
(RCS), Round Bars, TMT product, Wire Rods. According to the grade quality the price of Rolled
product varied from Rs 66000/- to Rs 23000/- per ton.

Pig Iron: This is the crude form of Iron that is sold to other manufacturing companies. The price
of Pig Iron is steady and it varies only with the fluctuations with the Iron prices in the world. The
price is around Rs 23000/-.
Semi-Finished Ferro Alloy: These are special carbon steels manufactured in FAD-Ferro Alloy
Division. These Steels are used in making bearings, gears and other auto parts. These are special
steel alloys and the prices of these steels vary from Rs 81000/- to Rs 35000/- depending on grade
quality.
Others: The various other products of AML include trading material, semi-finished gases, sized
coal, stores and spares etc.
The total production capacity of the plant is 0.45 million ton per year. Out of this Billets, Rolled products,
Pig Iron, Semi Finished Ferro Alloys form 0.38 million ton.
Figure.4 shows the percentage quantity of the products sold by AML during FY2010. It can be seen from
the graph that Billets constituted largest according to the volume sold, followed by Rolled Products, Pig
Iron & Semi Finished Ferro alloys. Sales of billets & higher value rolled products increased 22% & 15%
y-o-y and 23% & 3% q-o-q respectively due to higher demand in the domestic Auto industry.
Figure 4: Material-wise sales volume distribution
Figure.5 shows the contribution of each type of product to the total revenue of the company during
FY2010. As seen from the graph Rolled products contribute the highest followed by Billets, Pig Iron and
Ferro alloys. The total revenue of AML during FY2010 is $292.5 Million.
Figure 5: Material-wise revenue distribution

2.6 Production planning framework:

Production process is mainly driven by the customers demand. SMS & Rolling Mill plants play a crucial
role in satisfying customers demand. Demand for SMS Plants and Transportation are constrained by the
planned capacity of Rolling Mill. Sales and Distribution is also a major concern of integrated production
planning. Purchasing department is responsible for procuring raw-materials and fluxes. PPC department
deals with facility allocation at different production facilities and takes make/buy decisions before
accepting a production order. Quality Assurance department studies feasibility of every received order
and also does periodic end product sampling of various sub-plants, for achieving customer satisfaction.
With the implementation of SAP R/3, AML enjoys seamless transfer of information across various
departments, so that there are no time delays in gaining access to time critical operational information. It
also allows every department to align their individual production plans with that of the Central production
plan provided by PPC, so that day-to-day monitoring can be done to reduce idle time, further enhancing
the plant utilization capacity.
However, SAP is not yet capable of providing optimal production plans as the customer demands, along
with raw-material availability and prices are frequently changing, product costing is performed using MSExcel and the FICO module is yet to get fully implemented in SAP. As of now, PPC is actively
coordinating with HODs of various production departments to match the customers demand.
III Case Study

3.1 Problem Statement
Motivated by the growth prospects in Iron & Steel Industry, many business giants are planning to setup
their in-house integrated steel production facilities, thus making steel as a highly competitive
commoditized product. Going by the strategy of AML to become a high quality, lowest cost steel
producer, CEO of AML wants to look into the areas of improvement in various production plants for
enhancing their respective yields and also look into the profitability of various grades being produced by
Costing department, along with identification of critical customers by PPC to increase the business
transactions.
3.2 Objective
To report the operational aspects of production houses from the financial perspective.
To classify the steel products and customers into Quantity-Contribution matrices.
To formulate a pilot Linear Programming model for optimizing product-mix of FAD plant and
trace the costing of a particular steel grade from Rolling Mill to that of production houses.
3.3 Scope
Scope of the study is limited to the production cost details available for March 11.

Maximum capacities and efficiencies are limited by the corresponding parameters during the
month of achieving best ever production volumes achieved till date.
IV Project Deliverables
Analyzing major cost drivers of DRI Plant and formulating costing relationships.
Analyzing major cost drivers of Sinter Plant and formulating costing relationships.
Studying Coke-Oven plant and suggesting possible technological up gradations.
Classifying customers and grades into Quantity-Contribution matrices and identifying value
adding customers, grades.
Back tracing Product Costing from the Rolling Mill plant to the basic production houses.
Optimizing the Product-mix of FAD plant for minimizing production cost.
4.1 Case Modeling

4.2 Solution Framework
Project is executed in four phases. During phase-1, the costing system is understood and analyzed based
on the data available in the costing sheets of individual plants for March 11 and a back tracing equation
is designed to connect align end product costing with the direction of material flow. In phase-2, a live
field study is performed to have a hands-on experience of production plants working and also interacted
with corresponding HODs to know their perception about plants performance along with projected
expectations in case of implementing process changes, and the limiting capacity constraints. In phase-3,
production planning and marketing framework is understood from the PPC department and sales data
related to the grades and customers during FY2010 is collected for further classification analysis. Finally,
in phase-4 linear programming method is formulated for product-mix optimization in FAD plant.
V Phase-1: Product Costing System

Steel is one of the traditional types of manufacturing industry, which usually produces uniform set of
products on a continuous basis. So, composition of products produced in a particular campaign
remains the same. Process Costing is adopted to account for the amount of resources consumed in a
particular process along with overhead incurred in the form of electricity & fuel consumption,
depreciation of fixed assets, and the conversion costs include the cost of labor, fluxes, stores & other
consumables.

As the blend of Raw-material and fluxes used contain components procured from various supply
sources and various steel grades are being produced by the addition of alloys to the basic hot-metal
charge in DRI, all the costs incurred will be accounted on an average basis for any particular month
based on the production data obtained from individual plants on a daily basis.
Allocation of overheads is done according to the proportion of quantity produced from different
plants if the output of a plant is being distributed to other two or more plants. The fixed costs of
individual plants will be cumulated as the materials move across the value chain from raw-material
stage to Sponge-Iron/Pig-Iron/Semi-finished Ferro Alloy/Billet or Bloom/Rolled Product stage; these
costs will be treated as captive consumption costs as they are consumed within the plant operations.
Depreciation of fixed assets is accounted using Written-Down-Value method and added with Interest
paid on Working Capital, Long-Term Loans, and budgeted allocation of Salaries to calculate the
financial cost. (Part of Overhead Cost)
The following example is used to describe Product Costing at AML:
Suppose the product produced is: 1ton of a Rolled Product-AML of grade 40CR4B
It will be a product coming out of SMS to the Rolling Mill and then will be rolled.
SMS Plant
40CR4B Rolled
40CR4B Billet
Rolling Mill
40CR4B finished
product
5.1 Per Unit Cost calculations of Rolled product:

[Cost of 1ton of Rolled 40CR4B] = [Cost of 1ton of 40CR4B Billet] + [Total Rolling Cost PMT]
[Total Rolling Cost PMT] = [Financial Cost of Rolling Plant PMT] + [Net Rolled Cost PMT]
[Net Rolled Cost PMT] = [Gross Rolled Cost PMT] [Recoverable end-cuts & miss rolls PMT]
[Gross Rolled Cost PMT] = [Loss on Yield PMT] + [Rolling Conversion Cost PMT]
[Rolling Conversion Cost PMT] = Cost of ([Furnace Oil PMT] + [Power Consumption PMT] +
[Blast Furnace Gas PMT] + [Coke Oven Gas PMT] +
[Contractor Fixed PMT] + [Stores & Spares PMT])
[Financial Cost of Rolling Plant PMT] = Cost PMT of ([Salary] + [Administration] + [Depreciation]
+ [Long-Term loan interest] + [Working Capital loan interest)]
[Loss on Yield PMT] = [Average cost of a Billet PMT] [Average cost of a Billet PMT]
[Rolling Mill Yield]
[Rolling Mill Yield] = 100% - [Scaling & Burning Loss%] [End Cuts Loss%] [Handling Loss%]

However, for the purpose of overall plants costing, all the production grades will be measured on a
cumulative basis and overall average per unit cost will be used for management accounting purpose.
Next page describes the procedure to calculate average per unit cost of Billet produced from SMS
plant, which on a similar basis as that of Rolling Mill will accumulate the cost of production of
different grades on an individual basis and overall average cost is calculated for accounting purpose.
5.2 Per Unit Cost calculations of product from SMS plant:

[Cost of 1ton of Billet from SMS] = [Raw-Material Cost Pu] + [Conversion Cost Pu] +
[Overhead Cost Pu]
[Raw-Material Cost Pu] = [Charge-Mix Total Cost Pu] = Pu Cost of ([Hot-Metal] + [Pig-Iron] +
[Sponge-Iron] + [Scrap] + [Pooled Iron] +
[Runner Skull] + [Sulphur Iron] + [SRP])
[Conversion Cost Pu] = Cost Pu for consumption of ([Power] + [Gases] + [Electrodes] + [Fluxes] +
[Carbon] + [Alloys])
[Overhead Cost Pu] = Cost Pu for consumption of ([Stores & Spares] + [Contractors] + [Refractory]
+ [Other maintenance]) + [Financial Expenses Pu]
[Other maintenance Cost Pu] = Cost Pu for consumption of ([Pentasol] + [Water] + [Steam for VD] +
[HSD] + [Furnace oil] + [Blast Furnace Gas])
[Financial Expenses Pu] = Pu expense of ([Salary] + [Administration] + [Depreciation] + [Long-Term
loan interest] + [Working Capital loan interest])
[Pu cost of Carbon] = Pu consumption cost of ([Calcinated Petroleum Coke] + [Gun Powder] +
[Breeze Coke] + [Coke Fines])
[Pu cost of Fluxes] = Pu consumption cost of ([Lime] + [DoloLime] + [Dolo Chips] + [CaC2] +
[Flour Spar] + [Synthetic oxidizing Flux] + [Al Mix] + [Casting Powder])
[Pu cost of Gases] = Pu consumption cost of ([Liquid Argon] + [Nitrogen] + [Oxygen])
[Charge to Billet Yield] = [Produced Billet tons]
[Charge-mix in tons]
(Max. = 81%)

[Charge to LM Yield] = [Produced Billet tons] + [Skull standard] + [End-Cutting] + [Skull (extra)]
(Max. = 83.2%)
[Charge-mix in tons]
5.3 Per Unit Costing statement of 40CR4B grade rolled Billet

All the costs are mentioned in INR for a ton of production
Table 1: Per Unit Costing statement of 40CR4B Rolled product
Every cost component is calculated in two phases: In phase-1, the quantity of component consumed
per ton of production will be found and in the phase-2, that quantity will be multiplied by

components unit cost to account for the actual consumption cost of that component for producing 1
ton of 40CR4B. Tracing back in the similar way, entire costing chain till the Raw-Material could be
established.
VI Phase-2: Perceived Yield improvement suggestions of critical plants

Observations from the study of Coke-Oven Plant:
Coke Oven
Coke
Coke Fines
MBF
Sinter
Coke Solid residue obtained from destructive distillation of Coal. It accounts for 60% of hot
metal cost in blast furnace. Performance of blast furnace is significantly influenced by the Coke
quality. Coke quality is a function of its Ash Content, Carbon Content, Size, Moisture, Coke
strength after reaction. Usage of Coke with high ash content and poor strength leads to high Coke
rates in BFs.
Selective Crushing can be done to have a better control of Coal size, homogeneity, M10 index
improves from 1.5 to 2 over a base of 12. (based on pneumatic classifier)
Carbonization technique will achieve maximum technological and economic benefits. Leads to
High Capacity (Increase height/width of ovens), High Throughput (Increasing the flue
temperature narrowing oven width, adoption of thinner walls) ovens. But the trend is reversing
now, oven widths are becoming more (610mm), height-7.85m, Volume-70 Cu.m

Water quenching reduces Coke quality

(0.36-0.42 GCal. Of heat is lost per ton
of Coke, pollution), Opposite to above
and effective one is dry cooling in an
inert atmosphere.
Average lifecycle of coke ovens in India

is 10-15 years, compared to normal
cycle of 25-30 years. Damage to
refractories starts in 5th, 6th years. Online
analysis and controlling Coal blend
quality is considered important to
improve quality of Coke and
performance of coke ovens.
6.1 Observations from the study

Sinter Plant:
Table 2: Per Unit Cost statement of Coke Oven
of
Iron-Ore fines (-10mm)
Coke Breeze
Sinter Plant
Sintered
Iron-Ore
Mini Blast Furnace
Limestone & Fluxes

Silicon and Aluminum are refractive elements with a higher melting range than that of Iron.
Considered as gangue, the presence of above metals in Sinter increases slag volume in BF and reduces the
productivity of Blast Furnace.
Lower is the gangue content, better will be the BF productivity.
Lack of quality consistency arising from the lack of proper raw material blending(Sinter fines from BF
returns, Iron-Ore, Slag from Rolling Mill, SMS and FeS from back filter of SMS), requiring more usage
of Coke for reduction process.

While the required content of
Fe+ in the Iron-Ore is 63%-64%,
presently it is just 59%.
Moisture control is the most
important aspect of production, it
depends on operator and there is
no control valve.
Table 3: Pu Cost calculations of Sinter Plant
Closed circuit moisture

control device for rawmix will reduce water
wastage.
Lack of moisture control and bad

mixing of lime dust leads to
improper blending. The interlocking system will stop the
production process when the
temperature falls below 150
degree Celsius.
Better is the raw material blending, more will be the cost savings from reduced use of Coke.
Instead of feeding lime dust through buckets, it is more beneficial to feed it in definite ratio
in incremental levels from a pressurized tanker through a separate feeder.
An addition of XRF machine will greatly help in obtaining quality consistency, as more
sampling can be done in a shorter time in a day.
Presently, Sinter constitutes 65%-70% of Iron in the hot-metal produced from MBF.
The content of FeO in Sinter has to be maintained at an optimum range of 8.5% - 9%, this content is in
inverse relationship with the amount of Coke used.
However, Coke usage should not be increased to the level that melting happens in Sinter plant.
(Temperature: 1250 - 1300 degree Celsius)
For the plant to be more productive, breakdowns have to be reduced (due to dust
emissions), along with minimum stoppage to ensure continuity of operations. Between
Productivity & Raw-Material quality, improvement of latter factor leads to more
production of Sinter.
However, reduction in the delay time is also an important factor to support above improvement, as
it increases plant utilization.
Sinters of size 10-50mm are sent to BF.

1. When Alumina content increases the Specific Consumption of Coke increases.
2. When Fixed C content increases the Specific Consumption of Coke decreases.
Suggestions:
Raw material with low Alumina and high FeO content.
High FeO improves Sinters strength, transportation and handling properties. [strength~
Tumblers Index]
Low Al2O3 reduces specific consumption of Coke. [Coke Vs Alumina graph]
Alumina being a refractory material, requires more heat to reach softening temperature and hence more
Coke consumption.
Use of Coke with a high Fixed Carbon Content.
Decreases the usage of Coke, hence reducing the cost of production.
Sinter advantages:
Improves productivity of Blast Furnace.
Reduces Coke rate.
Since fluxes enter the burden as Sinter in a calcinated form and reduces thermal load, thus
reduces the coke rate. Slag in BF forms easily and at correct level. [Limestone-CaCo 3, DolomiteMgCo3, CaCo3
Lastly, Sinter utilizes wastes generated in the plant, helps environment.
6.2 Sinter Plant process related calculations for March 11
It can be inferred that the

increase of Al2O3% in the
composition of Sinter will
lead to an increase in the
Slag Volume coming out of
MBF.
Figure 6: Slag Volume Vs Al2O3% in Sinter

As
the
Slag
Volume increases, the HB temperature in MBF reduces, which in turn reduces the
productivity of blast furnace.
Figure 7: MBF Slag Volume Vs HB Temp.
As the %FC in
Coke
Fines
used
for
Sintering
process
increases, the
specific Coke
consumption
reduces, thereby
results in cost
savings
and
pollution reduction.
Figure 8: %FC Vs Coke Rate in Sinter
The below equation shows the relationship between amount of Coke Input used and the Al2O3%,
Fixed Carbon%, obtained after performing a regression analysis.
It can be inferred from the above equation that for a particular range of FC% in the coke fines used in
Sinter production, the amount of Coke Input will vary in proportion with the Al2O3%.

6.3 Observations from the study of DRI Plant:
Table 4: Pu cost calculations of DRI plant
Iron-Ore & Flux
Coal Washery
Coal
DRI
Plant
Sponge
Iron
Coal used in DRI kilns should have high % of Carbon, for producing higher reducing gas
temperature. (Greater than 2.5%) Hot (7000C) high % Carbon in DRI also reduces Carbon
Dioxide generation. Ancillary Oxygen support system will help to improve % Metallization,
which in turn improves yield-charge to liquid steel. DRI should be charged continuously (better
coordination for better feed-rate) if it forms more than 35% proportion of charge-material in EAF,
remaining being hot metal (around 45%) and rest the scrap. (3%) The FC% in Coal has to be
maintained at a standard of 45%.
6.4 DRI Plant process related calculations for March 11

Rather than being stabilized, per ton Coal

consumption is following a linear increasing
trend, which is one major factor for accelerating
the Total Cost of Sponge Iron production as the
month end approaches.
Figure 9: DRI Coal Consumption analysis
Figure 10: KWH Consumption per ton of DRI production
Strong negative correlation between Production of Lumps & KWH Consumption per ton . More
is the production of Lumps; less will be the consumption of KWH. For every 1% increase in the
production of lumps, there will be 41% reduction in the consumption of KWH
Fluctuations as depicted by below picture needs to be reduced so that the process variations can
be studied in a batter way for finding ways to reduce the cost.
Figure 11: Raw-Material price movement of DRI

6.5
Observations from the study of FAD Plant:
Ferro Alloys
Division Plant
Ferro Alloys
Ladle Refining
Furnace
The objective is to determine which kind of inputs to be produced for producing the alloys so that the
overall cost of production is minimized.
The problem has been formulated in MS-Excel spreadsheet and is solved using the Solver Add-in of
MS-Excel, the steps of execution are mentioned below:
Figure 12: Formulation Model of FAD plant input mix
The constraints were related to that of Mn/Fe ratio and Total Mn quantity produced.
3.5 <= Mn% / Fe% <= 3.55 and 750 <= Mn Quantity (in Kg.) <= 755

Figure 13: Constraints, objective function for optimizing FAD production cost
The final results obtained for the combination of input quantities for minimizing the production cost
is as follows:
As it can be clearly inferred from the above results that the solver is suggesting not to use the
materials M2 & M4 as inputs while use the mentioned quantities of M1 & M4 to reach goal.
VII Phase-3: Customer Classification

61 companies earn nearly 70% to the total revenue of AML. These 61 companies contribute more than
0.4% individually to the AMLs revenue. These 61 companies are categorized as A priority customers.
Similarly 208 companies contributed to 25% of companys income who contributed between 0.05%0.40percent individually. These are categorized as B priority customers. The rest 408 companies are
categorized as C
priority customers.
7.1 List of Top

with
total revenue is
1%
Name of the Company

NEEPAZ V-FORGE(I)LTD
JAGDAMBA STEELS (P) LTD.
RAMKRISHNA FORGINGS LTD.
KEC INTERNATIONAL
AHMEDNAGAR FORGING LTD.
JAY AMBEY ENTERPRISES
AARYAN TRADERS
TATA MOTORS LTD
ICOMM TELE LTD
ASHA TRADERS
ADHUNIK POWER & NATURAL
RESOURCES
AAKASH ENTERPRISES.
HAPPY FORGINGS LTD
PANCHAKANYA STEEL (P) LTD
ORISON TRADERS
MILESTONE GEARS PVT LTD
M M FORGINGS LIMITED
ADHUNIK ALLOYS & POWER LIMITED
AMTEK AUTO LTD
RIJ ENGINEERING PVT LTD
%
contribution
5.28
4.55
3.78
3.58
3.44
2.68
2.37
2.19
1.88
1.63
1.58
1.55
1.45
1.42
1.35
1.30
1.28
1.13
1.10
1.06
20 Customers
contribution to
greater than

These 20 companies have to be retained at any costs and constant feedback has to be taken from them to
keep a check on their satisfaction levels. If these companies increase their buying activity from AML by
1% it would result in 0.45% increase in total revenue.
We further analyzed the sales data from April 2010 to March 2011 product wise to identify the key
customers for various steels. Billets, Rolled Products, Pig Iron and Semi Finished Ferro Alloys make
large portion of the steels produced in AML (nearly 90% of the total output of the plant).
7.2 Billets:
The total number of companies that brought billets from AML from April 2010 to March 2011 is 174. Out
of these 174 companies Top 20 companies contributed nearly 70% of total revenue from billets. These are
categorized into A priority customers. Also these 20 customers contributed more than 1% individually to
the total revenue from billets.
Of the rest 41 companies contributed 0.25% to 1.00% individually to the total revenue from billets and
these are categorized as B priority customers. The remaining 112 are categorized as C priority
customers.
7.2.1 List of Top 20 Billet Customers:
Name of the Company

JAGDAMBA STEELS (P) LTD.
KEC INTERNATIONAL
ICOMM TELE LTD
PANCHAKANYA STEEL (P) LTD
AARYAN TRADERS
BELLOTA AGRISOLUTIONS AND TOOLS PVT
ORANGE CITY STEEL INDUSTRIES PVT.LT
AMISHA STEEL PVT. LTD
%
contributio
n
13.8
10.86
6.66
5.71
4.30
3.06
2.42
2.21
2.20

SAWARIA PIPES PRIVATE LIMITED
SHILPA RE-ROLLERS PVT. LTD.
SUNDER ROLLING MILLS PVT LTD
DIVYANSH STEEL PVT LTD
VENUS ROLLING MILLS PVT. LTD
HIMAL IRON AND STEEL PVT. LTD.
RAJDHANI FERRO (P) LTD
AMITASHA ENTERPRISES PVT LTD
H.L.CHOPRA STEEL ROLLING MILLS
NARAYANI ROLLING MILLS PVT.LTD.
CHOPRA STEEL STRIPS
SATPAL STRIPS PVT. LTD.
2.09
1.95
1.90
1.59
1.59
1.57
1.40
1.29
1.28
1.24
1.21
1.06
If the sales of any one of the company is increased by 1% then it will result in 0.7% increase in the
revenue of the company. These companies are of vital importance and their retention is must. Constant
feedback should be taken from these companies to understand their needs and expectations.
7.2.2 A Category Billet Customers:

These are the category A customers who pay more than Rs 30000/- per ton for billets. These customers
should be targeted for increasing the revenue of the company.
Name of the Company
%
Contributio
n
BELLOTA
AGRISOLUTIONS
AND
TOOLS PVT
DIVYANSH STEEL PVT LTD
KEC INTERNATIONAL
VENUS ROLLING MILLS PVT. LTD
SAWARIA PIPES PRIVATE LIMITED
ICOMM TELE LTD
2.42
1.59
10.86
1.59
2.09
5.71
7.3 Rolled Products:

These are the most important product category of AML as this category contributes highest to the total
revenue. There a total of 310 customers and conversion agents for the rolled products of AML. There are
a total of 30 customers who contribute nearly 70% to the total income from rolled products and these 30
customers contribute more than 0.75% to the revenue from rolled products individually. These 30
customers are classified as A priority customers.
The next 56 customers contribute to 20% of income from rolled products and these are categorized as B
priority customers. There are about 230 customers that are categorized into C category who contribute
10% to the income from rolled products.
7.3.1 List of Top customers for rolled products from April 2010 to March
2011.

Name of the company
7.3.2 A
Rolled Product
The price of the
varies from Rs
23000/- depending
quality.
Given
the customers of
who buy high
products.
NEEPAZ V-FORGE(I)LTD
AHMEDNAGAR FORGING LTD.
RAMKRISHNA FORGINGS LTD.
TATA MOTORS LTD
ADHUNIK POWER & NATURAL
RESOURCES
HAPPY FORGINGS LTD
AMTEK AUTO LTD
RIJ ENGINEERING PVT LTD
SMI-AMTEK CRANKSHAFT PVT.
LTD.
HIM
TEKNO
LTD.
Name
of FORGE
the company
MILESTONE
GEARS
JMT AUTO LTD PVT LTD
NEW ALLENBEERY WORKS
VISHAL ENGINEERING
ENGINEERS LIMITED
TALBROS
ANANT
STEEL CORPORATION
HINDUSTAN
MOTORS LTD.
BHARAT
FORGE
SOUTHERN LTD.STEELS
&
JMT AUTO LTD
FORGINGS
TRINITY INDIA LTD
AADINATH ASSOCIATES
SADHU FORGING LTD
TEKNO FORGE
LTD.
MHIM
M FORGINGS
LIMITED
%
contribution
11.36
7.40
5.01
4.71
3.37
3.11
2.37
2.27
contributio
2.03
1.87
n
1.80
1.29
1.69
0.82
1.64
1.38
0.93
1.36
0.89
1.29
1.28
1.00
1.26
1.87
1.18
Category
Customers:
rolled
products
66000/to
Rs
on
the
grade
below is the list of
category A and
quality
rolled
If the contribution of the category A customers increases by 1% then the total revenue from that product
type increases by 0.7%.
7.4 Pig Iron:

This is the crude form of Iron and the prices are decided according to market trend i.e. the cost of Iron
across the country. The Pig Iron quantity sold is 9% of the total quantity of steels sold by AML and it
generates 5.5% of the revenue to the company.
Total of 67 companies buy Pig Iron from AML and there are 10 major customers who contribute to 60%
of the revenue from Pig Iron collectively. These 10 customers contribute to more than 2% to the revenue
from Pig Iron individually.
7.4.1 List of the Top customers of Pig Iron from April 2010 to March 2011.

7.4.2 Semi
Ferro
Name of the company
% contribution
SHREE METALIKS LIMITED.
10.02
SCAN STEELS LTD.
9.33
PAWANJAY SPONGEIRON LTD
8.42
EPIC ALLOY STEEL PVT. LTD.
7.83
NEETESH UDYOG.
4.79
ROURKELA STEEL CORPORATION
3.95
MAA ALLOYS PRIVATE LTD
3.44
SHREE SHIV SAI STEEL INDUSTRIES
3.13
OCL IRON AND STEEL LIMITED
2.75
MAHESWARI ISPAT LIMITED
2.52
Finished
Alloys:
These are special

steel alloys and
2.30
the prices of SHREE GANPATI CASTINGS
these steels vary
from Rs 81500/- to Rs 35000/- per ton. The price depends on the quality of the alloy steel ordered. The
semi finished Ferro alloys contributes 7% to the total revenue of the company. Where as its production is
less than 4% of the capacity of the plant. So this alloy steels give high return to the company. There are a
total of 95 companies that buy Ferro alloys from AML. Out of these 95 companies, 20 companies
contribute to about 70% collectively to the total revenue from Ferro alloys and these companies also
contribute more than 1.5% to the total revenue from Ferro alloys individually and these are categorized
as A category customers.
7.5 List of Top customers of Ferro alloys from April 2010 to March 2011.
Name of the Company
ADHUNIK ALLOYS & POWER LIMITED
JAGDAMBA IRON & STEEL PVT. LTD
PRIME ALLOYS
JINDAL STEEL & POWER LTD
KAY BEE INDUSTRIAL ALLOYS P LTD
MITTAL CORP LTD
ESSAR STEEL LTD
SMC POWER GENERATION LTD
SIDDHARTH MERCANTILE PVT. LTD.
BHUSHAN POWER & STEEL LIMITED
MUKUND LTD. A/C KALAYANI STEELS LTD
RAGHAV STEEL
SCAN STEELS LTD.
REMI METALS GUJARAT LIMITED
FLUXMIN METAL P. LTD.
FERMET ROHSTOFFHANDEL GMBH
% contribution
8.34
8.32
7.24
7.23
5.70
4.91
2.94
2.77
2.51
2.12
2.09
1.95
1.94
1.91
1.83
1.72
1.69

SATVIK ENTERPRISE LTD
1.61
7.6 A Category High Quality Alloy Steel Customers

Given below is the list of companies which but high quality alloy steels (they pay more than
Rs
60000/- per ton and are A category customers). An increase of sales of 1% to these companies will result
in an increase of 0.7% in total revenue from Ferro alloys.
Name of the Company
KAY BEE INDUSTRIAL ALLOYS (P) LTD
MITTAL CORP LTD
MUKUND LTD. A/C KALAYANI STEELS
LTD
RAGHAV STEEL
REMI METALS GUJARAT LIMITED
%
contribution
5.70
2.94
1.95
1.94
1.83
The companies from the above list should be targeted so as to increase the revenue of the company. As
these are customers of high value, constant feedback should be taken to know their expectations and
perceptions of the company.
VIII Conclusion & Recommendations:

With the competition ever increasing in the Medium-scale steel production segment thus leading to scarce
availability of high grade coal, coke which is necessary for better plant productivity, Adhunik wants to
stay ahead in the race by positioning itself as the lowest cost steel manufacturer for maintaining
sustainable margins over a period of time.
Most important factor to be controlled for achieving its strategic goal is to minimize the operational cost
vis--vis improving operational efficiency, which is considered to be an internal process enhancement.
Another vital factor considered during the project study was to retain those customers who are adding a
premium value by either ordering superior grades of steel in considerable quantity, or by paying a higher
price than others to secondary grade steel products. Next task will be to spot and target such similar kind
of customers as management views across the value chain of its production process.

While the recommendations related to individual plant and various quantity-contribution segments are
already mentioned in the preceding pages of the document at the respective locations, a consolidated list
follows next for having a quick glance at all of them.
Coke Oven: Selective Crushing can be done to have a better control of Coal size, homogeneity,
M10 index improves from 1.5 to 2 over a base of 12. (based on pneumatic classifier) Water
quenching reduces Coke quality (0.36-0.42 GCal. Of heat is lost per ton of Coke, pollution),
Opposite to above and effective one is dry cooling in an inert atmosphere.
DRI Plant: Strong negative correlation between Production of Lumps & KWH Consumption per
ton. More is the production of Lumps; less will be the consumption of KWH. For every 1%
increase in the production of lumps, there will be 41% reduction in the consumption of KWH
MBF Plant: As the Slag Volume increases, the HB temperature in MBF reduces, which in turn
reduces the productivity of blast furnace.
Sinter Plant: It can be inferred from the above equation that for a particular range of FC% in the
coke fines used in Sinter production, the amount of Coke Input will vary in proportion with the
Al2O3%.
It can be inferred that the increase of Al2O3% in the composition of Sinter will lead to an
increase in the Slag Volume coming out of MBF.
FAD Plant: Do not use the materials M2 & M4 as inputs while use the mentioned quantities of
M1 & M4 to reach the goal of minimizing input-mix cost of FAD plant, subject to the constraints
of
3.5 <= Mn% / Fe% <= 3.55
and 750 <= Mn Quantity (in Kg.) <= 755
Top 20 companies whose individual contribution towards companys revenue is more than 1%
have to be retained at any costs and constant feedback has to be taken from them to keep a check
on their satisfaction levels. If these companies increase their buying activity from AML by 1% it
would result in 0.45% increase in total revenue.
Category A Billet customers pay more than Rs 30000/- per ton for billets. These customers
should be targeted for increasing the revenue of the company.
If the contribution of the category A Rolled product customers increases by 1% then the total
revenue from that product type increases by 0.7%.
An increase in sales by 1% to A Category alloy steel companies will result in an increase of

0.7% in total revenue from Ferro alloys.

IX References:
Research Paper
Indian Steel Industry sees faster recovery from Global slowdown, Union Budget Analysis &
Outlook 2010-11, CRISIL Research, pp. 83-85.
Indian Steel Industry Outlook to 2012, Market Research report, RNCOS Industry Research
Solutions.
Government Publication
Ministry of Steel, Government of India, Annual report 2010-11, pp. 165-168.
Article in Business Portal
Sector Wise GDP of India, business.mapsofindia.com, Share of sector wise contribution to GDP
in India 2010.
Books
Thomas P. Edmonds, Bor-Yi Tsay and Philip R. Olds (2008), Fundamental Managerial
Accounting Concepts, 4th Edition, Tata McGraw-Hill Publications
Journal Paper
World Steel Review-June 2011, World Steel Production Report, ISSB Monthly World Steel
Production Review.
International Journal of Operations & Production Management, Vol. 17 No. 6, 1997, pp. 592-610.
MCB University Press, 0144-3577

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Production Cost Management and MIS Formulation A

Case Study at Integrated Steel Plant

A Summer Project Proposal for

Post-Graduate Diploma in Management

Srikanth Kumar Konduri

Under the guidance of

Dr. Gunjan Malhotra

Adhunik Metaliks Limited 2

Production Cost Management and MIS Formulation A

Srikanth Kumar Konduri

Adhunik Metaliks Limited 3

Production Cost Management and MIS Formulation A

Srikanth Kumar Konduri

Dr. Gunjan Malhotra

Adhunik Metaliks Limited 4

Dr. Gunjan Malhotra

2. PG Summer Project Co-coordinator

Mr. Sandeep Banka

Adhunik Metaliks Limited 5

Certificate from Summer Project Guides

Dr. Gunjan Malhotra

Mr. Sandeep Banka

Adhunik Metaliks Limited 6

Adhunik Metaliks Limited 7

Adhunik Metaliks Limited 8

Phase-1: Product Costing System.......................................................................................17

Adhunik Metaliks Limited 9

Phase-2: Perceived Yield improvement suggestions of critical plants...............................21

Phase-3: Customer Classification....................................................................................28

Conclusion & Recommendations..33

Adhunik Metaliks Limited 10

Figure 1: Sector-wise steel consumption......................................................................................11

Per Unit Costing statement of 40CR4B Rolled product.................................................20

Adhunik Metaliks Limited 11

Figure 1: Sector-wise steel consumption

producer in FY2010 and recorded a growth of

Adhunik Metaliks Limited 12

2.1 Companys Vision Statement

2.2 Companys Goals

1. To be one of India's fastest growing conglomerates

2. To be among the top 5 in India across all our businesses

3. To continuously identify and seize global opportunities for growth

4. To be one of the best places to work for

5. To contribute to society by delivering superior value to all our stakeholders

Adhunik Metaliks Limited 13

2.4 Steel Making Overview

Figure 3: Integrated flow-chart of Steel Making with rated capacities

Adhunik Metaliks Limited 14

(Note: Dimensions mentioned are in mm-millimeters)

Adhunik Metaliks Limited 15

Figure 4: Material-wise sales volume distribution

Figure 5: Material-wise revenue distribution

Adhunik Metaliks Limited 16

2.6 Production planning framework:

III Case Study

To classify the steel products and customers into Quantity-Contribution matrices.

Adhunik Metaliks Limited 17

Studying Coke-Oven plant and suggesting possible technological up gradations.

Optimizing the Product-mix of FAD plant for minimizing production cost.

4.1 Case Modeling

V Phase-1: Product Costing System

Adhunik Metaliks Limited 18

5.1 Per Unit Cost calculations of Rolled product:

Adhunik Metaliks Limited 19

5.2 Per Unit Cost calculations of product from SMS plant:

Adhunik Metaliks Limited 20

5.3 Per Unit Costing statement of 40CR4B grade rolled Billet