SPECIFIC SUPPLY CHAIN ISSUES -

CEMENT

TEAM SUPPLY CHAIN - SCIL

 FUEL ECONOMY
Total Fuel Additional
Truck Type No Of Trips Total KM Total Fuel Delivery Cost/(Bag- Cost
GLOBALLY
(Bags) KM) multiple RECOGNIZED UNIIT
20 12 2082 1149 4744 0.086 2.01
OF DISTRIBUTION
COST:
26 833 170986 80255 409054 0.056 1.31
COST/(TON-KM)
28 810 168091 79045 406797 0.052 1.22
30 188 41087 17210 94009 0.044
200 2876 255421 64238 592156 0.079 1.83 Old 1612
250 701 111142 44689 139595 0.101 2.34 trucks need
300 1785 296418 117012 531509 0.082 1.91 urgent
replacement
400 7923 974459 293090 3057115 0.047 1.09
600 103 20214 9728 60800 0.050 1.17
700 552 109835 52899 326700 0.043
 FUEL ECONOMY
Other observations:

- Cross docking can be explored at Gazipur, Mymensing for ensuring

maximum delivery in larger vehicles & last mile delivery in smaller vehicles
 LOCAL PROCUREMENT-WAYFORWARD
SL Proposed Activity
1 Weekly Status Review Meeting ( Face to
Face )
2 Master Procurement List
3 Max-Min quantity
4 Lead time of items
5 Quantity budget
6 Quality Check report & Rejection Report by
one week of receipt
7 “No PO No Work” & Old PO deletion
8 Emergency Purchase up to BDT 25,000
Responsibility
Factory user (mech. & elec.) & Buying team
Factory departmental head (mech. & elec.)
Factory departmental head (mech. & elec.)
Buying team
Factory departmental head (mech. & elec.)
Factory team
Factory team
Agreed between OD & Factory accounts head
 LOCAL PROCUREMENT-WAYFORWARD
Other Steps to be considered:
• Identification of fastest moving 500 items & maximum possible elimination of
single source

• Introduce re-order point for automatic order generation against the locally
available portion of first 500 items.

• Introduce KPI for timely materials receipt:

No of consignments against PO Reached by +3 days from PR need date

=
Total number of consignments received against PO during the month
 GHAT LOADING AUTOMATION

- The team has been working on it

- Cost effective system by Lafarge ( BDT 20 lacs~ 30 lacs from India ) at Kapasia
- Rolled out by current factory maintenance manager
 RENTAL EXCAVATOR
Excavator Running Hrs
Month RH ( hrs) Rental Cost

January 284.5 248,938

- Shifting one excavator from
February 236 206,500
Long Steel to Cement factory
March 282.5 247,188 can be explored
April 311 272,125

May 231 202,125

June 326 285,250

July 294 257,250

August -
September -
October -
November -
December -
Total 1965 1,719,375
 NON PERFORMING ASSET
SHAH CEMENT INDUSTRIES LIMITED
 Non-Performing Assets List
Equipment Name Inception/Purchase Year Current Situation Operating Unit

Y-Crane 2005 Operative, need relocation Cement

Rope Crane 2003 Decommissioned on 2018 Cement

Dump Trucks 2/3/4 2003 Obsolete Cement

Mill-2 & 3 2006 Running 8 hours/Month Cement

Ghat bag unloader 2018 Yet to install Cement

Stationary Packer 2018 Yet to install Cement

Gas Booster 1.5 bar 2011 Dismantle Power Plant

Mother Daughter and 6 trucks 2010 Running 4 hours/Month Power Plant

AD convertex # 02 2002 Obsolete Bag Plant

AD convertex # 01 & 03
2002 Running 10% of capacity due to low demand Bag Plant
Printing
 Y Crane
Description:
Y Crane is pneumatic crane for bulk fly ash unloading. This
was used for almost 13 years from 2003. The crane is not
being used for 3 years & is not cost effective to operate.
Another high capacity crane (Z crane) is in operation for fly
ash unloading.

Scope of Use:
There are some instances of packing bags from Silo adjacent
to ghat area in Bangladesh. If the company can set similar
silos in any of the key ghats, the crane can be used to
transfer bulk cement to be packed later using the stationary
packer
 Rope Crane
Description:
Rope Crane is Wire based Grapple crane for clinker & others
hard materials unloading. The crane was in use for almost 16
years from 2003 & was grounded 2 years back. In current
context, the crane is not cost effective because of low rate &
unloading complexity. Presently, three high capacity cranes E-
Cranes are operational at factory for hard materials
unloading.

Scope of Use:
Some companies use rope cranes for loading cement bags
from barge to truck at the ghat area. If the rope crane can be
shifted to a ghat, similar operation can be replicated by us for
more cost effective & faster operation.
 Dump Truck: 3 Nos
Description:
Three Hino dump trucks were in use from 2003 up to 2018 to
carry raw materials from yard to hopper. Since 2 years back,
these trucks have remained unutilized because of below
problems.
• Engines are weak because of aging & malfunctioning of fuel
pump.
• Hand gear box is weak & not working properly.
• Engine fuel consumption & maintenance cost are very high
compared to new Dump trucks.
• Spares also not available in the local market.
Scope of Use:
There is no scope to utilize these dump truck in any way &
trying to fix the problems will not be cost-effective. It is
recommended to sell out the trucks through auction.
 Ball Mill:02 & 03
Description:
Ball Mill-02 & 03 are two low capacity but power savvy mills with capacities
of 55 & 65 tons/hour respectively whereas Ball Mill-01 & 04 capacities are
290 & 310 tons/hour respectively. Before installation of VRM, these two
mills had been utilized to produce some special products on demand.
Presently, these two mills are lying unutilized because of low efficiency &
higher cost in addition to having adequate capacity in other machines.

Scope of Use:
There is no scope to utilize these two mills in our Mukterpur factory area.
 Ghat Bag Unloader
Description:
Now we are loading bag from Barge to truck by
labour manually. These manual system is very much
time consuming & also not cost effective. Due to high
delivery demand in Ghat, Supply Chain decided to
load truck automatically from barge in Kaliganj,
Gazipur to meet the higher market demand. One Bag
unloader was imported in 2018.However, this
unloader yet to be deployed at Ghat.

Scope of Use:
Automatic bag unloader is an effective machine for
unloading bag from Barge & loading the truck
directly within short time. But the machine is yet to
be commissioned because of legal issues at Ghat
premises.
 Stationary Packer
Description:
Our existing packers are rotary system high capacity
packer. Before installation of new VRM packer, manual
fixed type stationary packer was imported in urgent basis
because of high market demand. The manual packer is
lying idle as existing packers have enough capacity to
meet the demand

Scope of Use:
As mentioned in earlier slide, if a silo can be put up at
critical Ghat, the stationary packer can be readily used to
pack the cement.
 Gas Booster 1.5 Bar
Description:
1.5 Bar gas booster was purchased to feed
3000m3 gas for CAT engine. But because of lack
of approval, TITAS Gas sealed the gas booster
on 2011. At present, 0.5 Bar booster is being
used with some modification to feed 3000m3
Gas to the engine.

Scope of Use:
No scope to reuse the booster.
 Mother Daughter with 6 Trucks
Description:
Mother Daughter with 6 trucks was used during power crisis of 2010 as
restriction on power was imposed from 5pm to 11pm. During that time,
power plant target was 10MW. After the regularization of power, these
mother daughter was not in regular use since the generation cost is
almost double compared to captive generation cost.
Scope of Use:
There is very limited scope to use the mother daughter in Shah Cement
Complex. Feasibility can be assessed to use the mother daughter at
Rangpur GLT to run Generator & Boiler as natural gas is not available over
there.
 AD Convertex:02
Description:
AD Convertex machine had been used to
produce AD pasting bag since 2002.However,
Pasting bag demand started declining gradually
from 2015.In the course of time, AD
Convertex:02 has become obsolete because of
no demand & lack of maintenance.

Scope of Use:
The machine can be kept in running condition
parallel to others. Otherwise it will be totally
out of order in near future.
Thank You