Baoshan Iron & Steel Co., Ltd. : Baosteel Co.,Ltd. 's Process Cost Benchmark Takes effect

Last year, Baosteel Co.,Ltd. continues to promote carbon steel process cost benchmarking and benchmarked process cost reduction and has got remarkable results. The realization of benefits throughout the year reaches 1.102 billion yuan, which is 136 % of the annual target.Among them, 62 benchmarking indicators reach the best level in history, with a rate of 34%.

Last year, Baosteel Co.,Ltd. closely follows the production and operational characteristics of each unit, focuses on key indicators in production, technology, equipment and management capabilities, systematically plans 23 transverse benchmarking projects and 65 longitudinal improvement projects, effectively promotes the benchmarking work in tier and with collaboration. Each process carries out benchmarking unit on-site exchange on a regular basis. The technical backbones of directly linked factories are sent to Meishan Steel, Stainless Steel Business Unit for exchanges on equipment, process and technology and they provide support. After a year's hard work, the processes have all made significant progress.

With blast furnace equipment status stability as the premise, ironmaking focuses on fuel ratio reduction and carries out cost benchmarking work. Last year, Baosteel Co.,Ltd. ironmaking mill's No.1 and No2 blast furnaces' fuel ratio hits the historically lowest level. Failure time of the blast furnace equipment reduces and the integrated off-air ratio decreases by 0.2% compared with 2010. Stainless Steel Division No.1 sintering vapor recovery achieves the best level in history and there is steady improvement of the PCI index. Meishan Steel hot metal yield increases 77000 tons compared with same period last year and blast furnace off-air ratio and pulverized coal drop yield hit the best record in history. Last year, the ironmaking benchmarking improvement project cost contributes 203 million yuan.

Steel-making process focuses on lowering steel material consumption and carries out benchmarking work, developes a more detailed plan of action and analyzes and summarizes on a monthly basis in a timely manner. No. 1 and No. 2 steel-making iron material consumption has fallen to historically lowest and is better than the annual target. Stainless steel division furnace iron loss indicators reduces greatly and iron and steel material/ hot metal ratio has declined compared with indicators in the same period last year.Meishan Steel material and lime light burning consumption have hit the best level in history. Last year, steel-making process benchmarking cost improvement project contributes to 268 million yuan.

With quality improvement, production smoothness, equipment stability, energy control as the goal, the hot rolling process establishes cost benchmarking improvement project system and team. Directly linked factory's 3 hot-rolling lines' finished product rate and the burnup indicators are better than the annual objectives and performance in 2010. Meishan Steel hot rolling equipment is of stable state and the downtime, tons of steel maintenance cost and fuel consumption indicators are decreased. The stainless steel division rolling lines finished product rate, waste rate, power consumption and roll wear indicators are better than the annual targets and performance in 2010.Last year, hot-rolling process cost improvement project contributes to 223 million yuan.

The cold rolling process establishes matrix professional research team with laterally four benchmarking units and vertically production line specialization, claifies division of various professional groups' responsibilities, shortens project deadlines and improves project measures. Directly linked factory 5-stand tandem cold rolling pickling unit finished product rate, 1550 annealing , 5-stand tandem annealing, 2030 new annealing units product judgement changing rate and the outer plate finished product rate hit historically best level.Meishan Steel pickling rolling mill finished product rate, continuous annealing product judgement changing rate indicators all pass the standard and reach the lowest level since puting into production. Stainless steel pickling finished product rate, continuous annealing product judgement changing rate hit historically best level. Continuous annealing process consumption indicators are significantly better compared to 2010.Last year, the cold-rolling process cost benchmarking improvement project contributes to 408 million yuan.