Digital Transformation in Metals & Mining Industry
Published on : Friday 09-07-2021
Suresh Babu Chigurupalli offers a perspective on the digital transformation initiatives undertaken at Balasore Alloys Limited.
Organisations are adopting a paradigm shift in their business processes to become agile. The Covid-19 pandemic is a blessing in disguise for the Digital Revolution and is transforming industries like never before. It is quite evident that in the contemporary world, digital transformation is not a choice but a prime business strategy of an organisation. Digital Transformation provides more insights from the data which will help organisations to perform better and make a business grow. The clever implementation of digital technologies, like Industrial Internet of Things (IIoT), Artificial Intelligence (AI), and Cloud Technologies will make organisations more efficient, productive, safe, sustainable and profitable. Digital Transformation is helping industries bring transparency, accuracy and speed into the business processes.
Traditionally, metal and mining industries are laggards in implementing new technologies due to different challenges which include inherent complexity of processes, variation in skill levels, aging workforce, and managerial conservatism. But Balasore Alloys Limited (BAL), a metal and mining industry, has leveraged the benefits by adopting digitalisation in selective areas to overcome the redundant technologies. An assessment study has been made with an objective to identify the gaps and bridge them by implementing digital transformation at BAL. A priority matrix has been made by conducting stakeholder discussions from different departments. Based on the priority matrix, certain selected projects had been initiated in 2017. Some of the projects were completed by 2020 and few are in the pipeline in the areas of Electrode Management, Energy Management, Digitalisation of KPIs, AI enabled Automatic Number Plate Recognition (ANPR) and Robotic Process Automation (RPA) in Administrative Business Processes.
Electrode management
Let me first explain the implementation of the digital transformation project of Electrode Management. Electrode management plays a vital role in the Ferro Alloys industries. The main goal of submerged arc furnace (SAF) operation is to get good stable operating conditions with a high recovery of the produced metal and optimum energy consumption. There are many different aspects to furnace operation. Electrode penetration is of paramount importance. Furnace resistance in a SAF is controlled by shifting the electrode up and down to maintain the required arc by keeping optimum resistance. Manual operation of the electrode management has been replaced by automating the electrode management process. Electrode-to-bath resistance is to control the penetration of the individual electrode automated by algorithms. Using the accurate calculation of the furnace load, the controller can predict alternate operating points to the present in real-time. This predictive power control strategy ensures that the furnace is operated at its electrical optimum under all operating conditions, within the limitations of the furnace circuitry, and eliminates unnecessary tap changes.
Automation of electrode management resulted in enormous benefits. Elimination of unnecessary electrode movement is caused by the electrical interaction between electrode currents. More even power distribution between electrodes when a particular electrode has reached its upper or lower travel limit. The benefits of this project are:
(i) Consistent Electrode Penetration and Resistance
(ii) Improved Power Input (MWh)
(iii) Lower Specific Energy Consumption (MWh/tonne)
(iv) Improved Load Factor and Improved Recovery, and
(v) Reduced Electrode Consumption.
Energy management
Energy management software tools are used to monitor, control and optimise the performance of Transmission/Distribution systems in BAL. This intelligent energy management software control system is designed to reduce energy consumption, improve the utilisation of the system, increase reliability, and predict electrical system performance as well as optimise energy usage to reduce cost. Energy Management System applications use real-time data such as frequency, actual consumption, tie-line load flows, and plant units’ controller status to provide system changes. The advantages thus gained are:
(i) Real-Time Data Acquisition
(ii) Removed Manual Error
(iii) Analyse the Electrical Load Profile
(iv) Measurement of Distribution Losses
(v) Continuous Power Factor & Maximum Demand monitoring helps to avoid huge penalty imposed by Electricity Board
(vi) Peak Loads & Non Peak Loads
(vii) Helps in monitoring & determining wastage in energy consumption
(viii) Auto Report/Alarms and SLD, and
(ix) Easily identify the energy wastage pockets.
Automating KPIs
BAL has developed a digital strategy to automate KPIs in order to streamline the complex reports. Excel based plans, intermediate data files and non-intuitive visualisation reports were identified for the digitalisation. This digitalisation aims at eliminating the daily extraction of data from ERP (SAP) and non ERP sources. Multiple isolated SAP codes used to extract data required for KPI calculation has been minimised. The benefits from the short term intervention include:
(i) Aid the MIS team in reducing time taken and repeated manual efforts in preparing the Department Reports based on data provided by different departments
(ii) Reduce the volume and complexity of the report preparation process by streamlining the data flow and circumventing complex and semi-structured chain of excel sheets, and
(iii) Standardise KPI and calculation assisted by formal documentation and standardised data transformations for understandability and usability.
The digital drive of AI enabled Automatic Number Plate Recognition (ANPR) is to prevent the pilferage of materials. ANPR is a technology that uses optical character recognition to read vehicle registration plates. The objective is to strengthen the surveillance and also faster the logistic movement. The evolution of technology has enabled security solutions to develop, so there are now multiple solutions available that all provide numerous benefits to the user. Automatic Number Plate Recognition (ANPR) technology is now the first choice for many businesses looking for suitable perimeter protection.
Robotic process automation
Robotic Process Automation (RPA) is one more digital strategy identified for automating and standardising repeatable business processes. This was focussed mainly in the administrative business processes including supply chain management. The fundamental idea is to improve the productivity of the people and reduce the human intervention and carry out the costs faster. This will help the employees to free up the time to invest their energies by engaging in strategic work. RPA will help to bring consistency and high accuracy for doing the same tasks day after day and month after month. The application of RPA will help industries in supply chain management for sourcing, operations and planning. RPAs capability to generate real time analytics and reporting provides enormous edge to reduce the cycle time and speedup the processes. RPAs are also helping in human capital management in performance and development, payroll administration compliance and reporting and talent management. It has potential to reduce cumbersome activities like creation of job requirement, sourcing, screening, performance appraisals, annual training management, employee personal data upkeep, employee safety and health data.
Conclusion
The Metals and Mining Industry has the greatest potential to create value in their entire business operations from sourcing to customers. Some themes like RPA, robotics, digitally enabled workforce, advanced analytics and simulation modelling, AI, and drone technologies will rule the drive of digital transformation. Aging workers have the experience and young workers know digital. When both collaborate and function harmoniously, it will be easy for the organisation to drive the digital transformation.
Sureshbabu Chigurupalli is on the Board of Directors/Operations & Maintenance/Keynote Speaker/Lean Practitioner/Production Management/TPM Practitioner with 26+ years of experience. He is Director (Operations) at Balasore Alloys Limited, Balasore, Odisha. He did his B.Tech.in Instrumentation from Andhra University (1994). He is an enterprising leader & planner with a strong record of contributions in streamlining operations, invigorating businesses, heightening productivity, systems & procedures.
Sureshbabu has achievement-driven professional experience in spearheading entire unit/ plant operations to maintain continuity and match organisational goals through supervising Operations, Quality Control, Production Goals, Automation, Maintenance, Process Improvements, Safety Guidelines, Manpower Development, New Policy/Procedure Guidelines, Resource Allocation and Cost Optimisations. He is leading and managing all plant operations with effective utilisation of all resources and implementing industry best practices such as TPM, Six Sigma, Lean Management & others Business Excellence initiatives that contribute to improve productivity and efficiency. He has exhibited leadership in closely collaborating with numerous Japanese Consultants for implementing TPM to enhance overall plant effectiveness.
