SUNConferences, 29th Annual Conference of SAIIE

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ENERGY COST REDUCTION IN SECONDARY STEEL MAKING THROUGH IMPROVED PRODUCTION PLANNING
Wiehan Adriaan Pelser, Wynand Breytenbach, Johan Marais

Last modified: 2018-10-09

Abstract


The international steel manufacturing industry is under financial pressure due to a surplus in production flooding the market. In a South African context, steel producers deal with additional challenges such as the increasing cost of raw materials, electricity tariffs, wages, and transportation. Steel manufacturing facilities consume approximately 18% of industrial energy worldwide. Further research indicates that between 20% and 40% of steel production costs originate from energy expenses.
In this paper, production scheduling is used in a novel way to reduce energy cost. The developed solution uses various energy awareness implementation techniques and supporting systems to assist production planners with scheduling tasks. Opportunities for energy cost reduction by improving production planning methods are evaluated, and suggestions are made for production planners to adapt schedules to reduce energy costs.
The solution is applied at a secondary steel making facility, and is used to manage electricity costs by utilising time-of-use tariffs. Electrical energy intensity of different steel qualities are evaluated, and production is scheduled accordingly. The practical implementation indicates an annual cost reduction of R 1.5-million. This solution makes provision for the addition and integration of other potential production scheduling solutions.


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