APPLICATION FOR 10th CYCLE OF QCI D.L. SHAH QUALITY AWARDS J.K. Fenner (India) Limited 3, Madurai-Melakkal Road Kochadai, Madurai – 625016 Tamil Nadu, India

J.K.Fenner (India) Limited Madurai

Contact details Contact details of Chief Executive Mr. PGS Dinesh Davidson PLANT HEAD. 3 Madurai Melakkal Road Kochadai, Madurai 625016 Phone 0452-4283838 Mobile : 9789989974 Email : pgsdinesh@jkfenner.com Contact details of Project Leader Mr. G Rajasekar Head (Engineering) 3 Madurai Melakkal Road Kochadai, Madurai 625016 Phone 0452-4283854 Mobile : 9789989953 Email : rajasekar@jkfenner.com

“CASE STUDY TO REDUCE STEAM COST” J.K.Fenner (India) Limited By J.K.Fenner (India) Limited Madurai

TEAM DETAILS Mr. PGS Dinesh Team Facilitator Mr. G Rajasekar Engineering Dept. Leader Mr. V Murugan Materials Dept. Member Mr. G Karthik Rajkumar Engineering Dept. Member Mr. J Sivakumar HR Dept. Member

Methodology 1 12 2 11 3 10 4 9 5 8 7 6 Trail Implemen -tation Identification of Problem Select the Understand the Analysis Identify possible Causes Root cause Data Developing Solutions Foreseeing Probable Resistance Regular Implementa -tion Follow up/ Review 1 2 3 4 5 12 11 10 9 8 7 6

EXPECTED COMPLETION DATE:31.01.2014 GANTT CHART PROJECT START ON :01.07.2013 EXPECTED COMPLETION DATE:31.01.2014 S.No. Phase Schedule July Aug Sep Oct Nov Dec Jan Feb 1 Identification of work related problems PLAN   ACTUAL 2 Selection of Problem 3 Define the Problem 4 Analyze the Problem 5 Identification of causes 6 Finding out the root causes 7 Data analysis 8 Developing solution 9 Foreseeing probable of resistance 10 Trail implementation & Check performance 11 Regular Implementation 12 Follow –up / review Note : PLAN COMPLETED ON TIME DELAYED COMPLETE

IDENTIFICATION OF WORK RELATED PROBLEM STEP - 1 1 2 4 5 6 7 8 9 10 11 3 12 IDENTIFICATION OF WORK RELATED PROBLEM

SELECTION OF PROBLEM Members ranked problems based on the following categories 1. Productivity 2. Quality 3. Cost 4. Delivery 5. Safety 6.Morale Score were given (1-6) for all the categories by the Team Members& Final score card was generated.

SELECTION OF PROBLEM CATEGORY TEAM MEMBERS Total Rank PGS GRS JSK VM KRK P 4 5 23 III Rank Q 6 3 2 20 II Rank C 29 I Rank D 14 IV S V M 1 VI Team members decide to select a COST related problem

STEP - 1 IDENTIFICATION OF WORK RELATED PROBLEM S.No PROBLEM DESCRIPTION CATEGORY STATUS A-Type B-Type C-Type Reduction of power cost 1 Cooling water stirred by compressed air Completed 2 High start up current for heavy machines 3 Continuous running of dust collector motor while not in operation 4 Continuous running of vacuum pump 5 Conventional lighting system Under Progress 6 High captive power usage Reduction of Fuel cost 7 Steam lines not insulated 8 No heat recovery from steam condensate 9 High steam cost Under progress 10 Vulcanizer volume not used effectively

Type A -- Minimum involvement of other Department in Solving STEP - 1 IDENTIFICATION OF WORK RELATED PROBLEM S.No PROBLEM DESCRIPTION CTEGORY STATUS A-Type B-Type C-Type Reduction of SSRM cost 11 High breakdown On-going 12 No spares standardization Others 13 More oil leakage Regular 14 More air leakage 15 More minor incident 16 High water purchase cost Type A -- Minimum involvement of other Department in Solving them. Can be solved by the team itself. Type B -- Involvement of other Department is a necessity. Type C -- Problems can be solved with Management assistance

We did Data Stratification for these 16 Problems (A,B &C) STEP - 1 IDENTIFICATION OF WORK RELATED PROBLEM We did Data Stratification for these 16 Problems (A,B &C) PROBLEM IDENTIFICATION Yes Management Approval Required ? Required other department Help No (Minimum) A TYPE - 5 C TYPE - 7 B TYPE - 4

STATUS OF “ C” TYPE PROBLEMS STEP - 1 IDENTIFICATION OF WORK RELATED PROBLEM STATUS OF “ C” TYPE PROBLEMS

STEP - 2 1 2 4 5 6 7 8 9 10 11 3 12 SELECTION OF PROBLEM

STEP - 2 SELECTION OF PROBLEM Problem Description TEAM MEMBERS Total Rank PGS GRS JSK VM KRK High consumption of lighting power 1 2 8 III Rank High exhaust of Flash steam 3 4 13 II Rank High steam cost 18 I Rank High Captive power usage 11 IV Team members have identified High steam cost as the Highest ranking Problem

PROBLEM DEFINITION Currently, we are running the boiler with Furnace oil as a fuel The cost of furnace oil is un-predictable The impact of high fuel expenses incurs into a high process cost which leads to increase in product cost

STEP - 3 1 2 4 5 6 7 8 9 10 11 3 12 DEFINE THE PROBLEM

THEME : To reduce the steam cost PROBLEM DEFINITION THEME : To reduce the steam cost

UNDERSTANDING THE PROBLEM Better Better

UNDERSTANDING THE PROBLEM Continuous increase in Furnace oil price Policy change by Govt. in petroleum products Stock out of fossil fuel for boilers SO2 emission in boiler stack

TARGET To reduce steam cost 18% reduction Fuel Cost Rs/kg of steam Target Date – 31.01.14

STEP - 4 1 2 4 5 6 7 8 9 10 11 3 12 ANALYSE THE PROBLEM

Average Steam cost vs Fuel cost trend Better Inference : Fuel cost is increasing year on year

IDENTIFCIATION OF CAUSES STEP - 5 1 2 4 5 6 7 8 9 10 11 3 12 IDENTIFCIATION OF CAUSES

BRAIN STORMING Brain storming points Low efficient boiler Steam leakages in valves Existing fuel cost is high Improper insulation of delivery pipes High fuel consumption during start up Furnace oil contamination Availability of Furnace oil Government policy No flexibility in fuel type Steam leakages in pipelines Pre-heating of vulcanizers Fluctuating steam demand Inefficient usage of steam

CAUSE VERIFICATION Sl. No Brain Storming Points Relevant or Not 1 Low efficient boiler Not Relevant 2 Steam leakages in valves 3 Existing fuel cost is high Relevant 4 Improper insulation of delivery pipes 5 High fuel consumption during start up 6 Furnace oil contamination

CAUSE VERIFICATION Sl. No Brain Storming Points Relevant or Not 7 Availability of Furnace oil Not Relevant 8 Government policy 9 No flexibility in fuel type Relevant 10 Steam leakages in pipelines 11 Pre-heating of vulcanizers 12 Fluctuating steam demand 13 Inefficient usage of steam

FINDING OUT THE ROOT CAUSES STEP - 6 1 2 4 5 6 7 8 9 10 11 3 12 FINDING OUT THE ROOT CAUSES

Furnace oil used as a Fuel Fluctuation in crude oil price WHY WHY ANALYSIS Steam cost is high ( Why) Furnace oil used as a Fuel ( Why) Fluctuation in crude oil price

STEP - 7 1 2 4 5 6 7 8 9 10 11 3 12 DATA ANALYSIS

Furnace oil Rate trend Better Inference : Furnace oil rate is increasing year on year

STEP - 8 1 2 4 5 6 7 8 9 10 11 3 12 DEVELOPING SOLUTION

DEVELOPMENT OF SOLUTION COUNTER MEASURE To provide alternate fuel Type of Alternate fuel Feasibility Remarks DIESEL No High Cost GAS Not feasible in Madurai BIOMASS Yes Abundant availability

DEVELOPMENT OF SOLUTION Biomass energy is derived from plants and agro waste Biomass energy is getting widespread popularity Juliflora

DEVELOPMENT OF SOLUTION Advantages of Biomass It is one of the most inexpensive fuel for producing heat It is an inexhaustible natural resource Availability of Juliflora ( Type of shrub) is in Abundance in South India Biomass energy is capable of replacing fossil fuels

ACTION PLAN FOR SOLUTION Biomass gasification process Conversion of solid fuels into combustible gas mixture called producer gas (CO + H2 +CH4) It involves partial combustion of biomass Four distinct process in the Gasifier viz. Drying Pyrolysis Combustion Reduction

ACTION PLAN FOR SOLUTION Feed Cone Skip Charger Feed Shell Hopper HAG Reactor Drying Pyrolysis Combustion Reduction Boiler Rotary Dryer Silo Bin Blower Wet Biomass FURNACE OIL Ash Collection

ACTION PLAN FOR SOLUTION Risk Analysis Availability of raw material Juliflora is being available in 25 Lakh Acres of land in and around South Tamil Nadu Output per day is 2000 Tons Our per day requirement is 40 Tons (2% of production) Space availability Space required is 4000 sqft Created space for this project by layout modification

ACTION PLAN FOR SOLUTION Analysis Visited equipment supplier sites to understand the technical capabilities Payback worked for this project Investment for this project – Rs. 220 Lacs Government subsidy – Rs.30 Lacs / approx 80% accelerated depreciation benefit – Rs.48 Lacs Net investment on gasifier – Rs.142 Lacs Advance Payment through performance bank guarantee BOT (Built , Operate and Transfer) contract was made with the supplier

FORSEEING PROBABLE RESISTANCE STEP - 9 1 2 4 5 6 7 8 9 10 11 3 12 FORSEEING PROBABLE RESISTANCE

FORSEEING PROBABLE RESISTANCE Solid waste disposal Bio char generation is 5-6% (2.5Tons / day) It can be used as an excellent fertilizer due to higher carbon content (72%) This can be given to near by farmers, which may be a part of “our CSR activities” Can be disposed as a “landfill” Can be used as a burning fuel for the cement industry Statutory / Environmental aspects No need for IBR certification for this alternate fuel system Emission level is well within the CPCB (Central pollution control board) norm No Sulphur content in the biomass and hence termed as GREEN ENERGY Being a green energy, attractive subsidy also available from government (MNRE) Technological aspects No alteration in the boiler Switch over / back up option with furnace oil Got the consensus with the boiler manufacturer

TRAIL IMPLEMENTATION & CHECK PERFORMANCE STEP - 10 1 2 4 5 6 7 8 9 10 11 3 12 TRAIL IMPLEMENTATION & CHECK PERFORMANCE

TRIAL IMPLEMENTATION & CHECK PERFORMANCE Steam Cost Trend Better

TRIAL IMPLEMENTATION & CHECK PERFORMANCE Steam Cost Trend Better

REGULAR IMPLEMENTATION STEP - 11 1 2 4 5 6 7 8 9 10 11 3 12 REGULAR IMPLEMENTATION

REGULAR IMPLEMENTATION & CHECK PERFORMANCE Steam Cost Trend BEFORE TRIAL AFTER Better 47 47

STEP - 12 1 2 4 5 6 7 8 9 10 11 3 12 FOLLOW - UP / REVIEW

STEP - 12 Actions for Follow up & Review: Standardization : 1.Bio Gasifier efficiency increased by decreasing moisture content in wood by providing wood storage shed. Target Date 10.10.2014. -Completed 2. Nozzle modification for better air suction – Target date 08.09.2014 -Completed 3.Conveyor to be provided for wood feeding – Revised target date 03.07.2015 Standardization : 1.PM check list for Bio Gasifier implemented

AFTER 85% Before 40% INTANGIBLE BENEFITS AFTER BEFORE RADAR CHART 20 40 60 80 100 AFTER BEFORE TEAM WORK PROBLEM SOLVING ABILITY CREATIVITY COMMUNICATION SKILLS INVOLVEMENT QC KNOWLEDGE TIME MANAGEMENT MORALE INITIATIVE UNDERSTAND CUSTOMER NEEDS Before 40% AFTER 85%

STEP - 12 TANGIBLE BENEFITS C - Cost E-Environmental Steam cost reduced from Rs 3.05 per kg to Rs 2.40 per kg E-Environmental Boiler stack- SO2 reduced from 9.81mg/m3 to 4.92 mg/m3 and NOX reduced from 20.21mg/m3 to 11.57mg/m3

STACK MONITORING OF BOILER Pollution Norms-80 mg/m3 FURNACE OIL TRIAL BIOMASS Better

GANTT CHART PROJECT END ON :31.01.2014 PROJECT START ON :01.07.2013 S.No. Phase Schedule July Aug Sep Oct Nov Dec Jan Feb Mar 1 Identification of work related problems PLAN   ACTUAL 2 Selection of Problem 3 Define the Problem 4 Analyze the Problem 5 Identification of causes 6 Finding out the root causes 7 Data analysis 8 Developing solution 9 Foreseeing probable of resistance 10 Trail implementation & Check performance 11 Regular Implementation 12 Follow –up / review Note : PLAN COMPLETED ON TIME DELAYED COMPLETE

HORIZONTAL DEPLOYEMENT The same process will be implemented in our other plants

LESSONS LEARNT Risk taking ability Innovative ideas Think differently Team Work is better than the individual’s Knowledge Every problem has a solution Quality of solution depends on the involvement Self confidence of our team to solve bigger problems. Each attempt is a good learning in Problem solving

FUTURE PLAN We proudly say that we are the first in our country to install Bio Gasifier plant for steam generation To implement this project in Madurai II plant TARGET : BEFORE Oct ‘2015 Our journey towards becoming green and being a responsible corporate citizen Continues…….

Thank you