China How Tangsteel Deals with the Chances of Digitalization. ZhenRui Zhao IT Direcector

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1 China How Tangsteel Deals with the Chances of Digitalization ZhenRui Zhao IT Direcector

2 1 Review 2 Innovation 3 Key Points of Smart Factory 4 Vision for the future

3 Brief Introduction of Tangsteel Key member of HBIS (No.2 of Steel company of China) Located in Tangshan City 18 Million Tons per year for Tangsteel, From ore to final products. 140 Types of products :

4 Green Tangsteel Water Treatment Center Iron Tapping hole

5 Major Mills(Post SMP) HQ LaoTing GuYe KaiPing Plant #1 SMP HRM Plant #2 SMP HRM CRM Dept. CRM Plate Ltd. SMP + HRM Section Dept. Stainl es Ltd. SMP + HRM High Strength Automobile Sheet Ltd. CRM2 in short (2014) Coil Slab long section Cold Coil G Coil A Coil Plate Section Coil Slab Cold Coil G Coil A Coil

6 Review the Past of IT Development of Tangsteel ERP Iron/Post SMP DSS Plant #1(SMP&HRM)/CRM1/Stainless Mill MES LMS, Quantity & Quality System EMS Equipment inspection system BI E-Commercial Platform CRM ODS to cover product development phase Project Management OA improvment HR improvement Equipment Life-cycle management and on-line Diagnosis system Gigabit optical fiber backbone network OA System Plant #1 (SMP&HRM) Sales &production system Traditional Architecture Advanced Planning System(APS) Order Dressing System(ODS) Quality Management System(QMS) CRM2 MES Plant#1/Stainless Mill Melt shop Control Center(MSCC) Plant#1 /Stainless Ltd. MES modification Mill Database System(MDS) Plate Mill IT improvement CRM2 MES Phase 2 ()new lines CRM1 MES Enhancement APS QMS function Enhancement LIMS Order negotiation system Stainless mill and CRM2 Smart Factory Adjustment on Intelligent Manufacturing Architecture

7 Legacy Architecture BI/BO L5 OA CRM HR C ERP Buy WM PP QM Sales FI/CO EM S L4 MES Assistant system Plant #1MES CRM1 MES Iron areadss Plant2 DSS Logistics EMS Train shipping Equipment Inspection Mesurement Managament Quality and Quantity System L3 Stainless Mill MES Coaking DSS PCS L2 PLC L1 IT (Network/Servers/Security etc.)

8 Challenges on the Traditional System FI Oriented instead of Customer oriented -Small orders, customized SO instead of Big batch SO -Due-Date Negotiation Quality Control Result Adjustment mode instead of process control and Final SO Oriented Mill Coordinating Supporting instead of Flat organization Mode Lack connection between Automation system & Information system

9 1 Review 2 Innovation 3 Key Points of Smart Factory 4 Vision for the future

10 China Manufacture 2025 Key points of Smart Factory definition in China Manufacture One Target:Factory Operational Excellence 2 Two Supporting System:Technical supporting system;standardization System 3 3 Main Lines Advancing:Integration of Production Management- Control ;Integration of whole industry SCM;Life-cycle Equipment Management 4 Four ability promotion:overall perception; Collaborative optimization; Forecast and early warning;scientific decision making 5 Five Features:Digitalization;Integration; Modelling; Visualization Automation 6 Six Core business Domain: Production management- Control SRM Equipment Management Energy Management HSE Strategy Management

11 Intelligent Manufacturing Standard Architecture Coordinating Company Shop Control Equipment Layer Production Sales 5 layers System Architecture Defined in Construction Guideline of National Intelligence Manufacturing standard architecture : Equipment Layer:Including Sensors,instruments and meters, bar code,rfid, equipment, machine, device etc. Material basis of production Resource System integration Design Logistics Service Life-cycle Control Layer:Including PLC,SCADA,DCS, FCS etc. Shop Layer: Focus on the production management of Mills/Shops,Including MES etc, Inter connecting &Inter working Company Layer: Focus on the company management,including ERP,PLM,SCM,CRM etc. Information fusion New types of business Coordinating Layer:Focus on companies in the industry chain to realize the coordinating R&D, intelligent production, accurate logistics and intelligent service by share information. Intelligent Function

12 New IT Architecture KPI System BI/BO L5 ERP OA CRM SRM TBM Sales PP QM buy WM HR FICO Equipment Management FI Contrl PlatForm PM L4 Company Level ODS Company Level APS Company Level QMS L3.5 MES Assistant System LIM S Plant 1# MES Long Product MES CRM 1MES Stainless MES Plate MES SMP MSCC Logistics EMS CTS Meter System Inspection QAS ISS EBS MMS ED S Non- Metals System L3 CRM2 MES Iron MES Train Shipping ACS Attendance RDS MDS TPQC L2.5 PCS PLC L2 Enhancement in Iron L2 L1 图例 : Legacy Constuction Plann

13 Innovation on the Legacy system Company Level ODS Company Level APS Company Level QMS L3.5 MDS L2.5

14 1 Review 2 Innovation 3 Key Points of Smart Factory 4 Vision for the future

15 Order-Dressing S O SG Standard User PSR_NO Mapping MIC_NO Establish the Core Quality DB: -Product Specification DB. Mic DB. Routing DB Dynamic Order Dressing Usage Exist? N Manual Unify the Quality Standard for all the mills Supporting New Product PSR_NO: Product Specification Code Y Development MIC_NO: Manufacture Index Code Auto Design APQP/FMEA

16 Smart Planning Algorithm Buy Production Logistics Sale Capacity Constrained Strategy Strategy Plan Planning DDQ Supporting S&OP Planning Iron Plan Monthly material Plan Integrated Sale-production Plan Demandmodelling Improve Decision Quality and efficiency of Coordination On-Time Delivery DDQ Optimized Stock Scheduling Port Plan Production Scheduling Shipping Plan

17 Melt Shop Control Center(MSCC) Dynamitic Scheduling APS Sequence of Tundish based on the real production Sequence of Tundish Pace Schelling result MES Real signals of L2 Pace Schelling result For all resources Pace Scheduling/ Temperature /Crane Scheduling/Ladle Planning For all resources Real signals of L2 Mixed SM Production 3BOF-3CCM ->2BOF- CTS BOF L2 LF L2 CCM L2 >3CCM

18 QMS Product Quality Key performance evaluation Quality Analysis On-line Judge QMS Quliaty Monitoring Manually Checking Pre-view of Coil TPQC Tracing Meeting with Product to Meeting with standard of Operation On-line Control and Off-Line Analysis Plan &Scheduling Stability Assurance Standard Oriented to SO Customer Oriented

19 Mill Database System Mill level big data, supporting QMS s Business All operation data in same Real-time DB Re-calculation and part operation data to Relational DB Algorithm mapping for the operation data and management data, Rule based to support L3

20 Unmanned CTS 3 Warehouse in CRM2 Auto Scheduling and Auto Shipping Unmanned CTS Unmanned CTS Stock allocation automatically Optimized on stock assignment and transportation Efficiency improvement Load Balance on Cranes Shipping Automatically

21 Equipment Management and On-line Diagnostics Omnidirectional and multi ERP- PM/MM Life-cycle equipment management Spot-Checking Management system On-line Diagnostics dimension system equipment management Realize the pre-use, in use, post-use life-cycle management of equipment Accurate equipment book-keeping On-line monitoring Intelligent diagnostics and troubleshooting Optimize spot-checking, maintenance, improve equipment perfectness Improve attachments management

22 System Integration ERP ODS APS QMS Information integration Platform LMS CTS MS LIMS 会议回执 -- 河钢唐钢 Plant#1 MES Unified interface platform CRM2 MES Stainless MES Data Processing Hub For Different system Unified interface Large scale concurrent automatic processing supporting EMS Robot Smart System RMS CAL L2 PLCT L2 CGL L2 RC L2 Pack L2 trigged by Events

23 Value of the New Architecture Know-How Consolidation - Core Metals Quliaty DB. Product life-cycle supporting Service Oriented Manufacture - MTO Supporting; Balance batch production and customized requirement Flexible Manufacture - Based on the Self organization and quick response of the production,.to reduce the cost and Detailed FI analysis supporting Agile Manufacture - Based on the Quality assurance system, Design and Production integrated

24 1 Review 2 Innovation 3 Key Points of Smart Factory 4 Vision for the future

25 Vision for the Future KPI System BI/BO L5 ERP OA CRM SRM TBM Sales PP QM buy WM HR FICO Equipment Management FI Contrl PlatForm PM L4 Company Level ODS Company Level APS Company Level QMS L3.5 MES Assistant System LIM S Plant 1# MES Long Product MES CRM 1MES Stainless MES Plate MES SMP MSCC Logistics EMS CTS Meter System Inspection QAS ISS EBS MMS ED S Non- Metals System L3 CRM2 MES Iron MES Train Shipping ACS Attendance RDS MDS TPQC L2.5 PCS PLC L2 Enhancement in Iron L2 L1 Notes: Legacy Constuction Plann

26 Thanks!

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