The Digital Unity – How Customers benefit from a ...

1 The Digital Unity . How Customers benefit from a production management System Warsaw, June 2017. Restricted Primetals Technologies 2015. 2016 All rights reserved. Digitalization is driven by steel producers requirements and enabled by new technologies STEEL PRODUCERS . NEW TECHNOLOGIES. REQUIREMENTS. End- customer integration QUALITY Communication technologies Lot-size 1 Computational power New business models Internet technologies Know-how management Cloud technologies Supplier integration Big data analytics New steel grades Self-learning systems Availability of information Mobile devices Ergonomy/operator support FLEXIBILITY PRODUCTIVITY Augmented reality ACHIEVED BY HOLISTIC AUTOMATION. Restricted Primetals Technologies 2017 All rights reserved. Page 2 June, 2017 / EA Three major requirements in steel production shall be supported by digitalization Outstanding quality Flexibility to customer requests Throughput Reproducible results - Flexible product specification Yield Seamlessly documented - Shorter delivery times Plant availability Flexible in used raw materials Operational costs Flexible in optimization criteria Maintenance costs - production - Energy consumption - Equipment lifetime Restricted Primetals Technologies 2017 All rights reserved.

2 Page 3 June, 2017 / EA A digitalized plant is like an orchestra . The Metals Orchestra Restricted Primetals Technologies 2017 All rights reserved. Page 4 June, 2017 / EA Metals Orchestra Teach your players to play better Restricted Primetals Technologies 2017 All rights reserved. Page 5 June, 2017 / EA Metals Orchestra The Primetals Technologies portfolio Know more improve your processes More focus on the essentials Your plant and its Digital twin Smart sensors provide additional information Repetitive, labour-intensive and dangerous Process models, Digital twins of the plant, about the process or the entire plant. work is supported by fully-automated enable process optimization in real-time as mechatronics solutions. will as offline simulation. Smart sensors either directly measure physical This gives more room to focus on values or use existing measures to indirectly This means perfect process guidance and the essential tasks.

3 Calculate additional information. full support for further process development. Smart sensors are the enablers for the implementation of advanced automatic functions, process models, as well as condition monitoring. Example: Example: Example: Camera-based slag detection and free-board Automated converter tapping incl. Blow-end calculation measurement for converter tapping the positioning of the ladle transfer car and alloy charging Restricted Primetals Technologies 2017 All rights reserved. Page 6 June, 2017 / EA Metals Orchestra The Primetals Technologies portfolio Knowing how your plant feels Get connected anytime anywhere All the necessary information . when and where you need it Comprehensive information about the condition Advanced communication technologies To ensure best possible operation and of the equipment an the respective processes allow for information to be transported maintenance of a plant, a vast variety of enables predictive maintenance, which will help beyond conventional limitations.

4 Information sources is required. to avoid unplanned outages. The core concept of smart work is that all From the collection of sensor data in harsh personnel will automatically receive This means improved plant availability and environments or from mobile equipment to exactly the information they need at the therefore increased plant productivity. displaying the information on mobile devices. time to get their job done. This means that all information is automatically tailored to From the shop floor to the manager s pocket the actual needs of the staff. Example: Example: Example: Converter tilting-drive monitoring, Wireless data transmission from the Online-documentation retrieved via LTC drive-train and railway condition monitoring ladle transfer car, QR-coded equipment, KPI dashboards for mobile devices augmented reality applications to guide maintenance work Restricted Primetals Technologies 2017 All rights reserved.

5 Page 7 June, 2017 / EA The Digital Unity . The conductor of the Metals Orchestra Restricted Primetals Technologies 2017 All rights reserved. Page 8 June, 2017 / EA The Digital Unity . The conductor of the Metals Orchestra Restricted Primetals Technologies 2017 All rights reserved. Page 9 June, 2017 / EA production management System A comprehensive approach PRODUCT DEFINITION, ORDER & LINE SCHEDULING. ORDER DRESSER Cross-plant scheduling of the Transformation of sales orders to order book process and quality instructions Throughput optimization Centralized process knowledge base production EXECUTION. PLANNING Realtime information about the Holistic planning production process from melt shop to shipping, Transparency across the whole from demand planning to process chain material planning Logistics benefits Increased utilization of production facilities Higher productivity with increased flexibility and better quality Reduced inventory Restricted Primetals Technologies 2017 All rights reserved.

6 Page 10 June, 2017 / EA production management System Order dresser State-of-the-art technology Comprehensive translation of sales orders to production orders including routings and process instructions considering production capabilities, technological rules, standards and quality directives. Creating test and sample instructions along the production route. Calculating material demand for each production step Considering cost and time models Easy system integration with ERP including certified SAP I/F. Through Process Know How Modern GUI for easy data administration benefits One central knowledge base with all production related data to determine how to produce products from casting to finishing lines. - Fewer systems to maintain Integrated with planning, scheduling, production and quality.

7 - No complicated and expensive interfaces Restricted Primetals Technologies 2017 All rights reserved. Page 11 June, 2017 / EA production management System Planning and Scheduling State-of-the-art technology State-of-the-art technology Holistic planning from melt shop to shipping and from demand planning to detailed scheduling Streamlined and consistent decision making across sales, planning and production processes Maximizing throughput, quality and service level Minimizing costs, energy consumption, stock levels and lead times User-friendly, fast and adaptable schedules and plans Planning evaluation based on KPIs and scenarios comparison Central repository of planning rules and priorities benefits Highly specialized optimization models for metals specific production technologies like casting, rolling, hot charging, etc.

8 KPI-driven Planning: Plan and schedule calculation can be adapted to specific and dynamic business goals Supports multiple demand fulfilment models: make-to-order, make-to-stock, . Highly adaptable user interfaces optimized for planner's daily tasks Restricted Primetals Technologies 2017 All rights reserved. Page 12 June, 2017 / EA production management System production Execution Material and Stock management Administration of all material types Goods receipt, movement tracking and goods issue on material and batch level management of scrap yards, bunkers, small part areas, semi finished products and equipment Schedule Execution Fast reaction to production issues by modifying released line schedules management of line schedule states production Tracking Tracking of material flow Registration of all production data in the different facilities Basis for reporting and quality control production Order Lifecycle Managing production orders during their lifetime Status management Restricted Primetals Technologies 2017 All rights reserved.

9 Page 13 June, 2017 / EA Holistic ironmaking Efficient coordination of ironmaking plants Stockyard Ore preparation Sinter plant BFs Hot stoves BOFs Coke plant Burden chemistry Required HM Amount, production production Blast Flow production Coke quality Target basicity Blast Temp Si content, HM Temp O2 enrichment O2 assign- Stoves O2 assign- ment coordination ment Optimized production meeting requirements of respective downstream plants Cross plant coordination for optimal gas network utilization Transparent and traceable production decisions Reduction of costs and increase of production Restricted Primetals Technologies 2017 All rights reserved. Page 14 June, 2017 / EA Through-Process Optimization (TPO). Quality along the entire production chain QUALITY MONITORING.

10 QUALITY CONTROL. Continuous recording & supervision of Corrective actions feed forward quality parameters and feedback Automatic identification of deviations Rule based expert system Root cause identification Quality grading KPI evaluation Statistical process control Product genealy across the entire process chain THROUGH-PROCESS KNOW-HOW. Data storage for big data analytics Process and quality optimization Metallurgical and process rules Product development benefits Quality management support Reduced manual inspection, rework and downgrades Support for quality certification (ISO/TS16949). Reduced influence of human factor Restricted Primetals Technologies 2017 All rights reserved. Page 15 June, 2017 / EA Through process optimization Product genealogy TPQC keeps track of each product throughout the production chain and thereby directly supports the TS16949.