Application of Simulation and Theory of Constraints (toc) to Solve Logistics Problem in a Steel Plant
نویسندگان
چکیده
This case deals with the inbound logistics of raw material coming to Coke Plant of a Steel Plant located in eastern India. The said plant was having problem of payment of huge demurrage charges to railways due to higher cycle time of wagon unloading which further affected the downstream process and raw material inventory. A study was initiated to solve these problems using TOC and simulation to optimize the raw material value chain. Various enablers and their impact was assessed using simulation and the best of them were implemented by the team to achieve desired results. Apart from this, operation philosophy was fully overhauled solely based on the evaluation by simulation. Finally, there was a significant improvement in cycle time which led to reduction of demurrage and improvement in operations. This showed the power of simulation to influence the decision making without causing disruption in a running plant.
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