Energy issues in supply chain and production planning in the steel industry: A case study at SSAB
2014 (English)Manuscript (preprint) (Other academic)
How can a different planning of production and supply chain increase energy efficiency and effectiveness? This descriptive and rather exploratory case study investigates these possibilities by mapping the production system and its supporting energy system at a steel company’s production site. Several possibilities for improvement in the planning processes have been located and evaluated. Our findings resulted in identifying four different improvement areas: 1) planning slab furnaces, 2) utilizing embedded heat and shortening lead times, 3) broader frame when scheduling for decreasing waste at set-ups, and 4) demandresponse opportunities related to electricity price variations. The first improvement area: planning of the slab furnaces, shows the largest potential, both in terms of energy savings and reduced costs. The second and the third improvement areas are similar to each other in terms of potential energy savings, but if the lead-time also could be decreased in the second it would be more economically beneficial than the other. Additional possibilities are found in the fourth improvement area where electricity demand response actions by rescheduling the energy-intensive production into times of low electricity price might save electricity costs. To conclude, the company could reach both higher energy efficiency and profitability simultaneously, by utilizing the energy- and the production systems combined in a more efficient and effective way.
Place, publisher, year, edition, pages
2014. 489-501 p.
Production planning, supply chain planning, energy efficiency, energy system, case study, steel industry
Engineering and Technology Economics and Business Business Administration Energy Systems
IdentifiersURN: urn:nbn:se:liu:diva-112287OAI: oai:DiVA.org:liu-112287DiVA: diva2:765210
18th International Working Seminar on Production Economics, Innsbruck, Austria, February 24-28, 2014
An earlier version of this paper was presented at IWSPE18 2014.2014-11-212014-11-212014-11-21Bibliographically approved