Bangladesh Steel Re-Rolling Mills Limited (BSRM)

TOPIC: QUALITY MANAGEMENT

SUBMITTED TO:
Sumon Bhattacharjee Lecturer Department of Accounting & Information Systems University of Chittagong.

PREPARED BY:
Shamsul Arefeen Fourth Year BBA (Hons) Exam Roll: 2005/61 Class Roll: 4329 Session: 2004~2005

Department of Accounting & Information Systems University of Chittagong.

CHAPTER ONE
1.1. EXECUTIVE SUMMARY
BSRM steels Ltd is one of the leading manufacturers of different bars in Bangladesh and also the market leader of the steels industry. Its Head office and factory are situated in Chittagong. BSRMs driving force has been its ability to develop new technology combined with a technical service force in cooperation with its customers. Now production Process of BSRM is fully automated. Realizing the fact of rapid technology development necessities, constant attention to the field of research, BSRM established well equipped manufacturing process in its factory and engaged highly qualified specialists in this work. To optimize customers service BSRM establish Customer Service Department and provides necessary information with the request. Now BSRM is producing all most every type of deformed bars as per local requirements in the hope of helping customers. Recently BSRM has taken plan to export their products in Middle East Countries. BSRM is a leading Steel Re-rolling Company in Bangladesh and contributing in the economic development of Bangladesh by paying taxes, employing large number of general public.

1.2. OBJECTIVES OF THE STUDY

 To gather practical experience about production process of BSRM Steels limited. To match theoretical knowledge with the practical application. To fulfill the requirements of the BBA Program. To know how to maintain quality of the product by a company in the real life. To know the quality assurance of product in the different level of production process. To know layout of production process of the factory. To know the product information of BSRM steels Limited.

1.3. LIMITATION OF THE STUDY

The study was conducted for two days and we remained in the factory and head office for about 5 hours which is not enough to get a detailed idea of the company. Moreover In factory the production officer did not provide all the information as required preparing the report. In head office the officer only answered questions we had asked and only provide an annual report. Moreover we did not get any cost information. So the report is prepared only on based on annual report and internet information provided by them.

1.4. METHODOLOGY OF THE STUDY

The information presented in the report is mainly collected by visiting the factory and head office. In factory I have collected the information through getting answer of the questions. Moreover I have collected some information through getting some documents from the production manager and quality assurance officer. Since tour is conducted for two days, I have collected some information from the head office. In head office, an accounts officer gave us an annual report for getting financial information. Moreover he answered some question regarding accounting, finance and marketing. I have also collected

some information from browsing the companys website named http://www.bsrm.com.

CHAPTER TWO
2.1. AN OVERVIEW OF BSRM STEEL MILLS LIMITED
BSRM steels ltd was established in 2002 and started its commercial production in 1st April, 2008. Its authorized capital is taka 200 Crore and its issued and paid up capital is taka 145 Crore. BSRM steels ltd has listed in stock exchange in 18 January, 2009. The head office is situated at Sadarghat, and it has factory at 4 Fouzderhat Industrial Estate, Sitakuinda, Chittagong. The management system follows managerial pattern. It has 116 skilled workers, 60 officers and 40 staff. It operates the productions in 03 shifts consisting of 8 hours per shift. BSRM is successful in ensuring the workers job satisfaction. Senior manager (Procurement) and Manager (Industry) deal production sector. The M.S. Billets are the raw materials of BSRMs Products that are imported and procured by the Megna Engineering Works (MEW) a sister concern of BSRM. The production capacity is 375,000 MT per annum. The utilization rate is near about 93%. Machineries have been imported from England. BSRM has set up another steel factory at Baizid Bostami in Chittagong to meet the increasing demand. The brand name of their products is BSRM. It is an ISO certified manufacturing concern. It usually follows cost base pricing. They do not discriminate the prices of their products. BSRM follows direct marketing philosophy. The marketing department executes plan on the weekly, monthly, and yearly basis. In order to promote their products, they normally use

print, audio and video advertisement media. Since they sell their products directly, they do not use any middle distributor. BSRM has some foreign customers. The major competitors of the BSRM are Kabir Steel Re-rolling Mills (KSRM), Sheema Steel Re-rolling Mills (SSRM), Rahim Steel and Bashundhara Group.

2.2. SWOT ANALYSIS OF BSRM

SWOT (or TOWS) is an acronym for strengths, weakness, opportunities and threats. A SWOT analysis, a subset of the broader situation analysis, is used to assess the fit between an organizations strategy, its internal capabilities (i.e. its strengths and weaknesses) and external possibilities (i.e. its opportunities and threats). Analysis for SWOT of BSRM is given in the table 1. 2. 3. 4. 5. Quality of our products. Best technical and managerial support. Direct distribution to the end users. Long time experience in M.S products. Goodwill.

Strength

Weaknesses

1. Labor unrest. 2. Dependence on outside transports. 3. Always not ensure every size of products.

1. New mills are going to set up at Baizid Bustami. Opportunities 2. Support of engineers and developers. 3. Increasing demand for the products. Threats 1. 2. 3. 4. Strong competitions. Lack of financial institutions help. Lack of governments support Fluctuation in foreign currencies.

2.3. BSRM VALUES

Sustainable growth: consistent improvement in the quality of products and services, Efficiency of process and profitability of business, continuously anticipating and responding to the changing business and environmental needs using innovation, sharing knowledge and experience within the organization. Quality: Creating products and services valued by our customers , constantly improving our processes through innovation and adopting best practices; reducing wastage ; minimizing cost; investing in systems and technology and developing our people to build a highly capable workforce. Reliability: Be the preferred business partner of our customers and suppliers by offering quality products; providing our best and timely services before, during and after the business transactions; and honoring all our commitment despite challenges. Trust: Preserve the faith and goodwill of all our stakeholderscustomers, shareholders, suppliers, employees, regulatory bodies, and society by adopting ethical and transparent business practices, being fair and honest in all our dealing and building robust governance and risk management process. Leadership: Be a role model, setting benchmark through our products, Processes and people; constantly moving ahead of competition by differentiating our products, innovating our process, increasing our market share and nurturing talent to develop leaders within the organization. Social responsibility: Acknowledge and fulfill our obligation towards the society by undertaking initiatives for the general upliftment of the society, building capability and making facilities available to the underprivileged. Customer satisfaction: Delight our external and internal customers at every stage of our interaction with them by duly understanding their needs, offering them our best products and services treating them respect and actively seeking and action on their feedback

2.4. THE PRODUCT AND THE PRIDE

BSRM Steels Limited produces a low carbon wieldable quality high strength and high ductility concrete reinforcing bar that is now extensively used all over the world. It is the only reinforcing bar used in construction in the 25 member nations of the European Community. The region around Bangladesh, Malaysia, Thailand, Singapore and India has adopted Grade 500 steel almost exclusively in all of their upscale constructions. The use of Grade 500 concrete reinforcing bar requires 15% less steel in any construction project. Further, the high ductility of Grade 500 bars ensures greater safety during any natural disaster. BSRM Steels Limited now brings this concrete reinforcing bar to every district of Bangladesh. This is consistent with BSRMs core philosophy of bringing the best and most economical construction steel for the building industry and the general people. For the convenience of the general consumer, BSRM has branded its Grade 500 reinforcing bar as Xtreme RB 500W which has become a widely recognized brand of steel throughout the country. BSRMs Xtreme 500W fully complies with the leading international and national reinforcing bar standards. Among them: a. BDS ISO 6935 RB Grade 500W. b. BS 4449 Grade 500. c. I.S. 1786 Grade 500. Xtreme 500W is superior to each and every type of steel available in the local market due to the following reasons: Economy in Design: This new bar has yield strength of 500 Mpa while normal high strength bars in the market have yield strength of 415 Mpa only. Thus, it is 20.8% stronger than Grade 60 bars reqiuring 15% less quantity of steel in constructions.

Economy in Construction: Xtreme 500W bars are weldable and save steels in splicing of steel bars in columns and beams. Safer in Design: Superior ductility and endurance as the steel is heat treated by a unique and patented Danieli QTB process. This ensures easier bending so there is no danger of brittle breakages. Superior fatigue resistance to vibration and shock loading offers bonus protection against earthquakes and wind surges. BSRM Steels Ltd. is the only bar manufacturer in the country to have invested in this premium European technology. Safer in Construction: Welded Xtreme 500W welded bar cages are very rigid and can resist shearing forces and will not distort when pouring concrete or be affected by vibrators. Bars tied with wires dislocate readily under the weight of fresh concrete and vibrators. Dislocation of bars is dangerous as tensile forces may act in location where reinforcement is absent.

2.5. QUALITY MANAGEMENT

2.5.1. INTRODUCTION
BSRM was the first steel company in Bangladesh to receive ISO 9001:2000 Certification .The systems has been continuously modified and developed in many surveillance visits by the lead assessor and BSRM continues to develop it in manner consistent with international certification practices. The company is also in the process of securing the globally acknowledged, U.K. based CARES product certification and registration. The aim of the system is to work for the consistent assurance of quality and its implementation will ensure product quality and thus customer satisfaction. Due to the nature of the industry, where in-process materials are not present, Final product testing is done in a modern testing lab equipped with computerized testing machines to ensure chemical

and mechanical properties. Finished goods are stored in intermediate quarantine until clearance from quality control and then stored in the finished goods storage area ready for delivery. Product traceability is ensured through a label that shows the date of production and other information such as diameter, length, weight of bundle and grade. This quality system ensures the best way to trace any product back to its date of production to verify the different production conditions at that time and the source of raw materials used. This traceability is an integral part of the prestigious CARES certification scheme.

2.5.2. QUALITY CONTROL

The company maintains standard quality of the product. And it also has program for improving the quality of the product. Research and development department The company has R&D department for improving the product quality. Standard of quality of the product: Their product standard is approved by BUET. Though the standard is 500 MPa, they follow the standard of 520 MPa. If any sample can not fulfill the minimum standard 520 MPa, they reject the sample lot. Countries from where the necessary machinery imported: The imported machinery of the company comes from China, Malaysia, Indonesia, etc. Brand name of their product: BSRM Ensuring quality control: The organization ensures the quality by i) Continuous checking process in every stage of the production

ii) iii) iv)

Chemists & Engineers ensure the product lot is under the standard quality. By using Universal Testing Machine (UTM), they test standard of their product. (Sample must be required minimum standard 520MPa) By using Bend Re-Bend Testing Machine (BRTM), they test the bending capacity of their product.

2.5.3. QUALITY TEST MACHINES

A. Bar Bending Mandrel: It is a machine by which some specific properties of Reinforcement are tested. The tests are bend test. At the bend test the finish products sample is bended by 1800. 1) The result of bend test will be positive if the bended sample is not broken or cut. 2) The result of bend test will be negative if the bended sample is broken or cut.

Figure: Bar Bending Mandrel B. CNC Roll Turning Lathe: It is computer Numerical control Lathe machine. A vast quantity of controlling can be done machine. Such as: To decrease higher iron made objects to lower diameter

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objects, to make thread on iron made

Figure: CNC Roll Turning Lathe

C. Universal Testing Machine (UTM): It is a Machine by which tensile properties of Reinforcement are tested. Yield strength, Tensile strength & Elongation of Reinforcement are obtained from this machine.

Figure: Universal Testing Machine (UTM) D. Computer attached with UTM: A computer is attached with the Universal Testing Machine. The tested datas of UTM are transferred to this computer. Then the computer shows the graphical representation of Yield Strength, Ultimate Tensile Strength & Elongation of Reinforcement.

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Figure: Computer attached with UTM

2.5.4. ENVIRONMENT POLICY

BSRM Steels Ltd. is committed to deliver quality and modernized products to meet the requirements of our customers, partners and other interested parties on time. We are dedicated to ensure environmental improvement and to avoid its all impacts through our continual improvement of business performance comply with relevant international and local legislation. BSRM Steels Ltd. is prepared to face any types of emergencies and to reduce the environmental pollution by continual improvement through setting measurable and achievable environmental objectives and its implementation and reporting.

2.5.5. QUALITY POLICY

BSRM Steels Limited will strive to improve quality of its products by innovative approach & through excellence in all facets of its activities. We are committed to maintain & enhance the trust and confidence of millions in this part of the world. We will endeavor hard to find a rightful place in global steel industry. This policy will be communicated across the organization for establishing & reviewing quality objectives & conduct

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business direction in line with all the requirements of quality management standard.

2.5.6. STAGES OF QUALITY CONTROL

In the factory Quality is tested in three stages. In First stage, raw material (billet) is tested to ensure amount of carbon, in Second stage Quality is tested in process product and then finally finished product is tested to ensure special characteristics. In three stages following are always ensured: Quality group is present. Fully automated facility. Quality group consists of specialists. 100% supervision is present. Quality checking at the proceeding stages is strictly maintenance by the quality group. Heat, temperature, fuel, water sprinkling etc. is set after finding out the appropriate accuracy for every item. Manual activity is present only where necessary. Program and Logistic Control (PLC) procedures are done for every item and stages. Continuous observation by the experts. The billets are charged to the furnace according to the heat numbers. Every reading & ratings are kept to make the quality as desired. Experts are ready and alert to ensure the machine activity 100%. Necessary cooling work or back up is provided by high speed cooling fans set at the perfect position.

2.5.7. OTHER FEATURES RELATED QUALITY ASSURANCE

TO

Production is from world-class high-speed fully

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automated plant of European Origin, the First Automatic Plant in Bangladesh. Production is maintained at controlled temperature with high finishing temperature during rolling. Rebars are cooled in automated walking beam cooling bed. The mechanical properties of the bars are thus guaranteed to be uniform. Fully automatic PLC controlled reheating furnace ensures Billets are heated uniformly with fully computerized temperature control. Weight per meter is with minus tolerance (for consumer benefit) as per National and International Standards Specification. Strict quality control is maintained at every stage of production and 100% tractability maintained during production. BSRM frog mark appears on each meter length of Re-bars to ensure genuineness.

2.5.8. FEATURES OF ISSUES OF BSRM

2000.

ISO

RELATED

BSRM obtained their ISO 9001: 2000 in the year BSRM is the first steel manufacturing organization that got ISO 9001: 2000 in Bangladesh.

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 For BSRM the checking and observation authority is URS, which is affiliated by ISO. The inspector of URS is basically come from Pakistan. The inspection is done by every six months. The non-conforming issues are mitigated by BSRM according to the given mitigation criteria by the authority.

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2.5.9. MINIMUM STANDARD REQUIREMENT FOR MECHANICAL TESTING

BSRM Steels Limited Minimum Standard Requirement for Mechanical Testing

BSRMSL Standards Yield Ultimate Strength Strength Grade XTRME 500W MPa 500 to 550 MPa 575 to 635 STS/ YS 1.15

BSRMSL Standards Minimum Elongation in 8" GL (%) 12,16, 10 22,25 28,32 20 MM MM MM MM 14 14 14 14

BSRMSL Standards Mandrel Diameter for 1800 Band Test (MM) 8 MM 36 10 MM 36 12 MM 48 16 MM 80 20 MM 100 25 MM 160 32 MM 200

Source: Quality Assurance Department BSRM Steels Limited.

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2.5.10. CHEMICAL COMPOSITION OF INCOMING RAW MATERIALS (BILLET)

STEEL GRADE GR 60 GR 40 WR-8 SK-40 SUPER-7 CHEMICAL COMPOSITION OF BILLET %C % Mn %Si %P (Max) %S (Max) %Cr (Max) 0.05 0.05 0.05 0.04 0.035 0.05 0.05 0.05 0.04 0.035 0.16 0.16 0.16 0.16 0.15 %Ni (Max) 0.16 0.16 0.16 0.16 0.15 Tungsten %Cu (Max) 0.045 0.045 0.045 0.045 0.045 0.25 0.25 0.30 0.30 0.25 Al (Max) 0.30 0.30 0.30 0.30 0.25

0.30-0.36 1.10-1.60 0.25-0.35 0.14-0.25 0.60-1.10 0.15-0.25 0.08-0.10 0.30-0.70 0.06-0.10 0.39-0.47 0.60-0.90 0.10-0.16 0.56-0.64 0.70-1.00 1.80-2.20

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2.5.11. PROCEDURES PRODUCTION

modern equipped material-testing lab.

AFTER

Finish products quality is checked at the highly The percentage of acceptance and rejection of is kept though the rate of rejection is very negligible. Specialists are recruited at the finish product testing lab. Weight, size, dimension, length etc, are strictly checked and ensured for finish product accuracy. At final product testing laboratory the tensile strengths are maintained basically. The samples of every lot is kept to face the complain of customer in a fare way. International standards are maintained for finish products Computer software are used to enhance the accuracy of the product (such as Auto CAD product design) Finish products weight measurement is done through automatic machine without any touch of human. for

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CHAPTER THREE
3.1. RECOMMENDATION
Though the company is the market leader of steel industry and adopted almost all of measures comparing to other company, the following measures should be taken by the company: 1. The company should reduce it unit production cost as early as possible to reduce price per ton because its price is more than other companies price. 2. The production of the company has to increase because the production is lower than the demand of the product. In market, their product demand is very high. 3. The company should Increase its production capacity because its products has huge demand in the market. 4. Take apart housing estate need built up for employees who are working in the production department.

3.2. CONCLUSION
The report has revealed the quality management and performance of BSRM Steels Limited for the year 2009 and first six month of the year 2010. After the tour in October 9, 2010, we get broader idea regarding the quality management for preparation of report, they provided some document based on which report is prepared. We also observed some quality test in the side which gave us the

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quality of 60 grade bar. Form this tour we also observed that BSRM Steels Limited greatly ensure their product quality and for which they offer high price for its product. Moreover, BSRM continuously inspect its product quality by a team of BUET after every six month. So, it can be concluded that BSRM has tried best in its quality management.

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REFERENCES

Annual report of 2009 of BSRM steels Limited. Half yearly un-audited Annul Report of 2010. Web address of BSRM steels ltd

(http://www.bsrm.com). Other documents provided by the head office.

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