DG khan cement industry

1. Production &
Operation
Management

2. Presenters
Saqib Sarwar
18221554-005
Muhammad Umar
18221554-007
Rosheen
18221554-010
Syeda Saba Batool
18221554-023
Kinza Arzoo
18221554-045

3. Introduction of the Company
● History:
● DG Cement industry is one of the few industries that existed in Pakistan before the partition of the
sub-continent. The major reason for the existence of this industry is the availability of the raw
materials. Pakistan has inexhaustible reserves of limestone and clay, which can support the industry
for another 50-60 years.
● The annual production of the cement at the time of the creation of Pakistan was only 300000 tons per
year. By 1954 the production increased to 660000 tons per annum against a demand of 1000000 tons
per annum. At this time PIDC took initiative and established two cement factories Zeal Pak (240,000
tons) and Maple Leaf (100,000 tons) having a capacity of 340000 tones, thereby increasing the
production to 1000000 tons per annum. Since then besides expansion of the existing plants, new
plants have also established.
● Besides producing OPC, the Pakistani cement industry also started producing SRC, Slag cement and
white cement. In 1921 the first cement plant was established at WAH. At the time of independence
in 1947 there were four cement factories with an installed capacity of 470,000 tons per annum. These
units were located at Karachi, Rohri, Dandot and WAH. In 1956 PIDC established two plants at
Daudkel and Hyderabad and subsequently more plants were established in the private sector.

4. Introduction of Company:
D.G. Khan Cement Company Limited, (DGKCC) is amongst largest the
cement manufacturers of Pakistan with a production capacity of 22,400
tons per day (6.72 million tons/annum). DGKCC has four cement
plants, two plants located at Dera Ghazi Khan, one at Khairpur Distt.
Chakwal and one at Hub Lasbela District (Balochistan). All the plants
are based on latest Dry Process Technology. The Company operates
through a countrywide distribution network managed by different
Regional Sales offices. The Company's products are preferred on
projects of national repute both locally and internationally due to the
un-paralleled and consistent quality. The Company is listed
on Pakistan Stock Exchanges.

5. Product and
Process
Strategies
01

6. Super Sulphate Resistant
Cement (SSRC)
Types of cements:
Ordinary Portland
cement (OPC)
Sulphate Resistant
Cement (SRC)
Slag Cement.
01
03
02
05
04
The Five Types Of Cement Manufactured
White Cement.

7. Manufacturing Process:
The manufacturing process can be of any of the 3 types:
1. Wet Process an obsolete method of manufacturing due to poor kiln
heating and large water requirements.
2. Semi-Wet Process not popular due to high levels of fuel and energy
consumption and suited for materials with extreme elasticity.
3. Dry Process suitable for materials with low moisture content. Low
fuel usage as compared to the wet process, less maintenance
requirements, higher kiln efficiency due to pre- heating facility and low
kiln setup and maintenance costs.

8. Explanation:
○ In the first phase the limestone is combined with clay, ground in a crusher and fed
into the additive silos. Sand, iron and bottom ash are then combined with the
limestone and clay in a carefully controlled mixture which is ground into a fine
powder in a roller mill.
○ Then, the fine powder is heated as it passes through the Pre-Heater Tower into a large
kiln, which has length of 66 meters and diameter 5.5 meters. In the kiln, the powder is
heated to 1500 degrees Celsius. This creates a new product, called clinker, which
resembles pellets about the size of marbles.
○ The clinker is combined with small amounts of gypsum and limestone and finely
ground in a finishing mill (cement mill).
○ The cement manufacturing process consists of many simultaneous and continuous
operations using some of the largest moving machinery in manufacturing. A number
of sensors and computers allow the entire operation to be controlled by a single
operator from a Central Control Room (CCR).

9. Whole Procedure

10. Capacity
Planning
02

11. Capacity Planning
The crushed material is stored in the form of piles in the storage yard. There are 6 piles in the storage yard. Mixed piles
are used in larger quantity where as high grade and additive piles are used in small quantity.
 Mixed piles (limestone & clay)
 High grade (pure limestone)
 1 Iron ore (additive)
 1 Bauxite (additive)
 Specifications of a CF silo
Capacity = 7000 tons per unit . It is made of concrete & can store raw mill for long time. once the production of Portland
cement is complete, the finished product is transferred using Bucket elevators and conveyors to large, storage silos in the
shipping department. Rising demand and healthy margins have induced cement manufacturers to expand their production
capacities aggressively, from the present 0.8 million tons to 2 million tons in the next few years
This plant consists of 3 cement silos each having capacity of 22000 tons.

12. Capacity Planning
At present, there are 24 cement manufacturing units in the country with combined annual installed capacity of 49.4
million tons. The industry operates in two separate zones north and south with the northern zone representing around
80% of total production capacity and sales. Manufacturers in the southern zone have more room for revenue
diversification as they can tap a number of export markets via sea. The export potential for manufacturers in the
northern zone, however, is limited to Afghanistan and currently undergoing a major transformation as a number of
players are planning capacity expansion. Specifically, almost half of the players in the industry have so far
announced capacity expansion and more than three million tons have already been added to the capacity in the last
fiscal year.

13. Location
and Layout
Strategies
03

14. Location and Layout Strategies
Raw material supply:
The source and price of raw materials is one of the most important factors that determine the location of a
plant. Facilities that produce chemicals in bulk are usually located close to the source of raw material if the
cost of shipping the product is less than the costs of shipping the feed.
Location with respect to market:
If the plant produces high-volume and low-cost products, such as cement and fertilizer, it may be better to
situate the plant closer to the primary market since transportation cost is a large fraction of the sales price.
Transport facilities:
Facilities should be close to at least two major forms of transportation, whether that be road, rail, waterway,
and/or seaport.

15. Location & Layout Strategies
Availability of labor:
Skilled workers are usually brought to the plant from outside the area. There should be a local pool of unskilled
labor that can be trained to operate the plant, and of skilled craft workers to maintain the process units.
Availability of utilities:
Processes that require a substantial amount of cooling water is usually located near water sources, such as
rivers or wells. Cooling water may be directly taken from the water source, or may be stored in cooling towers.
Availability of suitable land:
The ideal land is flat, well-drained, with suitable load-bearing characteristics. Further considerations have to be
made if the land is reclaimed land near the ocean in earthquake zones.

16. Location & Layout Strategies
Environmental impact:
Depending on the location, it may be more difficult and costly to dispose of wastes. During the project design phase,
experts are typically consulted to learn more about an area's local regulations
Climate:
The climate of the area may affect processes and costs. For example, plants in cold areas need more insulation and
special heating. Facilities in earthquake areas need to be seismically sound. Plants in areas with high ambient humidity
will usually use air cooling instead of water cooling.

17. Layout Strategies:
Economic considerations (construction and operating costs):
Construction costs can be minimized by arranging process units and buildings that minimizepipes between equipment,
the amount of structural steel work.
Process requirements:
Example of process considerations that must be taken into account is the elevation of the base ofcolumns to give enough net
positive suction head to a pump.
Operation convenience:
Process units that are attended to frequently should be placed with convenient access. Valves,heads, and sample heads
should be placed where operators can easily access.
Maintenance convenience:
Equipment that requires maintenance should be in a location with easy access, and should have sufficient space for the
maintenance tasks.

18. Layout Strategies:
Future expansion:
The layout should be planned to conveniently allow for future expansion of processes. Pipe racks should have space for
future piping, and pipes should be oversized to allow for more flow in the future.
Modular Construction:
Modular construction is where sections of the plant is constructed outside of the plant, and then transported to the site
by road or sea. Advantages include improved quality control, reduced construction costs, less requirements for skilled
labor on site.
Safety:
Escape routes for workers need to be in place at each level in process buildings. Blast walls mustisolate equipment that
poses hazards to confine potential explosions.

19. Material Requirement Planning:
Increasing domestic capacity by building new plant for the production of cement to meet rising
Demand is expensive and takes a long time to bring on stream. The current cost of a new kiln to
Produce 750,000 tons of clinker per year, and related equipment, is approximately 100m. It takes
at least 3 years to build a new production line once planning permission has been granted.
The industry has therefore invested heavily in facilities for the importation of cement in order to
help meet this increase in demand. In general, cement is a mixture of:
• Lime Stone
• Clay
• Sand
• Iron

20. Material Requirement Planning:
Cement plants are normally located near the quarries which are the source of their main raw materials. The
main reason for their location is that 1.6 tons of main raw materials are required toproduce 1 ton of cement
DG Cement is getting their supply of raw materials from quarries (Limestone Mountains) located 7-8 Km
upward from plant site. Nearly 10,000 Tons of raw material is transferred from quarries to plant site
daily. MS is present in which day to day electronic receipts are generated. Bills are paid annually to
government DG Cement has taken Limestone Mountains from government of Pakistan on lease. Gypsum
is supplied from taunsa shareef , because Gypsum mountains are present their operations involved:
• Drilling
• Blasting

21. Inbound Logistics:
Inbound logistics refers to the transport, storage and delivery of raw material coming into an industry or
company. Conveyors take the new material from quarry to the factory site.
The limestone and shale to store the small fragments are loaded on the 7-Km long 3 belts conveyor
system running over rough in the open space.
The raw feed from the belt conveyer directly falls on the rotating table of the raw mill. The table contains on
3 crushing rollers. The raw feed is crushed into fine powder with these rollers then Material is sent to CF
Silo for storage CF Silo (continuous flow) powdered feed from the raw mill are conveyed to the bucket
elevator. The bucket elevator picks this feed and take it to the top ofthe CF silo and then throws it in.

22. Human Resource Strategies:
● There are four practices of human resource in
DG cement.
○ Recruitment and Selection Employees
○ Training and Relation Development Rewards
○ Performance Benefits
○ Appraisal Recruitment and Selection

23. Recruitment and Selection Employees:
There is a long process of recruitment and selection in DGKCC. First a vacancy add is published in newspapers. Then
interviews are conducted in Head office Lahore. A written test is also a part of selection process. Then after a proper
analysis a candidate is selected for the job. Now, the HR department of DGKCC starts to maintain the record of
employee in a file.
Following documents are the parts of this record book. Employee Academic Certificate Curriculum Violet Hand written
application for recruitment Company test Employee’s Code of Conduct Employee personal record form Appointment
Latter Medical fitness certificate Registered AID (Security Clearance) Orientation Program Orientation Arrival Probation
Review Form Review Form Conformation Office Orders Emails form Head Office and in the case of retirement or death
some other document also becomes the part of record file. Such like Death Certificate, Clearance form.

24. Training and Relation Development:
• Rewards DGKCC also arrange different workshops and training programs for
employees. First the training of one year is necessary for new recruitment of
technical staff. With the advancement in Oracle Software, Company provides
employees opportunity to learn about oracle as they need. For this company
provides one week training to employees in head office.

25. Performance Benefits:
For this purpose, an Annual Confidential Report (ACR) is prepared
according the performance of employee throughout year. On the
basis of which different steps is taken for employee’s future.
A form is a part of this report which is called worker performance
appraisal form. The sketch of data which is obtained with the help of
this form is Personal Data Performance Evaluation of Professional
Knowledge of Hard work and Dedication Work Standard Team
Work of Attitude and Behavior of Attendance of Honest and Loyal

26. Rewards and Benefits:
An increment of 15% in salary is offered to
employees every year. DGKCC has been offered
resident facility to mostly its employees.
Travailing facility to employees is free from D.G
Khan to Site. Promotions are offered to deserving
employees. A well-constructed colony is also the
benefit of employees

27. Retirement Benefits:
On the time of retirement following adjustments are maintained.
 From the date of joining after probation period the amount is deducted from the
salary and provided every employee after his retirement in the form of Provident
Fund.
 After retirement an Earned Leave fund is also provided to employee.
 A humus amount in form of Gratuity is also provided to employee. It is basically
obtained by multiplying number of year service with last basic salary.
 Deductions are also done. May be employee took any loan from company than
the adjustment is passed for that amount. It can be house building loan or any other
loan.

28. Supply Chain Management:
The DG cement industry is mature companies focusing on economies of
scale, operating in an oligopolistic market, selling a product with high
density and low value-to-weight ratio, has neglected supply chain
management to realize cost reductions. Because the cement industry
relies on asset utilization, supply chain management provides
opportunity for market differentiation, cost reduction and value generation
Cement companies must transform their supply chains to be responsive
in emerging markets