This document summarizes the supply chain of DG Khan Cement Company (DGKCC), one of the largest cement manufacturers in Pakistan. DGKCC sources raw materials like limestone from quarries located 7-8 km from its plants. The raw materials are transported to plants via conveyor belts and stored in silos. Key production operations include precalcination, kiln heating, clinker cooling, and clinker storage. DGKCC conducts quality control testing and packs cement into 50kg bags. The packed cement is then dispatched to a countrywide distribution network of over 1000 distributors and retail outlets through DGKCC's five regional sales offices.

1. COMSATS Institute of Information and Technology
Defence road, off Raiwind Road, Lahore
PRODUCTION OPERATIONS AND MANAGEMENT
ASSIGNMENT NO 2
“SUPPLY CHAIN ANALYSIS OF A INDUSTRY”
GROUP MEMBERS
ASHHAD ABASS GILANI (026)
RIAZ HUSSAIN (060)
MUHAMMAD YOUSUF (082)
ZUHAIR BIN JAWAID (094)
SESSION:SP14-BEC(B)
SUBMITTED TO : SIR ABUBAKAR SIDIQQUI
_______________________________________________________________________
COMSATS INSTITUTION OF INFORMATION TECHNOLOGY,
LAHORE.

2. SUPPLY CHAIN MANAGEGEMENT
The best companies around the world are discovering a powerful new source of competitive
advantage. It's called supply-chain management and it encompasses all of those integrated
activities that bring product to market and create satisfied customers.
The Supply Chain Management Program integrates topics from manufacturing operations,
purchasing, transportation, and physical distribution into a unified program. Successful supply
chain management, then, coordinates and integrates all of these activities into a seamless process.
It embraces and links all of the partners in the chain. In addition to the departments within the
organization, these partners include vendors, carriers, third party companies, and information
systems providers.
Within the organisation, the supply chain refers to a wide range of functional areas. These
include Supply Chain Management-related activities such as inbound and outbound
transportation, warehousing, and inventory control. Sourcing, procurement, and supply
management fall under the supply-chain umbrella, too. Forecasting, production planning and
scheduling, order processing, and customer service all are part of the process as
well.Importantly, it also embodies the information systems so necessary to monitor all of these
activities.
Simply stated, "the supply chain encompasses all of those activities associated with moving
goods from the raw-materials stage through to the end user."
LaLonde defines supply-chain management as follows: "The delivery of enhanced customer and
economic value through synchronised management of the flow of physical goods and associated
information from sourcing to consumption. ".
Management department functions:
 Inventory management
 Transportation service procurement
 ·Materials handling
 Inbound transportation
 Transportation operations management
 Warehousing management
Moreover, the Supply Chain Management department is expected to increase its range of
responsibilities, most often in line with the thinking that sees the order fulfilment process as one
co-ordinated set of activities. Thus the functions most often cited as planning to formally include
in the Supply Chain Management department are:
 Customer service performance monitoring
 Order processing/customer service
 Supply Chain Management budget forecasting

3. Supply Chain Management becomes a tool to help accomplish corporate strategic objectives:
 reducing working capital,
 taking assets off the balance sheet,
 accelerating cash-to-cash cycles,
 increasing inventory turns, and so on.
The companies have recorded a number of impressive supply-chain accomplishments, including:

 a 50-percent inventory reduction.
 a 40-percent increase in on-time deliveries.
 a 27-percent decrease in cumulative cycle time.
 a doubling of inventory turns coupled with a nine-fold reduction in out-of-stock rates.
 a 17-percent revenue increase.
Figure 1 : SUPPLY CHAIN MANAGEMENT SCHEMATIC FLOW

4. SUPPLY CHAIN ANALYSIS OFDG CEMENT
D.G. Khan Cement Company Limited, (DGKCC) is amongst largest cement manufacturers of
Pakistan with a production capacity of 14,000 tons per day (4.200 million tons/annum). DGKCC
has three cement plants, two plants located at Dera Ghazi Khan and one at Khairpur Distt.
Chakwal. 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-parallel and consistent quality. The Company is listed
on all the Stock Exchanges of Pakistan.
DGKCC production processes are environment friendly and comply with the World Bank's
environmental standards. It has been certified for "Environment Management System" ISO
14001 by Quality Assurance Services, Australia. The company was also certified for ISO-9002
Quality Management System) in 1998. By achieving this landmark, DG Khan Cement became
the first and only cement factory in Pakistan certified for both ISO 9002 & ISO 14001...
Fuel, being one of the major inputs in cement manufacturing cost and ever increasing prices has
forced DGKCC to look for alternate cheaper fuels in order to maintain its results positive. Study
was carried to find out suitable fuels available in the market, DGKCC started with local coal
having calorific value ranging 5000-6000 Kcal/ton. After continuous efforts and search, number
of alternate fuels are in use e.g. rice husk, poultry waste, corn cob, corn stick, cotton dust, cotton
sticks etc. Study is underway to explore availability and usage of different other alternate fuels.
By using alternate fuels DGKCC is also contributing its share towards environment control.
Figure 2 : DG KHAN CEMENT COMPANY

5. SUPPLYOF RAW MATERIALS (Point ofOrigin)
In general, cement is a mixture of limestone, sand, clay and iron. The most common type of
hydraulic cement is the Portland cement. The term hydraulic cement is used because cement
hardens when mix with water.
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 to
produce 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.
Gypsum is supplied from taunsa shareef , because Gypsum mountains are present there.
VMS is present in which day to day electronic receipts are genereated and bills are paid annually
to government . DG Cement has taken limestone mountains from government of Pakistan.
Drilling:
Drilling is done in the quarry with the help of drilling machine. They create a space for the
powder explosive.
Blasting:
The powder explosive is blasted under a controlled process to get different small segments of
limestone. The large segments are also converted into small segments which is called crushing
process.
Figure 3 : supply of raw materials

6. Inbound (Logistics)
Inbound logistics refers to the transport, storage and delivery of raw ,material coming into a
industry or company.
DG Cement is implementing inbound logistics in the following way:
Conveyors takes 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.
Figure 4 : Conveyor Belts
Raw Material Storage
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. At the
top of raw mill there is a separator section. Hot gases come from pre heater at the bottom of raw
mill. A suction fan with a motor of 5500kw.Here the dusty air rotates and air is separated from

7. dust nearly 80% dust from air is separated in four cyclones. These four cyclones sent the crushed
material into CF silo with the help of air slides and bucket elevators.
CF Silo (continuous flow):
The fine particles from the conditioning tower and electrostatic precipitator and the powdered
feed from the raw mill are conveyed to the bucket elevator. The bucket elevator picks this feed
and take it to the top of the CF silo and then throws it in.
Specifications ofa CF silo:
Capacity = unit 1 unit2
7000 tons 7500ton
SILO:
It is the large storage of raw mill which comes from the Raw Mill. It is made of concrete & can
store raw mill for long time.
Purpose:
Its main purpose is to homogenize the raw mill. One of its main purpose is to also
store raw mill for long time.
Quantity of raw mill product is properly documented.
Quality is also evaluated via various tests and is Documented.
Figure 5 : Storage Silos

8. Production operations
ProductionsoperationsatDG Cementare :
 continuous
 carriedout accordingto productionplanningsheetsorlogsheets.
Variousproductionoperationsare :
 precalcination
 heatinginKiln
 clinker cooling
 Dust collection
 Clinker crushing
 Clinker storage
 Gypsum Addition
 Mixing of Additives
 Metal Detection
Figure 6 : Production Operations at DG Cement

9. Quality Control
(QC) is a procedure or set of procedures intended to ensure that a manufactured product or
performed service adheres to a defined set of quality criteria or meets the requirements of the
client or customer.
There are two types of Quality Control Procedures:
ChemicalLabs:
To check the Composition of different components of Cement with the help of
X-ray Analysis.
PhysicalLabs:
To check the Setting Time, Expansion Testing and Compression Testing of
different components of Cement.
Packing
The packing plant comprises of 2 units :
 Both unitsconsistsof 4 packers
 Each packer can pack 8 bagsat a time
 Each packer has a capacity of 100 tons/hr
 The cement bags are attached manually to the rotating packer which fills the cement bag
 When the bag is filled up to the required weight 50kg, it automatically falls on the
conveyor belt which takes the bags to the roller conveyor
 From these rollers the bags slide to different channels and finally cement bags are loaded
on the trucks for dispatch
Figure 7: Packing at DGCC

10. Outbound Logistics(Dispatch)
In dispatch department the main work is to dispatch the cement according the orders of sales offices.
After taking the authorities the dispatch department makes truck loading advice according to which
cement bags are loaded on truck. It basically shows the quantity, location of unit, truck driver name, truck
number and destination of loaded cements bags.
Dispatch department also make many report daily some are
Truck Loading Advice
Truck Loading Advice (Inventory Transfer)
Truck Loading Check Report
Unit Wise Dispatch Detail
Gate Pass
Gate Pass (Inventory Transfer)
Office Wise Dispatches
Figure 8 : Dispatch
Products
Two different products are produced at DGKCC namely Ordinary Portland Cement and Sulphate
Resistant Cement. These products are marketed through two different brands:
• DG brand & Elephant brand Ordinary Portland Cement (It is also called the OPC and its demand is
about 92% because of commonly used).

11. •DG brand Sulphate Resistant Cement (It is also called the SRC and its demand is about only 8%
because it is only used in standing the foundations its main work is to finish the pours produced
while standing the foundations and made the foundations much strong).
Figure 9 : Products
Point Of Consumption
Distribution
DGKCC has a countrywide distribution network and has more than 1000 distributors. This
extensive distribution is handled by five regional sales offices. These regional sales offices
operate in assigned areas and have network of dealers in each area to achieve maximum sales in
their territories. Moreover, direct sales are also made to institutional Clients for Projects.
Retail
Retailers buy cement according to their selling capacity from these 5 distribution Centers.
Export Market
DGKCC enjoys a good market share of Indian subcontinent, Middle East, East & South Africa.
DGKCC continues to explore new markets and looking forward to new avenues in world’s
growing economies.

12. SUMMARY
Figure 10 : Summary of cement industry