Jindal Steel Odisha embarked on a transformative journey in 2021, unveiling an audacious INR 18,000 Cr capital expenditure plan aimed at doubling the capacity of its Angul plant from 6 MTPA to 12 MTPA by FY'24.

At the heart of this ambitious expansion was a forward integration by constructing a 6 MTPA Hot Strip Mill, designed to significantly enhance the group’s flat steel-making capacity from 2 MTPA to 8 MTPA. This bold endeavor was an expansion and a strategic move to fortify JSPL's market position and product mix within an aggressive two-year timeline, marking a pivotal chapter in JSPL’s journey toward industrial and infrastructural dominance. Moreover, the implications of the delay would have-

⮚ INR 10 Cr Revenue loss per day

⮚ JSPL missing out on the government tax incentive.

This 6 MTPA Hot Strip Mill is the subject of this case study.

⮚ Business Target – Readiness of Hot Strip Mill (HSM) with 1 Reheating Furnace (RHF) in 22 months//Earlier best achieved duration was 38 months.

⮚ Operational Target – Implement Critical Chain Project Management to increase efficiency & deliver within the required timeline.

Challenges

1. Sheer Magnitude of Scope Lead to Coordination Nightmare

The project, characterized by its enormous scope, involved constructing a 500+meter long elevated mill, utilizing over 230,000 cubic meters of concrete 25,000 MT of structural materials, 700,000-inch meters of piping, and 16,000 MT of equipment.

This massive undertaking necessitated coordination among 30+ contractors and management of 100+ major and minor packages. Simultaneous execution of civil and mechanical work in the same locations also created a colossal logistical challenge and restricted equipment and crane movements. The size and complexity of this project highlighted the major coordination losses.                                            

This all led to numerous unfinished work fronts, further exacerbating project delays.

2. Resource Constraints

Adding to the challenges, the project was also facing significant resource and capacity limitations, with civil resources available at only 65% and structure erection capabilities at 75% of the required levels. Resource mobilization for civil and structural work consistently failed to meet the necessary quotas, further impacted by seasonal fluctuations in the availability of civil workers. Supervision resources for civil and structural tasks were falling below 50% of what was needed.

3. Unforeseen Setbacks

The project was plagued by unprecedented uncertainties. One of the Finishing Mill stand housing fell into the sea during transportation. One of the Roughing Mill's stand housing required three attempts to meet quality standards due to initial failures. Incorrect soil analysis led to unexpected and extensive piling work. Additionally, the project was significantly hindered by two rainy seasons and disruptions from the second and third waves of COVID-19, further complicating an already challenging schedule and operational environment.

Also, the finalization of orders was delayed, leading to incomplete work packages, such as in the case of cable ordering, exacerbating the project's operational constraints.

Solution Implemented

1. Planned for minimal coordination enabling Focus-&-Finish

Identified areas requiring major coordination were pinpointed, and an execution plan was devised to ensure the handover of complete work-fronts in designated areas.
Despite the client's initial inclination towards overlapping tasks to meet aggressive deadlines—starting new tasks before formally completing prior ones—we advocated for the sequential completion of each task batch. This approach significantly reduced the need for inter-agency coordination, enabling swift project advancement even amidst limited supervisory resources.

For the mill, building structures were to be erected. To do that we focussed on the construction of the shed foundation and fabrication of structural material. Once, the batch of tasks was complete for a particular the batch of tasks was complete for a particular grid, only grid then only the erection process was started. It was done multiple times for different grids. This was a major shift from the conventional way of execution in similar projects

2. Allocated Resources Proactively, ensuring low Work-in-Progress

Clear priorities were assigned to workstreams and during resource shortages we ensured resource concentration on priority areas (e.g. Mill was the first priority and during resource shortages, resources from utility areas were transferred to the Mill area)

3. Ensuring uninterrupted progress with Full Kitting:

To avoid coordination b/w execution and purchase we ensured a full kit for the entire scope of cables. For Piping, instead of starting the piping activities at site, we focussed on completing the major part of pipe welding outside the site area, minimizing on-site welding by 30%, and eliminating coordination b/w civil and piping team. For cabling we procured the entire scope (900+ Kms) in one go.
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4. Streamliner – the enabler: To control execution, the entire process was automated on Streamliner. Streamliner provided reliable and transparent visibility at all levels to ensure synchronization and bring out the bottlenecks.

Tangible Result

Achieving Record Timeline Jindal Steel Odisha achieved an extraordinary milestone by establishing a record in the timely installation and commissioning of a most modernized 5.5 MTPA Hot Strip Mill at Angul, Odisha, completing the project within a record 29-month timeframe.

“Throughout the execution phase, our team encountered unforeseen challenges, including the identification of new project scopes, navigating through multiple monsoons, managing the impacts of the COVID pandemic, and addressing severe resource shortages in Civil and Structural works. Despite these formidable obstacles and additional delays in design and supply, we successfully commissioned our plant and associated utilities.

Integral to our success was the invaluable partnership with Realization, who played a pivotal role in meticulously planning the project and orchestrating seamless collaboration among internal and external stakeholders. Employing the Critical Chain methodology, Realization guided us with a steadfast commitment to their Focus-&-Finish approach. Their unwavering emphasis on completion, rather than a premature start, proved instrumental in achieving the remarkable results we celebrate today.

Realization's expertise and strategic guidance ensured that we remained aligned with our project objectives throughout the entire implementation period. Their commitment to excellence and their effective management of the Critical Chain methodology significantly contributed to our ability to overcome challenges and deliver a world-class facility within the defined timeline. We extend our sincere appreciation to Realization for their invaluable support in making this ground-breaking achievement possible.” - Mr. Dinesh Kumar Tripathi, President – Project, Jindal Steel Odisha Limitedx

Conclusion

Jindal Steel Odisha successfully constructed a 6 MTPA Hot Strip Mill. Despite significant challenges, including coordination issues, resource constraints, and unforeseen setbacks, JSPL implemented effective solutions such as minimal coordination, proactive resource allocation, full kitting, and automation with Streamliner. These strategies enabled JSPL to complete the project in a record 29 months, far ahead of the previous 38-month best, avoiding revenue losses and securing government tax incentives. This achievement marks a significant milestone in JSPL's industrial growth.