417, Off 9th Avenue, Sector I-9/3 Islamabad, Pakistan UAN: 111-500-300 PH: 443 5500, 5600, 5700 Fax: +92 (51) 4448695

417, Off 9th Avenue, Sector I-9/3
Islamabad, Pakistan
UAN: 111-500-300
Ph: 443 5500, 5600, 5700
Fax: +92 (51) 4448695
Email: [email protected]
Supply Chain Design, Management and Control
Submitted By
Mubah Khalid FA16-BBA-051
Muhammad Anas FA16-BBA-052
Neval Fatima FA16-BBA-055
Amna Saeed Ansari FA16-BBA-071
Submitted To
Mam Mahlaka Hina
PREFACE
This report content the briefing of Supply Chain system of Ittehad

Steel Mill, which we have visited for the purpose to understand the
procedures which are follows in this corporation to run the daily
operations.
At the first part of the report, we introduce the company. Ittehad

Steel’s affiliation with the steel industry dates back to 1970 when we
started out as a steel trading house in Rawalpindi. Soon enough, in
1978, we had started a steel manufacturing facility in Islamabad,
becoming one of the pioneers in steel manufacturing in the region. Our
first plant had a production capacity of a meager 35,000-40,000 TPY.
Second, we discuss about the supply chain system of Ittehad Steel mill
in which we tell about the raw materials of mill who they purchase and
who they utilize them then we tell about the manufacturing process of
mill.
Finally we ended up this report with suggestion for improvement and

for further progress in steel industry.
ACKNOWLEDGEMENT
3
Firstly, we are thankful to Allah Almighty, for giving us courage at each
and every step of our lives, and especially in making this report.
We are very thankful from the core of our to honorable Supply Chain
Manager, ITTEHAD STEEL, for providing us information.
We wish to express our deep gratefulness to Mr. Nisar Ahmed, for his
precious time. It was a memorable time in Ittehad Steel due to his
kind concern.
Contents
 Introduction...................................................................................................................................01
 Manufacturering Process...............................................................................................................06
 Supply Chain analysis of Ittehad Mill............................................................................................10
 Suggestions....................................................................................................................................14
INTRODUCTION
ITTEHAD STEEL is one of the largest and most respected private sector
steel manufacturer in Pakistan.
They are recognized nationally as one of the few manufacturers of

standardized and internationally accredited structural steel products in
Pakistan. Ittehad steel are also exporters of steel products to
Afghanistan, and were awarded the export performance.
BACKGROUND:
Ittehad Steel’s affiliation with the steel industry dates back in 1970
when they started out as a steel trading house in Rawalpindi. Soon
enough, in 1978, they started a steel manufacturing facility in
Islamabad, becoming one of the pioneers in steel manufacturing in the
region. Their first plant had a production capacity of a meager 35000-
40000 TPY.
Today Ittehad Steel is the second largest steel manufacturer in the

private sector, with a capacity of about 400,000 tons per year. Facilities
include three steel re-rolling mills, and 2 steel induction furnaces. With
locations in Faisalabad and Islamabad, it gives us the unique edge of
being able to cater to customer demand and requirements throughout
Pakistan. Over the years, the brand ‘Ittehad Steel’ has become
synonymous with products of quality and reliability.
Having acquired an extra 32 acres of land next to our existing facility in

Faisalabad, our future plans include the commissioning of a state of the
art Steel Re Rolling Mill, which will enhance the production capacity to
about 1,000,000 tons a year.Future plans also include a captive power
generation plant to be less dependent on the national grid.
Besides the manufacturing of Steel Billets and Steel bars, the current
facility also has the provision of manufacturing Stainless Steel, and
other Alloys, including those required for automotive and defense
industry.
BOARD OF DIRECTORS- MANAGEMENT:
 FOUNDING DIRECTOR/ CHAIRMAN:
KHALID JAVAID is the Founding Director of Ittehad Steel Industries. He

has more than 38 years’ experience in steel industry. After receiving a
Bachelor’s degree from Gordon College, he joined the family steel
trading business but within 3 years, vented out to setup Ittehad Steel’s
first re-rolling plant in 1978.
 EXECUTIVE DIRECTOR:
MOHSIN KHALID is an Executive Director of the Ittehad Steel, a Pakistan

conglomerate with interests in steel, logistics and renewable energy. He
is also currently CEO of ITC logistics, a regional transportation and
supply chain provider with operations in Pakistan and Afghanistan.
 DIRECTORS:
SHABAN KHALID Pepperdine University (Malibu, CA, USA) BBA – Santa

Monica College (Santa Monica, CA, USA) Transfer College
USMAN KHALID- Bachelor of Business and Information Technology
(BBIT)
PRODUCTS:
As the name of the company, ITTEHAD STEEL shows they are

manufacturing steels of two different grades (Quality), GRADE 40 and
GRADE 60, both in different sizes. Grade 40 is used in manufacturing
buildings, houses etc. Whereas, Grade 60 is used to manufacture
bridge.
PROJECTS:
Bars manufactured by them are in most critical constructions specially

bridges, dams, powerhouses, nuclear reactors, cement plants, high-rise
& multi-story buildings. Famous organizations that are/were our client
include:
 Centaurus Islamabad
 National Monument Islamabad
 Shifa international hospital
 COMSATS ISLAMABAD
 Telecom tower Islamabad
 Multan Airport etc
COMPETITIVE ADVANTAGE:
According to Ittehad steel their competitive advantage is in
 Recognized for quality

 From Buying Scrap to Selling the Finished Product, everything is
done in house
 Facilities under One Roof
 Experience and team
 Equipment, including quality control.
Manufacturing Process
Steelmaking is the process for producing steel from iron ore and scrap.
In steelmaking, impurities such as nitrogen, silicon, phosphorus, sulfur
and excess carbon are removed from the raw iron, and alloying
elements such as manganese, nickel, chromium and vanadium are
added to produce different grades of steel. Limiting dissolved gases
such as nitrogen and oxygen, and entrained impurities (termed
"inclusions") in the steel is also important to ensure the quality of the
products cast from the liquid steel.
Today, steel production makes use of recycled materials as well as

traditional raw materials, such as iron ore, coal, and limestone. Two
processes, basic oxygen steelmaking (BOS) and electric arc furnaces
(EAF), account for virtually all steel production.
Modern steelmaking can be broken down into six steps:
Iron making, which is the first step, involves the raw inputs of iron ore,
coke, and lime being melted in a blast furnace. The resulting molten
iron, also referred to as hot metal, still contains 4 to 4.5 percent carbon
and other impurities that make it brittle.
Primary steelmaking has two primary methods: BOS (Basic Oxygen

Furnace) and the more modern EAF (Electric Arc Furnace) methods.
BOS methods add recycled scrap steel to the molten iron in a converter.
At high temperatures, oxygen is blown through the metal, which

reduces the carbon content to between 0 and 1.5 percent. EAF
methods, however, feed recycled steel scrap through use high-power
electric arcs (temperatures up to 1650 C) to melt the metal and convert
it to high-quality steel.
Secondary steelmaking involves treating the molten steel produced

from both BOS and EAF routes to adjust the steel composition. This is
done by adding or removing certain elements and/or manipulating the
temperature and production environment. Depending on the types of
steel required, the following secondary steelmaking processes can be
used:
 Stirring
 Ladle furnace
 Ladle injection
 Degassing
 CAS-OB (composition adjustment by sealed argon bubbling with

oxygen blowing)
Continuous casting sees the molten steel cast into a cooled mold
causing a thin steel shell to solidify. The shell strand is withdrawn using
guided rolls and fully cooled and solidified. The strand is cut into
desired lengths depending on application; slabs for flat products (plate
and strip), blooms for sections (beams), billets for long products (wires),
or thin strips.
In primary forming, the steel that is cast is then formed into various
shapes, often by hot rolling; a process that eliminates cast defects and
achieves the required shape and surface quality. Hot rolled products
are divided into flat products, long products, seamless tubes, and
specialty products.
Finally, it's time for manufacturing, fabrication, and finishing. Secondary
forming techniques give the steel its final shape and properties. These
techniques include:
 Shaping (cold rolling)
 Machining (drilling)
 Joining (welding)
 Coating (galvanizing)
 Heat treatment (tempering)
 Surface treatment (carburizing)

Products of Ittehad Steel Mills Ltd.
DEFORMED BARS-GRADE 40 8mm - 57mm
Ittehad grade 40 Bars are made with international standard through

top composition only to give its customers the mightiest steel. Their
Deformed bars are widely used for construction of massive
structures for reinforcing concrete, giving it tensile strength and
other applications of masonry.
DEFORMED BARS-GRADE 60 8mm - 57mm
Through using the perfect composition of Magnesium, Phosphorus,

and lengths and diameters to serve every construction requirement.
They target the right mix of yield strength, Tensile strength, and
elongation of maximum results.
COLD TWISTED BARS- (TOR) 8mm-50mm
Ittehad Twisted TOR Steel Bars use corrosion resistance technology

to give lifelong durability and strength for reinforcing concrete in
buildings, roads, bridges etc.
PLAIN (ROUNDED AND SQUARES) 6mm- 38mm
Their round and square bars are popular in machinery, fasteners and
equipments production sector. Through precision straightening and
mirror finish technology that comes second to none, their line of
Plain steel bars is the pride of several machinery production
companies throughout the nation.
STAINLESS STEEL
In order to produce the best high performance stainless steel bars,

we use end-to-end approach from composition of chemicals tills the
testing phase. Their stainless steel products produced with unrivalled
quality and supreme consistency.
SPEACIALIZED STEEL
Ittehad Steel is no stranger to alloys. We create enhanced steel pipes

and rods for manufacturing of different instruments, machinery and
equipment that are bound to special weight, strength and heat
resistance factors. Our speacialized steel is engineered to last with
unparallel performance.
Supply Chain Analysis of Ittehad Mills
Here is an overview of the supply chain of Ittehad Mills:
 Suppliers and Raw Materials

Ittehad Steel Mills imports 95% of their raw material (scrap),
internationally from around 25-30 suppliers.
The rest of the 5% scrap is obtained from local suppliers.
 Manufacturers and manufacturing processes

The entire manufacturing process explained above is done in two
manufacturing plants;
 One of them is located in i-9/3, Islamabad

 The second one is located in Faisalabad.
Most of the manufacturing is done is done in the plants located in

Faisalabad, however the final re-rolling process takes place in the main
plant in Islamabad.
 Goods in Transit and Logistics

The goods that are transported from one manufacturing plant to their
other plants is done in local trolleys that they rent locally as well.
However, they have ‘ITC’ trucks who they have a contract with. These
trucks are used to transport goods for greater distances, whenever
needed. The end customer who demands these goods to be
transported to that particular place pays the fee for the trucks
transportation. This is how the transportation fee is covered.
 End product/ Finished Goods/ Retailers
The final product, or the final 40 feet bar of steel, after being prepared
is then ready for the customer to obtain. This finished good is kept in
the main manufacturing plant (Islamabad) and then loaded into trolleys
or trucks and is then delivered to the customer.
If the customer books the steels beforehand, that customer pays for
that steel as soon as they receive their ordered steel.
Local Suppliers International Suppliers
Faisalabad Mill
Islamabad Mill
Now that we have looked at the overview of their supply chain, we can
now analyze in accordance with all of the facts and data collected.
Final Analysis
1) Direct shipment
Since Ittehad Steel Mills have no warehousing or storage uses, they have
two manufacturing plants and they adapt the strategy of ‘Direct
Shipment’ where the raw material is directly shipped to these plants and
then directly sold to the end customer. They have no intermediaries
involved in their supply chain system.
2) Less Costly Supply Chain System
Their Supply chain systems endures less cost than most due to the above
adapted strategy. They do not have to bare expenses of distributors or
warehousing storage costs as they have no need of storage
3) Mix of Push and Pull Strategy
All of their raw material is ordered beforehand and SOME parts of their
processes are kept going whereas, the final product is made according to
the order of the customers. Eg-: they order any particular kgs of scrap
from their local manufacturers. A customer orders 40 feet of steel. Now,
out of that scrap that was pre-ordered in anticipation of customer
demand, the 40 feet of steel bar will be made just for that customer
4) On-going Flow of Processes

Orders are taken daily and customers orders come in daily as well. So raw
material comes into the company’s mill almost every other day and some
part of the steel making process begins, as soon as the steel is made,
more processes begin again in the background. They have a continued
processes going on with anticipated customer demand.
SUGGESTIONS
 Demand of Ittehad steel is high and they are externally strong but
internally they are weak. So, they have to work internally to
expand. They have not enough supply to fulfill the demands.
They need expansion.
 Ittehad Steel need to give attention to their employee in-terms of

their job satisfaction. And this not only comes through financial
reward but also through placement and the quality and quantity
of work conducted from them.
 There is no concept of warehouse in ittehad mill. They never stock

inventory. So, we suggest that they have to make warehouse for
emergency orders.
 There is also need for up

gradation in finance department
way of processing work. There are
 There is also need for up gradation in mill at Islamabad. Because
as manager said there are highly recognized and reputable
machinery and programs are available in the Faisalabad mill.
 Up gradation at Islamabad mill give better service to increase

productivity ten times.
 Ittehad steel should focus on their own logistics department and

deliver their orders from own logistics cell which is named as ITC
rather than external contractors.
 Ittehad Steel should focus in international market and try to
deliver international order by ships.
 Ittehad Steel should offer a mill tour so that the satisfaction level
of their consumers will increase as competitor offers this.

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417, Off 9th Avenue, Sector I-9/3

This report content the briefing of Supply Chain system of Ittehad

At the first part of the report, we introduce the company. Ittehad

Finally we ended up this report with suggestion for improvement and

They are recognized nationally as one of the few manufacturers of

Today Ittehad Steel is the second largest steel manufacturer in the

Having acquired an extra 32 acres of land next to our existing facility in

BOARD OF DIRECTORS- MANAGEMENT:

 FOUNDING DIRECTOR/ CHAIRMAN:

KHALID JAVAID is the Founding Director of Ittehad Steel Industries. He

MOHSIN KHALID is an Executive Director of the Ittehad Steel, a Pakistan

SHABAN KHALID Pepperdine University (Malibu, CA, USA) BBA – Santa

As the name of the company, ITTEHAD STEEL shows they are

Bars manufactured by them are in most critical constructions specially

According to Ittehad steel their competitive advantage is in

 Recognized for quality

Today, steel production makes use of recycled materials as well as

Modern steelmaking can be broken down into six steps:

Primary steelmaking has two primary methods: BOS (Basic Oxygen

At high temperatures, oxygen is blown through the metal, which

Secondary steelmaking involves treating the molten steel produced

 CAS-OB (composition adjustment by sealed argon bubbling with

 Shaping (cold rolling)

 Heat treatment (tempering)

 Surface treatment (carburizing)

DEFORMED BARS-GRADE 40 8mm - 57mm

Ittehad grade 40 Bars are made with international standard through

DEFORMED BARS-GRADE 60 8mm - 57mm

Through using the perfect composition of Magnesium, Phosphorus,

COLD TWISTED BARS- (TOR) 8mm-50mm

Ittehad Twisted TOR Steel Bars use corrosion resistance technology

PLAIN (ROUNDED AND SQUARES) 6mm- 38mm

In order to produce the best high performance stainless steel bars,

Ittehad Steel is no stranger to alloys. We create enhanced steel pipes

 Suppliers and Raw Materials

The rest of the 5% scrap is obtained from local suppliers.

 Manufacturers and manufacturing processes

 One of them is located in i-9/3, Islamabad

Most of the manufacturing is done is done in the plants located in

 Goods in Transit and Logistics

Local Suppliers International Suppliers

2) Less Costly Supply Chain System

3) Mix of Push and Pull Strategy

4) On-going Flow of Processes

 Ittehad Steel need to give attention to their employee in-terms of

 There is no concept of warehouse in ittehad mill. They never stock

 There is also need for up

 Up gradation at Islamabad mill give better service to increase

 Ittehad steel should focus on their own logistics department and

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