Plant Training

1. Pickling/ HR slitting
It is the first step for the material in the production process. HR (hot rolled coil) is
brought from various sources like import, tata steel & jindal steel etc. HR coil gets rusted
from the time it is manufactured to the time it is entering the production process for next
product. Thus, to remove the rust from HR coil; it is cleaned thoroughly with the help of
acids. The rust is completely removed because even if little rust is left in the sheet then it
would decay the area around that rusted area naturally. Pickling process is the cleaning
process of the HR coil. In this process, the HR coil is passed from uncoiler to the 3 tanks
of hydrochloric acid. The acid in 3 different tanks has different concentrations. The first
tank has least concentration and the third tank has highest concentration. Thus, the coil is
passed through acids of incremental concentrations. These acids remove the rust from the
coil. After that the coil is washed properly with water and then dried before rolling it
again over coiler. This process is called pickling.
HR slitting is the process which cuts the sides of the HR coil to make it according to the
customer specifications. The HR coils’ breadth is maintained by this process. This step is
done before the pickling process. HR slitter’s main component is its blades. These blades
are of specific thickness and the thickness of these blades is checked regularly. As soon
as the thickness goes beyond the accepted level, these blades are changed. This ensures
proper functioning of the HR slitter machine.

2. 6 Hi Hitachi
It is the rolling mill. There are other rolling mills also which are known by the name of
the manufacturer. For ex- 6 Hi Hitachi machine is made by Hitachi. The function of
rolling machine is to make the thickness of the coil according to the customer
specifications. The thickness of the HR coil is not according to customer requirements.
The rolling machine stretches the coil like elastic to increase the length of the coil and
decrease the thickness of the coil. It causes inelastic deformation of the material as HR
coil is not elastic material and does not gain its original shape back. This process is
carried out by applying heavy pressure with the help of rolls on the coil. When rolling
machine runs for one time the HR coil can be shrunk in thickness only to a maximum
limit. Thus, if the customer requirement specifies to make the coil with lesser thickness
then the coil has to be passed through the rolling machine several times till the
requirement is not fulfilled.
Rolling machine diagram:

Roller of rolling
machine
More width
coil as Less width
input coil as
output

The output from this machine is CR coil. The difference between HR coil and CR coil is
that it HR coil is more flexible while CR coil is not. It happens because the deformed
particles during the process loose their directional properties and hence the ductility of
the material is lost. The coil gets heated up during this process; the temperatures are
brought down by using coolants and other chemicals during the process. These chemicals
stick to the outer surface of the coil. Thus, to get rid of these chemicals the coil is then
passed through ECL (electrolytic cleaning line) machine which cleanses with the help of
caustic soda and dries the coil.
There are two types of surface finish i.e. bright and texture. These finishes are obtained
from the kind of roll used for the rolling machine. These rolls are maintained by the
RGM/ EDT division which processes the rolls according to the machine on which the roll
would be required and with what finish.
3. Annealing
Annealing process is done to regain the lost mechanical properties of the steel. It causes
the re-crystallization of the deformed particles during the cold rolling process.
Exact specifications of annealing process are defined by the type of material to be
annealed i.e. the grade, length, breadth etc.
The coils are placed on the base of the furnace
one over the other. The bigger coil is placed at
bottom of the stack and smallest coil is placed on
the top. Maximum number of coils in one furnace
is 3 or 4 depending on the width of these coils.
There are two covers in the furnace and the
heating is provided with the help of hydrogen
flowing in between these covers. Once the coils
are placed, these coils are covered with the inner
cover. Next step is to remove all the oxygen from
the inside cavity by passing a stream of nitrogen
through it. After that the next step is to check for
safety purge. The furnace is checked for any
leakage and all the safety valves are checked.
Then, the heating process starts which is done with the help of Hydrogen. There are 8
burners in the furnace to maintain the same temperature throughout the furnace. The
temperatures range from 700oC to 1700oC depending on the grade of the material
annealed.
Heating of the material at this temperature removes crystal defects from the material and
causes particles to re-crystallize. Then the coils are step cooled after heating as shown in
the figure below:
The coils are first air cooled from 725 to 300oC then water cooled from 300 to 80oC.
Then the nitrogen gas is passed to remove all the hydrogen in the furnace. This process is
called safety purge-II. After this, the coil is placed in a dry air cooling furnace
(KATHABAR). It is done so that rusting could not be caused by the moisture in the air to
the hot material. This furnace has kathene at starting and at the end. Kathene has the
property that it absorbs moisture from air when it is hot and releases moisture when it is
cold. Thus air is passed in to the furnace the moisture is soaked by hot kathene and then
dry air is used to cool the hot coil after which the air is released into the atmosphere after
the moisture is re-added to the air by cold kathene. This furnace is operational for 30 long
hours for each coil. The complete annealing process takes around 10 to 15 days. After
which the material is passed for skin pass.

4. Skin Pass
Skin-rolling, also known as a skin-pass, involves the least amount of reduction in
thickness: 0.5-1%. It is used to produce a smooth surface, a uniform thickness, and
reduce the yield-point phenomenon and smoothening of stress-strain curve. It is also used
to breakup the spangles (small piece of shiny material) in galvanized steel. This process
is majorly used to realign the mechanical properties of the material in a specific range.
This process smoothen the YPE curve i.e. the stress strain curve.
Stress Stress

Strain Strain

BEFORE AFTER

After this process coil is oiled to make it rust resistant.

5. GP-1
Hot-dip galvanizing is a form of galvanization. It is the process of coating iron, steel, or
aluminum with a thin zinc layer, by passing the metal through a molten bath of zinc at a
temperature of around 860 °F (460 °C). When exposed to the atmosphere, the pure zinc
(Zn) reacts with oxygen (O2) to form zinc oxide (ZnO), which further reacts with carbon
dioxide (CO2) to form zinc carbonate (ZnCO3), a usually dull grey, fairly strong material
that stops further corrosion in many circumstances, protecting the steel below from the
elements. Galvanized steel is widely used in applications where rust resistance is needed,
and can be identified by the crystallization patterning on the surface (often called a
“spangle”).
The resulting coated steel can be used in much the same way as uncoated. Galvanized
sheet steel is often used in automotive manufacturing to enhance the corrosion
performance of exterior body panels.
INFOTECH
1. Network
a. Intranet
All computers in the Sahibabad plant are connected via LAN (Local Area Network) and
all other locations are connected through VPN (Virtual Private Network) and Leased
Line. VPN connects all plants and branches except Kolkata office. All branches are
connected to Sahibabad plant with a bandwidth of around 256 kbps. Plants in Orissa and
Khapoli have a bandwidth of 4Mbps and Delhi head office has a bandwidth of 2 Mbps.
Leased Line are used for connecting plants i.e. Sahibabad to Khapoli, Sahibabad to
Orissa and Sahibabad to Kolkata etc. Both VPN and Leased Line links are working on
active-active basis. If one link goes down then the entire traffic will be routed through the
other link. If Leased Line is not working then Kolkata plant will not have any intranet
connectivity and if VPN is not working then branch offices will not have VPN
connectivity but the plants will stay connected through Leased Line.

b. Internet
Internet in Sahibabad plant is provided by Tulip and Reliance with bandwidth of 8 Mbps
and 10 Mbps respectively. Both Tulip and Reliance links are working in active-active
mode. If one link goes down then the other link will carry the entire traffic. Branches are
provided the internet access through Sahibabad Plant. Other plants and Delhi head office
have their separate internet connections.

c. Servers
Sahibabad plant has 2 file servers; one for 23/4 plant and second for 28/4 plant. One
Antivirus server is there which is used for Sahibabad plant and branch offices. 2 mail
servers are there which work in active-passive mode and only one mail server is active at
a time; second server is active when first server is not working. The mail server at
Sahibabad is the universal mail server for outside mails. It means all the mail
communications from outside world will come through Sahibabad mail server. Proxy
server is used to provide internet access to Sahibabad plant and branches. All SAP
servers (Development, quality and production) are maintained at Sahibabad plant and are
accessed at all plants and offices.
Orissa plant, Khapoli plant and Delhi head office have their separate file servers, mail
servers, proxy servers, firewalls and antivirus servers which cater to their respective local
plant/ office only.

d. Network topology
Whenever a location is provided a network, it is provided through cables or fibers or
radio frequency signals which in turn are connected to any terminal via modem, router,
firewall and switch.
Modem is used to convert signals from analog to digital and vice-versa. Router is used to
merge two different networks. Firewall is placed at gateway level and controls all ISP
traffic (Inbound and outbound). It can also do traffic shaping, anti-spam & intrusion
detection.

2. SAP FICO

FICO stands for Finance (FI) and Controlling (CO). All the modules are integrated with
FICO at some point. For example when material is created in the SAP, accounting and
costing details are entered for that material. Accounting details are needed to be entered
in all the scenarios.

Accounting configurations have a hierarchy which starts from ‘Client’. After that, the
next level of hierarchy is ‘Chart of accounts’ which is defined for the entire group of
companies. Then GL accounts are defined. These can further be used for reporting like
Balance sheet, P&L accounts and Trial balance etc. Then next level is Company which is
an optional level. Company code is defined at the next level. After that Business areas are
assigned to company code. For example – we have 6 business areas; SBST for Sahibabad
plant, SBPW for Sahibabad power unit, ABST for Orissa plant, ABPW for Orissa power
unit, KBST for Khapoli plant and KBPW for Khapoli power unit. The financial
statements can be seen at any level of this hierarchy.

Client

Chart of Accounts

GL Accounts

Company

Company Code

Business area
The Trial Balance in SAP is stored in an open format which is not specific to any
country’s accounting system. This open format is maintained in SAP because the
company is global and therefore, customization according to Indian accounting system
can’t be done.

Many entries are updated automatically while some entries have to be entered manually.
1. Automatic entries: Accounts entries are updated automatically when the material
moves in the Plant i.e. when purchase order is raised, goods are received,
consumed in the plant, finishing of goods is done, goods are issued, commercial
invoice and excise invoice are raised.
2. Manual entries: Many entries like bank transactions, vendor invoice, customer
invoice, cheques details etc are entered in SAP manually.

Some details that are entered in accounting are:

1. Valuation class: This is a major field in material master and all the accounting
entries related to material flow through this key field. Price of material is
considered either standard or moving average. In our current scenario all input
materials are valuated on moving average & finished goods as well as WIP are
valuated on Standard price based on costing of Material.
2. Profit center: Profit center details are added under this tab.
3. Planned price: The costs that are incurred on the material during production
process are reflected by this field.
4. Standard Price: It shows the cost that was calculated during the time of
configuration.

Financial statements can be seen in two formats.

1. Single accounting currency: Accounting currency is entered and Checkbox for
all calculations in local currency is selected then all the entries will be in that
currency. The entries in foreign currency will be automatically converted by SAP.
2. Multiple Accounting currency: If the checkbox for all calculations in local
currency is not selected then the transactions in foreign currency will be displayed
in foreign currency.

(Signature)

2. SAP SD

SAP has three sales organizations in the company i.e. TRADE, OEM and EXPORT.
These three have different sales cycles. They are described below:
1. Trade sales cycle
Trade sales cycle follows following steps:
a) Create sales order (Tcode – ZGMSSALES) - This is a customized transaction
to select the material for which the sales is to be done and includes the standard
transaction for order creation (Tcode - va01).
b) Create outbound delivery (Tcode - VL01N) – Outbound delivery is made to
support all shipping activities like picking, packing, transport and goods issue.
c) Loading slip (Tcode - ZS001 for SBST plant) - The loading slip is made for
transportation of the goods.
d) Inspection lot selection (Tcode - QA32) – Usage decision is made by the quality
department and the approval is given if the material is found ok.
e) PGI – (Tcode - VL02N) – PGI means Post goods Issue. When PGI is done,
stocks are updated in inventory and the ownership of the goods is changed.
f) Create billing Document (Tcode - VF01) – Commercial invoice is made using
this transaction.
g) Create Excise invoice (Tcode - j1iiN) - Excise invoice is made through this
transaction

2. Trade stock transfer sales cycle

a) Create Purchase Order (Tcode - ZGMSST) - Stock transfer Purchase order is
created for the supplying unit.
b) Create One Step delivery (Tcode – VL10b) - The one step delivery is created in
this case instead of outbound delivery.
c) Loading slip (Tcode - ZS001 for SBST plant) - The loading slip is made for
transportation of the goods.
d) Inspection lot selection (Tcode - QA32) – Usage decision is made by the quality
department and the approval is given if the material is found ok.
e) PGI – (Tcode - VL02N) – PGI means Post goods Issue. When PGI is done,
stocks are updated in inventory.
f) Create billing Document (Tcode - VF01) – Commercial invoice is made using
this transaction.
g) Create Excise invoice (Tcode - j1iiN) - Excise invoice is made through this
transaction

3. OEM sales cycle

OEM sales cycle follows following steps:
a) Create quotation (Tcode - VA21) – Quotation is created for the customer using
this code. The material entered should be assigned to sales organization ‘OEM’.
Pricing details are also added in this step.
b) Approval 1 (Tcode - ZTECHAPPROVE1) - Technical approval is done by the
concerned department.
c) Approval 2 (Tcode - ZTECHAPPROVE2) - Technical approval is done by the
concerned department.
d) Approval 3 (Tcode – ZCOMMAPPROVE) - Commercial approval is done by
the concerned person.
e) Create sales order (Tcode - VA01) – Order is created with reference to
quotation made.
f) Goods receipt (done by plant people) – Goods are received in the store after their
production is complete.
g) Check stock (Tcode - MB52) – Stock entered can be checked through this
transaction. However, this step is optional and can be skipped.
h) Create outbound delivery with order reference (Tcode - VL01N) – Outbound
delivery can be created by specifying the order number.
i) PGI – (Tcode - VL02N) –Post goods Issue is done for the outbound delivery
created.
j) Create dummy bill (Tcode - VF01) – This bill is mandatory step and is a bridge
for further transaction. However, the details of this invoice are not entered
anywhere.
k) Create release order (Tcode - VA01) – Release order is created with the order
type ‘zror’.
l) Create outbound delivery (Tcode - VL01N) – Logistics delivery is created in
this step
m) Loading slip (Tcode - ZS001 for SBST plant) - The loading slip is made for
transportation of goods.
n) Inspection lot selection (Tcode - QA32) – Usage decision is made by the quality
department and the approval is given if the material is found ok.
o) PGI – (Tcode - VL02N) – PGI means Post goods Issue. When PGI is done,
stocks are updated in inventory and the ownership of the goods is changed.
p) Create billing Document (Tcode - VF01) – Commercial invoice is made using
this transaction.
q) Create Excise invoice (Tcode - j1iiN) - Excise invoice is made through this
transaction

4. Export sales cycle

Export sales cycle follows following steps:
a) Create quotation (Tcode - VA21) – Quotation is created for the customer using
this code. The material entered should be assigned to sales organization ‘Export’.
Pricing conditions are also added in this step.
b) Create Pro forma invoice (Tcode -VA21) – Pro forma invoice is generated in
this step.
c) Approval 1 (Tcode - ZTECHAPPROVE1) - Technical approval is done by the
concerned department.
d) Approval 2 (Tcode - ZTECHAPPROVE2) - Technical approval is done by the
concerned department.
e) Approval 3 (Tcode – ZCOMMAPPROVE) - Commercial approval is done by
the concerned person.
f) Create sales order (Tcode - VA01) – Order is created with reference to
quotation made.
 g) Goods receipt (done by plant people) – Goods are received in the store after their
production is complete.
h) Create outbound delivery with order reference (Tcode - VL01N) – Outbound
delivery can be created by specifying the order number.
i) PGI – (Tcode - VL02N) –Post goods Issue is done for the outbound delivery
created.
j) Create dummy bill (Tcode - VF01) – This bill is mandatory step and is a bridge
for further transaction. However, the details of this invoice are not entered
anywhere.
k) Create release order (Tcode - VA01) – Release order is created with the order
type ‘zero’.
l) Create outbound delivery (Tcode - VL01N) – Logistics delivery is created in
this step
m) Loading slip (Tcode - ZS001 for SBST plant) - The loading slip is made for
transportation of the goods.
n) Inspection lot selection (Tcode - QA32) – Usage decision is made by the quality
department and the approval is given if the material is found ok.
o) PGI – (Tcode - VL02N) –Post goods Issue is done for the outbound delivery
created.
p) Create billing Document (Tcode - VF01) – Invoice for customs is made in this
step.
q) Create Excise invoice (Tcode - j1iiN) - Excise invoice is made through this
transaction
r) Transfer to port (Tcode – ZPORTN) – This transaction is for shipping the
material to the port.
s) Port release order (Tcode – ZPOR) – This transaction makes an order to release
the material from the port.
t) Create outbound delivery (Tcode – VL01N) – Outbound delivery for shipping
from port is created.
u) PGI (Tcode - VL02N) - Post goods Issue is done for the outbound delivery
created.
v) VF01 – Create Billing Document – Commercial invoice is made using this
transaction.

(Signature)

3. SAP MM
The material management module deals with functions related to materials used in the
production of the final goods. SAP MM has two master data tables i.e. material master
and Vendor master. The raw material required is checked in the stock, if it is unavailable
in the stock then the purchase requisition is created. The purchase department will then
raise a request for quotation, after receiving the details of the quotations and getting
necessary approvals the purchase order is created, the goods are entered in stock after
GRN. The following creates a rough picture of the MM module.
1. Create material
2. Create vendor
3. Procure material through PR
4. Request for quotation
5. Purchase Order
6. Goods Receipt
7. U/D ( Quality)
8. Posting of Excise ( If material is excisable)
9. Goods issue
10. Invoice verification

(Signature)

4. SAP ABAP

ABAP (Advanced Business Application Programming) is a high level programming

language created by SAP. It is currently positioned, alongside the more recently
introduced Java, as the language for programming SAP's Web Application Server, part of
its Net Weaver platform for building business applications. Any modification in the SAP
functions is done by the ABAP team. ABAP people are also involved when the
customization to reports is to be done. Customized transactions can also be developed
with the help of ABAP. Thus, all the development part is carried by ABAP team.

Following types of reports can be generated in SAP.

1. Classical report: These are the simplest reports. It is just an output of data using
the Write statement inside a loop. These reports are not having any sub reports. It
is having one screen for output.
2. Interactive ALV report: These reports have a drill down option into the report
data. For example, Column one of the report displays the material numbers, and
the user feels that he needs some more specific data about that material, he can
click on material number to direct him to details of that material number.

(Signature)
5. SAP Basis
The SAP environment is controlled by SAP Basis. SAP Basis is the technical module that
supports the entire SAP applications i.e. development, quality, production and BI
systems.
Role of SAP basis is to ensure that all SAP systems work properly. For that purpose
various functions like database administration, communication between operating system
and sap r/3, authorization and user maintenance are performed.
Some of the major functions that SAP basis handles are:
1. Spool Admin:
Many reports that are generated by SAP need to be printed. The printing
configurations are configured by SAP BASIS.
2. Request Transport:
Developer can request transportation from development server to quality server. This
request is processed by SAP BASIS. Similarly quality server to production server
request is processed by SAP BASIS.
3. Authentication and authorization:
Every user added to Sap production server costs a user license fees. Every user id has
a developer license fees for development server. Quality server is used for testing and
only server license fee is paid. SAP Basis people provide the access rights to the users
in SAP depending on the nature of work of that user.
Also, they monitor the correct usage of these licenses. For example – ‘A’ uses his
user id and password on his system and at the time of entering password, some other
person ‘B’ sees his password and tries to forge some changes in SAP through some
other system. Such kind of event could be identified by SAP BASIS as they can
identify which user is using the system and from which place. If anything suspicious
is there, SAP BASIS can stop the session of the user.
4. Periodic reports:
If some report in SAP needs to be generated periodically and sent to some people in
their mailboxes. Such kind of configurations can be done by SAP BASIS people
through transaction SM36.
5. Back up:
Back up of Sap production server is taken everyday and this back is around 710 GB
per day. It takes around 5 hours daily to take back up of the SAP server. This time
also depends on the technology used to back up. This back up is necessary because
SAP server may face problems at some time.
6. Monitoring:
Monitoring of the servers and databases is also prime responsibility of BASIS team.

(Signature)

6. SAP PP
Following Data is maintained in production planning module:
 1. Work center: Work center means a place allocated for a
set of activities to be performed by specific group of people. For ex - Annealing,
pickling etc.
2. Routing: routing means the route which raw material will
follow before it becomes the finish or Semi Finish goods would be delivered.
3. BOM: Bill of material will be generated for all the
materials. It will contain the details of raw materials to be consumed during the
process of production of that material.
4. MRP: Material requirement planning will be done for each
raw material based on the time at which that particular material is consumed in the
production process.

There are following types of storage locations in which the material is stored.
1. WIP - Work in progress. This type of storage location will store the
material that is to be transferred for next process.
2. Finished - This type of storage location will store material which has
passed all the stages of production and is now ready to be delivered.

PP CYCLE: Every time a new material is to be manufactured certain steps are followed
like 'material creation' which will be done at IT department.
1. Create material: Material will be created in SAP mentions all the details about that
material which will include its length, width, thickness and grade etc. Material type will
also have to be entered in the SAP system.
2. Route creation: the route that material will follow during the process of production.
3. BOM creation: Bill of material for that material will be created.

Now, there are two types of orders - MTO (Make to order) and MTS (make to stock).
Following PP cycle steps are followed after sales order creation in the case of MTO and
before sales order creation in the case of MTS
1. Creation and release of production order: Production order is made which will
specify production order type, routing, BOM etc.
2. Goods issues of components: Raw material will be issued against the production
order whenever specified in production schedule.
3. Confirmation of production activity: After each work center completes its activities,
the status of that order is updated at the work center.
4. Quality check: After the last work center completes its activities, Quality check of the
material is performed.
5. Goods receipts of the finished goods: After quality check, the material is received at
the storage location.

(Signature)