Case Study of Fazal Steel

Fazal Steel Mill FSL

Group members:M.Sulaiman Jahangir M.Umer FarooqUmair Azmat

1IntroductionMr. Karim Aziz Malik is the director of FSL. Fazal steel (pvt) limited is an industry of FSL group of companies. The group is a premier industrial establishment of Pakistan; involved in diverse business activities like steel casting foundries re-rolling rice processing textiles.

2Vision of FSL (PVT) LTD:FSL started production of steel bars in the year 1988. However since 1981, we were engaged in the manufacturing of quality Billets under the name and style of "Karim Aziz Industries (Pvt.) Ltd" opposite the Railway Station Hassanabadal. Therefore; we have 30 years long experience for the production of quality steel billets and steel bars from 1981 to 2011. We are producing the deformed reinforcement steel bars ASTM 615A Grade-60 & 40 and have the capacity to produce the following products on order.

3HistoryThe groups history in steel business goes back to 1913 when the foundations were laid down by opening of a trading house for steel products. This humble beginning soon turned into a strong countrywide distribution network selling products of world renowned Tata Steel and Nippon Steel.

The group first entered into manufacturing line in 1976 and since then has strengthened its position as a trend-setter and a technology leader in the area.

Today the group has as many as five manufacturing units with the capacity of hundred thousand metric tons 100000 m/tons in its folds with two new units under installation.

4ProjectsThe company has actively participated in several coveted national projects like Terbella Dam Extension Unit, The Pakistan Motorway Project M2 (Islamabad-Lahore) and M1 (Islamabad Peshawer).Ghazi Barotha Dam.Chashma Hydro Power Project. Chashma Nuclear Reactor.Indus Highway and number of similar projects. An excellent track record in these projects has made FSL a very prominent and respectable brand. FSL has the honor of supplying steel to the bridge with tallest pillars in Asia (Kalar Kahar-M2), bridge with widest arches in Asia (Attock) and the longest joint-less bridge (Jehlum-M2).

5Logistics The science of planning, organizing and managing activities that provide goods or services

"Logistics means having the right thing, at the right place, at the right time."

6Logstics managementThe objective is to plan and coordinate all the activities necessary to achieve desired level of delivered service and quality at lowest possible cost

7ContTypes of Logistics

Inbound logisticsOutbound logistics 8Inbound logistics Inbound logistics is the management of transport and storage for raw materials received by a business

9Outbound logistics Outbound logistics is the management of transport and storage for finished goods dispatched by a business.

10Inbound logistics contRaw materiallocation StorageTransportation

11Raw materialIron oreCoking coalFerrous scrapNickelManganese

12LocationFSL ware houses are located in such area which is near to the port or near to their manufacturing plant. Since there products are made of steel, they have to bear huge cost in transporting.

13StorageFSL have two warehouse for storing the raw material.

Near PortInside Manufacturing plant14Cont.Buffer stock

Fazal steel keeps buffer stock of 7days for raw materials.

15Transporatation Rafiq logistics

FSL manages its own fleet of prime movers to ensure timely devilries to its priority customers. It is ensure that apart from regular requirements of projects urgent orders are also adhered to save our customers from stop-page of work. The company has heavily invested in logistics and goes extra mile in providing this facility to the customers.

16Cont Since Fazal steel is dealing with products whose weights are in massive quantity, so the means of conveyance are also made in such a way that they are strong enough to carry it. Transport is further divided into three categories;

17Cont.LowMiddleHeavy

18Distribution strategies Distribution strategy is different for different type of customer. If a customer come who wants to get steel of worth a ton or two tons, FSL simply provide them the product without getting anything in written. But if some other customer comes and wants to purchase the products in huge quantity, FSL ask for written requirements and distribute the products as they require.19ProductsDeformed Bar ASTM 615 A Grade 60 & 40Manufacturing Size: 9mm to 43mm Round (Plain) Manufacturing Size: 9mm to 43mmCold Twisted RebarBSI 4449 & 4461Manufacturing Size: 9mm to 40mmSectional SteelSectional Steel Product for All Sections According to ASTM A36 >> Angle Iron >> Garder (I Section)

20Risk managementRisk management includes the processes of conducting risk management planning, identification, analysis, response planning, monitoring and control on a project. The objective of the risk management is to increase the probability and impact of the positive events and decrease the probability and the impact of negative events in the project.

21ContProject scope statementCost managementCommunication management planEnterprise environmental factorsTools and technique Risk probability and impact assessmentTesting22We Chase Quality & Quality Chases us23Conclusion and RecommendationFSL has a logistics company, which not only transfer FSL products and raw material but also other products / raw material like wheat, cements, stones etc. This is a good way of earning income and in this the trucks dont go empty from Islamabad to Karachi, they dont have to bear the diesel and other expenses.When it comes to risk management FSL follows all the safety measure to ensure that the health of the driver is not in danger nor there are delays in getting the goods to their destination. FSL calculates each cost that is going to occur in transporting goods, so they know what is going on currently and is it beneficial for them to take this trip or not.

24ContFSL should remove the broker from between and should get direct with the supplier this is the only way to gain cost effectiveness. Once the broker is removed FSL should appoint its 3 member quality team in South Africa who will check the quality of the raw material so the low quality raw material will not be shipped to Pakistan and will not have to bear extra shipping cost. FSL should also open their small offices every after 300 km. In this if any vehicle breaks down or the law and order situation gets out of hand, they can park their vehicle their and stay their till law and order situation calm down.

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