3. – Costs Reduction – Optimization of the Technical Processes

Reduction the Raw Material Cost

  • Optimization of the raw material loading mix.

  • Purchase of raw material in emerging countries and in steel mills for large volumes, and in service centers for specific needs.

  • Savings of up to 30% between both actions.
   
Lower the cost of consumables

  • Changes in technical processes that extend the life of tools and consumables.

  • Control of inventories of consumables and spare parts. Setting a target in volume and in rotation days.
   
Decrease in energy consumption

  • Improve the consumption of the large consumers in the factory.

  • Optimization of electricity and gas electricity contracts.

  • 15% decrease in the cost of gas, due to improvement of temperature curves in heating furnaces.
   
Reduction of waste

  • Elimination of losses, surpluses, rework, excess thickness, excess length, etc. (not charged to the client).

  • Reduction obtained: from 20% in 2017 to 17.7% in 2018.
Next strategy (Nr.4) -> it is accessed by clicking on the title.
Introduction -> it is accessed by clicking on the word.

Cash, Treasury and Inventories Management

4

Introduction