neil tilley tata steel - supporting the supply chain
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Supporting the Supply Chain
Neil TilleyManager, Construction Market Development
CPA Networking Forum 12th February 2013
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• Tata Steel.
• What’s our supply chain ?
• CE Marking – Supporting the supply chain in response to legislation.
• Target Zero – Supporting the supply chain to make informed decisions.
• Eurocodes and Costing – Supporting the supply chain to be economic.
• Closing remarks.
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Tata Group is one of the world’s fastest-growing and most reputable corporationsTata Group
• Tata businesses span 7 major industry sectors
• India’s largest private sector employer, with over 425,000 employees worldwide in 80 countries
• Total revenue in 2011-12: $83.3 billion
• International revenues in 2011-12: $48.3 billion
• Ranked the world’s 45th most valuable brand in 2012 at $16.34 billion
• Rated the world’s 11th most reputable company in 2009
Tata Steel, Tata Motors, Tata Consultancy Services,Tata Power, Tata Chemicals, Tata Communications,
Tata Global Beverages, Indian Hotels.
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Tata Steel Group
Tata Steel India
Tata Steel Europe
NatSteel Asia
Tata Steel Thailand
Tata Steel is present in both mature anddeveloping markets worldwide
3 steelmaking facilities11mtpa crude steel capacity16 manufacturing locations33 distribution centres
UK & Ireland
1 steelmaking facility6.9mtpa crude steel capacity6 manufacturing locations6 distribution centres
Netherlands
3 manufacturing locations2 distribution centres
USA
19 manufacturing locations13 distribution centres
Other EU
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Tata Steel in Europe Sales by market sector and products
* Via Tata Steel in Europe distribution network• Industry Strip & Industry Long include sales to General Industry, Independent
Steel Service Centres and Semi Finished sales • Other sectors includes Aerospace, Defence & Security and Shipbuilding• Packaging includes Consumer and Industrial Packaging
Market sector breakdown (% sales volume) Product breakdown (% sales volume)
4%
10%
10%
26%
18%
13%
11%
3%2%2%
1%
4%
5%
6%
6%
7%
8%
13%
9%
9%
16%
17%
Other productsRailSectionsPlateOrganic CoatedTubesRod & BarPackaging SteelCold RolledMetallic CoatedHot Rolled
• Semi Finished and Direct Rolled included within other products
Industry Strip
Construction
Automotive
Packaging
Retail*
Industry Long
Rail
Lifting & Excavating
Energy & Power
Consumer Goods
Other sectors
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Operations hubs
Our customers and markets
Tata Steel in EuropeOne integrated, customer-driven company
Supply chain
Support Functions
Sales and Marketing (sector teams/customer services)Industry
Strip & LongConstruction Lifting & Excavating
Energy & Power RailPackagingAutomotive
Long EUStrip MLE Strip UK
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Supply Chain
Client
Structural Engineer / Architect / QS / M&E
Main Contractor
Steelwork Subcontractor
Steel Stockholder
Tata Steel
Customers
Specifiers
Those who pay money for product
Those who make high value commitments / judgments
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CE Marking
• Prompted by harmonisation of the manufacturing standard EN 10025:2004.
• First steel maker in the world to gain approval to CE mark sections and plates.
• Not mandatory at the time in the UK but chose to pursue.
• Prompted branding of Advance sections and additional sections that reflected a shift in design approach.• Least weight doesn’t always mean least cost.
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CE Marking
• Specifying EN 10025 did not guarantee CE marked material.
• Devised a protocol that enabled specifies to chose a CE Marked section.
• Contact with Specifiers, Steelwork Subcontractors and Software Houses.
• Specifiers not that interested (September 2005)
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CE Marking
• BCSA started to get interested with the harmonisation of BS EN 1090-2.
• Construction Products Regulations making CE marking mandatory in the UK.
• Specifier required to state the Execution Class (BS EN 1090-2), so imperatives now on Main Contractor and Steelwork Subcontractor to comply by selection and ability.
• Several years since Tata Steel sections and plates were first CE marked. Market appear to be coming into line for greater benefit.
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Target Zero
Considered 5 Building types.
Offices,
Schools
Warehouses
Supermarkets
Mixed-use
www.targetzero.info
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Target Zero
• TZ is in part a move to understanding the governments strategy to achieve zero carbon.
• Targets were being set with little guidance of how to achieve them.
• What is zero carbon ?
• Considered the cost of achieving ‘higher’ BREEAM(2008) ratings.
• Whole life impacts – Cradle to Grave.
One Kingdom Street, base case for Offices
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Target Zero
• Some key findings.• Structure has almost no impact on
regulated carbon emissions.• Start early in the design process.• There is a cost to higher performance.• Rapid reductions in C02 via carbon
compliance but hit diminishing returns hard.
• Embodied carbon – foundations high in single storey buildings.
• Giving the supply chain the ability to make informed choices
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Eurocodes
• 1976 UK signs the Treaty of Rome.
• Removal of artificial barriers to trade.
• 30 years ago the UK started to prepare.
• 58 documents on all materials.
• “ … the biggest ever change to our structural engineering community “, Prof. D. Nethercot
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Eurocodes
• Designers concerns.• Withdrawal of British Standards.• Cost of training / loss of efficiency.• Economy of design.• Language / methodology / principles.• Software.• Where’s the guidance coming from.• All materials.• Ready for Client’s instructions.• Loss of work.
• Response from the steel sector (Tata Steel, BCSA, SCI).• Suite of design guidance.• In-house presentations.• NCCI
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Costing
• Generally based on outline design proposals.
• Initial budget estimates need to be realistic to avoid extra cost for the building as a whole and knock on effects to associated elements.• Function, sector and building height • Form, site conditions and complexity • Location, logistics and access • Programme, risk and procurement route
• Low rate per tonne does not mean low building cost.
• Price volatility effects cost, especially in today market conditions.
• Price list x 2 for fabricated steelwork was a common misconception.
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Costing
Steel Insight
Structural steelwork, October 2011.
Cost planning through design stages, Jan. 2012.
Comparative cost study - Multi-storey offices, April 2012.
Cost planning of steel-framed multi-storey buildings, July 2012
Education buildings, October 2012.
Industrial buildings, February 2013.
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Costing
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Costing
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Closing comments
• How do we deliver the standard we say we will ?• Manufacture to European standards for
technical delivery condition, rolling tolerances and dimensional properties.
• 3.1 test cert. as standard.• CE Mark. • ISO 9001 and 14001.• Published CSR and Responsible
Procurement policy. • Accreditation to BES 6001, more products
to follow.
• The supply chain must start to demand documentation and must know the implications of what they are being shown.
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Closing comments
• What are the demands being made by the specifier ?• Attitudinal Survey 2010, Most important factor – first mention
Purchaser - most important factor on cost is predictability not amount
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Closing comments
• Does supply chain support and involvement win work ?• Market share -
0102030405060708090
100
Multi-Storey Steel Single-Storey Steel
%
by
fl oo r
are
a
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Supporting the supply chain
Thank you