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Even a 20 kg steel pipe order is connected! What happened to the 100-year steel company?

The customer came to a large steel company and the order was only a 20 kg steel pipe. It sounds like a fantasy, however, the new steel will be delivered on schedule – 100 years of steel prices, what happened? China CNC machining Center | All In House Machining Service‎

A boiler factory in northern China, coming to Huangshi, Hubei Province, submitted a special order to Hubei Xinye Steel Co., Ltd.: a steel pipe weighing 20 kg. China CNC machining Center | All In House Machining Service‎

This is the smallest “private custom” order accepted by Xinye Steel in early April. This steel pipe is a component of the boiler.

For large steel companies, it is impossible to produce only 20 kg of products for customers. Today, Xinye Steel has received orders and revealed that it will combine production orders with a steel pipe with a standard of around 5 tons, which will be delivered in mid-May.

What happened to Xinye Steel after 100 years of vicissitudes? Hubei Daily’s all-media reporter went to find out.

Smart system, enter the order to know if it is profitable

Large steel companies, usually mass-produced, why does Shinji Steel have to order a steel pipe? China CNC machining Center | All In House Machining Service‎

In fact, the current Xinye Steel not only can customize a steel pipe, but also can satisfy customers with more personalized customization, and the cost is lower and the quality is more stable.

To make this almost impossible order become a reality, it is invisible informationization, and it has quietly reconstructed the “nerve center” of a steel company that has long been shown with a “hard” and “heavy” image.

Xinye Steel, whose name is “new”, is a 100-year-old company. Its predecessor, Daye Iron and Steel Works, is an important part of Qingye Yeping Coal and Iron Factory Mines Co., Ltd. Hanyeping Coal and Ironworks Mine Co., Ltd. was established in 1908 and has been established for 110 years.

In the information age, information wings are not inserted, as birds are without wings. “From a strategic perspective, the new smelting steel must be internationally advanced and first-rate in the country. To transform from a traditional production-oriented enterprise to a customer-centric service-oriented enterprise, we must promote the deep integration of the Internet, big data, and the real economy. Intelligent manufacturing is realized,” said Wu Qijun, deputy general manager of Xinye Steel. China CNC machining Center | All In House Machining Service‎

At the end of March, at the 2018 (Seventh) China Information Technology and Industrialization Development Summit Forum, Xinye Steel was awarded the “2017 China Integration and Smart Manufacturing Best Practice Award”, and Li Guozhong, the general manager of Xinye Steel, was listed in the “2017 China’s manufacturing industry promotes the integration of outstanding CEOs.”

How has new smelting steel, a century-old vicissitudes of life, brought about the deep integration of industrialization and the Internet?

This informationization revolution occurred around 2012. At that time, the financial informationization framework for the supply and sales of Xinye Steel was completed. However, because the overall information architecture has not yet been formed, it has become an island of information and it is difficult to form an information-based decision management support system.

“Specialty, refinement, and speciality” are characteristics of Xinye Steel, which often means small batches. China CNC machining Center | All In House Machining Service‎

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In 2013, the number of corporate customers surged. Faced with orders for “small batches and multiple varieties,” Xinye Steel still rely on manual reporting to process orders and coordinate supply chains. Faced with the customer’s “my product production to which step” inquiries, often need to “hear” a week, customer complaints continue.

During this period, the wave of industrialized information integration has swept the world. At the end of 2013, Xinye Steel launched an integrated information solution – an integrated information platform for production, supply and sales. Optimize all processes for production, supply and sales, and “move it” to the Internet. After each contract is entered into the system, activate the supply chain and immediately determine whether it can be profitable; customers can know the progress of the order from time to time. China CNC machining Center | All In House Machining Service‎

In 2017, the output of the company’s products increased by 30% compared to 2013, due to the fact that all information systems have become orderly. The company’s director of information technology, Bai Xianxian, said that the salesperson received the customer’s order and entered the system and could immediately receive a reply: This order can or cannot be delivered.

From 2013 to 2017, the company has invested over 100 million yuan in informationization. Wu Qijun said that in order to promote “integration of the two industries,” Xinye Steel’s investment in smart manufacturing is not limited by the annual budget, so long as it meets the normal return on investment.

Mass production, no longer contradicting “private customization”

Two years ago, the steel industry continued to slump and many companies struggled on the edge. However, Xinye Steel is not the same landscape:

In 2015, the profit margin of steel sales was 2.99%, which was 5 percentage points higher than the industry average of -2.23%. In 2017, sales revenue increased by 56.6% compared to 2016, and profit after tax increased by 40%. China CNC machining Center | All In House Machining Service‎

Behind the different landscapes are the characteristics of conventional products, high-end homogenization products, and cutting-edge high-end products. This is a large-scale production that satisfies the requirements of “private customization”. At present, Xinye Steel has 7,000 different orders each month, of which more than 60% belong to “private customization”.

“If you don’t rely on information, you can’t imagine it.” Liu Ying, head of the company’s process management section, said that relying on manual statements and information islands, the integration of orders cannot be realized. A factory salesman received an order of 20 kg. He did not know that there were 5 tons of steel pipe orders for the sales staff of Factory B, and the delivery time was almost the same. A bearing steel, this order is the European standard, that is the national standard.

Prior to informatization, Xinye Steel could not handle small orders. Liu Ying introduced that steelmaking electric furnace, a furnace of molten steel in more than 60 tons. Xinye Steel’s product line is long, with more than 800 varieties and more than 1800 specifications. It is the most special steel industry, and each breed corresponds to a standard. For a variety, even if there are 20 tons of demand, starting the electric stove will mean a loss. China CNC machining Center | All In House Machining Service‎

Order contract data is now on the unified information platform. According to a pre-established procedure, the computer merges the same type of items in accordance with the “high standard and low standard” to meet the needs of different customers “group furnace” to 60 tons, once into the furnace.

Bai Xianxian said that this is “standard + alpha”, alpha is a variable, like fish and pork, some people are spicy, some people do not eat spicy, I can first add the non-spicy part, then add chili to do Another one. For custom-made steel tubes, the different requirements of color, heat treatment, and packaging all become α variables.

Leveraging information technology, Xinye Steel’s “professional, refined, and unique” features have become increasingly clear. Nowadays, Xinye Steel produces special steel bars, special seamless steel pipes, high alloy steels, and alloy steel forgings, etc. It is not only used in automobiles and railway locomotives, but also used to be the “Temple of Heaven”, “Shenzhou” and “Temple of Heaven”. Fly to heaven. China CNC machining Center | All In House Machining Service‎

Lower costs, more stable quality

Informatization can also save money.

From 2013 to 2017, the energy cost of Xinye Steel is reduced by about 50 million yuan each year, and the contribution rate of “cooperative energy-saving” for informatization is about 30%.

In the steel industry, energy costs account for 20% to 25%. Prior to the launch of the Energy Management Control Center in 2013, energy regulation between more than a dozen branches of Xinye Steel relied mainly on telephones, and the dispatchers were aware of the situation and often the situation changed again. The information is not good. Some factories have oversupply of gas, and some lack. Moreover, the production of coke oven gas and blast furnace gas from steelmaking is difficult to be effectively utilized, and sometimes it can only be burned in vain. China CNC machining Center | All In House Machining Service‎

Bai Xianxian said that at the moment, steel production capacity and energy consumption are monitored online at any time. At 3 pm on April 9, a reporter at the center heard a computer make a “drop” sound. It turned out that this is a branch of power alarm. The staff immediately reminded the plant to control the use of electricity.

On the monitoring screen of the Metrology Center, the reporter also saw that the truck carrying iron ore was weighing. Previously, there were booths next to the scales, and one person was responsible for weighing. Now, more than 40 post positions have disappeared. Instead, 11 people are staring at computer screens in the metering center.

The cost is reduced and the quality is more stable. Liu Guanghui, the director of the Institute’s Institute for Testing and Testing, introduced that, through informationization, the system automatically collects key process parameters from the steelmaking process to the finished product, automatically analyzes and monitors in real time. If the previous process parameters fluctuate, the next process can immediately take intervention measures to ensure product quality and stability. China CNC machining Center | All In House Machining Service‎

New smelting steel that tasted the sweetness of “two blends” did not stop.

The reporter learned from the interview that Xinye Steel has identified the direction of smart manufacturing in the next three years: through the application of technologies such as the Internet of Things, mobile Internet, cloud computing, and big data, it will develop smart devices, smart factories, and smart interconnects, and build intelligence. The manufacturing system promotes the transition of the company to digital, network, and intelligence. Li Guozhong, general manager of the company, said that it will increase efficiency through smart manufacturing and let Xinye Steel’s high-quality development road go further and wider.China CNC machining Center | All In House Machining Service‎

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