Presented By:

Braulio Escobar, Jim Beidleman, Dave Taucher, Joseph Kaminski

ArcelorMittal Design Project

Project Background

Project Objectives

Information

Design Process

Our Design

Conclusion

Table of Contents

Project Background Large Steel Company with Extensive client base

Facing large problem with disorganized and mislabeled scrap coming in

Causing off heats and affecting quality of their product

Creates dissatisfied clients

Currently correcting the heats one batch at a time Do so by adding in pure alloys

Chromium cost $32 for every 100g Manganese cost $6.50 for every 100g Aluminum cost $15.72 for every 100g

Expensive Time consuming

Would like a system created to mitigate these issues

Would like for the material to be organized before entering their facilities

The problem requires us to look at the big picture

Cooperation between large entities (i.e. auto manufacturers, scrappers, etc.)

Gathering Information

The recycled steel is creating issues

Unfeasible to exclude scrap metal from the solution

Too costly to make steel solely from scratch

Will be impossible eventually Expanding countries of China and India Limited resources Inflation & exorbitant prices

Effectively use scrap to sustain steel making into the future “Cradle-to-Cradle”

Gathering Information

Identify Problem

Find The Needs

Identify Effective Solution

Analyze Effectiveness Of Solution

Objectives

Several Problems:Issue of OrganizationIssue of Effective StorageIssue of Multiple Entities Cooperating

Faced with a Problem

Efficient Cost Time Space

Within ArcelorMittal’s tolerances

Appropriate Incentives

Sustainable

Organized

Attributes

Weighted Objective Tree

Steel Recycling Process 1/1

Efficiency .5/.5

Sustainable .5/.5

Cost .5/.25

Time .5/.25

Organized .33/.17

Appropriate Incentives .33/.17

Cost to Benefit Ratio .8/.2

Cheap .2/.05

Area of Operation .33/.17

Entities 1/.33

Metal Recognition ..5/.09

Beneficial for all entities .5/.09

Scrapyard

Transportation

Mutual Gains .5/.09

Storage .5/.09

Efficient Process

Sustainable Incentives that propagate the process and

can be maintained into the foreseeable future of all entities involved

Process that can be maintained without exorbitant operational costs

Space Efficient

ArcelorMittal does not separate the steel on site

Specifications

Our designMeans/Functions 1 2 3

Organization Method

By Size By Composition By Density

Metal Recognition Coding Chemical Process

Magnetic Process

Transportation Train Trucks Barges

Primary Organizational Entity

Scrapyard Outside Contractor

ArcelorMittal

A: By size/ chemical process/ Barges/ ArcelorMittalB: By composition/ coding/ train/ scrapyardC: By density/ Magnetic process/ trucking/ scrapyard

Constraints/Objectives

Weight % A B C

C: Cost Effective X C: Time Effective C: Organized C: No ArcelorMittal Involvement

O: Efficiency 50 .8/5040%

.4/5020%

O: Sustainable 50 .7/5035%

.6/5030%

Totals 75% 50%

Produce manuals to be sold to scrap companies

These manuals identify types

of metal used in product

Identify where metals are in product

IncentiveThis would provide new

incomeHelp with quality of steel

arriving at their plants

Manufacturers

Would Purchase manuals from Manufactures

More Specific in scrap process

Scrappers

Incentives Increased payment from ArcelorMittal for properly

separated steel

Pays higher fees for the recycled steel imported into their plants

Needs to establish better and more frequent communication between themselves, manufacturers, and the scrappers

Incentives Less need for raw materials like pure

carbon etc.Less expensive with more effective use

of recycled material

ArcelorMittal

Builds on ArcelorMittal’s already established specs

Provides incentives for scrappers to meet their specs fully

Utilizes the cradle-to-cradle concept better

Less cost for raw materials

Possibly reduced mining

Help reach a shrinking state of new steel production

Benefits

Our Solution

Effectively implement appropriate incentivesCan be sustained into the foreseeable future Utilizes almost all of existing infrastructure

therefore efficient process

Conclusion

ArcelorMittal

Schnitzer Scrapping

Chemicool

Steel.org

Ted Frick PhD Chemistry (U.S. Steel)

Acknowledgements