To reduce the cost of a product, it should be noted that this varies for each unit depending on the type of technology, plant, process and type of product. But overall, every industry unit has to work on a few key parameters to reduce costs: manpower efficiency, productivity of machinery and equipment, productivity of resources and land productivity, and facilities are among the parameters that can each be cost-effective. Be effective. The same is true in the steel industry.
When it comes to manpower productivity, each person produces several kilograms of steel for one month. Machinery efficiency also means that the efficiency of the plant from inputs to outputs is a few percent, and a few percent of these materials go elsewhere.
But productivity of financial resources is another important factor. Financing in diverse and optimal ways at attractive rates is crucial. In the meantime, some receive high-rate facilities that will certainly have a negative impact on the finished price and require proper management.
Plant layout efficiency is one of the most important and effective parameters in the finished price. In fact, transporting raw material or product from one factory to another can cost a great deal of transportation per ton of production. Therefore, the lower the displacement, the lower the resulting cost.
As one of the most important parameters in cost reduction, we can mention the capacity of the factory because a factory with a capacity of 4,000 tons or 2 million tons to produce equipment such as railway network, electricity, gas, water supply, treatment plant and Road needs.
I think special attention should be paid to reducing the cost of steel. Capacity should be optimized For example, if there is a region where the tensile capacity of a product can be absorbed in a particular tonnage, where can the surplus of this product be sent? In fact, selecting and locating the plant at a good point can solve many of the following production problems. Unfortunately, at present, steel plants in the country cannot operate on a large scale for a variety of reasons, so they produce their products at a smaller capacity, which will result in higher costs and cannot compete globally.
Therefore, the main proposal of the association to reduce the cost of steel production is to form a multi-stakeholder group and a consortium and to create a large rolling mill on a global scale.
