Operations management analysis of DUBAL
1 like1,135 views
Dubai Aluminum Company (DUBAL) is the largest aluminum producer in the Middle East. It has a workforce of 4000 and produces aluminum through three main forms: foundry alloy, extrusion-billet, and high purity aluminum. DUBAL's operations strategy is derived from its vision to provide high quality sustainable materials and is supported by continuous improvement, innovation, productivity, minimizing environmental impact, and energy efficiency. The strategy effectively manages suppliers, manufacturing, sales, customers, inventory, and information. However, suggestions for improvement include sourcing from alternative suppliers due to rising carbon taxes, expanding to new markets, and continuing technology development. The future sustainability of the strategy relies on long-term partnerships, financial returns
Operations management analysis of DUBAL
- 1. Evaluation of Operations Strategy of Dubai Aluminum Company Ltd (DUBAL) Task 2 – Operations Management (EDIBM) Presented by: Harinda Weerasinghe Murthy Ranjit Murthy Muhammad Shabeen Charitha Anushka Yogeshwaran Selvarajah Deeptha Kalana
- 2. Overview of DUBAL Dubai Aluminium Company (Dubal), is the largest aluminium producer in the Middle East and it merged with Emirates Aluminium in 2015 to create Emirates Global Aluminium, the world's fifth-largest aluminium company with an enterprise value of about $15 billion. The Company was formed in 1975, and by now is the UAEs industrial flagship which employs a workforce of around 4000 skilled personal and representing 7% of country’s GDP. DUBAL’S core activity is production of Aluminum in three major forms which are; Foundry Alloy for automotive applications Extrusion-Billet for construction, industrial and transportation purposes. High Purity Aluminum for Electronics and Aerospace industries. The Company’s operations are based in Jebel Ali, supported by a Primary Aluminum Smelter, 2335 Megawatt Power Plant, Storage/Warehouse and other related facilities. DUBAL satisfies over 50% of demand for Aluminum in UAE Market, and also some 300 customers in 45 countries which represent 5% of Global Demand.
- 3. DUBAL’s CURRENT OPERATIONS STRATERGY The Company’s Operations Strategy and plan is derived from its Corporate Vision/mission which is to: “Provide the Global Economy with High Quality and Sustainable Material” & is also supported by the following self-imposed standards: Quest for Continues Improvement. Ongoing Innovation. Enhanced Productivity. Minimum Operational impact on the environment. Enhanced Energy efficiency. Green Supply Chain Principles.
- 4. DUBAL’s Current Operation Strategy - Material Strategic (Core) Materials • Alumina • CP Coke • Liquid Pitch • Backed Anodes •Aluminum Fluoride • Pot lining Material • Process Materials • Refractory Items General Materials • Major equipment spares • Mechanical equipment spares •Electrical spare •Power & Desalination spares •General Materials Suppliers/Supplies Supply Warehouse Material to Plant DUBAL Berth Jebal Ali Port
- 5. DUBAL’s Current Operation Strategy - Manufacturing Information Strategic material From warehouse Manufacturing Plant Carbon Plant 7 Pot lines 1573 reduction cells 3 cast houses Dross Plant Carbon Anodes Recycle Metal Dross Crucible Information Extrusion Billets Standard Ingots T.Shape Ingots Small Ingots Stores External Customers Power Plant 2350 MW 23 Gas Turbines 7 Steam Turbines Power Power Power Power Desalination Plant Waste Energy Potable Water Sea Water General Material From & To Supplies Potable Water From & To Sales/Distribution To Carbon Plant & Pot Lines To Carbon Plant , Pot Lines, Dross Plant& Cast Houses From warehouse PowerPower
- 6. DUBAL’s Current Operation Strategy– Sales & Distribution Finished Product from Plant DUBAL Storage Facility Customer Base Asia (44%) Europe (23%) GCC/Mena (21%) Americas(12%) Information from Supply & Manufacturing Information from Regional Sales offices/Representatives
- 7. Evaluation of Effectiveness of Current Strategy Suppliers Worldwide Suppliers of materials Long term relationship positioning DUBAL as Customer of Choice On time payment to Suppliers & dedicated process for the same. Diversified Industry Standard Suppliers – Supported by Formal long/medium/short term Contract Agreements. Company is able to have Competitive Cost Advantage while enjoying uninterrupted supply of raw material JIT The Right Materials at the Right Time in the Right Quantity of the Right Quality at the Right Price and from the Right Source TQM Applies latest Reduction Cell technologies such as D18+ and DX+ Ultra on Plotline Operations, which reduces emission of greenhouse gases. Applies state-of-the-art, Logic Control-Pot Control System to control and monitor a group of pots in a Pot line Most Technologies have been developed in house through R & D initiatives. Finished products undergo multiple quality checks before reaching Stores.
- 8. Evaluation of Effectiveness of Current Strategy Water Self Sufficient water supply met through processes of on-site Desalination plant Not dependent on Ground water; Sea water pumping though multi-stage filtration system Strategy for reducing water consumption & Recycling water Transportation & Logistics Negotiations maintained with major shipping lines to obtain best freight rates and alternative supply. Air Freight & Land transportation managed by third party providers with Government support Effective management of logistics at the Warehouse to ensure smooth movement inwards & outwards All shipments of raw material are closely monitored for timely delivery avoiding additional costs such as demurrage. Close coordination maintained with plant for timely delivery of material needed.
- 9. Evaluation of Effectiveness of Current Strategy Energy Self Sufficient power production, based on purchased pipeline natural gas Additional power from Jabal Ali power plant Optimized Energy consumption strategy using DX Cell reduction Technology Customers Relationships strengthened by dedicated regional sales personal stationed worldwide. Response to customer complaints within 24 hrs Talor made/Customized solutions are offered. Technical support provided to customers in accessing their individual requirements. Consultations by Technical Experts offered to customers in improving their operations /plant start- ups. Marketing Sales & Marketing are done thru EMAL which has support from the GCC Aluminium committee & the Government. So, good customer reach. Collaboration with EMAL working well to expand to new markets and acquire new customers All Marketing communications are grounded in Equity, honesty & Cultural sensitivity
- 10. Evaluation of Effectiveness of Current Strategy Inventory management DUBAL believes in successful contract & supplier management with strong purchasing strategies for stringent inventory control. DUBAL Warehouse operations comprises of 2 main & 4 satellite warehouses for storage & effective management of the Inventory DUBAL uses latest technology to manage the inventory control at the management agreed optimal levels Effective Cataloguing is done to maintain the integrity & quality of the Inventory Information management Constant tracking and analysis of commodity prices, market conditions and competitor performance for timely anticipating of operational changes. Integrated systems with customer/supplier portals for allowing access to track supplies and orders. Real-time information on production components for detection of possible malfunctions in advance. Transparent Information handling policy, beneficial for overall efficiency. Employees Supply Chain is managed by 125 Professionals with expertise in related fields who are deployed at relevant departments across the operational design. Employees at all levels are trained on cross-functional operational aspects. Free voice to employees is a part of DUBAL’s ethos & integrity to its employees. DUBAL has a in-house Employee management program for developing talent.
- 11. Tools currently used for Operations Strategy MRP Warehouse Inventory Control (MRP) system based on bar cording technique which can be accessed from hand held appliances. Problem Solving DUBAL uses Six Sigma (LSS) principles for problem- solving. Balanced Score-card Helped in optimizing certain areas like Energy Saving, Power consumption
- 12. Suggestions for Improvement Practices to be continued ..... No Change The company has been awarded with the following Certifications such as ISO 9001, ISO 14001, ISO/TS 16949, OHSAS 18001, ISO/IEC 27001, ISO/IEC 20000, ISO 50001, ISO 22301, ISO/IEC 17020, ISO 29990. These pertain to Quality Management, Environmental, Health & Safety, Technical Specifications and Energy Management standards All systems are contributing fairly on minimizing cost adding time. Supply Chain can be considered as Responsive and Reliable. It can be concluded that there is a perfect connection between the Operations Strategy and actual Operations therefore recommended to continue with same.
- 13. Suggestions for Improvement Areas of improvement ….. Change Needed Climate Change is making Carbon taxes levied in some countries which have suppliers for DUBAL. This could impact the price of raw materials. So DUBAL needs to source alternative suppliers. Recommend to have tie-ups with leading software companies in view of obtaining dedicated IT solutions, rather than attempting to develop their own. In view of acquiring best talent, recommend to implement recruiting Top Ranking Engineering students from UAE Based Universities. In Early 2000 DUBAL’s market share was above 65% in UAE market and today it has dropped to 50 %, as the 15% is fulfilled by Chinese and Indian Products –this could be avoided with more market penetration & competitive pricing strategies. In order to diversify the market DUBAL, can expand its market presence in emerging markets(Sri Lanka, South East Asia ) DUBAL should continue to look for developing Technologies and applications related to its Manufacturing of Aluminium
- 14. Future Sustainability of the Strategy Future Sustainability of current operational strategy is assured by Mutually beneficial Partnership based long term relationship with suppliers and customers. Guaranteed Financial Returns for the stake holders which encourage continuous investment. Contribution to the country’s economic system in terms of productivity growth and employment. Minimal impact on environment by effective management of Gas emissions, Waste; Zero waste to landfill; recycling; Shipping of waste Effective contribution to social system in working closely with communities in fulfilling organizations CSR, whereby in return the business is viewed as an asset of the country. More effective Waste minimization and elimination techniques – Recycling within the region, Secondary aluminium production Plant etc
- 15. Sources & References Building a Sustainability business at DUBAL, Report by DUBAL. DUBAL Corporate Review 2008/2009– Growing Stronger together by DUBAL. DUBAL Sustainability report, 2010-2012 by DUBAL. DUBAL Sustainability report, 2008-2009 by DUBAL. Technology and innovation at Emirates Global Aluminium (EGA) by Ali Al Zarouni Balanced Score card to create a strategy focused organizational at DUBAL by Barathan Viswanathan, Philip Thomas, Anantharaman Pichai, Nasser Khan DUBAL & EGA Websites National Online Business news articles on EGA & DUBAL