A leading cement manufacturer was faced with rise and volatility in the input and coal prices leading to increased cost per ton of cement.
The client engaged Tata Strategic with the objective to optimize:
- EBITDA, independent of CAPEX changes
- Procurement of coal and other raw materials
- Raw mix design and generate levers for cost optimization
Tata Strategic developed mathematical models to quantify complex manufacturing relationships and developed plant-specific simulation models to determine optimal production scenarios, optimize material mix design and procurement of coal and other materials from various sources while minimizing cost per ton of cement.
The client was able to generate various production scenarios and compare them to reach the best possible raw mix design optimizing cost per ton of cement. As a result, the client was able to achieve 5-15% cost savings across various plants/ kilns.