AXIOM: Built Around the Real World Issues of Metals Production and Processing

Many of the unique aspects of the metals industry stem from the fact that every heat or lot of a given metallurgical grade is different. Each heat has somewhat different actual quality i.e., chemical and physical properties that must be taken into consideration when they are used to make end products.

Because all material has the chemical and physical properties of the heat or lot from which it is made, and also has additional mechanical and dimensional properties coming from how it is processed, it cannot be fully identified by just a part number or material code. The attributes required to identify material are different for different types of items (e.g., grade, gauge, & width for a coil vs. OD, wall, & length for a tube). The actual characteristics must be known for each item through all levels of production from heat to finished product.

Whether its steel, aluminum, copper or specialty alloys, AXIOM ERP supports companies at all stages of metals production and processing.

Because of variations, inventory is tracked at the tag level (i.e., coil ID, slab #, billet #, spool #, bundle #, etc.). Quantity, properties, dimensions, and inventory location can be different for each tag.

Because of variations, material is applied to orders based on actual properties. Applicators must identify and reserve available material with the right combination of properties to conform to the specifications for each order (e.g., the chemical and physical properties of the rod used to make wire must match the customer’s specifications for that product).

Material can be reapplied from in-process orders and Q.C. hold status to other in-process orders with different specifications. The chain of property contribution must be maintained to provide product quality certification and conformance to specifications.

The process/practice can be altered to produce a desired product based on the material that is applied. Alternate starting sizes can be used with additional operations (e.g., slit, roll pass, draw, blank, etc.). Certain properties can be adjusted by additional process steps (e.g., heat treatment or annealing).

Material must be tested at various stages throughout the production process and certified test results are often required by customers. Process and environmental data must also be continuously collected for process control and process improvement. Traceability must be maintained from the original heat and casting to the end product shipped to the customer.

A given item may be sold or purchased in any one of several units of measure (e.g., lbs or kg, feet or meters, sqft or sqm). Production, however, may be scheduled and reported in a different unit of measure, so the various order quantities need to be converted for production’s use and then converted back again for shipment.

In purchasing, manufacturing, and selling, exact planned order quantities are virtually never realized. Shipment or receipt of a quantity that is slightly more or less than the order quantity is a normal practice. Customers often specify quantity tolerances that are acceptable to them.

All metals companies are capital intensive and must effectively utilize their capital equipment in order to be profitable. Because of this, scheduling is driven by numerous factors in addition to customer request dates. In order to minimize downtime due to setups, most metals processors sequence production by either the attributes of the material being produced (e.g., grade, width, shape, thickness, diameter, etc.), and/or by the attributes of the material it is being produced from (e.g., starting thickness vs. ending thickness). Many mills also schedule around their biggest bottleneck (e.g., melt shop, rolling mill, annealing furnace, etc). In some cases, a standard production cycle of related products is scheduled in advance and customer orders are booked against that schedule. This is often called a cycle schedule, rolling schedule, or campaign.

Because the material being shipped or received is typically of considerable size and/or weight: loading/unloading capacity is limited, freight costs are significant, and shipping mistakes can be costly. Efficient carrier scheduling and proper loading are crucial to both customer service and overall profitability.