MANAGEMENT OF TECHNOLOGICAL AND ORGANIZATIONAL DEVELOPMENT IN RESEARCH AND INDUSTRIAL ENTERPRISE "ELECTROTERMIA"

Vassil Peev and Georey Kiossev RIE "Electrotermia"

Sofia, Bulgaria

The world steel production in 1985 was 634 million tons, including 156 million tons electric steel, and a 4% increase over 1984. The forecasts for 1986-90 are to keep the total output stable, but with electric steel increasing annually by 1-1.5%.

Seen against the background of the decreasing or stagnation of total steel output (see Figure I), the continuous increase of electric steel output and its share of the total is impressive

(see Figure 2). This is due to indisputable advantages of the electric arc furnaces regarding production dynamics, capacity to obtain high quality metal, rapid technological development, pro- ductivity and level of automatization and computer management, all at the highest level in metallurgy.

The good prospects outlined of electric steel productive give management an opportunity to approach with optimism the planning of development activity aimed at market enlargement for new pro- ducts and technologies. This is a premise for the technical progress in electric steel production.

Graphite electrode costs are one of the essential elements in the working cost of electric steel. They make up 15-20% of direct operational costs. Their decrease is the long-term goal of our enterprise. An object of this report is the management of this process, its market realization and clarifying the prospects for its development.

The electrode consumption is presented in kilograms of gra- phite per ton of steel produced. In technological aspects (see Figure 3), it consists of four components:

*

tip consumption

*

^{stub loss}

*

side oxidation

*

^breakage

The first two are called "technological" by steel producers.

They are constant and can be related to the operational parameters of the furnaces. Stub losses and breakages are accidental and to a great extent determined by the skill of the staff and the exper-

tise in choosing electrode quality and diameter. Many researches confirmed that tip consumption is a function of the operational current and normally is fixed in the project for the power perfor- mance of the furnace. Side oxidation consumption varies for

different furnaces from 30 to 70% of the total. Our investiga- tions showed the side oxidation rate varies along the electrode column from 1.5 to 7.2 kg/mz/h.

In the electric arc furnaces, the electrodes operate at surface temperatures from 1500 to 2100'C.

The technological analysis of every kind of consumption shows that, with the exception of the side oxidation, they are in-

evitable and it is impossible to influence or reduce them. The side oxidation is useless due to a disadvantage of carbon to oxidize easily over 600'C. That is why 40 years ago, technolo- gists began to look for ways to reduce side oxidation.

In the 1950's, chemists created materials resistant to 1700- 2000'C. They conducted many tests with these new materials as protective coating to preserve the electrodes from side oxidation.

They used metal powder, calcium carbide, quartz, etc. and tried iron chloride and manganese chloride as well. Because of dif- ferences between thermal expansion coefficients of the electrode and the coating, it cracked and fell down. It is proposed to fit a metal net on the electrode and to fill it with a protective material. But all attempts were futile. The statement of Glater, pronounced in 1957 at a congress of electric arc furnaces, is very interesting: "the graphite electrodes consumption demon- strates the importance of the surface losses and gets conclusion that a method of surface oxidation reduction will be very valu- able. The researches are performed in laboratories and their end is visible."

What Glater expected was rather optimistic. The protective coating appeared much later and was based on principles 1-ery different from those tested.

The three Bulgarian protective coatings were created during the period 1958-1972. In 1972, FOSECO produced non-conductive protective coatings which are deposited under the contact of the electrode column with the current clamp. They have a limited application.

After 40 years of attempts, during the period 1980-1986, many research studies and industrial trials were carried out with so- called combined electrodes, a combination of a water-cooled metal electrode and a graphite one (the last one only is consumable).

Such electrodes were developed by the firms CONRADTY and KORF in the Federal Republic of Germany, STELKO in Canada, etc. After many industrial tests, this technology turned out not to be com- petitive.

The basic reason the coating was rejected by the market was that the researchers had on the way to high melting coatings. As we pointed out, they do not have good prospects due to the great

difference of their linear expansion coefficient regarding gra- phite, which is very low (longitudinal 1.5 x 10-6'C; transverse 2.5 x 10-6.C).

The basic conception of our research group, headed by Prof.

Dr. Al. Valchev, is that the coating must have at least one lou melting layer (melting point under 700°C), which must smelt before the intensive graphite oxidation and perform its protective func- tions in a melted state.

During long-term laboratory and industrial research studies, three kinds of coatings were created, representing three stages of development before market realization.

1. Coating of silicon carbide and BzO3 (1958-60): It has a perfect impermeability, but low thermal resistance, up to

1500'C. It is also an isolator. But it was used on small furnaces (4 tons) during 1960-62.

2. Coating of Sic and Al: Taking into account the mentioned disadvantages, the low temperature BzO3 was shifted by alu- minum. The resulting coating increased its resistance up to

1850'C and became current-conductive. In line uith good technological qualities, its disadvantage was the complicated operational technology, demanding highly skilled staff. The coating was used in the works where it was created during 1962-64. But this disadvantage banned its market realiza- tion, and that is why intensive investigations continued in this direction.

3. Aluminum alloy coating: Based on collected experience and after many laboratory and industrial trials during 1967-70, aluminum alloy was created with Si, Sic, Ti and B , possessing all qualities required for stable industrial operation.

In this stage, the protective coating had gone far beyond the works of its creation. Following this technology in 1970, units for protected electrodes were built up in the Iron and Steel Works L. Breznev, Bulgaria and the British Steel Corporation, United Kingdom.

Regardless of its qualities, this coating finds a limited application. The basic limiting condition is the high investment cost. During 1970-74, a favorable factor appeared in the interna- tional conjuncture. The price of graphite electrode rose sharply

(as an petroleum product in parallel with oil prices) from 250 pounds/ton in 1972 to 900 pounds/ton in 1977. The graphite price movement is shown in Figure 4. This increase the customers' interest in our product and made a market break-through easy.

In the 1980's, however, unfavorable factors appeared for the market realization of the coating. These included the replacement

of part of the refractory for electric arc furnaces with water- cooled panels. The furnace height was reduced, the power schedule changed, SO the electrode consumption was greatly reduced. More- over, electric steel producers turned to two-stage operation as the furnace performed only scrap melting and the refining is realized in a ladle-unit. This changed the rules of electrode consumption with an unfavorable influence on the economic effect of the coating.

To overcome such factors, the enterprise is working in two ways :

1. Perfecting and increasing equipment productivity for produc- ing the coating and

2. Creating new coatings of higher quality.

Our activity on point 1 can be seen from the development of the equipment. In general, the classic scheme from production creation to market break-through is well kept:

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During 1958-70, we operated with primitive equipment demand- ing low investment and much manual labor.

*

During 1970-74, we moved to a conveyor line with every tech- nological operation begin done by a separate machine. Manual labor is minimized, but with increased investment.

*

In 1974, research groups, headed by Senior Scientist Vassil Peev, created an universal machine MNE accomplishing all operations with a high level of automatization. During 1975-85, the machine is continuously improved, up to the last model MNE 06M.

*

In 1988, we expect to start a computer-managed machine.

On point 2, after long investigations, a new coating has been tested on the furnaces at the Iron and Steel Works L. Breznev.

The new product is based on a nickel-iron alloy of aluminum and is expected to appear on the market in the second half of 1987.

The new coating ensure a 60% higher effectiveness, and we hope to overcome the market fluctuation of the 1980's.

During the development of the technology to produce protec- tive coatings and the use of protected electrodes, we gathered important experience on some details that were then developed as separate technologies. They are as follows:

1. We utilized the experience from the electric arc treatment to develop direct current heating in metallurgy. This re- sulted in the creation of a ladle-furnace unit with direct current having important metallurgical applications.

2. Relating to the coating, we accomplished improved construc- tion elements for current contact clamps for electric fur- naces. For this, our enterprise has a good market among steel producers.

3. Regarding the normal operation of the contact between pro- tected electrode and contact clamp, we created an "air cush- ion" sealing device to have the furnace gas exit through electrode holes. This resolves environmental problems in steel plants, and steel producers are very interested in this product. "Electrotermia" has gone on the market.

4. We produce by-products of waste electrodes on a large-scale for the market.

ORGANIZATIONAL FRAMEWORK FOR THE TECHNOLOGICAL DEVELOPMENT OF THE INVENTION

The research work to create protective coating began in 1958. A small laboratory, consisting of one engineer and three technicians and headed by Eng. Al. Valchev, was organized in the Iron and Steel Works Lenin-Pernik. After the first coating K a s

developed, a pilot plant with 4 workers was formed for the ex- perimental production of coatings.

After one successful testing and commissioning, the group enlarged its operation on the frame of the entire steel industry and covered also the foundries in the machine construction in- dustry. For this goal in 1970, a management decision was made to form a "Protective Coating Department" at the Iron and Steel Research Institute, Sofia, consisting of 4 engineers and ⁸ tech- nicians. A production plant for coated electrodes was built up in the L. Breznev works. Its intention was to cover the entire Bulgarian market and to produce coated electrodes for industrial tests to realize them on the international market. As the depart- ment's activities enlarged in many branches (technology, electri- city, machine construction, industrial production, and foreign trade), a natural need arose to form an independent organization, and in 1975, the Research and Industrial Enterprise "Electroter- mia" was created. It accomplishes:

Training of the staff to serve the coating introduction in steel works,

Complementary specialized activities.

The trade activity is performed by a specialized trade or- ganization for license deals on a commission basis. The invention break-through on the international market is being done under conditions of competition with large companies-producers of elec- trodes. We have to consider our foreign trade policy and techni- cal issues in view of this situation. That is why they both act as a self-formed engineering organization; although formed by two enterprises, it works in common on the specific conditions of the international market.

The invention realization is done principally by license sales of the method and by equipment delivery for protective

coatings. Chronologically, the invention has been realized abroad as follows:

In our case, it can be described by performance as the Bul- garian production of coated electrodes domestically (see Figure 5) and abroad (Figure 6 ) as well as by the effectiveness of the market realization (see Figure 7).

It can be seen that in general the market penetration follows the S-curve. If we look at Figure 5 for Bulgarian production, we shall see only the initial trend of the stages "introduction" and

"growth." But this is a totally covered market, and every elec- tric steel plant is included immediately as that is determined by the central planning of the national economy.

For the world market (see Figure 6), we expect the aluminum- silicon coating to reach the saturation phase in 1988. Simul- taneously, the development of the new iron-nickel-aluminum coating begins. Taking into account its greater efficiency and the well- treated market for coated electrodes, we expect to shorten the phase of rapid growth and to reach saturation in 1996. So we now have a double S-curve for the relative effectiveness, as the second one is forecast for the new product (see Figure 7).

If the expertise establishes that the aluminum matrix has ex- hausted its potential, we are planning to search for new ways and methods to create products capable of staying on the market.

Fig.

1

Total world s t e e l production.

Fig. 2 Electric steel world production

Fig.

3The four most important components of 'electrode consumption.

alTip consumption clStub loss

blSide oxidation d)Top joint breakage

Fig. 4 Graphite electrodes price in english p o u n d d t o n

Fig. 5

Coated electrodes production

in

Bulgaria.

Fig. 6 World production o f coated eiectrodes.

Fig.7 Relative effectiveness of market

realization of t h e profective coating, ^O/O

2.7. SESSION TWO DISCUSSION (Excerpts)

Ayres: The latter part of Prof. Goldberg's talk was focusing fairly strongly on the uses of technological forecasting, although he did not use that phrase. I am reminded of the recent book, which perhaps you have seen, called Innovation:

The Attacker's Advantage. This book contains many examples of the benefits of guessing right as to when a new technol- ogy is ready for adoption and when the old technology is reaching its saturation or its mature phase. However, the methodology of actually determining this is relegated to an appendix and very little is said about it. In the case of the steel industry, are you aware of any formal efforts to forecast steel production technologies, to compile measures of efficiency and forecast them?

Goldberg: Yes, a number of such efforts have been done. Prof.

Acs could be most capable in giving you some and as could Dr. Anderson or Prof. Rosegger. There are a certain number of things, for example, many prototypes and developments are being practiced. The GDR has been pioneering, as Sweden has been, with slightly different technologies in plasma steel- making. In the GDR, there is a plasma steel plant in opera- tion in a Socialist country, which would nullify any preju- dice against this type of technology in an old, maturing industry in Socialist countries. In Sweden, there are three different approaches, which means the standard for the in- dustry has not been shaken out yet. But this is definitely one methodology which is forthcoming, and you should not forget the electro as you saw in Dr. Nakicenovic's tables yesterday. The electro steel is not new. but it has under- gone many drastic improvements over the last years, and it is the fastest growing new technology which is coming forth.

Anderson: I think your question is really the old exercise. I think the United Nations had years ago a conference in Warsaw where they tried that. We have tried that among the members of the International Iron and Steel Institute, where we ask what they think will be the main processes for steel-making in year 2000, 2050, in a sort of Delphi exercise. It does not work. I find that the steel engineers are perhaps more conservative than others. In fact, if I ask them and I have to make studies on future raw materials requirements, I am entirely dependent on the vision of what the shelf electric furnaces and DRI and blast furnaces will be. Even over the normal planning horizon in the steel industry, which is between 5 and 1 5 years, depending on the country, I do not get a clear answer. It is very difficult to get some com-

petent people to express a view and really make some tech- nological forecasting in the sense that you are looking for.

Danielsson: I was involved in the development of the Caldo pro- cess, and everybody remembers some of this. It is a rotating vessel. As you all know, it was a failure. So why? I was coming to some conclusion that leads into what you said. We had a very good starting point. We had a market demand for better steel. The basic Bessemer, which was dominating at this plant at that time, was not good enough, too much nitro- gen, too much phosphates. We needed low cost. We took the liquid steel from one vessel to another. We had a problem with the environment of course. We wanted to use the high phosphorus ore available in that place.

So all of this resulted in the Chief Executive Officer of the company being very interested, the Chief Operating Officer of steel was very positive, and we had a fellow called Calding, who was the inventor of this. "Caldo" stands for Calding and Donner. So we got a process, Calding heated up those rotating things, and we had money. This is important. We had made a lot of preliminary experiments, started on a small scale, and so on, and developed the whole thing. Why did it become then a failure? First of all, the cost was too high. It did not give better steel or gave just as good steel as open-hearth. It was too hot, I would say. Second- ly, we did not take a multiple view. If we had investigated what would be the future of iron ore, for example, we could have known at that time that phosphorus ore is out.

Ballance: I was interested in Prof. Coldberg's orientation. I know at least from the U.S. steel industry that the attitude of management until fairly recently has been: "We make the steel, you make the cars, leave us alone and we will do our business." That of course is changing to some extent now, partially because of Japanese ownership as well as the crisis itself. But I think that if we think about it in the context of a life cycle, steel firms have passed through a crisis.

In terms of life cycle, the embryonic stage is equally a crisis in any industry. The percentage of failures is going to be very high. Looking at other industries, not being particularly a steel economist, I see that some of the domi- nant characteristics in the embryonic stage are a large activity of inter-firm collaboration. Vendors may coalesce for an installation in the case of automated equipment and immediately disperse. This type of collaboration is repeated from time to time. The limited literature I have seen on the earlier years of BOF suggest that there might have been

similar instances in that case, albeit often personal con- tacts. When we document or attempt to document the life cycle in other industries, we often look at that.

One question I have is: Is such a procedure practical or would it be relevant in the case of steel, various steel technologies? Could it give us a more definitive history of the life cycle, if practical? Another dimension, I think, is the role of government procurement. At least in the

One question I have is: Is such a procedure practical or would it be relevant in the case of steel, various steel technologies? Could it give us a more definitive history of the life cycle, if practical? Another dimension, I think, is the role of government procurement. At least in the

Im Dokument Life Cycle Concept and Management Practice in Industry (Seite 134-162)