LogOS – Logistics simulation of surface finishing at Salzgitter Flachstahl GmbH

Client: Salzgitter Flachstahl GmbH

Duration: From 2018 to 2022


Project Description

Surface finishing is the final step in the production of flat steel in integrated steel mills. Due to its position in the supply chain, many product variants are processed here. This is accompanied by a wide range of logistics activities using a wide variety of means of transport. Gantry cranes, driverless transport systems, trucks, trains and other means of transport move steel coils from incoming goods to their loading via dozens of production routes. Both the design and the control of such a logistics system is therefore complex. The aim of this project is to enable methodical decision support for various questions within surface finishing. The decision support should be used for operative questions such as warehousing as well as for strategic decisions such as the investment in new production facilities. For this a detailed simulation concept is created, which simulates all logistic processes as detailed as possible. The basis for evaluating design and control options is a business accounting model integrated into the simulation.




Project Partners

  • Cooperation partners: Salzgitter Flachstahl GmbH - Controlling


Initial Situation and Problem

Bottlenecks in existing logistics are to be expected as a result of the installation of a new surface finishing production facility. In order to avoid these bottlenecks, new solution options are required for the design, evaluation and control of the logistics system. The possible logistics options are often evaluated with the help of discrete-event simulations. To this end, reality is usually simplified as much as possible within the framework of modelling, but only to the extent that all parameters relevant for valuation are taken into account.

However, due to the many dependencies between the logistics elements, in this case it is not clear which measures best resolve the bottlenecks. Operational adjustments as well as tactical and strategic measures are possible. For this reason, it is necessary to create such a detailed simulation model that evaluates the effects of operational, tactical and strategic decisions on various key performance indicators. In the simulation model, reality is mapped in as much detail as possible. This detailed model will be used after the construction of the new plant to answer further questions in surface refinement.


Objective and Approach

The aim is therefore to provide decision support for various questions of logistics in surface finishing. For this purpose, a simulation model as detailed as possible is created. In particular, a cost and revenue calculation framework has to be implemented in order to base decisions not only on technical parameters. In this way, it is possible to make a clear assessment of competing technical goals. The framework should in particular represent decision-relevant costs in regard to the object under consideration and time horizon. Since structural changes in production also have an influence on the product portfolio, the sales and revenue potential should also be taken into account.

Goals of this project are:

  •  Creation of a detailed simulation model of surface refinement
  •  Creation of an accounting model for decision support in operational to strategic questions