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Al-Jazera Steel

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Client Name

Al-Jazera

Industry

Retail

Location

Saudi Arabia

Company

The largest Pipe Manufacturing Company based in Jeddah, KSA

Al Jazera Factories for Steel Products Co. Ltd. (JASCO) was established in 1988 in Jeddah, KSA and started its full fledged operations with sophisticated plant and machinery for manufacturing steel products in 1991.

In just a decade, during the 90s, JASCO experienced exponential growth, securing substantial market dominance in pipes and tubes manufacturing. Its unwavering commitment to customer-centric practices expanded its reach across GCC countries and various Asian nations, fueling exports.

Distinguished by its diversity of products, JASCO stands out in the industry, catering to the needs of diverse sectors such as oil, gas, petrochemicals, water transport, agriculture, construction, and more. By producing steel pipes that excel in liquid transportation, JASCO has woven itself into the fabric of vital sectors, embodying excellence, reliability, and customer satisfaction.

Problem

Gaps in the manufacturing of pipes and waste management efficiency

There were business challenges of various roles of raw materials coming from different regions of the world which has different sizes and quality, which has direct impact on the manufacturing of pipes. The steel sheet roles which is being imported from Russia, Brazil, and other countries with different specifications.

Firstly, the most important was efficiency of the manufacturing plant, so that steel roles can be optimized, throughput is always sustained and can be well-managed

Secondly, it’s the waste management where bill of material of the steel roles to the size of the pipe has direct relation. This is the biggest challenge, wherein if you don’t select the right role to the finished product ie the pipe size (0.5 inch or 1 inch or so on), if this is not matched well, then the wastage percentage will increase and beyond the threshold point set, which will affect the product cost.

Solution

Bill of Materials (BOM) in SAP PP

Al Jazera Steel board took decision to move onto an SAP ERP where-in key drivers of business can be achieved. SEAL Infotech did 3 months of analysis of their entire business processes, in terms of various permutations and combinations of the roles, sizes of the roles, some key users has real good on-hand experiences of the sheet roles, their specifications, etc.

When each sheet role is made into bill of material, pertaining to finished product of the size of pipe, taking into account complete data analysis of more than 5 years, which we could really designed the bill of material, mapped to various permutations and combinations.

Result

Reduced the wastage and produced maximum throughput

We achieved the business drivers of reducing the wastage and producing the maximum throughput from various specifications of sheet roles imported from various countries.

It took us lot of time in getting the right design, business blueprint was finalized, and later we completed the execution and implementation of the project within 7 months of total time including design, realization and GO LIVE successfully.

Till date Al Jazera Steel is using the entire process designed and delivered by SEAL Infotech.

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