Optimizing Steel Utilization

A project was done for the construction division of a conglomerate. The construction company was involved in construction activities at multiple sites within close proximity. It faced significant wastage of steel reinforcement bars, averaging about 6% of total steel usage due to inefficient cutting practices and poor inventory management due to decentralized administration of sites. To address the issue, project team consolidated the cutting of the steel bars at one location, implemented standardized cutting plans optimized through software to minimize offcuts, introduced strict inventory controls, and coupling techniques to use the uncut pieces. As a result, steel wastage was reduced from 6% to 3%, saving approximately 250 tons of steel annually. This reduction translated into cost savings of around INR 43 lacs per year, significantly lowering material expenses and enhancing project profitability.