17% less steel with no customer order in steel shop heat formation
A steel mill began forming its steel shop heats with Enacom’s Planning Digital Twin, filling each heat’s capacity with real orders and compatible steel grades.
Talk to an Enacom expertKey results
- −17%
- of cast steel with no customer order, from 12.61% to 10.47% of cast volume, in a simulation with 12 months of real demand
- 12 of 12
- months with less unallocated steel
- −20%
- on the rolling line with the most scenarios, from 13.20% to 10.54% of cast volume
- Automatic
- heat formation by the algorithm, a task that used to be manual and time-consuming
The challenge
Each heat has a maximum volume, set by the capacity of the steel shop equipment. Orders rarely add up to exactly that volume, and what is left over becomes free volume: cast steel with no customer order, which sits in the yard with no destination and lowers logistics efficiency.
Forming heats means fitting orders under many rules at the same time:
- Compatibility. Heats on the same strand must have the same thickness and the same casting type, and each order must fit the strand width.
- Due date. Orders within each heat follow the order of their delivery dates.
- Quality. Only compatible steel grades can share a heat.
Done by hand, heat formation is slow and takes significant operational effort.
The solution
With Enacom’s Planning Digital Twin, heat formation now follows an explicit order: first reduce unallocated steel, then delays, and only then resort to combining steel grades.
Prioritizes orders
by volume, by delay, and by the possibility of combining with other grades.
Fills each heat as a packing problem
it adds orders up to capacity, tests swaps to find combinations that leave less steel over, and respects thickness, casting type, strand width, and due dates.
Completes the heat with a compatible grade when space is left
the remaining volume goes to a grade with a less demanding specification, according to the mill’s compatibility matrix. It then balances the strands and eliminates heats with no orders.
Results
The algorithm was run on 12 months of real demand, with and without the combination of compatible grades. With the combination, cast steel with no customer order fell from 12.61% to 10.47% of cast volume on average: 17% less volume with no destination in the yard, and less in all 12 months.
The gain shows up on both rolling lines served. On the line with the most scenarios, volume with no customer order fell from 13.20% to 10.54% (−20%); on the other, from 11.14% to 9.91% (−11%). That is why each line should be assessed separately: the flexibility of the order book determines how much is gained.
- 12-month average
- Rolling line with the most scenarios
- Other rolling line
Source: Enacom project · 12 months of real demand, with and without combining compatible grades
What changes for management
- Less stock with no destination. Less cast steel with no customer order sitting in the yard.
- Heats full of orders. The capacity of each heat is filled with real demand.
- Quality preserved. Only grades allowed by the mill’s compatibility matrix share a heat.
- Planners free to analyze instead of building heats by hand, in a solution that coexists with the ERP, MES, and APS already in use.
This case is for you if
- Your steel shop produces cast steel with no order that sits idle in the yard.
- The order book has many grades and widths, with compatibility rules between them.
- Heats are still formed by hand or in a spreadsheet, by a few specialists.
We start from your data: we customize the twin, validate the result in scenarios and a pilot, and only then scale. The results in this case reflect the conditions of that mill.
Want to know how much unallocated steel your steel shop’s heat formation could avoid?
Notes on the results
- Steel with no customer order (free volume): share of cast volume with no associated order.
- Comparison between two runs of the algorithm over 12 months of real demand, with and without combining compatible grades; monthly averages of 12.61% and 10.47%. It is not a before-and-after comparison of the implementation.
- By rolling line: 77% of the scenarios on the line with the largest gain (13.20% → 10.54%) and 23% on the other (11.14% → 9.91%).
Technical results from this project were presented at international steel industry conferences. Client name withheld.

