Case Study: Tata iQ achieves 2–3% material cost reduction and improved blending visibility with AIMMS

Optimizing Material Blending for A Large Steel Manufacturer

Tata iQ, the analytics division of Tata Industries, partnered with a large steel manufacturer to optimize the material blend for its blast furnace. The client faced a complex mix problem—over 60 variables including coal (about 60% of production cost), flux, capacity, availability and pile health—making manual selection costly and risky and prompting a move from historical rules to a real-time cost-optimization approach.

Tata iQ delivered an AIMMS-based optimization run three times daily that combines pile, direct-dispatch and sinter-trimming models via a web interface, accounting for all operating constraints. The tool improved material compliance, feeder utilization and cost visibility, helped manage COVID-19 supply disruptions, and delivered tangible benefits: roughly 2–3% lower material costs, reduced fuel and flux costs, less material use, and strong user adoption.

Tata iQ