RGO Laminations- Inhouse manufacture or Outsourcing?

A debate has been triggered by the decision of some State Electricity Boards
(SEBs) decision to specify as a tender condition that Transformer
manufacturers (TMs) should have their own Transformer Lamination
manufacturing facility. SEBs are now imposing tender conditions to the effect
that "ONLY those Transformer Manufacturers who have their own core cutting
facility would be eligible to participate in the tender".

This move ostensibly is to prevent the use of Secondary/Defective and old

and used CRGO Silicon Electrical Steel in Transformers which supposedly
leads to increase in No- Load Losses, Magnetising Current drawn and results
in the failure of Transformers.

It is therefore necessary to analyse whether, this condition suggested by

some TMs who have their own core cutting facility and disguised as a "magic
pill" that would lead to better quality of Transformers being manufactured is
valid and the implications thereof.

At the very outset let me state that, as the Managing Director of a

Transformer Lamination facility, my Company is an interested party in this
debate, however, the analysis given herein is from an impartial perspective
to genuinely assess the contention that, "an in-house core cutting facility
automatically leads to better quality of Transformer Laminations and thus
better Transformers".

The importance of Transformer Lamination on Transformers is evident from

the name the component has been given by the Transformer industry - "the
core" - as it is considered to be the heart of every Transformer.

Failures in Transformers due to magnetic core or circuit can be due to various

reasons. The J&P Transformer Book ( 11th Edition , published by Butterman
Heinworth, General Editor C.A.Worth) accepted by Electrical Engineers
worldwide to be a standard reference for Transformer design, Chapter 24
deals with this issue. Amongst the 13 reasons stated therein for the failure of
Transformer due to failures in the magnetic circuit, the following 5 reasons
seem to be of relevance for this discussion:

Failure of insulation between Laminations and of the insulation between the

yoke and the yoke bolts producing large eddy currents, generating
considerable amount of heat.

Burrs developed during manufacture resulting in local short circuits, eddy

currents and consequently abnormal heating occurring.

Presence of metallic fillings or turnings present between the Laminations are

liable to produce local eddy currents and excessive heating of the core.

Abnormal gaps left between the cores and the yoke would result in severe
eddy currents and burning of the cores and yoke in the vicinity of the gaps.

In older Transformers ageing of the core plates may take place and result in
increase of iron loss and rise in temperature of the Transformer which may
result in partial or complete destruction of the coil insulation and sludging of
the coil.

In view of the above, let us analyse if these reasons for failure could be
definitely avoided if the producers of Transformers were to manufacture the
Transformer Laminations in-house instead of buying from a Lamination
manufacturer (outsourcing).

Reason Nos. 1 (weak insulation) and 5 ( old and used Laminations) above are
related to the quality of raw material used and therefore if the Laminations
are made from inferior quality of CRGO material then definitely there is a
possibility that these reasons would be applicable. However a TM with an in-
house facility to produce Lamination is as prone to usage of inferior quality of
raw material ( to save on material costs) as a TM who out sources this
activity. The counter argument here maybe that a TM who buys from outside
may not be aware of the quality of raw material used by the manufacturer of
Laminations, who may purposely use inferior quality of raw material without
informing the TM. However if the TM has an inward material receipt
inspection system, this fact would certainly be brought to notice and the TM
must take appropriate action. If the TM does not have an inward material
inspection system then not much can be said about that TM's quality of
Transformer, in any case.