Improving performance and capacity utilization of a Billet Steel, Structural Rolling, Sponge Iron, Power and Ferro Alloys manufacturer through ACE (Accuracy Control Enterprise) Approach, RCM (Reliability Centered Maintenance) and Effective Production Planning
Our Client was a leading producer of Steel (Billet), Structure (Beam, Channel Angle etc.), DRI (Pellet & Iron Sponge) and various Ferro alloys (SiMn, & FeMn). It is meeting the power requirement from its Captive Power Plant. All plants were operating at 70–75% of total integrated steel plant installed capacity of 0.3MMTPA.M
As customer are being more aware and stringent for product quality tolerances, So our client was pushed to achieve better product quality tolerances by improving the production and quality processes
While there were attempts to identify capacity utilization & yield improvement, Sp. Consumption (Carbon & Power) reduction opportunities internally they were only incremental and did not meet the promoter's expectation. Therefore the client approached us to apply its combination of business process, operations excellence and analytic expertise to uncover greater performance.
ZBT's operation excellence experts first framed the key issues faced by the client by having discussion and jotting down their pain points pertaining to operation, maintenance and quality. We then identified and requested the most relevant data sets available internally for further analysis.
Using an array of analytic tools by ZBT team, analyzed last 2 years data and prepared the summary report of key business parameters and identified key issues / gaps by analyzing trends for all kind of raw material mix plant wise.
After identified key issue and gap, we organized workshop with respective heads, shown the data trends and discussed the gap and their reasons briefly to validate the issues such as downtime due to changeovers, function (mechanical, electrical, operation) breakdowns, yield loss, grade / chemistry rejection, lack of proper planning in the plants etc.
Based on the last 2 year data, finalized the business parameters and their baseline figures then discuss the same with respective head and management and finally got approval with sign off.
Set the all business parameters, their Targets and identified primary process parameters which can be controlled from shopfloor by ensuring less variation in 4M (Man, Material, Methods & Machine) parameters in terms of MLTQ (Mass i.e. quantity, Length i.e. displacement or dimension, Time i.e. time taken and Quality).
Identified the processes where low cost automation could be done to save the time, cost & rework / error of the process and ROI was less than 12 months. ZBT's operation excellence team designed the concept and connected with it's automation partners/suppliers and OEMs for visit the client's plant to understand the changes to be made and asked for the quotations and finalized the cost on less than 12 months ROI
Our solution identified and realized immediate annualized cost savings of INR 95-100 Crore by optimizing the process outcome & control process variation by setting standards and measuring accuracy and Business process with high variability (means outcomes can range from good, to mediocre, to disastrous)
Further Improved Productivity, Higher Accuracy and Precision by upgrading Ppk value and Improved Parameters by process accuracy.