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Operational Excellence.pptx
- 1. DRAFT document Private and Confidential Operational Excellence
- 2. Why are we taking up this initiative ? To become the best steel plant of south India There is huge scope for improvement We want to be Market Leader in stiff competitive market condition, to sustain in future. To become a benchmark in future Optimum utilization of available resources To be come most competitive and become lowest cost producer To increase our competitiveness To accelerate the speed of change Improve productivity, quality and cost To build the organizational culture to attract and retain good talent
- 3. What are the changes we want through this initiative? Goals and methods to achieve these goals Improve availability, reduction of wastage and reduction in consumption Proper planning, adequate resource, discipline, put in place systems and processes to get the best out of resources, standardized processes, learning organization Physical attributes of the workplace Good housekeeping, safe place to work, Visual display, Inside the plant like operation theater, better infrastructure, shop floor layouts People competency development Skill development of people, to make oneself redundant, avoid day to day fire fighting Work Culture Higher level of Team work, systematic approach, Positive attitude, Alignment to organizational Vision, accountability, proactive approach, timely feedback
- 4. How we will know if we are successful ?
- 5. How could we fail ? Absence of mutual trust and respect Resistance to change Poor teamwork Inadequate leadership involvement Inadequate resources Incorrect data Inadequate skill Poor communication
- 6. DRAFT document Private and Confidential What should this initiative be called?
- 7. DRAFT document Private and Confidential Organizations respond to business challenges Deterioration of Performance Incremental improvement Unsustainable improvement (Only projects, no change management) Current Performance Time Performance The benefits from all these responses are far from expectations Trying to maintain status quo Improvement Projects Capex Projects, Cost reduction
- 8. What is required is a structured approach which will give breakthrough improvements which are quickly achieved and sustained Current Performance Deterioration of Performance Incremental improvement Time Performance acg Approach Rapid yet sustainable improvement Improvement Projects Capex Projects, Cost reduction Trying to maintain status quo Unsustainable improvement (Only tools, no change management) Target
- 9. Our model transforms all aspects of an organisation in phases to achieve excellence in operations Basic Stability Refinement Capability Building Excellence Planned Maintenance Optimized shutdowns Low Repair times Reduced Defects Wastes / abnormalities eliminated & 5S Lower Energy Consumption EHS Routine Management Responsiveness to customer Quality and Variability Reduction Process Optimisation Information Flow and planning Improved Business Processes Market orientation Visual Workplace Simplified work Maintenance Prevention Lean Supply Chain Faster development of new products Supplier Quality and performance management Agile and Flexible Production Internal Change Agents Customer Relationship Management Organisations Operation System Systems Integration Extension of systems to suppliers Working for perfection Six Sigma processes Recognized for excellence in industry Globally competitive Knowledge Management Leadership Values, Vision, Benchmarking, Strategic Planning, Goal Setting & Communication Enabling Structure, Manning policies & Process Based Teams Supporting HR Policies, Competency Building & Training Change Management, Audits, Self Assessment, Reward & Recognition Current focus are For Radha TMT
- 10. 10 Our approach for Radha TMT for the current intervention is based on the focus pillars addressing the immediate requirements Change Management & Capability Enhancement Throughput Improvement Leadership Delivery, Cost, Quality Productivity, Flexibility, Responsiveness Cost of Production Reduction Robust Maintenance Management System Daily Management Process & work standardisation Improvement Structure Policy Deployment KPIs, Metrics, Review Mechanism, R&R Quantum Jumps Sustenance & Continuous Improvement Enablers
- 11. DRAFT document Private and Confidential Quantum Jumps in throughput and Cost of Production improvement will follow a systematic approach 39.58 12.16 6.75 6.27 5.82 4.70 3.96 4.14 16.6% 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 Spend Categories % of Total Spend Rs 10 Lakhs Rs 32 Lakhs Rs 6 Lakhs Rs 56 Lakhs Rs 37 Lakhs Rs 214 Lakhs Rs 99 Lakhs Rs 198 Lakhs Rs 88 Lakhs Quantum of Benefits High Low Ease of Implementation Low High Identification of Gaps Confirm Opportunities Idea Generation & Prioritisation Implement Value Stream Mapping Spend Waterfall & Pareto Cost Drivers Analysis Consumption Analysis Root Cause analysis First Principle Costing Validation of ideas Process Redesign Creating awareness through workshops Defining ownership structure Sharing of methodology and tools Primacy Matrix Action Planning Team formation as required Usage of tools and techniques, Review and monitoring mechanism Confirmed Opportunity Filter 1 Design Validation Filter 2 Operational Feasibility Filter 3 Cost Benefit Analysis All Ideas
- 12. DRAFT document Private and Confidential Daily Management Process will enable a standard and proactive way of working which involves everyone in the workplace Process and Work Standardization Daily Inspection 5S Training to front liners through Single Point Lessons Application of good practices Creating work standards and deployment Assessments and progress checks Good Practices Mistake Proofing and Visual Controls Efficient and effective Business processes Performance Monitoring and problem solving Robust Maintenance Systems implementation Identification of FI projects Feedback to Design & engineering Sales New product development Infrastructure Data Recording Data Visibility Communications Knowledge Management Analysis & Problem Solving 5-Why Fishbone 7 QC tools
- 13. DRAFT document Private and Confidential Building Robust Maintenance Management System focuses on three major aspects 5 Rs of maintenance execution Right methods Right time Right component Right skills Right database FMEA 5 Why Analysis Cause and Effect Robust Maintenance Management System Operator Maintainer partnership CMMS Cross Functional Teams - SBU Level and Shop floor Level SBU level teams - Criticality assessment, refining PM Schedules as per criticality Shop floor level teams - Creating normal working conditions Coverage of all equipment under PM Schedules Equipment History updated in CMMS Critical Condition control points Predictive Maintenance Notifications Work Standardization Maintenance Procedures Maintenance Planning and Scheduling Effective Execution & Problem Solving
- 14. The 9 Step Process is a systematic way of carrying out improvements in the maintenance of the equipment and create a model for equipment condition Condition Cycle Develop future Asset care & Inspection lists Plan the Refurbishment, Spares and Manpower Carry out a Condition Appraisal (& Initial Clean Up) Understand Equipment & Process; Carry out a Criticality Assessment of the equipment 7 6 5 4 Measurement Cycle Define OEE/ other KPIs Measurement and Potential Review Progress Define & Assess Losses and set Improvement Priorities 2 3 Collect Plant History and Performance information 1 Problem Prevention Cycle Develop Best Practice Routines and Standardize 8 Problem Prevention Using 5 Why and other Analytical tools Low Cost No Cost Technical Support 9 Solutions Feedback