2. MAG WIRE PLANT – CASE STUDY
WELDING – ITALY
WELDING – ITALY
3. BUSINESS STRATEGY
• Increase sales in Southern Europe;
The plant is located in Italy and freight cost is key cost element
Product is a commodity ( alloyed steel made as raw material)
and compete in a price driven market;
• Improve scale economy is a way to reduce cost per unit through
capacity expansion. Current demand is higher than full capacity;
• Increase productivity is a key drive to increase capacity;
• The plant process has capability to process recycled material with
low scrap level and good quality level;
• The plant has been investing in Lean Manufacturing philophy aiming
to sustain continuous improvement mind set already in place.
5. ” Become the best in class Mag wire
manufacturer by focusing in production
process continuous improvement, HSE
high performance and striving for
competitive cost and excellent quality
system.
PLANT VISION
6. Policy Deployment Matrix
POLICY DEPLOYMENT MATRIX FOR: Europe 2011
Revision log: Budget 2011 review T O A
Issue date: Nov'2010 Q1 Q2 Q3 Q4
Prioritise and develop Environmental Health and Safety initiatives
with the aim to achieve zero lost time injury and zero environmental
incident
O T T T T T T T T
Continuous improvement in the existing quality system
A O T T T
Terni MAG Expansion - project design
A T T T T
Develop the use of low cost raw material
O T T T T
Cost Reduction ( FO-VO-WIP)
O T T T T
T
Consolidate project Star
A T T T
T O T
Implement lean tools and TPM A T T T O T
Coaching at each level within the organization - Increase Flexibility
A T O T T T T T T
PrioritiseanddevelopEnvironmentalHealthandSafetyinitiativeswiththeaimto
achievezerolosttimeinjuryandzeroenvironmentalincident
QMSSystemdevelopment
EuropeanConsumablesFootprintReview
DriveOperationalExcellenceroadmapon
Costreduction
MeetPPV&cashflowwithinEuropeanplants
Developmentofpeople
KeepLean&modelfactoryup&ImplementTPM
increaseproductionfrom20Kton/yto23Kton/y
increaseproductionfrom23Kton/yto26Kton/y
TPMimplementationonalldepartment
ImproveFlexibility
MiniBootcamplean
TrainingOperators(3c-5S-problemsolving)
5%yearonyearconversioncostreductiontarget
Increase%oftheutilizationLCWRawMaterial
NewwirebasketKS300implemented
WIPreduction
QualityLab
ApplyleanprinciplesandtoolsinQuality
SharethebestpracticeswithQualityglobalfunction
UpdateTerni's5yearplan
Reducewastedisposalandimprovewastemanagement
Trainingpeopletoachive0accidents
Increasenumberofnearmiss
finishtheStandardfactorymodelimplementation
Coachingateachlevelwithintheorganization-Trainthetrainers
PagliariMirko
ElisaAltobelli
MassimoGherardi
FedericoRosati
GuidoBaldassarre
SaraGentili
SerenaPalenga
MarcoPerni
Leadershift
QM
S
Lost time innjury & environmental incidents zero
A
reduction of complaints ( max 300 ppm)
A
98% attainment to plan
A
Saving 10% in waste disposal
A
5% MCC cost reduction year 2011
A
Direct labour productivity improved from 180 to 200 Kgman/h
A
Saving 25-50 Eur Ton using LCW Raw material
A
Reduce Scap 0,3%
A
Lean Audits improved until 6 score
A
OWNERSHIP
PROJECTS & ACTIVITIES
For 2011
VISION: ”To become the best in class operations within 5 years by
PDM Owner: MD Terni -Pagliari Mirko
DELIVERABLES
in 2011
AIMS through
to 2015
RESULTS for 2011
Key:
O = Owner
T = Team
A = accountable
Aims
Projects
Results
Deliverables
7. • Mass production;
• Standardized process in a repetitive serial production
• Intensive in capital;
• Three shifts 6 days a week operations model.
Italian Factory owned by a English International group to
produce solid MAG Wire to supply the whole European
industry base with MAG solid wire.
Production Process Caracteristics
8. In order to improve plant produtivity aiming to achieve capacity increase
at same time give the plant control back to the production manager, it
was developed a Manufacturing execution system project comprised by
additional drivers interface in order to establish an automatic and reliable
Shop floor data collection system through and internet connection
Network connecting the plant equipments to a computer system.
The plant had been implementing Lean Manufacturing tools such as
Communication cells where the employee`s could discuss daily basis
the performance and come up with ideas to drive performance using
lean tools for problem solving.
BUSINESS CASE STUDY PROPOSITION
MES – Manufacturing Execution System
9. MES – AUTOMATIC DATA COLLECTION
MES – Manufacturing Execution System
The hardwares showed in the picture below were installed
in the eletromechanic machines and connected into a
internal network. A number of KPIs and performance
reports became available real time allowing the leadership
team take quick data driven decisions.
10. First step:
• Display factory supervisory: colored visual
management shows machines in downtime mode.
• Real time trend graphics: shows KPIs about machine
speed, real production, OEE, scrap and productivity
curve per machine e total plant by process.
• Various reports in real time: easy interface
configuration and customization user friendly mode;
• Statistics: promptly analysis to fast problems response
SCADA - Supervisory Control and Data Acquisition
SCADA – PILOT IMPLEMENTATION
11. Second step: Statistical Process Control.
Process variables such as wire diameter,
treatment bath temperature, bearings temperature.
Trend graphs were implemented to visually
control variances and displays alerts to the
leadership;
Third step:
Maintenance control activities
The operator started interacting with the machine
logging the dowtime via hardware.
Tools consumption control were introduced;
Downtime connected into ERP to feedback
planning progress and production costs.
SCADA – PILOT IMPLEMENTATION
12. 03/02/2016 12
• SCADA brought in …
– Process control back to the Management
– Reduce down time to increase capacity
– Remove manual data processing
– Respond to problems before they escalate
– Reduce scrap and optimise machine speed
– Motivate operators
– Understand your process and capability
– Improve maintenance scheduling
– Distribute information, encourage ownership
SCADA IMPLEMENTATION BENEFITS
To Connect shop floor data to ERP IT system meanwhile
feed up the plant KPI’s dashboard therefore creating the
manufacturing execution system.
13. RESULTS
After MES pilot implementation
Investment - € 87,000
OEE improved from 54% to 85%
Capacity increased in 160 tons per month without
any Investment
Turn over increase - €320,000 per year
Process Scrap reduction from 4% to1,5%
Implementation time: 6 meses
14. For more information please access
http://www.blindagemdeprocessos.com.br/
Thanks to
http://www.ldcriacao.com/ slides graphics review
