1. The “100 million dollars”
Cultural Transformation
Initiative

2.  Our Vision
 Continuous
Improvement Model
 Successes and
contributing factors

3. The Vision
• Lean Six Sigma is how we work.
• To Achieve world class status in operational
excellence, PIC rolled out the Lean Six Sigma initiative
in 2007.
• Intensive change management efforts were needed
to make process improvement part of our culture

4. PIC’s Continuous Improvement
model
•Company Strategy Management
•Benchmarking Systems
•Customers Operate at
•Employees New Standard
•KPI’s
•Etc…………….. Execute
Train
Charter
Select
classify
Identify
opportunity
Operate at
"AS-IS"
Standard

5. Successes
• 295 successful projects delivering over 100 million dollars
total financial savings since 2007.
• 75 internally certified Green and Black Belts.
• 7 Kaizen Events and 2 major 5S projects conducted
successfully in PIC. Cumulative Financial
Savings

6. Projects Examples

7. Reducing Formaldehyde
Consumption in Urea Plants
Opportunity: Formaldehyde content is Urea Product was high at 0.49 wt% and it could be
reduced to 0.42 wt% with significant savings in Formaldehyde cost
0.6
Before After
Mean
Formaldehyde in Urea Product (wt%)
0.49 wt%
0.5
Total Annual Mean
Savings Sigma Level 0.42 wt%
Realized 0.4 3.15
US$ 1.138
Million
0
20
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60
80
100
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160
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340
360
380
Sample 400

8. Ammonia Plant Synthesis Gas Compressor
Performance Improvement
Opportunity: From Feb. 2007 to February 2009 Ammonia production loss was 25,570
MTON due to equipment breakdown of Synthesis Gas compressor.
Reduced number of
After February From Feb
Synthesis Gas Production Loss
2007 2009
Compressor down days to to in 2 Year = 25325 MT Ammonia
Before Jan June Baseline 1055 MT/Month
2009 2010
Number of events (down days) 31 4
Number of expected up days 608 313
Number of Actual up days 577 309
(Number of down days / Number of Total Project Savings
expected up days ) x 100 5.0986 1.277 $3,571,658
Six Sigma 3.14 3.67
Project Leader: Waleed Aljehaim

9. Improve the Reliability of Ammonia IV
HPC Pump Motor Bearing Temperature
Opportunity
Implementation of
79% of the time the Motor Bearing Temperature
the new Procedure
(PM) Is Above the Target 92°C
Average 105 BEFORE
Before AFTER
Baseline Defect 100
97°C 79% 97 C
I/B Temp. °C
95
90
88 C
Target 85
92°C 80
Improved After
Average Defect
88°C 3.5 %
GBPL: Ahmad Al-Jasem

10. GBPL • Reyadh Al Baqshi
Opportunity Defect Objective
• Abdullatef Al Duhaim
Team Members • Mohammed Javed
• Feroz Khan •The first contact •Any month •Reduce Defect by
resolution rate by showing the 100%
Master Black Belt • Aref Alawadi
the Help Desk staff average first
averages at 33.7 % contact resolution
Process Owner &
Local Champion
• Ibrahim Al Musaiter for the past year. rate lower than
50%
Baseline Performance Improved & Sustained Performance

11. Improve Paraxylene Sales Revenue
Baseline Performance
Objective : Defect:
The goal of this project is to Any monthly avg. PIC
increase sales price of price that is less than the
Paraxylene to be above benchmark market price
benchmark market price for PX will be considered
every month. a defect.

12. Transformation
• From fire fighting to fire prevention
• Structured and systematic approach to problem
solving
• Continuous Measurement of outputs and critical
inputs
• Insisting on Improvements that can be:
-- Validated -- Sustained -- Leveraged

13. Success Factors
• Management commitment
• Targets & Rewards
• Project selection (Pipeline)
• Leveraging Success

14. Goals & Targets
• First Generation KPI’s:
– Number of projects
– Financial Savings
– Certified Green and black Belts
• Second Generation KPI’s:
– Strategic alignment
– Engagement
– Kaizen Events
– Financial Savings

15. Projects Pipeline
Work Process
Brainstorming Classification
Scoping
Ranking
Fire Fighting
Project Charters

16. Leveraging our success

24. Certification

29. Last Word

30. The Evolution of Quality
Lean Six Sigma
TQM
Quality
Quality Assurance
Control
1900 1930 1960 1990 2020
Walter Shewhart W. Edwards Deming Bob Smith

31. What’s Next??
The Quality of all Processes and Systems
is only as good as the people
designing and operating These
Systems and Processes
The Quality of Human Resources

32. Thanks
ITS TIME TO MOVE
FORWARD !