Metal products & Machinery

Raw material usage productivity

 

BUSINESS CONTEXT

 

  • RM cost is 65% of cost price.
  • Highly competitive business environment.
  • Cost price leadership is important in most of cabling markets.

 

CUSTOMER NEED

 

  • No progress in RM productivity programs since improvement of process measurements.
  • Still significant residual usage reduction opportunity left vs. theoretical min usage.

RESULTS

  • In 2011 a total of 1 m Euro raw material productivity was achieved in 3 benchmark projects in 3 plants in 3 different countries.

CHANGES

  • Operational discipline to work according to detailed standards.
  • Daily leadership, connected to start/stop usage defects.
  • Defective cables can only be removed physically after root cause analysis and report out.

R&G APPROACH

  • Detailed operating standards defined and implemented.
  • Daily IDEX to drive execution according to standard.
  • Standardized work for start/stop of key operations.
  • Training of management and improvement team.

CLIENT TESTIMONIAL

“Lean Six Sigma has become a really exciting story in our plant. Even though Continous Improvement is not new to us, so is the Six Sigma methodology brings our engineers and workers a systematic approach at a new level. Although it adds significant workload to the project team members, I recognize a very good team spirit and willingness to change. Some of the results obtained were surprises to all the team, motivating them to dig more deeply into the details, e.g., of the start-up and stop processes.”

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