< Back to Case Studies

Mini-mill Steel Producer & Recycler

Case Study - Mini-mill Steel

Improving performance in a continuous flow operation.

Project Highlights:

  1. Analysis
  2. Operational Performance
  3. Business Case

Clients Perspective:

"We need a focused initiative to not only improve and sustain operations. We need to be able to continue to improve on our own."

Situation:

At the time of this project, steel pricing was in a trough. This high-production mill was working in a traditional model of functional departments: planning and scheduling, operations, maintenance, warehouse and logistics, which could not deliver to the required levels of competitiveness. Company leadership took the bold step of engaging in a highly focused initiative to drive change and get results.

Approach:

  • Analysis and Implementation Design was conducted to identify opportunities and to detail the business case for change. Three work streams emerged:

    - Asset velocity by improving overall equipment effectiveness and productivity
    - Inventory rationalization (WIP and warehouse)
    - Project governance and internal capability development
  • The project focused on production planning, the efficient movement of materials through the system, maintenance (OEE - Overall Equipment Effectiveness and TPM – Total Productive Maintenance) and scrap reduction
  • Each major area was integrated and governed through the Executive Steering Committee
  • Select internal Lean Leaders were included in major work streams. Classroom training, one-on-one coaching and experiential learning all contributed to creation of these internal change agents
  • Results were reviewed, consolidated and approved for incorporation into the annual budget

Results:

This project was completed within 5 months and went cost neutral prior to our team going off-site. Total financial benefits exceeded $7M in annual saving and all 300+ employees of the mill were engaged in multiple forms of operational improvement activities. The mill utilized the engagement structures of the ESC and LDMS to ensure all levels of the organization were attached to the improvement initiative.

Want to find out more about Kaufman Global's approach and the critical success factors in a project like as this? Contact us.